House Report 113-116 - AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND RELATED AGENCIES APPROPRIATIONS BILL, 2014

[House Report 113-116]
[From the U.S. Government Publishing Office]

113th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 113-116
======================================================================

AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND
RELATED AGENCIES APPROPRIATIONS BILL, 2014

_______

June 18, 2013.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed

_______

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

R E P O R T

together with

MINORITY AND ADDITIONAL VIEWS

[To accompany H.R. 2410]

The Committee on Appropriations submits the following
report in explanation of the accompanying bill making
appropriations for Agriculture, Rural Development, Food and
Drug Administration, and Related Agencies for fiscal year 2014.

OVERVIEW

The fiscal year 2014 discretionary spending in this bill
totals $19,450,000,000, which is a decrease of $1,286,294,000
below the fiscal year 2013 enacted level of $20,736,294,000
(defined as the amount provided within Public Law 113-6 and
excluding emergency funding, disaster relief adjustments, the
251A sequester, and any other adjustments imposed by the Office
of Management and Budget pursuant to section 3004 of Public Law
113-6), and a decrease of $515,818,000 below the budget request
level of $19,965,818,000. The President's request did not
include funding for Food for Peace, Title II grants. Overall,
the bill results in a reduction of more than six percent in
discretionary spending from fiscal year 2013.
The funding levels provided in this appropriations bill
continue to demonstrate how seriously this Committee takes the
responsibility to rein in discretionary spending. The
Committee's actions to reduce spending on the many agencies,
programs, and activities funded in this bill will help address
the Nation's debt, deficit, and economic challenges.

Oversight and Hearings

Consistent with the Committee on Appropriations Oversight
Plan, as approved and transmitted to the Committee on Oversight
and Government Reform and the Committee on House Administration
in January 2013, the Subcommittee began the fiscal year 2014
process by maintaining the Committee's strong commitment to
comprehensive oversight of Federal discretionary spending under
the Subcommittee's jurisdiction. In order to thoroughly review
the President's budget request for fiscal year 2014 and examine
how funds appropriated in previous years had been managed, the
Subcommittee held 11 hearings for the mission areas, agencies,
and programs of the U.S. Department of Agriculture (USDA), the
Food and Drug Administration (FDA), and the Commodity Futures
Trading Commission (CFTC). The hearings included:
USDA Food Safety--March 13, 2013
USDA Food, Nutrition, and Consumer Services--March 14,
2013
USDA Inspector General--March 21, 2013
Commodity Futures Trading Commission--April 12, 2013
Secretary of Agriculture--April 16, 2013
USDA Research, Education, and Economics--April 17, 2013
USDA Marketing and Regulatory Programs--April 18, 2013
USDA Rural Development--April 24, 2013
USDA Natural Resources and Environment--April 24, 2013
USDA Farm and Foreign Agricultural Services--April 25,
2013
Food and Drug Administration--April 26, 2013
The Subcommittee began its fiscal year 2014 hearings with
USDA's Food Safety mission area to investigate the potential
for meat inspector furloughs to limit the nation's meat and
poultry supply and cause economic hardship for livestock and
poultry producers. The Subcommittee next called before it the
Food, Nutrition, and Consumer Services mission area to review
USDA's management of the $103 billion in annual spending for
domestic feeding programs. Unfortunately, these programs have
high rates of waste, fraud, and abuse, and even though spending
on them increases every year, management improvements have been
slow to come. Continuing the discussion, the Subcommittee heard
from USDA's Office of the Inspector General on its work to find
and deter this waste, fraud, and abuse, and to improve the
administration of USDA's numerous agencies and programs. In its
hearing with CFTC, the Subcommittee questioned the agency's
emphasis on hiring staff rather than improving technology
systems to provide the agency a more efficient way to do
business. The Subcommittee took its concerns directly to USDA
Secretary Vilsack regarding the accounting and budget gimmicks
in the budget request that are used to claim savings and sought
answers on the Department's priorities. Agricultural research
is a critical part of USDA and is broadly supported by the
Subcommittee. However, the Subcommittee was disappointed USDA
did not comply with the request for additional information on
certain grant programs so the Subcommittee could improve its
oversight activities. There is a significant opportunity within
USDA's Marketing and Regulatory Program mission area to
increase sales of U.S. agricultural products, thus supporting
U.S. jobs and industry. Yet, the administration nonsensically
proposed to reduce funding for the Animal and Plant Health
Inspection Service (APHIS), which is vital to this effort, and
was discussed in detail in this hearing. The Subcommittee
focused once again on the struggles of the Natural Resources
Conservation Service (NRCS) to right the wrongs in its
financial management and accounting practices and discussed
Rural Development's proposal to reduce funding by $106 million
for its water and waste disposal program, which has a backlog
greater than $3 billion. Rural Development's proposals to
create a new, unproven $55 million grant program through the
appropriations process and cuts for rural housing programs
received skeptical attention. Altogether, the administration's
proposal is bad news for families and communities in rural
America. The Subcommittee discussed how agricultural exports
continue to be a bright spot in our nation's trade balance, but
that the administration failed to capitalize on that success by
doing more in this area. Instead the Department focused on an
effort to move the Food for Peace program from USDA to the U.S.
Agency for International Development; an idea that has little
congressional support. In the final hearing on FDA, the
Subcommittee delved into sequestration in an attempt to
reconcile the conflicting information provided by the agency
and administration regarding sequestration's effect on food and
drug safety.
The Subcommittee will monitor the issues identified and
discussed at the hearings, as well as others relevant to the
management of USDA, FDA, CFTC, and the Farm Credit
Administration and will maintain its oversight efforts
throughout the 113th Congress to ensure taxpayer dollars are
being invested wisely and prudently on behalf of the American
people.

TITLE I

AGRICULTURAL PROGRAMS

Production, Processing, and Marketing

Office of the Secretary

(INCLUDING TRANSFERS OF FUNDS)

2013 appropriation*................................... $45,222,000
2014 budget estimate.................................. 44,148,000
Provided in the bill.................................. 40,516,000
Comparison:
2013 appropriation................................ -4,706,000
2014 budget estimate.............................. -3,632,000

*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

The following table reflects the amount provided by the
Committee for each office and activity:

OFFICE OF THE SECRETARY
[Dollars in Thousands]
------------------------------------------------------------------------
Committee
FY 2013* FY 2014
enacted estimate provision
------------------------------------------------------------------------
Office of the Secretary................ $4,924 $5,086 $4,550
Office of Tribal Relations............. 485 502 498
Office of Homeland Security and 1,458 1,507 1,295
Emergency Coordination................
Office of Advocacy and Outreach........ 1,386 1,217 1,185
Office of the Assistant Secretary for 784 809 820
Administration........................
Departmental Administration............ 23,633 22,993 20,760
Office of the Assistant Secretary for 3,772 3,897 3,504
Congressional Relations...............
Office of Communications............... 8,780 8,137 7,904
--------------------------------
Total............................ $45,222 $44,148 $40,516
------------------------------------------------------------------------
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Office of the Secretary, the Committee provides an
appropriation of $40,516,000. The Committee recommendation
includes the following offices under the Office of the
Secretary: Office of the Secretary; Office of Tribal Relations;
Office of Homeland Security and Emergency Coordination; Office
of Advocacy and Outreach; Office of the Assistant Secretary for
Administration; Departmental Administration; Office of the
Assistant Secretary for Congressional Relations; and Office of
Communications.
Pay Cost.--The Committee does not include requested funding
for a civilian pay increase across the Department. Should the
President provide a civilian pay increase for 2014, it is
assumed that the cost of such a pay increase will be absorbed
within existing appropriations for fiscal year 2014.
CCC Report.--The Committee directs the Secretary to provide
a report on November 15, 2013, and May 16, 2014, on planned
uses of funding under the authorities of Section 4 and Section
11 of the Commodity Credit Corporation Act.
Food Aid Reform.--The bill continues to fund Food for Peace
Title II grants. There is agreement on the goals of reducing
food insecurity around the globe and furthering the national
security interests of the United States. However, there
continues to be disagreement on how to achieve these goals in
the most efficient and effective manner. The program as
currently structured almost doubles the return on the
taxpayer's investment by supporting American jobs and farmers
while contributing to food security abroad. At this time, the
Committee cannot agree to the food aid reform proposal. The
proposed changes could cause the program to operate outside of
the structure, transparency, and dedicated constituencies
provided under the Food for Peace Act.
Notification.--Within 30 days from the enactment of this
Act, the Secretary shall notify the House and Senate Committees
on Appropriations on the allocation of the funds provided to
the Assistant Secretary for Congressional Relations by USDA
agency, along with an explanation for the agency-by-agency
distribution of the funds.
Late Reports.--Reports requested by the House and Senate
Appropriations Committees are an important part of the exercise
of the Committees' oversight mandate. The Committee is
concerned by the Department's consistent delinquency in
completing these reports. The Committee is dismayed that 18
reports are late, due to excessively long reviews, especially
in the Office of the Secretary. The Committee finds it
unacceptable that some reports are almost a year overdue. The
dates and directives specified in the House, Senate, or
conference report are mandatory. The Committee reserves the
right to call before it any agency that does not submit its
report or reports on time.
State Office Collocation.--The Committee continues to
direct that any reallocation of resources related to the
collocation of state offices scheduled for 2014 and subsequent
years is subject to the Committee's reprogramming procedures.
Administrative Provision.--The Committee directs the
Secretary to advise the Committees on Appropriations, through
the Office of Budget and Program Analysis, of the status of all
reports requested of the Department in this bill at the time of
submission of the fiscal year 2015 budget and monthly
thereafter. The Committee reminds the Secretary that all
correspondence related to the directives in this bill must be
addressed to the Committee on Appropriations.
Loan and Grant Programs.--The Committee directs the
Department, through the Office of Budget and Program Analysis,
to provide quarterly reports to the Committees on
Appropriations of the House of Representatives and the Senate
on the status of obligations and funds availability for the
loan and grant programs provided in this bill.
The Committee further directs that if an estimate of loan
activity for any program funded in Titles I and III of this
bill indicates that a limitation on authority to make
commitments for a fiscal year will be reached before the end of
that fiscal year, or in any event whenever 75 per centum of the
authority to make commitments has been utilized, the Secretary
shall promptly notify the Committees in writing, through the
Office of Budget and Program Analysis.
Invasive Species.--The Committee recognizes the threats
posed by invasive plant species and the need to protect,
restore, and enhance native plants, including those that are
endangered or threatened. The Committee encourages the
Agricultural Research Service, the Natural Resources
Conservation Service, and the National Institute of Food and
Agriculture to support the research, education, and
conservation of native plants.
BioPreferred Program.--The Committee directs the Department
to expeditiously implement changes to the program to include
forest products that meet the biobased content requirements as
included in the 2013 farm bill.
Farmer-Owned Cooperatives.--The Committee recognizes USDA's
long track record working with farmer-owned cooperatives and
encourages the Secretary to share the Deparment's knowledge and
best practices with other Federal agencies that have
cooperative development programs.
Flexibility in Loan and Loan Guarantee Levels.--The bill
includes language to exceed by up to 25 percent the limitation
on loan and loan guarantee levels without budget authority upon
written notification to the Committees on Appropriations.

Executive Operations

OFFICE OF THE CHIEF ECONOMIST

2013 appropriation*................................... $15,606,000
2014 budget estimate.................................. 12,854,000
Provided in the bill.................................. 15,245,000
Comparison:
2013 appropriation................................ -361,000
2014 budget estimate.............................. +2,391,000

*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Office of the Chief Economist, the Committee
provides an appropriation of $15,245,000.
Drought Resilience.--The Committee recognizes the
importance of understanding and being prepared for drought and
encourages the Office of the Chief Economist to continue to
work with partners on drought-related issues.
Policy Research.--The Committee includes $4,000,000 for
policy research under 7 U.S.C. 3155 for entities with existing
institutional capacity, including staff, databases, models, and
long-term, well-documented experience, to conduct complex
economic and baseline analysis for the benefit of USDA, the
Congressional Budget Office, and the Congress.

NATIONAL APPEALS DIVISION

2013 appropriation*................................... $13,868,000
2014 budget estimate.................................. 12,940,000
Provided in the bill.................................. 12,584,000
Comparison:
2013 appropriation................................ -1,284,000
2014 budget estimate.............................. -356,000

*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the National Appeals Division, the Committee provides
an appropriation of $12,584,000.

OFFICE OF BUDGET AND PROGRAM ANALYSIS

2013 appropriation*................................... $8,822,000
2014 budget estimate.................................. 11,129,000
Provided in the bill.................................. 8,767,000
Comparison:
2013 appropriation................................ -55,000
2014 budget estimate.............................. -2,362,000

*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Office of Budget and Program Analysis, the
Committee provides an appropriation of $8,767,000.

Office of the Chief Information Officer

2013 appropriation*................................... $42,925,000
2014 budget estimate.................................. 44,159,000
Provided in the bill.................................. 42,925,000
Comparison:
2013 appropriation................................ - - -
2014 budget estimate.............................. -1,234,000

*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Office of the Chief Information Officer, the
Committee provides an appropriation of $42,925,000.
Cybersecurity Priorities.--The Committee continues to be
concerned with the shortcomings in information technology (IT)
security efforts at USDA. Despite recent Congressional
investments and progress under new OCIO leadership, USDA's
Office of Inspector General's independent evaluation of USDA's
IT security program and practices in 2012 revealed continued
material weaknesses in the design and effectiveness of USDA's
overall IT security program. The Committee directs USDA to
report to the Committee no later than 60 days after the date of
enactment on the most recent efforts and progress made toward
securing IT data and infrastructure from cyber threats.

Office of the Chief Financial Officer

2013 appropriation*................................... $6,090,000
2014 budget estimate.................................. 6,243,000
Provided in the bill.................................. 6,090,000
Comparison:
2013 appropriation................................ - - -
2014 budget estimate.............................. -153,000

*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Office of the Chief Financial Officer, the
Committee provides an appropriation of $6,090,000.
Assessments.--The Committee remains concerned that the
assessments the Department charges its agencies for government-
and department-wide activities continue to escalate. Since
these assessments are borne by the agencies, and Congress did
not specifically provide increases to the agencies for these
costs, most of the funding for the increase has come at the
expense of programs. The Committee continues to direct the
Office of the Chief Financial Officer to scrutinize the need
for each activity, to consider its benefit to the mission of
each agency, and to limit spending wherever possible,
especially in regards to assessments for the creative media and
broadcast center; promotional, voluntary activities; and
activities not specifically authorized by Congress.

Office of the Assistant Secretary for Civil Rights

2013 appropriation*................................... $871,000
2014 budget estimate.................................. 898,000
Provided in the bill.................................. 871,000
Comparison:
2013 appropriation................................ - - -
2014 budget estimate.............................. -27,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Office of the Assistant Secretary for Civil Rights,
the Committee provides an appropriation of $871,000.

Office of Civil Rights

2013 appropriation*................................... $22,122,000
2014 budget estimate.................................. 21,550,000
Provided in the bill.................................. 20,540,000
Comparison:
2013 appropriation................................ -1,582,000
2014 budget estimate.............................. -1,010,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Office of Civil Rights, the Committee provides an
appropriation of $20,540,000.

Agriculture Buildings and Facilities

(INCLUDING TRANSFERS OF FUNDS)

2013 appropriation*................................... $239,686,000
2014 budget estimate.................................. 233,095,000
Provided in the bill.................................. 64,658,000
Comparison:
2013 appropriation................................ -175,028,000
2014 budget estimate.............................. -168,437,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

For Agriculture Buildings and Facilities, the Committee
provides an appropriation of $64,658,000. Section 732 requires
the agencies to fund GSA rental payments from within the
discretionary levels appropriated in this Act. The Committee is
concerned that GSA rental expenses have risen by more than
thirty-three percent over the past ten years, and without more
agency attention to these costs, GSA rent will continue to
increase. By requiring agencies to bear the expense of GSA rent
directly, the Committee expects agencies to focus on ways to
reduce these costs.
The following table represents the Committee's specific
recommendations for this account:

[Dollars in Thousands]
------------------------------------------------------------------------
2013 2014 budget Committee
enacted* request recommendation
------------------------------------------------------------------------
Rental Payments................. $175,694 $164,270 - - -
Department of Homeland Security
Building Security............... 13,134 14,000 $13,800
Building Operations............. 50,858 54,825 50,858
Total........................... 239,686 233,095 64,658
------------------------------------------------------------------------
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

Hazardous Materials Management

(INCLUDING TRANSFERS OF FUNDS)

2013 appropriation*................................... $3,892,000
2014 budget estimate.................................. 3,600,000
Provided in the bill.................................. 3,520,000
Comparison:
2013 appropriation................................ -372,000
2014 budget estimate.............................. -80,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For Hazardous Materials Management, the Committee provides
an appropriation of $3,520,000.

Office of Inspector General

2013 appropriation*................................... $86,779,000
2014 budget estimate.................................. 89,902,000
Provided in the bill.................................. 86,779,000
Comparison:
2013 appropriation................................ - - -
2014 budget estimate.............................. -3,123,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Office of Inspector General, the Committee provides
an appropriation of $86,779,000.
Anti-Fraud Efforts.--The Committee appreciates OIG's
continued efforts to raise public awareness of successful
Federal investigations of fraud. Such efforts are intended to
deter participants from engaging in the misuse of taxpayer
dollars and to maintain a high level of integrity in all of
USDA's programs. The Committee encourages OIG to expand its
efforts, working with all of USDA's agencies to deter fraud,
waste, and abuse in the Department's programs.

Office of the General Counsel

2013 appropriation*................................... $43,941,000
2014 budget estimate.................................. 45,014,000
Provided in the bill.................................. 40,558,000
Comparison:
2013 appropriation................................ -3,383,000
2014 budget estimate.............................. -4,456,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For Office of the General Counsel, the Committee provides
an appropriation of $40,558,000.

Office of Ethics

2013 appropriation*................................... $3,319,000
2014 budget estimate.................................. - - -
Provided in the bill.................................. 3,337,000
Comparison:
2013 appropriation................................ +18,000
2014 budget estimate.............................. +3,337,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Office of Ethics, the Committee provides an
appropriation of $3,337,000.

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

COMMITTEE PROVISIONS

For the Office of the Under Secretary for Research,
Education, and Economics, the Committee provides an
appropriation of $871,000.
Brown Marmorated Stink Bug.--The Committee appreciates the
continuing work of ARS and NIFA regarding the Brown Marmorated
Stink Bug. This pest is causing significant damage to
agricultural crops, particularly the apple crop in the mid-
Atlantic States, and has spread to more than 30 States and the
District of Columbia. The Committee encourages ARS and NIFA to
work collaboratively with APHIS and state partners to identify
and implement appropriate controls.
Herbicide Resistance Research.--The Committee encourages
ARS and NIFA to address herbicide resistance through research,
education, and extension. Research may include: identification
of herbicide resistant weed populations, characterization of
mechanisms of resistance, and development of innovative weed
management strategies. The Committee encourages ARS and NIFA to
work closely with NRCS and to incorporate, where appropriate,
the conservation technical and financial assistance available
to producers for adopting resistance management strategies.
Lyme Disease Research.--The Committee recognizes the
importance of the ongoing research efforts of ARS and NIFA
regarding tick-borne illnesses. As the agency continues to
build upon its research efforts to protect humans and livestock
from tick-borne illnesses, the Committee encourages the ARS, in
conjunction with other agencies, to maintain its efforts and
consider both the human and economic impacts of Lyme disease on
communities in the United States.

Economic Research Service

2013 appropriation*................................... $75,452,000
2014 budget estimate.................................. 78,506,000
Provided in the bill.................................. 75,452,000
Comparison:
2013 appropriation................................ - - -
2014 budget estimate.............................. -3,054,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Economic Research Service, the Committee provides
an appropriation of $75,452,000.
Local and Regional Food Production.--The Committee directs
ERS to coordinate USDA's agencies involved in data collection,
analysis, and research to make available the best data related
to the production, pricing, distribution, and marketing of
locally and regionally produced agricultural products and to
identify data gaps. The Committee requests that ERS provide a
report that assesses the scope and trends in local and regional
food systems and to make that report publically available on
the agency's website.

National Agricultural Statistics Service

2013 appropriation*................................... $174,967,000
2014 budget estimate.................................. 159,601,000
Provided in the bill.................................. 154,762,000
Comparison:
2013 appropriation................................ -20,205,000
2014 budget estimate.............................. -4,839,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the National Agricultural Statistics Service, the
Committee provides an appropriation of $154,762,000, of which
$42,295,000 is for the Census of Agriculture.
NASS Reports.--The Committee requests NASS to report to the
Committees on Appropriations of the House and Senate on the
resources required to restart surveys and reports for those
commodities that do not have marketing orders or other publicly
supported production information by March 1, 2014.

Agricultural Research Service

SALARIES AND EXPENSES

2013 appropriation*................................... $1,074,163,000
2014 budget estimate.................................. 1,124,003,000
Provided in the bill.................................. 1,074,163,000
Comparison:
2013 appropriation................................ - - -
2014 budget estimate.............................. -49,840,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For Salaries and Expenses of the Agricultural Research
Service, the Committee provides an appropriation of
$1,074,163,000.
The Committee concurs with the agency's proposed
redirection of ongoing research within the same location. The
Committee directs ARS to maintain existing investments before
beginning any new initiatives.
Aerial Application Research.--The Committee recognizes the
importance of the 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.
Cheat Grass Eradication.--The Committee encourages ARS to
continue research on cheat grass eradication, control, and the
reduction of fuel loads, including late-season grazing
techniques, and to work with the NRCS on this effort.
Citrus Greening Disease Research.--The Committee commends
ARS's research efforts on citrus greening disease and
encourages the agency to continue working to develop methods to
reduce transmission and enhance immunity in citrus trees and to
work with industry, universities, growers, and other partners
to develop effective control mechanisms.
Classical Plant Breeding.--The Committee is aware of the
need for 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.
Domestic and Bighorn Sheep.--The Committee recognizes the
challenges caused by infectious disease problems arising from
wildlife-domestic animal agriculture interactions, particularly
between domestic sheep and wild bighorn sheep. Research has
recently produced an experimental vaccine to protect bighorn
populations from disease but much work still needs to be done
in this area. The Committee encourages ARS to work to determine
the role of domestic sheep in causing die-offs of bighorn sheep
from respiratory disease and develop methods to reduce
transmission and enhance immunity.
Emerging Cereal Rust Diseases.--The Committee continues to
be concerned about emerging cereal rust diseases, particularly
Ug99, and the threat they pose to domestic and world food
supplies. The Committee encourages ARS to continue its work on
these diseases, including the development of Ug99-resistant
wheat varieties.
Food Pathogen Detection.--The Committee notes the advances
in the detection of dangerous pathogens in the food supply and
encourages ARS to continue research to increase the efficiency
and cost-effectiveness of new technologies.
FOV Race 4 Cotton Research.--The Committee recognizes the
serious threat that fusarium oxysporum f. sp. Vasinfectum
(FOV), particularly the strain FOV Race 4, poses to the U.S.
cotton industry. The Committee encourages ARS to continue
research efforts to combat FOV Race 4 and to work with industry
and other partners to develop effective control measures to
eradicate this disease and prevent its spread nationwide.
Horticultural Research and Education.--The Committee
recognizes that the U.S. National Arboretum has completed a
comprehensive strategic plan. This plan emphasizes the role of
the Arboretum as a center of discovery and education, as well
as a destination for more than half a million visitors every
year. This plan effectively captures the essence of the value
of the Arboretum, and the Committee urges ARS to exercise
existing authorities and provide the necessary resources to
support implementation of the plan's goals. The Committee
requests a report on the progress toward implementation of the
Arboretum's Strategic Plan by March 1, 2014.
Human Nutrition Research.--The Committee remains concerned
about the high rate of obesity in the Nation and believes that
research on human nutrition to help prevent childhood obesity
and the medical issues related to obesity are important. In
addition, there is strong evidence that nutrition plays a vital
role in how a person ages. The Committee encourages ARS to
continue research relating both to childhood and adult obesity
as well as the effect of nutrition on aging.
Lower Mississippi River Basin.--The Committee recognizes
the groundwater problems in the Lower Mississippi River Basin
and encourages ARS to continue research to quantify how
appropriate use of conservation practices and technology affect
water quantity.
National Agricultural Library.--The Committee requests that
ARS maintain a focus on agriculture-related legal issues within
the National Agricultural Library. The Committee recognizes
agriculture-related legal issues are being litigated on an
increasingly frequent basis, the complexity and scope of these
legal issues continues to broaden, and that the National
Agricultural Library plays an important role in assisting all
stakeholders understand these issues.
Natural Products Research.--The Committee recognizes the
importance of developing natural products for use in
agriculture in order to produce more toxicologically and
environmentally benign pest management tools and to improve the
nutriceutical value of crops.
New England Plant, Soil, and Water Research.--The Committee
directs ARS to report on its efforts to meet the challenges
faced by farmers and ranchers in New England and make any
recommendations to the Committees on Appropriations of the
House and Senate by March 1, 2014.
Office of Pest Management Policy.--The Committee commends
the Office of Pest Management Policy for its work providing the
Department, other Federal agencies, producers, and others
scientifically sound analysis of pest management issues
important to agriculture, especially methyl bromide transition
and pesticide resistance, and encourages the agency to continue
to support this office.
Research on Sediments.--The Committee recognizes the
importance of finding solutions to the problems associated with
soil erosion, including erosion and sedimentation in stream
channels and the loss of nutrients and agricultural chemicals
from farm fields.
Wheat and Barley Scab Initiative.--The Committee expresses
support for this initiative and directs the agency to continue
research on wheat and barley scab and related issues.

BUILDINGS AND FACILITIES

2013 appropriation*................................... - - -
2014 budget estimate.................................. $155,000,000
Provided in the bill.................................. - - -
Comparison:
2013 appropriation................................ - - -
2014 budget estimate.............................. -155,000,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For ARS Buildings and Facilities, the Committee is unable
to provide funding for new construction due to the tight budget
cap.

National Institute of Food and Agriculture

RESEARCH AND EDUCATION ACTIVITIES

2013 appropriation*................................... $720,076,000
2014 budget estimate.................................. 801,140,000
Provided in the bill.................................. 718,714,000
Comparison:
2013 appropriation................................ -1,362,000
2014 budget estimate.............................. -82,426,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For Research and Education Activities, the Committee
provides an appropriation of $718,714,000.
Agricultural Research Enhancement Awards.--The Committee
continues to direct that not less than 10 percent of the
competitive research grant funds be used for USDA's agriculture
research enhancement awards program, including USDA-EPSCoR, in
accordance with 7 U.S.C. 450i.
Aquaculture Research.--The Committee recognizes the
importance of the domestic aquaculture industry and encourages
NIFA to fund research related to genetics, disease, systems,
and economics.
Budget Request for Fiscal Year 2015.--For the fiscal year
2015 budget request, the Committee directs the Department to
include in the budget funding levels proposed to be allocated
to and the expected publication date, scope, and allocation
level for each request for awards to be published under (1)
each priority area specified in section 2(b)(2) of the
Competitive, Special, and Facilities Research Grant Act (7
U.S.C. 450i(b)(2)); (2) each research and extension project
carried out under section 1621(a) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5811(a)); (3)
each grant awarded under section 1672B(a) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
5925b(a)); (4) each research, education, and extension project
carried out under section 406 of the Research Reform Act of
1998 (7 U.S.C. 7626); and (5) each research and extension
project carried out under section 412 of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7 U.S.C.
7632). The term `request for awards' means a funding
announcement published by NIFA that provides detailed
information on funding opportunities at the Institute,
including the purpose, eligibility, restrictions, focus areas,
evaluation criteria, regulatory information, and instructions
on how to apply for such opportunities.
Grants for Insular Areas.--The Committee provides
authorization for Grants for Insular Areas to be used to
upgrade agriculture and food sciences facilities and equipment
in addition to being used for resident instruction and distance
education programs at the land-grant institutions in the
Insular Areas.
Livestock and Poultry Waste Research.--The Committee
recognizes the benefits of improved methods of managing animal
waste in livestock and poultry production and encourages NIFA
to support research and development of innovative technologies,
particularly those that are operationally and economically
feasible and have a high probability of widespread
implementation.
Program Consolidation and Streamlining.--The Committee
accepts NIFA's proposal to consolidate sustainable agriculture
programs and pest management programs.
Regional Research.--The Committee recognizes that State and
regional research has a history of success in addressing
critical pest, disease, and production problems specific to
their region, and that these programs help producers across the
Nation remain productive.
STEM Initiatives.--The Committee recognizes the importance
of programs to advance the education and training of minorities
in STEM careers for the Nation's national and economic security
and encourages NIFA to continue to support these initiatives.
STEM Program Effectiveness.--The Committee is concerned
about STEM workforce development for underrepresented
minorities and notes the National Academy of Science's
recommendations for increasing the participation and success of
minority students. The Committee encourages the Department to
emphasize STEM education improvement with the Historically
Black Colleges and Universities.
The following table reflects the amount provided by the
Committee:

RESEARCH AND EDUCATION ACTIVITIES
[Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
2013 2014 Committee
Program/Activity Authorization enacted estimate provision
----------------------------------------------------------------------------------------------------------------
Hatch Act 7 U.S.C. 361a-i................. $230,394 $236,334 $236,334
McIntire-Stennis Cooperative Forestry Act 16 U.S.C. 582a through a-7...... 32,106 32,934 32,934
Research at 1890 Institutions (Evans-Allen 7 U.S.C. 3222................... 49,619 50,898 50,898
Program)
Payments to the 1994 Institutions............ 534(a)(1) of P.L. 103-382....... 3,251 3,335 3,335
Education Grants for 1890 Institutions....... 7 U.S.C. 3152(b)................ 18,850 19,336 19,336
Education Grants for Hispanic-Serving 7 U.S.C. 3241................... 8,987 9,219 9,219
Institutions.
Education Grants for Alaska Native and Native 7 U.S.C. 3156................... 3,114 3,194 3,194
Hawaiian-Serving Institutions
Research Grants for 1994 Institutions........ 536 of P.L. 103-382............. 1,756 1,801 1,801
Capacity Building for Non Land-Grant Colleges 7 U.S.C. 3319i.................. 4,387 - - - - - -
of Agriculture
Grants for Insular Areas..................... 7 U.S.C. 3222b-2, 3363 and 3362. 1,609 1,650 1,800
Agriculture and Food Research Initiative..... 7 U.S.C. 450i(b)................ 290,468 383,376 290,657
Veterinary Medicine Loan Repayment........... 7 U.S.C. 3151a.................. 4,670 4,790 4,790
Continuing Animal Health and Disease Research 7 U.S.C. 3195................... 3,899 - - - 4,000
Program
Supplemental and Alternative Crops........... 7 U.S.C. 3319d.................. 804 - - - - - -
Critical Agricultural Materials Act.......... 7 U.S.C. 178 et seq............. 1,054 - - - - - -
Multicultural Scholars, Graduate Fellowship 7 U.S.C. 3152(b)................ 8,774 - - - 9,000
and Institution Challenge Grants
Secondary and 2-year Post-Secondary Education 7 U.S.C. 3152(j)................ 877 - - - 900
Aquaculture Centers.......................... 7 U.S.C. 3322................... 3,899 3,920 3,920
Sustainable Agriculture Research and 7 U.S.C. 5811................... 14,107 22,667 19,049
Education.
Farm Business Management..................... 7 U.S.C. 5925f.................. 1,414 - - - - - -
Sun Grant Program............................ 7 U.S.C. 8114................... 2,437 - - - - - -
Improved Pest Control:
Expert IPM Decision Support System....... 7 U.S.C. 450i(c)................ 149 - - - - - -
Integrated Pest Management............... ................................ 2,303 - - - - - -
Minor Crop Pest Management (IR-4)........ ................................ 11,614 11,913 11,913
Pest Management Alternatives............. ................................ 1,367 - - - - - -
--------------------------------
Total, Improved Pest Control........... ................................ 15,433 11,913 11,913
Special Research Grants:
Global Change/UV Monitoring.............. 7 U.S.C. 450i(c)................ 1,370 1,405 1,405
Potato Research.......................... ................................ 1,316 - - - - - -
Forest Products Research................. ................................ 1,609 - - - - - -
--------------------------------
Total, Special Research Grants......... ................................ 4,295 1,405 1,405
Necessary Expenses of Research and Education
Activities:
Grants Management Systems................ ................................ 7,633 7,830 7,830
Federal Administration--Other Necessary ................................ 6,239 6,538 6,399
Expenses for Research and Education
Activities
--------------------------------
Total, Necessary Expenses.............. ................................ 13,872 14,368 14,229
================================
Total, Research and Education ................................ 720,076 801,140 718,714
Activities.
----------------------------------------------------------------------------------------------------------------

NATIVE AMERICAN INSTITUTIONS ENDOWMENT FUND

2013 appropriation*................................... ($11,880,000)
2014 budget estimate.................................. (11,880,000)
Provided in the bill.................................. (11,880,000)
Comparison:
2013 appropriation................................ - - -
2014 budget estimate.............................. - - -
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Native American Institutions Endowment Fund, the
Committee provides $11,880,000.
The Committee notes that the endowment fund has a cost of
$5,000,000 for fiscal year 2014.

EXTENSION ACTIVITIES

2013 appropriation*................................... $463,896,000
2014 budget estimate.................................. 459,037,000
Provided in the bill.................................. 459,011,000
Comparison:
2013 appropriation................................ -4,885,000
2014 budget estimate.............................. -26,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For Extension Activities, the Committee provides an
appropriation of $459,011,000.
EFNEP and Persons with Disabilities.--The Committee
recognizes the importance of agricultural education and
vocational training for persons with developmental disabilities
and encourages collaborations between non-profit organizations
and elementary and secondary schools. In particular, the
Committee encourages NIFA to use the Expanded Food and
Nutrition Education Program to explore opportunities to support
initiatives that strive to provide agricultural education and
vocational experiences by pairing schools with non-profit
organizations dedicated to improving the lives of persons with
disabilities.
The following table reflects the amount provided by the
Committee:

NATIONAL INSTITUTE OF FOOD AND AGRICULTURE

EXTENSION ACTIVITIES

[Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
FY 2013 FY 2014 Committee
Program/Activity Authorization enacted estimate provision
----------------------------------------------------------------------------------------------------------------
Smith-Lever Act, Section 3(b) and (c) 7 U.S.C. 343(b) and (c) and $286,612 $294,000 $294,000
programs and Cooperative Extension 208(c) of P.L. 93-471.
Extension Services at 1890 Institutions...... 7 U.S.C. 3221................... 41,522 42,592 42,592
Extension Services at 1994 Institutions...... 7 U.S.C. 343(b)(3).............. 4,204 4,312 4,312
Facility Improvements at 1890 Institutions... 7 U.S.C. 3222b.................. 19,234 19,730 19,730
Renewable Resources Extension Act............ 16 U.S.C. 1671 et. seq.......... 3,607 4,060 3,700
Rural Health and Safety Education Programs... 7 U.S.C. 2662(i)................ 1,462 - - - - - -
Food Animal Residue Avoidance Database 7 U.S.C. 7642................... 975 - - - 1,250
Program.
Women and Minorities in STEM Fields.......... 7 U.S.C. 5925................... 390 - - - 400
Grants to Youth Organizations................ 7 U.S.C. 7630................... 711 - - - - - -
Smith-Lever Act, Section 3(d):
Food and Nutrition Education............. 7 U.S.C. 343(d)................. 66,227 67,934 67,934
Pest Management.......................... ................................ 9,669 - - - - - -
Farm Safety and Youth Farm Safety ................................ 4,494 4,610 4,610
Education Programs
New Technologies for Agricultural ................................ 1,511 1,750 1,550
Extension.
Children, Youth, and Families at Risk.... ................................ 7,409 8,395 7,600
Federally Recognized Tribes Extension ................................ 2,963 3,039 3,039
Program.
Sustainable Agriculture Programs......... ................................ 4,578 - - - - - -
--------------------------------
Total, Section 3(d).................... ................................ 96,851 85,728 84,733
Necessary Expenses of Extension Activities:
Agriculture in the K-12 Classroom........ ................................ 538 - - - 552
Federal Administration--Other Necessary ................................ 7,790 8,615 7,742
Expenses for Extension Activities
--------------------------------
Total, Necessary Expenses.............. ................................ 8,328 8,615 8,294
================================
Total, Extension Activities.......... ................................ 463,896 459,037 459,011
----------------------------------------------------------------------------------------------------------------

INTEGRATED ACTIVITIES

2013 appropriation*................................... $20,942,000
2014 budget estimate.................................. 28,129,000
Provided in the bill.................................. 31,137,000
Comparison:
2013 appropriation................................ +10,195,000
2014 budget estimate.............................. +3,008,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For Integrated Activities, the Committee provides an
appropriation of $31,137,000. The following table reflects the
amount provided by the Committee.

NATIONAL INSTITUTE OF FOOD AND AGRICULTURE

INTEGRATED ACTIVITIES

(Dollars in Thousands)
----------------------------------------------------------------------------------------------------------------
FY 2013 FY 2014 Committee
Program/activity Authorization enacted estimate provision
----------------------------------------------------------------------------------------------------------------
Water Quality Program................................. 7 U.S.C. 7626 $4,387 - - - - - -
Regional Pest Management Centers...................... 7 U.S.C. 7626 3,899 - - - - - -
Methyl Bromide Transition Program..................... 7 U.S.C. 7626 1,946 - - - $1,996
Organic Transition Program............................ 7 U.S.C. 7626 3,899 $4,000 4,000
Regional Rural Development Centers.................... 7 U.S.C. 450i(c) 973 998 998
Food and Agriculture Defense Initiative............... 7 U.S.C. 3351 5,838 5,988 7,000
Crop Protection/Pest Management Program............... 7 U.S.C. 7626 - - - 17,143 17,143
---------------------------------------------------------
Total, Integrated Activities...................... 20,942 28,129 31,137
----------------------------------------------------------------------------------------------------------------

Office of the Under Secretary for Marketing and Regulatory Programs

COMMITTEE PROVISIONS

For the Office of the Under Secretary for Marketing and
Regulatory Programs, the Committee provides an appropriation of
$871,000.

Animal and Plant Health Inspection Service

SALARIES AND EXPENSES

(INCLUDING TRANSFERS OF FUNDS)

2013 appropriation*................................... $801,198,000
2014 budget estimate.................................. 797,601,000
Provided in the bill.................................. 803,538,000
Comparison:
2013 appropriation................................ +2,340,000
2014 budget estimate.............................. +5,937,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Animal and Plant Health Inspection Service,
Salaries and Expenses, the Committee provides an appropriation
of $803,538,000.
The following table reflects the amounts provided by the
Committee:
Committee provision

Animal Health Technical Services........................ $34,500,000
Aquatic Animal Health................................... 2,272,000
Avian Health............................................ 52,340,000
Cattle Health........................................... 93,000,000
Equine, Cervid, and Small Ruminant Health............... 19,169,000
National Veterinary Stockpile........................... 2,750,000
Swine Health............................................ 23,000,000
Veterinary Biologics.................................... 16,457,000
Veterinary Diagnostics.................................. 31,611,000
Zoonotic Disease Management............................. 9,023,000
--------------------------------------------------------
____________________________________________________
Subtotal, Animal Health............................. 284,122,000

Agricultural Quarantine Inspection (Appropriated)....... 25,298,000
Cotton Pests............................................ 12,720,000
Field Crop & Rangeland Ecosystem Pests.................. 8,877,000
Pest Detection.......................................... 27,500,000
Plant Protection Methods Development.................... 20,673,000
Specialty Crop Pests.................................... 148,489,000
Tree & Wood Pests....................................... 48,290,000
--------------------------------------------------------
____________________________________________________
Subtotal, Plant Health.............................. 291,847,000

Wildlife Damage Management.............................. 86,104,000
Wildlife Services Methods Development................... 19,000,000
--------------------------------------------------------
____________________________________________________
Subtotal, Wildlife Services......................... 105,104,000

Animal & Plant Health Regulatory Enforcement............ 16,275,000
Biotechnology Regulatory Services....................... 18,215,000
--------------------------------------------------------
____________________________________________________
Subtotal, Regulatory Services....................... 34,490,000

Contingency Fund........................................ - - -
Emergency Preparedness & Response....................... 17,000,000
--------------------------------------------------------
____________________________________________________
Subtotal, Safeguarding and Emergency Preparedness... 17,000,000

Agriculture Import/Export............................... 14,181,000
Overseas Technical and Trade Operations................. 20,114,000
--------------------------------------------------------
____________________________________________________
Subtotal, Safe Trade & International Technical
Assistance........................................ 34,295,000

Animal Welfare.......................................... 27,087,000
Horse Protection........................................ 500,000
--------------------------------------------------------
____________________________________________________
Subtotal, Animal Welfare............................ 27,587,000

APHIS Information Technology Infrastructure............. 4,167,000
Physical/Operational Security........................... 4,926,000
--------------------------------------------------------
____________________________________________________
Subtotal, Agency Management......................... 9,093,000
========================================================
____________________________________________________
Total, Salaries & Expenses...................... 803,538,000

Animal Welfare.--The bill funds the Animal Welfare program
at $27,587,000, in order to ensure that minimum standards of
care and treatment are provided for certain animals bred for
commercial sale, used in research, transported commercially, or
exhibited to the public.
Brown Marmorated Stink Bug.--The Committee is aware of the
growing threat to fruits, vegetables, other crops, and
ornamentals throughout the mid-Atlantic region from the Brown
Marmorated Stink Bug. It has been found in more than 30 States
and the District of Columbia. The Committee directs APHIS to
treat this pest as a priority and to continue to assist ARS,
NIFA, and state partners with biological control technology
once such tools are available.
Budget Restructure.--The Committee does not support the
request in the President's fiscal year 2014 budget for APHIS to
fund two separate accounts for Equine and Cervid Health and
Sheep and Goat Health.
Cervid Health.--The latest data from 2007 indicate that the
cervid industry in the U.S. accounts for 5,600 deer farms and
1,900 elk farms, has an economic value of $894 million, and
supports nearly 30,000 jobs. This industry is currently
adapting to a 2012 interim final rule that established a
national, voluntary herd certification program (HCP) that
provides uniform herd certification standards and will support
the domestic and international marketability of U.S. cervid
herds. The Committee believes that the industry requires
additional support to ensure that the newly implemented chronic
wasting disease HCP is successful. Therefore, APHIS should
spend no less than $3,000,000 for cervid health activities.
Within the funds provided, APHIS should give consideration to
indemnity payments if warranted.
Citrus Health Response Program (CHRP).--CHRP is a
nationwide effort to protect the U.S. industry from the ravages
of invasive pests and diseases. Funds provided for this program
allow APHIS to partner with States and local entities to
address the challenges of a disease-spreading vector until a
cure can be developed. In addition to the funds provided in
this account, the Committee encourages APHIS to utilize the
funds available in the Plant Pest and Disease Management and
Disaster Prevention account to the greatest extent possible in
an attempt to sustain the economic viability of the citrus
industry.
APHIS Cargo Release.--The Committee recommends that USDA/
APHIS continue to work with the Department of Homeland
Security's Custom and Border Protection (CBP) in order to
facilitate the release of cargo at commercial import facilities
by ensuring that CBP inspectors and managers earn Cargo Release
Authority certification for those non-reportable species and
groups of organisms listed in the Cargo Release Plan. Such
coordination will allow CBP officials to release cargo where
CBP may find very distinctive organisms not of agricultural
significance and allow APHIS entomologists, plant pathologists,
and botanists to make release decisions upon discovery of those
reportable organisms that may pose a threat to the Nation's
agricultural security.
Cost Sharing with States and Other Cooperators.--The
Committee directs APHIS to maximize the use of cost sharing
agreements or matching requirements with States, Territories,
producers, foreign governments, non-governmental organizations,
and any other recipient of services in order to reduce the cost
burden on the agency.
Cotton Pests.--The Committee is concerned about the
reappearance of the boll weevil in certain portions of the
United States. The Boll Weevil Eradication Program has
successfully eradicated the boll weevil from all U.S. cotton
areas except for the extreme lower parts of Texas in the Lower
Rio Grande Valley (LRGV) bordering Tamaulipas, Mexico. The LRGV
continues an active battle to eradicate the boll weevil. The
LRGV also serves as the barrier between Mexico and boll weevil-
free areas of the United States. The Department is directed to
work with the U.S. cotton industry to develop a plan of action
to protect the United States from re-infestation and report its
findings to the Committee not less than 120 days after
enactment of this bill.
Danger Pay.--The Committee recognizes the concern of those
employees in areas designated by the Department of State as a
Section 920 post and encourages APHIS to determine compensation
of employees in Section 920 areas similarly.
Designated Qualified Person Program.--The Committee directs
APHIS to maintain transparency and consistency in the
enforcement of the Horse Protection Act when dealing with the
regulated industry.
Emerging Plant Pests.--The Committee expects the Secretary
to continue to use the authority provided in this bill to
transfer funds from the Commodity Credit Corporation (CCC) for
the arrest and eradication of animal and plant pests and
diseases that threaten American agriculture. By providing funds
in this account, the Committee is enhancing, not replacing, the
use of CCC funding for emergency outbreaks.
Feral Swine Management.--The Committee is aware of the
growing economic and ecological damage caused by feral swine
across the United States. Conservative estimates indicate feral
swine are present in 44 States, and agricultural losses and
control efforts cost $1.5 billion annually. The Committee
understands that computer models have shown that lethal methods
combined with contraception could significantly reduce feral
swine populations over several years. In addition to the
Committee's support for the Department's proposed increased
funding for feral swine management, the Committee encourages
Wildlife Services to explore development and field testing of
non-hormonal, species-specific oral contraceptives, such as
phaged-peptide constructs.
Huanglongbing.--The Committee encourages APHIS to support
its state partners through exclusion and eradication activities
associated with the Asian Citrus Psyllid, the primary vector of
the bacterium that causes Huanglongbing/citrus greening
disease. In addition, the agency should continue to work with
ARS, citrus-producing States, industry stakeholders, and
universities on their research efforts to develop additional
control mechanisms.
National Poultry Improvement Plan.--The Committee supports
the cooperative efforts of USDA, States, academia, and industry
as part of the National Poultry Improvement Plan (NPIP). NPIP
is internationally recognized as an independent, government
poultry disease control program. Sufficient resources are
included to staff the national office, administer the program,
and to ensure that the NPIP continues its vital, successful
role in protecting this important industry and source of high
quality protein-rich foods for domestic and international
markets. Through the program's collaborative efforts, NPIP
effectively and efficiently protects the quality, productivity,
and economic viability of the $200 billion U.S. poultry
industry and the nearly 900,000 jobs associated with it.
Phytopthora ramorum.--The Committee expects APHIS to
continue its efforts to manage P. ramorum while minimizing
disruption to the interstate movement of plant materials and
commercial trade. The agency should use an appropriate portion
of funds from the Specialty Crop Pest account to expeditiously
implement the review of the Federal order governing shipment of
plant materials from quarantined and regulated counties, as
well as to continue its review of the efficacy of the pre-
notification requirements for western nurseries. APHIS should
also continue efforts to partner with the regulated States to
develop new best management practices regarding P. ramorum
during the effective period of the order.
Plant Pest and Disease Management and Disaster.--The
Committee expects APHIS to obligate the $50,000,000 provided in
the 2008 farm bill (P.L. 110-234) in accordance with
Congressional priorities and the criteria described under
Special Funding Considerations (Section 10201(b)(6) of P.L.
110-234). USDA should prioritize the funds provided by Section
10201 for the purpose of early plant pest detection and
surveillance in conjunction with the funds provided in this
bill.
Potato Cyst Nematode Eradication.--The Committee encourages
APHIS to fund the Potato Cyst Nematode eradication program
above the spending level in fiscal year 2013 in order to
continue with successful efforts to eradicate this pest. If
left untreated, this pest could spread, affecting other crops.
Wildlife Damage Management.--While receiving support from
cooperators to conduct wildlife management operations, special
emphasis should be placed on those areas such as oral rabies
vaccination, livestock protection, predator damage management,
and other such activities that will reduce or eliminate threats
to agricultural industries. The Committee expects APHIS to fund
national rabies control and surveillance efforts at the same
levels expended in fiscal years 2011 and 2012.

BUILDINGS AND FACILITIES

2013 appropriation*............................... $3,095,000
2014 budget estimate.............................. 3,175,000
Provided in the bill.............................. - - -
Comparison:
2013 appropriation............................ -3,095,000
2014 budget estimate.......................... -3,175,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

The Committee does not provide an appropriation for this
account.

Agricultural Marketing Service

MARKETING SERVICES

2013 appropriation*................................... $76,881,000
2014 budget estimate.................................. 82,792,000
Provided in the bill.................................. 77,035,000
Comparison:
2013 appropriation................................ +154,000
2014 budget estimate.............................. -5,757,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For Marketing Services of the Agricultural Marketing
Service, the Committee provides an appropriation of
$77,035,000.
Mandatory COOL Labeling.--The final rule dealing with
mandatory Country of Origin Labeling of beef, pork, and other
covered muscle meats sold in U.S. retail establishments is
creating great uncertainty for U.S. meat packing, processing,
and production companies as well as U.S. retail establishments.
While the final rule became effective May 23, 2013, in order to
comply with the World Trade Organization (WTO) findings, USDA's
final rule will not likely meet the full demands made by the
governments of Canada and Mexico. By USDA's own estimate, the
range in estimated costs to industry of the final rule will be
$53.1 million to $192.1 million and affect 7,181 firms and
33,350 establishments. If the final rule does not produce a
resolution, ongoing negotiations between the three countries
will only create increased costs and indecision in how the
firms meet regulatory requirements. Therefore, the Committee
strongly encourages USDA to delay implementation and
enforcement of the final rule published on May 24, 2013, (78
Fed. Reg. 31367) until the WTO has completed all decisions
related to cases WT/DS384 and WT/DS386.
National Organic Program.--The Committee recommendation
includes a one million increase above the fiscal year 2012
level for the National Organic Program.
Pesticide Recordkeeping Program.--The Committee concurs
with the Administration's proposal to eliminate funding for the
Pesticide Recordkeeping Program (PRP) and recommends that the
States and territories operating under the Federal
recordkeeping regulations transition to a program such as those
operating in 23 States and one Territory with their own
compliance review programs under federally-recognized state
pesticide recordkeeping requirements. As noted in the
Administration's fiscal year 2013 proposal, ``this program is
not central to the core mission of AMS, which is to facilitate
the competitive and efficient marketing of agricultural
products.'' The termination of the PRP will result in a savings
of $1.8 million as proposed in the budget.
Program Levels.--The Committee recommendation includes
funding at the President's request level for Marketing News and
Surveillance and Standardization Programs.
Seafood in Nutrition Programs.--USDA's Dietary Guidelines
for Americans 2010 recommends increased intake of seafood,
especially those products with high levels of omega-3 fatty
acids. Due in large part to USDA's own regulations, canned tuna
is currently prohibited from purchase by the Department for
inclusion in school nutrition programs. The Committee directs
USDA to report to the Committees on Appropriations within 60
days of enactment on potential ways that would allow a revision
of the Master Solicitation for Commodity Procurement to allow
for the purchase of canned tuna. The report should address the
requirement that all tuna be landed by U.S.-flag fishing
vessels; the option for less than 100 percent of the value of
the tuna product be United States produced; and the requirement
that all tuna products are canned in the United States, its
territories, possessions, Puerto Rico, or the Trust Territories
of the Pacific Islands.

LIMITATION ON ADMINISTRATIVE EXPENSES

2013 limitation*...................................... ($62,592,000)
2014 budget limitation................................ (60,435,000)
Provided in the bill.................................. (60,435,000)
Comparison:
2013 limitation................................... -2,157,000
2014 budget limitation............................ - - -
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

The Committee provides a limitation of $60,435,000 on
Administrative Expenses of the Agricultural Marketing Service.

FUNDS FOR STRENGTHENING MARKETS, INCOME, AND SUPPLY (SECTION 32)

MARKETING AGREEMENT AND ORDERS

(INCLUDING TRANSFERS OF FUNDS)

2013 appropriation.................................... ($20,056,000)
2014 budget estimate.................................. (20,181,000)
Provided in the bill.................................. (20,181,000)
Comparison:
2013 appropriation................................ +125,000
2014 budget estimate.............................. - - -

COMMITTEE PROVISIONS

For the Marketing Agreements and Orders Program, the
Committee provides a transfer from section 32 funds of
$20,181,000.
Information Technology Support.--The amount provided in
this account includes an increase of $6,818,000 for the
information technology upgrades of the Web-Based Supply Chain
Management system that allows AMS, the Farm Service Agency
(FSA), the Foreign Agricultural Service (FAS), and the U.S.
Agency for International Development to purchase U.S.
commodities.
The following table reflects the status of this fund for
fiscal years 2013 and 2014:

ESTIMATED TOTAL FUNDS AVAILABLE AND BALANCE CARRIED FORWARD FISCAL YEARS
2013-2014
[Dollars in Thousands]
------------------------------------------------------------------------
FY 2013 FY 2014 budget
estimate estimate
------------------------------------------------------------------------
Appropriation (30% of Customs Receipts). $8,990,117 $9,211,183
Less Transfers:
Food and Nutrition Service.......... -7,697,031 -7,815,038
Commerce Department................. -131,372 -130,144
-------------------------------
Total, Transfers................ -7,828,402 -7,945,183
Prior Year Appropriation Available, 219,286 117,000
Start of the Year......................
Prior Year Collections and Recoveries... 0 0
Unavailable for Obligations (recoveries 0 0
& offsetting collections)..............
Transfer of Prior Year Funds to FNS -133,000 -117,000
(Fruit & Vegetable)....................
-------------------------------
Budget Authority.................... 1,248,000 1,266,000
Rescission of Current Year Funds........ -109,608 -206,000
Appropriations Reduced by 5.1 Percent -40,392 0
due to Sequestration...................
Appropriations Reduced by 7.2 Percent 0 -80,000
due to Sequestration...................
Unavailable for Obligations (Fruit & -117,000 -119,000
Vegetable transfer to FNS).............
-------------------------------
Available for Obligation............ 981,000 861,000
Less Obligations:
Child Nutrition Programs 465,000 465,000
(Entitlement Commodities)..........
State Option Contract............... 5,000 5,000
Removal of Defective Commodities.... 2,500 2,500
Emergency Surplus Removal........... 106,400 0
Small Business Support.............. 0 0
Disaster Relief..................... 5,000 5,000
Additional Fruits, Vegetables, and 206,000 206,000
Nuts Purchases.....................
Fresh Fruit and Vegetable Program... 41,000 40,000
Estimated Future Needs.............. 102,313 82,697
-------------------------------
Total, Commodity Procurement.... 933,213 806,197
Administrative Funds:
Commodity Purchase Support...... 27,731 34,622
Marketing Agreements and Orders. 20,056 20,181
-------------------------------
Total, Administrative Funds... 47,787 54,803
-------------------------------
Total Obligations................... 981,000 861,000
Unobligated Balance, End of Year........ 0 0
Unavailable for Obligations (Fruit and 117,000 119,000
Vegetable transfer to FNS).............
Balances, Collections and Recoveries Not 0 0
Available..............................
===============================
Total End of Year Balances...... 117,000 119,000
------------------------------------------------------------------------

PAYMENTS TO STATES AND POSSESSIONS

2013 appropriation*................................... $1,298,000
2014 budget estimate.................................. 1,363,000
Provided in the bill.................................. 1,171,000
Comparison:
2013 appropriation................................ -127,000
2014 budget estimate.............................. -192,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For Payments to States and Possessions, the Committee
provides an appropriation of $1,171,000.

Grain Inspection, Packers and Stockyards Administration

SALARIES AND EXPENSES

2013 appropriation*................................... $39,249,000
2014 budget estimate.................................. 40,531,000
Provided in the bill.................................. 39,249,000
Comparison:
2013 appropriation................................ - - -
2014 budget estimate.............................. -1,282,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Grain Inspection, Packers and Stockyards
Administration, the Committee provides $39,249,000.
Program Levels.--The Committee recommendation includes
funding at the requested level for the Grain Regulatory Program
and funding at the fiscal year 2012 level for the Packers and
Stockyards Program.

LIMITATION ON INSPECTION AND WEIGHING SERVICES EXPENSES

2013 limitation....................................... ($50,000,000)
2014 budget limitation................................ (50,000,000)
Provided in the bill.................................. (50,000,000)
Comparison:
2013 limitation................................... - - -
2014 budget limitation............................ - - -

COMMITTEE PROVISIONS

The Committee includes a limitation on inspection and
weighing services expenses of $50,000,000. The bill includes
authority to exceed by 10 percent the limitation on inspection
and weighing services with notification to the Committees on
Appropriations.

Office of the Under Secretary for Food Safety

2013 appropriation*................................... $791,000
2014 budget estimate.................................. 816,000
Provided in the bill.................................. 791,000
Comparison:
2013 appropriation................................ - - -
2014 budget estimate.............................. -25,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Office of the Under Secretary for Food Safety, the
Committee provides an appropriation of $791,000.

Food Safety and Inspection Service

2013 appropriation*................................... $1,029,879,000
2014 budget estimate.................................. 1,008,473,000
Provided in the bill.................................. 998,762,000
Comparison:
2013 appropriation................................ -31,117,000
2014 budget estimate.............................. -9,711,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Food Safety and Inspection Service, the Committee
provides an appropriation of $998,762,000.
The Committee notes that FSIS has had $2,300,000 in its
base budget since 2009 to fund the Cooperative Interstate
Program, and that the budget request includes a $2,434,000
increase for a total of $4,734,000. Four states have applied to
the program, and three have been accepted. While the Committee
supports CIP, the proposal to add 20 states by the end of 2014
at an additional cost of $2,434,000 is not included in the
recommendation.
The following table reflects the Committee's
recommendations for fiscal year 2014:

[Dollars in Thousands]
------------------------------------------------------------------------
Committee
provision
------------------------------------------------------------------------
Federal inspection.................................... $881,855
Public health data communication infrastructure system 34,580
International food safety and inspection.............. 15,841
State food safety and inspection...................... 62,734
Codex alimentarius.................................... 3,752
-----------------
Total, Food Safety and Inspection Service......... 998,762
------------------------------------------------------------------------

Humane Methods of Slaughter.--FSIS shall ensure that
inspectors hired with funding previously specified 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, and that they receive robust
national training, including on the Regulatory Essentials,
Humane Animal Tracking System, and Public Health Information
System.
Buffalo/Bison Inspection.--The Committee urges FSIS to
enhance its efforts to work with Tribes to set up voluntary,
fee-for-service programs for the slaughter of Tribally-raised
buffalo and bison. In doing so, FSIS should work with the
Tribal Council and make the Council aware of such opportunities
as mobile slaughter and trade associations such as the North
American Meat Association and the American Association of Meat
Processors which may be able to assist them in qualifying for
inspection and starting operations.
Regulations.--The Committee supports implementation of
section 11016 of Public Law 110-246 and expects USDA to meet
its statutory obligation and promulgate regulations to
implement this section using the broad definition contained in
its proposed rule.
Reducing Foodborne Illnesses.--The Committee notes that the
current poultry slaughter inspection system has been in place
since 1957. On January 27, 2012, USDA proposed a science-based
rule that would begin to replace this outdated approach, and
replace it with one that is based on pathogen reduction and
control. USDA inspectors would monitor establishment process
controls in removing diseased birds, ensure compliance with
Hazard Analysis Critical Control Point plans and Sanitation
Standard Operating Procedures, conduct ante mortem inspection,
and collect samples for pathogen testing. On-line inspectors
will still conduct carcass-by-carcass inspection to ensure that
diseased carcasses are condemned by establishment workers
according to regulatory requirements. The Committee believes
that implementation of this system, that has been tested over
ten years, will lead to a reduction of pathogens in poultry and
a corresponding reduction in foodborne illnesses,
hospitalizations, and deaths. The Committee urges the
Department to finalize this rule.

FARM ASSISTANCE PROGRAMS

Office of the Under Secretary for Farm and Foreign Agricultural
Services

COMMITTEE PROVISIONS

For the Office of the Under Secretary for Farm and Foreign
Agricultural Services, the Committee provides an appropriation
of $871,000.
The Committee is concerned about waste, fraud, and abuse in
programs administered by FSA and the Risk Management Agency
(RMA). Therefore, the Secretary is directed to certify that any
newly approved payment, loan, grant, subsidy, or insurance
claim from a program administered by FSA or RMA does not
include individuals or entities that have been permanently
debarred from participating in USDA programs.

Farm Service Agency

SALARIES AND EXPENSES

(INCLUDING TRANSFERS OF FUNDS)

----------------------------------------------------------------------------------------------------------------
Transfer from
Appropriation program accounts Total, FSA S&E
----------------------------------------------------------------------------------------------------------------
2013 appropriation*................................. $1,177,926,000 ($300,393,000) ($1,478,319,000)
2014 budget estimate................................ 1,176,460,000 (309,980,000) (1,486,440,000)
Provided in the bill................................ 1,177,926,000 (300,393,000) (1,478,319,000)
Comparison:
2013 appropriation - - - - - - - - -
2014 budget estimate +1,466,000 (-9,587,000) (-8,121,000)
----------------------------------------------------------------------------------------------------------------
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB.

COMMITTEE PROVISIONS

For Salaries and Expenses of Farm Service Agency, the
Committee provides an appropriation of $1,177,926,000 and
transfers of $300,393,000 for a total program level of
$1,478,319,000.

STATE MEDIATION GRANTS

2013 appropriation*................................... $4,259,000
2014 budget estimate.................................. 3,782,000
Provided in the bill.................................. 4,259,000
Comparison:
2013 appropriation................................ - - -
2014 budget estimate.............................. +477,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For State Mediation Grants, the Committee provides an
appropriation of $4,259,000.

GRASSROOTS SOURCE WATER PROTECTION PROGRAM

2013 appropriation*................................... $5,362,000
2014 budget estimate.................................. - - -
Provided in the bill.................................. 4,552,000
Comparison:
2013 appropriation................................ -810,000
2014 budget estimate.............................. +4,552,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Grassroots Source Water Protection Program, the
Committee provides an appropriation of $4,552,000.

DAIRY INDEMNITY PROGRAM

(INCLUDING TRANSFER OF FUNDS)

2013 appropriation.................................... \1\$100,000
2014 budget estimate.................................. \1\250,000
Provided in the bill.................................. \1\250,000
Comparison:
2013 appropriation................................ +150,000
2014 budget estimate.............................. - - -
\1\Current indefinite appropriation.

COMMITTEE PROVISIONS

For the Dairy Indemnity Program, the Committee provides an
appropriation of such sums as may be necessary (estimated to be
$250,000 in the President's fiscal year 2014 budget request).

AGRICULTURAL CREDIT INSURANCE FUND PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

ESTIMATED LOAN LEVELS

2013 loan level*...................................... $4,821,748,000
2014 budget estimate.................................. 5,555,344,000
Provided in the bill.................................. 5,381,267,000
Comparison:
2013 loan level................................... +559,519,000
2014 budget estimate.............................. -174,077,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Agricultural Credit Insurance Fund program account,
the Committee provides a loan level of $5,381,267,000.
The following table reflects the loan levels for the
Agricultural Credit Insurance Fund program account:

AGRICULTURE CREDIT PROGRAMS--LOAN LEVELS
[Dollars in Thousands]
------------------------------------------------------------------------
FY 2013 FY 2014 Committee
level estimate provisions
------------------------------------------------------------------------
Farm loan programs
Farm ownership:
Direct................ $475,000 $575,000 $575,000
Unsubsidized 1,500,000 2,000,000 2,000,000
Guaranteed...........
Farm operating:
Direct................ 1,050,090 1,223,686 1,131,752
Unsubsidized 1,500,000 1,500,000 1,426,311
guaranteed...........
Emergency loans........... 34,658 34,658 26,204
Indian tribe land 2,000 2,000 2,000
acquisition loans........
Conservation loans:
Unsubsidized 150,000 150,000 150,000
Guaranteed...........
Indian highly fractionated 10,000 10,000 10,000
land.....................
Boll weevil eradication... 100,000 60,000 60,000
-----------------------------------------
Total................. 4,821,748 5,555,344 5,381,267
------------------------------------------------------------------------

ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS
----------------------------------------------------------------------------------------------------------------
Guaranteed
Direct loan loan Administrative
subsidy subsidy expenses
----------------------------------------------------------------------------------------------------------------
2013 appropriation*............................................. $78,107,000 $17,401,000 $305,034,000
2014 budget estimate............................................ 73,252,000 18,300,000 314,918,000
Provided in the bill............................................ 67,800,000 17,401,000 305,034,000
Comparison:
2013 appropriation -10,307,000 - - - - - -
2014 budget estimate -5,452,000 -899,000 -9,884,000
----------------------------------------------------------------------------------------------------------------
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB.

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

AGRICULTURE CREDIT PROGRAMS--SUBSIDIES AND GRANTS
[Dollars in Thousands]
------------------------------------------------------------------------
FY 2013* FY 2014 Committee
enacted estimate provisions
------------------------------------------------------------------------
Farm loan subsidies:
Farm ownership:
Direct................ $19,634 $4,428 $4,428
Farm operating:
Direct................ 57,020 67,058 62,020
Unsubsidized 17,401 18,300 17,401
Guaranteed...........
Emergency loans........... 1,284 1,698 1,284
Indian highly fractionated 169 68 68
land.....................
-----------------------------------------
Total, Farm loan 95,508 91,552 85,201
subsidies............
Individual development - - - - - - - - -
accounts.............
-----------------------------------------
Total................. 95,508 91,552 85,201
ACIF expenses:
Salaries and expenses..... 297,313 306,998 297,313
Administrative expenses... 7,721 7,920 7,721
-----------------------------------------
Total, ACIF expenses.. 305,034 314,918 305,034
------------------------------------------------------------------------
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

Risk Management Agency

2013 appropriation*................................... $73,018,000
2014 budget estimate.................................. 71,496,000
Provided in the bill.................................. 71,496,000
Comparison:
2013 appropriation................................ -1,522,000
2014 budget estimate.............................. - - -
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Risk Management Agency, the Committee provides an
appropriation of $71,496,000.
Enhancements to Existing Crop Insurance Programs.--The
Committee believes that crop insurance has been an invaluable
resource for agricultural producers in times of disaster. At
the same time, it has protected taxpayers from costly and
unbudgeted disaster assistance bills. The Committee supports
the ongoing efforts of the House and Senate Committees on
Agriculture to reauthorize provisions of the Farm Bill that
maintain and strengthen the existing crop insurance program.
Organic Foods.--The Committee is aware of the legislative
mandate in the Food, Conservation, and Energy Act of 2008 that
an organic price election be offered on all organic crops by
2012 (7 U.S.C. 1522(c)(10)(C)(iii)). The Committee appreciates
the recent announcement by the Department regarding a new
organic price election for the 2014 insurance year. The
Committee is concerned, however, at the pace of progress and
requests a report from the Department within 60 days of
enactment detailing its strategic plan and timetable to
implement organic price elections for all organic crops
produced in compliance with the National Organic Program
regulations under the Organic Foods Production Act of 1990 (7
U.S.C. 6501 et seq.).
Timely Communication of Changes in Coverage.--Crop
insurance represents a key risk management tool for
agricultural producers around the country and any changes to
their insurance policies can have an immediate impact on
critical financial and business decisions. The Committee
understands that RMA will implement changes in an effort to
reduce the loss ratios in the crop insurance industry, but it
is concerned by the timeliness and the manner in which RMA
notifies purchasers of changes to crop insurance coverage. The
Committee is aware of issues pertaining to the late
notification of changes communicated to producers and insurance
providers over the past year that may have resulted in negative
consequences for both. The Committee expects that RMA will
address this issue and ensure effective and efficient
administration of the crop insurance program.

CORPORATIONS

Federal Crop Insurance Corporation Fund

2013 appropriation.................................... \1\$9,517,433,00
0
2014 budget estimate.................................. \1\9,502,944,000
Provided in the bill.................................. \1\9,502,944,000
Comparison:
2013 appropriation................................ -14,489,000
2014 budget estimate.............................. - - -
\1\Current indefinite appropriation.

COMMITTEE PROVISIONS

For the Federal Crop Insurance Corporation Fund, the
Committee provides an appropriation of such sums as may be
necessary (estimated to be $9,502,944,000 in the President's
fiscal year 2014 budget request).

Commodity Credit Corporation Fund

REIMBURSEMENT FOR NET REALIZED LOSSES

(INCLUDING TRANSFERS OF FUNDS)\1\

2013 appropriation.................................... $11,018,509,000
2014 budget estimate.................................. 12,539,000,000
Provided in the bill.................................. 12,539,000,000
Comparison:
2013 appropriation................................ +1,520,491,000
2014 budget estimate.............................. - - -
\1\Current indefinite appropriation.

COMMITTEE PROVISIONS

For Reimbursement for Net Realized Losses to the Commodity
Credit Corporation, the Committee provides such sums as may be
necessary to reimburse for net realized losses sustained but
not previously reimbursed (estimated to be $12,539,000,000 in
the President's fiscal year 2014 budget request).

HAZARDOUS WASTE MANAGEMENT

(LIMITATION ON EXPENSES)

2013 limitation....................................... ($5,000,000)
2014 budget estimate.................................. (5,000,000)
Provided in the bill.................................. (5,000,000)
Comparison:
2013 limitation................................... - - -
2014 budget estimate.............................. - - -

COMMITTEE PROVISIONS

For CCC Hazardous Waste Management, the Committee provides
a limitation of $5,000,000.

TITLE II

CONSERVATION PROGRAMS

Office of the Under Secretary for Natural Resources and Environment

COMMITTEE PROVISIONS

For the Office of the Under Secretary for Natural Resources
and Environment, the Committee provides an appropriation of
$871,000.

Natural Resources Conservation Service

CONSERVATION OPERATIONS

2013 appropriation*................................... $810,115,000
2014 budget estimate.................................. 807,937,000
Provided in the bill.................................. 810,115,000
Comparison:
2013 appropriation................................ - - -
2014 budget estimate.............................. +2,178,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For Conservation Operations, the Committee provides an
appropriation of $810,115,000.
The Committee provides $9,066,000 for the Snow Survey and
Water Forecasting Program; $9,164,000 for the Plant Materials
Centers; and $77,990,000 for the Soil Surveys Program. The
Committee provides $713,895,000 for conservation technical
assistance and directs NRCS to maintain level funding for the
Conservation Effects Assessment Project (CEAP) and the
Conservation Delivery Streamlining Initiative (CDSI). The
Committee is pleased with the results of CEAP and the agency's
efforts to modernize the delivery of conservation programs and
services through CDSI and encourages the continuation of these
efforts.
Cheat Grass Eradication.--The Committee encourages NRCS to
continue to assist farmers and ranchers to eradicate, control,
and reduce the fuel loads associated with cheat grass and to
work with the ARS on its research related to cheat grass.
Herbicide Resistance.--The Committee directs NRCS to ensure
agency staff, partners, and producers are aware of new and
interim conservation practice standards and conservation
activity plans to address herbicide-resistant weeds, and that
financial assistance through certain conservation programs is
available to assist producers in their efforts to control these
weeds. The Committee also directs NRCS to report to it on this
effort by December 1, 2013.
Farmland Protection Program.--The Committee is aware of
concerns regarding oil and gas exploration and extraction on
current and potential Farmland Protection Program easements and
requests NRCS provide a report on its regulations and practices
regarding the program and these issues by September 30, 2013.
Fleet Management.--The Committee is aware NRCS recently
completed a fleet management pilot program for the purpose of
reducing costs and better utilizing its vehicle fleet to meet
the agency's goals and mandates. The Committee encourages NRCS
and USDA to use this data and other available fleet management
tools to reduce the number of non-essential vehicles purchased
and/or leased.
National Marine Sanctuaries.--The Committee urges the
agency to continue the collaborative agreement with the Office
of National Marine Sanctuaries to address agricultural sources
of runoff, such as sediments, nitrates, and pesticides.
Sage Grouse Initiative.--The Committee supports NRCS's sage
grouse conservation efforts. Through the initiative, NRCS
provides technical and financial assistance to help landowners
conserve sage grouse habitat on their land. The initiative is
an integral part of efforts by Federal agencies, several
western States, and private landowners to help preclude the
listing of the sage grouse as an endangered species.

WATERSHED REHABILITATION PROGRAM

2013 appropriation*................................... $14,331,000
2014 budget estimate.................................. - - -
Provided in the bill.................................. 12,000,000
Comparison:
2013 appropriation................................ -2,331,000
2014 budget estimate.............................. +12,000,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Watershed Rehabilitation Program, the Committee
provides an appropriation of $12,000,000.

TITLE III

RURAL DEVELOPMENT PROGRAMS

Office of the Under Secretary for Rural Development

COMMITTEE PROVISIONS

For the Office of the Under Secretary for Rural
Development, the Committee provides an appropriation of
$871,000.
Program Consolidation.--The Committee does not concur with
the budget proposal to consolidate Rural Development's business
and economic development programs into the Rural Business and
Cooperative Grants Program.
Program Efficiency.--The Committee appreciates the proposal
included in the budget request for the Rural Housing Service to
improve its eligibility verification processes through the use
of data-sharing with the Department of Health and Human
Services and pledges to work with the authorizing Committee to
enact the proposal.
Regional Innovation Initiative.--The fiscal year 2014
budget request proposes a Regional Innovation Initiative
similar to the proposal included in the fiscal year 2013
request. The Committee is unable to provide any funding or
authorization for the initiative as requests for additional
information on the specific need, purpose, and plans for the
initiative continue to go unanswered.
Reporting Requirements.--The Committee reminds Rural
Development that any action that relocates an office or
employees and reorganizes offices, programs, or activities must
be reported to the Committees on Appropriations of the House
and Senate as required by law.
Strike Force Initiative.--The Committee supports Rural
Development's continued efforts to address the issue of
persistent poverty in rural communities through the Strike
Force Initiative and requests a report to be provided to the
House and Senate Committees on Appropriations on the results of
the initiative, including a comparison of its effectiveness to
other Rural Development programs, within 60 days of enactment
of this Act.

Rural Development Salaries and Expenses

(INCLUDING TRANSFERS OF FUNDS)

----------------------------------------------------------------------------------------------------------------
Committee
FY 2013* level FY 2014 estimate provisions
----------------------------------------------------------------------------------------------------------------
Appropriations......................................... $201,659,000 $204,695,000 $201,659,000
Transfer from:
Rural Housing Insurance Fund Program Account....... 400,308,000 417,692,000 400,308,000
Rural Development Loan Fund Program Account........ 4,326,000 4,467,000 4,326,000
Rural Electrification and Telecommunications Loan 33,601,000 34,694,000 33,601,000
Program Account...................................
--------------------------------------------------------
Total, RD Salaries and Expenses................ 639,894,000 661,548,000 639,894,000
----------------------------------------------------------------------------------------------------------------
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB.

COMMITTEE PROVISIONS

For Salaries and Expenses of the Rural Development mission
area, the Committee provides an appropriation of $201,659,000.

Rural Housing Service

RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

(INCLUDING TRANSFERS OF FUNDS)

----------------------------------------------------------------------------------------------------------------
Administrative expenses
Loan level Subsidy level
----------------------------------------------------------------------------------------------------------------
2013 appropriation*.................. $25,147,198,000 $74,295,000 $400,308,000
2014 budget estimate................. 24,574,712,000 18,624,000 417,692,000
Provided in the bill................. 25,060,103,000 36,066,000 400,308,000
Comparison:
2013 appropriation -87,095,000 -38,229,000 - - -
2014 budget estimate +485,391,000 +17,442,000 -17,384,000
----------------------------------------------------------------------------------------------------------------
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB.

COMMITTEE PROVISIONS

For the Rural Housing Insurance Fund program account, the
Committee provides a loan level of $25,060,103,000.
The following table reflects the loan levels for the Rural
Housing Insurance Fund program account:

[Dollars in Thousands]
------------------------------------------------------------------------
FY 2013 FY 2014 Committee
level estimate provisions
------------------------------------------------------------------------
Rural Housing Insurance Fund
Loans:
Single family housing (sec
502):
Direct................ $900,000 $360,000 $820,221
Unsubsidized 24,000,000 24,000,000 24,000,000
guaranteed...........
Housing repair (sec 504).. 27,952 26,280 25,362
Rental housing (sec 515).. 31,277 28,432 28,432
Multi-family guaranteed 150,000 150,000 150,000
(sec 538)................
Credit sales of acquired 10,000 10,000 10,000
property.................
Self-help housing land 5,000 - - - 5,000
development fund.........
Farm labor housing........ 22,969 - - - 21,088
-----------------------------------------
Total, Loan 25,147,198 24,574,712 25,060,103
authorization........
------------------------------------------------------------------------

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

ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS
[Dollars in Thousands]
------------------------------------------------------------------------
FY 2013 FY 2014 Committee
level estimate provision
------------------------------------------------------------------------
Rural Housing Insurance Fund
Program Account (loan
subsidies and grants):
Single family housing (sec
502):
Direct................ $52,380 $9,792 $22,310
Housing repair (sec 504).. 3,725 2,176 2,100
Rental housing (sec 515).. 10,724 6,656 6,656
Farm labor housing........ 7,466 - - - 5,000
Total, Loan subsidies..... 74,295 18,624 36,066
Farm labor housing grants. 8,645 13,992 8,168
RHIF expenses:
Administrative 400,308 417,692 400,308
expenses.............
------------------------------------------------------------------------

RENTAL ASSISTANCE PROGRAM

2013 appropriation*................................... $884,332,000
2014 budget estimate.................................. 1,015,050,000
Provided in the bill.................................. 1,012,050,000
Comparison:
2013 appropriation................................ +127,718,000
2014 budget estimate.............................. -3,000,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Rental Assistance Program, the Committee provides a
program level of $1,012,050,000.

MULTIFAMILY HOUSING REVITALIZATION PROGRAM ACCOUNT

2013 appropriation*................................... $27,084,000
2014 budget estimate.................................. 32,575,000
Provided in the bill.................................. 27,084,000
Comparison:
2013 appropriation................................ - - -
2014 budget estimate.............................. -5,491,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

For the Multifamily Housing Revitalization Program Account,
the Committee provides an appropriation of $27,084,000,
including $9,749,000 for the rural housing voucher program.

MUTUAL AND SELF-HELP HOUSING GRANTS

2013 appropriation*................................... $29,246,000
2014 budget estimate.................................. 10,000,000
Provided in the bill.................................. 17,131,000
Comparison:
2013 appropriation................................ -12,115,000
2014 budget estimate.............................. +7,131,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For Mutual and Self-Help Housing Grants, the Committee
provides an appropriation of $17,131,000.

RURAL HOUSING ASSISTANCE GRANTS

2013 appropriation*................................... $32,303,000
2014 budget estimate.................................. 25,000,000
Provided in the bill.................................. 18,585,000
Comparison:
2013 appropriation................................ -13,718,000
2014 budget estimate.............................. -6,415,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Rural Housing Assistance Grants program, the
Committee provides an appropriation of $18,585,000.

RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT

(INCLUDING TRANSFERS OF FUNDS)

2013 appropriation*................................... $31,495,000
2014 budget estimate.................................. 17,000,000
Provided in the bill.................................. 25,251,000
Comparison:
2013 appropriation................................ -6,244,000
2014 budget estimate.............................. +8,251,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Rural Community Facilities Program Account, the
Committee provides an appropriation of $25,251,000.
The following table provides the Committee's
recommendations:

(Dollars in Thousands)
----------------------------------------------------------------------------------------------------------------
Committee
FY 2013* level FY 2014 estimate provisions
----------------------------------------------------------------------------------------------------------------
Loan levels:
Community facility direct loans................. ($2,200,000) ($1,500,000) ($2,200,000)
Community facility guaranteed loans............. (57,481) (- - -) (47,319)
Subsidy and grants:
Community facility direct loans................. - - - - - - - - -
Community facility guaranteed loans............. 3,782 - - - 3,000
Community facility grants....................... 12,673 13,000 13,000
Rural Community Development Initiative.......... 5,967 - - - 5,967
Economic Impact Initiative...................... 5,789 - - - - - -
Tribal college grants........................... 3,284 4,000 3,284
-----------------------------------------------------------
Total, Rural Community Facilities Program 31,495 17,000 25,251
subsidy and grants.........................
----------------------------------------------------------------------------------------------------------------
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB.

The following is included in bill language for the Rural
Community Facilities Program: $5,967,000 is for the Rural
Community Development Initiative.

Rural Business-Cooperative Service

RURAL BUSINESS PROGRAM ACCOUNT

(INCLUDING TRANSFERS OF FUNDS)

2013 appropriation*................................... $83,745,000
2014 budget estimate.................................. 51,777,000
Provided in the bill.................................. 71,777,000
Comparison:
2013 appropriation................................ -11,968,000
2014 budget estimate.............................. +20,000,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Rural Business Program Account, the Committee
provides an appropriation of $71,777,000.
The following table provides the Committee's
recommendations as compared to the budget request:

(Dollars in Thousands)
----------------------------------------------------------------------------------------------------------------
Committee
FY 2013 level FY 2014 estimate provision
----------------------------------------------------------------------------------------------------------------
Loan level:
Business and industry guaranteed loans.......... ($821,224) ($740,700) ($740,730)
Subsidy and grants:
Business and industry guaranteed loans.......... 54,920 51,777 51,777
Rural business enterprise grants................ 23,707 - - - 20,000
Rural business opportunity grants............... 2,193 - - - - - -
Delta regional authority........................ 2,925 - - - - - -
-----------------------------------------------------------
Total, Rural Business Program subsidy and 83,745 51,777 71,777
grants.....................................
----------------------------------------------------------------------------------------------------------------

The following programs are included in bill language for
the Rural Business Program account: $500,000 for rural
transportation technical assistance; and $3,900,000 for
Federally Recognized Native American Tribes, of which $244,000
is for transportation technical assistance.

RURAL DEVELOPMENT LOAN FUND PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

----------------------------------------------------------------------------------------------------------------
Administrative
Loan level Subsidy level expenses
----------------------------------------------------------------------------------------------------------------
2013 appropriation*................................. $18,414,000 $5,900,000 $4,326,000
2014 budget estimate................................ 18,889,000 4,082,000 4,467,000
Provided in the bill................................ 18,889,000 4,082,000 4,326,000
Comparison:
2013 appropriation.............................. 475,000 -1,818,000 - - -
2014 budget estimate............................ - - - - - - -141,000
----------------------------------------------------------------------------------------------------------------
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB.

COMMITTEE PROVISIONS

For the Rural Development Loan Fund program account, the
Committee provides for a loan level of $18,889,000.
For the loan subsidy, the Committee provides an
appropriation of $4,082,000.
In addition, the Committee provides $4,326,000 for
administrative expenses.

RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT

(INCLUDING RESCISSION OF FUNDS)

Loan level

2013 appropriation...................................... $33,077,000
2014 budget estimate.................................... 33,077,000
Provided in the bill.................................... 33,077,000
Comparison:
2013 appropriation.................................. - - -
2014 budget estimate................................ - - -

COMMITTEE PROVISIONS

For the Rural Economic Development Loans Program Account,
the Committee provides for a loan level of $33,077,000.

RURAL COOPERATIVE DEVELOPMENT GRANTS

2013 appropriation*................................... $27,009,000
2014 budget estimate.................................. 17,250,000
Provided in the bill.................................. 17,250,000
Comparison:
2013 appropriation................................ -9,759,000
2014 budget estimate.............................. - - -
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For Rural Cooperative Development Grants, the Committee
provides an appropriation of $17,250,000.
The total includes $2,250,000 for a cooperative agreement
for the Appropriate Technology Transfer for Rural Areas program
and $15,000,000 for the value-added agricultural product market
development grant program.

RURAL ENERGY FOR AMERICA PROGRAM

2013 appropriation*................................... $3,315,000
2014 budget estimate.................................. 19,740,000
Provided in the bill.................................. 3,000,000
Comparison:
2013 appropriation................................ -315,000
2014 budget estimate.............................. -16,740,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Rural Energy for America Program, the Committee
provides a loan level of $14,161,000 and an appropriation of
$3,000,000 for the loan subsidy to make loans as authorized by
section 9007 of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 8107).

Rural Utilities Service

RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT

(INCLUDING TRANSFERS OF FUNDS)

2013 appropriation*................................... $511,288,000
2014 budget estimate.................................. 304,000,000
Provided in the bill.................................. 447,997,000
Comparison:
2013 appropriation................................ -63,291,000
2014 budget estimate.............................. +143,997,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Rural Water and Waste Disposal Program Account, the
Committee provides an appropriation of $447,997,000.
Guaranteed Loans.--The Committee expresses its support for
water and waste disposal guaranteed loans and encourages RUS to
utilize existing balances in the program during fiscal year
2014.
Water Supplies for Very Small Communities.--The Committee
is aware of concerns that RUS grant programs do not adequately
help small, disadvantaged and severely disadvantaged
communities access the funding and expertise necessary to
develop sustainable water supplies or otherwise improve their
water systems. The Committee requests the agency provide a
report to the Committees on Appropriations of the House and
Senate by March 1, 2014, on its programs, regulations, outreach
efforts, and other assistance provided to disadvantaged and
severely disadvantaged communities. The report should include
information on these communities and indicators of their
historical access to predevelopment planning grants by State
and recommendations for changes, including ways to better
target predevelopment grant funding to severely disadvantaged
communities.
The following table provides the Committee's
recommendations:

[Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
Committee
FY 2013 level FY 2014 level provisions
----------------------------------------------------------------------------------------------------------------
Loan levels:
Water and waste direct loans....................... ($1,000,000) ($1,200,000) ($1,200,000)
Water and waste guaranteed loans................... (61,321) - - - - - -
Direct Loans authorized by P.L. 83-566............. (40,000) - - - - - -
Subsidy and Grants:
Direct Subsidy..................................... 78,672 - - - - - -
Guaranteed Subsidy................................. 634 - - - - - -
Water and Waste Revolving Fund..................... 975 - - - 500
Water Well System Grants........................... 968 - - - 968
Grants for the Colonias and AK/HI.................. 64,829 - - - 64,829
Water and Waste Technical Assistance Grants........ 18,523 - - - 18,523
Circuit Rider Program.............................. 14,623 - - - 14,623
Solid Waste Management Grants...................... 3,315 4,000 3,315
High Energy Cost Grants............................ 9,749 - - - - - -
Water and Waste Disposal Grants.................... 319,000 300,000 345,239
--------------------------------------------------------
Total Subsidies and Grants..................... $511,288 $304,000 $447,997
----------------------------------------------------------------------------------------------------------------

RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

----------------------------------------------------------------------------------------------------------------
Administrative
Loan level Subsidy level expenses
----------------------------------------------------------------------------------------------------------------
2013 appropriation*................................. $7,790,000,000 - - - $33,601,000
2014 budget estimate................................ 4,690,000,000 - - - 34,694,000
Provided in the bill................................ 5,190,000,000 - - - 33,601,000
Comparison:
2013 appropriation -2,600,000,000 - - - - - -
2014 budget estimate +500,000,000 - - - -1,093,000
----------------------------------------------------------------------------------------------------------------
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB.

COMMITTEE PROVISIONS

For the Rural Electrification and Telecommunications Loans
Program Account, the Committee provides a loan level of
$5,190,000,000. In addition, the Committee provides $33,601,000
for administrative expenses.
The Committee does not concur with the proposal to limit
the use of rural electrification loans and instead expects USDA
to work with borrowers to finance the most reliable and cost-
effective electricity source that meets their needs.
The following table reflects the loan levels for the Rural
Electrification and Telecommunications Loans Program account:

[Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
Committee
FY 2013 enacted FY 2014 estimate provisions
----------------------------------------------------------------------------------------------------------------
Loan authorizations:
Electric:
Direct, 5%...................................... $100,000 - - - - - -
Direct, FFB..................................... 6,500,000 $4,000,000 $4,000,000
Guaranteed underwriting......................... 500,000 - - - 500,000
Subtotal........................................ 7,100,000 4,000,000 4,500,000
Telecommunications:
Direct, Treasury rate........................... 690,000 690,000 690,000
Subtotal........................................ 690,000 690,000 690,000
-----------------------------------------------------------
Total, Loan authorizations.................. 7,790,000 4,690,000 5,190,000
----------------------------------------------------------------------------------------------------------------

DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND PROGRAM

----------------------------------------------------------------------------------------------------------------
Committee
FY 2013* enacted FY 2014 estimate provisions
----------------------------------------------------------------------------------------------------------------
Broadband Program:
Loan authorization.............................. $42,239,000 $63,356,000 $42,146,000
Loan subsidy.................................... 3,899,000 8,268,000 5,500,000
Grants.......................................... 10,111,000 10,372,000 10,111,000
Distance learning and telemedicine:
Grants.......................................... 24,323,000 24,950,000 24,323,00
-----------------------------------------------------------
Total, Loan subsidy and grants.............. 38,333,000 43,590,000 39,934,000
----------------------------------------------------------------------------------------------------------------
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB.

COMMITTEE PROVISIONS

For the Distance Learning, Telemedicine, and Broadband
Program, the Committee provides an appropriation of
$39,934,000, which includes $24,323,000 for distance learning
and telemedicine grants.
Broadband Loan Program Priorities.--Funding provided for
the broadband program is 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 directs RUS to focus expenditures on projects
that bring broadband service to currently unserved households.

TITLE IV

DOMESTIC FOOD PROGRAMS

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

COMMITTEE PROVISIONS

For the Office of the Under Secretary for Food, Nutrition,
and Consumer Services, the Committee provides an appropriation
of $791,000.
The Committee directs FNS to continue making all policy
documents related to the WIC program (including, but not
limited to, instructions, memoranda, guidance, and questions
and answers) available to the public on the Internet within one
week of their release to state WIC administrators.
The Committee is concerned about duplicative and
overlapping food assistance programs, with the Government
Accountability Office (GAO) having cited 18 different domestic
programs that show signs of overlap and inefficient use of
resources. The Committee urges FNS to review eligibility
requirements and eliminate duplication to ensure families are
receiving adequate but not overlapping assistance.
The Committee expects USDA to issue guidelines to the
appropriate state agencies on a requirement to include the USDA
Inspector General (IG) Fraud Hotline and the IG website address
on all SNAP and WIC Electronic Benefit Transfer cards and WIC
coupons/vouchers or on any other information that accompanies
the WIC instruments for the purpose of reporting potential
fraud, waste, and abuse by vendors and/or participants. The
Committee directs USDA to issue these guidelines no later than
July 1, 2013.
As part of USDA's effort to reduce fraud, ensure the
integrity of its nutrition programs, and safeguard the
identities of participants in nutrition assistance programs,
the Committee directs the Secretary to provide a report
detailing the prevalence of identity theft incidents
perpetrated against USDA nutrition program beneficiaries; steps
USDA is taking to protect program beneficiaries' personally
identifiable information against unauthorized disclosure; and
what, if any, actions are being taken to educate participants
on the threat of identity theft.

Food and Nutrition Service

CHILD NUTRITION PROGRAMS

(INCLUDING TRANSFERS OF FUNDS)

2013 appropriation.................................... $19,891,185,000
2014 budget estimate.................................. 20,487,229,000
Provided in the bill.................................. 20,452,229,000
Comparison:
2013 appropriation................................ +561,044,000
2014 budget estimate.............................. -35,000,000

COMMITTEE PROVISIONS

For the Child Nutrition Programs, the Committee provides
$20,452,229,000. The fiscal year 2013 conference report
provided $9.7 million for school meals equipment grants, and
the fiscal year 2014 budget requests $35 million for this
program. The Committee is aware of the importance of these
funds, especially in rural areas, and will continue to monitor
the need for this program.
School Meals.--The Committee is concerned about the
challenges and costs that local schools face in implementing
the school meals final rule. While schools are still working to
implement these nutrition standards for lunch, they also must
begin implementing these standards for breakfast in the 2013-14
school year. In addition, USDA recently proposed more
regulations on schools. Before USDA can begin implementing the
requirements for the School Breakfast Program and the proposed
rule on nutrition standards for all foods sold in school, USDA
is directed to receive notification from each local school
participating in the program that it can implement the final
rule on nutrition standards in a workable and cost-neutral
manner. While the Committee appreciates the flexibility USDA
has provided to schools regarding the grain and protein
requirements for school year 2013-2014, schools will still need
certainty into the future. USDA is encouraged to extend this
flexibility and provide schools with a long-term policy by
September 1, 2013, to assist them with planning and procurement
for future school years. As schools seek to implement the new
school meal standards, the Committee encourages USDA to
consider ways to assist schools with technical assistance and
training to provide healthful, cost-effective foods that
students will eat.
Improper Payments.--The Committee continues to be concerned
about the staggering improper payment rates in the National
School Lunch Program (NSLP) and School Breakfast Program (SBP).
For fiscal year 2012, the NSLP had an error rate of 15.53
percent, which is $1.6 billion in improper payments. The SBP
had an error rate of 25.18 percent, or an estimated $825
million. These programs have some of the highest error and
improper payment rates of all Federal programs. The Committee
provides funding to support USDA's efforts to reduce erroneous
payments and expects USDA to utilize any additional funds
necessary from the State Administrative Expenses account to
assist States and Local Educational Agencies in reducing
errors.
Prioritization of Monitoring and Compliance Reviews.--The
Committee directs the Secretary to allow States to vary the
frequency of monitoring and compliance reviews of each school
food authority based on past school performance, with no cycle
extending more than five years as granted in the Healthy,
Hunger-Free Kids Act of 2010.
Child and Adult Care Food Program.--The Committee directs
USDA to verify that CACFP sites, which provide at-risk, after-
school snacks and suppers, are in full compliance with the
eligibility requirements for participating in the program.
Summer Food Service Pilot Program.--Distressed counties in
certain parts of the country face high levels of food
insecurity. The Committee supports the efforts that authorize
the Secretary to conduct demonstrations to test new models of
preventing food insecurity and hunger among children during the
summer months. The Committee directs the Secretary to provide a
report no later than 60 days after enactment on the estimated
implementation costs and benefits of the models that have been
tested and provide recommendations for cost effective ways to
promote food security in counties as defined in 40 U.S.C.
14102.
The following table reflects the Committee recommendations
for the child nutrition programs:
(Dollars in thousands)
Child Nutrition Programs:
School lunch program.................................... $11,647,505
School breakfast program................................ 3,842,895
Child and adult care food program....................... 3,052,176
Summer food service program............................. 467,932
Special milk program.................................... 10,778
State administrative expenses........................... 247,544
Commodity procurement................................... 1,103,244
Food safety education................................... 2,649
Coordinated review...................................... 10,000
Computer support and processing......................... 11,002
CACFP training and technical assistance................. 8,016
CN Studies.............................................. 19,697
CN Payment Accuracy..................................... 9,617
Farm to School Team..................................... 2,170
Team Nutrition.......................................... 15,004
Healthier US School Challenge........................... 2,000
--------------------------------------------------------
____________________________________________________
Total............................................... 20,452,229

SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN

2013 appropriation*................................... $6,868,934,000
2014 budget estimate.................................. 7,141,625,000
Provided in the bill.................................. 6,654,871,000
Comparison:
2013 appropriation................................ -214,063,000
2014 budget estimate.............................. -486,754,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Special Supplemental Nutrition Program for Women,
Infants, and Children (WIC), the Committee provides an
appropriation of $6,654,871,000.
The President's budget request includes a projection of an
average monthly participation rate of 8.9 million women,
infants, and children in fiscal year 2014. It is worth noting
that previous projections for the average monthly WIC
participation rates have been inflated. For example, the
President's budget request in fiscal year 2012 projected an
average monthly participation rate of 9.6 million people, when
in fact the average participation rate was 8.9 million. In
fiscal year 2013, the request projected participation rates of
9.1 million, and to date, participation has been well below
this estimate, averaging 8.7 million participants per month.
Birth rates are an important factor in estimating WIC
participation, and the number of births has steadily declined
since 2007, according to the Centers for Disease Control and
Prevention. Food costs also have been lower than expected. The
Committee supports USDA's efforts to promote cost containment
and expects some measures being implemented by States to result
in lower food costs over the long term.
The Committee also notes USDA has full authority to utilize
carry over funds from the previous fiscal year and encourages
USDA to work with States on a regular and timely basis to
determine the availability of recovery funds as early as
possible. Furthermore, the Secretary has $125 million in the
WIC contingency reserve fund as a safety net to meet unexpected
demand.
The Committee provides for continuation of the
breastfeeding peer counselor program, infrastructure, and
investments in management information systems within the total
amount provided in the bill, pending a determination by the
Secretary that funds are available to meet caseload demand.
The Committee will continue to monitor WIC food costs,
participation, and carryover funds and take additional action
as necessary to ensure that funding provided in fiscal year
2014 is sufficient to serve all eligible applicants.
Income Eligibility Standards.--The Committee remains
concerned that USDA's regulations regarding income eligibility
determinations and corresponding allowable practices, including
the definitions of income and household, use of programs
acceptable for adjunctive or automatic eligibility, and income
verification procedures, have created wide disparity among the
States, Territories, and Tribal Organizations. Concerns such as
these were identified in the February 2013 GAO report, ``WIC
Program: Improved Oversight of Income Eligibility Determination
Needed.'' In partial response to the report, USDA issued income
eligibility guidance to all state agencies on April 26, 2013.
The Committee directs USDA to provide a report within 90 days
of enactment detailing the training, technical assistance, and
compliance monitoring activities that USDA will undertake in
connection with the release of these guidelines.
Cost Management within WIC State Agencies.--The Committee
supports USDA's efforts to rein in the cost of WIC food items
while ensuring the nutritional value and food choices for
participants. As state agencies consider options for cost
containment, the Committee directs FNS to closely monitor this
process to ensure there are no unintended consequences for
participants, vendors, or product manufacturers. The Committee
is aware that USDA is conducting management evaluations of all
state agencies since more States have had problems with vendor
management and food cost containment. As demonstrated in USDA's
oversight of States with violations, USDA has the ability to
require state agencies to reduce the maximum dollar amount the
state agency reimburses for WIC food items. The Committee
directs the Department to provide quarterly updates to the
Committee on the management evaluation process, including
concerns that have arisen and steps USDA has taken to correct
any violations. In addition, the Committee is aware that USDA
issued moratoriums that prohibit the authorization of new WIC
vendors in some States. While the Department should be
applauded for efforts to control costs and address fraud, waste
and abuse, both WIC participants and the vendors who serve
participants may be negatively impacted by an indefinite
moratorium. The Committee directs USDA to submit a report
within 60 days of enactment on the actions States need to take
to address Agency concerns, along with a timeline, for lifting
these moratoriums.
Vendors Offering Incentive Items to WIC Participants.--The
practice of some vendors offering incentive items for purchases
of WIC-authorized food items may increase the cost of WIC
foods. Incentives may draw WIC participants who would otherwise
shop at less expensive WIC-authorized stores. In addition, the
price of WIC food items may be increased to cover the cost of
incentives. The Committee encourages the Secretary to use
existing authority to limit incentives on WIC transactions to
help ensure that incentives do not increase WIC food costs and
encourages the Secretary to provide recommendations for
legislative changes that could help ensure that incentives do
not increase WIC food costs.
Childhood Screening.--The Committee recognizes the
important connection between childhood lead poisoning and
nutrition status. The Committee encourages WIC to partner with
stakeholders in an effort to establish point-of-care blood lead
screening activities for children who utilize WIC services in
underserved communities where childhood lead poisoning rates
are high.
Eligible Foods.--The Committee encourages the Secretary to
amend 7 CFR 246.10 in order for state agencies to include all
varieties of fresh, whole or cut vegetables, except for
vegetables with added sugars, fats, oils; provided that
inclusion of such vegetables contribute towards meeting the
special nutritional needs of program participants and increases
the availability of low-cost, high-nutrient alternatives for
participants throughout the year.

SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

2013 appropriation.................................... $77,290,160,000
2014 budget estimate.................................. 78,389,610,000
Provided in the bill.................................. 76,332,112,000
Comparison:
2013 appropriation................................ -958,048,000
2014 budget estimate.............................. -2,057,498,000

COMMITTEE PROVISIONS

For the Supplemental Nutrition Assistance Program (SNAP),
the Committee provides $76,332,112,000. The total amount
includes $3,000,000,000 for a contingency reserve to be used
only in the amount necessary.
Fraud, Waste, and Abuse.--The Committee is aware of recent
USDA efforts to strengthen the integrity of SNAP by
establishing Federal-State data-sharing agreements to reduce
fraud. However, the Committee recognizes more can be done to
target fraud and has previously directed and expects USDA to
permanently debar retailers and participants from the program
if found guilty of fraud and abuse. To further assist in this
effort, the Committee directs USDA to consider all options,
including requiring that retailers participating in SNAP
maintain a unique business identification, in order to identify
any relationship between a disqualified SNAP retailer and all
eligible SNAP participants to effectively screen applicants for
criminal activity, fraud, Federal debarment, and questionable
business practices.
Employment and Training.--The Committee directs the
Secretary to provide a report within 90 days of enactment on
how the SNAP Employment and Training (E&T) program is currently
being used to help SNAP participants gain skills and training
to find productive employment that will allow them to
transition from SNAP to self-sufficiency, including measurable
results of the program. The Committee also encourages the
Secretary to provide a five-year plan for how the E&T program,
as well as any other resources and programs, will be used to
help participants find employment.
Recruitment Activities.--The Committee is concerned about
the use of valuable tax dollars to promote enrollment of SNAP
through radio, television, and other means of advertisements.
The Committee is also concerned by outreach activities with
foreign governments to encourage use of SNAP. The Committee
strongly encourages USDA to cease these types of government-
sponsored recruitment activities.
Prepared Foods/Beverages Purchased with SNAP Benefits.--The
Committee is concerned that SNAP vendors are allowed to sell
prepared food or drink with SNAP benefits beyond those
allowances for the homeless, elderly, or disabled. The
Committee directs USDA to tighten restrictions on SNAP
eligibility for hot prepared foods and extend restrictions to
other foods intended for immediate on-premise consumption such
as hot prepared beverages and fountain drinks.
Commonwealth of the Northern Mariana Islands.--The
Committee is aware of the interest in transitioning the
Commonwealth of the Northern Mariana Islands into SNAP. The
Committee directs the Secretary to provide a report on the
feasibility of establishing SNAP in the Northern Mariana
Islands, including the capabilities of the Commonwealth to
fulfill the responsibilities of a state agency by ensuring
participation of only eligible households, maintaining program
integrity, paying a share of administrative costs with non-
federal funds, and other such requirements as deemed necessary
by the Secretary to operate SNAP.
The Emergency Food Assistance Program.--The Committee urges
USDA to assess the availability of and consider policies and
procedures that would make it easier for food banks and
pantries to serve populations that may have dietary
restrictions due to religious dietary laws.
The following table reflects the Committee recommendations
for the Supplemental Nutrition Assistance Program:

[Dollars in Thousands]

Supplemental Nutrition Assistance Program Account:
Benefits*............................................... $66,541,196
Contingency Reserve..................................... 3,000,000

Administrative Costs:
State Administrative Costs.............................. 3,999,024
Nutrition Education and Obesity Prevention Grant Program 350,000
Employment and Training................................. 437,405
Mandatory Other Program Costs........................... 161,744
Discretionary Other Program Costs....................... 998
Administrative Subtotal............................. 4,949,171

Nutrition Assistance for Puerto Rico (NAP)*............. 2,000,568
American Samoa*......................................... 8,034
Food Distribution Program on Indian Reservations........ 104,000
TEFAP Commodities....................................... 268,500
Commonwealth of the Northern Mariana Islands............ 12,148
Community Food Project.................................. 5,000
Program Access.......................................... 5,000
Subtotal............................................ 2,403,250
ARRA Benefits........................................... -561,505
Total............................................... 76,332,112

*Totals include ARRA benefits: $452,585,000 for core SNAP; $108,485,000
for Nutrition Assistance for Puerto Rico; and, $435,000 for American
Samoa.
---------------------------------------------------------------------------

COMMODITY ASSISTANCE PROGRAM

2013 appropriation*................................... $247,570,000
2014 budget estimate.................................. 271,701,000
Provided in the bill.................................. 265,892,000
Comparison:
2013 appropriation................................ +18,322,000
2014 budget estimate.............................. -5,809,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB

COMMITTEE PROVISIONS

The Committee provides an appropriation of $265,892,000 for
the Commodity Assistance Program. The recommended funding level
for the Commodity Supplemental Food Program is $202,682,000,
the same as the President's budget request.
The Committee recommendation includes $16,548,000 for the
Farmers' Market Nutrition Program.
The Committee has included $45,592,000 for administrative
funding for the Emergency Food Assistance Program (TEFAP).
For the Food Donations Programs, the Committee provides an
appropriation of $1,070,000 for Pacific Island Assistance.
TEFAP Handling and Distribution Costs.--In addition to the
grant funds to support commodity handling and distribution
costs, the bill permits States to use up to 10 percent of the
funds provided for purchasing TEFAP commodities to help with
the costs of storing, transporting, and distributing
commodities. The Committee expects state agencies to consult
with their emergency feeding organizations on the need for the
conversion of such funds.

NUTRITION PROGRAMS ADMINISTRATION

2013 appropriation*................................... $139,899,000
2014 budget estimate.................................. 146,592,000
Provided in the bill.................................. 139,899,000
Comparison:
2013 appropriation................................ - - -
2014 budget estimate.............................. -6,693,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB

COMMITTEE PROVISIONS

For Nutrition Programs Administration, the Committee
provides $139,899,000.
The Committee does not provide funding for the Center for
Nutrition Policy and Promotion to develop federal dietary
guidance for infants and children from birth to 24 months of
age or to promote the Dietary Guidelines for Americans or
MyPlate. The nutrition education services provided through WIC,
along with other Federal nutrition education programs, are
available to assist with the dietary and nutritional needs of
infants and children. The Committee also notes that USDA does
significant advertising of the Dietary Guidelines, MyPlate, and
other resources to promote healthier lifestyles. These efforts
are combined with the ``Let's Move!'' campaign and use of this
information by the public and private sectors.

TITLE V

FOREIGN ASSISTANCE AND RELATED PROGRAMS

Foreign Agricultural Service

SALARIES AND EXPENSES

(INCLUDING TRANSFERS OF FUNDS)

----------------------------------------------------------------------------------------------------------------
Transfer from
Appropriation export loan Total
----------------------------------------------------------------------------------------------------------------
2013 appropriation*.................................... $172,346,000 $6,290,000 $178,636,000
2014 budget estimate................................... 178,826,000 6,394,000 185,220,000
Provided in the bill................................... 172,866,000 6,290,000 179,156,000
Comparison:
2013 appropriation +520,000 --- +520,000
2014 budget estimate -5,960,000 -104,000 -6,064,000
----------------------------------------------------------------------------------------------------------------
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB.

COMMITTEE PROVISIONS

For the Foreign Agricultural Service, the Committee
provides an appropriation of $172,866,000 and transfers of
$6,290,000.
The Committee directs the Secretary, through the Office of
Budget and Program Analysis, in consultation with the
Administrator of the U.S. Agency for International Development,
to submit quarterly reports to the Committee on the status of
the Bill Emerson Humanitarian Trust, as well as to immediately
notify the Committee when the Trust has been drawn down.
Food for Progress.--The Committee supports the work of the
Food for Progress program, which increases rural incomes and
enhances food security by improving agricultural productivity,
supporting agribusiness development, and expanding the
availability of financial services. The Committee encourages
USDA to consider the work of non-governmental organizations
that are involved in small-scale agricultural biomass projects
when issuing awards in the program. These types of projects may
offer numerous benefits, from the production of biomass crops
to the processing and marketing of crop and animal products.
Performance Goals and Outcome Based Measures.--In April
2013, USDA's Office of Inspector General released a report on
FAS performance and said that FAS' performance measures were
not outcome-based and do not show how the United States is
performing in certain markets compared to its competitors. The
Agency's overall agricultural trade strategy, Country Strategy
Statements, and USDA's Global Market Strategy need to
incorporate measurable goals and outcome-based measures so that
USDA can gauge the effectiveness of the investment of
appropriated resources. The Committee directs FAS to report no
later than December 1, 2013, to the Committees on
Appropriations of the House and Senate on how the Agency is
developing outcome-based measures that demonstrate results,
and, if applicable, how FAS is changing the allocation of
resources to promote increased foreign consumption of U.S.
agricultural goods.

Food for Peace Title I Direct Credit and Food for Progress Program
Account

(INCLUDING TRANSFERS OF FUNDS)

2013 appropriation*................................... $2,735,000
2014 budget estimate.................................. 2,628,000
Provided in the bill.................................. 2,735,000
Comparison:
2013 appropriation................................ ---
2014 budget estimate.............................. +107,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the administrative expenses to carry out the credit
program of Food for Peace Title I, Food for Peace Act, and the
Food for Progress Act, the Committee provides an appropriation
of $2,735,000.

Food for Peace Title II Grants

2013 appropriation*................................... $1,433,565,000
2014 budget estimate.................................. ---
Provided in the bill.................................. 1,149,680,000
Comparison:
2013 appropriation................................ -283,885,000
2014 budget estimate.............................. +1,149,680,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

For Food for Peace Title II grants, the Committee provides
$1,149,680,000.
Food Aid Reform.--The Committee is concerned about the
effect of the Administration's proposed reforms on food aid
programs. The Committee directs USDA to work with USAID to
facilitate an independent third party study and submit a report
to the Committees on Appropriations within 60 days of enactment
on (1) how the Administration would find the greatest possible
efficiencies in programs under existing law and regulation
while seeking to feed more people without increased levels of
funding; and, (2) alternatively, explain in detail how the
Administration's proposed reform to PL 480, Title II would be
implemented within the existing statutory and regulatory
framework. The study should address: efforts to combat the
causes of hunger and malnutrition in target populations;
efforts to address specific nutritional needs of the recipient
community; resiliency efforts to reduce the need for emergency
and developmental food assistance; assurance that reforms do
not shift funding away from other existing USDA and/or USAID
programs; actions that would need to be taken to address the
recommendations in GAO report 11-636; and, ways agencies can
better coordinate efforts to maximize results.

ADMINISTRATIVE EXPENSES

(INCLUDING TRANSFERS OF FUNDS)

2013 appropriation*................................... $6,635,000
2014 budget estimate.................................. 6,748,000
Provided in the bill.................................. 6,635,000
Comparison:
2013 appropriation................................ ---
2014 budget estimate.............................. -113,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For administrative expenses of the Commodity Credit
Corporation Export Loans Program Account, the Committee
provides an appropriation of $6,635,000.

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

2013 appropriation*................................... $183,816,000
2014 budget estimate.................................. 185,126,000
Provided in the bill.................................. 180,320,000
Comparison:
2013 appropriation................................ -3,496,000
2014 budget estimate.............................. -4,806,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For McGovern-Dole International Food for Education and
Child Nutrition Program Grants, as authorized by Section 3107
of P.L. 107-171 (7 U.S.C. 1736o-1), the Committee provides an
appropriation of $180,320,000.

TITLE VI

RELATED AGENCIES AND FOOD AND DRUG ADMINISTRATION

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

(SALARIES AND EXPENSES)

(Dollars in Thousands)
----------------------------------------------------------------------------------------------------------------
Appropriation User fees Total, FDA S&E
----------------------------------------------------------------------------------------------------------------
2013 appropriation*................................. $2,461,051 $1,698,804 $4,159,855
2014 budget estimate................................ 2,548,905 1,794,765 4,343,670
Provided in the bill................................ 2,485,399 1,794,765 4,280,164
Comparison:
2013 appropriation +24,348 +95,961 +120,309
2014 budget estimate -63,506 --- -63,506
----------------------------------------------------------------------------------------------------------------
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB ATB.

The Committee provides an appropriation of $2,485,399,000
in new budget authority for the Food and Drug Administration
(FDA). In addition, the Committee recommends the following user
fee amounts: $760,000,000--prescription drugs; $114,833,000--
medical devices; $23,600,000--animal drugs; $7,328,000--animal
generic drugs; $534,000,000--tobacco products; $12,925,000--
food and feed recalls; $15,367,000--food reinspection;
$305,996,000--human generic drugs; and, $20,716,000--
biosimilars. The combination of new budget authority and user
fees provides FDA with a total discretionary salaries and
expenses level of $4,280,164,000. This total does not include
permanent, indefinite user fees for mammography, export, and
color certification of $31,765,000.
The Committee recommendation includes $63,896,000 for White
Oak Consolidation and $9,748,700 for inspections in China. The
Committee includes an additional $26,747,000 for food safety
activities and an additional $2,524,000 for medical product
safety activities.
The Committee assumes that the pending animal drug and
animal generic drug user fee reauthorizations will occur.
The Committee recommendation does not include proposed user
fees for food facility registration, food import, medical
products reinspection, international courier, cosmetics, or
food contact notification.
The Committee includes an increase of $1,004,000 above the
fiscal year 2013 funding level and not less than $10,312,000 of
FDA headquarters funding for medical countermeasures
initiative.
The Committee does not include requested funding for a
civilian pay increase across the agency. Should the President
provide a civilian pay increase for 2014, it is assumed that
the cost of such a pay increase will be absorbed within
existing appropriations for fiscal year 2014. The Committee
does include, however, $1,125,000 for the Commissioned Corps
pay increase.
The Committee notes that funding for the National
Antimicrobial Response Monitoring System is estimated at
$7,800,000 in fiscal years 2013 and 2014 and urges FDA to
consider providing additional funding for this program if
warranted.
The Committee directs FDA to maintain the fiscal year 2012
funding level for the Food Contact Notification program.
Spending Plans.--Within 30 days of enactment, the
Commissioner shall notify the Committees on Appropriations of
both Houses of Congress on the allocation of the funds provided
herein, by account, and within each account by program,
project, and activity.
FDA User Fee Collections/Obligations.--The Committee is
concerned about the large unobligated balances that continue to
occur in FDA's user fee programs. While Congress did allow for
some exemptions from fiscal year limitations and for some
amounts to be carried forward into subsequent fiscal years, it
could not have been anticipated that FDA would be carrying in
excess of $1,000,000,000 in unobligated user fees halfway into
any fiscal year. In the Tobacco user fee program alone, the
fiscal year 2012 unobligated balance that carried over into
fiscal year 2013 was $600,000,000. While FDA estimates this
figure will drop to $250,000,000 by the end of fiscal year
2013, the Committee remains skeptical that this will occur. The
Committee directs that not later than November 1, 2013, and
each month thereafter through the months covered by this
Appropriations Act, the Commissioner to submit to the
Committees on Appropriations of the House and the Senate a
report on user fees collected for each user fee program
included in the bill. The report shall also include monthly
obligations incurred against such fee collections. The first
report shall include a distinct categorization of the user fee
balances that are being carried forward into fiscal year 2014
for each user fee account as well as a detailed explanation of
what accounts for the balance and what the balance will be used
for.
Transparency Concerns.--The Committee is concerned about
the unpredictable nature and pace at which FDA moves guidance,
rules, and regulations through the process. The Agency must
understand that FDA is often viewed as a primary source of
information for consumer decisions that impact their health and
well-being. The Committee understands that many rules and
regulations get through the agency and the department only to
languish at the Office of Management and Budget (OMB). On the
other hand, FDA has discretion to issue advisories and guidance
without the need for OMB clearance. In a number of critical
health areas, American consumers and industry are faced with no
guidance at all or inconsistent messages on many important
issues. The following is a list of examples: seafood advisory
for pregnant women; sunscreen ingredients; new dietary
ingredients for dietary supplements; and, Bisphenol A. The
Committee directs FDA to report to the Committees on
Appropriations by September 1, 2013, on how the agency plans to
develop new methods of communicating with its stakeholders on
future actions affecting critical policy issues, including
estimated timeframes for when regulations, advisories, and
guidance are planned for release and what decision points are
necessary before these policy documents can be made.
Neglected Tropical Diseases (NTD).--The Committee has
become aware that Chagas disease is not on the list of
neglected diseases as currently defined by FDA. The Committee
urges FDA to make the necessary modifications to include Chagas
disease in its list of neglected diseases in line with World
Health Organization's list of NTDs. Additionally, the Committee
directs that FDA build stronger partnerships with global
regulatory stakeholders and strengthen its internal capacity to
review products for neglected diseases.
Guidance for Industry.--The Committee directs the Secretary
of Health and Human Services to finalize Guidance for Industry
(GFI) #213 prior to January 1, 2014. The Committee directs the
Secretary of Health and Human Services to publish a report not
later than one year following the date of finalization of GFI
#213 that (1) lists the following, for each medically important
antimicrobial new animal drug administered in feed or water to
food-producing animals with one or more approved production
claims (including any growth promotion, feed efficiency, or
weight gain claims) and/or that are approved for over-the-
counter (OTC) marketing, provided that such antimicrobial is in
a class of drugs that FDA determines accounts for 10 percent or
more of all physician prescriptions: (a) the drug's new animal
drug application (NADA) number(s), (b) sponsor, (c) all
antimicrobial active ingredients contained in the drug, and,
(d) all production claims approved for the drug; and (2)
specifies the number of sponsors of the new animal drugs listed
that have notified the FDA of their intent to participate in
the voluntary process described in GFI #213. The Committee
further directs the Secretary, beginning not later than one
year following the finalization of GFI #213, to publish annual
reports that (1) specify the number of antimicrobial new animal
drugs for which sponsors have submitted applications under GFI
#213 to change existing approvals, broken out by type of change
sought (i.e., removal of production claims; addition of
treatment, control, and/or prevention claims; and removal of
OTC marketing status); and (2) list the applications submitted
under GFI #213 that have been approved by the agency by NADA
number, and if not approved or rejected, indicate whether the
inaction was a result of insufficient FDA resources,
insufficient information from sponsors or some other reason.
Nutrition Labeling.--The Committee remains concerned with
FDA's proposed rule to regulate Nutrition Labeling of Standard
Menu Items at Chain Restaurants. The Committee urges FDA to use
the proposed alternative Option 2 definition of the rule which
only applies to restaurants or retail establishments where the
primary and majority of business is the selling of food for
consumption or the selling of food that is processed or
prepared on the premises.
The Committee believes the agency should take into account
the increased costs and logistical challenges chain restaurants
will face in meeting the requirements of the proposed rule. To
meet the requirements of the law, FDA should consider a clear,
conspicuous statement of required nutritional information on a
prominently displayed poster adjacent to the menu board and
nutritional information to be provided in pamphlet form
prominently displayed next to drive-through menu boards as
meeting such requirements.
Food safety monitoring.--The Committee notes that the
National Agriculture and Food Defense Strategy Plan is being
finalized as required by Section 108 of Public Law 111-353. As
research needs are identified to carry out this section, the
Committee encourages FDA to consider funding research that
would provide portable and technologically advanced testing
platforms needed to effectively monitor and protect against
intentional adulteration of the food supply.
Regulations.--The Committee appreciates FDA's
acknowledgement that exclusive tobacco products may raise
different questions of public health and may need to be treated
differently. Further, the Committee notes that there are key
differentiating and unique characteristics of premium cigars
and that any effort to bring these products under the
``deeming'' rule should proceed with these factors being taken
into consideration.
Sunscreen.--Approximately two million cases of skin cancer
are diagnosed each year and an estimated one in five Americans
may develop skin cancer during their lifetime. Since sunscreen
use can help prevent this disease, the Committee is concerned
that FDA has taken no final action to approve new sunscreen
ingredients under the Time and Extent Applications (TEA)
process. The Committee understands that new sunscreen
ingredient TEAs have been pending at FDA for more than 10 years
without any approvals despite their widespread safe and
effective use in other countries. FDA has listed final action
on sunscreen ingredient applications in its Unified Agenda
every year since 2008; however, no such action has ever been
taken. Therefore, FDA shall take final action on all sunscreen
ingredient applications currently pending by June 1, 2014, and
shall work with Congress and stakeholders--including ingredient
manufacturers, finished product manufacturers, dermatologists,
cancer prevention organizations and others--to develop a new
process that will allow safe and effective sunscreen ingredient
market applications to receive a final decision from FDA within
one year of application date.
New dietary ingredients.--The Committee notes that FDA has
not addressed issues relating to its July 2011 draft guidance
on New Dietary Ingredients (NDI) for Dietary Supplements
despite this Committee's urging it to do so last year. The
Committee continues to be concerned that this guidance is being
utilized by FDA for enforcement activities despite the document
only being draft guidance. The Committee directs FDA to report
back within 60 days of enactment of this Act with a timeline on
how it intends to re-engage the dietary supplement community to
develop a final guidance on what constitutes a NDI.
Food Safety Centers of Excellence.--The funding provided
for CFSAN supports the base funding for the CFSAN Centers of
Excellence at the FY 2011 level, including Food Safety
Modernization Act collaborative efforts with these Centers. The
Committee encourages FDA to maintain an appropriate funding
level for both Food Safety Modernization Act related and other
food safety related activities performed by these Centers of
Excellence.
Cosmetics.--The Committee directs the Office of Cosmetics
and Colors to respond by September 30, 2013, to a citizen
petition setting safety levels for trace amounts of lead in
cosmetics.
Food and Drug Safety and Innovation Act.--The Committee is
aware that shortages of critical drugs persist following the
enactment of the Food and Drug Safety and Innovation Act.
Surveys conducted by the American Association of Nurse
Anesthetists, the American Hospital Association, and the
American Society of Health-System Pharmacists report persistent
shortages of drugs used in anesthesia care, oncology, and other
services, owing primarily to problems in manufacturing, which
impair patient access to care and patient experiences in the
healthcare system, delay surgical procedures, and possibly
increase overall healthcare costs. The Committee directs the
Commissioner to continue to prioritize the public reporting of
manufacturing shortages and to work with industry to prevent
conditions that might lead to drug shortages.
Food and Veterinary Medicine.--The Committee is aware of
the important support provided to FDA's food and veterinary
medicine programs and through its research and program
relations with their centers of excellence. The Committee
encourages FDA to maintain an appropriate funding level for
both Food Safety Modernization Act related activities and the
base work performed by these centers.
Compounded Drugs.--The Committee is concerned by the
quantity and volume of recalls of compounded sterile products
and therapies. The Committee awaits the results of a study by
GAO providing updated information on state and Federal
oversight of compounding. Furthermore, the Committee encourages
FDA and the States to work together to improve and strengthen
oversight and enforcement of compounding pharmacies.
Food Product Tracing.--Pursuant to Section 204 of the Food
Safety Modernization Act, FDA initiated pilot projects for
improving product tracing along the food supply system and the
establishment of recordkeeping requirements for high-risk
foods. These pilots were conducted by the Institute of Food
Technologists, in consultation with various industry sectors,
USDA, state agencies, and consumer groups. A report on these
projects was published on March 4, 2013, and that report
affirmed that industry and government continue to pursue
traceability goals on separate tracks and with little
collaboration. The Committee directs the Commissioner, in
consultation with the Secretary of Agriculture, to create a
science-based, international food traceability initiative
through a collaborative public-private partnership model.
Furthermore, the Committee directs the Commissioner to provide
a report within 180 days of enactment of this Act detailing the
structure, goals, and implementation status of such
traceability initiative.
Center for Tobacco Products Performance.--The Committee
understands that GAO is conducting a study of FDA's premarket
review of tobacco products. The Committee directs that, upon
publication of that study, FDA shall use it to identify a set
of regulatory performance standards that will address pending
and new substantial equivalent applications, pending and new
modified risk applications, citizen petitions, and meeting
requests. The Committee further directs FDA to report to the
Committees on Appropriations by March 31, 2014, on the
implementation of such performance standards.
Low-Risk, Expedited Imports.--The current fiscal
environment and the growing number of import entries require
that efforts to enhance safety must be directed towards the
most serious compliance infractions. The Committee strongly
encourages FDA to establish a pilot project to expedite imports
for importers with strong safety records. Such project could be
modeled on the Customs and Border Protection (CBP) Customs-
Trade Partnership Against Terrorism and Importer Self-
Assessment programs which address security of imported
products. The goal would be new trade facilitation methods for
low-risk importers that provide accurate and reliable data,
have a history of importing compliant products, and low risk
cargo that could be incorporated into the import inspection
process, thereby enabling FDA to better leverage financial
resources. FDA is strongly encouraged to provide clear
guidelines for those importers that are low-risk and to
collaborate with CBP and other relevant agencies to enhance
information sharing between agencies on this work. FDA is
directed to provide a report to the Committee on its efforts in
this regard by December 1, 2013.
Cough and Cold Products for Children.--The Committee is
concerned that FDA has not issued a proposed rule revising the
monograph regulating the labeling of over-the-counter cough and
cold products for children. The Committee directs the agency to
publish a proposed rule by December 31, 2013, based on
scientific evidence for safety and efficacy in pediatric
populations and taking into consideration the October 19, 2007,
joint recommendations of its Pediatric Advisory Committee and
Nonprescription Drugs Advisory Committee.
Data Collection.--To assist efforts intended to address
antibiotic use, the Committee directs the Secretaries of Health
and Human Services and Agriculture to require appropriate
agencies to collaborate to (1) identify approaches for
collecting detailed data on antibiotic use in food-producing
animals, (2) seek stakeholder and broad public input to develop
a proposal for collecting this information, and (3) use the
data to assess the effectiveness of policies to curb antibiotic
resistance. The Committee further directs FDA to ensure that
ARS continues to analyze, characterize, and report on data
collected through NARMS.
Seafood Advisory.--FDA must publish a final seafood
advisory in conjunction with all applicable parties as directed
in House Report 112-101 and Senate Report 112-73. The advisory
must be consistent with USDA's dietary guidelines and be
completed and available to the public by June 30, 2013.
User Fees.--The Committee is concerned about subjecting FDA
user fees to sequestration as these fees are not normal tax
revenue. It is important to maintain the integrity and industry
support for user fee programs. The Committee encourages FDA to
reevaluate its calculations of sequestration in regard to user
fees.
Statutory Deadlines.--The Committee is aware the
Administration continues to miss statutory deadlines for
rulemaking to implement Public Law 111-353. The Committee
expects the Administration to meet the statutory timelines for
implementing Public Law 111-353 and directs FDA to provide a
report every 180 days detailing the reasons and justification
for any proposed rule or final regulation being 120 days or
more beyond its statutory deadline.
Mammography Quality.--The Committee urges FDA to follow up
the November 2011 meeting of the National Mammography Quality
Assurance Advisory Committee by promptly reviewing the evidence
supporting including information related to an individual's
breast density in the mammogram patient report and physician
report.
Canned Tuna.--The Committee directs FDA to revise the
standard of identity for canned tuna to adopt the drained
weight fill of container standard as requested in the 1994
``Citizens Petition to Amend Canned Tuna Standard of Identity,
21 CFR 161.190, Docket No. FDA-2011-P-0763.'' According to the
Congressional Research Service, the United States is the only
country that uses the pressed cake weight fill of container
standard that requires outdated 1950s technology. CODEX, the
Association of Official Analytical Chemists, and all other
countries use the drained weight fill of container. FDA shall
revise the standard of identity for canned tuna to replace the
pressed cake weight method with the drained weight method by
December 31, 2013. FDA shall approve temporary marketing
permits that adopt the drained weight method consistent with
international standards until such time as final regulations
are published updating the standard of identity for canned
tuna.
Impact on Small Businesses.--The Committee is concerned by
unintended consequences of the Generic Drug User Fee Act
(GDUFA) fee structure. While the Committee understands that
user fees provide the resources to facilitate generic drug
approvals, the Committee believes FDA should study the impact
of smaller generic manufacturers' ability to pay at the same
level as large manufacturers. The Committee directs FDA to
provide a report to the Committees on Appropriations on the
impact of the GDUFA fee structure on smaller generic drug
manufacturers within 180 days of enactment of this Act.
Abuse-Deterrent Drugs.--The Committee supports FDA's recent
efforts to ensure that certain opioids are kept off the market
and commends the agency for removal of those products for
reasons of safety or effectiveness. The Committee understands
that FDA established draft guidance in January 2013 entitled
Evaluation and Labeling of Abuse-Deterrent Opioids, and
encourages the agency to move expediently to finalize such
guidance.
Artificial Pancreas.--The Committee applauds the FDA for
its final guidance for artificial pancreas device systems,
released in November 2012, which provides clear and reasonable
guidance for research and premarket review of such systems,
which could transform the lives of those living with type 1
diabetes. The Committee urges the FDA to ensure that the
flexible, science-based approach reflected in its guidance is
implemented consistently in the IDE and PMA review process to
ensure that safety and effectiveness of innovative systems can
be tested without delay and improved devices can become
available to those with type 1 diabetes in the near future.
Compounding of Sterile Injectable Prescription Drugs.--The
Committee urges the Food and Drug Administration to use its
existing authority to closely inspect and supervise large-scale
compounding and repackaging of sterile injectable drugs and
biological products, especially those administered into areas
where there is tempered immunity.
Food Additive Petition.--The Committee understands that a
Food Additive Petition has been submitted to the agency
regarding the fortification of corn masa flour with folic acid
to prevent neural tube defects such as spina bifida. The
Committee encourages the agency to consider this petition
expeditiously and, if further data or information is needed
from the petitioners, to request it in a timely fashion to
ensure that the petition is not unduly delayed.
Pediatric Device Consortia Program.--The Committee is
pleased with the success of the Pediatric Device Consortia
Grant Program, authorized under Section 305 of Public Law 110-
85. The program funds consortia to assist innovators in
developing medical and surgical devices designed for the unique
needs of children, needs that often go unmet by devices
currently available on the market. The consortia funded by this
program have assisted in the development of over 219 pediatric
device ideas since its inception. The Committee urges the FDA's
continued support of this important program.

BUILDINGS AND FACILITIES

2013 appropriation*................................... $5,186,000
2014 budget estimate.................................. 8,788,000
Provided in the bill.................................. - - -
Comparison:
2013 appropriation................................ -5,186,000
2014 budget estimate.............................. -8,788,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

The Committee does not provide an appropriation for the
Building and Facilities account.

INDEPENDENT AGENCIES

Commodity Futures Trading Commission

2013 appropriation*................................... $205,294,000
2014 budget estimate.................................. 315,000,000
Provided in the bill.................................. 194,555,000
Comparison:
2013 appropriation................................ -10,739,000
2014 budget estimate.............................. -120,445,000
*FY13 enacted level does not include the 251A sequester or Sec. 3004 OMB
ATB.

COMMITTEE PROVISIONS

For the Commodity Futures Trading Commission, the Committee
provides an appropriation of $194,555,000, of which $35,500,000
is for the purchase of information technology.
Regulations.--The Committee is concerned about duplicative
and overreaching regulations that are resource intensive. The
Committee includes bill language directing the Commission to
submit cost-benefit studies of these regulations to the
Committees of jurisdiction.
Swap Dealer De Minimis.--The Committee directs the
Commission to submit a report within 60 days of enactment to
the Committees on Appropriations of the House and Senate that:
(1) quantifies the number of swap dealers currently registered
with the Commission; (2) lists the aggregate gross notional
amount of swap activity as of the date of enactment per CFTC
regulation 1.3(ggg)(4) for each registered swap dealer without
individually identifiable information; (3) estimates the number
of additional swap dealers that will register with the
Commission if the de minimis threshold is reduced to $3
billion; (4) lists each registered swap dealer, without
individually identifiable information, that is deemed a
Systemically Important Financial Institution by the Financial
Stability Oversight Commission and/or the Financial Stability
Board; and (5) lists the total revenue and assets of each
registered swap dealer and corresponds with the data provided
in criteria #2 and #3 without individually identifiable
information.
Administrative Law Judges.--The Committee is concerned
about the elimination of the Administrative Law Judges (ALJ)
program and a possible reprogramming of those funds while an
investigation regarding CFTC's reduction-in-force is ongoing.
Further questions have been raised by the Federal ALJ
Conference regarding authority under the Administrative
Procedures Act and best practices of CFTC's intention to use
non-ALJ hearing officers. Minimum requirements for such hearing
officers do not include a law degree, but the officers would
still be able to make administrative case law disbarring and
disqualifying market participants. The additional fact that
CFTC has sole authority to hire and fire these non-ALJ hearing
officers removes their ability to make independent decisions
free from political influence.
Five-year Strategic Information Technology Plan.--The
Committee directs CFTC to develop a five-year, strategic
technology investment plan. This plan may be produced
individually or incorporated as an appendix to the Commission's
five-year strategic plan. The plan should include achievable
objectives with measurable results supported by projected
resource requirements. The focus should be on market
surveillance, risk management, and customer protection by
transitioning from personnel to technology in today's
electronic marketplace.
Pay Cost.--The Committee does not include requested funding
for a civilian pay increase across the Commission. Should the
President provide a civilian pay increase for 2014, it is
assumed that the cost of such a pay increase will be absorbed
within existing appropriations for fiscal year 2014.

Farm Credit Administration

LIMITATION ON ADMINISTRATIVE EXPENSES

2013 limitation....................................... ($63,300,000)
2014 budget estimate.................................. (63,300,000)
Provided in the bill.................................. (61,900,000)
Comparison:
2013 limitation................................... -1,400,000
2014 budget estimate.............................. -1,400,000

COMMITTEE PROVISIONS

For a limitation on the expenses of the Farm Credit
Administration, the Committee provides $61,900,000.
Executive Compensation Regulation.--The bill includes
language regarding FCA's executive compensation regulation.
FCA Administrative Expenses.--The Committee continues to be
concerned about the increases in FCA's administrative expenses,
its growing assessments on Farm Credit System institutions,
large carryover amounts, and the significant balance in its
interest reserve fund. The Committee directs the agency to
include a plan to substantially reduce its carryover in its
fiscal year 2015 budget request.
Limitation on Administrative Expenses.--The Committee
provides FCA with authority to exceed its limitation by up to
10 percent upon notification to the House and Senate Committees
on Appropriations.

TITLE VII

GENERAL PROVISIONS

(INCLUDING RESCISSIONS AND TRANSFERS OF FUNDS)

The General Provisions contained in the accompanying bill
for fiscal year 2014 are fundamentally the same as those
included in last year's appropriations bill.
The following general provisions are included in the bill:
Section 701: Limitation on the purchase of passenger motor
vehicles.
Section 702: Transfer authority regarding the Working
Capital Fund.
Section 703: Limitation on certain obligations.
Section 704: Indirect cost rates for cooperative agreements
with nonprofit institutions.
Section 705: Disbursement of rural development loans.
Section 706: Authority of the Chief Information Officer
relating to new IT systems.
Section 707: Availability of mandatory conservation program
funding.
Section 708: Rural Utility Service borrower eligibility.
Section 709: Indirect costs related to research grants.
Section 710: Availability of agency funds for information
technology.
Section 711: Funding availability for liquid infant
formula.
Section 712: Prohibition on first-class airline travel.
Section 713: Use of funds authorized by the Commodity
Credit Corporation Act.
Section 714: Limitation on funds for commodities under the
Bill Emerson Humanitarian Trust.
Section 715: Funding for advisory committees.
Section 716: Indirect costs for competitive agricultural
research grants.
Section 717: Language regarding the Food and Nutrition Act
of 2008.
Section 718: Limitation on certain funds.
Section 719: Limitation on certain funds.
Section 720: Language on user fee proposals without
offsets.
Section 721: Language on reprogramming.
Section 722: Language on fees for the business and industry
guaranteed loan program.
Section 723: Language on questions for the record.
Section 724: Language regarding prepackaged news stories.
Section 725: Language on prohibition on paid details in
excess of 30 days.
Section 726: Language on the mohair program.
Section 727: Rescission of certain unobligated balances.
Section 728: Language regarding spending plans.
Section 729: Rescission of certain unobligated balances.
Section 730: Language on controls over humanitarian food
assistance.
Section 731: Use of funds for humanitarian food assistance
programs.
Section 732: Language on agency rental payments.
Section 733: Rescission of certain unobligated balances.
Section 734: Rescission of certain unobligated balances.
Section 735: Language regarding the Single Family Housing
Direct Loan Program.
Section 736: Limitation on certain funds.
Section 737: Rescission of certain unobligated balances.
Section 738: Rescission of certain unobligated balances.
Section 739: Language regarding USDA loan programs.
Section 740: This provision establishes a National
Commission on Hunger.
Section 741: Language is included regarding reprogramming
of funds.
Section 742: Language is included regarding regulations
under the Packers and Stockyards Act.
Section 743: Language is included regarding WIC.
Section 744: Language is included regarding improper
payments.
Section 745: Language is included regarding nutrition
programs.
Section 746: Sense of Congress regarding hunger.
Section 747: Language is included regarding rural housing.
Section 748: Language is included regarding CFTC.
Section 749: Language on horse slaughter.
Section 750: Language is included for the Spending
Reduction Account.

HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS

TRANSFER OF FUNDS

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the
House of Representatives, the following lists the transfers of
unexpended balances included in the accompanying bill.
1. Hazardous Materials Management.--The bill allows the
funds appropriated to the Department for hazardous materials
management to be transferred to agencies of the Department as
required.
2. Departmental Administration.--The bill requires
reimbursement for expenses related to certain hearings.
3. Office of the Assistant Secretary for Congressional
Relations.--The bill allows a portion of the funds appropriated
to the Office of the Assistant Secretary to be transferred to
agencies.
4. Animal and Plant Health Inspection Service.--Authority
is included to enable the Secretary of Agriculture to transfer
from other appropriations or funds of the Department such sums
as may be necessary to combat emergency outbreaks of certain
diseases of animals, plants, and poultry.
5. Funds for Strengthening Markets, Income, and Supply.--
The bill limits the transfer of section 32 funds to purposes
specified in the bill.
6. Farm Service Agency Salaries and Expenses.--The bill
provides that funds provided to other accounts in the agency
may be merged with the salaries and expenses account of the
Farm Service Agency.
7. Dairy Indemnity Program.--The bill authorizes the
transfer of funds to the Commodity Credit Corporation, by
reference.
8. Commodity Credit Corporation.--The bill includes
language allowing certain funds to be transferred to the
Foreign Agricultural Service for information resource
management activities.
9. Rural Development Salaries and Expenses.--The bill
provides that prior year balances from certain accounts shall
be transferred to and merged with this account.
10. Rural Community Facilities Program Account, Rural
Business Program Account, and Rural Water and Waste Disposal
Program Account.--The bill provides that balances from the
Rural Community Advancement Program may be transferred to and
merged with these accounts.
11. Child Nutrition Programs.--The bill includes authority
to transfer section 32 funds to these programs.
12. Foreign Agricultural Service Salaries and Expenses.--
The bill allows for the transfer of funds from the Commodity
Credit Corporation Export Loan Program Account.
13. Food for Peace Title I Direct Credit and Food for
Progress Program Account.--The bill allows funds to be
transferred to the Farm Service Agency, Salaries and Expenses
account. The bill also provides that funds made available for
the cost of title I agreements and for title I ocean freight
differential may be used interchangeably.
14. Commodity Credit Corporation Export Loans Program.--The
bill provides for transfer of funds to the Foreign Agricultural
Service and to the Farm Service Agency for overhead expenses
associated with credit reform.
15. Food and Drug Administration, Salaries and Expenses.--
The bill allows funds to be transferred among activities.
16. General Provisions.--The bill allows unobligated
balances of discretionary funds to be transferred to the
Working Capital Fund.
17. General Provisions.--The bill allows funds to be
transferred to recover the full cost of space and security
expenses.

CHANGES IN THE APPLICATION OF EXISTING LAW

Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of
the House of Representatives, the following statements are
submitted describing the effect of provisions in the
accompanying bill that directly or indirectly change the
application of existing law.
The bill includes a number of provisions which place
limitations on the use of funds in the bill or change existing
limitations and which might, under some circumstances, be
construed as changing the application of existing law:
1. Office of the Secretary.--Language is included to limit
the amount of funds for official reception and representation
expenses, as determined by the Secretary.
2. Departmental Administration.--Language is included to
reimburse the agency for travel expenses incident to the
holding of hearings.
3. Agricultural Research Service.--Language is included
that allows the Agricultural Research Service to grant
easements at the Beltsville, MD, agricultural research center
and to grant easements at any facility for the construction of
a research facility for use by the agency.
4. Animal and Plant Health Inspection Service.--A provision
carried in the bill since fiscal year 1973 regarding state
matching funds has been continued to assure more effective
operation of the brucellosis control program through state cost
sharing, with resulting savings to the Federal budget.
Language is included to allow APHIS to recoup expenses
incurred from providing technical assistance goods, or services
to non-APHIS personnel, and to allow transfers of funds for
agricultural emergencies.
Language is included to limit the amount of funds for
representational allowances.
5. Agricultural Marketing Service, Limitation on
Administrative Expenses.--The bill includes language to allow
AMS to exceed the limitation on administrative expenses by 10
percent with notification to the Appropriations Committees.
This allows flexibility in case crop size is understated and/or
other uncontrollable events occur.
6. Grain Inspection, Packers and Stockyards Administration,
Inspection and Weighing Services.--The bill includes authority
to exceed the limitation on inspection and weighing services by
10 percent with notification to the Appropriations Committees.
This allows for flexibility if export activities require
additional supervision and oversight, or other uncontrollable
factors occur.
7. Dairy Indemnity Program.--Language is included by
reference that allows the Secretary to utilize the services of
the Commodity Credit Corporation for the purpose of making
dairy indemnity payments.
8. Agricultural Credit Insurance Fund Program Account.--
Language is included that deems the pink bollworm a boll weevil
for the purposes of administering the boll weevil loan program.
9. Risk Management Agency.--Language is included to limit
the amount of funds for official reception and representation
expenses.
10. Commodity Credit Corporation Fund.--Language is
included to provide for the reimbursement appropriation.
Language is also included to allow certain funds transferred
from the Commodity Credit Corporation to be used for
information resource management. In addition, language is
included which limits the amount of funds that can be spent on
operation and maintenance costs of CCC hazardous waste sites.
11. Natural Resources Conservation Service--Conservation
Operations.--Language which has been included in the bill since
1938 prohibits construction of buildings on land not owned by
the government, although construction on land owned by States
and counties is permitted as authorized by law.
12. Rural Development Salaries and Expenses.--Language is
included to allow funds to be used for advertising and
promotional activities and to limit the amount of funds to
provide modest nonmonetary awards to non-USDA employees.
13. Rental Assistance Program.--Language is included which
provides that agreements entered into during the current fiscal
year be funded for a one-year period.
14. Special Supplemental Nutrition Program for Women,
Infants, and Children (WIC).--Language is included to purchase
infant formula except in accordance with law and pay for
activities that are not fully reimbursed by other departments
or agencies unless authorized by law.
15. Supplemental Nutrition Assistance Program.--Language is
included on funds availability for Employment and Training, the
Nutrition Education and Obesity Prevention Grant Program, and
to enter into contracts and employ staff to conduct studies,
evaluations, or to conduct activities related to program
integrity.
16. Foreign Agricultural Service.--Language carried since
1979 enables this agency to use funds received by an advance or
by reimbursement to carry out its activities involving
international development and technical cooperation. Language
is included to limit the amount of funds for official reception
and representation expenses.
17. Commodity Futures Trading Commission.--Language is
included to limit the amount of funds for official reception
and representation expenses.
18. Farm Credit Administration.--The bill includes
authority to exceed the limitation on assessments by 10 percent
with notification to the Appropriations Committees.
19. General Provisions.--
Section 704: This provision provides that none of the funds
in this Act may be made available to pay indirect costs charged
against competitive agricultural research, education, or
extension grants awarded by the National Institute of Food and
Agriculture in excess of 10 percent of total direct costs.
Section 705: This provision allows funds made available in
the current fiscal year for the Rural Development Loan Fund
program account; the Rural Electrification and
Telecommunications Loans program account; and the Rural Housing
Insurance Fund program account to remain available until
expended to disburse obligations.
Section 706: Language is included that requires approval of
the Chief Information Officer and the concurrence of the
Executive Information Technology Investment Review Board for
acquisition of new information technology systems or
significant upgrades, and that prohibits the transfer of funds
to the Office of the Chief Information Officer without the
notification of the Committees on Appropriations of both Houses
of Congress.
Section 707: Language is included regarding the
availability of funds for certain conservation programs.
Section 708: Language is included regarding certain Rural
Utilities Service Programs.
Section 709: Language is included regarding indirect costs
to grants made under section 412 of the Agricultural Research,
Extension, and Education Reform Act of 1998.
Section 710: Language is included that allows unobligated
balances of the Farm Service Agency and Rural Development
mission areas to be used for information technology purposes.
Section 711: Language is included regarding reconstituted
liquid concentrate infant formula issuance to WIC participants.
Section 712: Language is included regarding the prohibition
of first-class travel by the employees of agencies funded in
this Act.
Section 713: Language is included regarding the use of
authorities of the Commodity Credit Corporation.
Section 715: Language is included that limits the amount of
spending for USDA Advisory Committees.
Section 716: Language is included modifying matching
requirements for certain research grants.
Section 717: Language is included regarding the Food and
Nutrition Act of 2008.
Section 718: Language regarding certain limitations.
Section 719: Language regarding certain limitations.
Section 720: Language is included that prohibits funds from
being used to prepare a budget submission to Congress that
assumes reductions from the previous year's budget due to user
fee proposals unless the submission also identifies spending
reductions which should occur if the user fees are not enacted.
Section 721: Language is included that requires certain
reprogramming procedures of funds provided in Appropriations
Acts.
Section 722: Language is included regarding fees for the
business and industry guaranteed loan program.
Section 723: This provision prohibits the Department of
Agriculture or the Food and Drug Administration from
transmitting or making available to any non-Department of
Agriculture or non-Department of Health and Human Services
employee questions or responses to questions that are a result
of information requested for the appropriations hearing
process.
Section 724: Language regarding prepackaged news stories.
Section 725: This provision prohibits any employee of the
Department of Agriculture from being detailed or assigned to
any other agency or office of the Department for more than 30
days unless the individual's employing agency or office is
fully reimbursed by the receiving agency or office for the
salary and expenses of the employee for the period of
assignment.
Section 726: Language is included regarding the mohair
program.
Section 727: Rescission of certain unobligated balances.
Section 729: Rescission of certain unobligated balances.
Section 731: Language is included regarding the use of
funds for humanitarian food assistance programs.
Section 732: Language is included regarding USDA agency
rental payments.
Section 733: Rescission of certain unobligated balances.
Section 734: Rescission of certain unobligated balances.
Section 735: Language regarding the Single Family Housing
Direct Loan Program.
Section 736: Language regarding certain limitations.
Section 737: Rescission of certain unobligated balances.
Section 738: Rescission of certain unobligated balances.
Section 739: Language regarding USDA loan programs.
Section 740: This provision establishes a National
Commission on Hunger.
Section 741: Language is included regarding reprogramming
of funds.
Section 742: Language is included regarding regulations
under the Packers and Stockyards Act.
Section 743: Language is included regarding WIC.
Section 744: Language is included regarding improper
payments.
Section 745: Language is included regarding nutrition
programs.
Section 746: Sense of Congress regarding hunger.
Section 747: Language is included regarding rural housing.
Section 748: Language is included regarding CFTC.
Section 749: Language on horse slaughter.
Section 750: Language is included for the Spending
Reduction Account.

DISCLOSURE OF EARMARKS AND CONGRESSIONALLY DIRECTED SPENDING ITEMS

Neither the bill nor the report contains any Congressional
earmarks, limited tax benefits, or limited tariff benefits as
defined in clause 9 of rule XXI.

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

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

PROGRAM DUPLICATION

No provision of this bill establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.

DIRECTED RULE MAKING

The bill does not direct any rule making.

COMPLIANCE WITH RULE XIII, CL. 3(E) (RAMSEYER RULE)

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

CONSOLIDATED AND FURTHER CONTINUING APPROPRIATIONS ACT, 2012

(Public Law 112-55)

* * * * * * *

DIVISION A--AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG
ADMINISTRATION, AND RELATED AGENCIES

* * * * * * *

TITLE VII

GENERAL PROVISIONS

(INCLUDING RESCISSIONS AND TRANSFERS OF FUNDS)

* * * * * * *

Sec. 732. (a) * * *
(b) Conveyance Authority.--With respect to an Agricultural
Research Service facility to be closed pursuant to subsection
(a), the Secretary of Agriculture may convey, with or without
consideration, all right, title, and interest of the United
States in and to any real property, including improvements and
equipment thereon, of the facility to an eligible entity
specified in subsection (c). If the Agricultural Research
Service facility consists of more than one parcel of real
property, the Secretary may convey each parcel separately and
to different eligible entities. The conveyance authority
provided by this subsection expires September 30, 2013, and all
conveyances under this subsection must be completed by that
date. The conveyance authority provided by this subsection
expires September 30, 2014, and all conveyances under this
subsection must be completed by that date.

* * * * * * *

----------

FOOD AND NUTRITION ACT OF 2008

* * * * * * *
ADMINISTRATIVE COST-SHARING AND QUALITY CONTROL

Sec. 16. (a) * * *

* * * * * * *

(h) Funding of Employment and Training Programs.--
(1) In general.--
(A) Amounts.--To carry out employment and
training programs, the Secretary shall reserve
for allocation to State agencies, to remain
available for 15 months, from funds made
available for each fiscal year under section
18(a)(1), $90,000,000 for each fiscal year,
except that for fiscal year 2013 and fiscal
year 2014, the amount shall be $79,000,000.
(B) Allocation.--Funds made available under
subparagraph (A) shall be made available to and
reallocated among State agencies under a
reasonable formula that--
(i) is determined and adjusted by the
Secretary; and
(ii) takes into account the number of
individuals who are not exempt from the
work requirement under section 6(o).
(C) Reallocation.--If a State agency will not
expend all of the funds allocated to the State
agency for a fiscal year under subparagraph
(B), the Secretary shall reallocate the
unexpended funds to other States (during the
fiscal year or the subsequent fiscal year) as
the Secretary considers appropriate and
equitable.
(D) Minimum allocation.--Notwithstanding
subparagraph (B), the Secretary shall ensure
that each State agency operating an employment
and training program shall receive not less
than $50,000 for each fiscal year.
(E) Additional allocations for states that
ensure availability of work opportunities.--
(i) In general.--In addition to the
allocations under subparagraph (A),
from funds made available under section
18(a)(1), the Secretary shall allocate
not more than $20,000,000 for each
fiscal year to reimburse a State agency
that is eligible under clause (ii) for
the costs incurred in serving members
of households receiving supplemental
nutrition assistance program benefits
who--
(I) are not eligible for an
exception under section
6(o)(3); and
(II) are placed in and comply
with a program described in
subparagraph (B) or (C) of
section 6(o)(2).
(ii) Eligibility.--To be eligible for
an additional allocation under clause
(i), a State agency shall make and
comply with a commitment to offer a
position in a program described in
subparagraph (B) or (C) of section
6(o)(2) to each applicant or recipient
who--
(I) is in the last month of
the 3-month period described in
section 6(o)(2);
(II) is not eligible for an
exception under section
6(o)(3);
(III) is not eligible for a
waiver under section 6(o)(4);
and
(IV) is not exempt under
section 6(o)(6).
(2) If, in carrying out such program during such fiscal year,
a State agency incurs costs that exceed the amount allocated to
the State agency under paragraph (1), the Secretary shall pay
such State agency an amount equal to 50 per centum of such
additional costs, subject to the first limitation in paragraph
(3), including the costs for case management and casework to
facilitate the transition from economic dependency to self-
sufficiency through work.
(3) The Secretary shall also reimburse each State agency in
an amount equal to 50 per centum of the total amount of
payments made or costs incurred by the State agency in
connection with transportation costs and other expenses
reasonably necessary and directly related to participation in
an employment and training program under section 6(d)(4),
except that the amount of the reimbursement for dependent care
expenses shall not exceed an amount equal to the payment made
under section 6(d)(4)(I)(i)(II) but not more than the
applicable local market rate, and such reimbursement shall not
be made out of funds allocated under paragraph (1).
(4) Funds provided to a State agency under this subsection
may be used only for operating an employment and training
program under section 6(d)(4), and may not be used for carrying
out other provisions of this Act.
(5) The Secretary shall monitor the employment and training
programs carried out by State agencies under section 6(d)(4) to
measure their effectiveness in terms of the increase in the
numbers of household members who obtain employment and the
numbers of such members who retain such employment as a result
of their participation in such employment and training
programs.

* * * * * * *

APPROPRIATIONS NOT AUTHORIZED BY LAW

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

(In thousands of dollars)
----------------------------------------------------------------------------------------------------------------
Appropriations in
Agency/Program Last year of Authorization last year of Appropriations
authorization level authorization in this bill
----------------------------------------------------------------------------------------------------------------
Farm Service Agency:
Dairy Indemnity Program................... 9/30/2013 Such sums Such sums Such sums
Food and Nutrition Service:
Supplemental Nutrition Assistance Program. 9/30/2013 Such sums 77,290,160 76,332,112
Commodity Supplemental Food Program....... 9/30/2013 Prior year 182,237 202,682
caseload
The Emergency Food Assistance Program..... 9/30/2013 100,000 48,160 45,592
Foreign Agricultural Service:
McGovern-Dole International Food for 9/30/2013 Such sums 183,816 180,320
Education Program........................
National Institute of Food and Agriculture:
Grants to upgrade facilities at 1890 9/30/2013 25,000 18,850 19,336
institutions.............................
Education Grants for Hispanic-serving 9/30/2013 40,000 8,087 9,219
institutions.............................
Extension Service......................... 9/30/2013 Such sums 463,896 459,011
Integrated research, education, and 9/30/2013 Such sums 20,942 31,137
extension grants.........................
1994 institution research grants.......... 9/30/2013 Such sums 1,756 1,801
Grants for insular areas.................. 9/30/2013 Such sums 1,609 1,800
Agriculture and Food Research Initiative.. 9/30/2013 700.000 290,468 290,657
Rural Business-Cooperative Service:
Value-added Agricultural Product Market 9/30/2013 40,000 14,623 15,000
Development Grants.......................
Appropriate Technology Transfer for Rural 9/30/2013 5,000 2,193 2,250
Areas....................................
Rural Energy for America Program.......... 9/30/2013 25,000 3,315 3,000
Rural Housing Service:
Tribal College and University essential 9/30/2013 10,000 3,284 3,284
community facilities.....................
Multi-family Housing Revitalization 9/30/2013 13,000 27,084 27,084
Program..................................
Rural Utilities Service:
Distance Learning and Telemedicine........ 9/30/2013 100,000 24,323 24,323
Broadband telecommunications services..... 9/30/2013 25,000 3,899 5,500
Broadband telecommunications grants....... 9/30/2013 10,372 10,372 10,111
----------------------------------------------------------------------------------------------------------------

RESCISSIONS

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the
House of Representatives, the following lists the rescissions
of unexpended balances included in the accompanying bill:
The bill proposes rescissions of $180,000,000 of funds
derived from interest on the cushion of credit payments under
the Rural Economic Development Loans Program Account;
$206,000,000 from Section 32 funds; $30,000,000 from
Agriculture Buildings and Facilities and Rental Payments;
$2,017,000 from the Natural Resources Conservation Service;
$1,314,000 from the Rural Housing Service; $41,000,000 from the
bioenergy program; $40,694,000 from the biorefinery program;
and $15,000,000 from the value-added grant program.

COMPARISON WITH THE BUDGET RESOLUTION

Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives and section 308(a)(1)(A) of the
Congressional Budget Act of 1974, the following table compares
the levels of new budget authority provided in the bill with
the appropriate allocation under section 302(b) of the Budget
Act:

(In millions of dollars)
----------------------------------------------------------------------------------------------------------------
302(b) Allocation This bill
-----------------------------------------------
Budget Budget
authority Outlays authority Outlays
----------------------------------------------------------------------------------------------------------------
Discretionary................................................... 19,450 22,451 19,450 \1\21,294
Mandatory....................................................... 42,981 30,298 42,981 \1\30,298
----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.

FIVE-YEAR OUTLAY PROJECTIONS

Pursuant to section 308(a)(1)(B) of the Congressional
Budget Act of 1974, the following table contains five-year
projections prepared by the Congressional Budget Office of
outlays associated with the budget authority provided in the
accompanying bill:
Projection of outlays associated with the recommendation:ons of dollars)
2014......................................................\1\117,128
2015...................................................... 4,029
2016...................................................... 755
2017...................................................... 16
2018 and future years..................................... -1,768
---------------------------------------------------------------------------
\1\Excludes outlays from prior-year budget authority.
---------------------------------------------------------------------------

ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

Pursuant to section 308(a)(1)(C) of the Congressional
Budget Act of 1974, the amounts of financial assistance to
State and local governments is as follows:
(In millions of dollars)
Budget Authority.............................................. 37,974
Outlays....................................................... \1\36,142
---------------------------------------------------------------------------
\1\Excludes outlays from prior-year budget authority.

MINORITY VIEWS OF THE HONORABLE NITA LOWEY AND THE HONORABLE SAM FARR

We are dismayed by the House Republican leadership's
refusal to go to conference to forge a bipartisan agreement on
the budget resolution that addresses sequestration and provides
workable 302(b) allocations for Appropriations bills. This
imperils this year's process, making it impossible to move all
12 bills. Sequestration was intended to be a mechanism to force
the parties to come together to address our long-term fiscal
challenges. It was never meant to be, in itself, a tool for
deficit reduction, and it was certainly never meant to be the
basis for the discretionary spending cap in a budget
resolution.
If the current 302(a) allocation stays in place, the House
will likely pass only a few bills with reasonable allocations,
while the remaining bills will be given inadequate funding and
may not go to the House floor. With the Ryan budget as the
basis for discretionary spending, there will undoubtedly be one
or more continuing resolutions needed to keep the government
open and running.
As a result of the Committee's inadequate overall
allocation, the Agriculture subcommittee received an
unacceptably low 302(b) allocation of $19.450 billion. This is
$520 million (2.6%) below the CBO estimate of the President's
request for the bill. However, the President's 2014 budget
moved the Food for Peace program to the State, Foreign
Operations bill. The 2014 Agriculture bill allocation, which
assumes Food for Peace is funded in this bill, is $1.3 billion
(6.2%) lower than the original 2013 conference agreement last
fall, which also included Food for Peace funding.
The impact of this allocation is evident in the inadequate
funding provided for many important accounts in the bill.
For example, we estimate that some 214,000 eligible
applicants would be denied participation in WIC at the funding
level in the bill. Compared to the President's request, we
estimate there would be 454,000 unserved, eligible applicants.
These estimates assume, as required in the bill, that no funds
are used for breastfeeding counselors or for helping states
convert from paper benefit vouchers to electronic benefit
cards, an important and needed management reform. The bill
could not even cover participation for all eligible individuals
with use of the entire contingency fund.
While the report suggests the President's budget estimates
of participation in the program ``have been inflated,'' it does
not explain why the majority believes the funding level in the
bill is sufficient to serve all eligible applicants. In fact,
the President's budget request for fiscal year 2012 was far
closer to the actual spending level for that year than the
funding bill enacted by Congress. In 2012, despite pleas from
House Democrats, Congress underfunded WIC so severely that USDA
had to transfer $400 million from SNAP to WIC on an emergency
basis.
Another critical program, Food for Peace, is also severely
under-funded. While there may be debate about the
administration's proposed reforms to the U.S. food aid program,
there is no doubt that failing to adequately fund it is a
tragic mistake. The bill cuts the program by $284 million
(19.8%) below 2013 and $275 million (19.3%) below the 2014
request. Based on the average cost per person served in 2012,
we believe more than 7.4 million people would not receive food
assistance from the United States as a result of the House
funding level.
Shockingly, the Republican majority also continues its
efforts to prevent the Commodity Futures Trading Commission
from doing its vital work to provide greater transparency and
competition in markets, more certainty for the farmers,
ranchers, and small businesses that use these markets, and
protection of taxpayers from having to pay for future bailouts.
This bill funds the agency at $194.555 million, which is $10.7
million (5.2%) below the 2013 base the Republican bills use and
$120 million (38%) below the 2014 request. The Republican
majority must drop the pretense that Dodd-Frank is going to be
repealed and provide the agency the resources it needs to write
and enforce the law.
We are troubled by language in the bill blocking a
regulation by the Farm Credit Administration that provides for
non-binding, advisory votes by shareholders on the compensation
of the presidents and senior executives of member banks.
In addition to these concerns, we note that several
troublesome riders were adopted in full committee.
We are concerned by the adoption of language requiring that
white potatoes be added to the list of eligible foods in the
WIC program. This rider was opposed by the American Academy of
Pediatrics, the American Public Health Association and the
March of Dimes, among others, because it violates the long-
standing tradition of not interfering in science-based
decisions about WIC foods. The current food package is based on
extensive study, including recommendations by the Institute of
Medicine. Political interference with that process will
undermine the program and threaten its proven record of
contributing to the health of mothers, infants and children.
The Committee adopted a rider that bars a state from
receiving any funds in the bill unless the state is in ``full
compliance'' with certain eligibility requirements of the SNAP
program. This amendment would have vast, negative consequences
on states, their economies and on participants in a wide
variety of USDA programs if it became law. While compliance
with eligibility is a goal we all share, the most recent data
shows the program already has an extremely low total error
rate--the lowest in its history--3.8%, and overpayment errors
are less than 3%.
In Texas, for example, the total error rate for SNAP was
below the national level, at 3.48%. Despite that commendable
record, a single error in eligibility under the law cited in
the amendment apparently would cause Texas to lose all the
funding it receives in this bill. Had this been law in 2012,
Texas would have lost, for example: $1,709,395,000 for 569
million lunches and 304 million breakfasts at more than 8100
schools and $561,000,000 that served an average of 970,000
women, infants and children a month in the WIC program.
We do not see why the bill should carry language related to
Dodd-Frank that should be considered in an authorization bill
and that, in fact, is in an authorization bill, H.R. 1256, that
passed the House just two days before the full Committee
considered this bill. This unnecessary provision will only
complicate consideration of the bill as it goes forward.
We also see no reason for carrying language that was
enacted in 2012 that blocks certain protections for small
livestock producers, since USDA promulgated a final rule in
2011 fully consistent with that rider. We believe if there are
any lingering concerns about this issue, they should be
addressed in the pending farm bill. We hope that this rider
will be dropped.
While we will do our best to address the many shortcomings
of this bill as the process moves forward, we do not support
the bill in its current form.

Nita M. Lowey.
Sam Farr.

Additional Views on International Food Aid of the Honorable Nita Lowey

The United States is a generous nation and since the 1950s
has fed billions of people around the world through the Food
for Peace program. When originally designed, it served two
goals--to help U.S. farmers by dealing with surplus commodities
in a way that would boost prices and to meet a humanitarian
imperative by feeding people in crisis.
However, nearly sixty years later, the world has changed
and the program needs to respond. The United States does not
have the surpluses it did decades ago and it is now forced to
purchase food on the commercial markets. Near record-high farm
prices have meant our food aid dollars do not go as far.
According to independent analyses, the number of direct
recipients of our food aid has dropped from 74 million in 2006
to an average of 30 million more recently.
The Green Revolution of the 1970s increased agricultural
production worldwide, breaking the cycle of famine in many
developing countries. Research has shown that famine and hunger
are not necessarily caused by the lack of food, but frequently
by lack of access to available food, often driven by conflict.
According to a 2009 report by GAO, this locally-available food
is a quarter to a third less expensive than in-kind food aid.
In addition to being cheaper, buying food locally often means
more culturally appropriate and nutritious options.
The current Food for Peace program also includes a
requirement that half of American food aid must be transported
on U.S.-flagged ships. Not only is this more costly, but in
emergencies where delay can have deadly consequences, various
studies have shown that it will take 70-100 days longer than
purchasing the food regionally. In many conflicts, importing
and transporting large quantities of commodity food is
dangerous, or even logistically impossible. Taken with the lack
of existing surpluses in the United States and the opportunity
in many cases to support developing country farmers in the
region, the current cargo transport requirement no longer makes
sense.
Given these factors, I welcomed the Administration's
proposal to reform the food aid program as part of the FY 2014
budget request. The country's current fiscal crisis demands
that all policymakers take a critical and judicious look at
each program the government funds to determine whether it is
efficient and effective in reaching its objective. With the
lack of agricultural surpluses in our country, the sole
remaining objective of our food aid programs should be to serve
the maximum number of people in need in the most cost effective
way possible.
Therefore, I am disappointed that the FY 2014 Agriculture
Appropriations bill not only rejects the Administration's
proposal for reform but does nothing to improve the
effectiveness of food aid programs in any way. This is despite
the clearly documented deficiencies of the current program. The
Administration's proposal would shift the food aid program to
the State, Foreign Operations bill into three separate
accounts: International Disaster Assistance, Development
Assistance, and a new Emergency Food Assistance Contingency
Fund. The proposal guarantees that more than half of the
emergency assistance would still be procured domestically and
that development programs would continue as a critical element
of U.S. response to global hunger and resilience. Monetization
would be replaced with direct funding for programs, cutting out
middlemen and reducing leakage. Emergency food aid would be
supplemented with more flexible tools such as vouchers and
purchases from local suppliers extending the reach of our
support. With the same amount of resources and these careful
reforms, the Administration estimates that their proposal could
feed 2 to 4 million additional people. The Center for Global
Development's recent analysis shows that the proposal could
help as many as 10 million additional people.
While these programs are funded through this bill, the
United States Agency for International Development (USAID) has
been implementing Food for Peace for many years. Both
transparency and oversight would be improved by consolidating
the funding and the implementing agency in one bill. For both
emergency and non-emergency programs, these programs can gain
efficiencies by seamless planning, implementation, and
evaluation with other USAID humanitarian and food security
programs.
The crisis in the Horn of Africa, the current devastation
of the communities in Syria, and the fragile nature of
chronically hungry places like the Sahel region of Africa call
us to be responsible stewards of resources, both for United
States taxpayers and the people around the world who depend on
our assistance. These reforms are proven--monetization programs
in the Democratic Republic of the Congo are only earning $0.51
for every dollar of commodities provided. I hope the many
stakeholders and congressional committees involved in these
programs can work together to ensure that United States food
aid programs remain an effective expression of U.S. generosity
to the world's most vulnerable people.

Nita M. Lowey.

Additional Views of the Honorable Sam Farr

Though the appropriation to the FDA overall is slightly
more than last year, it bears noting that FDA resources are
artificially constrained due to the sequestration of user fees.
Just as sequestration has artificially driven allocations to
the committee to new lows, it also has the unintended
consequence of denying the FDA access to user fees paid by
industry to the agency to help cover costs associated with
testing, review and approval of new drugs, medical devices and
health treatments. For example, more than 2700 generic drug
applications are backlogged and have little chance of moving
expeditiously through the approval process because of the
restriction on resources--in this case, $85 million paid in
FY13 that cannot be spent. Granted, the matter of sequestration
is larger than its single impact on the FDA, nonetheless the
impact is real and had sequestration not occurred the FDA would
have significantly more resources available to it--resources
paid directly by industry, not taxpayers--than can be
appropriated under this bill. We do a disservice to the public
if we do not try to address this matter.

Sam Farr.