[Senate Report 112-163]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 382
112th Congress                                                   Report
                                 SENATE
 2d Session                                                     112-163
======================================================================
 
   AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND 
               RELATED AGENCIES APPROPRIATIONS BILL, 2013
                                _______
                                

                 April 26, 2012.--Ordered to be printed

                                _______
                                

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

                                 REPORT

                         [To accompany S. 2375]

    The Committee on Appropriations reports the bill (S. 2375) 
making appropriations for Agriculture, Rural Development, Food 
and Drug Administration, and Related Agencies programs for the 
fiscal year ending September 30, 2013, and for other purposes, 
reports favorably thereon and recommends that the bill do pass.



New obligational authority

Total of bill as reported to the Senate.................$142,182,337,000
Amount of 2012 appropriations........................... 136,840,373,000
Amount of 2013 budget estimate.......................... 144,233,282,000
Bill as recommended to Senate compared to--
    2012 appropriations.................................  +5,341,964,000
    2013 budget estimate................................  -2,050,945,000

                                CONTENTS

                              ----------                              
                                                                   Page
Breakdown by Title...............................................     4
Summary of the Bill:
    Overview and Summary of the Bill.............................     5
    Reports to Congress..........................................     6
Title I:
    Agricultural Programs:
        Production, Processing, and Marketing:
            Office of the Secretary..............................     7
            Office of Tribal Relations...........................     7
            Executive Operations.................................     8
            Office of the Chief Information Officer..............    10
            Office of the Chief Financial Officer................    11
            Office of the Assistant Secretary for Civil Rights...    11
            Office of Civil Rights...............................    12
            Office of the Assistant Secretary for Administration.    12
            Agriculture Buildings and Facilities and Rental 
              Payments...........................................    13
            Hazardous Materials Management.......................    13
            Departmental Administration..........................    14
            Office of the Assistant Secretary for Congressional 
              Relations..........................................    15
            Office of Communications.............................    15
            Office of Inspector General..........................    15
            Office of the General Counsel........................    16
            Office of the Under Secretary for Research, 
              Education, and Economics...........................    16
            Economic Research Service............................    17
            National Agricultural Statistics Service.............    17
            Agricultural Research Service........................    18
            National Institute of Food and Agriculture...........    21
            Office of the Under Secretary for Marketing and 
              Regulatory Programs................................    27
            Animal and Plant Health Inspection Service...........    27
            Agricultural Marketing Service.......................    31
            Grain Inspection, Packers and Stockyards 
              Administration.....................................    35
            Office of the Under Secretary for Food Safety........    35
            Food Safety and Inspection Service...................    36
            Office of the Under Secretary for Farm and Foreign 
              Agricultural Services..............................    37
            Farm Service Agency..................................    37
            Risk Management Agency...............................    41
        Corporations:
            Federal Crop Insurance Corporation Fund..............    42
            Commodity Credit Corporation Fund....................    42
Title II:
    Conservation Programs:
        Office of the Under Secretary for Natural Resources and 
          Environment............................................    45
        Natural Resources Conservation Service...................    45
Title III:
    Rural Development Programs:
        Office of the Under Secretary for Rural Development......    47
        Rural Housing Service....................................    48
        Rural Business--Cooperative Service......................    54
        Rural Energy for America Program.........................    57
        Rural Utilities Service..................................    58
Title IV:
    Domestic Food Programs:
        Office of the Under Secretary for Food, Nutrition, and 
          Consumer Services......................................    62
        Food and Nutrition Service...............................    63
Title V: Foreign Assistance and Related Programs: Foreign 
  Agricultural Service...........................................    70
Title VI:
    Related Agency and Food and Drug Administration:
        Food and Drug Administration.............................    74
        Independent Agency: Farm Credit Administration...........    81
Title VII: General Provisions....................................    83
Program, Project, and Activity...................................    85
Compliance With Paragraph 7, Rule XVI of the Standing Rules of 
  the 
  Senate.........................................................    85
Compliance With Paragraph 7(c), Rule XXVI of the Standing Rules 
  of the Senate..................................................    86
Compliance With Paragraph 12, Rule XXVI of the Standing Rules of 
  the 
  Senate.........................................................    87
Budgetary Impact of Bill.........................................    88
Comparative Statement of Budget Authority........................    89

                           BREAKDOWN BY TITLE

    The amounts of obligational authority for each of the seven 
titles are shown in the following table. A detailed tabulation, 
showing comparisons, appears at the end of this report. 
Recommendations for individual appropriation items, projects 
and activities are carried in this report under the appropriate 
item headings.


                        [In thousands of dollars]
------------------------------------------------------------------------
                                                         2013 Committee
                                           2012          recommendation
------------------------------------------------------------------------
Title I: Agricultural programs....         24,970,211         28,416,877
Title II: Conservation programs...            844,007            829,391
Title III: Rural economic and               2,250,233          2,275,698
 community development programs...
Title IV: Domestic food programs..        105,553,001        107,090,563
Title V: Foreign assistance and             1,835,667          1,836,401
 related programs.................
Title VI: Related agencies and              2,505,809          2,529,811
 Food and Drug Administration.....
Title VII: General provisions.....         -1,118,555           -796,404
                                   -------------------------------------
      Total, new budget                   136,840,373        142,182,337
       (obligational) authority...
------------------------------------------------------------------------


                    OVERVIEW AND SUMMARY OF THE BILL

    The Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies appropriations bill 
provides funding for a wide array of Federal programs, mostly 
in the U.S. Department of Agriculture [USDA]. These programs 
include agricultural research, education, and extension 
activities; natural resources conservation programs; farm 
income and support programs; marketing and inspection 
activities; domestic food assistance programs; rural housing, 
economic and community development, and telecommunication and 
electrification assistance; and various export and 
international activities of the USDA.
    The bill also provides funding for the Food and Drug 
Administration [FDA] and allows the use of collected fees for 
administrative expenses of the Farm Credit Administration 
[FCA].
    The discretionary programs and activities of USDA and FDA 
that are supported by this bill include high priority 
responsibilities entrusted to the Federal Government and its 
partners to protect human health and safety, contribute to 
economic recovery, and achieve policy objectives strongly 
supported by the American people. The ability to provide for 
these measures is made difficult by growing pressure on 
available levels of discretionary spending as a consequence of 
the overall public debate on Federal spending, revenues, and 
size of the Federal debt.
    Too often, the USDA programs funded by this bill are 
confused with farm subsidies and other mandatory spending more 
properly associated with multi-year farm bills. In contrast, 
this bill provides annual funding for programs familiar to all 
Americans such as protecting food safety through the Food 
Safety and Inspection Service and the Food and Drug 
Administration, which also plays a vital role in maintaining 
the safety of the Nation's blood supply and availability of 
safe and effective medical products and other components of our 
health system. This bill also provides funding to fight against 
the introduction and spread of noxious or infectious and often 
invasive pests and disease that threaten our plant and animal 
health environments, as well as funding for many other missions 
of dire importance to the American people.
    In the context of overall pressures on spending and the 
competing priorities that the Committee faces, this bill as 
reported provides the proper amount of emphasis on 
agricultural, rural development, and other programs and 
activities funded by the bill. It is consistent with the 
subcommittee's allocation for fiscal year 2013.
    All accounts in the bill have been closely examined to 
ensure that an appropriate level of funding is provided to 
carry out the programs of USDA, FDA, and FCA. Details on each 
of the accounts, the funding level, and the Committee's 
justifications for the funding levels are included in the 
report.

                          REPORTS TO CONGRESS

    The Committee has, throughout this report, requested 
agencies to provide studies and reports on various issues. The 
Committee utilizes these reports to evaluate program 
performance and make decisions on future appropriations. The 
Committee directs that all studies and reports be provided to 
the Committee as electronic documents in an agreed upon format 
within 120 days after the date of enactment, unless an 
alternative submission schedule is specifically stated in the 
report request.

                                TITLE I

                         AGRICULTURAL PROGRAMS

                 Production, Processing, and Marketing

                        Office of the Secretary

Appropriations, 2012....................................      $4,550,000
Budget estimate, 2013...................................       5,051,000
Committee recommendation................................       5,051,000

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

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $5,051,000 for 
the Office of the Secretary.
    Animal Fighting.--The Committee is very concerned about 
reports of illegal animal fighting activities and directs the 
Secretary to work with relevant agencies on the most effective 
and proper means for investigating and enforcing laws and 
regulations regarding these activities.
    Operating Expenses.--The Department is directed to place 
greater scrutiny on overhead costs and is directed to develop a 
plan to reduce such costs, including non-essential travel, 
office supply, rent, and utility costs, by 10 percent in fiscal 
year 2013. The Committee directs the Department to submit this 
plan within 30 days of the enactment of this act.

                       OFFICE OF TRIBAL RELATIONS

Appropriations, 2012....................................        $448,000
Budget estimate, 2013...................................         498,000
Committee recommendation................................         498,000

    The Office of Tribal Relations will interact with USDA 
program agencies to understand pending actions that may affect 
Indian tribes. This interaction and programmatic knowledge will 
improve USDA's ability to conduct consultation activities, 
thereby better addressing the needs of USDA tribal constituents 
and improving relationships.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $498,000 for 
the Office of Tribal Relations.

                          Executive Operations

    Executive operations were established as a result of the 
reorganization of the Department to provide a support team for 
USDA policy officials and selected departmentwide services. 
Activities under the executive operations include the Office of 
the Chief Economist, the National Appeals Division, the Office 
of Budget and Program Analysis, the Office of Homeland Security 
and Emergency Coordination and the Office of Advocacy and 
Outreach.

                     OFFICE OF THE CHIEF ECONOMIST

Appropriations, 2012....................................     $11,177,000
Budget estimate, 2013...................................      12,008,000
Committee recommendation................................      16,008,000

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

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $16,008,000 
for the Office of the Chief Economist. While the amount 
recommended for the Office of the Chief Economist [OCE] appears 
to be a significant increase above fiscal year 2012 and the 
request, the Committee notes that $4,000,000 for policy 
research is being transferred to OCE from the National 
Institute of Food and Agriculture [NIFA]. The research and 
analysis conducted at the policy research centers is more 
closely aligned with the mission of OCE than NIFA.
    Policy Research.--The Committee recommendation includes 
$4,000,000 for policy research under 7 U.S.C. 3155 for entities 
with existing institutional capacity to conduct complex 
economic and policy analysis and a lengthy and well-documented 
record of conducting policy analysis for the benefit of the 
Department of Agriculture, the Congressional Budget Office, or 
the Congress. To maximize resources, the Committee expects the 
Department to focus efforts on entities that have developed 
models, databases, and staff necessary to conduct in-depth 
analysis of impacts of agriculture or rural development policy 
proposals on rural communities, farmers, agribusiness, 
taxpayers, and consumers.

                       NATIONAL APPEALS DIVISION

Appropriations, 2012....................................     $12,841,000
Budget estimate, 2013...................................      14,225,000
Committee recommendation................................      14,225,000

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

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $14,225,000 
for the National Appeals Division.

                 OFFICE OF BUDGET AND PROGRAM ANALYSIS

Appropriations, 2012....................................      $8,946,000
Budget estimate, 2013...................................       9,049,000
Committee recommendation................................       9,049,000

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

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $9,049,000 for 
the Office of Budget and Program Analysis.

         OFFICE OF HOMELAND SECURITY AND EMERGENCY COORDINATION

Appropriations, 2012....................................      $1,321,000
Budget estimate, 2013...................................       1,496,000
Committee recommendation................................       1,496,000

    The Office of Homeland Security and Emergency Coordination 
formulates emergency preparedness policies and objectives for 
USDA. The Office directs and coordinates all of the 
Department's program activities that support USDA emergency 
programs and liaison functions with the Congress, the 
Department of Homeland Security, and other Federal departments 
and agencies involving homeland security, natural disasters, 
other emergencies, and agriculture-related international civil 
emergency planning and related activities.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $1,496,000 for 
the Office of Homeland Security and Emergency Coordination.

                    OFFICE OF ADVOCACY AND OUTREACH

Appropriations, 2012....................................      $1,209,000
Budget estimate, 2013...................................       1,422,000
Committee recommendation................................       1,422,000

    The purpose of the Office of Advocacy and Outreach is to 
increase the accessibility of USDA programs to underserved 
constituents. The Office coordinates the activities of various 
USDA programs and agencies that have as a mission purpose the 
provision of assistance to underserved constituents and 
generally encourages and advocates for full participation by 
all Americans in USDA programs.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $1,422,000 for 
the Office of Advocacy and Outreach.

                Office of the Chief Information Officer

Appropriations, 2012....................................     $44,031,000
Budget estimate, 2013...................................      44,031,000
Committee recommendation................................      44,031,000

    The Office of the Chief Information Officer was established 
in August 1996 (40 U.S.C. 1401 et seq.), pursuant to the 
Clinger-Cohen Act of 1996, which required the establishment of 
a Chief Information Officer for major Federal agencies. This 
Office provides policy guidance, leadership, coordination, and 
direction to the Department's information management and 
information technology investment activities in support of USDA 
program delivery, and is the lead office in USDA e-gov efforts. 
The Office provides long-range planning guidance, implements 
measures to ensure that technology investments are economical 
and effective, coordinates interagency information resources 
management projects, and implements standards to promote 
information exchange and technical interoperability. In 
addition, the Office of the Chief Information Officer is 
responsible for certain activities financed under the 
Department's Working Capital Fund (7 U.S.C. 2235). The Office 
also provides telecommunication and automated data processing 
[ADP] services to USDA agencies through the National 
Information Technology Center with locations in Fort Collins, 
Colorado, Kansas City, Missouri and Washington, DC. Direct ADP 
operational services are also provided to the Office of the 
Secretary, the Office of the General Counsel, the Office of 
Communications, the Office of the Chief Financial Officer, and 
Departmental Management.
    On November 28, 2004, the information technology staffs of 
the Service Center Agencies [SCA] were converged into one IT 
organization within the office of the Chief Information 
Officer; this converged organization is named Information 
Technology Services and replaces a network of cross-agency 
teams used to coordinate IT infrastructure investment within 
the SCA and allows for unified management of the IT 
infrastructure.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $44,031,000 
for the Office of the Chief Information Officer. This amount 
includes $28,000,000 to support cybersecurity requirements of 
the Department.

                 Office of the Chief Financial Officer

Appropriations, 2012....................................      $5,650,000
Budget estimate, 2013...................................       6,247,000
Committee recommendation................................       6,247,000

    The Office of the Chief Financial Officer is responsible 
for the dual roles of Chief Financial Management Policy Officer 
and Chief Financial Management Advisor to the Secretary and 
mission area heads. The Office provides leadership for all 
financial management, accounting, travel, Federal assistance, 
and strategic planning performance measurement activities 
within the Department. The Office is also responsible for the 
management and operation of the National Finance Center and the 
Departmental Working Capital Fund.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $6,247,000 for 
the Office of the Chief Financial Officer. The Committee is 
concerned about the Department's apparent indifference to the 
need for a Chief Financial Officer. USDA has been without a 
permanent Chief Financial Officer since November 2009. With its 
substantial loan portfolios, potential for improper payments in 
mandatory programs, and history of uneven financial audits, the 
necessity for a full complement of senior USDA financial 
leaders is evident. The Secretary is directed to submit a 
report to the Committee by June 1, 2012, detailing how the 
Department plans to expeditiously recruit and fill this 
vacancy. The Committee reminds the Secretary of the statutory 
requirements of 31 U.S.C. 902.

           Office of the Assistant Secretary for Civil Rights

Appropriations, 2012....................................        $848,000
Budget estimate, 2013...................................         893,000
Committee recommendation................................         893,000

    The Office of the Assistant Secretary for Civil Rights 
provides oversight of civil rights and related functions. This 
includes coordination of the administration of civil rights 
laws and regulations for employees of the Department of 
Agriculture and participants in programs of the Department, and 
ensuring compliance with civil rights laws.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $893,000 for 
the Office of the Assistant Secretary for Civil Rights.

                         Office of Civil Rights

Appropriations, 2012....................................     $21,000,000
Budget estimate, 2013...................................      22,692,000
Committee recommendation................................      22,692,000

    The Office of Civil Rights provides overall leadership 
responsibility for all departmentwide civil rights activities. 
These activities include employment opportunity as well as 
program nondiscrimination policy development, analysis, 
coordination, and compliance. The Office is responsible for 
providing leadership in facilitating the fair and equitable 
treatment of USDA employees, and for monitoring program 
activities to ensure that all USDA programs are delivered in a 
nondiscriminatory manner. The Office's outreach functions 
provide leadership, coordination, facilitation, and expertise 
to internal and external partners to ensure equal and timely 
access to USDA programs for all constituents, with emphasis on 
the underserved, through information sharing, technical 
assistance, and training.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $22,692,000 
for the Office of Civil Rights.
    Equal Credit Opportunity Act Claims.--The budget request 
includes $40,000,000 to settle Equal Credit Opportunity Act 
claims arising out of the delivery of USDA credit programs. The 
claims were filed between July 1, 1997 and October 31, 2009. 
Because the statute of limitations for these claims has 
expired, authorizing language, within the jurisdiction of the 
Committee on Agriculture, Nutrition, and Forestry, is required 
to resolve them. This language was not transmitted with the 
budget. The Committee is aware of the Department's interest in 
resolving these claims and will closely monitor any legislation 
that would allow the Department to move forward to settlement.

          Office of the Assistant Secretary for Administration

Appropriations, 2012....................................        $764,000
Budget estimate, 2013...................................         804,000
Committee recommendation................................         804,000

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

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $804,000 for 
the Office of the Assistant Secretary for Administration.

        Agriculture Buildings and Facilities and Rental Payments

Appropriations, 2012....................................    $230,416,000
Budget estimate, 2013...................................     244,057,000
Committee recommendation................................     241,336,000

    Department headquarters presently operates in a two-
building, Government-owned complex in downtown Washington, DC, 
the George Washington Carver Center in Beltsville, Maryland, 
and in leased buildings in the metropolitan Washington, DC, 
area. Annual appropriations finance payments to the General 
Services Administration [GSA] for leased space and related 
payments are made to the Department of Homeland Security for 
perimeter security services at USDA occupied space. Under this 
arrangement USDA operates, maintains, and repairs the D.C. 
complex buildings, in lieu of rental payments for the two-
building D.C. complex and the George Washington Carver Center. 
GSA charges commercial rent rates pursuant to the Public 
Buildings Amendments of 1972, and agencies may review rate 
procedures and exercise rights to appeal. For the last several 
years the Department has implemented a strategic space plan to 
locate staff more efficiently, renovate its buildings, and 
eliminate safety hazards, particularly in the Agriculture South 
Building.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $241,336,000 
for Agriculture Buildings and Facilities and Rental Payments.
    The following table reflects the Committee's specific 
recommendations for this account as compared to the fiscal year 
2012 and budget request levels:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                    2013 budget      Committee
                                                                   2012 enacted       request     recommendation
----------------------------------------------------------------------------------------------------------------
Rental payments.................................................         164,470         175,694         175,694
Building operations.............................................          52,146          54,890          52,169
DHS building security...........................................          13,800          13,473          13,473
                                                                 -----------------------------------------------
      Total.....................................................         230,416         244,057         241,336
----------------------------------------------------------------------------------------------------------------

                     Hazardous Materials Management

Appropriations, 2012....................................      $3,592,000
Budget estimate, 2013...................................       3,992,000
Committee recommendation................................       3,992,000

    Under the Comprehensive Environmental Response, 
Compensation, and Liability Act and the Resource Conservation 
and Recovery Act, the Department has the responsibility to meet 
the same standards regarding the storage and disposition of 
hazardous materials as private businesses. The Department is 
required to contain, cleanup, monitor, and inspect for 
hazardous materials in areas under the Department's 
jurisdiction.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $3,992,000 for 
Hazardous Materials Management.

                      Departmental Administration

Appropriations, 2012....................................     $24,165,000
Budget estimate, 2013...................................      29,647,000
Committee recommendation................................      27,647,000

    Departmental Administration is comprised of activities that 
provide staff support to top policy officials and overall 
direction and coordination of administrative functions of the 
Department. These activities include departmentwide programs 
for human resource management, ethics, occupational safety and 
health management, real and personal property management, 
procurement, contracting, motor vehicle and aircraft 
management, supply management, emergency preparedness, small 
and disadvantaged business utilization, and the regulatory 
hearing and administrative proceedings conducted by the 
Administrative Law Judges and Judicial Officer.
    Departmental Administration is also responsible for 
representing USDA in the development of Governmentwide policies 
and initiatives; and analyzing the impact of Governmentwide 
trends and developing appropriate USDA principles, policies, 
and standards. In addition, Departmental Administration engages 
in strategic planning and evaluates programs to ensure USDA-
wide compliance with applicable laws, rules, and regulations 
pertaining to administrative matters for the Secretary and 
general officers of the Department.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $27,647,000 
for Departmental Administration.
    Departmental Functions.--The Committee reiterates and 
reminds USDA of the notification requirements included in the 
fiscal year 2012 bill regarding changes to the functions or 
organization of any part of USDA. The Department is instructed 
to undertake a thoughtful and thorough analysis of the cost, 
savings, programmatic efficiencies, impact on services to 
customers and employees, and overall effect on employees that 
might result from any changes to Departmental functions. Not 
less than 60 days before moving forward with any consolidation 
efforts, this analysis shall be shared with the Committee as it 
will be key to the Committee's decision whether to allow 
further Departmental consolidation or reorganization to move 
forward. In addition, the Committee reminds USDA of the 
reprogramming requirements and limitations on the Secretary's 
transfer authority included in this act. The Committee is 
concerned by reports that Economy Act charges to agencies are 
being used to supplement administrative functions for which 
specific appropriations are provided. The Department is 
directed to report by June 1, 2012, on working capital fund, 
greenbook, and Economy Act charges for the past 3 fiscal years, 
with special attention on charges implemented in the last year. 
The report shall be transmitted in a format deemed acceptable 
to the Committee.

     Office of the Assistant Secretary for Congressional Relations

Appropriations, 2012....................................      $3,576,000
Budget estimate, 2013...................................       3,869,000
Committee recommendation................................       3,869,000

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

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $3,869,000 for 
the Office of the Assistant Secretary for Congressional 
Relations.
    The Committee allows these funds to be transferred to 
support congressional relations' activities at the agency 
level. 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 as well as the staff years funded by these 
transfers.

                        Office of Communications

Appropriations, 2012....................................      $8,065,000
Budget estimate, 2013...................................       9,006,000
Committee recommendation................................       9,006,000

    The Office of Communications provides direction, 
leadership, and coordination in the development and delivery of 
useful information through all media to the public on USDA 
programs. The Office serves as the liaison between the 
Department and the many associations and organizations with an 
interest in USDA's mission areas.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $9,006,000 for 
the Office of Communications.

                      Office of Inspector General

Appropriations, 2012....................................     $85,621,000
Budget estimate, 2013...................................      89,016,000
Committee recommendation................................      89,016,000

    The Office of Inspector General [OIG] was established 
October 12, 1978, by the Inspector General Act of 1978 (Public 
Law 95-452). This act expanded and provided specific 
authorities for the activities of OIG which had previously been 
carried out under the general authorities of the Secretary of 
Agriculture.
    The Office is administered by an inspector general who 
reports directly to the Secretary of Agriculture. Functions and 
responsibilities of this Office include direction and control 
of audit and investigative activities within the Department, 
formulation of audit and investigative policies and procedures 
regarding Department programs and operations, and analysis and 
coordination of program-related audit and investigation 
activities performed by other Department agencies.
    The activities of this Office are designed to assure 
compliance with existing laws, policies, regulations, and 
programs of the Department's agencies, and to provide 
appropriate officials with the means for prompt corrective 
action where deviations have occurred. The scope of audit and 
investigative activities is large and includes administrative, 
program, and criminal matters. These activities are 
coordinated, when appropriate, with various audit and 
investigative agencies of the executive and legislative 
branches of the Government.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $89,016,000 
for the Office of Inspector General. In addition, the 
recommendation includes funding for OIG to address violations 
of section 26 of the Animal Welfare Act (7 U.S.C. 2156) and to 
coordinate with State and local law enforcement personnel in 
this effort.

                     Office of the General Counsel

Appropriations, 2012....................................     $39,345,000
Budget estimate, 2013...................................      45,074,000
Committee recommendation................................      45,074,000

    The Office of the General Counsel provides all legal 
advice, counsel, and services to the Secretary and to all 
agencies, offices, and corporations of the Department. The 
Office represents the Department in administrative proceedings; 
nonlitigation debt collection proceedings; State water rights 
adjudications; proceedings before the Environmental Protection 
Agency, Interstate Commerce Commission, Federal Maritime 
Administration, and International Trade Commission; and, in 
conjunction with the Department of Justice, in judicial 
proceedings and litigation.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $45,074,000 
for the Office of the General Counsel.

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

Appropriations, 2012....................................        $848,000
Budget estimate, 2013...................................         893,000
Committee recommendation................................         893,000

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

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $893,000 for 
the Office of the Under Secretary for Research, Education, and 
Economics.
    Tomato Diseases.--Tomato diseases have devastated crops and 
threaten nationwide production. The Committee encourages the 
Under Secretary to evaluate and adjust efforts to identify 
methods of preventing and controlling tomato diseases affecting 
tomato growers nationwide.

                       Economic Research Service

Appropriations, 2012....................................     $77,723,000
Budget estimate, 2013...................................      77,397,000
Committee recommendation................................      77,397,000

    The Economic Research Service [ERS] provides economic and 
other social science research and analysis for public and 
private decisions on agriculture, food, the environment, and 
rural America. The information that ERS produces is for use by 
the general public and to help the executive and legislative 
branches develop, administer, and evaluate agricultural and 
rural policies and programs.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $77,397,000 
for the Economic Research Service, which includes continued 
funding for the Organic Production and Market Data Initiative.

                National Agricultural Statistics Service

Appropriations, 2012....................................    $158,616,000
Budget estimate, 2013...................................     179,477,000
Committee recommendation................................     179,477,000

    The National Agricultural Statistics Service [NASS] 
administers the Department's program of collecting and 
publishing current national, State, and county agricultural 
statistics. These statistics provide accurate and timely 
projections of current agricultural production and measures of 
the economic and environmental welfare of the agricultural 
sector which are essential for making effective policy, 
production, and marketing decisions. NASS also furnishes 
statistical services to other USDA and Federal agencies in 
support of their missions, and provides consulting, technical 
assistance, and training to developing countries.
    NASS is also responsible for administration of the Census 
of Agriculture, which is taken every 5 years and provides 
comprehensive data on the agricultural economy including: data 
on the number of farms, land use, production expenses, farm 
product values, value of land and buildings, farm size and 
characteristics of farm operators, market value of agricultural 
production sold, acreage of major crops, inventory of livestock 
and poultry, and farm irrigation practices.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $179,477,000 
for the National Agricultural Statistics Service. Included in 
this amount is $62,500,000 for the Census of Agriculture.
    Chemical Use Data Series.--The Committee believes that the 
Chemical Use Data Series provides timely, valuable information 
on fertilizer and chemical user data on major field crops and 
selected specialty crops, and is pleased that NASS is 
continuing the collection and analysis of chemical use data, as 
well as practices such as integrated pest management. The 
Committee encourages NASS to resume collecting Fruit Chemical 
Use data and Vegetable Chemical Use data in alternating years.
    Organic Production Survey.--In 2008, NASS conducted the 
first-ever comprehensive Organic Production Survey as a follow-
on survey to the 2007 Census of Agriculture. Published in 
February 2010, the survey has provided information vital to the 
organic sector's growth. The Committee believes the Organic 
Production Survey should be conducted on a regular basis to 
properly assess the characteristics, trends, and changes in the 
sector.

                     Agricultural Research Service


                         SALARIES AND EXPENSES

Appropriations, 2012....................................  $1,094,647,000
Budget estimate, 2013...................................   1,102,565,000
Committee recommendation................................   1,101,853,000

    The Agricultural Research Service [ARS] is responsible for 
conducting basic, applied, and developmental research through 
its major program areas of New Products/Product Quality/Value 
Added; Livestock/Crop Production; Food Safety; Livestock/Crop 
Protection; Human Nutrition; and Environmental Stewardship. The 
research applies to a wide range of goals; commodities; natural 
resources; fields of science; and geographic, climatic, and 
environmental conditions.
    ARS is also responsible for the Abraham Lincoln National 
Agricultural Library which provides agricultural information 
and library services through traditional library functions and 
modern electronic dissemination to agencies of the USDA, public 
and private organizations, and individuals.
    As the USDA's in-house agricultural research unit, ARS has 
major responsibilities for conducting and leading the national 
agricultural research effort. It provides initiative and 
leadership in five areas: research on broad regional and 
national problems, research to support Federal action and 
regulatory agencies, expertise to meet national emergencies, 
research support for international programs, and scientific 
resources to the executive branch and Congress.
    The mission of ARS research is to develop and transfer 
solutions to agricultural problems of high national priority 
and provide information access and dissemination to ensure 
high-quality, safe food and other agricultural products; assess 
the nutritional needs of Americans; sustain a competitive 
agricultural economy; enhance the natural resource base and the 
environment; and provide economic opportunities for rural 
citizens, communities, and society as a whole.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $1,101,853,000 
for salaries and expenses of the Agricultural Research Service. 
The Committee does not concur with the President's budget 
request regarding the termination of extramural research, 
reallocation of funds, or closure of six research locations. 
The Committee expects extramural research to be funded without 
the reductions assessed in fiscal year 2012. The Committee 
recommendation includes requested funding for basic 
requirements, including repair and maintenance and the National 
Agricultural Library.
    Aerial Application Research.--The Committee recognizes the 
importance of ARS Aerial Application Technology Program. The 
program conducts innovative research making aerial applications 
more efficient, effective and precise. Research for aerial 
application serves the public good as a vital tool for the 
future, as agriculture strives to meet the food, fiber, and 
bio-energy demands of a growing population.
    Classical Plant Breeding.--The Committee is aware of the 
need to enhance classical plant breeding, and encourages ARS to 
invest in research to improve genetic resources and cultivars 
for the benefit of U.S. producers, seed companies, processors 
and consumers. This research should focus on breeding improved 
germplasm and varieties with higher yields, improved disease 
and pest resistance and resilience to weather extremes. 
Additionally, methods and tools should be developed to enable 
classical breeders to choose better breeding parents and speed 
up variety development.
    Commodity Processing.--The Committee encourages ARS to 
consider research to improve the processing of commodities that 
produce high-quality, nutritious products for the American 
people, including sweet potatoes. These commodities have 
created an unprecedented need for basic and applied research in 
the development of new innovative processing technologies and 
have the potential to create new market opportunities, increase 
employment in rural America and provide consumers with healthy 
and readily available foods.
    Comparative Database Solutions.--The Committee encourages 
the Department to continue its support for comparative database 
solutions on quality trait and disease resistant plant research 
important to human and animal health and nutrition. These 
efforts can improve nutritional content and increase production 
of high-value oils, including for bio-fuels, in important crop 
species. Such efforts can help reduce water usage, and chemical 
inputs, thus delivering added environmental and farm cost 
benefits. Collaborative research at the intersection of 
biology, genomics, computer science, and mathematics has great 
promise and can be very cost-effective.
    Drought Mitigation Research.--The Committee believes that 
drought mitigation research and strategies for dealing with 
drought continue to be of significant value to farmers, 
ranchers, food processors and other food-related industries, 
consumers, and State and Federal agencies. Consequently, the 
Committee encourages the Department to continue support for 
such research or to provide an explanation as to how they will 
otherwise obtain and distribute this information.
    Emerging Cereal Rust Diseases.--The Committee is aware that 
emerging cereal rust diseases are a threat to domestic and 
world food supplies. Therefore, the Department should continue 
to dedicate funding to speed efforts to combat cereal rust 
disease, including development of Ug99-resistant wheat 
varieties.
    Human Nutrition Research.--The Committee remains concerned 
about the high rates of obesity in this country, and believes 
that research into human nutrition is important to help prevent 
childhood obesity and the medical issues obesity brings. In 
addition, there is strong evidence that nutrition plays a vital 
role in how a person ages, but more research in this area is 
needed. Therefore, the Committee encourages the Agricultural 
Research Service to continue research relating both to 
childhood and adult obesity as well as the impact of nutrition 
on aging.
    Invasive Species Research.--The Committee encourages the 
Department to prioritize funding for programs designed to 
combat invasive species, such as the Brown Marmorated Stink 
Bug, that are destructive to crops.
    National Agricultural Library.--The Committee encourages 
the Agricultural Research Service to maintain a focus on 
agriculture-related legal issues within the National 
Agricultural Library. The Committee notes that as the 
agriculture sector of the national economy evolves, there is a 
necessity that these agriculture-related legal issues be 
addressed on an increasingly frequent basis. Further, 
agricultural-related legal issues are increasingly complex and 
the impact of these legal issues continues to broaden in scope.
    Pollinator Research.--The Committee is aware that 
pollinators are responsible for the production of one-third of 
the Nation's food supply, but the number of managed honeybee 
colonies in the United States has dropped in half since 1940. 
Because of the importance of pollinators in the production of 
the Nation's food supply and their impact on the stability of 
our agricultural economy, the Committee encourages ARS to 
continue to dedicate resources to protecting the health of both 
honeybees and other native bees, including continued research 
into colony collapse disorder.
    Pulse Health Initiative.--The Committee continues to 
recognize the need to investigate the ability of pulse crops--
dry beans, dry peas, lentils, and chickpeas--to provide 
solutions to critical health issues including but not limited 
to obesity, diabetes, cardiovascular disease, and cancer; and 
to increase the consumption of pulse crops by improving their 
functionality in baked goods and end use as a food and food 
ingredient through the study of milling, extrusion, extraction, 
and cooking properties. The Committee also recognizes the 
potential to improve the sustainability of agricultural 
rotations and reduce green house gas emissions by improving the 
nitrogen fixing abilities of pulse crops. The Committee 
recommends ARS provide adequate funding to establish the Pulse 
Health Initiative.
    Research Facilities.--In the fiscal year 2012 bill, ARS was 
directed to evaluate its capital asset requirements and develop 
a plan to coordinate ongoing and emerging research, as well as 
develop a long-term plan to guide capital asset construction. 
This plan was to include input from various stakeholders and 
cost estimates for maintaining and constructing facilities to 
meet ARS' research priorities. The Committee has yet to receive 
a capital asset plan from ARS and again directs the agency to 
provide one by July 1, 2012.
    The Committee notes that, even though it has been directed 
to do so, the Department did not adequately budget for the 
proposed closure of six research labs included in the fiscal 
year 2013 budget. The Committee included this directive in the 
fiscal year 2012 bill because closing locations often costs 
money and does not necessarily provide real savings in the 
short term. The Department's refusal to adequately provide 
these estimates in its budget requests results in the 
unnecessary reduction of valuable research programs. Therefore, 
the Committee does not concur with the proposal to close six 
research labs in fiscal year 2013, and further directs the 
agency to adequately budget for any proposed closures in future 
budget requests. The Department is directed to specifically 
identify costs associated with closing a location and 
relocating employees.
    Shellfish Research.--The Committee directs the Agricultural 
Research Service to continue to partner with research 
institutions on research to improve shellfish survival and 
growth rates and to classify and preserve natural genetic 
variation.

               National Institute of Food and Agriculture

    Section 7511(f)(2) of the Food, Conservation, and Energy 
Act of 2008 amends the Department of Agriculture Reorganization 
Act of 1994 (7 U.S.C. 6971) by establishing an agency to be 
known as the National Institute of Food and Agriculture [NIFA]. 
The Secretary transferred to the Director of NIFA, effective 
October 1, 2009, all authorities administered by the 
Administrator of the Cooperative State, Research, Education and 
Extension Service. The mission is to work with university 
partners and customers to advance research, extension, and 
higher education in the food and agricultural sciences and 
related environmental and human sciences to benefit people, 
communities, and the Nation.

                   RESEARCH AND EDUCATION ACTIVITIES

Appropriations, 2012....................................    $705,599,000
Budget estimate, 2013...................................     732,730,000
Committee recommendation................................     738,638,000

    Research and Education programs administered by NIFA are 
USDA's principal entree to the university system of the United 
States for the purpose of conducting agricultural research and 
education programs as authorized by the Hatch Act of 1887, as 
amended (7 U.S.C. 361a-361i); the McIntire-Stennis Cooperative 
Forestry Act of 1962, as amended (16 U.S.C. 582a et seq.); the 
Competitive, Special, and Facilities Research Grant Act, as 
amended (7 U.S.C. 450i); the National Agricultural, Research, 
Extension, and Teaching Policy Act of 1977, as amended (7 
U.S.C. 3101 et seq.); the Equity in Educational Land-Grant 
Status Act of 1994 (7 U.S.C. 301 note); the Agricultural 
Research, Extension and Education Reform Act of 1998 (Public 
Law 105-185), as amended; the Food, Agriculture, Conservation 
and Trade Act of 1990 (Public Law 101-624); the Farm Security 
and Rural Investment Act of 2002 (Public Law 107-171); and the 
Food, Conservation and Energy Act of 2008 (Public Law 110-246). 
Through these authorities, USDA participates with State and 
other cooperators to encourage and assist the State 
institutions in the conduct of agricultural research and 
education through the State Agricultural Experiment Stations of 
the 50 States and the territories; by approved Schools of 
Forestry; the 1890 Land-Grant Institutions and Tuskegee 
University and West Virginia State University; 1994 Land-Grant 
Institutions; by Colleges of Veterinary Medicine; and other 
eligible institutions. The appropriated funds provide Federal 
support for research and education programs at these 
institutions.
    The research and education programs participate in a 
nationwide system of agricultural research program planning and 
coordination among the State institutions, U.S. Department of 
Agriculture, and the agricultural industry of America.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $738,638,000 
for research and education activities of the National Institute 
of Food and Agriculture.
    The following table summarizes the Committee's 
recommendations for research and education activities:

                  NATIONAL INSTITUTE OF FOOD AND AGRICULTURE--RESEARCH AND EDUCATION ACTIVITIES
                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                    Committee
               Program/Activity                                  Authorization                    recommendation
----------------------------------------------------------------------------------------------------------------
Hatch Act.....................................  7 U.S.C. 361a-i................................         $236,334
McIntire-Stennis Cooperative Forestry Act.....  16 U.S.C. 582a through a-7.....................           32,934
Research at 1890 Institutions (Evans-Allen      7 U.S.C. 3222..................................           50,898
 Program).
Payments to the 1994 Institutions.............  534(a)(1) of Public Law 103-382................            3,335
Education Grants for 1890 Institutions........  7 U.S.C. 3152(b)...............................           19,336
Education Grants for Hispanic-Serving           7 U.S.C. 3241..................................            9,219
 Institutions.
Education Grants for Alaska Native and Native   7 U.S.C. 3156..................................            3,194
 Hawaiian-Serving Institutions.
Research Grants for 1994 Institutions.........  7 U.S.C. 301 note..............................            1,801
Capacity Building for Non Land-Grant Colleges   7 U.S.C. 3319i.................................            4,500
 of Agriculture.
Resident Instruction and Distance Education     7 U.S.C. 3363 and 3362.........................            1,650
 Grants for Insular Areas.
Agriculture and Food Research Initiative......  7 U.S.C. 450i(b)...............................          297,956
Veterinary Medicine Loan Repayment............  7 U.S.C. 3151a.................................            4,790
Continuing Animal Health and Disease Research   7 U.S.C. 3195..................................            4,000
 Program.
Supplemental and Alternative Crops............  7 U.S.C. 3319d.................................              825
Critical Agricultural Materials Act...........  7 U.S.C. 178 et seq............................            1,081
Multicultural Scholars, Graduate Fellowship     7 U.S.C. 3152(b)...............................            9,000
 and Institution Challenge Grants.
Secondary and 2-year Post-Secondary Education.  7 U.S.C. 3152(j)...............................              900
Aquaculture Centers...........................  7 U.S.C. 3322..................................            4,000
Sustainable Agriculture Research and Education  7 U.S.C. 5811..................................           14,471
Farm Business Management......................  7 U.S.C. 5925f.................................            1,450
Sun Grant Program.............................  7 U.S.C. 8114..................................            2,500
Improved Pest Control:
    Expert IPM Decision Support System........  7 U.S.C. 450i(c)...............................              153
    Integrated Pest Management................  7 U.S.C. 450i(c)...............................            2,362
    Minor Crop Pest Management [IR-4].........  7 U.S.C. 450i(c)...............................           11,913
    Pest Management Alternatives..............  7 U.S.C. 450i(c)...............................            1,402
                                                                                                ----------------
      Total, Improved Pest Control............  ...............................................           15,830
                                                                                                ================
Special Research Grants:
    Global Change/UV Monitoring...............  7 U.S.C. 450i(c)...............................            1,405
    Potato Research...........................  7 U.S.C. 450i(c)...............................            1,350
    Forest Products Research..................  7 U.S.C. 450i(c)...............................            1,650
                                                                                                ----------------
      Total, Special Research Grants..........  ...............................................            4,405
                                                                                                ================
Necessary Expenses of Research and Education
 Activities:
    Grants Management Systems.................  ...............................................            7,830
    Other, Necessary Expenses.................  ...............................................            6,399
                                                                                                ----------------
      Total, Necessary Expenses...............  ...............................................           14,229
                                                                                                ================
      Total, Research and Education Activities  ...............................................          738,638
----------------------------------------------------------------------------------------------------------------

    Agriculture and Food Research Initiative.--The Committee 
recommendation includes $297,956,000 for the Agriculture and 
Food Research Initiative [AFRI].
    Section 7406 of the Food, Conservation, and Energy Act of 
2008 specifies priority areas within the Agriculture and Food 
Research Initiative [AFRI], including an emphasis on 
conventional (classical) plant and animal breeding. The 
Committee strongly concurs with the intent of this section, and 
requests a report from the agency as to its plans for 
implementing this important conventional/classical plant and 
animal breeding requirement. The Committee also encourages the 
agency to specifically focus on the development of public 
cultivars and breeds as part of the general classical breeding 
research program.
    Agricultural Research Enhancement Awards.--The Committee 
remains determined to see that quality research and enhanced 
human resources development in the agricultural and related 
sciences be a nationwide commitment. Therefore, the Committee 
continues its direction that not less than 10 percent of the 
competitive research grant funds be used for USDA's 
agricultural research enhancement awards program (including 
USDA-EPSCoR), in accordance with 7 U.S.C. 450i.
    Alfalfa and Forage Research.--The Committee notes that 
research into alfalfa and forage holds the potential to 
increase alfalfa and forage yields, increase milk production, 
and improve forage genetics to increase biomass for the 
production of cellulosic ethanol. The Committee supports 
research into the improvement of yields, creation of new uses 
of alfalfa and forages for bioenergy, and the development of 
new storage and harvest systems.
    Aquaculture Disease Research.--The Committee encourages 
USDA to support aquaculture disease and vaccine research, 
including research on coldwater aquaculture vaccines. There is 
currently no national facility for pathogen testing. Research 
into finfish vaccines and pathogens has the potential to 
accelerate the growth of sustainable U.S. aquaculture, reduce 
the trade deficit attributable to imported seafood, and reduce 
the pressure on overfished species.
    Canola Research.--The Committee recognizes the importance 
of nationally coordinated, regionally managed canola research 
and education programs. The Committee supports research 
designed to increase canola production through research on 
insect, disease and weed control, best management practices, 
genetics and breeding, and other areas that may increase canola 
yield and acreage.
    Cereal Crop Research.--Research on cereal crops has 
historically been conducted by USDA and public universities, 
and the Committee recognizes the importance of continuing 
investment in cereal crop research. The Committee strongly 
encourages USDA to provide funding for cereal crop research in 
the areas of genetic and genomic research, plant pest research, 
and improved production systems.
    Cranberry and Blueberry Research.--The Committee encourages 
the NIFA to continue working with research institutions to 
develop resilient cranberry and blueberry breeds and establish 
effective and environmentally sound pest management 
technologies.
    Forest Products.--The Committee recognizes the important 
role of the forests products sector to the U.S. economy. The 
need to create new and improved value-added products and 
renewable energy from our Nation's wood supply is critical to 
the sustainability of the national economy. The Committee 
directs NIFA to support research, education and outreach for 
the forest products sector.
    Seafood.--The Committee encourages USDA, in partnership 
with universities with established domestic shrimp farming 
programs, to support the development of a domestic industry 
that will help ensure the safety and quality of the Nation's 
seafood supply, promote environmentally sustainable 
aquaculture, create new opportunities for U.S. agriculture, and 
forge new markets for U.S. grain and oilseed products and 
technology services.

 HISPANIC-SERVING AGRICULTURAL COLLEGES AND UNIVERSITIES ENDOWMENT FUND

Appropriations, 2012....................................................
Budget estimate, 2013...................................     $10,000,000
Committee recommendation................................      10,000,000

    Section 7129 of the Food, Conservation, and Energy Act of 
2008, provides for the establishment of an endowment fund for 
the Hispanic-Serving Agricultural Colleges and Universities 
[HSACU]. The Hispanic/Latino community is the fastest-growing 
sector of the American population. This investment in the 
Hispanic-Serving Agricultural Colleges and Universities is 
needed to ensure institutions can effectively compete for NIFA 
competitive grants.
    On the termination of each fiscal year, the Secretary shall 
withdraw the income from the endowment fund for the fiscal 
year, and after making adjustments for the cost of 
administering the endowment fund, shall distribute the adjusted 
income as follows: 60 percent of the adjusted income shall be 
distributed among the Hispanic-Serving Agricultural Colleges 
and Universities on a pro rata basis based on the Hispanic 
enrollment count of each institution; and 40 percent shall be 
distributed in equal shares to the Hispanic-Serving 
Agricultural Colleges and Universities.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $10,000,000 
for the Hispanic-Serving Agricultural Colleges and Universities 
Endowment Fund.

              NATIVE AMERICAN INSTITUTIONS ENDOWMENT FUND

Appropriations, 2012....................................     $11,880,000
Budget estimate, 2013...................................      11,880,000
Committee recommendation................................      11,880,000

    The Native American Institutions Endowment Fund authorized 
by Public Law 103-382, the Equity in Educational Land-Grant 
Status Act, provides an endowment for the 1994 land-grant 
institutions (34 tribally controlled colleges). This program 
will enhance educational opportunity for Native Americans by 
building educational capacity at these institutions in the 
areas of student recruitment and retention, curricula 
development, faculty preparation, instruction delivery systems, 
and scientific instrumentation for teaching. Income funds are 
also available for facility renovation, repair, construction, 
and maintenance. On the termination of each fiscal year, the 
Secretary shall withdraw the income from the endowment fund for 
the fiscal year, and after making adjustments for the cost of 
administering the endowment fund, distribute the adjusted 
income as follows: 60 percent of the adjusted income from these 
funds shall be distributed among the 1994 land-grant 
institutions on a pro rata basis, the proportionate share being 
based on the Indian student count; and 40 percent of the 
adjusted income shall be distributed in equal shares to the 
1994 land-grant institutions.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $11,880,000 
for the Native American Institutions Endowment Fund.

                          EXTENSION ACTIVITIES

Appropriations, 2012....................................    $475,183,000
Budget estimate, 2013...................................     462,473,000
Committee recommendation................................     475,125,000

    Cooperative extension work was established by the Smith-
Lever Act of May 8, 1914, as amended. The Department of 
Agriculture is authorized to provide, through the land-grant 
colleges, cooperative extension work that consists of the 
development of practical applications of research knowledge and 
the giving of instruction and practical demonstrations of 
existing or improved practices or technologies in agriculture 
and related subjects, and to encourage the application of such 
information by demonstrations, publications, through 4-H clubs, 
and other means to persons not in attendance or resident at the 
colleges.
    To fulfill the requirements of the Smith-Lever Act, State 
and county extension offices in each State, the District of 
Columbia, Puerto Rico, the Virgin Islands, Guam, American 
Samoa, the Northern Marianas, and Micronesia conduct 
educational programs to improve American agriculture and 
strengthen the Nation's families and communities.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $475,125,000 
for extension activities of the National Institute of Food and 
Agriculture.
    The following table summarizes the Committee's 
recommendations for extension activities:

                        NATIONAL INSTITUTE OF FOOD AND AGRICULTURE--EXTENSION ACTIVITIES
                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                    Committee
               Program/Activity                                  Authorization                    recommendation
----------------------------------------------------------------------------------------------------------------
Smith-Lever Act, Section 3(b) and (c) programs  7 U.S.C. 343(b) and (c) and 208(c) of Public            $294,000
 and Cooperative Extension.                      Law 93-471.
Extension Services at 1890 Institutions.......  7 U.S.C. 3221..................................           42,592
Extension Services at 1994 Institutions.......  7 U.S.C. 343(b)(3).............................            4,312
Facility Improvements at 1890 Institutions....  7 U.S.C. 3222b.................................           19,730
Renewable Resources Extension Act.............  16 U.S.C. 1671 et seq..........................            3,700
Rural Health and Safety Education Programs....  7 U.S.C. 2662(i)...............................            1,500
Food Animal Residue Avoidance Database Program  7 U.S.C. 7642..................................            1,000
Women and Minorities in STEM Fields...........  7 U.S.C. 5925..................................              400
Smith-Lever Act, Section 3(d):
    Food and Nutrition Education..............  7 U.S.C. 343(d)................................           67,934
    Pest Management...........................  7 U.S.C. 343(d)................................            9,918
    Farm Safety and Youth Farm Safety           7 U.S.C. 343(d)................................            4,610
     Education Programs.
    New Technologies for Agricultural           7 U.S.C. 343(d)................................            1,550
     Extension.
    Children, Youth, and Families at Risk.....  7 U.S.C. 343(d)................................            7,600
    Federally Recognized Tribes Extension       7 U.S.C. 343(d)................................            3,039
     Program.
    Sustainable Agriculture Programs..........  7 U.S.C. 343(d)................................            4,696
                                                                                                ----------------
      Total, Section 3(d).....................  ...............................................           99,347
                                                                                                ================
Necessary Expenses of Extension Activities:
    Agriculture in the K-12 Classroom.........  ...............................................              552
    Federal Administration--Other Necessary     ...............................................            7,992
     Expenses for Extension Activities.
                                                                                                ----------------
        Total, Necessary Expenses.............  ...............................................            8,544
                                                                                                ================
        Total, Extension Activities...........  ...............................................          475,125
----------------------------------------------------------------------------------------------------------------

    Potato Research.--To minimize the application of pesticides 
and to maximize the yield and quality of harvested potatoes, 
the Committee directs the Secretary to support pest management 
programs in potato growing States. Such programs help 
scientists track potential pest outbreaks and provide growers 
and industry professionals with current information on specific 
and timely treatments. Additionally, the programs help identify 
serious diseases, such as late blight disease, in their early 
stages, allowing for preventive measure to be put into place 
quickly to avoid crop losses.

                         INTEGRATED ACTIVITIES

Appropriations, 2012....................................     $21,482,000
Budget estimate, 2013...................................      43,542,000
Committee recommendation................................      24,982,000

    Section 406, as amended, of the Agricultural Research, 
Extension, and Education Reform Act of 1998 authorizes an 
integrated research, education, and extension competitive 
grants program.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $24,982,000 
for integrated activities of the National Institute of Food and 
Agriculture.
    The following table summarizes the Committee's 
recommendations for integrated activities:

    NATIONAL INSTITUTE OF FOOD AND AGRICULTURE--INTEGRATED ACTIVITIES
                         [Dollars in thousands]
------------------------------------------------------------------------
                                                            Committee
       Program/Activity              Authorization        recommendation
------------------------------------------------------------------------
Water Quality Program........  7 U.S.C. 7626...........           $4,500
Regional Pest Management       7 U.S.C. 7626...........            4,000
 Centers.
Methyl Bromide Transition      7 U.S.C. 7626...........            1,996
 Program.
Organic Transition Program...  7 U.S.C. 7626...........            4,000
Regional Rural Development     7 U.S.C. 450i(c)........              998
 Centers.
Food and Agriculture Defense   7 U.S.C. 3351...........            5,988
 Initiative.
Sustainable Agriculture        7 U.S.C. 5813...........            3,500
 Federal-State Matching Grant
 Program.
                                                        ----------------
      Total, Integrated        ........................           24,982
       Activities.
------------------------------------------------------------------------

  Office of the Under Secretary for Marketing and Regulatory Programs

Appropriations, 2012....................................        $848,000
Budget estimate, 2013...................................         893,000
Committee recommendation................................         893,000

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

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $893,000 for 
the Office of the Under Secretary for Marketing and Regulatory 
Programs.

               Animal and Plant Health Inspection Service


                         SALARIES AND EXPENSES

Appropriations, 2012....................................    $816,534,000
Budget estimate, 2013...................................     762,418,000
Committee recommendation................................     816,534,000

    The Secretary of Agriculture established the Animal and 
Plant Health Inspection Service [APHIS] on April 2, 1972, under 
the authority of reorganization plan No. 2 of 1953, and other 
authorities. The major objectives of APHIS are to protect the 
animal and plant resources of the Nation from diseases and 
pests. These objectives are carried out under the major areas 
of activity, as follows:
    Safeguarding and Emergency Preparedness/Response.--The 
agency monitors plant and animal health worldwide, and sets 
import polices to prevent the introduction of foreign plant and 
animal pests and diseases. Domestically, the agency works 
cooperatively to conduct plant and animal health monitoring 
programs, pursue eradication, or limit the spread of the 
threat. The agency also conducts diagnostic laboratory 
activities that support disease prevention, detection, control, 
and eradication programs. In addition, the agency protects 
agriculture from detrimental animal predators, and through its 
regulatory structure helps advance genetic research while 
protecting against the release of harmful organisms.
    Safe Trade and International Technical Assistance.--The 
agency helps resolve technical trade issues to ensure the 
smooth and safe movement of agricultural commodities into and 
out of the United States. The agency negotiates animal and 
plant health certification requirements and assists U.S. 
exporters meet foreign regulatory demands. In addition, the 
agency assists developing countries in improving their 
safeguarding systems, to protect the United States from 
emerging plant and animal pests and diseases.
    Animal Care.--The agency conducts regulatory activities 
that ensure the humane care and treatment of animals and horses 
as the Animal Welfare and Horse Protection Acts require. These 
activities include inspection of certain establishments that 
handle animals intended for research, exhibition, and as pets, 
and monitoring certain horse shows.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $816,534,000 
for salaries and expenses of the Animal and Plant Health 
Inspection Service.
    The following table reflects the Committee's specific 
recommendations for the Animal and Plant Health Inspection 
Service:

                                   ANIMAL AND PLANT HEALTH INSPECTION SERVICE
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                  Fiscal year
                                                                 Fiscal year      2013 budget       Committee
                                                                 2012 enacted       request       recommendation
----------------------------------------------------------------------------------------------------------------
Safeguarding and International Technical Assistance:
    Animal Health Technical Services.........................           32,500           37,858           36,858
    Aquatic Animal Health....................................            2,261            2,664            2,261
    Avian Health.............................................           52,000           49,741           50,761
    Cattle Health............................................           99,000           90,303           97,884
    Equine and Cervid Health.................................            5,050            3,726            3,726
    National Veterinary Stockpile............................            2,750            2,265            2,750
    Sheep and Goat Health....................................           16,950           14,207           14,207
    Swine Health.............................................           23,000           20,342           23,000
    Veterinary Biologics.....................................           16,457           15,760           16,457
    Veterinary Diagnostics...................................           31,611           31,455           31,611
    Zoonotic Disease Management..............................            9,000           10,374           10,374
                                                              --------------------------------------------------
      Subtotal, Animal Health................................          290,579          278,695          289,889
                                                              ==================================================
    Agricultural Quarantine Inspection.......................           27,500           25,125           28,500
    Cotton Pests.............................................           17,848            8,915           15,970
    Field Crop and Rangeland Ecosystems Pests................            9,068            8,867            9,068
    Pest Detection...........................................           27,500           25,617           27,500
    Plant Protection Methods Development.....................           20,600           19,707           21,600
    Specialty Crop Pests.....................................          153,950          151,055          153,950
    Tree and Wood Pests......................................           55,638           43,919           56,638
                                                              --------------------------------------------------
      Subtotal, Plant Health.................................          312,104          283,205          313,226
                                                              ==================================================
    Wildlife Damage Management...............................           72,500           67,712           73,500
    Wildlife Services Methods Development....................           18,000           16,751           19,000
                                                              --------------------------------------------------
      Subtotal, Wildlife Services............................           90,500           84,463           92,500
                                                              ==================================================
    Animal and Plant Health Regulatory Enforcement...........           16,275           15,776           16,275
    Biotechnology Regulatory Services........................           18,135           16,751           18,135
                                                              --------------------------------------------------
      Subtotal, Regulatory Services..........................           34,410           32,527           34,410
                                                              ==================================================
    Contingency Fund.........................................            1,000            1,984            1,500
    Emergency Preparedness and Response......................           17,000           16,743           17,000
                                                              --------------------------------------------------
      Subtotal, Emergency Management.........................           18,000           18,727           18,500
                                                              ==================================================
      Subtotal, Safeguarding and Emergency Preparedness/               745,593          697,617          748,525
       Response..............................................
                                                              ==================================================
Safe Trade and International Technical Assistance:
    Agriculture Import/Export................................           13,354           13,309           12,584
    Overseas Technical and Trade Operations..................           20,104           17,747           17,747
                                                              --------------------------------------------------
      Subtotal, Safe Trade...................................           33,458           31,056           30,331
                                                              ==================================================
Animal Welfare:
    Animal Welfare...........................................           27,087           24,159           27,087
    Horse Protection.........................................              696              493              891
                                                              --------------------------------------------------
      Subtotal, Animal Welfare...............................           27,783           24,652           27,978
                                                              ==================================================
Agency Management:
    APHIS Information Technology Infrastructure..............            4,335            4,167            4,335
    Physical/Operational Security............................            5,365            4,926            5,365
                                                              --------------------------------------------------
      Subtotal, Agency Management............................            9,700            9,093            9,700
                                                              ==================================================
      Total..................................................          816,534          762,418          816,534
----------------------------------------------------------------------------------------------------------------

     The Committee encourages the Secretary to continue use of 
contingency funding from the Commodity Credit Corporation, as 
in past fiscal years, to cover additional emergencies as the 
Secretary determines necessary. Furthermore, the Committee 
encourages the Secretary to employ cooperative agreements where 
appropriate to support activities related to animal health.
    Agricultural Quarantine Inspection.--The Committee 
recognizes that prevention of infestations of pests and 
diseases is much more cost effective than subsequent control or 
eradication. This is an important Federal responsibility and 
the Committee provides $28,500,000 for the agriculture 
quarantine inspections function, including pre-departure 
inspections.
    Animal Disease Traceability.--The Committee provides 
$13,000,000 to continue support for implementation of the new 
animal disease traceability system.
    Invasive Honey Bee Pests.--The Committee remains concerned 
with declining bee populations and the tragic implications for 
pollination of U.S. agriculture. The Committee directs the 
agency to continue priority work with other Federal and State 
agencies and the public to manage, suppress, and eradicate 
varroa mites, small hive beetles, and other pests and diseases 
contributing to colony collapse disorder and has provided 
increased funding for Plant Protection Methods Development for 
this purpose.
    Lacey Act Enforcement.--The Committee is concerned about 
the Department's efforts to implement its responsibilities 
under the Lacey Act. Approximately 10,000 Lacey Act 
declarations are received weekly for review. The bulk of these 
declarations are accepted in an electronic manner but about 10 
percent are paper-based. This budget requests a substantial 
increase to address these paper submissions. However, the 
agency appears woefully understaffed for its responsibilities, 
and products routinely leave the port of entry long before 
APHIS is able to review the declarations. The Committee is 
concerned that the current process may be fundamentally flawed. 
The Secretary is directed to provide a report to the Committee 
that demonstrates that the processes, and requested resources, 
are sufficient to accomplish the review responsibilities placed 
on the Agency.
    Livestock Warranty Programs.--The Committee directs USDA to 
engage the private sector in evaluating proposals presented to 
USDA for use in the poultry and livestock industry that: 
encourage early disease detection and appropriate management 
actions by producers; provide producer-protections to address 
business interruption events caused by catastrophic disease, 
including alternative delivery methods of indemnity payments; 
focus market education efforts on improved production 
practices; and provide liability protection for producers in 
the event of a trace back of a listed disease.
    National Clean Plant Network.--The National Clean Plant 
Network is instrumental in ensuring that nurseries can provide 
safe, virus-free plant materials to orchards, vineyards, and 
other growers. The Committee recognizes the value of continued 
research to improve detection and eradication of viruses, and 
encourages the Department to continue its work on this 
important program.
    Sudden Oak Death.--The Committee is interested in APHIS' 
efforts to manage Sudden Oak Death while minimizing disruption 
to the interstate movement of plant materials and commercial 
trade. The Committee expects APHIS to use an appropriate 
portion of the funding provided for specialty crop pests to 
promote the development and testing of new systems of nursery 
pest and disease management, and for programs of inspection and 
regulation in partnership with the State regulatory agencies 
and the nursery industry.
    Wildlife Damage Management.--APHIS is responsible for 
providing Federal leadership in managing problems caused by 
wildlife. The Committee provides $73,500,000 for wildlife 
damage control to maintain priority initiatives, including 
preventing the transport of invasive snakes and other harmful 
species.
    Wildlife Services Education and Training.--The Committee is 
aware of the wide range of hazardous procedures and materials 
utilized by APHIS personnel in the conduct of daily duties. In 
addition, a recent comprehensive study noted the critical need 
to provide standardized safety training, certification, and 
database management for tracking, to ensure the safest working 
environment possible. As such, the Committee directs APHIS to 
deliver a training program focused on those areas of greatest 
concern such as pyrotechnics, firearms, hazardous materials, 
immobilization and euthanasia drugs, pesticides, animal care 
and handling, land vehicles, watercraft, and zoonotic diseases.
    Wildlife Services Methods Development.--The Committee 
appreciates the important work done by the National Wildlife 
Research Center and its affiliated field locations to resolve 
problems caused by the interaction of wild animals and society. 
The Committee provides $19,000,000 to ensure continued 
development of technical and scientific information on wildlife 
damage management.

                          COMMITTEE DIRECTIVES

    In complying with the Committee's directives, the Committee 
expects APHIS not to redirect support for programs and 
activities without prior notification to and approval by the 
House and Senate Committees on Appropriations in accordance 
with the reprogramming procedures specified in the act. Unless 
otherwise directed, the Animal and Plant Health Inspection 
Service shall implement appropriations by programs, projects, 
and activities as specified by the Appropriations Committees of 
both Houses of Congress. Unspecified reductions necessary to 
carry out the provisions of this act are to be implemented in 
accordance with the definitions contained in the program, 
project, and activity section of this report.

                        BUILDINGS AND FACILITIES

Appropriations, 2012....................................      $3,200,000
Budget estimate, 2013...................................       3,175,000
Committee recommendation................................       3,175,000

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

                       COMMITTEE RECOMMENDATIONS

    The Committee recommendation includes an appropriation of 
$3,175,000 for buildings and facilities of the Animal and Plant 
Health Inspection Service. This funding is necessary to allow 
APHIS to maintain existing facilities, and perform critically 
needed repairs to and replacements of building components, such 
as heating, ventilation and air-conditioning on a prioritized 
basis at APHIS facilities. The Committee notes that due to the 
environmentally sensitive nature of many APHIS facilities, 
closure of a facility could result if APHIS is unable to 
complete the required repairs.

                     Agricultural Marketing Service


                           MARKETING SERVICES

Appropriations, 2012....................................     $82,211,000
Budget estimate, 2013...................................      77,032,000
Committee recommendation................................      77,863,000

    The Agricultural Marketing Service [AMS] was established by 
the Secretary of Agriculture on April 2, 1972. AMS carries out 
programs authorized by more than 50 different statutory 
authorities, the primary ones being the Agricultural Marketing 
Act of 1946 (7 U.S.C. 1621-1627, 1635-1638); the U.S. Cotton 
Standards Act (7 U.S.C. 51-65); the Cotton Statistics and 
Estimates Act (7 U.S.C. 471-476); the Tobacco Inspection Act (7 
U.S.C. 511-511q); the Perishable Agricultural Commodities Act 
(7 U.S.C. 499a-499t); the Egg Products Inspection Act (21 
U.S.C. 1031-1056); and section 32 of the Act of 1935 (Public 
Law 74-320, 7 U.S.C. 612c).
    Programs administered by this agency include the market 
news services, standardization, grading, classing, shell egg 
surveillance services, transportation services, wholesale 
farmers and alternative market development, grant payments to 
States for marketing activities, the Federal administration of 
marketing agreements and orders, commodity purchases, 
Perishable Agricultural Commodities Act, the Plant Variety 
Protection Act (7 U.S.C. 2321 et seq.), and market protection 
and promotion activities.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $77,863,000 
for marketing services of the Agricultural Marketing Service. 
The Committee recommendation includes $1,831,000 for the 
Pesticide Recordkeeping Program and does not include an 
increase of $1,000,000 for Transportation and Marketing 
Programs, as proposed in the budget.

                 LIMITATION ON ADMINISTRATIVE EXPENSES

Limitation, 2012........................................     $62,101,000
Budget limitation, 2013.................................      62,592,000
Committee recommendation................................      62,592,000

    The Omnibus Budget Reconciliation Act of 1981 (Public Law 
97-35) initiated a system of user fees for the cost of grading 
and classing cotton, and tobacco. These activities, authorized 
under the U.S. Cotton Standards Act (7 U.S.C. 51 et seq.), the 
Tobacco Inspection Act (7 U.S.C. 511 et seq.), and other 
provisions of law are designed to facilitate commerce and 
protect participants in the industry.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends a limitation of $62,592,000 on 
administrative expenses of the Agricultural Marketing Service.

          FUNDS FOR STRENGTHENING MARKETS, INCOME, AND SUPPLY

                              (SECTION 32)

Appropriations, 2012....................................     $20,056,000
Budget estimate, 2013...................................      20,056,000
Committee recommendation................................      20,056,000

    Under section 32 of the Act of August 24, 1935, (7 U.S.C. 
612c), an amount equal to 30 percent of customs receipts 
collected during each preceding calendar year and unused 
balances are available for encouraging the domestic consumption 
and exportation of agricultural commodities. An amount equal to 
30 percent of receipts collected on fishery products is 
transferred to the Department of Commerce. Additional transfers 
to the child nutrition programs of the Food and Nutrition 
Service have been provided in recent appropriations Acts.
    The following table reflects the status of this fund for 
fiscal years 2011-2013:

               ESTIMATED TOTAL FUNDS AVAILABLE AND BALANCE CARRIED FORWARD--FISCAL YEARS 2011-2013
----------------------------------------------------------------------------------------------------------------
                                          Fiscal year 2011  Fiscal year 2012  Fiscal year 2013  Fiscal year 2013
                                                actual           estimate           budget           estimate
----------------------------------------------------------------------------------------------------------------
Appropriation (30 percent of Customs        $6,605,945,807    $7,947,045,940    $8,990,116,825    $8,990,116,825
 Receipts)..............................
Less Transfers:
    Food and Nutrition Service..........    -5,277,574,000    -6,676,207,143    -7,618,053,213    -7,618,053,213
    Commerce Department.................       -90,239,555      -109,098,387      -124,063,612      -124,063,612
                                         -----------------------------------------------------------------------
      Total, Transfers..................    -5,367,813,555    -6,785,305,530    -7,742,116,825    -7,742,116,825
                                         =======================================================================
Prior Year Appropriation Available,            122,127,338       259,953,417       206,693,827       206,693,827
 Start of Year..........................
Prior Year Collections and Recoveries...        13,368,588  ................  ................  ................
Unavailable for Obligations (recoveries        -82,628,178       -73,693,827       -73,693,827       -73,693,827
 and offsetting collections)............
Transfer of Prior Year Funds to FNS            -76,000,000      -117,000,000      -133,000,000      -133,000,000
 [F&V]..................................
                                         -----------------------------------------------------------------------
    Budget Authority....................     1,215,000,000     1,231,000,000     1,248,000,000     1,248,000,000
    Rescission of Current Year Funds....  ................      -150,000,000  ................      -150,000,000
    Unavailable for Obligations (Fruit        -117,000,000      -133,000,000      -117,000,000      -117,000,000
     and Veg transfer to FNS)...........
                                         -----------------------------------------------------------------------
        Available for Obligation........     1,098,000,000       948,000,000     1,131,000,000       981,000,000
Less Obligations:
    Child Nutrition Programs                   465,000,000       465,000,000       465,000,000       465,000,000
     (Entitlement Commodities)..........
        12 Percent Commodity Floor               1,067,279  ................  ................  ................
         Requirement....................
    State Option Contract...............  ................         5,000,000         5,000,000         5,000,000
    Removal of Defective Commodities....  ................         2,500,000         2,500,000         2,500,000
    Emergency Surplus Removal...........        56,115,015         2,200,000  ................  ................
    Direct Payments:
        Cotton, Soybean, Rice and Sweet        268,000,000  ................  ................  ................
         Potato Disaster Program........
    Disaster Relief.....................         4,320,818         5,000,000         5,000,000         5,000,000
    Additional Fruits, Vegetables, and         157,214,025       175,600,000       206,000,000       206,000,000
     Nuts Purchases.....................
    Fresh Fruit and Vegetable Program...        33,000,000        20,000,000        39,076,000        39,076,000
    Accounting Adjustment...............           140,610  ................  ................  ................
    Estimated Future Needs..............  ................       224,913,000       360,637,000       210,637,000
                                         -----------------------------------------------------------------------
      Total, Commodity Procurement......       984,857,747       900,213,000     1,083,213,000       933,213,000
                                         =======================================================================
Administrative Funds:
    Commodity Purchase Support..........        33,538,305        27,731,000        27,731,000        27,731,000
    Marketing Agreements and Orders.....        19,278,709        20,056,000        20,056,000        20,056,000
                                         -----------------------------------------------------------------------
      Total, Administrative Funds.......        52,817,014        47,787,000        47,787,000        47,787,000
                                         =======================================================================
      Total Obligations.................     1,037,674,761       948,000,000     1,131,000,000       981,000,000
                                         =======================================================================
Unobligated Balance, End of Year........        60,325,239  ................  ................  ................
Unavailable for Obligations (Fruit and         117,000,000       133,000,000       117,000,000       117,000,000
 Vegetable transfer to FNS).............
Balances, Collections and Recoveries Not        82,628,178        73,693,827        73,693,827        73,693,827
 Available..............................
                                         -----------------------------------------------------------------------
      Total End of Year Balances........       259,953,417       206,693,827       190,693,827       190,693,827
----------------------------------------------------------------------------------------------------------------

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends a transfer from section 32 funds 
of $20,056,000 for the formulation and administration of 
marketing agreements and orders.
    Section 32 Authorities.--Under the authority described in 
clause 3 of 7 U.S.C. 612c, the Secretary is able to direct 
funds from the section 32 account to increase the purchasing 
power of producers. This practice has been used on various 
occasions to provide direct assistance to producers when market 
forces or natural conditions adversely affect the financial 
condition of farmers and ranchers. The Committee notes the 
importance of the ability of the Secretary to utilize this 
authority, but believes that communication between the 
Department and the Congress should be improved when this 
practice is used. Therefore, the Committee directs the 
Secretary to provide notification to the Appropriations 
Committee in advance of any public announcement or release of 
section 32 funds under the specific authorities cited above.

                   PAYMENTS TO STATES AND POSSESSIONS

Appropriations, 2012....................................      $1,198,000
Budget estimate, 2013...................................       1,331,000
Committee recommendation................................       1,331,000

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

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $1,331,000 for 
Payments to States and Possessions for Federal-State marketing 
projects and activities.

        Grain Inspection, Packers and Stockyards Administration


                         SALARIES AND EXPENSES

Appropriations, 2012....................................     $37,750,000
Budget estimate, 2013...................................      40,261,000
Committee recommendation................................      40,261,000

    The Grain Inspection, Packers and Stockyards Administration 
[GIPSA] was established pursuant to the Secretary's 1994 
reorganization. Grain inspection and weighing programs are 
carried out under the U.S. Grain Standards Act (7 U.S.C. 71 et 
seq.) and other programs under the authority of the 
Agricultural Marketing Act of 1946, including the inspection 
and grading of rice and grain-related products; conducting 
official weighing and grain inspection activities; and grading 
dry beans and peas, and processed grain products. Under the 
Packers and Stockyards Act (7 U.S.C. 181 et seq.), assurance of 
the financial integrity of the livestock, meat, and poultry 
markets is provided. The Administration monitors competition in 
order to protect producers, consumers, and industry from 
deceptive and fraudulent practices which affect meat and 
poultry prices.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $40,261,000 
for salaries and expenses of the Grain Inspection, Packers and 
Stockyards Administration.

        LIMITATION ON INSPECTION AND WEIGHING SERVICES EXPENSES

Limitation, 2012........................................     $49,000,000
Budget limitation, 2013.................................      50,000,000
Committee recommendation................................      50,000,000

    The agency provides an official grain inspection and 
weighing system under the U.S. Grain Standards Act [USGSA], and 
official inspection of rice and grain-related products under 
the Agricultural Marketing Act [AMA] of 1946. The USGSA was 
amended in 1981 to require the collection of user fees to fund 
the costs associated with the operation, supervision, and 
administration of Federal grain inspection and weighing 
activities.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends a limitation of $50,000,000 on 
inspection and weighing services expenses.

             Office of the Under Secretary for Food Safety

Appropriations, 2012....................................        $770,000
Budget estimate, 2013...................................         811,000
Committee recommendation................................         811,000

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

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $811,000 for 
the Office of the Under Secretary for Food Safety.

                   Food Safety and Inspection Service

Appropriations, 2012....................................  $1,004,427,000
Budget estimate, 2013...................................     995,503,000
Committee recommendation................................   1,001,427,000

    The major objectives of the Food Safety and Inspection 
Service are to assure that meat and poultry products are 
wholesome, unadulterated, and properly labeled and packaged, as 
required by the Federal Meat Inspection Act (21 U.S.C. 601 et 
seq.) and the Poultry Products Inspection Act (21 U.S.C. 451 et 
seq.); and to provide continuous in-plant inspection to egg 
processing plants under the Egg Products Inspection Act.
    The Food Safety and Inspection Service was established on 
June 17, 1981, by Secretary's Memorandum No. 1000-1, issued 
pursuant to Reorganization Plan No. 2 of 1953.
    The inspection program of the Food Safety and Inspection 
Service provides continuous in-plant inspection of all domestic 
plants preparing meat, poultry or egg products for sale or 
distribution; reviews foreign inspection systems and 
establishments that prepare meat or poultry products for export 
to the United States; and provides technical and financial 
assistance to States which maintain meat and poultry inspection 
programs.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $1,001,427,000 
for the Food Safety and Inspection Service [FSIS]. This 
includes requested funding for time clocks. Furthermore, the 
Committee finds the implementation schedule set forth by FSIS 
for revised inspections processes unrealistically rapid and 
provides additional funds to accomplish this transition in a 
more feasible manner.
    Codex Alimentarius.--Codex Alimentarius is critical for the 
protection of consumer health globally and facilitating 
international trade. Therefore, the Committee recommends 
$3,752,000 exclusively for the activities of the U.S. Codex 
office including international outreach and education.
    Humane Slaughter.--The Committee directs FSIS to continue 
to provide annual reports to the Committee on the 
implementation of objective scoring methods undertaken by FSIS 
to enforce the Humane Methods of Slaughter Act.
    The Committee also directs FSIS to ensure that personnel 
hired with funding previously provided specifically for Humane 
Methods of Slaughter Act enforcement focus their attention on 
overseeing compliance with humane handling rules for live 
animals as they arrive and are offloaded and handled in pens, 
chutes, and stunning areas.
    Inspections.--The Committee supports implementation of 
section 11016 of Public Law 110-246, and directs USDA to meet 
its statutory obligation and promulgate final regulations to 
implement this section.
    The following table represents the Committee's specific 
recommendations for the Food Safety and Inspection Service as 
compared to the fiscal year 2012 and budget request levels:

                            FOOD SAFETY AND INSPECTION SERVICE SALARIES AND EXPENSES
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                    Fiscal year
                                                                    Fiscal year     2013 budget      Committee
                                                                   2012 enacted       request     recommendation
----------------------------------------------------------------------------------------------------------------
Food safety inspection:
    Federal.....................................................         887,520         878,596         884,520
    State.......................................................          62,734          62,734          62,734
    International...............................................          15,841          15,841          15,841
    Codex Alimentarius..........................................           3,752           3,752           3,752
    PHDCIS......................................................          34,580          34,580          34,580
                                                                 -----------------------------------------------
      Total.....................................................       1,004,427         995,503       1,001,427
----------------------------------------------------------------------------------------------------------------

    Office of the Under Secretary for Farm and Foreign Agricultural 
                                Services

Appropriations, 2012....................................        $848,000
Budget estimate, 2013...................................         893,000
Committee recommendation................................         893,000

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

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $893,000 for 
the Office of the Under Secretary for Farm and Foreign 
Agricultural Services.

                          Farm Service Agency

    The Farm Service Agency [FSA] was established October 3, 
1994, pursuant to the Federal Crop Insurance Reform and 
Department of Agriculture Reorganization Act of 1994, Public 
Law 103-354. The FSA administers a variety of activities, such 
as the commodity price support and production adjustment 
programs financed by the Commodity Credit Corporation; the 
Conservation Reserve Program [CRP]; the Emergency Conservation 
Program; the Commodity Operation Programs including the 
warehouse examination function; farm ownership, farm operating, 
emergency disaster, and other loan programs; and the Noninsured 
Crop Disaster Assistance Program [NAP], which provides crop 
loss protection for growers of many crops for which crop 
insurance is not available. In addition, FSA currently provides 
certain administrative support services to the Foreign 
Agricultural Service [FAS] and to the Risk Management Agency 
[RMA].

                         SALARIES AND EXPENSES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                 Transfers from    Total, FSA,
                                                                Appropriations      program        salaries and
                                                                                    accounts         expenses
----------------------------------------------------------------------------------------------------------------
Appropriations, 2012.........................................        1,198,966          292,583        1,491,549
Budget estimate, 2013........................................        1,208,290          308,137        1,516,427
Committee recommendation.....................................        1,208,290          308,137        1,516,427
----------------------------------------------------------------------------------------------------------------

    The account Salaries and Expenses, Farm Service Agency, 
funds the administrative expenses of program administration and 
other functions assigned to FSA. The funds consist of 
appropriations and transfers from the CCC export credit 
guarantees, Food for Peace loans, and Agricultural Credit 
Insurance Fund program accounts, and miscellaneous advances 
from other sources. All administrative funds used by FSA are 
consolidated into one account. The consolidation provides 
clarity and better management and control of funds, and 
facilitates accounting, fiscal, and budgetary work by 
eliminating the necessity for making individual allocations and 
allotments and maintaining and recording obligations and 
expenditures under numerous separate accounts.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $1,516,427,000 
for salaries and expenses of the Farm Service Agency, including 
a direct appropriation of $1,208,290,000.
    Information Technology.--The Committee remains aware of the 
unstable status of the Farm Service Agency computer system 
which is responsible for the calculation and tracking of the 
agency's payments to agricultural producers, and which has 
resulted in disruption of services to U.S. farmers and 
ranchers. The Committee recommendation includes resources to 
continue the progress made regarding information technology 
modernization.
    National Agriculture Imagery Program.--The Committee 
recommends that funding shall be allocated to purchase imagery 
products to meet programmatic requirements.

                         STATE MEDIATION GRANTS

Appropriations, 2012....................................      $3,759,000
Budget estimate, 2013...................................       4,369,000
Committee recommendation................................       4,369,000

    This program is authorized under title V of the 
Agricultural Credit Act of 1987 (7 U.S.C. 5101 et seq.). 
Originally designed to address agricultural credit disputes, 
the program was expanded by the Federal Crop Insurance Reform 
and Department of Agriculture Reorganization Act of 1994 
(Public Law 103-354) to include other agricultural issues such 
as wetland determinations, conservation compliance, rural water 
loan programs, grazing on National Forest System lands, and 
pesticides. Grants are made to States whose mediation programs 
have been certified by the FSA. Grants will be solely for 
operation and administration of the State's agricultural 
mediation program.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $4,369,000 for 
State Mediation Grants.

               GRASSROOTS SOURCE WATER PROTECTION PROGRAM

Appropriations, 2012....................................      $3,817,000
Budget estimate, 2013...................................................
Committee recommendation................................       6,500,000

    This program is intended to assist in the protection of 
groundwater through State rural water associations.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $6,500,000 for 
Grassroots Source Water Protection.

                        DAIRY INDEMNITY PROGRAM

Appropriations, 2012\1\.................................        $100,000
Budget estimate, 2013\1\................................         100,000
Committee recommendation\1\.............................         100,000

\1\Current estimate. Such sums as may be necessary are provided.

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

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of such sums as 
may be necessary, estimated in fiscal year 2013 to be $100,000, 
for indemnity payments to dairy farmers.

           AGRICULTURAL CREDIT INSURANCE FUND PROGRAM ACCOUNT

    The Agricultural Credit Insurance Fund Program Account is 
used to provide direct and guaranteed farm ownership, farm 
operating, conservation, Indian highly fractioned land, and 
emergency loans to individuals, as well as the following types 
of loans to associations: irrigation and drainage, grazing, 
Indian tribe land acquisition, and boll weevil eradication.
    FSA is also authorized to provide financial assistance to 
borrowers by guaranteeing loans made by private lenders having 
a contract of guarantee from FSA as approved by the Secretary 
of Agriculture and to establish Beginning Farmer and Rancher 
Individual Development grant accounts.
    The following programs are financed through this fund:
    Boll Weevil Eradication Loans.--Made to assist foundations 
in financing the operations of the boll weevil eradication 
programs provided to farmers.
    Credit Sales of Acquired Property.--Property is sold out of 
inventory and is made available to an eligible buyer by 
providing FSA loans.
    Emergency Loans.--Made to producers to aid recovery from 
production and physical losses due to drought, flooding, other 
natural disasters, or quarantine. The loans may be used to: 
restore or replace essential property; pay all or part of 
production costs associated with the disaster year; pay 
essential family living expenses; reorganize the farming 
operation; and refinance certain debts.
    Farm Operating Loans.--Provide short-to-intermediate term 
production or chattel credit to farmers who cannot obtain 
credit elsewhere, to improve their farm and home operations, 
and to develop or maintain a reasonable standard of living. The 
term of the loan varies from 1 to 7 years.
    Farm Ownership Loans.--Made to borrowers who cannot obtain 
credit elsewhere to restructure their debts, improve or 
purchase farms, refinance nonfarm enterprises which supplement 
but do not supplant farm income, or make additions to farms. 
Loans are made for 40 years or less.
    Indian Tribe Land Acquisition Loans.--Made to any Indian 
tribe recognized by the Secretary of the Interior or tribal 
corporation established pursuant to the Indian Reorganization 
Act (Public Law 93-638) which does not have adequate 
uncommitted funds to acquire lands or interest in lands within 
the tribe's reservation or Alaskan Indian community, as 
determined by the Secretary of the Interior, for use of the 
tribe or the corporation or the members thereof.
    Indian Highly Fractionated Land Loans.--Made to Indian 
tribal members to purchase highly fractionated lands, as 
authorized by the Food, Conservation, and Energy Act of 2008.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends a total loan level of 
$4,821,747,000 for programs within the Agricultural Credit 
Insurance Fund Program Account.
    The following table reflects the program levels for farm 
credit programs administered by the Farm Service Agency 
recommended by the Committee, as compared to the fiscal year 
2012 and the budget request levels:

                                    AGRICULTURAL CREDIT PROGRAMS--LOAN LEVELS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Fiscal year      Fiscal year       Committee
                                                                 2012 enacted     2013 budget     recommendation
----------------------------------------------------------------------------------------------------------------
Farm ownership:
    Direct...................................................          475,000          475,000          475,000
    Guaranteed...............................................        1,500,000        1,500,000        1,500,000
Farm Operating:
    Direct...................................................        1,050,090        1,050,089        1,050,089
    Guaranteed unsubsidized..................................        1,500,000        1,500,000        1,500,000
Emergency loans..............................................  ...............           34,658           34,658
Indian Tribe Land Acquisition................................            2,000            2,000            2,000
Conservation Loans:
    Guaranteed...............................................          150,000          150,000          150,000
Indian Highly Fractionated Land Loans........................           10,000           10,000           10,000
Boll Weevil Eradication......................................          100,000           60,000          100,000
                                                              --------------------------------------------------
      Total, Farm loans......................................        4,787,090        4,781,747        4,821,747
----------------------------------------------------------------------------------------------------------------

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                    Committee
                                                                 2012 enacted     2013 budget     recommendation
----------------------------------------------------------------------------------------------------------------
Loan subsidies:
    Farm ownership:
        Direct...............................................           22,800           20,140           20,140
    Farm operating:
        Direct...............................................           59,120           58,490           58,490
        Guaranteed unsubsidized..............................           26,100           17,850           17,850
    Emergency loans..........................................  ...............            1,317            1,317
    Indian Highly Fractionated Land Loans....................              193              173              173
    Individual Development Accounts..........................  ...............            2,500  ...............
                                                              --------------------------------------------------
      Total, loan subsidies..................................          108,213          100,470           97,970
                                                              ==================================================
ACIF expenses................................................          297,632          312,897          312,897
----------------------------------------------------------------------------------------------------------------

                         Risk Management Agency

Appropriations, 2012....................................     $74,900,000
Budget estimate, 2013...................................      74,900,000
Committee recommendation................................      74,900,000

    The Risk Management Agency performs administrative 
functions relative to the Federal crop insurance program that 
is authorized by the Federal Crop Insurance Act (7 U.S.C. 
1508), as amended by the Agricultural Risk Protection Act of 
2000 [ARPA], Public Law 106-224, and the Food, Conservation, 
and Energy Act of 2008 (Public Law 110-246).
    ARPA authorized significant changes in the crop insurance 
program. This act provides higher government subsidies for 
producer premiums to make coverage more affordable; expands 
research and development for new insurance products and under-
served areas through contracts with the private sector; and 
tightens compliance. Functional areas of risk management are: 
research and development; insurance services; and compliance, 
whose functions include policy formulation and procedures and 
regulations development.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $74,900,000 
for the Risk Management Agency.
    Standard Reinsurance Agreement.--The Committee recognizes 
the economic impact that the newly reached Standard Reinsurance 
Agreement has had on the crop insurance program, particularly 
with regard to Administration and Operating costs. The 
Committee directs the Secretary to provide a report detailing 
the distribution of reductions on a State-by-State basis and 
its overall effects on the administration of the crop insurance 
program.

                              CORPORATIONS


                Federal Crop Insurance Corporation Fund

Appropriations, 2012\1\.................................  $3,142,375,000
Budget estimate, 2013\1\................................   9,517,433,000
Committee recommendation\1\.............................   9,517,433,000

\1\Current estimate. Such sums as may be necessary, to remain available 
until expended, are provided.

    The Federal Crop Insurance Act, as amended by the Federal 
Crop Insurance Reform Act of 1994, authorizes the payment of 
expenses which may include indemnity payments, loss adjustment, 
delivery expenses, program-related research and development, 
startup costs for implementing this legislation such as 
studies, pilot projects, data processing improvements, public 
outreach, and related tasks and functions.
    All program costs, except for Federal salaries and 
expenses, are mandatory expenditures subject to appropriation.
    Producers of insurable crops are eligible to receive a 
basic level of protection against catastrophic losses, which 
cover 50 percent of the normal yield at 55 percent of the 
expected price. The only cost to the producer is an 
administrative fee of $300 per crop per county.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of such sums as 
may be necessary, estimated to be $9,517,433,000 in fiscal year 
2013 for the Federal Crop Insurance Corporation Fund.

                   Commodity Credit Corporation Fund

    The Commodity Credit Corporation [CCC] is a wholly owned 
Government corporation created in 1933 to stabilize, support, 
and protect farm income and prices; to help maintain balanced 
and adequate supplies of agricultural commodities, including 
products, foods, feeds, and fibers; and to help in the orderly 
distribution of these commodities. CCC was originally 
incorporated under a Delaware charter and was reincorporated 
June 30, 1948, as a Federal corporation within the Department 
of Agriculture by the Commodity Credit Corporation Charter Act, 
approved June 29, 1948 (15 U.S.C. 714).
    The Commodity Credit Corporation engages in buying, 
selling, lending, and other activities with respect to 
agricultural commodities, their products, food, feed, and 
fibers. Its purposes include stabilizing, supporting, and 
protecting farm income and prices; maintaining the balance and 
adequate supplies of selected commodities; and facilitating the 
orderly distribution of such commodities. In addition, the 
Corporation makes available materials and facilities required 
in connection with the storage and distribution of such 
commodities. The Corporation also disburses funds for sharing 
of costs with producers for the establishment of approved 
conservation practices on environmentally sensitive land and 
subsequent rental payments for such land for the duration of 
Conservation Reserve Program contracts.
    Corporation activities are primarily governed by the 
following statutes: the Commodity Credit Corporation Charter 
Act (Public Law 80-806), as amended; the Agricultural Act of 
1949 (Public Law 81-439), as amended (1949 Act); the 
Agricultural Adjustment Act of 1938 (Public Law 75-430), as 
amended (the 1938 Act); the Food Security Act of 1985 (Public 
Law 99-198), as amended (1985 Act); and the Food, Conservation, 
and Energy Act of 2008 (Public Law 110-246).
    Management of the Corporation is vested in a board of 
directors, subject to the general supervision and direction of 
the Secretary of Agriculture, who is an ex officio director and 
chairman of the board. The board consists of seven members, in 
addition to the Secretary, who are appointed by the President 
of the United States with the advice and consent of the Senate. 
Officers of the Corporation are designated according to their 
positions in the Department of Agriculture.
    The activities of the Corporation are carried out mainly by 
the personnel and through the facilities of the Farm Service 
Agency [FSA] and the Farm Service Agency State and county 
committees. The Foreign Agricultural Service, the General Sales 
Manager, other agencies and offices of the Department, and 
commercial agents are also used to carry out certain aspects of 
the Corporation's activities.
    Under Public Law 87-155 (15 U.S.C. 713a-11, 713a-12), 
annual appropriations are authorized for each fiscal year, 
commencing with fiscal year 1961. These appropriations are to 
reimburse the Corporation for net realized losses.

                 REIMBURSEMENT FOR NET REALIZED LOSSES

Appropriations, 2012\1\................................. $14,071,000,000
Budget estimate, 2013\1\................................  11,018,509,000
Committee recommendation\1\.............................  11,018,509,000

\1\Current estimate. Such sums as may be necessary are provided.
---------------------------------------------------------------------------

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of such sums as 
may be necessary, estimated in fiscal year 2013 to be 
$11,018,509,000, for the payment to reimburse the Commodity 
Credit Corporation for net realized losses.

                       HAZARDOUS WASTE MANAGEMENT

Limitation, 2012........................................      $5,000,000
Budget estimate, 2013...................................       5,000,000
Committee recommendation................................       5,000,000

    The Commodity Credit Corporation's [CCC] hazardous waste 
management program is intended to ensure compliance with the 
Comprehensive Environmental Response, Compensation, and 
Liability Act (42 U.S.C. 9601 et seq.) and the Resource 
Conservation and Recovery Act (42 U.S.C. 6901 et seq.). The CCC 
funds operations and maintenance costs as well as site 
investigation and cleanup expenses. Investigative and cleanup 
costs associated with the management of CCC hazardous waste are 
also paid from USDA's hazardous waste management appropriation.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends a limitation of $5,000,000 for the 
Commodity Credit Corporation's hazardous waste management 
program.

                                TITLE II

                         CONSERVATION PROGRAMS

  Office of the Under Secretary for Natural Resources and Environment

Appropriations, 2012....................................        $848,000
Budget estimate, 2013...................................         893,000
Committee recommendation................................         893,000

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

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $893,000 for 
the Office of the Under Secretary for Natural Resources and 
Environment.
    Watershed Projects.--The Committee reminds the Natural 
Resources Conservation Service [NRCS] that there are currently 
authorized, ongoing watershed projects with a primary purpose 
of providing drinking water to communities. The Committee 
directs NRCS to continue providing technical assistance to 
these projects, subject to the availability of funds.

                 Natural Resources Conservation Service

    The Natural Resources Conservation Service [NRCS] was 
established pursuant to Public Law 103-354, the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 6962). The 
NRCS works with conservation districts, watershed groups, and 
Federal and State agencies to bring about physical adjustments 
in land use that will conserve soil and water resources, 
provide for agricultural production on a sustained basis, and 
reduce flood damage and sedimentation.

                        conservation operations

Appropriations, 2012....................................    $828,159,000
Budget estimate, 2013...................................     827,500,000
Committee recommendation................................     828,498,000

    Conservation operations are authorized by Public Law 74-46 
(16 U.S.C. 590a-590f). Activities include:
    Conservation Technical Assistance provides assistance to 
district cooperators and other land users in the planning and 
application of conservation treatments to control erosion and 
improve the quantity and quality of soil resources, improve and 
conserve water, enhance fish and wildlife habitat, conserve 
energy, improve woodland, pasture and range conditions, and 
reduce upstream flooding; all to protect and enhance the 
natural resource base.
    Resource appraisal and program development ensures that 
programs administered by the Secretary of Agriculture for the 
conservation of soil, water, and related resources shall 
respond to the Nation's long-term needs.
    Plant Materials Centers assemble, test, and encourage 
increased use of plant species which show promise for use in 
the treatment of conservation problem areas.
    Snow Survey and Water Forecasting provides estimates of 
annual water availability from high mountain snow packs and 
relates to summer stream flow in the Western States and Alaska. 
Information is used by agriculture, industry, and cities in 
estimating future water supplies.
    Soil Surveys inventory the Nation's basic soil resources 
and determine land capabilities and conservation treatment 
needs. Soil survey publications include interpretations useful 
to cooperators, other Federal agencies, State, and local 
organizations.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $828,498,000 
for Conservation Operations.

                    WATERSHED REHABILITATION PROGRAM

Appropriations, 2012....................................     $15,000,000
Budget estimate, 2013...................................................
Committee recommendation................................................

    The watershed rehabilitation program account provides for 
technical and financial assistance to carry out rehabilitation 
of structural measures, in accordance with section 14 of the 
Watershed Protection and Flood Prevention Act, approved August 
4, 1954 (16 U.S.C. 1012, U.S.C. 1001, et seq.), as amended by 
section 313 of Public Law 106-472, November 9, 2000, and by 
section 2803 of Public Law 110-246.

                       COMMITTEE RECOMMENDATIONS

    The Committee does not recommend an appropriation for the 
Watershed Rehabilitation Program.

                               TITLE III

                       RURAL DEVELOPMENT PROGRAMS

    The Federal Crop Insurance Reform and Department of 
Agriculture Reorganization Act of 1994 (Public Law 103-354) 
abolished the Farmers Home Administration, Rural Development 
Administration, and Rural Electrification Administration and 
replaced those agencies with the Rural Housing and Community 
Development Service, (currently, the Rural Housing Service), 
Rural Business and Cooperative Development Service (currently, 
the Rural Business--Cooperative Service), and Rural Utilities 
Service and placed them under the oversight of the Under 
Secretary for Rural Economic and Community Development, 
(currently, Rural Development). These agencies deliver a 
variety of programs through a network of State, district, and 
county offices.

          Office of the Under Secretary for Rural Development

Appropriations, 2012....................................        $848,000
Budget estimate, 2013...................................         893,000
Committee recommendation................................         893,000

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

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $893,000 for 
the Office of the Under Secretary for Rural Development.
    Biofuels.--The Committee encourages the Secretary, as a co-
chair of the Biofuels Interagency Working Group, to facilitate 
discussion among stakeholders to explore public outreach 
opportunities that will help prevent misfueling in engines not 
covered under EPA's E15 waivers.

                                     RURAL DEVELOPMENT SALARIES AND EXPENSES
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                         Fiscal year--
                                                              ----------------------------------    Committee
                                                                     2012         2013 budget     recommendation
                                                                appropriation       request
----------------------------------------------------------------------------------------------------------------
Appropriation................................................          182,023          206,857          206,857
Transfer from:
    Rural Housing Insurance Fund Loan Program Account........          430,800          408,127          410,627
    Rural Electrification and Telecommunications Program                36,382           34,467           34,467
     Account.................................................
    Rural Development Loan Fund Program Account..............            4,684            4,438            4,438
                                                              --------------------------------------------------
      Total Rural Development salaries and expenses..........          653,889          653,889          656,389
----------------------------------------------------------------------------------------------------------------

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

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends $656,389,000 for salaries and 
expenses of Rural Development.

                         Rural Housing Service

    The Rural Housing Service [RHS] was established under the 
Federal Crop Insurance Reform and Department of Agriculture 
Reorganization Act of 1994, dated October 13, 1994.

              RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

Appropriations, 2012 (budget authority).................    $510,991,000
Budget estimate, 2013 (budget authority)................     468,444,000
Committee recommendation (budget authority).............     495,704,000

    This fund was established in 1965 (Public Law 89-117) 
pursuant to section 517 of title V of the Housing Act of 1949 
(42 U.S.C. 517(d)), as amended. This fund may be used to insure 
or guarantee rural housing loans for single-family homes, 
rental and cooperative housing, farm labor housing, and rural 
housing sites. Rural housing loans are made to construct, 
improve, alter, repair, or replace dwellings and essential farm 
service buildings that are modest in size, design, and cost. 
Rental housing insured loans are made to individuals, 
corporations, associations, trusts, or partnerships to provide 
low-cost rental housing and related facilities in rural areas. 
These loans are repayable in terms up to 30 years. Loan 
programs are limited to rural areas, which include towns, 
villages, and other places of not more than 10,000 population, 
which are not part of an urban area. Loans may also be made in 
areas with a population in excess of 10,000, but less than 
20,000, if the area is not included in a standard metropolitan 
statistical area and has a serious lack of mortgage credit for 
low- and moderate-income borrowers.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $495,704,000 
for the Rural Housing Insurance Fund Program Account [RHIF].
    The Federal Credit Reform Act of 1990 (Public Law 101-508) 
established the RHIF program account. Appropriations to this 
account will be used to cover the lifetime subsidy costs 
associated with the direct loans obligated and loan guarantees 
committed in 2013, as well as for administrative expenses. The 
following table presents the loan subsidy levels as compared to 
the 2012 levels and the 2013 budget request:

                                  RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Fiscal year
                                                                     2012         2013 budget       Committee
                                                                appropriation       request       recommendation
----------------------------------------------------------------------------------------------------------------
Loan Levels:
    Single-Family Housing (sec. 502):
        Direct...............................................          900,000          652,764          900,000
        Guaranteed...........................................       24,000,000       24,000,000       24,000,000
    Housing Repair (sec. 504)................................           10,000           27,952           27,952
    Direct rental housing (sec. 515).........................           64,478  ...............           28,433
    Guaranteed rental housing (sec. 538).....................          130,000          150,000          150,000
    Credit sales of acquired property........................           10,000  ...............           10,000
    Self help land development loans (sec. 523)..............            5,000  ...............            5,000
    Farm labor housing loans (sec. 514)......................           20,791           25,969           25,969
                                                              --------------------------------------------------
      Total, loan levels.....................................       25,140,269       24,856,685       25,147,354
                                                              ==================================================
Loan Subsidies and Grants:
    Single-Family Housing (sec. 502):
        Direct...............................................           42,570           38,970           53,730
    Housing Repair (sec. 504)................................            1,421            3,821            3,821
    Direct rental housing (sec. 515).........................           22,000  ...............           10,000
    Farm labor housing loans (sec. 514)......................            7,100            8,658            8,658
    Farm labor housing grants (sec. 516).....................            7,100            8,868            8,868
                                                              --------------------------------------------------
      Total, loan subsidies and grants.......................           80,191           60,317           85,077
                                                              ==================================================
Administrative expenses......................................          430,800          408,127          410,627
                                                              ==================================================
      Total, loan subsidies, grants and administrative ex-             510,991          468,444          495,704
       penses................................................
----------------------------------------------------------------------------------------------------------------

    Centralized Servicing Center.--The Secretary is encouraged 
to explore opportunities to provide services to other Federal 
agencies, through Economy Act Agreements, and thereby leverage 
existing capacity and expertise at Rural Development's 
Centralized Servicing Center.
    Section 538 Guaranteed Multi-Family Housing Loan Program.--
The Committee no longer prohibits utilization of authorized 
fees, and expects the Secretary to implement fees sufficient to 
cover program subsidy costs.
    Section 502 Direct Loan Program.--The Committee is 
concerned that administration of the 502 direct loan program 
may be inhibiting applications from low-income applicants in 
its efforts to serve the very low income population. The 
Secretary is directed to consider alternative administrative 
procedures, including distribution of funds to state offices 
and implementing a point-based system that would prioritize 
applications from very low income applicants. The Secretary 
shall provide a report to the Committee by September 30, 2012, 
on this review and the implications on lending to low income 
and very low income populations.

                       RENTAL ASSISTANCE PROGRAM

Appropriations, 2012....................................    $904,653,000
Budget estimate, 2013...................................     907,128,000
Committee recommendation................................     907,128,000

    Rental assistance is authorized under section 521(a)(2) of 
the Housing Act of 1949, as amended (42 U.S.C. 1490a). The 
objective of the program is to reduce rents paid by low-income 
families living in Rural Housing Service financed rental 
projects and farm labor housing projects. Under this program, 
low-income tenants will contribute the higher of: (1) 30 
percent of monthly adjusted income; (2) 10 percent of monthly 
income; or (3) designated housing payments from a welfare 
agency.
    Payments from the fund are made to the project owner for 
the difference between the tenant's payment and the approved 
rental rate established for the unit.
    The program is administered in tandem with Rural Housing 
Service section 515 rural rental and cooperative housing 
programs and the farm labor loan and grant programs. Priority 
is given to existing projects for units occupied by rent over-
burdened low-income families and projects experiencing 
financial difficulties beyond the control of the owner; any 
remaining authority will be used for projects receiving new 
construction commitments under sections 514, 515, or 516 for 
very low-income families with certain limitations.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $907,128,000 
for the Rental Assistance Program.
    Rental Assistance.--The Committee includes statutory 
language requiring rental assistance to be held in 514/516 
projects for a minimum period of time. Rental assistance 
contracts are funded for 1-year durations.

          MULTI-FAMILY HOUSING REVITALIZATION PROGRAM ACCOUNT

Appropriations, 2012....................................     $13,000,000
Budget estimate, 2013...................................      46,942,000
Committee recommendation................................      27,782,000

    The Rural Housing Voucher Program was authorized under the 
Housing Act of 1949 (42 U.S.C. 1940r) to assist very low income 
families and individuals who reside in rental housing in rural 
areas. Housing vouchers may be provided to residents of rental 
housing projects financed by section 515 loans that have been 
prepaid after September 30, 2005. Voucher amounts reflect the 
difference between comparable market rents and tenant-paid rent 
prior to loan prepayment. Vouchers allow tenants to remain in 
existing projects or move to other rental housing.
    The Multi-family Housing Revitalization Program includes 
funding for housing vouchers and a demonstration program for 
the preservation and revitalization of affordable multi-family 
housing projects. Rural Development's multi-family housing 
portfolio faces dual pressures for loan prepayments and repair/
rehabilitation stemming from inadequate reserves resulting in 
deferred property maintenance.
    Provision of affordable rental housing can be accomplished 
more economically by revitalizing existing housing stock rather 
than funding new construction. The Multi-family Housing 
Revitalization Program includes revitalization tools for 
maintenance of existing units and vouchers to protect tenants 
in those projects that prepay. Flexibility is provided to allow 
Rural Development to utilize funding to meet the most urgent 
local needs for tenant protection and project revitalization.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $27,782,000 
for the Multi-family Housing Revitalization Program, including 
$11,000,000 for vouchers and $16,782,000 for a housing 
preservation demonstration program.
    Affordable Rural Rental Housing.--The Committee is 
concerned that the Department's vision for its role in 
supporting affordable rural rental housing is out of focus. 
Section 515 direct loans were the centerpiece of the fiscal 
year 2012 President's budget, while the fiscal year 2013 
request eliminates that program. The revitalization pilot was 
eliminated in the fiscal year 2012 request. However, the fiscal 
year 2013 request increases the revitalization pilot by 361 
percent, and includes substantial funding for vouchers even 
with large unobligated balances. Proposed legislation is 
promised to permanently authorize the revitalization program, 
but no description of the proposed program is offered.
    The Committee directs the Secretary, conclusively, to 
determine and articulate an effective long-term strategy to 
address rural rental housing needs. The Committee continues to 
fund each of the rural rental housing program tools and 
provides increased flexibility to transfer funds. Finally, the 
Committee directs the Secretary to submit the proposed 
revitalization legislation as soon as possible.

                  MUTUAL AND SELF-HELP HOUSING GRANTS

Appropriations, 2012....................................     $30,000,000
Budget estimate, 2013...................................      10,000,000
Committee recommendation................................      30,000,000

    The Mutual and Self-Help Housing Grants Program is 
authorized by title V of the Housing Act of 1949. Grants are 
made to local organizations to promote the development of 
mutual or self-help programs under which groups of usually 6 to 
10 families build their own homes by mutually exchanging labor. 
Funds may be used to pay the cost of construction supervisors 
who work with families in the construction of their homes and 
for administrative expenses of the organizations providing the 
self-help assistance.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $30,000,000 
for Mutual and Self-Help Housing Grants.

                    rural housing assistance grants

Appropriations, 2012....................................     $33,136,000
Budget estimate, 2013...................................      28,216,000
Committee recommendation................................      33,136,000

    The Rural Housing Assistance Grants Program consolidates 
funding for rural housing grant programs. This consolidation of 
housing grant funding provides greater flexibility to tailor 
financial assistance to applicant needs.
    Very Low-Income Housing Repair Grants.--The Very Low-Income 
Housing Repair Grants Program is authorized under section 504 
of title V of the Housing Act of 1949. The rural housing repair 
grant program is carried out by making grants to very low-
income families to make necessary repairs to their homes in 
order to make such dwellings safe and sanitary, and remove 
hazards to the health of the occupants, their families, or the 
community.
    These grants may be made to cover the cost of improvements 
or additions, such as repairing roofs, providing toilet 
facilities, providing a convenient and sanitary water supply, 
supplying screens, repairing or providing structural supports 
or making similar repairs, additions, or improvements, 
including all preliminary and installation costs in obtaining 
central water and sewer service. A grant can be made in 
combination with a section 504 very low-income housing repair 
loan.
    No assistance can be extended to any one individual in the 
form of a loan, grant, or combined loans and grants in excess 
of $27,500, and grant assistance is limited to persons, or 
families headed by persons who are 62 years of age or older.
    Supervisory and Technical Assistance Grants.--Supervisory 
and technical assistance grants are made to public and private 
nonprofit organizations for packaging loan applications for 
housing assistance under sections 502, 504, 514/516, 515, and 
533 of the Housing Act of 1949. The assistance is directed to 
very low-income families in underserved areas where at least 20 
percent of the population is below the poverty level and at 
least 10 percent or more of the population resides in 
substandard housing. In fiscal year 1994 a Homebuyer Education 
Program was implemented under this authority. This program 
provides low-income individuals and families education and 
counseling on obtaining and/or maintaining occupancy of 
adequate housing and supervised credit assistance to become 
successful homeowners.
    Compensation for Construction Defects.--Compensation for 
construction defects provides funds for grants to eligible 
section 502 borrowers to correct structural defects, or to pay 
claims of owners arising from such defects on a newly 
constructed dwelling purchased with RHS financial assistance. 
Claims are not paid until provisions under the builder's 
warranty have been fully pursued. Requests for compensation for 
construction defects must be made by the owner of the property 
within 18 months after the date financial assistance was 
granted.
    Rural Housing Preservation Grants.--Rural housing 
preservation grants (section 533) of the Housing and Urban-
Rural Recovery Act of 1983 (42 U.S.C. 1490m) authorizes the 
Rural Housing Service to administer a program of home repair 
directed at low- and very low-income people.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $33,136,000 
for the Rural Housing Assistance Grants Program.
    The following table compares the grant program levels 
recommended by the Committee to the fiscal year 2012 levels and 
the budget request:

                                         RURAL HOUSING ASSISTANCE GRANTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                         Fiscal year--
                                                              ----------------------------------    Committee
                                                                  2012 level      2013 request    recommendation
----------------------------------------------------------------------------------------------------------------
Very low-income housing repair grants........................           29,500           28,216           29,500
Housing preservation grants..................................            3,636  ...............            3,636
                                                              --------------------------------------------------
      Total..................................................           33,136           28,216           33,136
----------------------------------------------------------------------------------------------------------------

               RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT

Appropriations, 2012....................................     $29,291,000
Budget estimate, 2013...................................      25,000,000
Committee recommendation................................      28,428,000

    Community facility loans were created by the Rural 
Development Act of 1972 (7 U.S.C. 1926 et seq.) to finance a 
variety of rural community facilities. Loans are made to 
organizations, including certain Indian tribes and corporations 
not operated for profit and public and quasi-public agencies, 
to construct, enlarge, extend, or otherwise improve community 
facilities providing essential services to rural residents. 
Such facilities include those providing or supporting overall 
community development, such as fire and rescue services, 
healthcare, transportation, traffic control, and community, 
social, cultural, and recreational benefits. Loans are made for 
facilities which primarily serve rural residents of open 
country and rural towns and villages of not more than 20,000 
people. Healthcare and fire and rescue facilities are the 
priorities of the program and receive the majority of available 
funds.
    The Community Facility Grant Program authorized in the 
Federal Agriculture Improvement and Reform Act of 1996 (Public 
Law 104-127), is used in conjunction with the existing direct 
and guaranteed loan programs for the development of community 
facilities, such as hospitals, fire stations, and community 
centers. Grants are targeted to the lowest income communities. 
Communities that have lower population and income levels 
receive a higher cost-share contribution through these grants, 
to a maximum contribution of 75 percent of the cost of 
developing the facility.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $28,428,000 
for the Rural Community Facilities Program Account.
    The following table provides the Committee's 
recommendations, as compared to the fiscal year 2012 and budget 
request levels:

                                   RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT
                           [Loan levels and budget authority in thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                   Fiscal year
                                                                      2012         2013 budget      Committee
                                                                  appropriation      request     recommendations
----------------------------------------------------------------------------------------------------------------
Loan levels:
    Community facilities direct loans..........................       1,300,000       2,000,000        2,000,000
    Community facilities guaranteed loans......................         105,708  ..............  ...............
                                                                ------------------------------------------------
      Total loan levels........................................       1,405,708       2,000,000        2,000,000
                                                                ================================================
Budget authority:
    Community facility guaranteed loans........................           5,000  ..............  ...............
    Community facility grants..................................          11,363          13,000           13,000
    Economic impact initiative grants..........................           5,938  ..............            5,938
    Rural community development initiative.....................           3,621           8,000            6,121
    Tribal college grants......................................           3,369           4,000            3,369
                                                                ------------------------------------------------
      Total budget authority...................................          29,291          25,000           28,428
----------------------------------------------------------------------------------------------------------------

                  Rural Business--Cooperative Service

    The Rural Business--Cooperative Service [RBS] was 
established by Public Law 103-354, Federal Crop Insurance 
Reform and Department of Agriculture Reorganization Act of 
1994, dated October 13, 1994. Its programs were previously 
administered by the Rural Development Administration, the Rural 
Electrification Administration, and the Agricultural 
Cooperative Service.

                     RURAL BUSINESS PROGRAM ACCOUNT

Appropriations, 2012....................................     $74,809,000
Budget estimate, 2013...................................      86,159,000
Committee recommendation................................      85,904,000

    The Rural Business and Industry Loan Program was created by 
the Rural Development Act of 1972, and finances a variety of 
rural industrial development loans. Loans are made for rural 
industrialization and rural community facilities under Rural 
Development Act amendments to the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932 et seq.) authorities. Business 
and industrial loans are made to public, private, or 
cooperative organizations organized for profit, to certain 
Indian tribes, or to individuals for the purpose of improving, 
developing or financing business, industry, and employment or 
improving the economic and environmental climate in rural 
areas. Such purposes include financing business and industrial 
acquisition, construction, enlargement, repair or 
modernization, financing the purchase and development of land, 
easements, rights-of-way, buildings, payment of startup costs, 
and supplying working capital.
    Rural business enterprise grants were authorized by the 
Rural Development Act of 1972. Grants are made to public bodies 
and nonprofit organizations to facilitate development of small 
and emerging business enterprises in rural areas, including the 
acquisition and development of land; the construction of 
buildings, plants, equipment, access streets and roads, parking 
areas, and utility extensions; refinancing fees; technical 
assistance; and startup operating costs and working capital.
    Rural business opportunity grants are authorized under 
section 306(a)(11) of the Consolidated Farm and Rural 
Development Act, as amended. Grants may be made to public 
bodies and private nonprofit community development corporations 
or entities. Grants are made to identify and analyze business 
opportunities that will use local rural economic and human 
resources: to identify, train, and provide technical assistance 
to rural entrepreneurs and managers; to establish business 
support centers; to conduct economic development planning and 
coordination, and leadership development; and to establish 
centers for training, technology, and trade that will provide 
training to rural businesses in the utilization of interactive 
communications technologies.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $85,904,000 
for the Rural Business Program Account.
    The following table provides the Committee's 
recommendations, as compared to the fiscal year 2012 and budget 
request levels:

                                         RURAL BUSINESS PROGRAM ACCOUNT
                           [Loan levels and budget authority in thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                   Fiscal year
                                                                      2012         2013 budget      Committee
                                                                  appropriation      request     recommendations
----------------------------------------------------------------------------------------------------------------
Loan levels:
    Business and Industry guaranteed loans loan levels.........         812,563         821,224          821,224
Budget authority:
    Business and industry guaranteed loans.....................          45,341          56,336           56,336
    Business enterprise grants.................................          24,318          29,823           24,318
    Business opportunity grants................................           2,250  ..............            2,250
    Delta Regional Authority grants............................           2,900  ..............            3,000
                                                                ------------------------------------------------
      Total budget authority...................................          74,809          86,159           85,904
----------------------------------------------------------------------------------------------------------------

    Rural Business Program Account.--The Committee recommends 
$500,000 for transportation technical assistance.
    The Committee directs that of the $4,000,000 recommended 
for grants to benefit Federally Recognized Native American 
Tribes, $250,000 shall be used to implement an American Indian 
and Alaska Native passenger transportation development and 
assistance initiative.

              RURAL DEVELOPMENT LOAN FUND PROGRAM ACCOUNT

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                         Fiscal year--
                                                              ----------------------------------    Committee
                                                                  2012 level      2013 request    recommendation
----------------------------------------------------------------------------------------------------------------
Estimated loan level.........................................           17,710           18,889           18,889
Direct loan subsidy..........................................            6,000            6,052            6,052
Administrative expenses......................................            4,684            4,438            4,438
                                                              --------------------------------------------------
      Total, loan subsidies and administrative expenses......           10,684           10,490           10,490
----------------------------------------------------------------------------------------------------------------

    The rural development (intermediary relending) loan program 
was originally authorized by the Economic Opportunity Act of 
1964 (Public Law 88-452). The making of rural development loans 
by the Department of Agriculture was reauthorized by Public Law 
99-425, the Human Services Reauthorization Act of 1986.
    Loans are made to intermediary borrowers (small investment 
groups) who in turn will reloan the funds to rural businesses, 
community development corporations, private nonprofit 
organizations, public agencies, et cetera, for the purpose of 
improving business, industry, community facilities, and 
employment opportunities and diversification of the economy in 
rural areas.
    The Federal Credit Reform Act of 1990 established the 
program account. Appropriations to this account will be used to 
cover the lifetime subsidy costs associated with the direct 
loans obligated in 2013, as well as for administrative 
expenses.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $10,490,000 
for the Rural Development Loan Fund Program Account.

            RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT

                        [In thousands of dollars]
------------------------------------------------------------------------
                                                          Estimated loan
                                                              level
------------------------------------------------------------------------
Fiscal year 2012 level.................................           33,077
Fiscal year 2013 request...............................           33,077
Committee recommendation...............................           33,077
------------------------------------------------------------------------

    The Rural Economic Development Loans program was 
established by the Reconciliation Act of December 1987 (Public 
Law 100-203), which amended the Rural Electrification Act of 
1936 (Act of May 20, 1936), by establishing a new section 313. 
This section of the Rural Electrification Act (7 U.S.C. 901) 
established a cushion of credits payment program and created 
the rural economic development subaccount. The Administrator of 
RUS is authorized under the act to utilize funds in this 
program to provide zero interest loans to electric and 
telecommunications borrowers for the purpose of promoting rural 
economic development and job creation projects, including 
funding for feasibility studies, startup costs, and other 
reasonable expenses for the purpose of fostering rural economic 
development.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a loan program level of 
$33,077,000, to be funded from earnings on the Cushion of 
Credit and fees on guaranteed underwriting loans made pursuant 
to section 313A of the Rural Electrification Act of 1936.

                  RURAL COOPERATIVE DEVELOPMENT GRANTS

Appropriations, 2012....................................     $25,050,000
Budget estimate, 2013...................................      27,706,000
Committee recommendation................................      27,706,000

    Rural cooperative development grants are authorized under 
section 310B(e) of the Consolidated Farm and Rural Development 
Act, as amended. Grants are made to fund the establishment and 
operation of centers for rural cooperative development with 
their primary purpose being the improvement of economic 
conditions in rural areas. Grants may be made to nonprofit 
institutions or institutions of higher education. Grants may be 
used to pay up to 75 percent of the cost of the project and 
associated administrative costs. The applicant must contribute 
at least 25 percent from non-Federal sources, except 1994 
institutions, which only need to provide 5 percent. Grants are 
competitive and are awarded based on specific selection 
criteria.
    Cooperative research agreements are authorized by 7 U.S.C. 
2204b. The funds are used for cooperative research agreements, 
primarily with colleges and universities, on critical 
operational, organizational, and structural issues facing 
cooperatives.
    Cooperative agreements are authorized under 7 U.S.C. 2201 
to any qualified State departments of agriculture, university, 
and other State entity to conduct research that will strengthen 
and enhance the operations of agricultural marketing 
cooperatives in rural areas.
    The Appropriate Technology Transfer for Rural Areas [ATTRA] 
program was first authorized by the Food Security Act of 1985. 
The program provides information and technical assistance to 
agricultural producers to adopt sustainable agricultural 
practices that are environmentally friendly and lower 
production costs.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $27,706,000 
for Rural Cooperative Development Grants.
    Of the funds recommended, $2,250,000 is for the Appropriate 
Technology Transfer for Rural Areas program.
    The Committee has included language in the bill that not 
more than $3,456,000 shall be made available to cooperatives or 
associations of cooperatives whose primary focus is to provide 
assistance to small, minority producers.
    Value Added.--The Committee recommends $15,000,000 for 
value-added agricultural product market development grants.

                RURAL MICROENTERPRISE INVESTMENT PROGRAM

Appropriations, 2012....................................................
Budget estimate, 2013...................................      $3,356,000
Committee recommendation................................................

    This program, authorized by section 379E of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1981 et 
seq.), provides loans and grants to intermediaries that assist 
micro-entrepreneurs.

                       COMMITTEE RECOMMENDATIONS

    The Committee does not recommend an appropriation for the 
Rural Microenterprise Investment Program.

                    Rural Energy for America Program

Appropriations, 2012....................................      $3,400,000
Budget estimate, 2013...................................       4,575,000
Committee recommendation................................       3,400,000

    The Rural Energy for America Program is authorized under 
section 9007 of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8107). This program may fund energy audits, 
direct loans, loan guarantees, and grants to farmers, ranchers, 
and small rural businesses for the purchase of renewable energy 
systems and for energy efficiency improvements.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $3,400,000 for 
the Rural Energy for America Program.
    The following table provides the Committee's recommendation 
as compared to the fiscal year 2012 and budget request levels:

                                        RURAL ENERGY FOR AMERICA PROGRAM
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                    Fiscal year                      Committee
                                                                    2012 level     2013 request   recommendation
----------------------------------------------------------------------------------------------------------------
Estimated loan level............................................           6,491          19,055          14,161
Guaranteed loan subsidy.........................................           1,700           4,575           3,400
Grants..........................................................           1,700  ..............  ..............
----------------------------------------------------------------------------------------------------------------

                        Rural Utilities Service

    The Rural Utilities Service [RUS] was established under the 
Federal Crop Insurance Reform and Department of Agriculture 
Reorganization Act of 1994 (Public Law 103-354), October 13, 
1994. RUS administers the electric and telephone programs of 
the former Rural Electrification Administration and the water 
and waste programs of the former Rural Development 
Administration.

             RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT

Appropriations, 2012....................................    $513,000,000
Budget estimate, 2013...................................     495,700,000
Committee recommendation................................     522,481,000

    The water and waste disposal program is authorized by 
sections 306, 306A, 309A, 306C, 306D, 306E, and 310B of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et 
seq., as amended). This program makes loans for water and waste 
development costs. Development loans are made to associations, 
including corporations operating on a nonprofit basis, 
municipalities and similar organizations, generally designated 
as public or quasi-public agencies, that propose projects for 
the development, storage, treatment, purification, and 
distribution of domestic water or the collection, treatment, or 
disposal of waste in rural areas. Such grants may not exceed 75 
percent of the development cost of the projects and can 
supplement other funds borrowed or furnished by applicants to 
pay development costs.
    The solid waste grant program is authorized under section 
310B(b) of the Consolidated Farm and Rural Development Act. 
Grants are made to public bodies and private nonprofit 
organizations to provide technical assistance to local and 
regional governments for the purpose of reducing or eliminating 
pollution of water resources and for improving the planning and 
management of solid waste disposal facilities.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $522,481,000 
for the Rural Water and Waste Disposal Program Account.
    The Committee recommends $66,500,000 for water and waste 
disposal systems grants for Native Americans, including Native 
Alaskans, the Colonias, and residents of Hawaiian Home Lands. 
The Committee recognizes the special needs and problems for 
delivery of basic services to these populations. In addition, 
the Committee makes up to $15,000,000 available for the circuit 
rider program.
    The following table provides the Committee's 
recommendations, as compared to the fiscal year 2012 and budget 
request levels:

                                 RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT
                           [Loan levels and budget authority in thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                            Fiscal year 2012     2013 budget        Committee
                                                              appropriation        request       recommendation
----------------------------------------------------------------------------------------------------------------
Loan levels:
    Water and waste disposal direct loans.................           730,689         1,000,000         1,000,000
    Direct loans authorized by Public Law 83-566..........  ................  ................            40,000
    Water and waste disposal guaranteed loans.............            62,893  ................            60,000
                                                           -----------------------------------------------------
      Total loan levels...................................           793,582         1,000,000         1,100,000
                                                           =====================================================
Budget authority:
    Water and waste disposal direct loans.................            70,000            80,700            80,700
    Water and waste disposal guaranteed loans.............             1,000  ................               636
    Water and waste disposal grants.......................           427,610           411,000           425,752
    Solid waste management grants.........................             3,400             4,000             3,400
    Water well system grants..............................               993  ................               993
    Water and waste water revolving funds.................               497  ................             1,000
    High-energy cost grants...............................             9,500  ................            10,000
                                                           -----------------------------------------------------
      Total, budget authority.............................           513,000           495,700           522,481
----------------------------------------------------------------------------------------------------------------

   RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM ACCOUNT

    The Rural Electrification Act of 1936 (7 U.S.C. 901 et 
seq.) provides the statutory authority for the electric and 
telecommunications programs.
    The Federal Credit Reform Act of 1990 (Public Law 101-508) 
established the program account. An appropriation to this 
account will be used to cover the lifetime subsidy costs 
associated with the direct loans obligated and loan guarantees 
committed in fiscal year 2013, as well as for administrative 
expenses.

                       COMMITTEE RECOMMENDATIONS

    The following table reflects the Committee's recommendation 
for the Rural Electrification and Telecommunications Loans 
Program Account, the loan subsidy and administrative expenses, 
as compared to the fiscal year 2012 and budget request levels:

                       RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM ACCOUNT
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                         Fiscal year--
                                                              ----------------------------------    Committee
                                                                  2012 level      2013 request    recommendation
----------------------------------------------------------------------------------------------------------------
Loan authorizations:
    Electric:
        Direct, 5 percent....................................          100,000  ...............          100,000
        Direct FFB...........................................        6,500,000  ...............        6,500,000
        Treasury Plus........................................  ...............        6,100,000  ...............
        Guaranteed underwriting..............................          424,286  ...............          500,000
                                                              --------------------------------------------------
          Subtotal...........................................        7,024,286        6,100,000        7,100,000
                                                              ==================================================
    Telecommunications:
        Direct, 5 percent....................................          145,000  ...............  ...............
        Direct, Treasury rate................................          250,000          690,000          690,000
        Direct, FFB..........................................          295,000  ...............  ...............
                                                              --------------------------------------------------
          Subtotal...........................................          690,000          690,000          690,000
                                                              ==================================================
      Total, loan authorizations.............................        7,714,286        6,790,000        7,790,000
                                                              ==================================================
Guaranteed underwriting budget authority.....................              594  ...............  ...............
Administrative expenses......................................           36,382           34,467           34,467
----------------------------------------------------------------------------------------------------------------


                    DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND PROGRAM  LOANS AND GRANTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                         Fiscal year--
                                                              ----------------------------------    Committee
                                                                  2012 level      2013 request    recommendation
----------------------------------------------------------------------------------------------------------------
Loan and grant levels:
    Distance Learning and Telemedicine Program:
        Grants...............................................           21,000           24,950           24,950
                                                              ==================================================
Broadband program:
    Treasury rate loans......................................          169,014           94,139           63,358
    Treasury rate loans budget authority.....................            6,000            8,915            6,000
    Grants...................................................           10,372           13,379           10,372
                                                              --------------------------------------------------
      Total DLT and Broadband program level..................          200,386          132,468           98,680
                                                              ==================================================
      Total DLT and Broadband budget authority...............           37,372           47,244           41,322
----------------------------------------------------------------------------------------------------------------

    The Distance Learning, Telemedicine, and Broadband Program 
is authorized by the Food, Agriculture, Conservation and Trade 
Act of 1990 (7 U.S.C. 950aaa et seq.), as amended by the 
Federal Agriculture Improvement and Reform Act of 1996 (Public 
Law 104-127). This program provides incentives to improve the 
quality of phone services, to provide access to advanced 
telecommunications services and computer networks, and to 
improve rural opportunities.
    This program provides the facilities and equipment to link 
rural education and medical facilities with more urban centers 
and other facilities providing rural residents access to better 
healthcare through technology and increasing educational 
opportunities for rural students. These funds are available for 
loans and grants.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $41,322,000 
for the Distance Learning, Telemedicine, and Broadband Program. 
The Committee recommendation includes $3,000,000 for public 
broadcasting systems grants to allow noncommercial educational 
television broadcast stations that serve rural areas to convert 
from analog to digital operations. Funds recommended for the 
RUS broadband program are intended to promote broadband 
availability in those areas where there is not otherwise a 
business case for private investment in a broadband network. 
The Committee encourages RUS to focus expenditures on projects 
that bring broadband service to currently unserved households.
    The Committee is concerned about the longstanding, unmet 
health needs in the Mississippi River Delta. The Committee 
recommendation includes $3,000,000 to address critical 
healthcare needs in the region, as authorized by section 379G 
of the Consolidated Farm and Rural Development Act.
    Broadband Grants.--Of the funds recommended, $10,372,000 in 
grants shall be made available to support broadband 
transmission and local dial-up Internet services for rural 
areas.

                                TITLE IV

                         DOMESTIC FOOD PROGRAMS

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

Appropriations, 2012....................................        $770,000
Budget estimate, 2013...................................         811,000
Committee recommendation................................         811,000

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

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $811,000 for 
the Office of the Under Secretary for Food, Nutrition and 
Consumer Services.
    Direct Certification.--The Healthy, Hunger-Free Kids Act of 
2010 requires States to meet federally set thresholds for 
direct certification of 80 percent in school year 2011; 90 
percent in school year 2012; and 95 percent in school year 2013 
and each year thereafter. States that do not meet these 
benchmarks must submit continuous improvement plans to the 
Secretary for approval. Recognizing the importance of ensuring 
that all eligible children participate in school meal programs, 
the Committee directs the Secretary to immediately provide all 
States with rigorous technical assistance, including direct 
consultation and intensive training, to help States meet these 
ambitious thresholds. Additionally, the Committee directs the 
Secretary to involve the Nation's Governors by accumulating and 
disseminating state best practices on direct certification.
    National School Nutrition Standards.--The Committee notes 
that the Healthy, Hunger-Free Kids Act of 2010 included a 
broadly supported provision which requires the Department to 
update the standards for foods and beverages sold in schools 
through vending machines, a la carte in cafeterias, school 
stores, and other venues outside the school meal programs. The 
Committee urges USDA to develop and implement school nutrition 
standards that are consistent with the U.S. Dietary Guidelines 
for Americans, with consideration given to existing standards 
developed by health experts, industry, States, and local school 
districts. The Department should carefully consider comments 
made in response to proposed regulations.

                       Food and Nutrition Service

    The Food and Nutrition Service represents an organizational 
effort to eliminate hunger and malnutrition in this country. 
Nutrition assistance programs provide access to a nutritionally 
adequate diet for families and persons with low incomes and 
encourage better eating patterns among the Nation's children. 
These programs include:
    Child Nutrition Programs.--The National School Lunch and 
School Breakfast, Summer Food Service, and Child and Adult Care 
Food programs provide funding to the States, Puerto Rico, the 
Virgin Islands, American Samoa, and Guam for use in serving 
nutritious lunches and breakfasts to children attending schools 
of high school grades and under, to children of preschool age 
in child care centers, and to children in other institutions in 
order to improve the health and well-being of the Nation's 
children, and broaden the markets for agricultural food 
commodities. Through the Special Milk Program, assistance is 
provided to the States for making reimbursement payments to 
eligible schools and child care institutions which institute or 
expand milk service in order to increase the consumption of 
fluid milk by children. Funds for this program are provided by 
direct appropriation and transfer from section 32.
    Special Supplemental Nutrition Program for Women, Infants, 
and Children [WIC].--This program safeguards the health of 
pregnant, postpartum, and breast-feeding women, infants, and 
children up to age 5 who are at nutritional risk because of 
inadequate nutrition and income by providing supplemental 
foods. The delivery of supplemental foods may be done through 
health clinics, vouchers redeemable at retail food stores, or 
other approved methods which a cooperating State health agency 
may select. Funds for this program are provided by direct 
appropriation.
    Supplemental Nutrition Assistance Program.--This program 
seeks to improve nutritional standards of needy persons and 
families. Assistance is provided to eligible households to 
enable them to obtain a better diet by increasing their food 
purchasing capability, usually by furnishing benefits in the 
form of electronic access to funds. The program also includes 
Nutrition Assistance to Puerto Rico.
    The program also includes the Food Distribution Program on 
Indian Reservations, which provides nutritious agricultural 
commodities to low-income persons living on or near Indian 
reservations who choose not to participate in the Supplemental 
Nutrition Assistance Program.
    Commodity Assistance Program [CAP].--This program provides 
funding for the Commodity Supplemental Food Program [CSFP], the 
Farmers' Market Nutrition Program, Disaster Assistance, Pacific 
Island Assistance, and administrative expenses for TEFAP.
    CSFP provides supplemental foods to infants and children up 
to age 6, and to pregnant, postpartum, and breast-feeding women 
with low incomes, and who reside in approved project areas. In 
addition, this program operates commodity distribution projects 
directed at low-income elderly persons.
    TEFAP provides commodities and grant funds to State 
agencies to assist in the cost of storage and distribution of 
donated commodities.
    Nutritious agricultural commodities are provided to 
residents of the Federated States of Micronesia and the 
Marshall Islands. Cash assistance is provided to distributing 
agencies to assist them in meeting administrative expenses 
incurred. It also provides funding for use in non-
presidentially declared disasters, and for FNS' administrative 
costs in connection with relief for all disasters. Funds for 
this program are provided by direct appropriation.
    Nutrition Programs Administration.--Most salaries and 
Federal operating expenses of the Food and Nutrition Service 
are funded from this account. Also included is the Center for 
Nutrition Policy and Promotion [CNPP] which oversees 
improvements in and revisions to the food guidance systems, and 
serves as the focal point for advancing and coordinating 
nutrition promotion and education policy to improve the health 
of all Americans.

                        child nutrition programs

Appropriations, 2012.................................... $18,151,176,000
Budget estimate, 2013...................................  19,694,000,000
Committee recommendation................................  19,657,500,000

    The Child Nutrition Programs, authorized by the Richard B. 
Russell National School Lunch Act (Public Law 79-396) and the 
Child Nutrition Act of 1966 (Public Law 89-642), provide 
Federal assistance to State agencies in the form of cash and 
commodities for use in preparing and serving nutritious meals 
to children while they are attending school, residing in 
service institutions, or participating in other organized 
activities away from home. The purpose of these programs is to 
help maintain the health and proper physical development of 
America's children. Milk is provided to children either free or 
at a low cost, depending on their family income level. FNS 
provides cash subsidies to States for administering the 
programs and directly administers the program in the States 
which choose not to do so. Grants are also made for nutritional 
training and surveys and for State administrative expenses. 
Under current law, most of these payments are made on the basis 
of reimbursement rates established by law and applied to 
lunches and breakfasts actually served by the States. The 
reimbursement rates are adjusted annually to reflect changes in 
the Consumer Price Index for food away from home.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends $19,657,500,000 for the Child 
Nutrition Programs.
    The Committee's recommendation provides for the following 
annual rates for the child nutrition programs.

                                          TOTAL OBLIGATIONAL AUTHORITY
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                    Committee
                   Child nutrition programs                       2012 level      2013 budget     recommendation
----------------------------------------------------------------------------------------------------------------
School Lunch Program.........................................       10,169,615       11,263,349       11,263,349
School Breakfast Program.....................................        3,313,848        3,502,644        3,502,644
Child and Adult Care Food Program............................        2,831,543        2,916,755        2,916,755
Summer Food Service Program..................................          401,998          440,905          440,905
Special Milk Program.........................................           13,240           13,323           13,323
State administrative expenses................................          279,016          289,702          289,702
Commodity procurement........................................        1,075,727        1,154,480        1,154,480
Team Nutrition...............................................           15,016           15,004           15,004
Food safety education........................................            2,510            2,575            2,575
Coordinated review...........................................            9,763           10,000           10,000
Computer support.............................................            9,525           10,746           10,746
CACFP training and technical assistance......................            3,537            7,675            7,675
Child Nutrition Program Studies and Evaluations..............           19,000           19,323           19,323
Healthier U.S. School Challenge..............................            1,500            1,500            1,500
Farm to school tactical team.................................            2,000            2,083            2,083
Payment Accuracy.............................................            2,338            6,436            6,436
School breakfast expansion grants............................            1,000  ...............            1,000
School Meals Equipment Grants................................  ...............           35,000  ...............
Hunger Free Communities Grants...............................  ...............            2,500  ...............
----------------------------------------------------------------------------------------------------------------

    The Committee expects FNS to utilize the National Food 
Service Management Institute to carry out the food safety 
education program.
    Income Determinations.--The Committee is concerned that 
eligibility determinations for the National School Lunch 
Program and the School Breakfast Program includes the value of 
the Basic Allowance for Housing received by members of the 
military living off base in privately owned property. However, 
the value of on-base housing and stipends received by 
servicemembers living in housing owned by the military and 
operated by contractors is not. Some military families view 
this practice as unfair. The Committee requests a report on the 
number of military families that are ineligible for these 
programs because of income determinations that include the 
Basic Allowance for Housing.

SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN 
                                 [WIC]

Appropriations, 2012....................................  $6,618,497,000
Budget estimate, 2013...................................   7,041,000,000
Committee recommendation................................   7,041,000,000

    The special supplemental nutrition program for women, 
infants, and children [WIC] is authorized by section 17 of the 
Child Nutrition Act of 1966. Its purpose is to safeguard the 
health of pregnant, breast-feeding and postpartum women and 
infants, and children up to age 5 who are at nutritional risk 
because of inadequate nutrition and inadequate income.
    The WIC program food packages are designed to provide foods 
which studies have demonstrated are lacking in the diets of the 
WIC program target population. The authorized supplemental 
foods are iron-fortified breakfast cereal, fruit or vegetable 
juice which contains vitamin C, dry beans, peas, and peanut 
butter.
    There are three general types of delivery systems for WIC 
foods: (1) retail purchase in which participants obtain 
supplemental foods through retail stores; (2) home delivery 
systems in which food is delivered to the participant's home; 
and (3) direct distribution systems in which participants pick 
up food from a distribution outlet. The food is free of charge 
to all participants.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $7,041,000,000 
for the Special Supplemental Food Program for Women, Infants, 
and Children [WIC].
    The Committee recommendation fully funds estimated WIC 
participation in fiscal year 2013. The Committee recommendation 
includes $60,000,000 for breastfeeding support initiatives, 
$14,000,000 for infrastructure, and $30,000,000 for management 
information systems.

               SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                         Puerto Rico      TEFAP
                                              Expenses      Amount in   and American    commodity       Total
                                                             reserve        Samoa       purchases
----------------------------------------------------------------------------------------------------------------
Appropriations, 2012......................    75,298,637     3,000,000     1,842,835       260,250    80,401,722
Budget estimate, 2013.....................    74,818,893     5,000,000     1,906,900       269,500    81,995,293
Committee recommendation..................    74,817,395     3,000,000     1,906,900       269,500    79,993,795
----------------------------------------------------------------------------------------------------------------

    The Food Stamp Program was reauthorized through fiscal year 
2012 and renamed the Supplemental Nutrition Assistance Program 
[SNAP] in the Food, Conservation, and Energy Act of 2008. The 
Supplemental Nutrition Assistance Program attempts to alleviate 
hunger and malnutrition among low-income persons by increasing 
their food purchasing power. Eligible households receive SNAP 
benefits with which they can purchase food through regular 
retail stores.
    Other programs funded through SNAP include Nutrition 
Assistance to Puerto Rico and American Samoa, the Food 
Distribution Program on Indian Reservations, the Emergency Food 
Assistance Program, and the Community Food Projects program.
    The Supplemental Nutrition Assistance Program is currently 
in operation in all 50 States, the District of Columbia, the 
Virgin Islands, and Guam. Participating households receive food 
benefits, the value of which is determined by household size 
and income. The cost of the benefits is paid by the Federal 
Government. As required by law, the Food and Nutrition Service 
annually revises household benefit allotments to reflect 
changes in the cost of the thrifty food plan.
    Administrative Costs.--All direct and indirect 
administrative costs incurred for certification of households, 
issuance of benefits, quality control, outreach, and fair 
hearing efforts are shared by the Federal Government and the 
States on a 50-50 basis.
    State Antifraud Activities.--Under the provisions of the 
Food and Nutrition Act of 2008, States are eligible to be 
reimbursed for 50 percent of the costs of their fraud 
investigations and prosecutions.
    States are required to implement an employment and training 
program for the purpose of assisting members of households 
participating in SNAP in gaining skills, training, or 
experience that will increase their ability to obtain regular 
employment. The Department of Agriculture has implemented a 
grant program to States to assist them in providing employment 
and training services.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of 
$79,993,795,000 for the Supplemental Nutrition Assistance 
Program. Of the amount recommended, $3,000,000,000 is made 
available as a contingency reserve.
    Food Distribution Program on Indian Reservations.--The 
Committee encourages the Secretary to continue the purchase of 
bison from producer-owned and Native American owned 
cooperatives for the Food Distribution Program on Indian 
Reservations. Although funding is not provided specifically for 
bison purchase, historically these purchases have been 
important for the Native American population both economically 
and nutritionally.

                      commodity assistance program

Appropriations, 2012....................................    $242,336,000
Budget estimate, 2013...................................     253,952,000
Committee recommendation................................     253,952,000

    The Commodity Assistance Program includes funding for the 
Commodity Supplemental Food Program and funding to pay expenses 
associated with the storage and distribution of commodities 
through The Emergency Food Assistance Program.
    The Commodity Supplemental Food Program [CSFP].--Authorized 
by section 4(a) of the Agricultural and Consumer Protection Act 
of 1973 (7 U.S.C. 612c note), as amended in 1981 by Public Law 
97-98, this program provides supplemental food to infants and 
children up to age 6, and to pregnant, post partum, and breast-
feeding women who have low incomes, and reside in approved 
project areas. In addition, the program operates commodity 
distribution projects directed at low-income elderly persons 60 
years of age or older.
    The foods for CSFP are provided by the Department of 
Agriculture for distribution through State agencies. The 
authorized commodities include: iron-fortified infant formula, 
rice cereal, cheese, canned juice, evaporated milk and/or 
nonfat dry milk, canned vegetables or fruits, canned meat or 
poultry, egg mix, dehydrated potatoes, farina, and peanut 
butter and dry beans. Elderly participants may receive all 
commodities except iron-fortified infant formula and rice 
cereal.
    The Emergency Food Assistance Program [TEFAP].--Authorized 
by the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et 
seq.), as amended, the program provides nutrition assistance to 
low-income people through prepared meals served on site and 
through the distribution of commodities to low-income 
households for home consumption. The commodities are provided 
by USDA to State agencies for distribution through State-
established networks. State agencies make the commodities 
available to local organizations, such as soup kitchens, food 
pantries, food banks, and community action agencies, for their 
use in providing nutrition assistance to those in need.
    Funds are administered by FNS through grants to State 
agencies which operate commodity distribution programs. 
Allocation of the funds to States is based on a formula which 
considers the States' unemployment rate and the number of 
persons with income below the poverty level.
    Pacific Island and Disaster Assistance.--This program 
provides funding for assistance to the nuclear-affected islands 
in the form of commodities and administrative funds. It also 
provides funding for use in non-presidentially declared 
disasters and for FNS' administrative costs in connection with 
relief for all disasters.
    Farmers' Market Nutrition Program.--The Farmers' Market 
Nutrition Program [FMNP] provides WIC or WIC-eligible 
participants with coupons to purchase fresh, nutritious, 
unprepared foods, such as fruits and vegetables, from farmers' 
markets. This benefits both participants and local farmers by 
increasing the awareness and use of farmers' markets by low-
income households.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $253,952,000 
for the Commodity Assistance Program. The Committee continues 
to encourage the Department to distribute Commodity Assistance 
Program funds equitably among the States, based on an 
assessment of the needs and priorities of each State and the 
State's preference to receive commodity allocations through 
each of the programs funded under this account.
    Commodity Supplemental Food Program.--The Committee 
recommends $186,935,000 for the Commodity Supplemental Food 
Program. This amount fully funds participation in fiscal year 
2013.
    Farmers' Market Nutrition Program.--The Committee is aware 
that the Farmers' Market Nutrition Program provides fresh 
fruits and vegetables to low-income mothers and children, 
benefiting not only WIC participants, but local farmers as 
well. Therefore, the Committee recommends $16,548,000 for the 
Farmers' Market Nutrition Program and directs the Secretary to 
obligate these funds within 45 days.
    The Emergency Food Assistance Program.--The Food, 
Conservation, and Energy Act of 2008 provides $269,500,000 for 
TEFAP commodities to be purchased with Supplemental Nutrition 
Assistance Program funds. The Committee recommendation includes 
$49,401,000 for TEFAP transportation and storage. In addition, 
the Committee recommendation grants the Secretary authority to 
transfer up to an additional 10 percent from TEFAP commodities 
for this purpose.
    The Committee encourages the Secretary to identify 
opportunities for increasing the supply of TEFAP commodities in 
the coming fiscal year through bonus and specialty crop 
purchases.

                   nutrition programs administration

Appropriations, 2012....................................    $138,500,000
Budget estimate, 2013...................................     143,505,000
Committee recommendation................................     143,505,000

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

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $143,505,000 
for Nutrition Programs Administration.

                                TITLE V

                FOREIGN ASSISTANCE AND RELATED PROGRAMS

                      Foreign Agricultural Service

                         SALARIES AND EXPENSES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                 Transfers from
                                                                Appropriations   loan accounts        Total
----------------------------------------------------------------------------------------------------------------
Appropriations, 2012.........................................          176,347            6,465          182,812
Budget estimate, 2013........................................          176,789            6,452          183,241
Committee recommendation.....................................          176,789            6,452          183,241
----------------------------------------------------------------------------------------------------------------

    The Foreign Agricultural Service [FAS] was established 
March 10, 1953, by Secretary's Memorandum No. 1320, supplement 
1. Public Law 83-690, approved August 28, 1954, transferred the 
agricultural attaches from the Department of State to the 
Foreign Agricultural Service.
    The mission of FAS overseas is to represent U.S. 
agricultural interests, to promote export of domestic farm 
products, improve world trade conditions, and report on 
agricultural production and trade in foreign countries. FAS 
staff are stationed at 98 offices around the world where they 
provide expertise in agricultural economics and marketing, as 
well as provide attache services.
    FAS carries out several export assistance programs to 
counter the adverse effects of unfair trade practices by 
competitors on U.S. agricultural trade. The Export Enhancement 
Program uses CCC-owned commodities as export bonuses to provide 
export enhancements to U.S. producers. The Market Access 
Program [MAP] conducts both generic and brand-identified 
promotional programs in conjunction with nonprofit agricultural 
associations and private firms financed through reimbursable 
CCC payments.
    The General Sales Manager was established pursuant to 
section 5(f) of the charter of the Commodity Credit Corporation 
and 15 U.S.C. 714-714p. The funds allocated to the General 
Sales Manager are used for conducting the following programs: 
(1) CCC Export Credit Guarantee Program (GSM-102), including 
facilities financing guarantees; (2) Food for Peace; (3) 
section 416b Overseas Donations Program; (4) Market Access 
Program; and (5) programs authorized by the Commodity Credit 
Corporation Charter Act including barter, export sales of most 
CCC-owned commodities, export payments, and other programs as 
assigned to encourage and enhance the export of U.S. 
agricultural commodities.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends $183,241,000 for the Foreign 
Agricultural Service, including a direct appropriation of 
$176,789,000. While the Committee has a history of supporting 
USDA reconstruction and stabilization activities, the Committee 
expects appropriated funds to be used for established FAS trade 
promotion, trade policy, trade capacity building, and food 
security efforts. The Committee does not provide the budget 
request of $5,550,000 for reconstruction and stabilization 
activities.
    Borlaug Fellows Program.--The Committee recommendation 
includes $1,000,000 for the Borlaug International Agricultural 
Science and Technology Fellows Program. This program provides 
training for international scientists and policymakers from 
selected developing countries. The fellows work closely with 
U.S. specialists in their fields of expertise and apply that 
knowledge in their home countries. The Committee recognizes the 
importance of this program in helping developing countries 
strengthen their agricultural practices and food security.
    Cochran Fellowship Program.--The Committee recommendation 
includes $5,000,000 for the Cochran Fellowship Program. The 
Committee encourages the Secretary to continue to provide 
additional support for the program through the Commodity Credit 
Corporation Emerging Markets Program.
    Foreign Market Development Cooperator Program.--Subject to 
authorization, the Committee expects the FAS to fund the 
Foreign Market Development Cooperator Program.
    Market Access Program.--Subject to authorization, the 
Committee continues the full mandatory funding for the Market 
Access Program and expects the Department to administer the 
program as authorized in 7 U.S.C. 5623, without changing the 
eligibility requirements for participation of cooperative 
organizations, small businesses, trade associations, and other 
entities.

  FOOD FOR PEACE TITLE I DIRECT CREDIT AND FOOD FOR PROGRESS PROGRAM 
                                ACCOUNT

Appropriations, 2012....................................      $2,500,000
Budget estimate, 2013...................................       2,806,000
Committee recommendation................................       2,806,000

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $2,806,000 for 
administrative expenses to continue servicing existing Food for 
Peace title I agreements.

                     FOOD FOR PEACE TITLE II GRANTS

Appropriations, 2012....................................  $1,466,000,000
Budget estimate, 2013...................................   1,400,000,000
Committee recommendation................................   1,466,000,000

    The Committee recognizes the important mission of the Food 
for Peace Program to combat hunger and malnutrition; promote 
broad-based equitable and sustainable development; expand 
international trade; develop and expand export markets for U.S. 
agricultural commodities; and to foster and encourage the 
development of private enterprise and democratic participation 
in developing countries. The Committee strongly supports the 
continued efficient operation of this important program.
    Commodities Supplied in Connection With Dispositions Abroad 
(Title II) (7 U.S.C. 1721-1726).--Commodities are supplied 
without cost through foreign governments to combat malnutrition 
and to meet famine and other emergency requirements. 
Commodities are also supplied for nonemergencies through public 
and private agencies, including intergovernmental 
organizations. The Commodity Credit Corporation pays ocean 
freight on shipments under this title, and may also pay 
overland transportation costs to a landlocked country, as well 
as internal distribution costs in emergency situations. The 
funds appropriated for title II are made available to private 
voluntary organizations and cooperatives to assist these 
organizations in meeting administrative and related costs.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $1,466,000,000 
for Food for Peace title II grants.

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

Appropriations, 2012....................................    $184,000,000
Budget estimate, 2013...................................     184,000,000
Committee recommendation................................     184,000,000

    The McGovern-Dole International Food for Education and 
Child Nutrition Program helps support education, child 
development, and food security for some of the world's poorest 
children. The program provides for donations of U.S. 
agricultural products, as well as financial and technical 
assistance, for school feeding and maternal and child nutrition 
projects in low-income, food-deficit countries that are 
committed to universal education. Commodities made available 
for donation through agreements with private voluntary 
organizations, cooperatives, intergovernmental organizations, 
and foreign governments may be donated for direct feeding or 
for local sale to generate proceeds to support school feeding 
and nutrition projects.

                       COMMITTEE RECOMMENDATIONS

    The Committee recommends an appropriation of $184,000,000 
for the McGovern-Dole International Food for Education and 
Child Nutrition Program.

COMMODITY CREDIT CORPORATION EXPORT LOANS PROGRAM ACCOUNT (EXPORT CREDIT
                          PROGRAMS AND GSM-102)
                        [In thousands of dollars]
------------------------------------------------------------------------
                                        Guaranteed loan   Administrative
                                           levels\1\         expenses
------------------------------------------------------------------------
Appropriations, 2012..................        5,500,000            6,820
Budget estimate, 2013.................        5,500,000            6,806
Committee recommendation..............        5,500,000            6,806
------------------------------------------------------------------------
\1\No appropriation required since export credit authorizations are
  permanent authority.

    In 1980, the Commodity Credit Corporation [CCC] instituted 
the Export Credit Guarantee Program (GSM-102) under its charter 
authority. With this program, CCC guarantees, for a fee, 
payments due U.S. exporters under deferred payment sales 
contracts (up to 36 months) for defaults due to commercial as 
well as noncommercial risks. The risk to CCC extends from the 
date of export to the end of the deferred payment period 
covered in the export sales contract and covers only that 
portion of the payments agreed to in the assurance agreement. 
Operation of this program is based on criteria which will 
assure that it is used only where it is determined that it will 
develop new market opportunities and maintain and expand 
existing world markets for U.S. agricultural commodities. The 
program encourages U.S. financial institutions to provide 
financing to those areas where the institutions would be 
unwilling to provide financing in the absence of the CCC 
guarantees. CCC also provides facilities financing guarantees.
    The Federal Credit Reform Act of 1990 establishes the 
program account. The subsidy costs of the CCC export guarantee 
programs are exempt from the requirement of advance 
appropriations of budget authority according to section 
504(c)(2) of the Federal Credit Reform Act of 1990, Public Law 
101-508. Appropriations to this account will be used for 
administrative expenses.

                                TITLE VI

           RELATED AGENCIES AND FOOD AND DRUG ADMINISTRATION

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                      Food and Drug Administration

    The Food and Drug Administration [FDA] is a scientific 
regulatory agency whose mission is to promote and protect the 
public health and safety of Americans. FDA's work is a blend of 
science and law. The Food and Drug Administration Amendments 
Act of 2007 [FDAAA] (Public Law 110-85) reaffirmed the 
responsibilities of the FDA: to ensure safe and effective 
products reach the market to a timely way, and to monitor 
products for continued safety after they are in use. In 
addition, FDA is entrusted with two critical functions in the 
Nation's war on terrorism: preventing willful contamination of 
all regulated products, including food, and improving the 
availability of medications to prevent or treat injuries caused 
by biological, chemical, radiological, or nuclear agents.
    The FDA Foods program has the primary responsibility for 
assuring that the food supply, quality of foods, food 
ingredients and dietary supplements are safe, sanitary, 
nutritious, wholesome, and honestly labeled, and that cosmetic 
products are safe and properly labeled. The variety and 
complexity of the food supply has grown dramatically while new 
and more complex safety issues, such as emerging microbial 
pathogens, natural toxins, and technological innovations in 
production and processing, have developed. This program plays a 
major role in keeping the United States food supply among the 
safest in the world.
    In January 2011, the Food Safety Modernization Act was 
signed into law. This law enables FDA to better protect public 
health by strengthening the food safety system. It enables FDA 
to focus more on preventing food safety problems rather than 
relying primarily on reacting to problems after they occur. The 
law also provides FDA with new enforcement authorities designed 
to achieve higher rates of compliance with prevention- and 
risk-based food safety standards and to better respond to and 
contain problems when they do occur. The law also gives FDA 
important new tools to hold imported foods to the same 
standards as domestic foods and directs FDA to build an 
integrated national food safety system in partnership with 
State and local authorities.
    The FDA Drugs programs are comprised of four separate 
areas, Human Drugs, Animal Drugs, Medical Devices and 
Biologics. FDA is responsible for the lifecycle of products, 
including premarket review and postmarket surveillance of human 
and animal drugs, medical devices and biological products to 
ensure their safety and effectiveness. FDA is responsible for 
the lifecycle of the product, including premarket review and 
postmarket surveillance of human, animal and biological 
products to ensure their safety and efficacy. For Human Drugs 
this includes assuring that all drug products used for the 
prevention, diagnosis and treatment of disease are safe and 
effective. Additional procedures include the review of 
investigational new drug applications; evaluation of market 
applications for new and generic drugs, labeling and 
composition of prescription and over-the-counter drugs; 
monitoring the quality and safety of products manufactured in, 
or imported into, the United States; and, regulating the 
advertising and promotion of prescription drugs. The Animal 
Drugs and Feeds Program ensures only safe and beneficial 
veterinary drugs, intended for the treatment and/or prevention 
of diseases in animals and the improved production of food-
producing animals, are approved for marketing.
    The FDA Biologics program assures that blood and blood 
products, blood test kits, vaccines, and therapeutics are pure, 
potent, safe, effective, and properly labeled. The program 
inspects blood banks and blood processors, licenses and 
inspects firms collecting human source plasma, evaluates and 
licenses biologics manufacturing firms and products; lot 
releases licensed products; and monitors adverse events 
associated with vaccine immunization, blood products, and other 
biologics.
    The FDA Devices and Radiological program ensures the safety 
and effectiveness of medical devices and eliminates unnecessary 
human exposure to manmade radiation from medical, occupational, 
and consumer products. In addition, the program enforces 
quality standards under the Mammography Quality Standards Act 
(Public Law 108-365). Medical devices include thousands of 
products from thermometers and contact lenses to heart 
pacemakers, hearing aids, and MRIs. Radiological products 
include items such as microwave ovens and video display 
terminals.
    FDA's National Center for Toxicological Research in 
Jefferson, Arkansas, serves as a specialized resource, 
conducting peer-review scientific research that provides the 
basis for FDA to make sound science-based regulatory decisions 
through its premarket review and postmarket surveillance. The 
research is designed to define and understand the biological 
mechanisms of action underlying the toxicity of products and 
lead to developing methods to improve assessment of human 
exposure, susceptibility and risk of those products regulated 
by FDA.
    In 2009, Congress granted FDA new authority to regulate the 
manufacture, distribution, and marketing of tobacco products. 
FDA exercises this responsibility by protecting the public 
health from the health effects of tobacco, setting scientific 
standards and standards for tobacco product review, conducting 
compliance activities to enforce its authority over tobacco, 
and conducting public education and outreach about the health 
effects of tobacco products.

                         salaries and expenses

                        [In thousands of dollars]
------------------------------------------------------------------------
                               Appropriation    User fees       Total
------------------------------------------------------------------------
Appropriations, 2012.........      2,497,021     1,393,366     3,890,387
Budget estimate, 2013........      2,511,991     1,969,057     4,481,048
Committee recommendation.....      2,524,491     1,385,690     3,910,181
------------------------------------------------------------------------

                       committee recommendations

    The Committee recommends an appropriation of $2,524,491,000 
for FDA salaries and expenses. The Committee also recommends 
$712,808,000 in Prescription Drug User Fee Act user fee 
collections; $69,700,000 in Medical Device User Fee and 
Modernization Act user fee collections; $30,530,000 in Animal 
Drug User Fee Act user fee collections; $7,595,000 in Animal 
Generic Drug User Fee Act user fee collections; $505,000,000 in 
Tobacco Product user fee collections; $15,367,000 for food 
reinspection user fee collections; $12,925,000 for recall user 
fee collections; $19,318,000 in Mammography Quality Standards 
Act fee collections; and $12,447,000 in export and 
certification fees, as assumed in the President's budget. The 
Committee recommendation includes bill language which prohibits 
FDA from developing, establishing, or operating any program of 
user fees authorized by 31 U.S.C. 9701.
    The Committee notes that PDUFA and MDUFMA user fees need to 
be reauthorized for fiscal year 2013. PDUFA and MDUFMA 
legislation is currently being negotiated by the appropriate 
authorizing committees. The Committee recommendation includes 
amounts that represent the current budget request for these 
fees. In addition, the Committee notes that FDA has reached 
agreement with industry on generic drug and biosimilar user 
fees. These programs are also being negotiated by the 
appropriate authorizing committees. The Committee 
recommendation does not include amounts for these programs as 
they are not currently authorized for fiscal year 2012. The 
Committee will follow the reauthorization of PDUFA and MDUFMA 
and the authorization of generic drug and biosimilar fees and 
adjust the fee collection amounts if necessary.
    The Committee recommendation does not include proposed user 
fees for food establishment registration, food contact 
notification, medical product re-inspection, cosmetics, and 
international courier imports. None of these user fee proposals 
have been authorized by Congress. The Committee will continue 
to monitor any action by the Congress regarding these proposed 
user fees.
    The following table reflects the Committee's 
recommendations, as compared to the fiscal year 2012 and budget 
request levels:

                               FOOD AND DRUG ADMINISTRATION SALARIES AND EXPENSES
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                         Fiscal year--
                                                              ----------------------------------    Committee
                                                                 2012 enacted     2013 request    recommendation
----------------------------------------------------------------------------------------------------------------
Centers and related field activities:
    Foods....................................................          866,061          855,239          867,039
                                                              --------------------------------------------------
        Center for Food Safety and Applied Nutrition [CFSAN].          264,296          261,189          272,289
        Field Activities.....................................          601,765          594,050          594,750
                                                              ==================================================
    Human Drugs..............................................          477,810          472,683          472,683
                                                              --------------------------------------------------
        Center for Drug Evaluation and Research [CDER].......          347,817          344,500          344,500
        Field Activities.....................................          129,993          128,183          128,183
                                                              ==================================================
    Biologics................................................          212,224          209,826          209,826
                                                              --------------------------------------------------
        Center for Biologics Evaluation and Research [CBER]..          171,711          169,881          169,881
        Field Activities.....................................           40,513           39,945           39,945
                                                              ==================================================
    Animal Drugs.............................................          138,021          136,175          136,875
                                                              --------------------------------------------------
        Center for Veterinary Medicine [CVM].................           84,699           83,582           84,282
        Field Activities.....................................           53,322           52,593           52,593
                                                              ==================================================
    Medical and radiological devices.........................          322,672          319,127          319,127
                                                              --------------------------------------------------
        Center for Devices and Radiological Health [CDRH]....          241,475          239,072          239,072
        Field Activities.....................................           81,197           80,055           80,055
                                                              ==================================================
    National Center for Toxicological Research [NCTR]........           60,039           59,232           59,232
                                                              ==================================================
Other Activities.............................................          153,704          163,030          163,030
                                                              ==================================================
Rent and related activities..................................          105,984          127,305          127,305
                                                              ==================================================
Rental payments to GSA.......................................          160,506          169,374          169,374
                                                              ==================================================
      Total, FDA salaries and expenses, new budget authority.        2,497,021        2,511,991        2,524,491
----------------------------------------------------------------------------------------------------------------

    The Committee recommendation includes the following 
increases: $12,500,000 for implementation of the Food Safety 
Modernization Act, $21,166,000 for necessary expenses, 
mandatory rental payments, and facilities, $3,510,000 for 
advancing medical countermeasures, and $10,000,000 for safety 
inspections in China. The Committee also accepts FDA's proposed 
reduction of $19,706,000 due to information technology savings.
    The Committee expects FDA to continue all projects, 
activities, laboratories, and programs as included in the 
fiscal year 2013 budget request, unless otherwise specified.
    Agency Collaboration.--The Committee is pleased to learn 
that the Food and Drug Administration and Centers for Medicare 
& Medicaid Services have established a pilot program for 
concurrent review of certain FDA premarket review submissions 
for medical device, including diagnostics. This pilot program 
is voluntary on the part of the applicant. Parallel review may 
facilitate the development of innovative products and encourage 
investment. The Committee applauds the effort of both agencies.
    Antimicrobial Drugs.--The Committee is encouraged by the 
finalization of FDA Guidance for Industry 209, which calls for 
the voluntary elimination of growth promoting uses of medically 
important antibiotics and increased veterinary oversight of 
these drugs. However, the Committee believes that FDA should 
continue to make progress to implement the recommendations 
outlined in the finalized Guidance for Industry 209. The 
Committee understands that the FDA has issued a companion draft 
guidance, Guidance for Industry 213, that provides further 
details on the strategy for implementing the changes 
recommended in guidance 209. Because of the importance of this 
issue to human and animal health, the Committee will continue 
to monitor FDA's efforts to finalize and implement the plan 
outlined in draft Guidance for Industry 213. The Commissioner 
is directed to provide a report regarding compliance with the 
final guidance and further details about how the FDA intends to 
meet its public health responsibilities. This report shall be 
due within 120 days of the completion issuance of the agency's 
final guidance for industry.
    Artificial Pancreas.--The Committee is encouraged by the 
Food and Drug Administration's draft guidance for accelerating 
the development and availability of artificial pancreas 
technologies which have the potential to be an important tool 
for patients with type 1 diabetes to achieve better glycemic 
control, increasing their quality of life and overall health. 
The FDA's actions will allow these systems to be further 
developed, tested in outpatient pivotal trials, and eventually 
approved for people with type 1 diabetes. The Committee 
encourages the FDA to finalize the draft guidance and continue 
its interactions with researchers, clinicians, policymakers, 
and patient advocates to advance the development of artificial 
pancreas systems for people with type 1 diabetes.
    Budget Justification.--The Committee directs FDA to submit 
the fiscal year 2014 budget request in a format that follows 
the same account structure as the fiscal year 2013 budget 
request unless otherwise approved by the Committee.
    Camelina.--The Committee recognizes the importance of 
developing markets for biofuel feedstock byproducts in building 
advanced biofuel supply chains. In particular, the Committee 
notes that multiple departments of government are currently 
engaged in advancing biofuel produced from Camelina. The FDA is 
directed to report to the Committee within 90 days after 
enactment of this Act on all previous petitions that have been 
approved at lower rations than requested, what regulatory 
barriers, if any, remain preventing a finding of ``Generally 
Recognized as Safe'' status for camelina, and how those 
barriers can best be overcome under current law and with the 
resources available to FDA.
    Critical Path Initiative.--The Committee expects FDA to 
continue its work on critical path, regulatory science and 
innovate opportunities, and to promote collaborations with 
other government agencies, academia, patient groups and other 
interested parties, including existing partnerships with 
academic institutions.
    Dietary Supplements.--The Committee is aware that U.S. 
consumers widely use plant-derived dietary supplements, and 
that FDA inspects manufacturers and distributors that are 
responsible for ensuring that such products are not adulterated 
or contaminated, and do not cause harm to the consumer. The 
Committee believes that methods and standards are needed to 
verify source plants and ingredients and to detect toxic 
contaminants. The Committee encourages FDA to develop guidance 
for industry on such methods and standards, which would enhance 
FDA's ability to inspect and assess industry practices for 
manufacturing botanical dietary supplements.
    Drug Shortages.--The Committee is concerned with the 
significant number of drug shortages occurring in the United 
States and the impact it is having on patient access to needed 
life-saving treatments. By Executive order, the President has 
instructed FDA to broaden its reporting of potential shortages 
and speed reviews of applications to begin or alter production 
of drugs in short supply. As part of this enhanced activity, 
the Committee encourages FDA to increase its communication with 
medical practitioners through specialty-specific list serves 
and other means of targeted communications to provide 
information on potential shortages, the anticipated length of 
time of the shortage and options for obtaining therapies while 
they are in short supply.
    Ethanol.--The Committee directs the Food and Drug 
Administration to conduct periodic surveillance sampling of 
antibiotic use in ethanol production. The Food and Drug 
Administration should make public information about the results 
of its surveillance sampling.
    Food Safety Information Sharing.--The Committee urges the 
Secretary of Agriculture and the Secretary of Health and Human 
Services to enter into a memorandum of understanding between 
the relevant agencies within the Department of Health and Human 
Services, including the Food and Drug Administration and the 
Centers for Disease Control and Prevention, and the relevant 
agencies within the Department of Agriculture, including the 
Food Safety and Inspection Service, the Agricultural Research 
Service, and the Animal and Plant Health Inspection Service, to 
ensure the timely and efficient sharing of all information 
collected by such agencies related to foodborne pathogens, 
contaminants and illnesses.
    Honey.--The Committee recognizes that honey is produced in 
the United States, traded internationally and consumed as both 
a packaged food and as a food ingredient. However, there have 
been instances where manufacturers have been impermissibly 
marketing products as ``honey'' or ``pure honey'' that 
contained other ingredients. The Committee believes that 
guidance about the composition and labeling of honey is needed 
to protect consumers from misbranded and adulterated honey and 
honey-derived products that are currently entering the U.S. 
market. The Committee directs FDA to issue guidance to remind 
manufacturers of honey about the misbranding and adulteration 
provisions in law, about the proper labeling of honey, and 
other guidance that reinforces the FDA's existing labeling 
regulations.
    Information Technology.--The Committee notes with concern 
that the Government Accountability Office [GAO] recently found 
that FDA does not have a comprehensive list of its information 
technology [IT] systems, and as a result, the agency cannot 
ensure that it is investing in the mix of projects that will 
best support its mission or that it is managing them 
appropriately. Given that FDA currently spends approximately 
ten percent of its overall funding on IT systems, the Committee 
insists that FDA address GAO's findings and determine the most 
efficient use of its IT resources. In addition, the Committee 
directs FDA to develop a comprehensive IT investment plan. 
Within 60 days of the enactment of this Act, the Committee 
directs FDA to provide a report on the agency's IT systems. The 
report shall include a complete inventory of systems, a 
description of each system's purpose, annual cost for each 
system and the source of funding, and status of each system 
including whether it is in the process of being upgraded.
    Nanotechnology.--The Committee recognizes that FDA is 
developing the facilities and expertise to study nanotechnology 
within FDA's Jefferson Laboratory Campus, including the 
National Center for Toxicological Research, and its 
consolidated headquarters at White Oak, Maryland. The Committee 
supports FDA in its mission to expand upon current research in 
nanotechnology and supports the development of a Nanotechnology 
Core Center to meet this mission. The Committee believes a 
Nanotechnology Core Center should be designed to support 
nanotechnology toxicity studies, develop analytical tools to 
quantify nanomaterials in complex matrices, and develop 
procedures for characterizing nanomaterials in FDA-regulated 
products.
    Office of Cosmetics and Colors [OCAC].--The Committee 
provides not less than $11,700,000 for cosmetics activities, 
including not less than $7,200,000 for the Office of Colors and 
Cosmetics. Funding provided for OCAC is for direct support of 
the operation, staffing, compliance, research and international 
activities performed by this office.
    Pediatric Devices.--The Committee is pleased that the five 
FDA-funded Pediatric Device Consortia have assisted in 
advancing the development of 135 proposed pediatric medical 
devices, as well as promoted job growth in the healthcare 
sector, and as such, continues to support this critical effort. 
However, the Committee remains concerned that children's 
medical devices can lag 5 to 10 years behind those manufactured 
for adults and directs FDA to maintain funding at the current 
level.
    Seafood Advisory.--The Committee is highly concerned that 
over a year has passed since USDA published its dietary 
guidelines and more than 6 months have passed since the 
publication of this Committee's fiscal year 2012 report 
directing FDA to commence reconsideration of its 2004 seafood 
advisory, and yet FDA has not published its draft revision of 
the advisory. Given data demonstrating that women of 
childbearing years, pregnant women, and mothers with young 
children are eating too little seafood for their health and the 
health of their babies, and the role the language of FDA's 2004 
advisory may play in discouraging healthy consumption of 
seafood, the Committee expected a more urgent response by FDA. 
Therefore, the Committee directs FDA to issue final seafood 
advisory consistent with USDA's dietary guidelines by December 
31, 2012.
    Tanning Bed Labeling.--The Committee is aware of the FDA 
report to Congress as required by section 230 of Public Law 
110-85, which determined that certain modifications to the 
labeling requirements for sunlamp products may communicate the 
risks of indoor tanning more effectively and stated that the 
agency was considering changes to the performance requirements 
of the sunlamp performance standard. The Committee encourages 
the agency to update the labeling and performance requirements 
for sunlamp products within 180 days of enactment of this act.
    Tobacco.--The Committee recognizes FDA has declared its 
intent to issue a proposed rule clarifying the agency's 
jurisdiction over tobacco products. The Committee strongly 
encourages the agency to issue this proposed rule and 
promulgate regulations as necessary. The Committee instructs 
the agency to consider, among other things, the issue of cigars 
with characterizing flavors, particularly as it applies to the 
marketing and sale of these products to children.
    Tissue Reference Group.--To improve transparency, the 
committee urges the FDA to update FDA's procedures for the work 
of the Tissue Reference Group [TRG] to include specifying the 
format and content of submissions, projected timelines for 
review of inquiries, and procedures for sponsors to meet with 
FDA, and the process by which FDA communicates regularly with 
the sponsor regarding the submission. The committee further 
recommends that FDA conduct stakeholder meetings and use other 
means to make publicly available the scientific rationale for 
its recommendations regarding human cell, tissue, and cellular 
and tissue-based product jurisdiction and classification while 
protecting proprietary information. The committee directs the 
FDA to update on a biannual basis the TRG report summary the 
agency posts on its Web site, with the first update due within 
90 days of enactment of the fiscal year 2013 appropriation.

                        buildings and facilities

Appropriations, 2012....................................      $8,788,000
Budget estimate, 2013..........................       5,320,000
Committee recommendation................................       5,320,000

    FDA maintains offices and staff in 49 States and in the 
District of Columbia and Puerto Rico, including field 
laboratories and specialized facilities, as well as the 
National Center for Toxicological Research complex. Repairs, 
modifications, improvements, and construction to FDA 
headquarters and field facilities must be made to preserve the 
properties, ensure employee safety, meet changing program 
requirements, and permit the agency to keep its laboratory 
methods up to date.

                       committee recommendations

    The Committee recommends an appropriation of $5,320,000 for 
FDA buildings and facilities. This funding shall be used to 
upgrade FDA facilities and laboratories which are currently 
below public safety standards and incapable of performing 
agency requirements.

                           INDEPENDENT AGENCY


                       Farm Credit Administration


                 limitation on administrative expenses

Limitation, 2012........................................     $61,000,000
Budget estimate, 2013...................................      63,300,000
Committee recommendation................................      63,300,000

    The Farm Credit Administration [FCA] is the independent 
agency in the executive branch of the Government responsible 
for the examination and regulation of the banks, associations, 
and other institutions of the Farm Credit System.
    Activities of the Farm Credit Administration include the 
planning and execution of examinations of Farm Credit System 
institutions and the preparation of examination reports. FCA 
also establishes standards, enforces rules and regulations, and 
approves certain actions of the institutions.
    The administration and the institutions under its 
jurisdiction now operate under authorities contained in the 
Farm Credit Act of 1971, Public Law 92-181, effective December 
10, 1971. Public Law 99-205, effective December 23, 1985, 
restructured FCA and gave the agency regulatory authorities and 
enforcement powers.
    The act provides for the farmer-owned cooperative system to 
make sound, adequate, and constructive credit available to 
farmers and ranchers and their cooperatives, rural residences, 
and associations and other entities upon which farming 
operations are dependent, and to modernize existing farm credit 
law to meet current and future rural credit needs.
    The Agricultural Credit Act of 1987 authorized the 
formation of the Federal Agricultural Mortgage Corporation 
[FAMC] to operate a secondary market for agricultural and rural 
housing mortgages. The Farm Credit Administration, under 
section 8.11 of the Farm Credit Act of 1971, as amended, is 
assigned the responsibility of regulating this entity and 
assuring its safe and sound operation.
    Expenses of the Farm Credit Administration are paid by 
assessments collected from the Farm Credit System institutions 
and by assessments to the Federal Agricultural Mortgage 
Corporation.

                       committee recommendations

    The Committee recommends a limitation of $63,300,000 on 
administrative expenses of the Farm Credit Administration.

                               TITLE VII

                           GENERAL PROVISIONS

    The Committee recommends the following provisions:
    Section 701. This section makes funds available for the 
purchase, replacement, and hire of passenger motor vehicles.
    Section 702. This section gives the Secretary of 
Agriculture authority to transfer unobligated balances to the 
Working Capital Fund and clarifies longstanding practices 
associated with the Fund.
    Section 703. This section limits the funding provided in 
the bill to 1 year, unless otherwise specified.
    Section 704. This section limits negotiated indirect costs 
on cooperative agreements between the Department of Agriculture 
and nonprofit organizations to 10 percent.
    Section 705. This section makes appropriations to the 
Department of Agriculture for the cost of direct guaranteed 
loans available until expended to disburse obligations for 
certain Rural Development programs.
    Section 706. This section prohibits the use of funds to 
establish an inspection panel at the Department of Agriculture.
    Section 707. This section prohibits the purchase of new 
information technology equipment in excess of $25,000 without 
the prior approval of the Chief Information Officer.
    Section 708. This section makes funds for certain 
conservation programs available until expended to disburse 
certain obligations made in the current fiscal year.
    Section 709. This section makes certain former Rural 
Utilities Service borrowers eligible for the Rural Economic 
Development loan and grant program.
    Section 710. This section modifies matching requirements 
for certain research grants.
    Section 711. This section provides funds for Rural 
Development and the Farm Service Agency information technology 
expenses.
    Section 712. This section includes language regarding 
reconstituted infant formula.
    Section 713. This section includes language regarding 
first-class travel.
    Section 714. This section includes language regarding the 
Commodity Credit Corporation.
    Section 715. This section includes language regarding 
humanitarian food assistance.
    Section 716. This section limits the amount of funding 
available to reimburse the Commodity Credit Corporation for the 
release of commodities under the Bill Emerson Humanitarian 
Trust.
    Section 717. This section makes funds available for the 
expenses and activities of certain advisory committees, panels, 
commissions, and task forces at the Department of Agriculture.
    Section 718. This section includes language regarding the 
limitation on direct costs for grants awarded by the National 
Institute of Food and Agriculture.
    Section 719. This section provides funding for the 
Geographically Disadvantaged Farmers Program as authorized in 
the Food, Conservation, and Energy Act of 2008.
    Section 720. This section includes language regarding 
strategic rural development planning.
    Section 721. This section includes language regarding the 
availability of funds for certain Department of Agriculture 
programs.
    Section 722. This section provides funding to carry out a 
program for hardwood trees.
    Section 723. This section prohibits the use of funds for 
user fee proposals that fail to provide sufficient budget 
impact information.
    Section 724. This section prohibits the reprogramming of 
funds for programs, projects, or activities in excess of 
$500,000 or 10 percent, whichever is less without the prior 
notification of the Committee on Appropriations.
    Section 725. This section includes language for the 
establishment of a fee under the business and industry loan 
program.
    Section 726. This section prohibits the Department of 
Agriculture and the Department of Health and Human Services 
from transmitting questions or responses as a result of the 
appropriations hearing process to non-Department employees.
    Section 727. This section includes language regarding 
prepackaged news.
    Section 728. This section requires Department of 
Agriculture agencies to provide reimbursement to other 
Department of Agriculture agencies for employees detailed for 
longer than 30 days.
    Section 729. This section includes language regarding rural 
housing programs.
    Section 730. This section includes language prohibiting 
grants and loans to a corporation convicted of a felony under 
Federal law.
    Section 731. This section includes language prohibiting 
grants and loans to corporations that have an unpaid Federal 
tax liability.
    Section 732. This section includes language regarding 
attendance at international conferences.
    Section 733. This section includes language regarding 
reporting of conference expenditures at the Department of 
Agriculture.
    Section 734. This section includes language regarding 
reporting of conference expenditures at the Food and Drug 
Administration.
    Section 735. This section includes language regarding grant 
and contract funding for conferences.

                     PROGRAM, PROJECT, AND ACTIVITY

    During fiscal year 2013, for purposes of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (Public Law 
99-177) or the Balanced Budget and Emergency Deficit Control 
Reaffirmation Act of 1987 (Public Law 100-119), 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, 2013, and the accompanying Senate 
Report.
    If a sequestration order is necessary, in implementing the 
Presidential order, departments and agencies shall apply any 
percentage reduction required for fiscal year 2013 pursuant to 
the provisions of Public Law 99-177 or Public Law 100-119 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 2013 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.
    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, regional, State, district, and county offices.

  COMPLIANCE WITH PARAGRAPH 7, RULE XVI OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 7 of rule XVI requires that Committee reports 
accompanying general appropriations bills identify each 
recommended amendment which proposes an item of appropriation 
which is not made to carry out the provisions of an existing 
law, a treaty stipulation, or an act or resolution previously 
passed by the Senate during that session.
    The Committee is filing an original bill, which is not 
covered under this rule, but reports this information in the 
spirit of full disclosure.
    The Committee recommends funding for the following programs 
or activities which currently lack authorization for fiscal 
year 2013:
      Dairy Indemnity Program
      Grassroots Source Water Protection Program
      Geographically Disadvantaged Farmers and Ranchers
      Reforestation Program
      Supplemental Nutrition Assistance Program, Commodity 
        Supplemental Food Program
      The Emergency Food Assistance Program
      McGovern-Dole International Food for Education Program
      Value-added Agricultural Product Market Development 
        Grants
      Rural Cooperative Development Grants
      Appropriate Technology Transfer for Rural Areas
      Rural Energy for America Program
      Rural Business Opportunity Grants
      Delta Regional Authority Grants
      Health Care Services Grant Program
      Tribal College and University Essential Community 
        Facilities
      Multi-family Housing Revitalization Program
      Distance Learning and Telemedicine
      Access to Broadband Telecommunications Services in Rural 
        Areas
      Broadband Telecommunications Grants
      Guaranteed Water and Waste Loans
      Water and Waste Revolving Loan Fund Grants
      Public Broadcasting System Grants

COMPLIANCE WITH PARAGRAPH 7(c), RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Pursuant to paragraph 7(c) of rule XXVI, on April 26, 2012, 
the Committee ordered favorably reported en bloc an original 
bill (S. 2375) making appropriations for Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
programs for the fiscal year ending September 30, 2013, and for 
other purposes, and reported an original bill (S. 2465) making 
appropriations for energy and water development and related 
agencies for the fiscal year ending September 30, 2013, and for 
other purposes, provided, that each bill be subject to further 
amendment and that each bill be consistent with its spending 
allocations, by a recorded vote of 28-1, a quorum being 
present. The vote was as follows:
        Yeas                          Nays
Chairman Inouye                     Mr. Johnson (WI)
Mr. Leahy
Mr. Harkin
Ms. Mikulski
Mr. Kohl
Mrs. Murray
Mrs. Feinstein
Mr. Durbin
Mr. Johnson (SD)
Ms. Landrieu
Mr. Reed
Mr. Lautenberg
Mr. Nelson
Mr. Pryor
Mr. Tester
Mr. Brown
Mr. Cochran
Mr. McConnell
Mr. Shelby
Mrs. Hutchison
Mr. Alexander
Ms. Collins
Ms. Murkowski
Mr. Graham
Mr. Coats
Mr. Blunt
Mr. Moran
Mr. Hoeven

 COMPLIANCE WITH PARAGRAPH 12, RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 12 of rule XXVI requires that Committee reports 
on a bill or joint resolution repealing or amending any statute 
or part of any statute include ``(a) the text of the statute or 
part thereof which is proposed to be repealed; and (b) a 
comparative print of that part of the bill or joint resolution 
making the amendment and of the statute or part thereof 
proposed to be amended, showing by stricken-through type and 
italics, parallel columns, or other appropriate typographical 
devices the omissions and insertions which would be made by the 
bill or joint resolution if enacted in the form recommended by 
the committee.''
    The Committee bill as recommended contains no such 
provisions.
                        BUDGETARY IMPACT OF BILL


  PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS
                                                     AMENDED
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  Budget authority               Outlays
                                                             ---------------------------------------------------
                                                               Committee    Amount  in   Committee    Amount  in
                                                               allocation      bill      allocation      bill
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee allocations
 to its subcommittees of amounts in the budget resolution
 for 2013: Subcommittee on Agriculture, Rural Development,
 Food and Drug Administration, and Related Agencies:
    Mandatory...............................................      124,580      124,580      111,791   \1\111,791
    Discretionary...........................................       20,785       20,785       23,357    \1\23,356
        Security............................................  ...........  ...........           NA           NA
        Nonsecurity.........................................       20,785       20,785           NA           NA
Projections of outlays associated with the recommendation:
    2013....................................................  ...........  ...........  ...........   \2\120,099
    2014....................................................  ...........  ...........  ...........        4,009
    2015....................................................  ...........  ...........  ...........        1,103
    2016....................................................  ...........  ...........  ...........          238
    2017 and future years...................................  ...........  ...........  ...........          150
Financial assistance to State and local governments for                NA        7,893           NA        6,817
 2013.......................................................

----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.
\2\Excludes outlays from prior-year budget authority.

NA: Not applicable.


  COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2012 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL
                                                                        YEAR 2013
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                         Senate Committee recommendation
                                                                                                                             compared with (+ or -)
                                Item                                       2012       Budget estimate     Committee    ---------------------------------
                                                                      appropriation                     recommendation        2012
                                                                                                                         appropriation   Budget estimate
--------------------------------------------------------------------------------------------------------------------------------------------------------
                   TITLE I--AGRICULTURAL PROGRAMS

               Production, Processing, and Marketing

Office of the Secretary............................................           4,550            5,051            5,051             +501   ...............
Office of Tribal Relations.........................................             448              498              498              +50   ...............

Executive Operations:
    Office of Chief Economist......................................          11,177           12,008           16,008           +4,831           +4,000
    National Appeals Division......................................          12,841           14,225           14,225           +1,384   ...............
    Office of Budget and Program Analysis..........................           8,946            9,049            9,049             +103   ...............
    Office of Homeland Security and Emergency Coordination.........           1,321            1,496            1,496             +175   ...............
    Office of Advocacy and Outreach................................           1,209            1,422            1,422             +213   ...............
    Office of the Chief Information Officer........................          44,031           44,031           44,031   ...............  ...............
    Office of the Chief Financial Officer..........................           5,650            6,247            6,247             +597   ...............
                                                                    ------------------------------------------------------------------------------------
      Subtotal, Executive Operations...............................          85,175           88,478           92,478           +7,303           +4,000

Office of the Assistant Secretary for Civil Rights.................             848              893              893              +45   ...............
Office of Civil Rights.............................................          21,000           22,692           22,692           +1,692   ...............
Office of the Assistant Secretary for Administration...............             764              804              804              +40   ...............
Agriculture buildings and facilities and rental payments...........        (230,416)        (244,057)        (241,336)        (+10,920)         (-2,721)
    Payments to GSA................................................         164,470          175,694          175,694          +11,224   ...............
    Department of Homeland Security................................          13,800           13,473           13,473             -327   ...............
    Building operations and maintenance............................          52,146           54,890           52,169              +23           -2,721
Hazardous materials management.....................................           3,592            3,992            3,992             +400   ...............
Departmental Administration........................................          24,165           29,647           27,647           +3,482           -2,000
Office of the Assistant Secretary for Congressional Relations......           3,576            3,869            3,869             +293   ...............
Office of Communications...........................................           8,065            9,006            9,006             +941   ...............
Office of Inspector General........................................          85,621           89,016           89,016           +3,395   ...............
Office of the General Counsel......................................          39,345           45,074           45,074           +5,729   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Departmental Administration...........................         507,565          543,077          542,356          +34,791             -721

Office of the Under Secretary for Research, Education, and                      848              893              893              +45   ...............
 Economics.........................................................
Economic Research Service..........................................          77,723           77,397           77,397             -326   ...............
National Agricultural Statistics Service...........................         158,616          179,477          179,477          +20,861   ...............
    Census of Agriculture..........................................         (41,639)         (62,500)         (62,500)        (+20,861)  ...............

Agricultural Research Service:
    Salaries and expenses..........................................       1,094,647        1,102,565        1,101,853           +7,206             -712

National Institute of Food and Agriculture:
    Research and education activities..............................         705,599          732,730          738,638          +33,039           +5,908
    Native American Institutions Endowment Fund....................         (11,880)         (11,880)         (11,880)  ...............  ...............
    Extension activities...........................................         475,183          462,473          475,125              -58          +12,652
    Integrated activities..........................................          21,482           43,542           24,982           +3,500          -18,560
    Hispanic-Serving Agricultural Colleges and Universities          ...............         (10,000)         (10,000)        (+10,000)  ...............
     Endowment Fund................................................
                                                                    ------------------------------------------------------------------------------------
      Total, National Institute of Food and Agriculture............       1,202,264        1,238,745        1,238,745          +36,481   ...............

Office of the Under Secretary for Marketing and Regulatory Programs             848              893              893              +45   ...............

Animal and Plant Health Inspection Service:
    Salaries and expenses..........................................         816,534          762,418          816,534   ...............         +54,116
    Buildings and facilities.......................................           3,200            3,175            3,175              -25   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Animal and Plant Health Inspection Service............         819,734          765,593          819,709              -25          +54,116

Agricultural Marketing Service:
    Marketing Services.............................................          82,211           77,032           77,863           -4,348             +831
        Standardization activities (user fees) NA..................         (66,000)         (66,000)         (66,000)  ...............  ...............
    (Limitation on administrative expenses, from fees collected)...         (62,101)         (62,592)         (62,592)           (+491)  ...............
    Funds for strengthening markets, income, and supply (section
     32):
        Permanent, section 32......................................       1,080,000        1,092,000        1,092,000          +12,000   ...............
            Marketing agreements and orders (transfer from section          (20,056)         (20,056)         (20,056)  ...............  ...............
             32)...................................................
    Payments to States and possessions.............................           1,198            1,331            1,331             +133   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Agricultural Marketing Service program................       1,225,510        1,232,955        1,233,786           +8,276             +831

Grain Inspection, Packers and Stockyards Administration:
    Salaries and expenses..........................................          37,750           40,261           40,261           +2,511   ...............
    Limitation on inspection and weighing services.................         (49,000)         (50,000)         (50,000)         (+1,000)  ...............
Office of the Under Secretary for Food Safety......................             770              811              811              +41   ...............
Food Safety and Inspection Service.................................       1,004,427          995,503        1,001,427           -3,000           +5,924
    Lab accreditation fees.........................................          (1,000)          (1,000)          (1,000)  ...............  ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Production, Processing, and Marketing.................       6,068,601        6,115,578        6,175,016         +106,415          +59,438
                                                                    ====================================================================================
                      Farm Assistance Programs

Office of the Under Secretary for Farm and Foreign Agricultural                 848              893              893              +45   ...............
 Services..........................................................

Farm Service Agency:
    Salaries and expenses..........................................       1,198,966        1,208,290        1,208,290           +9,324   ...............
    (Transfer from Food for Peace (Public Law 480))................          (2,500)          (2,806)          (2,806)           (+306)  ...............
    (Transfer from export loans)...................................            (355)            (354)            (354)             (-1)  ...............
    (Transfer from ACIF)...........................................        (289,728)        (304,977)        (304,977)        (+15,249)  ...............
                                                                    ------------------------------------------------------------------------------------
      Subtotal, transfers from program accounts....................        (292,583)        (308,137)        (308,137)        (+15,554)  ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Salaries and expenses.................................      (1,491,549)      (1,516,427)      (1,516,427)        (+24,878)  ...............

    State mediation grants.........................................           3,759            4,369            4,369             +610   ...............
    Grassroot source water protection program......................           3,817   ...............           6,500           +2,683           +6,500
    Dairy indemnity program........................................             100              100              100   ...............  ...............
                                                                    ------------------------------------------------------------------------------------
      Subtotal, Farm Service Agency................................       1,206,642        1,212,759        1,219,259          +12,617           +6,500

    Agricultural Credit Insurance Fund [ACIF] Program Account:
        Loan authorizations:
            Farm ownership loans:
                Direct.............................................        (475,000)        (475,000)        (475,000)  ...............  ...............
                Guaranteed.........................................      (1,500,000)      (1,500,000)      (1,500,000)  ...............  ...............
                                                                    ------------------------------------------------------------------------------------
                  Subtotal.........................................      (1,975,000)      (1,975,000)      (1,975,000)  ...............  ...............

            Farm operating loans:
                Direct.............................................      (1,050,090)      (1,050,089)      (1,050,089)             (-1)  ...............
                Unsubsidized guaranteed............................      (1,500,000)      (1,500,000)      (1,500,000)  ...............  ...............
                                                                    ------------------------------------------------------------------------------------
                  Subtotal.........................................      (2,550,090)      (2,550,089)      (2,550,089)             (-1)  ...............

            Emergency loans........................................  ...............         (34,658)         (34,658)        (+34,658)  ...............
            Indian tribe land acquisition loans....................          (2,000)          (2,000)          (2,000)  ...............  ...............
            Conservation loans:
                Guaranteed.........................................        (150,000)        (150,000)        (150,000)  ...............  ...............
            Indian Highly Fractionated Land Loans..................         (10,000)         (10,000)         (10,000)  ...............  ...............
            Boll weevil eradication loans..........................        (100,000)         (60,000)        (100,000)  ...............        (+40,000)
                                                                    ------------------------------------------------------------------------------------
              Total, Loan authorizations...........................      (4,787,090)      (4,781,747)      (4,821,747)        (+34,657)        (+40,000)

        Loan subsidies:
            Farm ownership loans:
                Direct.............................................          22,800           20,140           20,140           -2,660   ...............
                                                                    ------------------------------------------------------------------------------------
                  Subtotal.........................................          22,800           20,140           20,140           -2,660   ...............

            Farm operating loans:
                Direct.............................................          59,120           58,490           58,490             -630   ...............
                Unsubsidized guaranteed............................          26,100           17,850           17,850           -8,250   ...............
                                                                    ------------------------------------------------------------------------------------
                  Subtotal.........................................          85,220           76,340           76,340           -8,880   ...............

            Emergency loans........................................  ...............           1,317            1,317           +1,317   ...............
            Indian Highly Fractionated Land Loans..................             193              173              173              -20   ...............
            Individual Development Account grants..................  ...............           2,500   ...............  ...............          -2,500
                                                                    ------------------------------------------------------------------------------------
              Total, Loan subsidies................................         108,213          100,470           97,970          -10,243           -2,500

        ACIF administrative expenses:
            Salaries and expense (transfer to FSA).................         289,728          304,977          304,977          +15,249   ...............
            Administrative expenses................................           7,904            7,920            7,920              +16   ...............
                                                                    ------------------------------------------------------------------------------------
              Total, ACIF expenses.................................         297,632          312,897          312,897          +15,265   ...............
                                                                    ------------------------------------------------------------------------------------
              Total, Agricultural Credit Insurance Fund............         405,845          413,367          410,867           +5,022           -2,500
                    (Loan authorization)...........................      (4,787,090)      (4,781,747)      (4,821,747)        (+34,657)        (+40,000)
                                                                    ------------------------------------------------------------------------------------
              Total, Farm Service Agency...........................       1,612,487        1,626,126        1,630,126          +17,639           +4,000

Risk Management Agency, Administrative and operating expenses......          74,900           74,900           74,900   ...............  ...............
                                                                    ====================================================================================
      Total, Farm Assistance Programs..............................       1,688,235        1,701,919        1,705,919          +17,684           +4,000
                                                                    ====================================================================================
                            Corporations

Federal Crop Insurance Corporation: Federal crop insurance                3,142,375        9,517,433        9,517,433       +6,375,058   ...............
 corporation fund

Commodity Credit Corporation Fund:
    Reimbursement for net realized losses..........................      14,071,000       11,018,509       11,018,509       -3,052,491   ...............
    Hazardous waste management (limitation on expenses)............          (5,000)          (5,000)          (5,000)  ...............  ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Corporations..........................................      17,213,375       20,535,942       20,535,942       +3,322,567   ...............
                                                                    ====================================================================================
      Total, Title I, Agricultural programs........................      24,970,211       28,353,439       28,416,877       +3,446,666          +63,438
          (By transfer)............................................        (312,639)        (328,193)        (328,193)        (+15,554)  ...............
          (Loan authorization).....................................      (4,787,090)      (4,781,747)      (4,821,747)        (+34,657)        (+40,000)
          (Limitation on administrative expenses)..................        (116,101)        (117,592)        (117,592)         (+1,491)  ...............
                                                                    ====================================================================================
                  TITLE II--CONSERVATION PROGRAMS

Office of the Under Secretary for Natural Resources and Environment             848              893              893              +45   ...............

Natural Resources Conservation Service:
    Conservation operations........................................         828,159          827,500          828,498             +339             +998
    Watershed rehabilitation program...............................          15,000   ...............  ...............         -15,000   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Natural Resources Conservation Service................         843,159          827,500          828,498          -14,661             +998
                                                                    ====================================================================================
      Total, Title II, Conservation programs.......................         844,007          828,393          829,391          -14,616             +998
                                                                    ====================================================================================
                    TITLE III--RURAL DEVELOPMENT

Office of the Under Secretary for Rural Development................             848              893              893              +45   ...............

Rural Development:
    Rural development expenses:
        Salaries and expenses......................................         182,023          206,857          206,857          +24,834   ...............
        (Transfer from RHIF).......................................        (430,800)        (408,127)        (410,627)        (-20,173)         (+2,500)
        (Transfer from RDLFP)......................................          (4,684)          (4,438)          (4,438)           (-246)  ...............
        (Transfer from RETLP)......................................         (36,382)         (34,467)         (34,467)         (-1,915)  ...............
                                                                    ------------------------------------------------------------------------------------
          Subtotal, Transfers from program accounts................        (471,866)        (447,032)        (449,532)        (-22,334)         (+2,500)
                                                                    ------------------------------------------------------------------------------------
          Total, Rural development expenses........................        (653,889)        (653,889)        (656,389)         (+2,500)         (+2,500)

Rural Housing Service:
    Rural Housing Insurance Fund Program Account:
        Loan authorizations:
            Single family direct (Sec. 502)........................        (900,000)        (652,764)        (900,000)  ...............       (+247,236)
                Unsubsidized guaranteed............................     (24,000,000)     (24,000,000)     (24,000,000)  ...............  ...............
                                                                    ------------------------------------------------------------------------------------
                  Subtotal, Single family..........................     (24,900,000)     (24,652,764)     (24,900,000)  ...............       (+247,236)

            Housing repair (Sec. 504)..............................         (10,000)         (27,952)         (27,952)        (+17,952)  ...............
            Rental housing (Sec. 515)..............................         (64,478)  ...............         (28,433)        (-36,045)        (+28,433)
            Multi-family housing guarantees (Sec. 538).............        (130,000)        (150,000)        (150,000)        (+20,000)  ...............
            Single family housing credit sales.....................         (10,000)  ...............         (10,000)  ...............        (+10,000)
            Self-help housing land develop. (Sec. 523).............          (5,000)  ...............          (5,000)  ...............         (+5,000)
            Farm Labor Housing (Sec. 514)..........................         (20,791)         (25,969)         (25,969)         (+5,178)  ...............
                                                                    ------------------------------------------------------------------------------------
              Total, Loan authorizations...........................     (25,140,269)     (24,856,685)     (25,147,354)         (+7,085)       (+290,669)

        Loan subsidies:
            Single family direct (Sec. 502)........................          42,570           38,970           53,730          +11,160          +14,760
            Housing repair (Sec. 504)..............................           1,421            3,821            3,821           +2,400   ...............
            Rental housing (Sec. 515)..............................          22,000   ...............          10,000          -12,000          +10,000
            Farm labor housing (Sec. 514)..........................           7,100            8,658            8,658           +1,558   ...............
                                                                    ------------------------------------------------------------------------------------
              Total, Loan subsidies................................          73,091           51,449           76,209           +3,118          +24,760

        Farm labor housing grants..................................           7,100            8,868            8,868           +1,768   ...............
        RHIF administrative expenses (transfer to RD)..............         430,800          408,127          410,627          -20,173           +2,500
                                                                    ------------------------------------------------------------------------------------
            Total, Rural Housing Insurance Fund program............         510,991          468,444          495,704          -15,287          +27,260
                (Loan authorization)...............................     (25,140,269)     (24,856,685)     (25,147,354)         (+7,085)       (+290,669)
                                                                    ====================================================================================
    Rental assistance program:
        Rental assistance (Sec. 521)...............................         900,653          904,128          904,128           +3,475   ...............
        New construction (Sec. 515)................................           1,500   ...............  ...............          -1,500   ...............
        New construction (Farm Labor Housing)......................           2,500            3,000            3,000             +500   ...............
                                                                    ------------------------------------------------------------------------------------
          Total, Rental assistance program.........................         904,653          907,128          907,128           +2,475   ...............

Multi-Family Housing Revitalization Program Account:
    Rural housing voucher program..................................          11,000           12,575           11,000   ...............          -1,575
    Multi-family housing revitalization program....................           2,000           34,367           16,782          +14,782          -17,585
                                                                    ------------------------------------------------------------------------------------
      Total, Multi-family housing revitalization...................          13,000           46,942           27,782          +14,782          -19,160

    Mutual and self-help housing grants............................          30,000           10,000           30,000   ...............         +20,000
    Rural housing assistance grants................................          33,136           28,216           33,136   ...............          +4,920
    Rural community facilities program account:
        Loan authorizations:
            Community facility:
                Direct.............................................      (1,300,000)      (2,000,000)      (2,000,000)       (+700,000)  ...............
                Guaranteed.........................................        (105,708)  ...............  ...............       (-105,708)  ...............
                                                                    ------------------------------------------------------------------------------------
                  Total, Loan authorizations.......................      (1,405,708)      (2,000,000)      (2,000,000)       (+594,292)  ...............

        Loan subsidies and grants:
            Community facility:
                Guaranteed.........................................           5,000   ...............  ...............          -5,000   ...............
                Grants.............................................          11,363           13,000           13,000           +1,637   ...............
            Rural community development initiative.................           3,621            8,000            6,121           +2,500           -1,879
            Economic impact initiative grants......................           5,938   ...............           5,938   ...............          +5,938
            Tribal college grants..................................           3,369            4,000            3,369   ...............            -631
                                                                    ------------------------------------------------------------------------------------
              Total, RCFP Loan subsidies and grants................          29,291           25,000           28,428             -863           +3,428
                                                                    ------------------------------------------------------------------------------------
              Subtotal, grants and payments........................          92,427           63,216           91,564             -863          +28,348
                                                                    ====================================================================================
              Total, Rural Housing Service.........................       1,521,071        1,485,730        1,522,178           +1,107          +36,448
                    (Loan authorization)...........................     (26,545,977)     (26,856,685)     (27,147,354)       (+601,377)       (+290,669)

Rural Business--Cooperative Service:
    Rural Business Program Account:
        (Guaranteed business and industry loans)...................        (812,563)        (821,224)        (821,224)         (+8,661)  ...............
        Loan subsidies and grants:
            Guaranteed business and industry subsidy...............          45,341           56,336           56,336          +10,995   ...............
            Grants:
                Rural business enterprise..........................          24,318           29,823           24,318   ...............          -5,505
                Rural business opportunity.........................           2,250   ...............           2,250   ...............          +2,250
                Delta regional authority...........................           2,900   ...............           3,000             +100           +3,000
                                                                    ------------------------------------------------------------------------------------
                    Total, Rural Business Program loan subsidies             74,809           86,159           85,904          +11,095             -255
                 and grants........................................

    Rural Development Loan Fund Program Account:
        (Loan authorization).......................................         (17,710)         (18,889)         (18,889)         (+1,179)  ...............
        Loan subsidy...............................................           6,000            6,052            6,052              +52   ...............
        Administrative expenses (transfer to RD)...................           4,684            4,438            4,438             -246   ...............
                                                                    ------------------------------------------------------------------------------------
          Total, Rural Development Loan Fund.......................          10,684           10,490           10,490             -194   ...............

    Rural Economic Development Loans Program Account:
        (Loan authorization).......................................         (33,077)         (33,077)         (33,077)  ...............  ...............
        Limit cushion of credit interest spending..................        (155,000)        (165,000)        (180,000)        (+25,000)        (+15,000)
            (Rescission)...........................................        -155,000         -165,000         -180,000          -25,000          -15,000
    Rural cooperative development grants:
        Cooperative development....................................           5,800            7,000            7,000           +1,200   ...............

        Appropriate technology transfer for rural areas............           2,250            2,250            2,250   ...............  ...............
        Grants to assist minority producers........................           3,000            3,456            3,456             +456   ...............
        Value-added agricultural product market development........          14,000           15,000           15,000           +1,000   ...............
                                                                    ------------------------------------------------------------------------------------
          Total, Rural Cooperative development grants..............          25,050           27,706           27,706           +2,656   ...............

    Rural Microenterprise Investment Program Account:
        (Loan authorization).......................................  ...............         (22,448)  ...............  ...............        (-22,448)
        Loan subsidy...............................................  ...............           3,356   ...............  ...............          -3,356
                                                                    ------------------------------------------------------------------------------------
          Total, Rural Microenterprise Investment..................  ...............           3,356   ...............  ...............          -3,356

    Rural Energy for America Program (loan authorization)..........          (6,491)         (19,055)         (14,161)         (+7,670)         (-4,894)
        Loan subsidy...............................................           1,700            4,575            3,400           +1,700           -1,175
        Grants.....................................................           1,700   ...............  ...............          -1,700   ...............
                                                                    ------------------------------------------------------------------------------------
          Total, Rural Energy for America Program..................           3,400            4,575            3,400   ...............          -1,175
                                                                    ====================================================================================
          Total, Rural Business--Cooperative Service...............         -41,057          -32,714          -52,500          -11,443          -19,786
              (Loan authorization).................................        (869,841)        (914,693)        (887,351)        (+17,510)        (-27,342)
                                                                    ====================================================================================
Rural Utilities Service:
    Rural water and waste disposal program account:
        Loan authorizations:
            Direct.................................................        (730,689)      (1,000,000)      (1,000,000)       (+269,311)  ...............
            Guaranteed.............................................         (62,893)  ...............         (60,000)         (-2,893)        (+60,000)
            Direct loans authorized by Public Law 83-566...........  ...............  ...............         (40,000)        (+40,000)        (+40,000)
                                                                    ------------------------------------------------------------------------------------
              Total, Loan authorization............................         793,582        1,000,000        1,100,000         +306,418         +100,000

                                                                    ====================================================================================
        Loan subsidies and grants:
            Direct subsidy.........................................          70,000           80,700           80,700          +10,700   ...............
            Guaranteed subsidy.....................................           1,000   ...............             636             -364             +636
            Water and waste revolving fund.........................             497   ...............           1,000             +503           +1,000
            Water well system grants...............................             993   ...............             993   ...............            +993
            Colonias and AK/HI grants..............................          66,500           59,484           66,500   ...............          +7,016
            Water and waste technical assistance...................          19,000           14,871           19,000   ...............          +4,129
            Circuit rider program..................................          15,000           12,393           15,000   ...............          +2,607
            Solid waste management grants..........................           3,400            4,000            3,400   ...............            -600
            High energy cost grants................................           9,500   ...............          10,000             +500          +10,000
            Water and waste disposal grants........................         327,110          324,252          325,252           -1,858           +1,000
                                                                    ------------------------------------------------------------------------------------
              Total, Loan subsidies and grants.....................         513,000          495,700          522,481           +9,481          +26,781

    Rural Electrification and Telecommunications Loans Program
     Account:
        Loan authorizations:
            Electric:
                Direct, 5 percent..................................        (100,000)  ...............        (100,000)  ...............       (+100,000)
                Direct, FFB........................................      (6,500,000)  ...............      (6,500,000)  ...............     (+6,500,000)
                Treasury Plus......................................  ...............      (6,100,000)  ...............  ...............     (-6,100,000)
                Guaranteed underwriting............................        (424,286)  ...............        (500,000)        (+75,714)       (+500,000)
                                                                    ------------------------------------------------------------------------------------
                  Subtotal, Electric...............................      (7,024,286)      (6,100,000)      (7,100,000)        (+75,714)     (+1,000,000)

            Telecommunications:
                Direct, 5 percent..................................        (145,000)  ...............  ...............       (-145,000)  ...............
                Direct, Treasury rate..............................        (250,000)        (690,000)        (690,000)       (+440,000)  ...............
                Direct, FFB........................................        (295,000)  ...............  ...............       (-295,000)  ...............
                                                                    ------------------------------------------------------------------------------------
                  Subtotal, Telecommunications.....................        (690,000)        (690,000)        (690,000)  ...............  ...............
                                                                    ------------------------------------------------------------------------------------
                  Total, Loan authorizations.......................      (7,714,286)      (6,790,000)      (7,790,000)        (+75,714)     (+1,000,000)
                                                                    ====================================================================================
        Loan subsidies:
            Electric:
                Guaranteed underwriting............................             594   ...............  ...............            -594   ...............
        RETLP administrative expenses (transfer to RD).............          36,382           34,467           34,467           -1,915   ...............
                                                                    ------------------------------------------------------------------------------------
          Total, Rural Electrification and Telecommunications Loans          36,976           34,467           34,467           -2,509   ...............
           Program Account.........................................
              (Loan authorization).................................      (7,714,286)      (6,790,000)      (7,790,000)        (+75,714)     (+1,000,000)
                                                                    ====================================================================================
    Distance learning, telemedicine, and broadband program:
        Loan authorizations:
            Broadband telecommunications...........................        (169,014)         (94,139)         (63,358)       (-105,656)        (-30,781)
                                                                    ------------------------------------------------------------------------------------
              Total, Loan authorizations...........................        (169,014)         (94,139)         (63,358)       (-105,656)        (-30,781)

        Loan subsidies and grants:
            Distance learning and telemedicine:
                Grants.............................................          21,000           24,950           24,950           +3,950   ...............
            Broadband telecommunications:
                Direct.............................................           6,000            8,915            6,000   ...............          -2,915
                Grants.............................................          10,372           13,379           10,372   ...............          -3,007
                                                                    ------------------------------------------------------------------------------------
                  Total, Loan subsidies and grants.................          37,372           47,244           41,322           +3,950           -5,922
                                                                    ====================================================================================
                  Total, Rural Utilities Service...................         587,348          577,411          598,270          +10,922          +20,859
                      (Loan authorization).........................      (8,676,882)      (7,884,139)      (8,953,358)       (+276,476)     (+1,069,219)
                                                                    ====================================================================================
                  Total, Title III, Rural Development Programs.....       2,250,233        2,238,177        2,275,698          +25,465          +37,521
                      (By transfer)................................        (471,866)        (447,032)        (449,532)        (-22,334)         (+2,500)
                      (Loan authorization).........................     (36,092,700)     (35,655,517)     (36,988,063)       (+895,363)     (+1,332,546)
                                                                    ====================================================================================
                  TITLE IV--DOMESTIC FOOD PROGRAMS

Office of the Under Secretary for Food, Nutrition and Consumer                  770              811              811              +41   ...............
 Services..........................................................

Food and Nutrition Service:
    Child nutrition programs.......................................      18,150,176       19,656,500       19,656,500       +1,506,324   ...............
        Discretionary..............................................  ...............  ...............  ...............  ...............  ...............
        School breakfast program grants............................           1,000   ...............           1,000   ...............          +1,000
        School breakfast program equipment grants..................  ...............          35,000   ...............  ...............         -35,000
        Hunger-free communities grants.............................  ...............           2,500   ...............  ...............          -2,500
                                                                    ------------------------------------------------------------------------------------
          Total, Child nutrition programs..........................      18,151,176       19,694,000       19,657,500       +1,506,324          -36,500

    Special supplemental nutrition program for women, infants, and        6,618,497        7,041,000        7,041,000         +422,503   ...............
     children [WIC]................................................
    Supplemental nutrition assistance program:
        (Food stamp program).......................................      77,401,722       76,992,797       76,992,797         -408,925   ...............
            Reserve................................................       3,000,000        5,000,000        3,000,000   ...............      -2,000,000
            FDPIR nutrition education..............................  ...............             998              998             +998   ...............
            Center for Nutrition Policy and Promotion..............  ...............           1,498   ...............  ...............          -1,498
                                                                    ------------------------------------------------------------------------------------
              Total, Food stamp program............................      80,401,722       81,995,293       79,993,795         -407,927       -2,001,498

    Commodity assistance program:
        Commodity supplemental food program........................         176,788          186,935          186,935          +10,147   ...............
        Farmers market nutrition program...........................          16,548           16,548           16,548   ...............  ...............
        Emergency food assistance program..........................          48,000           49,401           49,401           +1,401   ...............
        Pacific island and disaster assistance.....................           1,000            1,068            1,068              +68   ...............
                                                                    ------------------------------------------------------------------------------------
          Total, Commodity assistance program......................         242,336          253,952          253,952          +11,616   ...............

    Nutrition programs administration..............................         138,500          143,505          143,505           +5,005   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Food and Nutrition Service............................     105,552,231      109,127,750      107,089,752       +1,537,521       -2,037,998
                                                                    ====================================================================================
      Total, Title IV, Domestic Food Programs......................     105,553,001      109,128,561      107,090,563       +1,537,562       -2,037,998
                                                                    ====================================================================================
          TITLE V--FOREIGN ASSISTANCE AND RELATED PROGRAMS

                    Foreign Agricultural Service

Salaries and expenses..............................................         176,347          176,789          176,789             +442   ...............
    (Transfer from export loans)...................................          (6,465)          (6,452)          (6,452)            (-13)  ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Salaries and expenses.................................         182,812          183,241          183,241             +429   ...............

Food for Peace Title I Direct Credit and Food for Progress Program
 Account, Administrative Expenses:.................................
    Farm Service Agency, Salaries and expenses (transfer to FSA)...           2,500            2,806            2,806             +306   ...............

Food for Peace Title II Grants:
    Expenses.......................................................       1,466,000        1,400,000        1,466,000   ...............         +66,000

Commodity Credit Corporation Export Loans Program Account
 (administrative expenses):
    Salaries and expenses (export loans):
        General Sales Manager (transfer to FAS)....................           6,465            6,452            6,452              -13   ...............
        Farm Service Agency S&E (transfer to FSA)..................             355              354              354               -1   ...............
                                                                    ------------------------------------------------------------------------------------
          Total, CCC Export Loans Program Account..................           6,820            6,806            6,806              -14   ...............

McGovern-Dole international food for education and child nutrition          184,000          184,000          184,000   ...............  ...............
 program grants....................................................
                                                                    ====================================================================================
      Total, Title V, Foreign Assistance and Related Programs......       1,835,667        1,770,401        1,836,401             +734          +66,000
          (By transfer)............................................          (6,465)          (6,452)          (6,452)            (-13)  ...............
                                                                    ====================================================================================
    TITLE VI--RELATED AGENCIES AND FOOD AND DRUG ADMINISTRATION

              DEPARTMENT OF HEALTH AND HUMAN SERVICES

                    Food and Drug Administration

Salaries and expenses, direct appropriation........................       2,497,021        2,511,991        2,524,491          +27,470          +12,500
    Prescription drug user fees....................................        (702,172)  ...............  ...............       (-702,172)  ...............
    Medical device user fees.......................................         (57,605)  ...............  ...............        (-57,605)  ...............
    Animal drug user fees..........................................         (21,768)         (30,530)         (30,530)         (+8,762)  ...............
    Animal generic drug user fees..................................          (5,706)          (7,595)          (7,595)         (+1,889)  ...............
    Tobacco product user fees......................................        (477,000)        (505,000)        (505,000)        (+28,000)  ...............
    Food Recall....................................................         (12,364)         (12,925)         (12,925)           (+561)  ...............
    Food Reinspection fees.........................................         (14,700)         (15,367)         (15,367)           (+667)  ...............
                                                                    ------------------------------------------------------------------------------------
      Subtotal (including user fees)...............................      (3,788,336)      (3,083,408)      (3,095,908)       (-692,428)        (+12,500)

    Mammography user fees..........................................         (19,318)         (19,318)         (19,318)  ...............  ...............
    Export certification user fees.................................         (11,667)         (12,447)         (12,447)           (+780)  ...............
    Voluntary qualified importer program fees......................         (71,066)  ...............  ...............        (-71,066)  ...............
                                                                    ------------------------------------------------------------------------------------
      Subtotal, FDA (with user fees)...............................      (3,890,387)      (3,115,173)      (3,127,673)       (-762,714)        (+12,500)

    FDA New User Fees (Leg. proposals):
        Biosimilar biological products user fees...................  ...............         (20,242)  ...............  ...............        (-20,242)
        Human generic drug user fees...............................  ...............        (299,000)  ...............  ...............       (-299,000)
        Food inspections/food facility user fees...................  ...............        (220,200)  ...............  ...............       (-220,200)
        Food contact notification user fees........................  ...............          (4,901)  ...............  ...............         (-4,901)
        Medical Product Reinspection fees..........................  ...............         (14,746)  ...............  ...............        (-14,746)
        Cosmetic activities fees...................................  ...............         (18,698)  ...............  ...............        (-18,698)
        International express courier import fees..................  ...............          (5,580)  ...............  ...............         (-5,580)
        Prescription drug user fees................................  ...............        (712,808)        (712,808)       (+712,808)  ...............
        Medical device user fees...................................  ...............         (69,700)         (69,700)        (+69,700)  ...............
                                                                    ------------------------------------------------------------------------------------
          Subtotal, FDA new user fees (Leg Proposals)..............  ...............      (1,365,875)        (782,508)       (+782,508)       (-583,367)

Buildings and facilities...........................................           8,788            5,320            5,320           -3,468   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, FDA (with user fees, including proposals).............      (3,899,175)      (4,486,368)      (3,915,501)        (+16,326)       (-570,867)
      Total, FDA (with enacted user fees only).....................      (3,899,175)      (3,120,493)      (3,132,993)       (-766,182)        (+12,500)
      Total, FDA (excluding user fees).............................       2,505,809        2,517,311        2,529,811          +24,002          +12,500
                                                                    ====================================================================================
                        INDEPENDENT AGENCIES

Farm Credit Administration (limitation on administrative expenses).         (61,000)         (63,300)         (63,300)         (+2,300)  ...............
                                                                    ====================================================================================
      Total, Title VI, Related Agencies and Food and Drug                 2,505,809        2,517,311        2,529,811          +24,002          +12,500
       Administration..............................................
                                                                    ====================================================================================
                   TITLE VII--GENERAL PROVISIONS

Limit fruit and vegetable program (Sec. 721(5))....................        -133,000         -117,000         -117,000          +16,000   ...............
Section 32 (rescission) (Sec. 721(5))..............................        -150,000   ...............        -150,000   ...............        -150,000
Forestry Incentives program (rescission)...........................          -6,017   ...............  ...............          +6,017   ...............
Great Plains Conservation (rescission).............................            -547   ...............  ...............            +547   ...............
Supplemental Nutrition Assistance Program Employment and Training           -11,000   ...............  ...............         +11,000   ...............
 (rescission)......................................................
Limit Conservation stewardship.....................................         -76,516           -2,000   ...............         +76,516           +2,000
Limit Dam Rehab (Sec. 721(3))......................................        -165,000         -165,000         -165,000   ...............  ...............
Limit Environmental Quality Incentives program (Sec. 721(2)).......        -350,000         -347,000         -350,000   ...............          -3,000
Limit Farmland Protection program..................................         -50,000   ...............  ...............         +50,000   ...............
Limit Grasslands reserve...........................................         -30,000   ...............  ...............         +30,000   ...............
Limit Wetlands reserve.............................................        -200,000   ...............  ...............        +200,000   ...............
Limit Wildlife habitat incentives (Sec. 721(4))....................         -35,000          -12,000          -12,000          +23,000   ...............
Limit Voluntary Public Access program..............................         -17,000   ...............  ...............         +17,000   ...............
Limit Biomass Crop Assistance program..............................         -28,000   ...............  ...............         +28,000   ...............
Limit Bioenergy Program for Advanced Biofuels......................         -40,000   ...............  ...............         +40,000   ...............
Limit Rural Energy for America.....................................         -48,000   ...............  ...............         +48,000   ...............
Limit Microenterprise investment program...........................          -3,000   ...............  ...............          +3,000   ...............
Limit Crop Insurance Good Performance..............................         -25,000   ...............  ...............         +25,000   ...............
Limit Agriculture management assistance (Sec. 721(1))..............          -5,000           -5,000           -5,000   ...............  ...............
Hardwood Trees (Reforestation Pilot Program)(Sec. 722).............             600   ...............             600   ...............            +600
Geographic Disadvantaged farmers (Sec. 719)........................           1,996   ...............           1,996   ...............          +1,996
NIFA, Buildings and Facilities (rescission) (Sec. 722).............          -2,490   ...............  ...............          +2,490   ...............
Trade Adjustment Assistance for Farmers (rescission)...............         -90,000   ...............  ...............         +90,000   ...............
OAO (rescission)...................................................          -4,000   ...............  ...............          +4,000   ...............
Ocean freight (rescission).........................................          -3,235   ...............  ...............          +3,235   ...............
Public Law 480 Title I (rescission)................................          -2,336   ...............  ...............          +2,336   ...............
Foreign Currency Program (rescission)..............................            -273   ...............  ...............            +273   ...............
Export credit (rescission).........................................         -20,237   ...............  ...............         +20,237   ...............
Water Bank.........................................................           7,500   ...............  ...............          -7,500   ...............
Voluntary Public Access and Habitat Incentive Program..............  ...............           5,000   ...............  ...............          -5,000
Equal Credit Opportunity Act extension.............................  ...............          40,000   ...............  ...............         -40,000

Sec. 735:\1\
    Emergency Conservation Program (Disaster Relief)...............         122,700   ...............  ...............        -122,700   ...............
    Emergency Forest Restoration (Disaster Relief).................          28,400   ...............  ...............         -28,400   ...............
    Emergency Watershed Protection (Disaster Relief)...............         215,900   ...............  ...............        -215,900   ...............
                                                                    ====================================================================================
      Total, Title VII, General provisions.........................      -1,118,555         -603,000         -796,404         +322,151         -193,404
                                                                    ====================================================================================
      Grand total..................................................     136,840,373      144,233,282      142,182,337       +5,341,964       -2,050,945
          Appropriations...........................................    (136,918,508)    (144,398,282)    (142,512,337)     (+5,593,829)     (-1,885,945)
          Rescissions..............................................       (-445,135)       (-165,000)       (-330,000)       (+115,135)       (-165,000)
          Disaster relief\1\.......................................        (367,000)  ...............  ...............       (-367,000)  ...............
    (By transfer)..................................................        (790,970)        (781,677)        (784,177)         (-6,793)         (+2,500)
    (Loan authorization)...........................................     (40,879,790)     (40,437,264)     (41,809,810)       (+930,020)     (+1,372,546)
    (Limitation on administrative expenses)........................        (177,101)        (180,892)        (180,892)         (+3,791)  ...............
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\Budget Control Act 2011 (Sec. 251(b)(2)(D)/Public Law 112-25)


                                 
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