Appendix - Department of Agriculture

[Appendix]
[Detailed Budget Estimates by Agency]
[Department of Agriculture]
[From the U.S. Government Printing Office, www.gpo.gov]

THE BUDGET FOR FISCAL YEAR 2006

[[Page 63]]

DEPARTMENT OF AGRICULTURE

OFFICE OF THE SECRETARY

Federal Funds

General and special funds:

Office of the Secretary

For necessary expenses of the Office of the Secretary of
Agriculture, [$5,124,000] $5,127,000: Provided, That not to exceed
$11,000 of this amount shall be available for official reception and
representation expenses, not otherwise provided for, as determined by
the Secretary.

Office of the Assistant Secretary for Administration

For necessary salaries and expenses of the Office of the Assistant
Secretary for Administration, [$669,000] $676,000.

Office of the Assistant Secretary for Congressional Relations

(including transfers of funds)

For necessary salaries and expenses of the Office of the Assistant
Secretary for Congressional Relations to carry out the programs funded
by this Act, including programs involving intergovernmental affairs and
liaison within the executive branch, [$3,852,000] $3,846,000: Provided,
That these funds may be transferred to agencies of the Department of
Agriculture funded by this Act to maintain personnel at the agency
level: [Provided further, That no funds made available by this
appropriation may be obligated after 30 days from the date of enactment
of this Act, unless the Secretary has notified the Committees on
Appropriations of both Houses of Congress on the allocation of these
funds by USDA agency:] Provided further, That no other funds
appropriated to the Department by this Act shall be available to the
Department for support of activities of congressional relations.

Office of the Under Secretary for Research, Education and Economics

For necessary salaries and expenses of the Office of the Under
Secretary for Research, Education and Economics to administer the laws
enacted by the Congress for the Economic Research Service, the National
Agricultural Statistics Service, the Agricultural Research Service, and
the Cooperative State Research, Education, and Extension Service,
[$592,000] $598,000.

Office of the Under Secretary for Marketing and Regulatory Programs

For necessary salaries and expenses of the Office of the Under
Secretary for Marketing and Regulatory Programs to administer programs
under the laws enacted by the Congress for the Animal and Plant Health
Inspection Service; the Agricultural Marketing Service; and the Grain
Inspection, Packers and Stockyards Administration; [$721,000] $724,000.

Office of the Under Secretary for Food Safety

For necessary salaries and expenses of the Office of the Under
Secretary for Food Safety to administer the laws enacted by the Congress
for the Food Safety and Inspection Service, [$595,000] $602,000.

Office of the Under Secretary for Farm and Foreign Agricultural Services

For necessary salaries and expenses of the Office of the Under
Secretary for Farm and Foreign Agricultural Services to administer the
laws enacted by Congress for the Farm Service Agency, the Foreign
Agricultural Service, the Risk Management Agency, and the Commodity
Credit Corporation, [$631,000] $635,000.

Office of the Under Secretary for Natural Resources and Environment

For necessary salaries and expenses of the Office of the Under
Secretary for Natural Resources and Environment to administer the laws
enacted by the Congress for the Forest Service and the Natural Resources
Conservation Service, [$741,000] $744,000.

Office of the Under Secretary for Rural Development

For necessary salaries and expenses of the Office of the Under
Secretary for Rural Development to administer programs under the laws
enacted by the Congress for the Rural Housing Service, the Rural
Business-Cooperative Service, and the Rural Utilities Service of the
Department of Agriculture, [$632,000] $635,000.

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

For necessary salaries and expenses of the Office of the Under
Secretary for Food, Nutrition and Consumer Services to administer the
laws enacted by the Congress for the Food and Nutrition Service,
[$595,000] $599,000.

Office of the Assistant Secretary for Civil Rights

For necessary salaries and expenses of the Office of the Assistant
Secretary for Civil Rights, [$818,000] $821,000. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Office of the Secretary........... 3 4 4
00.02 Under/Assistant Secretaries....... 8 9 9
00.03 Trade Negotiations and
Biotechnology Resources......... 2 2
00.04 Info Share (CCE/HS)............... 10
09.01 Homeland Security Reimbursable.... 13
--------- --------- ----------
10.00 Total new obligations........... 34 15 15
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 10 3 3
22.00 New budget authority (gross)...... 26 15 15
22.10 Resources available from
recoveries of prior year
obligations..................... 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 39 18 18
23.95 Total new obligations............. -34 -15 -15
23.98 Unobligated balance expiring or
withdrawn....................... -2
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 3 3 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 15 15 15
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 14
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... -3
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 11
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 26 15 15
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 29 14 14
73.10 Total new obligations............. 34 15 15
73.20 Total outlays (gross)............. -49 -15 -15
73.45 Recoveries of prior year
obligations..................... -3
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 3
--------- --------- ----------
74.40 Obligated balance, end of year.. 14 14 14
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 23 12 12
86.93 Outlays from discretionary
balances........................ 26 3 3
--------- --------- ----------
87.00 Total outlays (gross)........... 49 15 15
----------------------------------------------------------------------------

[[Page 64]]

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -14
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 15 15 15
90.00 Outlays........................... 35 15 15
---------------------------------------------------------------------------

The Office of the Secretary covers the overall planning,
coordination and administration of the Department's programs. This
includes the Secretary, Deputy Secretary, Under Secretaries, Assistant
Secretaries, and their immediate staffs, who provide top policy guidance
for the Department; maintain relationships with agricultural
organizations and others in the development of farm programs; and
provide liaison with the Executive Office of the President and Members
of Congress on all matters pertaining to agricultural policy.

Funds are also proposed for the Office of the Secretary's account
for negotiating and monitoring trade agreements; and for technical trade
support in the areas of biotechnology, sanitary and phyto-sanitary
issues.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 9 9 9
12.1 Civilian personnel benefits..... 2 2 2
25.2 Other services.................. 10 4 4
--------- --------- ----------
99.0 Direct obligations............ 21 15 15
99.0 Reimbursable obligations.......... 13
--------- --------- ----------
99.9 Total new obligations........... 34 15 15
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9913-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 79 87 87
---------------------------------------------------------------------------

Fund for Rural America

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0012-0-1-999 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 14 7
73.20 Total outlays (gross)............. -7 -7
--------- --------- ----------
74.40 Obligated balance, end of year.. 7
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 7 7
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 7 7
---------------------------------------------------------------------------

The Federal Agriculture Improvement and Reform Act of 1996 (1996
Act) initially established the Fund for Rural America to provide support
to rural communities across the United States. The 2002 Farm Bill (Farm
Security and Rural Investment Act of 2002) repealed the Fund for Rural
America.

Trust Funds

Gifts and Bequests

Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8203-0-7-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Receipts:
02.00 Gifts and bequests, Departmental
Administration.................. 1 1 1
Appropriations:
05.00 Gifts and bequests................ -1 -1 -1
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Program Activity........... 1 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 99.5)................... 1 1 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 3 3
22.00 New budget authority (gross)...... 1 1 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3 4 4
23.95 Total new obligations............. -1 -1 -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 3 3 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.26 Appropriation (trust fund)...... 1 1 1
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 1 1 1
73.20 Total outlays (gross)............. -1 -1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1 1 1
90.00 Outlays........................... 1 1 1
---------------------------------------------------------------------------

The Secretary is authorized to accept and administer gifts and
bequests of real and personal property to facilitate the work of the
Department. Property and the proceeds thereof are used in accordance
with the terms of the gift or bequest (7 U.S.C. 2269).

EXECUTIVE OPERATIONS

Federal Funds

General and special funds:

Executive Operations

chief economist

For necessary expenses of the Chief Economist, including economic
analysis, risk assessment, cost-benefit analysis, energy and new uses,
and the functions of the World Agricultural Outlook Board, as authorized
by the Agricultural Marketing Act of 1946 (7 U.S.C. 1622g),
[$10,317,000] $10,539,000.

National Appeals Division

For necessary expenses of the National Appeals Division,
[$14,331,000] $14,524,000.

Office of Budget and Program Analysis

For necessary expenses of the Office of Budget and Program Analysis,
[$8,228,000] $8,298,000.

Homeland Security Staff

For necessary expenses of the Homeland Security Staff, [$775,000]
$1,466,000. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

[[Page 65]]

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Chief Economist................... 11 10 11
00.03 National Appeals Division......... 14 14 14
00.04 Budget and Program Analysis....... 7 8 8
00.05 Homeland Security Staff........... 1 1 1
09.01 Reimbursable program.............. 2 1 1
--------- --------- ----------
10.00 Total new obligations........... 34 34 35
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2
22.00 New budget authority (gross)...... 35 36 38
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 35 36 40
23.95 Total new obligations............. -34 -34 -35
23.98 Unobligated balance expiring or
withdrawn....................... -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 2 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 31 33 35
Mandatory:

62.00 Transferred from other accounts. 2 2 2
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 1 1
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 2
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 2 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 35 36 38
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 7 8 6
73.10 Total new obligations............. 34 34 35
73.20 Total outlays (gross)............. -33 -36 -38
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -2
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 1
--------- --------- ----------
74.40 Obligated balance, end of year.. 8 6 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 32 30 32
86.93 Outlays from discretionary
balances........................ 1 4 4
86.97 Outlays from new mandatory
authority....................... 2 2
--------- --------- ----------
87.00 Total outlays (gross)........... 33 36 38
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -1 -1 -1
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -2
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 33 35 37
90.00 Outlays........................... 31 35 37
---------------------------------------------------------------------------

Executive Operations provides support for USDA policy officials and
selected Department-wide services.

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

WORKLOAD INDICATORS

2004 actual 2005 est. 2006 est.
World Agricultural Supply and Demand
Estimates Reports issued............ 12 12 12
Weekly Weather and Crop Bulletin
issued.............................. 52 52 52

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

The Office of Budget and Program Analysis provides overall direction
and administration of the Department's budgetary functions including:
development, presentation, and execution of the budget; review of
program and legislative proposals for programs and budget implications;
and analysis of program issues and alternatives and preparation of
summaries of pertinent data to aid Departmental policy officials and
agency program managers in the decisionmaking process.

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

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 20 21 21
12.1 Civilian personnel benefits..... 4 4 4
21.0 Travel and transportation of
persons....................... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 5 4 5
31.0 Equipment....................... 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 33 33 34
99.0 Reimbursable obligations.......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 34 34 35
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0705-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 228 270 271
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 4 4 4
---------------------------------------------------------------------------

Office of the Chief Financial Officer

For necessary expenses of the Office of the Chief Financial Officer,
[$5,742,000] $5,874,000: Provided, That the Chief Financial Officer
shall actively market and expand cross-servicing activities of the
National Finance Center[: Provided further, That no funds made available
by this appropriation may be obligated for FAIR Act or Circular A-76
activities until the Secretary has submitted to the Committees on
Appropriations of both Houses of Congress and the Committee on
Government Reform of the House of Representatives a report on the
Department's contracting out policies, including agency budgets for
contracting out]. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 6 6 6

[[Page 66]]

09.01 Reimbursable program.............. 5 5 5
--------- --------- ----------
10.00 Total new obligations........... 11 11 11
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 11 11 11
23.95 Total new obligations............. -11 -11 -11
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 6 6 6
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 5 5
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 5
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 5 5 5
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 11 11 11
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -6 -6 -6
73.10 Total new obligations............. 11 11 11
73.20 Total outlays (gross)............. -11 -11 -11
73.40 Adjustments in expired accounts
(net)........................... -1
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -5
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 6
--------- --------- ----------
74.40 Obligated balance, end of year.. -6 -6 -6
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 11 11 11
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -7 -5 -5
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -5
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 7
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 6 6 6
90.00 Outlays........................... 4 6 6
---------------------------------------------------------------------------

The Office of the Chief Financial Officer (OCFO) supports the Chief
Financial Officer in carrying out the dual roles of chief financial
management policy officer and chief financial management advisor to the
Secretary and mission area heads. OCFO provides leadership for all
financial management, accounting, travel, Federal assistance, and
performance measurement activities within the Department. It is
responsible for the management and operation of the National Finance
Center and the Departmental Working Capital Fund, and provides budget,
accounting, and fiscal services to the Office of the Secretary,
Departmental Staff Offices, Office of Communications, Office of the
Chief Information Officer and Executive Operations.

PERFORMANCE MEASURES

2004 actual 2005 est. 2006 est.
Achieve an unqualified opinion on
the USDA financial statements....... Unqualified Unqualified Unqualified
Anti-deficiency violations.......... No No No

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 3 4 4
12.1 Civilian personnel benefits..... 1 1 1
25.2 Other services.................. 1
--------- --------- ----------
99.0 Direct obligations............ 5 5 5
99.0 Reimbursable obligations.......... 5 5 5
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 11 11 11
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0014-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 33 48 48
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 15 15 15
---------------------------------------------------------------------------

Office of the Chief Information Officer

For necessary expenses of the Office of the Chief Information
Officer, [$16,595,000] $16,726,000. (Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Office of the Chief Information
Officer......................... 15 16 17
09.01 Reimbursable program.............. 41 39 38
--------- --------- ----------
10.00 Total new obligations........... 56 55 55
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 56 55 55
23.95 Total new obligations............. -56 -55 -55
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 15 16 17
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 12 39 38
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 29
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 41 39 38
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 56 55 55
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -3 -7 -7
73.10 Total new obligations............. 56 55 55
73.20 Total outlays (gross)............. -47 -55 -55
73.40 Adjustments in expired accounts
(net)........................... 1
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -29
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 15
--------- --------- ----------
74.40 Obligated balance, end of year.. -7 -7 -7
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 27 55 55
86.93 Outlays from discretionary
balances........................ 20
--------- --------- ----------
87.00 Total outlays (gross)........... 47 55 55
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -25 -39 -38
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -29
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 13
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 15 16 17

[[Page 67]]

90.00 Outlays........................... 22 16 17
---------------------------------------------------------------------------

The Clinger-Cohen Act of 1996 required the establishment of a Chief
Information Officer (CIO) for all major Federal agencies. The Act
requires USDA to maximize the value of information technology
acquisitions to improve the efficiency and effectiveness of USDA
programs. To meet the intent of the law and to provide a Departmental
focus for information resources management issues, Secretary's
Memorandum 1030-30, dated August 8, 1996, established the Office of the
Chief Information Officer (OCIO).

The CIO serves as the primary advisor to the Secretary and Mission
Area Heads in these areas. OCIO provides leadership for the Department's
information and information technology (IT) management activities in
support of USDA's program delivery.

OCIO is leading USDA's E-Government efforts, in coordination with
the Presidential E-Government Initiatives, to transform the Department's
delivery of information, programs, and services using E-Government
channels. OCIO is designing the Department's Enterprise Architecture to
efficiently support USDA's move towards E-Government by leveraging
economies-of-scale to acquire and share data and supporting IT
applications and infrastructure. OCIO is strengthening USDA's Computer
Security Program to mitigate threats to USDA's information and IT assets
and support the Department's Homeland Security efforts. OCIO continues
to facilitate the USDA IT Capital Planning and Control investment review
process by providing guidance and support to the Department's Executive
IT Investment Review Board, which approves all major technology
investments to ensure they economically and effectively support program
delivery.

Funded through the USDA Working Capital Fund, OCIO provides
automated data processing (ADP) and wide-area telecommunications
services to all USDA agencies through the National Information
Technology Center and the Telecommunications Services and Operations
organization, with locations in Ft. Collins, Colorado, Kansas City,
Missouri, and Washington, D.C.

OCIO also has direct management and service responsibility for the
IT component of the Service Center Agencies' computing and
telecommunications infrastructure. This includes the implementation of a
common technology infrastructure to replace the outdated and stove-piped
systems supporting the Farm Service Agency, the Natural Resources
Conservation Service, and Rural Development.

PERFORMANCE MEASURES

FY 2004 FY 2005 FY 2006
Percent of all paper transactions
identified as practicable for
conversion to electronic access that
will be completed by milestones..... 65% 85% 100%
Percent of USDA IT Systems that are
certified, accredited, or otherwise
authorized as being properly secured 20% 100% 100%
Percentage of USDA IT projects that
are within costs/schedule/
performance......................... Est.
Baseline 100% 100%

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 7 7 7
12.1 Civilian personnel benefits..... 1 1 1
25.2 Other services.................. 3 4 4
25.3 Other purchases of goods and
services from Government
accounts...................... 3 3 3
26.0 Supplies and materials.......... 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 15 16 16
99.0 Reimbursable obligations.......... 40 39 38
99.5 Below reporting threshold......... 1 1
--------- --------- ----------
99.9 Total new obligations........... 56 55 55
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0013-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 66 72 72
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 17 11 11
---------------------------------------------------------------------------

Common Computing Environment

For necessary expenses to acquire a Common Computing Environment for
the Natural Resources Conservation Service, the Farm and Foreign
Agricultural Service, and Rural Development mission areas for
information technology, systems, and services, [$125,585,000]
$142,465,000, to remain available until expended, for the capital asset
acquisition of shared information technology systems, including services
as authorized by 7 U.S.C. 6915-16 and 40 U.S.C. 1421-28: Provided, That
obligation of these funds shall be consistent with the Department of
Agriculture Service Center Modernization Plan of the county-based
agencies, and shall be with the concurrence of the Department's Chief
Information Officer. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0113-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct Program Activity........... 144 125 142
09.01 Reimbursable program.............. 69 31 15
--------- --------- ----------
10.00 Total new obligations........... 213 156 157
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 37 13 13
22.00 New budget authority (gross)...... 189 156 157
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 226 169 170
23.95 Total new obligations............. -213 -156 -157
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 13 13 13
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 119 126 142
40.35 Appropriation permanently
reduced....................... -1 -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 118 125 142
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 58 31 15
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 13
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 71 31 15
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 189 156 157
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 62 68 68
73.10 Total new obligations............. 213 156 157
73.20 Total outlays (gross)............. -194 -156 -157
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -13
--------- --------- ----------
74.40 Obligated balance, end of year.. 68 68 68
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 144 156 157
86.93 Outlays from discretionary
balances........................ 50
--------- --------- ----------
87.00 Total outlays (gross)........... 194 156 157
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -58 -31 -15
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -13
----------------------------------------------------------------------------

[[Page 68]]

Net budget authority and outlays:
89.00 Budget authority.................. 118 125 142
90.00 Outlays........................... 136 125 142
---------------------------------------------------------------------------

The Department of Agriculture Reorganization Act of 1994 requires
the Secretary of Agriculture to procure and use computer systems in a
manner that enhances efficiency, productivity, and client services, and
that promotes computer information sharing among agencies of the
Department. The USDA Service Center Modernization Initiative (SCMI) has
been working to restructure county field offices, modernize and
integrate business approaches and replace the current stove-piped and
aging information systems with a modern common computing environment
(CCE) that optimizes information sharing, customer service, and staff
efficiencies. The funds requested under this account would fund
essential capital investments needed to implement the modernization
plan. Economies of scale in the procurement and management of
information technology systems present compelling arguments for
coordinating information technology investments. Without these
investments, the Department's ability to provide timely and efficient
services will continue to erode and the costs of maintaining the
separate, aging systems will increase. A reorganization that combines
the information technology (IT) staffs of the SCA into one IT
organization with OCIO went into effect on November 28, 2004. The new
organization, the Information Technology Services (ITS), replaces a
network of cross-agency teams used to co-ordinate IT infrastructure
investment within the SCA and allows for unified management of the IT
infrastructure. The ITS delivers the following classes of technology
services: Acquisition and Asset Management, Application Development and
Deployment, Customer Support and End User Computing, Data Utility,
Hosting, Security, Telecommunications and Web Services. Service Level
Agreements (SLAs) that specify performance metrics will be negotiated
with the SCA for each class of service.

Object Classification (in millions of dollars)

Direct obligations:

25.2 Other services.................. 85 17 34
25.3 Other purchases of goods and
services from Government
accounts...................... 49 41 41
26.0 Supplies and materials.......... 3 20 20
31.0 Equipment....................... 7 47 47
--------- --------- ----------
99.0 Direct obligations............ 144 125 142
99.0 Reimbursable obligations.......... 68 31 15
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 213 156 157
---------------------------------------------------------------------------

Intragovernmental funds:

Working Capital Fund

[For the acquisition of disaster recovery and continuity of
operations technology of the National Finance Center's data,
$12,850,000, to remain available until expended.] (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Operating expenses:

09.01 Administration.................. 37 26 27
09.02 Communications.................. 12 5 5
09.03 Finance and management.......... 192 175 200
09.04 Information technology.......... 88 258 272
09.05 Executive secretariat........... 3 3 3
09.06 Corporate systems............... 66 74 76
--------- --------- ----------
09.09 Subtotal, operating expenses.... 398 541 583
09.12 Finance and management............ 3 19 4
09.13 Information technology............ 9 11 7
09.15 Corporate systems................. 14 21 12
--------- --------- ----------
09.19 Subtotal, purchase of equipment. 26 51 23
--------- --------- ----------
10.00 Total new obligations........... 424 592 606
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 82 107 69
22.00 New budget authority (gross)...... 446 554 583
22.10 Resources available from
recoveries of prior year
obligations..................... 1
22.22 Unobligated balance transferred
from other accounts............. 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 530 661 652
23.95 Total new obligations............. -424 -592 -606
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 107 69 46
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 13
42.00 Transferred from other accounts. 8
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 8 13
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 383 541 583
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 55
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 438 541 583
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 446 554 583
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 4 2 57
73.10 Total new obligations............. 424 592 606
73.20 Total outlays (gross)............. -368 -537 -577
73.45 Recoveries of prior year
obligations..................... -1
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -55
--------- --------- ----------
74.40 Obligated balance, end of year.. 2 57 86
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 324 481 504
86.93 Outlays from discretionary
balances........................ 44 56 73
--------- --------- ----------
87.00 Total outlays (gross)........... 368 537 577
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -379 -537 -579
88.40 Non-Federal sources........... -4 -4 -4
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -383 -541 -583
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -55
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 8 13
90.00 Outlays........................... -14 -4 -6
---------------------------------------------------------------------------

This fund finances by advances or reimbursements certain central
services in the Department of Agriculture, including duplicating and
other visual information services, art and graphics, video services,
supply, centralized accounting sys

[[Page 69]]

tems, centralized automated data processing systems for payroll,
personnel, and related services, voucher payments services, and ADP
systems. The National Finance Center's expenses are also funded through
this fund. The capital consists of $400 thousand appropriated (7 U.S.C.
2235), and subsequent appropriations of $32 million as of September 30,
2004. Earnings are kept at a low level through adjustments in rates
charged for services to maintain as nearly as possible the nonprofit
nature of the fund.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 123 153 172
11.3 Other than full-time permanent.. 2 2 2
11.5 Other personnel compensation.... 4 4 4
--------- --------- ----------
11.9 Total personnel compensation.. 129 159 178
12.1 Civilian personnel benefits....... 30 40 47
21.0 Travel and transportation of
persons......................... 2 4 4
22.0 Transportation of things.......... 1 1 1
23.1 Rental payments to GSA............ 6 6 5
23.2 Rental payments to others......... 2 2 2
23.3 Communications, utilities, and
miscellaneous charges........... 36 81 69
24.0 Printing and reproduction......... 1 1 1
25.2 Other services.................... 172 233 257
26.0 Supplies and materials............ 9 9 12
31.0 Equipment......................... 36 56 30
--------- --------- ----------
99.9 Total new obligations........... 424 592 606
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-4609-0-4-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 1,990 2,956 2,980
---------------------------------------------------------------------------

OFFICE OF CIVIL RIGHTS

Federal Funds

General and special funds:

Office of Civil Rights

(including transfers of funds)

For necessary expenses of the Office of Civil Rights, [$19,889,000]
$20,109,000. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Office of Civil Rights............ 17 20 20
09.01 Reimbursable program.............. 4 5 5
--------- --------- ----------
10.00 Total new obligations........... 21 25 25
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 24 25 25
23.95 Total new obligations............. -21 -25 -25
23.98 Unobligated balance expiring or
withdrawn....................... -3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 17 20 20
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 1 5 5
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 6
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 7 5 5
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 24 25 25
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -3 -3
73.10 Total new obligations............. 21 25 25
73.20 Total outlays (gross)............. -18 -25 -25
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -6
--------- --------- ----------
74.40 Obligated balance, end of year.. -3 -3 -3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 18 25 25
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -1 -5 -5
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -6
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 17 20 20
90.00 Outlays........................... 17 20 20
---------------------------------------------------------------------------

The Office of Civil Rights (CR) provides overall leadership
responsibility for all Department-wide civil rights activities including
employment opportunity and program non-discrimination policy
development, analysis, coordination, and compliance. CR is responsible
for providing leadership in the implementation of best practices that
will create an environment where diversity is valued as a source of
strength. CR has the responsibility for monitoring program activities to
ensure that all USDA programs are delivered in a non-discriminatory
manner.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 10 14 15
12.1 Civilian personnel benefits..... 3 3 3
23.3 Communications, utilities, and
miscellaneous charges......... 1
25.2 Other services.................. 1 1 1
25.3 Other purchases of goods and
services from Government
accounts...................... 1 1
--------- --------- ----------
99.0 Direct obligations............ 16 18 20
99.0 Reimbursable obligations.......... 4 5 5
99.5 Below reporting threshold......... 1 2
--------- --------- ----------
99.9 Total new obligations........... 21 25 25
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3800-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 140 181 181
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 8 10 10
---------------------------------------------------------------------------

DEPARTMENTAL ADMINISTRATION

Federal Funds

General and special funds:

Departmental Administration

(including transfers of funds)

For Departmental Administration, [$22,626,000] $23,103,000, to
provide for necessary expenses for management support services to
offices of the Department and for general administration, security,
repairs and alterations, and other miscellaneous supplies and expenses
not otherwise provided for and necessary for the practical and efficient
work of the Department: Provided, That this appropriation shall be
reimbursed from applicable appropriations in this Act for travel
expenses incident to the holding of hearings as required

[[Page 70]]

by 5 U.S.C. 551-558. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.08 Direct program.................... 23 22 23
09.01 Reimbursable program.............. 14 22 17
--------- --------- ----------
10.00 Total new obligations........... 37 44 40
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 37 44 40
23.95 Total new obligations............. -37 -44 -40
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 23 22 23
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 3 22 17
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 11
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 14 22 17
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 37 44 40
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -5 -13 -11
73.10 Total new obligations............. 37 44 40
73.20 Total outlays (gross)............. -40 -42 -40
73.40 Adjustments in expired accounts
(net)........................... -1
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -11
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 7
--------- --------- ----------
74.40 Obligated balance, end of year.. -13 -11 -11
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 32 42 38
86.93 Outlays from discretionary
balances........................ 8 2
--------- --------- ----------
87.00 Total outlays (gross)........... 40 42 40
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -9 -22 -17
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -11
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 6
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 23 22 23
90.00 Outlays........................... 31 20 23
---------------------------------------------------------------------------

Departmental Administration is comprised of activities that provide
staff support to top policy officials and overall direction and
coordination of the Department. These activities include Department-wide
programs for human resource management, ethics, occupational safety and
health management, real and personal property management, procurement,
contracting, motor vehicle and aircraft management, supply management,
participation of small and disadvantaged businesses, emergency
preparedness, and the regulatory hearing and administrative proceedings
conducted by the Administrative Law Judges, Judicial Officer, and Board
of Contract Appeals.

Departmental Administration is also responsible for representing
USDA in the development of Government-wide policies and initiatives;
analyzing the impact of Government-wide trends and developing
appropriate USDA principles, policies, and standards. In addition,
Departmental Administration engages in strategic planning and evaluating
programs to ensure USDA-wide compliance with applicable laws, rules, and
regulations pertaining to administrative matters for the Secretary and
general officers of the Department.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 14 16 17
12.1 Civilian personnel benefits..... 3 3 4
23.3 Communications, utilities, and
miscellaneous charges......... 1
25.2 Other services.................. 1 1 1
25.3 Other purchases of goods and
services from Government
accounts...................... 2 1 1
26.0 Supplies and materials.......... 1
--------- --------- ----------
99.0 Direct obligations............ 22 21 23
99.0 Reimbursable obligations.......... 14 21 16
99.5 Below reporting threshold......... 1 2 1
--------- --------- ----------
99.9 Total new obligations........... 37 44 40
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0120-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 186 225 225
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 51 67 67
---------------------------------------------------------------------------

Hazardous Materials Management

(including transfers of funds)

For necessary expenses of the Department of Agriculture, to comply
with the Comprehensive Environmental Response, Compensation, and
Liability Act (42 U.S.C. 9601 et seq.) and the Resource Conservation and
Recovery Act (42 U.S.C. 6901 et seq.), [$15,532,000] $15,644,000, to
remain available until expended: Provided, That appropriations and funds
available herein to the Department for Hazardous Materials Management
may be transferred to any agency of the Department for its use in
meeting all requirements pursuant to the above Acts on Federal and non-
Federal lands. (42 U.S.C. 6961, et seq., 42 U.S.C. 9601, et seq.;
Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 17 15 16
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 17 15 16
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3 2 2
22.00 New budget authority (gross)...... 16 15 16
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 19 17 18
23.95 Total new obligations............. -17 -15 -16
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 2 2 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 16 15 16
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 15 18 17
73.10 Total new obligations............. 17 15 16
73.20 Total outlays (gross)............. -15 -16 -18
--------- --------- ----------
74.40 Obligated balance, end of year.. 18 17 15
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 14 14 14

[[Page 71]]

86.93 Outlays from discretionary
balances........................ 1 2 4
--------- --------- ----------
87.00 Total outlays (gross)........... 15 16 18
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 16 15 16
90.00 Outlays........................... 15 16 18
---------------------------------------------------------------------------

Under the Comprehensive Environmental Response, Compensation, and
Liability Act (CERCLA) and the Resource Conservation and Recovery Act
(RCRA), the Department has the responsibility to meet the same standards
for environmental cleanup and regulatory compliance regarding hazardous
wastes and hazardous substances as private businesses. With substantial
commitments under these Acts, a central fund has been established so
that resources may be allocated to the Department's agencies.
Allocations are made according to objective criteria.

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0500-0-1-304 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 7 7 7
---------------------------------------------------------------------------

Agriculture Buildings and Facilities and Rental Payments

(including transfers of funds)

For payment of space rental and related costs pursuant to Public Law
92-313, including authorities pursuant to the 1984 delegation of
authority from the Administrator of General Services to the Department
of Agriculture under 40 U.S.C. 486, for programs and activities of the
Department which are included in this Act, and for alterations and other
actions needed for the Department and its agencies to consolidate
unneeded space into configurations suitable for release to the
Administrator of General Services, and for the operation, maintenance,
improvement, and repair of Agriculture buildings and facilities, and for
related costs, [$163,870,000] to remain available until expended, as
follows: for payments to the General Services Administration and the
Department of Homeland Security for building security, $147,734,000, and
for buildings operations and maintenance, $74,190,000: Provided, That
[not to exceed 5 percent of] amounts which are made available for space
rental and related costs for the Department of Agriculture in this Act
may be transferred between such appropriations to cover the costs of
additional, new, or replacement space 15 days after notice thereof is
transmitted to the Appropriations Committees of both Houses of Congress.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Rental payments to GSA: Non-
recurring repairs............... 128 128 148
00.02 Building operations and
maintenance..................... 35 36 71
00.04 Strategic space plan.............. 13 3
09.02 Reimbursable program.............. 2 3 3
--------- --------- ----------
10.00 Total new obligations........... 178 167 225
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 44 25 26
22.00 New budget authority (gross)...... 157 166 225
22.10 Resources available from
recoveries of prior year
obligations..................... 1 2 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 202 193 253
23.95 Total new obligations............. -178 -167 -225
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 25 26 28
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 156 164 222
40.35 Appropriation permanently
reduced....................... -1 -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 155 163 222
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 2 3 3
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 157 166 225
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 24 19 18
73.10 Total new obligations............. 178 167 225
73.20 Total outlays (gross)............. -181 -166 -227
73.45 Recoveries of prior year
obligations..................... -1 -2 -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 19 18 14
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 157 164 223
86.93 Outlays from discretionary
balances........................ 24 2 4
--------- --------- ----------
87.00 Total outlays (gross)........... 181 166 227
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -2 -3 -3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 155 163 222
90.00 Outlays........................... 179 163 224
---------------------------------------------------------------------------

This account finances the General Services Administration's fees for
rental of space and related services. The appropriation covers all fees
for all regular appropriated accounts within the Department of
Agriculture with the exception of the Forest Service. This account also
finances the operation and maintenance of four buildings in the
Headquarters area.

Beginning in 1995, the account included funds for USDA's strategic
space plan. Since then, funds were made available for the construction
and occupancy of an office facility at the Beltsville Agricultural
Research Center and the design and implementation of a long-term program
to renovate and modernize the South Building.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 7 8 8
12.1 Civilian personnel benefits..... 1 1 1
23.1 Rental payments to GSA.......... 128 128 148
23.3 Communications, utilities, and
miscellaneous charges......... 6 6 6
25.2 Other services.................. 34 21 59
--------- --------- ----------
99.0 Direct obligations............ 176 164 222
99.0 Reimbursable obligations.......... 2 3 3
--------- --------- ----------
99.9 Total new obligations........... 178 167 225
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0117-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 86 95 95
---------------------------------------------------------------------------

OFFICE OF COMMUNICATIONS

Federal Funds

General and special funds:

Office of Communications

For necessary expenses to carry out services relating to the
coordination of programs involving public affairs, for the dissemination
of agricultural information, and the coordination of information, work,
and programs authorized by Congress in the Department, [$9,365,000]
$9,509,000: Provided, That not to exceed $2,000,000 may be used for
farmers' bulletins. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

[[Page 72]]

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Public affairs.................... 9 10 10
09.01 Reimbursable program.............. 1 1
--------- --------- ----------
10.00 Total new obligations........... 9 11 11
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 9 10 11
23.95 Total new obligations............. -9 -11 -11
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 9 9 10
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 9 10 11
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2
73.10 Total new obligations............. 9 11 11
73.20 Total outlays (gross)............. -9 -10 -11
73.40 Adjustments in expired accounts
(net)........................... 1 1
--------- --------- ----------
74.40 Obligated balance, end of year.. 2 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 9 9 10
86.93 Outlays from discretionary
balances........................ 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 9 10 11
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -1 -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 9 9 10
90.00 Outlays........................... 8 9 10
---------------------------------------------------------------------------

Public affairs--This office provides general direction, leadership,
and coordination of the Department's information program. The major
objective is to provide a balanced and useful information program that
reports on USDA's research, administrative action, and regulatory
activities using all communications media in order to enable the general
public and the agricultural industry to have a better understanding of
agriculture's services to farmers and to society.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 6 7 7
12.1 Civilian personnel benefits..... 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 7 8 8
99.0 Reimbursable obligations.......... 1 1 1
99.5 Below reporting threshold......... 1 2 2
--------- --------- ----------
99.9 Total new obligations........... 9 11 11
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0150-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 74 90 90
---------------------------------------------------------------------------

OFFICE OF THE INSPECTOR GENERAL

Federal Funds

General and special funds:

Office of the Inspector General

For necessary expenses of the Office of the Inspector General,
including employment pursuant to the Inspector General Act of 1978,
[$78,289,000] $81,045,000, including such sums as may be necessary for
contracting and other arrangements with public agencies and private
persons pursuant to section 6(a)(9) of the Inspector General Act of
1978, and including not to exceed $125,000 for certain confidential
operational expenses, including the payment of informants, to be
expended under the direction of the Inspector General pursuant to Public
Law 95-452 and section 1337 of Public Law 97-98. (7 U.S.C. 450b, 2201,
2202, 2220, 2270; Public Law 100-504; Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 77 78 81
09.01 Reimbursable program.............. 3 3 3
--------- --------- ----------
10.00 Total new obligations........... 80 81 84
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3 4 5
22.00 New budget authority (gross)...... 81 82 85
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 84 86 90
23.95 Total new obligations............. -80 -81 -84
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 4 5 6
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 77 78 81
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 4 4 4
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 81 82 85
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 4 3
73.10 Total new obligations............. 80 81 84
73.20 Total outlays (gross)............. -76 -82 -85
--------- --------- ----------
74.40 Obligated balance, end of year.. 4 3 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 73 75 78
86.93 Outlays from discretionary
balances........................ 3 7 7
--------- --------- ----------
87.00 Total outlays (gross)........... 76 82 85
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -4 -4 -4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 77 78 81
90.00 Outlays........................... 70 78 81
---------------------------------------------------------------------------

The Office keeps the Secretary and Congress informed about fraud,
other serious problems, mismanagement, and deficiencies in Department
programs and operations, recommends corrective action, and reports on
the progress made in correcting the problems. It reviews existing and
proposed legislation and regulations and makes recommendations to the
Secretary and Congress regarding the impact these laws have on the
Department's programs and the prevention and detection of fraud and
mismanagement in such programs. The Office provides policy direction and
conducts, supervises, and coordinates all audits and investigations. The
office supervises and coordinates other activities in the Department and
between the Department and other Federal, State and

[[Page 73]]

local government agencies whose purposes are to: (a) promote economy and
efficiency; (b) prevent and detect fraud and mismanagement; and (c)
identify and prosecute people involved in fraud or mismanagement.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 47 49 52
12.1 Civilian personnel benefits..... 13 13 13
21.0 Travel and transportation of
persons....................... 5 5 5
23.3 Communications, utilities, and
miscellaneous charges......... 2 2 2
25.2 Other services.................. 4 4 4
25.3 Other purchases of goods and
services from Government
accounts...................... 1 1 1
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 3 3 3
--------- --------- ----------
99.0 Direct obligations............ 76 78 81
99.0 Reimbursable obligations.......... 3 3 3
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 80 81 84
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0900-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 597 721 725
---------------------------------------------------------------------------

OFFICE OF THE GENERAL COUNSEL

Federal Funds

General and special funds:

Office of the General Counsel

For necessary expenses of the Office of the General Counsel,
[$35,861,000] $40,263,000. (7 U.S.C. 2201; 2202, 2214a; Agriculture,
Rural Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 35 36 40
09.00 Reimbursable program.............. 1 1 2
--------- --------- ----------
10.00 Total new obligations........... 36 37 42
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 37 37 42
23.95 Total new obligations............. -36 -37 -42
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 35 36 40
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 2 1 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 37 37 42
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 3 2 2
73.10 Total new obligations............. 36 37 42
73.20 Total outlays (gross)............. -35 -37 -43
--------- --------- ----------
74.40 Obligated balance, end of year.. 2 2 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 33 35 40
86.93 Outlays from discretionary
balances........................ 2 2 3
--------- --------- ----------
87.00 Total outlays (gross)........... 35 37 43
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -2 -1 -2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 35 36 40
90.00 Outlays........................... 35 36 41
---------------------------------------------------------------------------

The Office of the General Counsel of the Department of Agriculture
provides all legal advice, counsel, and services to the Secretary and to
all agencies, offices, and corporations of the Department on all aspects
of their operations. It represents the Department in administrative
proceedings; nonlitigation debt collection proceedings; state water
rights adjudications; proceedings before the Environmental Protection
Agency, Federal Maritime Administration, International Trade Commission,
and other Federal agencies; and, in conjunction with the Department of
Justice, in judicial proceedings and litigation. All attorneys and
related support personnel devoted to those efforts are under the
supervision of the General Counsel.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 26 27 30
12.1 Civilian personnel benefits..... 7 7 7
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
25.2 Other services.................. 1 1 1
31.0 Equipment....................... 1
--------- --------- ----------
99.0 Direct obligations............ 35 36 40
99.0 Reimbursable obligations.......... 1 1 2
--------- --------- ----------
99.9 Total new obligations........... 36 37 42
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2300-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 313 321 332
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 8 9 9
---------------------------------------------------------------------------

ECONOMIC RESEARCH SERVICE

Federal Funds

General and special funds:

Economic Research Service

For necessary expenses of the Economic Research Service in
conducting economic research and analysis, as authorized by the
Agricultural Marketing Act of 1946 (7 U.S.C. 1621-1627) and other laws,
[$74,768,000] $80,749,000. (7 U.S.C. 292, 411, 427, 1441a, 1704, 1761-
68, 2201, 2202, 2225, 3103, 3291, 3311, 3504; 22 U.S.C. 3101; 42 U.S.C.
1891-93; 44 U.S.C. 3501-11; 50 U.S.C. 2061 et seq., 2251 et seq.;
Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 71 74 81
09.00 Reimbursable program.............. 2 2 2
--------- --------- ----------
10.00 Total new obligations........... 73 76 83
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 73 76 83
23.95 Total new obligations............. -73 -76 -83
----------------------------------------------------------------------------

[[Page 74]]

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 71 75 81
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 71 74 81
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 2 2 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 73 76 83
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 23 29 30
73.10 Total new obligations............. 73 76 83
73.20 Total outlays (gross)............. -68 -75 -82
73.40 Adjustments in expired accounts
(net)........................... 1
--------- --------- ----------
74.40 Obligated balance, end of year.. 29 30 31
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 56 66 72
86.93 Outlays from discretionary
balances........................ 12 9 10
--------- --------- ----------
87.00 Total outlays (gross)........... 68 75 82
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -2 -2 -2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 71 74 81
90.00 Outlays........................... 66 73 80
---------------------------------------------------------------------------

The Economic Research Service provides economic and other social
science research and analysis for public and private decisions on
agriculture, food, natural resources, and rural America.

Miscellaneous funds received from States, local organizations, and
others are available for support of economic research and analysis (7
U.S.C. 450b, 450h, 3318b).

The 2006 Budget request includes funding to continue the development
of an integrated and comprehensive data and analysis framework to
provide a basis for understanding, monitoring, tracking, and identifying
changes in the food supply and consumption patterns.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 37 39 39
11.3 Other than full-time permanent 1 1 1
11.5 Other personnel compensation.. 1 1 1
--------- --------- ----------
11.9 Total personnel compensation 39 41 41
12.1 Civilian personnel benefits..... 8 8 9
21.0 Travel and transportation of
persons....................... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
25.2 Other services.................. 2 6 11
25.3 Other purchases of goods and
services from Government
accounts...................... 11 9 9
25.5 Research and development
contracts..................... 5 5 5
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 2 1 1
41.0 Grants, subsidies, and
contributions................. 1 1 2
--------- --------- ----------
99.0 Direct obligations............ 71 74 81
99.0 Reimbursable obligations.......... 2 2 2
--------- --------- ----------
99.9 Total new obligations........... 73 76 83
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1701-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 433 452 456
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 6 3 3
---------------------------------------------------------------------------

NATIONAL AGRICULTURAL STATISTICS SERVICE

Federal Funds

General and special funds:

National Agricultural Statistics Service

For necessary expenses of the National Agricultural Statistics
Service in conducting statistical reporting and service work, including
crop and livestock estimates, statistical coordination and improvements,
marketing surveys, and the Census of Agriculture, as authorized by 7
U.S.C. 1621-1627 and 2204g, and other laws, [$129,480,000] $145,159,000,
of which up to [$22,405,000] $29,115,000 shall be available until
expended for the Census of Agriculture. (7 U.S.C. 411, 411a, 411b, 427,
471, 475, 476, 501, 951, 953, 955-57, 2201, 2202, 2204, 2225, 2248,
3103, 3311, 3504; 18 U.S.C. 1902, 1905, 2072; 42 U.S.C. 1891-93; 44
U.S.C. 3501-11; 50 U.S.C. 2061 et seq., 2251 et seq.; Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Agricultural estimates............ 95 101 110
00.02 Statistical research and service.. 4 5 7
00.03 Census of Agriculture............. 27 26 29
09.01 Reimbursable program.............. 21 21 21
--------- --------- ----------
10.00 Total new obligations........... 147 153 167
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 3
22.00 New budget authority (gross)...... 150 150 167
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 152 153 167
23.95 Total new obligations............. -147 -153 -167
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 129 129 145
40.35 Appropriation permanently
reduced....................... -1 -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 128 128 145
Mandatory:

60.26 Appropriation (trust fund)...... 1 1 1
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 10 10 21
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 11 11
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 21 21 21
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 150 150 167
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 10 15 5
73.10 Total new obligations............. 147 153 167
73.20 Total outlays (gross)............. -140 -152 -166
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -11 -11
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 9
--------- --------- ----------
74.40 Obligated balance, end of year.. 15 5 6
----------------------------------------------------------------------------

[[Page 75]]

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 121 135 150
86.93 Outlays from discretionary
balances........................ 18 16 15
86.97 Outlays from new mandatory
authority....................... 1 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 140 152 166
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -16 -16 -18
88.40 Non-Federal sources........... -3 -3 -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -19 -19 -21
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -11 -11
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 9 9
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 129 129 146
90.00 Outlays........................... 121 133 145
---------------------------------------------------------------------------

Agricultural estimates.--The Service provides the official National
and State estimates of acreage, yield, and production of crops, stocks,
and value of farm commodities, and numbers of inventory values of
livestock items. Data on approximately 120 crops and 45 livestock
products are covered in nearly 400 reports issued each year. Detailed
data are also collected on agricultural chemical use, labor, and
expenditures. In addition, the Census of Agriculture is conducted every
five years which provides comprehensive data on the Nation's
agricultural industry down to the county level.

The work under this activity is conducted through 46 field offices
serving the 50 States and Puerto Rico; most of these offices are
operated as joint State and Federal services. Cooperative arrangements
with State agencies provide additional State and county data. The 2006
program includes funding to continue restoration and modernization of
the Agricultural Estimates program and the continuing development of a
locality based agricultural county estimates/small area estimation
program. Both initiatives are designed to strengthen the quality of
published data.

Census of Agriculture.--The Census of Agriculture is conducted every
five years. A proposed increase of $6.5 million due to cyclical
activities will be used to finalize content; continue mail list
development; and streamline and upgrade processing systems in
preparation for the 2007 Census of Agriculture.

Miscellaneous funds received from local organizations, commodity
groups, and others are available for dissemination of reports and for
survey work conducted under cooperative agreements (7 U.S.C. 450b, 450h,
3318b).

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 70 72 74
11.3 Other than full-time permanent 1 1 1
11.5 Other personnel compensation.. 1 1 1
--------- --------- ----------
11.9 Total personnel compensation 72 74 76
12.1 Civilian personnel benefits..... 18 20 18
21.0 Travel and transportation of
persons....................... 3 3 2
22.0 Transportation of things........ 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 5 5 5
25.2 Other services.................. 11 11 25
25.3 Other purchases of goods and
services from Government
accounts...................... 8 9 9
25.7 Operation and maintenance of
equipment..................... 3 3 3
26.0 Supplies and materials.......... 1 2 2
31.0 Equipment....................... 4 4 5
--------- --------- ----------
99.0 Direct obligations............ 126 132 146
99.0 Reimbursable obligations.......... 21 21 21
--------- --------- ----------
99.9 Total new obligations........... 147 153 167
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1801-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 1,004 1,260 1,289
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 106 106 106
---------------------------------------------------------------------------

AGRICULTURAL RESEARCH SERVICE

Federal Funds

General and special funds:

Salaries and Expenses

For necessary expenses to enable the Agricultural Research Service
to perform agricultural research and demonstration relating to
production, utilization, marketing, and distribution (not otherwise
provided for); home economics or nutrition and consumer use including
the acquisition, preservation, and dissemination of agricultural
information; and for acquisition of lands by donation, exchange, or
purchase at a nominal cost not to exceed $100, and for land exchanges
where the lands exchanged shall be of equal value or shall be equalized
by a payment of money to the grantor which shall not exceed 25 percent
of the total value of the land or interests transferred out of Federal
ownership, [$1,110,887,000] $996,107,000: Provided, That appropriations
hereunder shall be available for the operation and maintenance of
aircraft and the purchase of not to exceed one for replacement only:
Provided further, That appropriations hereunder shall be available
pursuant to 7 U.S.C. 2250 for the construction, alteration, and repair
of buildings and improvements, but unless otherwise provided, the cost
of constructing any one building shall not exceed $375,000, except for
headhouses or greenhouses which shall each be limited to $1,200,000, and
except for 10 buildings to be constructed or improved at a cost not to
exceed $750,000 each, and the cost of altering any one building during
the fiscal year shall not exceed 10 percent of the current replacement
value of the building or $375,000, whichever is greater: Provided
further, That the limitations on alterations contained in this Act shall
not apply to modernization or replacement of existing facilities at
Beltsville, Maryland: Provided further, That appropriations hereunder
shall be available for granting easements at the Beltsville Agricultural
Research Center: Provided further, That the foregoing limitations shall
not apply to replacement of buildings needed to carry out the Act of
April 24, 1948 (21 U.S.C. 113a): Provided further, That funds may be
received from any State, other political subdivision, organization, or
individual for the purpose of establishing or operating any research
facility or research project of the Agricultural Research Service, as
authorized by law[: Provided further, That all rights and title of the
United States in the 1.0664-acre parcel of land including improvements,
as recorded at Book 1320, Page 253, records of Larimer County, State of
Colorado, shall be conveyed to the Board of Governors of the Colorado
State University for the benefit of Colorado State University].
None of the funds appropriated under this heading shall be available
to carry out research related to the production, processing, or
marketing of tobacco or tobacco products. (7 U.S.C. 328, 427, 427i, 1281
note, 1621, 2201, 2204, 2225, 3101 note; 10 U.S.C. 2306; 16 U.S.C.
590(a)-590(b), 590(k); 18 U.S.C. 1114; 19 U.S.C. 1306(a), 1306(c); 20
U.S.C. 191-194; 21 U.S.C. 114c, 114e-131; 42 U.S.C. 1476(e), 1483;
Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Product Quality/Value Added..... 110 105 98
00.02 Livestock Production............ 95 84 63
00.03 Crop Production................. 179 197 160
00.04 Food Safety..................... 96 95 85
00.05 Livestock Protection............ 64 63 65

[[Page 76]]

00.06 Crop Protection................. 180 185 156
00.07 Human nutrition research........ 81 84 82
00.08 Environmental Stewardship....... 213 219 178
00.09 National Agricultural Library... 23 22 22
00.10 Repair and maintenance of
facilities.................... 18 18 18
00.11 Collaborative research program.. 6
00.12 Homeland security............... 21 30 69
00.13 Construction/Miscellaneous Fees. 13 4
09.00 Reimbursable program.............. 74 80 80
--------- --------- ----------
10.00 Total new obligations........... 1,173 1,186 1,076
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 17 4
22.00 New budget authority (gross)...... 1,164 1,182 1,076
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,181 1,186 1,076
23.95 Total new obligations............. -1,173 -1,186 -1,076
23.98 Unobligated balance expiring or
withdrawn....................... -3
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,089 1,111 996
40.35 Appropriation permanently
reduced....................... -6 -9
42.00 Transferred from other accounts. 6
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,089 1,102 996
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 26 80 80
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 49
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 75 80 80
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,164 1,182 1,076
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 325 314 310
73.10 Total new obligations............. 1,173 1,186 1,076
73.20 Total outlays (gross)............. -1,157 -1,190 -1,097
73.40 Adjustments in expired accounts
(net)........................... -10
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -49
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 32
--------- --------- ----------
74.40 Obligated balance, end of year.. 314 310 289
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 890 942 857
86.93 Outlays from discretionary
balances........................ 267 248 240
--------- --------- ----------
87.00 Total outlays (gross)........... 1,157 1,190 1,097
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -44 -66 -66
88.40 Non-Federal sources........... -13 -14 -14
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -57 -80 -80
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -49
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 31
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,089 1,102 996
90.00 Outlays........................... 1,099 1,110 1,017
---------------------------------------------------------------------------

The Agricultural Research Service conducts research to provide the
means for a safer, more economical supply of agricultural products for
the Nation and to provide producers with technologies to competitively
supply these products. Technology needs of regulatory, technical
assistance and education agencies of USDA and other Federal agencies are
supported through ARS research. The Service uses coordinated,
interdisciplinary approaches to perform basic and applied research on
soil and water conservation, plant and animal sciences, commodity
conversion and delivery, human nutrition, and integrated agricultural
systems. In 2006, the Service proposes increased emphases for critical
research needs in agriculture, such as: support for homeland security
efforts to protect the Nation's food supply (emerging and exotic
diseases of plants and animals, food safety, and the national plant
disease recovery system); bovine spongiform encephalopathy (BSE); air
and water quality; biobased products and bioenergy; sequencing and
bioinformatics; nutrition and obesity; genetic resources; controlling
invasive specifics; climate change; agricultural information services
and cyber security. Consistent with the 2005 Budget, the 2006 Budget
also proposes to eliminate funding for unrequested Congressional
earmarks added to the Service since 2001. In 2004, the Service submitted
81 new patent applications, participated in 44 new Cooperative research
and development agreements (CRADAs), licensed 29 new products, and
developed 57 new plant varieties to release to industry for further
development and marketing.

Product Quality/Value Added.--New products, new uses, and value-
added processes that appeal to consumers will create additional demand-
driven need for agricultural production, thus providing more
opportunities for agricultural producers and businesses. Biobased
technologies promise new opportunities for energy, industrial and
pharmacological markets for U.S. farmers. New markets are emerging for
environmental activities and products that mitigate environmental
concerns.

Livestock Production.--Intense competition in global markets
emphasizes the need for American agriculture to pursue and market higher
value animal products. Research must respond to consumer demands for
healthier and safer products to ensure a sustainable and profitable
livestock production system that produces affordable value-added food,
fiber, and industrial products. These superior technologies must
effectively differentiate U.S. agricultural products from competing
sources and provide customers with value-added processes that enhance
product quality.

Crop Production.--ARS will develop and disseminate science-based
information to provide U.S. crop producers with increased flexibility to
effectively manage unforeseen risks that impact profitability and
product quality. U.S. agricultural production and marketability is
constantly influenced by factors such as unpredictable weather, disease
and pest outbreaks, and changing consumer demands. Use of genetically
diverse germplasm resource collections and best management practices
require research that helps improve production efficiency and
productivity through the development of pest resistant varieties and
information to facilitate decision-making.

Food Safety.--For the Nation to have affordable and safe food, the
food system must be protected at each step from production to
consumption. The production and distribution system for food in the
United States has been a diverse, extensive, and easily accessible
system. This open system is vulnerable to the introduction of pathogens
and toxins through natural processes, global commerce, and by
intentional means. Thus, the food supply must be protected during
production, processing, and preparation from pathogens, toxins, and
chemical contamination that cause disease in humans.

Livestock Protection.--Economic sustainability of livestock
production systems in both domestic and global markets is limited by the
disease status of the animals. Many factors affect the likelihood of
diseases in livestock. These include globalization and international
commerce, presence of pathogen vectors, industrialization of
agriculture, availability of

[[Page 77]]

vaccines and protection systems, movements of animals during production,
continued emergence of new diseases, genetic resistance, and the
availability of vaccines and protection systems, movements of animals
during production, continued emergence of new disease, genetic
resistance, and the availability of trained animal health specialists.
Livestock production systems are in transition from open and extensive
systems to more closely monitored intensive management systems which
remain vulnerable to accidental and intentional exposure to pathogens.
Many of these pathogens are zoonotic and impact public health.

Crop Protection.--Economic sustainability of agricultural crop
production in both domestic and global markets is limited by the disease
status of crops. Many factors affect the likelihood of diseases to crops
including, globalization and international commerce, presence of
pathogen vectors, availability of protection systems, continued
emergence of new disease, genetic resistance of crops, and the
availability of trained plant health specialists. Crop systems have
limited diversity and will remain extensive and thereby more vulnerable
to intentional exposure to pathogens.

Human Nutrition.--Improving the Nation's health requires enhancing
the quality of the American diet. The United States is experiencing an
obesity epidemic resulting from multifaceted causes including a ``more
is better'' mindset, a sedentary lifestyle, and the selection of readily
available high calorie foods. In addition, four of the top ten causes of
death in the U.S.--cardiovascular disease, cancer, stroke, and
diabetes--are associated with the quality of our diets--diets too high
in calories, total fat, saturated fat, cholesterol, or too low in fiber.
Americans want fresh foods that taste good, are convenient to prepare
and consume, and yet, offer nutrition and health benefits. Building a
strong connection between agriculture and human health is an important
step to providing a nutritionally enhanced food supply. Promoting
healthier food choices and educating Americans to balance caloric intake
with sufficient daily physical activity are vital steps to preventing
obesity and decreasing risk for chronic disease.

Environmental Stewardship.--Agriculture relies on a natural resource
base whose sustainability depends on sound, science-based production
practices. The management of our renewable resources often seems to be a
continuous balancing of conflicting and competing goals and concerns.
While this is often the case, particularly in the short-term, longer-
term management strategies combined with adequate knowledge of the
complex natural systems can yield maximum sustainable benefits from our
resources that can satisfy most competing concerns. The outcome will be
technology and practices that will mitigate the adverse impact of
agriculture on the environment, moderate the build up of green house
gasses that may contribute to climate change, and remove the necessity
of farming environmentally sensitive marginal lands.

Library and Information Services.--Timely, relevant information is
an essential raw material for the research process as well as for
effective policy development and decision-making. Targeted information
services are also required to support specialized USDA audiences such as
inspectors, regulators, nutritionists, and others, as well as their
peers, customers and stakeholders nationwide. The general public
requires information on a very broad set of agriculture-related topics,
ranging from small business development to gardening to nutrition to
food safety to farming to textiles to statistics and beyond. And, the
permanent preservation of USDAs and the Nation's agricultural
intellectual heritage is a key national responsibility. The National
Agricultural Library (NAL) is mandated to fulfill these roles and is a
national resource for all users of agricultural information. NAL' s work
in collecting, preserving and ensuring access to agricultural
information is fundamental to the continued wellbeing and growth of U.S.
agriculture, and the development of food supplies for the nation and
world.

Repair and maintenance of facilities.--Funds are used to restore,
upgrade, and maintain Federal facilities to meet OSHA and EPA
requirements, provide suitable workspace for in-house research programs,
and to retrofit existing structures for better energy utilization.

Collaborative Research Program.--Funds from the U.S. Agency for
International Development (AID), allow USDA to provide short-term
scientific exchanges to the New Independent States of the former Soviet
Union (NIS), in developing a market-based agricultural system necessary
to meet the food needs of their populations and to develop and
strengthen trade linkages between their countries and related
agribusiness and agricultural enterprise in the U.S.

Reimbursements.--Agricultural Research Service performs program
research activities and services for other USDA, Federal, and non-
Federal agencies. These activities and services are paid for on a
reimbursable basis.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 465 483 496
11.3 Other than full-time permanent 21 22 22
11.5 Other personnel compensation.. 13 13 13
--------- --------- ----------
11.9 Total personnel compensation 499 518 531
12.1 Civilian personnel benefits..... 128 133 136
21.0 Travel and transportation of
persons....................... 20 20 19
22.0 Transportation of things........ 1 1 1
23.2 Rental payments to others....... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 39 40 35
24.0 Printing and reproduction....... 2 2 2
25.1 Advisory and assistance services 1 1 1
25.2 Other services.................. 6 10 4
25.3 Other purchases of goods and
services from Government
accounts...................... 2 2 2
25.4 Operation and maintenance of
facilities.................... 37 33 29
25.5 Research and development
contracts..................... 187 167 84
25.7 Operation and maintenance of
equipment..................... 8 8 7
25.8 Subsistence and support of
persons....................... 1 1 1
26.0 Supplies and materials.......... 93 94 82
31.0 Equipment....................... 50 51 45
32.0 Land and structures............. 6 7 5
41.0 Grants, subsidies, and
contributions................. 18 17 11
--------- --------- ----------
99.0 Direct obligations............ 1,099 1,106 996
99.0 Reimbursable obligations.......... 74 80 80
--------- --------- ----------
99.9 Total new obligations........... 1,173 1,186 1,076
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1400-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 8,447 8,485 8,485
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 196 196 196
---------------------------------------------------------------------------

Buildings and Facilities

For acquisition of land, construction, repair, improvement,
extension, alteration, and purchase of fixed equipment or facilities as
necessary to carry out the agricultural research programs of the
Department of Agriculture, where not otherwise provided, [$187,838,000]
$64,800,000, to remain available until expended. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)

[[Page 78]]

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Building and facilities projects.. 161 180 200
--------- --------- ----------
10.00 Total new obligations........... 161 180 200
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 403 306 312
22.00 New budget authority (gross)...... 64 186 65
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 467 492 377
23.95 Total new obligations............. -161 -180 -200
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 306 312 177
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 64 188 65
40.35 Appropriation permanently
reduced....................... -2
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 64 186 65
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 83 149 212
73.10 Total new obligations............. 161 180 200
73.20 Total outlays (gross)............. -94 -117 -123
--------- --------- ----------
74.40 Obligated balance, end of year.. 149 212 289
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 45 28 9
86.93 Outlays from discretionary
balances........................ 49 89 114
--------- --------- ----------
87.00 Total outlays (gross)........... 94 117 123
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 64 186 65
90.00 Outlays........................... 94 117 123
---------------------------------------------------------------------------

This account provides funds for the acquisition of land,
construction, repair, improvement, extension, alterations, and purchases
of fixed equipment or facilities of or used by the Agricultural Research
Service. The 2006 Budget request provides for additional funding
required for the accelerated completion of the department's animal
research and diagnostic facilities at Ames, IA; the modernization of the
foreign weed science laboratory, Frederick, MD and the National
agricultural library, Beltsville, MD.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1401-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
25.2 Other services.................... 156 159 148
31.0 Equipment......................... 1 1 2
32.0 Land and structures............... 4 20 50
--------- --------- ----------
99.9 Total new obligations........... 161 180 200
---------------------------------------------------------------------------

Trust Funds

Miscellaneous Contributed Funds

Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8214-0-7-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Receipts:
02.20 Deposits of miscellaneous
contributed funds, Science and
Educati......................... 14 18 18
Appropriations:
05.00 Miscellaneous contributed funds... -14 -18 -18
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Miscellaneous contributed funds... 19 20 20
--------- --------- ----------
10.00 Total new obligations........... 19 20 20
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 20 15 13
22.00 New budget authority (gross)...... 14 18 18
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 34 33 31
23.95 Total new obligations............. -19 -20 -20
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 15 13 11
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.26 Appropriation (trust fund)...... 14 18 18
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 8 8 8
73.10 Total new obligations............. 19 20 20
73.20 Total outlays (gross)............. -20 -20 -22
--------- --------- ----------
74.40 Obligated balance, end of year.. 8 8 6
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 14 13 13
86.98 Outlays from mandatory balances... 6 7 9
--------- --------- ----------
87.00 Total outlays (gross)........... 20 20 22
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 14 18 18
90.00 Outlays........................... 20 20 22
---------------------------------------------------------------------------

Miscellaneous contributed funds received from States, local
organizations, individuals, and others are available for work under
cooperative agreements on research activities.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8214-0-7-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 6 6 6
12.1 Civilian personnel benefits....... 1 1 1
21.0 Travel and transportation of
persons......................... 1 1 1
25.2 Other services.................... 1 2 2
25.5 Research and development contracts 5 5 5
26.0 Supplies and materials............ 4 4 4
31.0 Equipment......................... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 19 20 20
---------------------------------------------------------------------------

Personnel Summary

COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE

Federal Funds

General and special funds:

Integrated Activities

For the integrated research, education, and extension grants
programs, including necessary administrative expenses, [$55,153,000]
$35,013,000, as follows: [for competitive grants programs authorized
under section 406 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7626), $43,058,000, including $12,971,000
for the water quality program, $14,967,000 for the food safety program,
$4,200,000 for the regional pest management centers program, $4,500,000
for the Food Quality Protection Act risk mitiga

[[Page 79]]

tion program for major food crop systems, $1,400,000 for the crops
affected by Food Quality Protection Act implementation, $3,131,000 for
the methyl bromide transition program, and $1,889,000 for the organic
transition program;] for a competitive international science and
education grants program authorized under section 1459A of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3292b), to remain available until expended, $1,000,000; for
grants programs authorized under section 2(c)(1)(B) of Public Law 89-
106, as amended, [$750,000] $2,500,000, to remain available until
September 30, [2006] 2007 for the critical issues program, and
[$1,345,000] $1,513,000 for the regional rural development centers
program; and [$9,000,000] $30,000,000 for the [homeland security
program] Food and Agriculture Defense Initiative authorized under
section 1484 of the National Agricultural Research, Extension, and
Teaching Act of 1977, to remain available until September 30, [2006]
2007. (7 U.S.C. 450i(c)(1)(B), 3292b, 3351, 7626; Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.10 Organic Research and Extension
Init............................ 3
00.20 Water quality..................... 12 13
00.30 Food safety....................... 13 15
00.40 Regional pest management centers.. 4 4
00.50 Crops at risk from Food Quality
Protection Act implementation... 1 1
00.60 Food Quality Protection Act risk
mitigation program.............. 5 4
00.70 Methyl bromide transition program. 3 3
00.71 Homeland Security................. 8 9 30
00.86 International science and
education grants................ 2 1
00.87 Rural development centers......... 1 1 2
00.88 Organic transition................ 2 2
00.89 Critical issues--plant and animal
diseases........................ 1 2
--------- --------- ----------
10.00 Total new obligations........... 52 55 35
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 2
22.00 New budget authority (gross)...... 53 55 35
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 53 57 37
23.95 Total new obligations............. -52 -55 -35
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 2 2 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 53 55 35
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 108 118 122
73.10 Total new obligations............. 52 55 35
73.20 Total outlays (gross)............. -45 -51 -58
73.40 Adjustments in expired accounts
(net)........................... 3
--------- --------- ----------
74.40 Obligated balance, end of year.. 118 122 99
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 6 7 15
86.93 Outlays from discretionary
balances........................ 39 44 43
--------- --------- ----------
87.00 Total outlays (gross)........... 45 51 58
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 53 55 35
90.00 Outlays........................... 45 51 58
---------------------------------------------------------------------------

Under the Integrated Activities account, research, education and/or
extension grants are awarded for competitive and non-competitive
programs. In 2006, the Budget proposes that Section 406 activities,
formerly supported under the Integrated account, be supported within the
Research and Education account. These activities will be funded at $41.9
million, but the grants will be administered through the National
Research Initiative (NRI) or the new competitive regional, State or
local applied research program. This will allow greater flexibility and
responsiveness to changing needs in these targeted activities.

Critical issues program.--Funds are proposed to develop early
intervention strategies to prevent, manage or eradicate new and emerging
diseases, both plant and animal, which would prevent loss of revenue to
growers or producers.

Regional rural development centers.--Funding supports activities
that pursue a holistic development strategy that tailors programming to
meet regional and local needs and addresses areas of opportunity arising
from a consumer-driven agricultural economy.

Regional Diagnostic Network (homeland security).--As part of the
Food and Agriculture Defense Initiative, this program provides support
to an unified network of public agricultural institutions to identify
and respond to high risk biological pathogens in the food and
agricultural system. The 2006 Budget includes an increase to enhance
agricultural defense.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1502-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 1 1
25.2 Other services.................... 1 1 1
41.0 Grants, subsidies, and
contributions................... 50 53 34
--------- --------- ----------
99.9 Total new obligations........... 52 55 35
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1502-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 8 8 4
---------------------------------------------------------------------------

Initiative for Future Agriculture and Food Systems

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1503-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 140
22.00 New budget authority (gross)...... 140 -140
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 140
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 140
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.35 Appropriation permanently
reduced....................... -160
40.36 Unobligated balance permanently
reduced....................... -140
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. -300
Mandatory:

62.00 Transferred from other accounts. 140 160
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 140 -140
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 113 62 28
73.20 Total outlays (gross)............. -53 -34 -7
73.40 Adjustments in expired accounts
(net)........................... 1
--------- --------- ----------
74.40 Obligated balance, end of year.. 62 28 21
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -15
86.97 Outlays from new mandatory
authority....................... 8
86.98 Outlays from mandatory balances... 53 34 14
--------- --------- ----------
87.00 Total outlays (gross)........... 53 34 7
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 140 -140
90.00 Outlays........................... 53 34 7
---------------------------------------------------------------------------

1998 Research Act.--The 2006 Budget proposes to cancel $140 million
in 2005 funding and $160 million in 2006 fund

[[Page 80]]

ing because adequate funding for similar research is proposed through
other USDA research programs.

Research and Education Activities

For payments to agricultural experiment stations, for cooperative
forestry and other research, for facilities, and for other expenses,
[$660,781,000] $545,500,000, as follows: to carry out the provisions of
the Hatch Act of 1887 (7 U.S.C. 361a-i), [$180,148,000] $89,354,000; for
grants for cooperative forestry research (16 U.S.C. 582a through a-7),
[$22,384,000] $11,103,000; for payments to the 1890 land-grant colleges,
including Tuskegee University and West Virginia State University (7
U.S.C. 3222), [$37,000,000] $38,250,000, of which $1,507,496 shall be
made available only for the purpose of ensuring that each institution
shall receive no less than $1,000,000; for special grants for
agricultural research (7 U.S.C. 450i(c)), [$121,284,000] $3,341,000; for
special grants for agricultural research on improved pest control (7
U.S.C. 450i(c)), [$15,280,000] $15,006,000; for research grants for the
state agricultural experiment stations competitively awarded (7 U.S.C.
450i(c)(1)(A)), $75,000,000; for competitive research grants (7 U.S.C.
450i(b)), [$181,000,000; for the support of animal health and disease
programs (7 U.S.C. 3195), $5,098,000; for supplemental and alternative
crops and products (7 U.S.C. 3319d), $1,196,000; for grants for research
pursuant to the Critical Agricultural Materials Act (7 U.S.C. 178 et
seq.), $1,111,000, to remain available until expended] $250,000,000, to
remain available until expended; for the 1994 research grants program
for 1994 institutions pursuant to section 536 of Public Law 103-382 (7
U.S.C. 301 note), [$1,087,000] $998,000, to remain available until
expended; [for rangeland research grants (7 U.S.C. 3333), $1,000,000];
for higher education graduate fellowship grants (7 U.S.C. 3152(b)(6)),
[$3,000,000] $4,500,000, to remain available until expended (7 U.S.C.
2209b); for higher education challenge grants (7 U.S.C. 3152(b)(1)),
$5,500,000; for a higher education multicultural scholars program (7
U.S.C. 3152(b)(5)), $998,000, to remain available until expended (7
U.S.C. 2209b); for a higher education agrosecurity education program (7
U.S.C. 3351), $5,000,000, to remain available until expended; for an
education grants program for Hispanic-serving Institutions (7 U.S.C.
3241), $5,645,000; for noncompetitive grants for the purpose of carrying
out all provisions of 7 U.S.C. 3242 (section 759 of Public Law 106-78)
to individual eligible institutions or consortia of eligible
institutions in Alaska and in Hawaii, with funds awarded equally to each
of the States of Alaska and Hawaii, [$3,500,000] $2,997,000; for a
secondary agriculture education program and 2-year post-secondary
education (7 U.S.C. 3152(j)), $1,000,000; for aquaculture grants (7
U.S.C. 3322), [$4,000,000] $3,996,000; for sustainable agriculture
research and education (7 U.S.C. 5811), [$12,500,000] $9,230,000; for a
program of capacity building grants (7 U.S.C. 3152(b)(4)) to colleges
eligible to receive funds under the Act of August 30, 1890 (7 U.S.C.
321-326 and 328), including Tuskegee University and West Virginia State
University, [$12,411,000] $12,500,000, to remain available until
expended (7 U.S.C. 2209b); for payments to the 1994 Institutions
pursuant to section 534(a)(1) of Public Law 103-382, $2,250,000; [for
resident instruction grants for insular areas under section 1491 of the
National Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3363), $500,000]; and for necessary expenses of Research
and Education Activities, [$42,889,000] $8,832,000, of which $2,750,000
for the Research, Education, and Economics Information System and
$2,173,000 for the Electronic Grants Information System, are to remain
available until expended.
None of the funds appropriated under this heading shall be available
to carry out research related to the production, processing, or
marketing of tobacco or tobacco products: Provided, That this paragraph
shall not apply to research on the medical, biotechnological, food, and
industrial uses of tobacco. (Agriculture, Rural Development, Food and
Drug Administration, and Related Agencies Appropriations Act, 2005.)

Native American Institutions Endowment Fund

For the Native American Institutions Endowment Fund authorized by
Public Law 103-382 (7 U.S.C. 301 note), $12,000,000, to remain available
until expended. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1500-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ 46 55 67
Receipts:
02.40 Federal payment, Native American
institutions endowment fund..... 9 12 12
02.41 Earnings on investments, Native
American institutions endowment. 2 2 3
--------- --------- ----------
02.99 Total receipts and collections.. 11 14 15
--------- --------- ----------
04.00 Total: Balances and collections... 57 69 82
Appropriations:
05.00 Research and education activities. -2 -2 -3
--------- --------- ----------
07.99 Balance, end of year.............. 55 67 79
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Payments under the Hatch Act...... 179 179 89
00.02 Cooperative forestry research..... 22 22 11
00.03 Payments to 1890 colleges and
Tuskegee Univ. and West Virginia
State College................... 36 37 38
00.04 Special research grants........... 145 156 108
00.05 National research initiative
competitive grants.............. 151 270 250
00.06 Animal health and disease research 5 5
00.07 Federal administration............ 37 43 9
00.08 Higher education.................. 30 35 40
00.09 Native American Institutions
Endowment Fund.................. 11 14 15
09.00 Reimbursable program.............. 19 17 17
--------- --------- ----------
10.00 Total new obligations........... 635 778 577
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 103 110 19
22.00 New budget authority (gross)...... 641 687 577
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 744 797 596
23.95 Total new obligations............. -635 -778 -577
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 110 19 19
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 630 673 557
40.20 Appropriation (special fund).... 2 2 3
40.35 Appropriation permanently
reduced....................... -4 -5
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 628 670 560
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 17 17
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 13
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 13 17 17
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 641 687 577
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 565 665 850
73.10 Total new obligations............. 635 778 577
73.20 Total outlays (gross)............. -559 -593 -500
73.40 Adjustments in expired accounts
(net)........................... 20
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -13
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 16
--------- --------- ----------
74.40 Obligated balance, end of year.. 665 850 927
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 214 360 304
86.93 Outlays from discretionary
balances........................ 343 233 196
86.98 Outlays from mandatory balances... 2
--------- --------- ----------
87.00 Total outlays (gross)........... 559 593 500
----------------------------------------------------------------------------

[[Page 81]]

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -19 -17 -17
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -13
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 19
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 628 670 560
90.00 Outlays........................... 540 576 483
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 41 52 64
92.02 Total investments, end of year:
Federal securities: Par value... 52 64 76
---------------------------------------------------------------------------

Cooperative State Research, Education, and Extension Service
participates in a nationwide system of agricultural re- search and
education program planning and coordination between State institutions
and the U.S. Department of Agriculture. It assists in maintaining
cooperation among the State institutions, and between the State
institutions and their Federal research partners. The agency administers
grants and payments to State institutions to supplement State and local
funding for agricultural research and higher education.

The Budget proposes that beginning in 2006, a portion of funding for
the Hatch Act, McIntire Stennis Cooperative Forestry, and Animal Health
and Disease Research Programs be shifted to competively awarded grants.
The 2006 Budget proposes a new competitively awarded grants program to
support systemwide research planning and coordination and for regional,
State, and local research in the areas of new products/new uses, social
sciences, and the environment. This program will replace some of the
multistate efforts currently supported by formula funds. In addition,
the Budget proposes an increase in funding for the NRI.

Payments under the Hatch Act.--Funds under the Hatch Act are
allocated on a formula basis to agricultural experiment stations of the
land-grant colleges in the 50 States, the District of Columbia, Puerto
Rico, Guam, the Virgin Islands, American Samoa, Micronesia, and Northern
Mariana Islands.

Cooperative forestry research.--These funds are allocated by formula
to land-grant colleges or agricultural experiment stations in the 50
States, Puerto Rico, Guam, the Virgin Islands, and other State-supported
colleges and universities having a forestry school and offering graduate
training in forestry sciences.

Payments to 1890 colleges and Tuskegee University and West Virginia
State University.--Funds allocated on a formula basis support
agricultural research and broaden the curricula at the eighteen 1890
land-grant colleges, including Tuskegee University and West Virginia
State University.

Special research grants.--This program addresses research areas of
national interest. Funding is proposed for grant programs in IR-4 minor
crop pest management, pest management alternatives, and sustainable
agriculture. Funding is also proposed for integrated pest management.
Advances in these areas will provide producers with safe, alternative
pest control methods resulting in more farmers increasing the number of
acres on which Integrated Pest Management (IPM) methods are used.
Funding proposed for IR-4 minor crop pest management and minor use
animal drugs will address the growing need for registration of safe
pesticides and drugs for minor crops and animals and lead to reduced
levels of chemical and drug residues in food products by half. These
pest management programs will be coordinated to address Food Quality and
Protection Act issues. The IR-4 and IPM programs are contained under
improved pest control funding. Improved pest control also includes Pest
Management Alternatives, and Expert IPM Decision Support System
Programs. A grant program for global change is proposed for research at
universities as part of a coordinated Federal initiative. Funding is
also proposed for the National Biological Impact Assessment Program, and
aquaculture centers. In 2006, a new competitively awarded grants program
is proposed to support systemwide research, planning and coordination,
for regional, State and local research in the areas of new products/new
uses, social sciences and the environment. The 2006 Budget eliminates
funding for unrequested earmarks.

National research initiative competitive grants.--Funding is being
proposed for the National Research Initiative (NRI). Research scientists
throughout the U.S. scientific community compete for funding under this
program. The performance goal has been to attract the widest possible
involvement of U.S. scientists in agricultural research to increase the
knowledge base related to U.S. agriculture, food, and the environment
and maintain world leadership in agricultural science and engineering.
NRI funding has resulted in increased participation by universities
which are not traditionally considered agricultural schools and of
highly skilled researchers in projects addressing agricultural issues.
The outcomes include the efficient communication of research results to
scientific, engineering, and community user groups. These grants support
research in plants and animals; natural resources and the environment;
nutrition, food safety, and health; markets, trade, and rural
development; and processing for adding value or developing new products.

1994 Institutions Research.--Funding is proposed to continue the
competitive research grants program to build the research capacity at
the thirty-three 1994 institutions by supporting agricultural research
activities that address tribal, national and multistate priorities.

Federal administration.--A coordinating and review staff assists in
maintaining cooperation within and among the States, and between the
States and their Federal research partners. This staff also administers
research and education grants and payments to States. Federal
administration is funded from a combination of program set-asides from
formula and grant programs and from direct appropriation for
administration.

Higher education.--Funding is proposed for graduate fellowships
grants, competitive challenge grants, Hispanic-serving institutions
education grants program, and a multicultural scholars program. Funding
is also proposed for Native American institutions, Alaska Native-serving
and Native Hawaiian-serving Institutions, and Secondary Agriculture
Education and 2-year Post-secondary programs. These programs enable
universities to broaden their curricula; increase faculty development;
student research projects; and the number of new scholars recruited in
the food and agricultural sciences. In addition, an increased number of
graduate students, including minority graduate students, will be
enrolled in the agricultural sciences. Funding is also proposed for a
capacity building program at the 1890 institutions as part of the USDA
initiative to strengthen these institutions through a broadening of
curricula, increased faculty development and student research projects.
Funding is proposed in the 2006 Budget for a Higher Education
Agrosecurity Program to provide educational and professional development
for personnel in securing the Nation's agriculture and food supply.

Reimbursable program.--Funds support basic and applied agriculture
research and activities performed for other USDA, Federal, and non-
Federal agencies.

Native American Institutions Endowment Fund.--This program provides
for an endowment for the 1994 land-grant institutions (33 Tribally
controlled colleges) to strengthen the infrastructure of these
institutions and develop Indian expertise for the food and agricultural
sciences and businesses and their own communities. At the termination of
each fiscal year,

[[Page 82]]

the Secretary shall withdraw the income from the endowment fund for the
fiscal year, and after making adjustments for the cost of administering
the fund, distribute the adjusted income on a formula basis to the 1994
land-grant institutions. The 2006 Budget includes an increase for the
endowment fund.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 15 18 19
12.1 Civilian personnel benefits..... 4 4 4
21.0 Travel and transportation of
persons....................... 2 2 2
25.1 Advisory and assistance services 1 1 1
25.2 Other services.................. 2 2 2
25.4 Operation and maintenance of
facilities.................... 1 1 1
25.5 Research and development
contracts..................... 2 2 2
25.8 Subsistence and support of
persons....................... 1 1
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 1 1 1
41.0 Grants, subsidies, and
contributions................. 587 728 526
--------- --------- ----------
99.0 Direct obligations............ 616 761 560
99.0 Reimbursable obligations.......... 19 17 17
--------- --------- ----------
99.9 Total new obligations........... 635 778 577
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1500-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 202 216 220
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 9 9 9
---------------------------------------------------------------------------

Buildings and Facilities

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1501-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct Program Activity........... 4
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 4
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 5 1 1
23.95 Total new obligations............. -4
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1 1 1
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 4 5 5
73.10 Total new obligations............. 4
73.20 Total outlays (gross)............. -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 5 5 5
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 3
---------------------------------------------------------------------------

Funds provide grants to States and other eligible recipients for the
acquisition of land, construction, repair, improvement, extension,
alteration and purchase of fixed equipment or facilities to carry out
agricultural research, extension, and teaching programs. No funding is
proposed in 2006.

Extension Activities

For payments to States, the District of Columbia, Puerto Rico, Guam,
the Virgin Islands, Micronesia, Northern Marianas, and American Samoa,
[$449,225,000] $431,743,000, as follows: payments for cooperative
extension work under the Smith-Lever Act, to be distributed under
sections 3(b) and 3(c) of said Act, and under section 208(c) of Public
Law 93-471, for retirement and employees' compensation costs for
extension agents, [$277,742,000] $275,940,000; payments for extension
work at the 1994 Institutions under the Smith-Lever Act (7 U.S.C.
343(b)(3)), $3,273,000; payments for the nutrition and family education
program for low-income areas under section 3(d) of the Act,
[$58,909,000] $62,909,000; payments for the pest management program
under section 3(d) of the Act, [$10,000,000; payments for the farm
safety program under section 3(d) of the Act, $4,600,000] $10,759,000;
payments for New Technologies for Ag Extension under Section 3(d) of the
Act, $3,000,000; payments to upgrade research, extension, and teaching
facilities at the 1890 land-grant colleges, including Tuskegee
University and West Virginia State University, as authorized by section
1447 of Public Law 95-113 (7 U.S.C. 3222b), [$16,912,000] $14,912,000,
to remain available until expended; payments for youth-at-risk programs
under section 3(d) of the Smith-Lever Act, [$7,538,000] $8,481,000; for
youth farm safety education and certification extension grants, to be
awarded competitively under section 3(d) of the Act, [$444,000]
$499,000; payments for carrying out the provisions of the Renewable
Resources Extension Act of 1978 (16 U.S.C. 1671 et seq.), $4,093,000;
payments for Indian reservation agents under section 3(d) of the Smith-
Lever Act, [$1,774,000] $1,996,000; payments for sustainable agriculture
programs under section 3(d) of the Act, [$4,100,000; payments for rural
health and safety education as authorized by section 502(i) of Public
Law 92-419 (7 U.S.C. 2662(i)), $1,981,000] $3,792,000; payments for
cooperative extension work by the colleges receiving the benefits of the
second Morrill Act (7 U.S.C. 321-326 and 328) and Tuskegee University
and West Virginia State University, [$33,133,000] $34,417,000, of which
$1,724,884 shall be made available only for the purpose of ensuring that
each institution shall receive no less than $1,000,000; [for grants to
youth organizations pursuant to section 7630 of title 7, United States
Code, $2,667,000]; and for necessary expenses of Extension Activities,
[$22,059,000] $7,672,000. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Smith-Lever Act, 3(b) and 3(c).... 278 276 276
00.02 Youth at risk..................... 8 7 8
00.04 Expanded food and nutrition
education program (EFNEP)....... 52 58 63
00.05 Pest management................... 10 10 11
00.06 Farm Safety....................... 5 4
00.09 Indian reservation extension
agents.......................... 2 2 2
00.13 Payments to 1890 colleges and
Tuskegee Univ. and West Virginia
State College................... 32 33 34
00.15 Renewable resources extension act. 4 4 4
00.16 Federal administration............ 22 22 8
00.19 1890 facilities (section 1447).... 19 17 15
00.21 Sustainable agriculture........... 4 4 4
00.22 1994 institutions activities...... 3 3 3
00.23 Youth Farm Safety Program......... 1 1 1
00.24 Rural Health and Safety Education. 2 2
00.25 Grants to Youth Serving
Organizations................... 3 3
00.26 Risk Management Education......... 5 5 5
00.27 New Technologies for Ag. Extension 3
09.00 Reimbursable program.............. 26 17 17
--------- --------- ----------
10.00 Total new obligations........... 476 468 454
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 6
22.00 New budget authority (gross)...... 470 468 454
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 476 468 454
23.95 Total new obligations............. -476 -468 -454
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 442 449 432

[[Page 83]]

40.35 Appropriation permanently
reduced....................... -3 -3
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 439 446 432
Mandatory:

62.00 Transferred from other accounts. 5 5 5
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 2 17 17
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 24
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 26 17 17
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 470 468 454
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 294 309 337
73.10 Total new obligations............. 476 468 454
73.20 Total outlays (gross)............. -444 -440 -427
73.40 Adjustments in expired accounts
(net)........................... -8
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -24
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 17
--------- --------- ----------
74.40 Obligated balance, end of year.. 309 337 364
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 225 285 276
86.93 Outlays from discretionary
balances........................ 219 155 151
--------- --------- ----------
87.00 Total outlays (gross)........... 444 440 427
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -23 -17 -17
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -24
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 21
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 444 451 437
90.00 Outlays........................... 421 423 410
---------------------------------------------------------------------------

The Cooperative Extension System, a national educational network, is
a dynamic organization pledged to meeting the country's needs for
research-based educational programs that will enable people to make
practical decisions to improve their lives. To accomplish its mission,
the Cooperative Extension System adjusts programs to meet the shifting
needs and priorities of the people it serves.

The nonformal educational network combines the expertise and
resources of Federal, State, and local partners. The partners in this
unique System are: (a) The Cooperative State Research, Education, and
Extension Service at the U.S. Department of Agriculture; (b) Extension
professionals at land-grant universities throughout the United States
and its territories; and (c) Extension professionals in nearly all of
the Nation's 3,150 counties. Thousands of paraprofessionals and nearly 3
million volunteers support this partnership and magnify its impact.
Strong linkages with both public and private external groups are also
crucial to the Cooperative Extension System's strength and vitality.

Programs supported with Smith-Lever 3(b) and (c) legislated formula
funds, are the major educational efforts central to the mission of the
System and common to most Extension units. These programs are the
foundation of the Extension organization and partnership that are
intended to increase the number of community-based projects, families,
and individuals reached to disseminate research findings as widely and
quickly as possible. The use of electronic mail, satellite transmission
of courses, and computer-assisted instruction are encouraged to
communicate ideas.

Extension resources are provided to the States by these formula
funds and competitively-awarded programs such as sustainable
agriculture. Smith-Lever 3(b) and (c) funds and payments to the 1890
colleges and Tuskegee University and West Virginia State University
provide funds to support the Extension's infrastructure.

Funds for designated programs, funded by Smith-Lever 3(d) such as
youth-at-risk and expanded food and nutrition education program (EFNEP),
provide support for the Cooperative Extension System to address
identified priority issues.

In 2006, funding has been requested for the Expanded Food and
Nutrition Education Program, pest management, children, youth and
families at risk, a youth farm safety education and certification pilot
project, extension services on Indian reservations, sustainable
agriculture, new technologies at Ag Extension, renewable resources
extension act, and 1994 (Native American) institutions.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 12 13 14
12.1 Civilian personnel benefits..... 2 3 3
21.0 Travel and transportation of
persons....................... 1 1 1
25.2 Other services.................. 3 2 2
25.4 Operation and maintenance of
facilities.................... 1 1 1
25.5 Research and development
contracts..................... 1 1 1
41.0 Grants, subsidies, and
contributions................. 433 430 415
--------- --------- ----------
99.0 Direct obligations............ 453 451 437
99.0 Reimbursable obligations.......... 23 17 17
--------- --------- ----------
99.9 Total new obligations........... 476 468 454
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0502-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 194 215 215
---------------------------------------------------------------------------

Outreach for Socially Disadvantaged Farmers

For grants and contracts pursuant to section 2501 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279),
$5,935,000, to remain available until expended. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.10 Direct Program Activity........... 6 6 6
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 6 6 6
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 6 6 6
23.95 Total new obligations............. -6 -6 -6
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 6 6 6
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 8 10 10
73.10 Total new obligations............. 6 6 6
73.20 Total outlays (gross)............. -4 -6 -6
--------- --------- ----------
74.40 Obligated balance, end of year.. 10 10 10
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2 6 6
86.93 Outlays from discretionary
balances........................ 2
--------- --------- ----------
87.00 Total outlays (gross)........... 4 6 6
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 6 6 6

[[Page 84]]

90.00 Outlays........................... 4 6 6
---------------------------------------------------------------------------

Outreach for Socially Disadvantaged Farmers Grants.--This
competitive program is authorized under section 2501 of Title XXV of the
Food, Agriculture, Conservation, and Trade Act of 1990. The Secretary of
Agriculture is authorized to make grants to eligible institutions and
organizations so that they may provide outreach and technical assistance
to encourage and assist socially disadvantaged farmers and ranchers to
own and operate farms and ranches and to participate in agricultural
programs.

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0601-0-1-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 3 3 3
---------------------------------------------------------------------------

ANIMAL AND PLANT HEALTH INSPECTION SERVICE

Federal Funds

General and special funds:

Salaries and Expenses

(including transfers of funds)

For expenses, not otherwise provided for, necessary to prevent,
control, and eradicate pests and plant and animal diseases; to carry out
inspection, quarantine, and regulatory activities; and to protect the
environment, as authorized by law, [$814,623,000] $855,162,000, of which
[$4,119,000] $4,140,000 shall be available for the control of outbreaks
of insects, plant diseases, animal diseases and for control of pest
animals and birds to the extent necessary to meet emergency conditions;
of which [$47,500,000] $15,834,000 shall be used for the boll weevil
eradication program for cost share purposes or for debt retirement for
active eradication zones; of which [$33,197,000] $33,340,000 shall be
available for a National Animal Identification program: Provided, That
no funds shall be used to formulate or administer a brucellosis
eradication program for the current fiscal year that does not require
minimum matching by the States of at least 40 percent: Provided further,
That this appropriation shall be available for the operation and
maintenance of aircraft and the purchase of not to exceed four, of which
two shall be for replacement only: Provided further, That, in addition,
[in emergencies] for sudden, urgent, and unforeseen circumstances which
threaten any segment of the agricultural production industry of this
country, the Secretary may transfer from other appropriations or funds
available to the agencies or corporations of the Department such sums as
may be deemed necessary, to be available only in such emergencies for
the arrest and eradication of contagious or infectious disease or pests
of animals, poultry, or plants, and for expenses in accordance with
sections 10411 and 10417 of the Animal Health Protection Act (7 U.S.C.
8310 and 8316) and sections 431 and 442 of the Plant Protection Act (7
U.S.C. 7751 and 7772), and any unexpended balances of funds transferred
for such emergency purposes in the preceding fiscal year shall be merged
with such transferred amounts: Provided further, That appropriations
hereunder shall be available pursuant to law (7 U.S.C. 2250) for the
repair and alteration of leased buildings and improvements, but unless
otherwise provided the cost of altering any one building during the
fiscal year shall not exceed 10 percent of the current replacement value
of the building: Provided further, That no funds shall be used to
implement a national animal identification system prior to notification
to the Committees on Appropriations which shall include a detailed
explanation of the components of such system.
In fiscal year [2005] 2006, the agency is authorized to collect fees
to cover the total costs of providing technical assistance, goods, or
services requested by States, other political subdivisions, domestic and
international organizations, foreign governments, or individuals,
provided that such fees are structured such that any entity's liability
for such fees is reasonably based on the technical assistance, goods, or
services provided to the entity by the agency, and such fees shall be
credited to this account, to remain available until expended, without
further appropriation, for providing such assistance, goods, or
services. (Agriculture, Rural Development, Food and Drug Administration,
and Related Agencies Appropriations Act, 2005.)

Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1600-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ 143 88 81
Receipts:
02.00 1990 food, agricultural quarantine
inspection fees................. 258 328 363
02.20 Fees, Animal welfare user fee
account......................... 11
--------- --------- ----------
02.99 Total receipts and collections.. 258 328 374
--------- --------- ----------
04.00 Total: Balances and collections... 401 416 455
Appropriations:
05.00 Salaries and expenses............. -313 -335 -341
05.10 Salaries and expenses............. -11
--------- --------- ----------
05.99 Total appropriations............ -313 -335 -352
--------- --------- ----------
07.99 Balance, end of year.............. 88 81 103
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Pest and disease exclusion........ 303 286 306
00.02 Plant and animal health monitoring 133 198 239
00.03 Pest and disease management
programs........................ 318 364 342
00.04 Animal care....................... 16 17 7
00.05 Scientific and technical services. 70 76 86
00.06 Contingencies..................... 5 4 4
00.07 Emergency program funding......... 208 94 30
00.08 Information Technology
Infrastructure.................. 4 5 5
00.09 Supplemental Appropriations....... 4
00.10 Physical/Operational Security..... 3
--------- --------- ----------
01.00 Total direct program............ 1,061 1,044 1,022
09.01 Reimbursable program.............. 88 89 89
--------- --------- ----------
10.00 Total new obligations........... 1,149 1,133 1,111
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 283 307 206
22.00 New budget authority (gross)...... 1,128 1,032 1,081
22.10 Resources available from
recoveries of prior year
obligations..................... 46
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,457 1,339 1,287
23.95 Total new obligations............. -1,149 -1,133 -1,111
23.98 Unobligated balance expiring or
withdrawn....................... -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 307 206 176
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 721 815 855
40.35 Appropriation permanently
reduced....................... -4 -7
42.00 Transferred from other accounts. 210
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 927 808 855
Mandatory:

60.20 Appropriation (special fund).... 313 335 341
61.00 Transferred to other accounts... -194 -200 -204
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 119 135 137
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 78 89 89
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 4
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 82 89 89
--------- --------- ----------

[[Page 85]]

70.00 Total new budget authority
(gross)....................... 1,128 1,032 1,081
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 403 436 333
73.10 Total new obligations............. 1,149 1,133 1,111
73.20 Total outlays (gross)............. -1,072 -1,236 -1,178
73.40 Adjustments in expired accounts
(net)........................... -11
73.45 Recoveries of prior year
obligations..................... -46
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -4
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 16
--------- --------- ----------
74.40 Obligated balance, end of year.. 436 333 266
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 720 776 816
86.93 Outlays from discretionary
balances........................ 236 301 193
86.97 Outlays from new mandatory
authority....................... 93 128 130
86.98 Outlays from mandatory balances... 23 31 39
--------- --------- ----------
87.00 Total outlays (gross)........... 1,072 1,236 1,178
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -33 -30 -30
88.40 Non-Federal sources........... -66 -59 -59
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -99 -89 -89
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -4
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 21
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,046 943 992
90.00 Outlays........................... 973 1,147 1,089
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2004 actual 2005 est. 2006 est.
Enacted/requested:
Budget Authority.................. 1,046 943 992
Outlays........................... 973 1,147 1,089
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 11
Outlays........................... 11
------------------------------------
Total:
Budget Authority.................. 1,046 943 1,003
Outlays........................... 973 1,147 1,100
====================================

The major objectives of the Animal and Plant Health Inspection
Service (APHIS) are to protect the health and value of American
agriculture and natural resources against a variety of threats. To
achieve this mission, APHIS has developed a protection system that is
based on a strategic premise that safeguarding the health of animals,
plants, and ecosystems makes possible safe agricultural trade and
reduces losses to agricultural and natural resources. This mission is
carried out under the five major areas of activity, as follows:

Pest and disease exclusion.--The Agency develops protocols for trade
and travel to prevent the entry of plant or animal pests and diseases
into the United States and conducts quarantines and treatments of
regulated products. APHIS develops and conducts preclearance programs to
ensure that agricultural products destined for U.S. ports-of-entry do
not present a risk to U.S. agriculture. APHIS engages in cooperative
programs in foreign countries to control pests of imminent concern to
the United States. APHIS also certifies plants and plant products for
export and regulates imports and exports of designated endangered plant
species. The 2006 Budget proposes significant increases to enhance
overseas surveillance and eradication efforts and to identify exotic
animal diseases more effectively.

Plant and animal health monitoring.--The Agency conducts programs to
assess animal and plant health and to detect endemic and exotic diseases
and pests. The plant and animal health monitoring programs are primarily
cooperative efforts of the Federal and State governments, and industry.
The Agency also carries out surveys in cooperation with the States to
detect harmful plant and animal pests and diseases and to determine if
there is a need for pest eradication programs. The 2006 Budget includes
significant increases in monitoring programs to enhance agricultural
defense. The request includes $5,290,000 for the mandated select agents
program.

Pest and disease management programs.--The Agency carries out
programs to control and eradicate infestations and animal diseases that
threaten the United States; to reduce agricultural losses caused by
predatory animals, birds, and rodents; to provide technical assistance
to States, counties, farmer or rancher groups, and foundations; and to
ensure compliance with interstate movement and disease control
regulations. Interstate shipments of plants, livestock, and related
materials are monitored and regulated to prevent the spread of disease.
APHIS protects agriculture from detrimental animal predators through
identification, demonstration, and application of the most appropriate
methods of control. The Budget implements a consistent set of cost-share
criteria among Federal and non-Federal partners to respond to a plant
and animal infestation. In addition, the 2006 Budget includes increases
related to diseases such as citrus canker, emerald ash borer, low
pathogenic avian influenza, scrapie and tuberculosis.

Animal care.--The Agency conducts regulatory activities which ensure
the humane care and handling of animals used in research, exhibition, or
the wholesale pet trade. The Agency is also responsible for
administering the Horse Protection Act, which prohibits the showing,
selling, or exhibition of sore horses.

Scientific and technical services.--APHIS develops methods to
control animals and pests that are detrimental to agriculture, other
wildlife, and public safety. The agency regulates genetic research to
guard against the release of potentially harmful organisms into the
environment. APHIS also conducts veterinary diagnostic laboratory
activities and biologic regulatory enforcement to ensure that the
products developed for combatting disease are potent, safe, and pure. It
also provides and directs technology development in coordination with
other groups in APHIS and Plant Protection and Quarantine (PPQ)
officials to support PPQ programs of the Agency and its cooperators at
the State, national, and international levels. The 2006 Budget includes
funding to enhance agricultural defense and for biotech regulatory
services.

The 2006 Budget also proposes significant increases to continue
enhanced biosecurity efforts and laboratory network activities
implemented with 2002 emergency supplemental funds in response to the
September 11, 2001, terrorist attacks.

Funding to support inspections of people, cargo and transport from
overseas related to agricultural products and a portion of funds for the
Plum Island Animal Disease Center is included in the budget of the
Department of Homeland Security.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 302 307 300
11.3 Other than full-time permanent 5 6 6
11.5 Other personnel compensation.. 6 5 5
--------- --------- ----------
11.9 Total personnel compensation 313 318 311
12.1 Civilian personnel benefits..... 91 92 91
13.0 Benefits for former personnel... 2 2 2
21.0 Travel and transportation of
persons....................... 35 33 44
22.0 Transportation of things........ 9 9 11

[[Page 86]]

23.1 Rental payments to GSA.......... 4 4 5
23.2 Rental payments to others....... 1 2 2
23.3 Communications, utilities, and
miscellaneous charges......... 25 22 22
24.0 Printing and reproduction....... 3 4 4
25.2 Other services.................. 365 350 334
26.0 Supplies and materials.......... 67 61 64
31.0 Equipment....................... 34 38 38
32.0 Land and structures............. 1
41.0 United States-Colombia
Commission to Prevent Foot-
and-Mouth Disease............. 1 1 1
41.0 Joint Screwworm eradication
programs...................... 9 9 9
41.0 Joint Commission on the
Mediterranean Fruit Fly....... 6 6 6
41.0 Other grants, subsidies, and
contributions................. 81 74 71
42.0 Other insurance claims and
indemnities................... 14 19 7
--------- --------- ----------
99.0 Direct obligations............ 1,061 1,044 1,022
99.0 Reimbursable obligations.......... 88 89 89
--------- --------- ----------
99.9 Total new obligations........... 1,149 1,133 1,111
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1600-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 5,815 5,778 6,055
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 810 833 833
---------------------------------------------------------------------------

Salaries and Expenses

(Legislative proposal, not subject to PAYGO)

In addition, such sums as may be deposited to the Animal Welfare
User Fee account may be transferred to this account, to be merged with
and available for the same purposes as this account, to remain available
until expended.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.04 Animal care....................... 11
--------- --------- ----------
10.00 Total new obligations........... 11
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 11
23.95 Total new obligations............. -11
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund).... 11
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 11
73.20 Total outlays (gross)............. -11
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 11
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 11
90.00 Outlays........................... 11
---------------------------------------------------------------------------

Legislation will be provided to allow the Department of Agriculture
to collect fees for animal welfare activities. The agency will be able
to use the fees to the extent provided in appropriation acts.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1600-2-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 9
12.1 Civilian personnel benefits....... 2
--------- --------- ----------
99.9 Total new obligations........... 11
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1600-2-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 107
---------------------------------------------------------------------------

Buildings and Facilities

For plans, construction, repair, preventive maintenance,
environmental support, improvement, extension, alteration, and purchase
of fixed equipment or facilities, as authorized by 7 U.S.C. 2250, and
acquisition of land as authorized by 7 U.S.C. 428a, [$4,967,000]
$4,996,000, to remain available until expended. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1601-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct Program Activity........... 16 14 5
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 16 14 5
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 20 9
22.00 New budget authority (gross)...... 5 5 5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 25 14 5
23.95 Total new obligations............. -16 -14 -5
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 9
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 5 5 5
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 5 7 4
73.10 Total new obligations............. 16 14 5
73.20 Total outlays (gross)............. -15 -17 -5
--------- --------- ----------
74.40 Obligated balance, end of year.. 7 4 4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 4 1 1
86.93 Outlays from discretionary
balances........................ 11 16 4
--------- --------- ----------
87.00 Total outlays (gross)........... 15 17 5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 5 5 5
90.00 Outlays........................... 15 17 5
---------------------------------------------------------------------------

The buildings and facilities account provides for construction,
repairs, preventive maintenance, and alterations, as needed, for APHIS
operated facilities, which include animal quarantine stations, border
inspection stations, sterile insect rearing facilities, and
laboratories.

The 2006 Budget proposes $5 million for this program, which consists
of repairs, alterations, preventive maintenance, and renovations for
currently owned APHIS facilities.

[[Page 87]]

Trust Funds

Miscellaneous Trust Funds

Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9971-0-7-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Receipts:
02.20 Deposits of miscellaneous
contributed funds, APHIS........ 16 14 14
Appropriations:
05.01 Miscellaneous trust funds......... -16 -14 -14
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Program Activity........... 2 14 14
--------- --------- ----------
10.00 Total new obligations........... 2 14 14
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 10 24 24
22.00 New budget authority (gross)...... 16 14 14
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 26 38 38
23.95 Total new obligations............. -2 -14 -14
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 24 24 24
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.26 Appropriation (trust fund)...... 16 14 14
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2 -9 -8
73.10 Total new obligations............. 2 14 14
73.20 Total outlays (gross)............. -13 -13 -13
--------- --------- ----------
74.40 Obligated balance, end of year.. -9 -8 -7
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 11 8 8
86.98 Outlays from mandatory balances... 2 5 5
--------- --------- ----------
87.00 Total outlays (gross)........... 13 13 13
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 16 14 14
90.00 Outlays........................... 13 13 13
---------------------------------------------------------------------------

The following services are financed by fees and miscellaneous
contributions advanced by importers, manufacturers, States,
organizations, individuals, and others:

Miscellaneous contributed funds.--Funds are received from States,
local organizations, individuals, and others and are available for plant
and animal quarantine inspection and cooperative plant and animal
disease and pest control activities (7 U.S.C. 450b, 2220). Commencing in
1979, fees were collected for the importation of commercial birds.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 6 5 5
11.5 Other personnel compensation.... 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 7 6 6
12.1 Civilian personnel benefits....... 2 3 3
21.0 Travel and transportation of
persons......................... 2 2 2
25.2 Other services.................... -10 1 1
26.0 Supplies and materials............ 1 1 1
31.0 Equipment......................... 1 1
--------- --------- ----------
99.9 Total new obligations........... 2 14 14
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9971-0-7-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 136 150 150
---------------------------------------------------------------------------

FOOD SAFETY AND INSPECTION SERVICE

Federal Funds

General and special funds:

Salaries and Expenses

For necessary expenses to carry out services authorized by the
Federal Meat Inspection Act, the Poultry Products Inspection Act, and
the Egg Products Inspection Act, including not to exceed $50,000 for
representation allowances and for expenses pursuant to section 8 of the
Act approved August 3, 1956 (7 U.S.C. 1766), [$823,760,000]
$710,717,000, of which no less than [$742,305,000] $630,031,000 shall be
available for Federal food safety inspection; and in addition,
$1,000,000 may be credited to this account from fees collected for the
cost of laboratory accreditation as authorized by section 1327 of the
Food, Agriculture, Conservation and Trade Act of 1990 (7 U.S.C. 138f):
Provided, [That no fewer than 63 full time equivalent positions above
the fiscal year 2002 level shall be employed during fiscal year 2005 for
purposes dedicated solely to inspections and enforcement related to the
Humane Methods of Slaughter Act: Provided further, That of the amount
available under this heading, notwithstanding section 704 of this Act
$3,000,000, available until September 30, 2006, shall be obligated to
include the Humane Animal Tracking System as part of the Field
Automation and Information Management System following notification to
the Committees on Appropriations, which shall include a detailed
explanation of the components of such system: Provided further,] That of
the total amount made available under this heading, no less than
$20,653,000 shall be obligated for regulatory and scientific training:
Provided further, That this appropriation shall be available pursuant to
law (7 U.S.C. 2250) for the alteration and repair of buildings and
improvements, but the cost of altering any one building during the
fiscal year shall not exceed 10 percent of the current replacement value
of the building. (7 U.S.C. 450, 1901-06; 10 U.S.C. 2306; 18 U.S.C. 1114;
21 U.S.C. 451-470, 601-624, 641-645, 661, 671-680, 691-692; 694-695;
Public Law 99-641; Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3700-0-1-554 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Receipts:
02.20 Fees, Food safety inspection user
fee account..................... 139
Appropriations:
05.00 Salaries and expenses............. -139
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 786 820 711
09.01 Reimbursable program.............. 128 120 123
--------- --------- ----------
10.00 Total new obligations........... 914 940 834
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 27 5 2
22.00 New budget authority (gross)...... 895 937 834
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 922 942 836
23.95 Total new obligations............. -914 -940 -834
23.98 Unobligated balance expiring or
withdrawn....................... -5
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 5 2 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 785 824 711

[[Page 88]]

40.35 Appropriation permanently
reduced....................... -10 -7
41.00 Transferred to other accounts... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 774 817 711
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 104 120 123
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 17
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 121 120 123
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 895 937 834
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 88 101 102
73.10 Total new obligations............. 914 940 834
73.20 Total outlays (gross)............. -884 -939 -840
73.40 Adjustments in expired accounts
(net)........................... -18
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -17
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 19
--------- --------- ----------
74.40 Obligated balance, end of year.. 101 102 96
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 837 896 799
86.93 Outlays from discretionary
balances........................ 47 43 41
--------- --------- ----------
87.00 Total outlays (gross)........... 884 939 840
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -9
88.40 Non-Federal sources........... -116 -120 -123
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -125 -120 -123
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -17
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 21
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 774 817 711
90.00 Outlays........................... 760 819 717
---------------------------------------------------------------------------

The primary objectives of the Food Safety and Inspection Service
(FSIS) are to ensure that meat, poultry, shell egg, and egg products are
wholesome, unadulterated, and properly labeled and packaged, as required
by the Federal Meat Inspection Act, the Poultry Products Inspection Act,
and the Egg Products Inspection Act. Providing adequate resources for
Federal food safety agencies is a priority of the Administration, and
the 2006 Budget proposes a $33 million increase for inspection of meat,
poultry, shell egg and egg products. This increase will cover pay cost
increases for Federal and State inspection programs, and initiatives
for: food and agriculture defense and workforce training.

FEDERALLY FUNDED INSPECTION ACTIVITIES

2004 actual 2005 est. 2006 est.
Federally inspected establishments:
Slaughter plants.................. 112 110 108
Processing plants................. 4,049 4,039 4,035
Combination slaughter and
processing plants............... 923 915 912
Talmadge-Aiken plants............. 364 360 358
Import establishments............. 135 132 130
Egg plants........................ 70 69 68
Other plants...................... 632 625 617
Federally inspected and passed
production (millions of pounds):
Meat slaughter.................... 43,611 44,000 44,000
Poultry slaughter................. 52,790 54,000 55,000
Egg products...................... 4,000 4,000 4,000
Import/export activity (millions of
pounds):
Meat and poultry imported......... 4,202 4,202 4,202
Meat and poultry exported......... 8,144 9,000 9,200
Inspection Review:
Food safety assessments........... 1,829 1,875 1,950
In-depth verification reviews..... 5 9 15
States and territories with
cooperative programs:
^a
Intrastate inspection............. 28 28 28
Talmadge-Aiken inspection......... 9 9 9
Number of slaughter and/or
processing plants (excludes
exempt plants).................. 2,100 2,100 2,100
Pounds inspected slaughter
(millions)...................... 500 500 500
Compliance activities:
Corrective action reviews......... 15,763 17,415 21,285
Corrective actions completed...... 340 378 462
Product Testing (samples analyzed):
Food chemistry.................... 1,904 1,900 1,900
Food microbiology................. 86,616 102,000 107,000
Chemical residues................. 32,527 33,000 33,000
Antibiotic residues............... 159,826 160,000 160,000
Pathology samples................. 4,977 5,000 5,000
Egg Products:
Food microbiology................. 1,705 1,700 1,700
Chemical residues................. 1,716 1,700 1,700
Consumer Education and public
outreach:
Meat and poultry hotline calls
received........................ 104,070 109,274 114,738
Website visits.................... 11,190,458 12,000,000 12,900,000
Electronic messages received...... 14,160 14,900 15,600
Publications distributed.......... 948,000 998,700 1,051,600
Personal contacts (meetings,
workshops, etc.)................ 35,399 40,400 46,300
E-mail alert service subscribers.. 1,119 17,000 25,000
Epidemiological Investigations:
Cooperative efforts with State and
public health offices........... 66 66 66
Illnesses reported and treated
^b.................... 1,689 1,689 1,689
Field Automation and Information
Management Project:
Number of computers to be provided
to federal field inspection
staff........................... 917 1,300 1,200
Number of computers to be provided
to state field inspection staff. 573 300 100
^a States with cooperative agreements which are operating
programs.
^b Data must be collected over a number of years to chart
national trends and estimate the incidence of foodborne illness and
treatment.

Summary of Budget Authority and Outlays

(in millions of dollars)

2004 actual 2005 est. 2006 est.
Enacted/requested:
Budget Authority.................. 774 817 711
Outlays........................... 759 819 717
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 139
Outlays........................... 139
------------------------------------
Total:
Budget Authority.................. 774 817 850
Outlays........................... 759 819 856
====================================

Performance Metrics

----------------------------------------------------------------------------
Identification code 12-3700-0-1-554 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Food Safety and Inspection Service:
44601 Reduction in the prevalence of
foodborne illness from meat,
poultry and egg productsIn 1997
there were 76 million illnesses
related to foodborne hazards.... 25%
44602 The prevalence of Salmonella on
raw meat and poultry products as
illustrated by: Prevalence of
Salmonella on broiler chickens
(%)............................. 11.7% 11.7% 11.7%
44603 Percentage of ready-to-eat meat
and poultry products testing
positive for Listeria
monocytogenes(Listeria is a
common bacteria that when
ingested can cause flu-like
symptoms. The................... 0.8 0.8
---------------------------------------------------------------------------

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 437 456 389
11.3 Other than full-time permanent 15 17 14
11.5 Other personnel compensation.. 22 23 20
--------- --------- ----------
11.9 Total personnel compensation 474 496 423
12.1 Civilian personnel benefits..... 151 160 140
13.0 Benefits for former personnel... 1 1 1

[[Page 89]]

21.0 Travel and transportation of
persons....................... 31 36 31
22.0 Transportation of things........ 5 5 5
23.1 Rental payments to GSA.......... 1 1 1
23.2 Rental payments to others....... 1 2 2
23.3 Communications, utilities, and
miscellaneous charges......... 10 4 3
24.0 Printing and reproduction....... 1 1 1
25.1 Advisory and assistance services 2 2 2
25.2 Other services.................. 19 22 17
25.3 Other purchases of goods and
services from Government
accounts...................... 18 23 18
25.4 Operation and maintenance of
facilities.................... 1 1 1
25.5 Research and development
contracts..................... 2 2
25.7 Operation and maintenance of
equipment..................... 1
26.0 Supplies and materials.......... 11 13 11
31.0 Equipment....................... 14 6 5
41.0 Grants, subsidies, and
contributions................. 43 44 45
42.0 Insurance claims and indemnities 1
--------- --------- ----------
99.0 Direct obligations............ 785 819 708
99.0 Reimbursable obligations.......... 128 120 123
99.5 Below reporting threshold......... 1 1 3
--------- --------- ----------
99.9 Total new obligations........... 914 940 834
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3700-0-1-554 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 9,237 9,490 7,512
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 232 236 236
---------------------------------------------------------------------------

Salaries and Expenses

(Legislative proposal, not subject to PAYGO)

In addition, such sums as may be deposited to the Food Safety
Inspection User Fee Account may be transferred to this account, to be
merged with and available for the same purposes as this account, to
remain available until expended.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 139
--------- --------- ----------
10.00 Total new obligations........... 139
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 139
23.95 Total new obligations............. -139
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund).... 139
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 139
73.20 Total outlays (gross)............. -139
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 139
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 139
90.00 Outlays........................... 139
---------------------------------------------------------------------------
-------

Legislation will be proposed to charge user fees to reimburse all
inspection beyond a primary 8 hour shift at all establishments inspected
by the Food Safety and Inspection Service (FSIS). Currently, fees to
reimburse the cost of overtime inspection required at some FSIS
inspected establishments, but not at others. The Federal Government
would continue to pay the full costs for a primary, eight hour
inspection shift.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 81
11.3 Other than full-time permanent.. 3
11.5 Other personnel compensation.... 3
--------- --------- ----------
11.9 Total personnel compensation.. 87
12.1 Civilian personnel benefits....... 24
21.0 Travel and transportation of
persons......................... 6
23.3 Communications, utilities, and
miscellaneous charges........... 2
25.2 Other services.................... 10
25.3 Other purchases of goods and
services from Government
accounts........................ 4
26.0 Supplies and materials............ 3
31.0 Equipment......................... 3
--------- --------- ----------
99.9 Total new obligations........... 139
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3700-2-1-554 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 2,000
---------------------------------------------------------------------------

Trust Funds

Expenses and Refunds, Inspection and Grading of Farm Products

Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8137-0-7-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Receipts:
02.20 Deposits of fees, Inspection and
grading of farm products, Food.. 3 3 3
Appropriations:
05.00 Expenses and refunds, inspection
and grading of farm products.... -3 -3 -3
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Program Activity........... 4 4 3
--------- --------- ----------
10.00 Total new obligations........... 4 4 3
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 1
22.00 New budget authority (gross)...... 3 3 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5 4 3
23.95 Total new obligations............. -4 -4 -3
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.26 Appropriation (trust fund)...... 3 3 3
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1 1
73.10 Total new obligations............. 4 4 3
73.20 Total outlays (gross)............. -4 -3 -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 3 3 3
86.98 Outlays from mandatory balances... 1
--------- --------- ----------
87.00 Total outlays (gross)........... 4 3 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3 3 3

[[Page 90]]

90.00 Outlays........................... 4 3 3
---------------------------------------------------------------------------

Performance Metrics

----------------------------------------------------------------------------
Identification code 12-8137-0-7-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Food Safety and Inspection Service:
44601 Reduction in the prevalence of
foodborne illness from meat,
poultry and egg productsIn 1997
there were 76 million illnesses
related to foodborne hazards.... 25%
44602 The prevalence of Salmonella on
raw meat and poultry products as
illustrated by: Prevalence of
Salmonella on broiler chickens
(%)............................. 11.7% 11.7% 11.7%
44603 Percentage of ready-to-eat meat
and poultry products testing
positive for Listeria
monocytogenes(Listeria is a
common bacteria that when
ingested can cause flu-like
symptoms. The................... 0.8 0.8
---------------------------------------------------------------------------

Under authority of the Agricultural Marketing Act of 1946, Federal
meat and poultry inspection services are provided upon request and for a
fee in cases where inspection is not mandated by statute. This service
includes: certifying products for export beyond the requirements of
export certificates; inspecting certain animals and poultry intended for
human food where inspection is not required by statute, such as buffalo,
rabbit, and quail; and inspecting products intended for animal
consumption.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 2 2 1
11.5 Other personnel compensation.... 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 3 3 2
12.1 Civilian personnel benefits....... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 4 4 3
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-8137-0-7-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 34 35 35
---------------------------------------------------------------------------

GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION

Federal Funds

General and special funds:

Salaries and Expenses

For necessary expenses to carry out the provisions of the United
States Grain Standards Act, for the administration of the Packers and
Stockyards Act, for certifying procedures used to protect purchasers of
farm products, and the standardization activities related to grain under
the Agricultural Marketing Act of 1946, [$37,299,000] $15,717,000:
Provided, That this appropriation shall be available pursuant to law (7
U.S.C. 2250) for the alteration and repair of buildings and
improvements, but the cost of altering any one building during the
fiscal year shall not exceed 10 percent of the current replacement value
of the building. (7 U.S.C. 71, 74-79, 84-87, 181-229, 1621-27;
Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2005.)

Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2400-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Receipts:
02.20 Fees, Grain inspection, packers
and stockyards user fee account. 25
Appropriations:
05.01 Salaries and expenses............. -25
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Standardization................... 4 4
00.02 Compliance........................ 5 6 7
00.03 Methods development............... 7 7 8
00.04 Packers and stockyards program.... 23 20
--------- --------- ----------
10.00 Total new obligations........... 39 37 15
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 4
22.00 New budget authority (gross)...... 36 37 15
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 40 37 15
23.95 Total new obligations............. -39 -37 -15
23.98 Unobligated balance expiring or
withdrawn....................... -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 36 37 15
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 6 10 10
73.10 Total new obligations............. 39 37 15
73.20 Total outlays (gross)............. -35 -37 -18
73.40 Adjustments in expired accounts
(net)........................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 10 10 7
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 30 31 12
86.93 Outlays from discretionary
balances........................ 5 6 6
--------- --------- ----------
87.00 Total outlays (gross)........... 35 37 18
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 36 37 15
90.00 Outlays........................... 35 37 18
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2004 actual 2005 est. 2006 est.
Enacted/requested:
Budget Authority.................. 36 37 15
Outlays........................... 35 37 18
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 25
Outlays........................... 25
------------------------------------
Total:
Budget Authority.................. 36 37 40
Outlays........................... 35 37 43
====================================

The Grain Inspection, Packers and Stockyards Administration (GIPSA)
establishes official United States standards for grain, promotes the
uniform application thereof by official inspection personnel, provides
for an official inspection system for grain, and regulates the weighing
and certification of the weight of grain shipped in interstate or
foreign commerce as authorized by the U.S. Grain Standards Act (USGSA),
as amended, and the regulations thereof, and the Agricultural Marketing
Act of 1946 (AMA).

Standardization activities include establishing and updating U.S.
grain standards, research, and developing and improving methods to
ensure the accurate and uniform application of the standards.

[[Page 91]]

The compliance activities ensure the accurate and uniform
application of the USGSA and applicable provisions of the AMA. The
compliance program functions include: (1) evaluating alleged violations
and initiating preliminary investigations; (2) initiating the
implementation of corrective actions; (3) conducting management and
technical reviews; (4) administering the designations and delegations of
State and private agencies to perform official functions and monitoring
the performance of the agencies; (5) identifying and, where appropriate,
waiving and monitoring conflicts of interest; (6) licensing personnel of
delegated States and designated agencies; (7) registering persons/firms
engaged in the business of buying grain for sale in foreign commerce,
and in the business of handling, weighing, or transporting of grain for
sale in foreign commerce; (8) responding to audits of Grain Inspection
programs; and (9) reviewing and, when appropriate, approving official
agencies' fee schedules.

The Office of International Affairs briefs foreign buyers, assesses
foreign inspection and weighing techniques, and responds to foreign
quality and quantity complaints.

An advisory committee consisting of members from the grain industry
exists to advise the Agency regarding efficient and economical
implementation of the USGSA.

The Grain Quality Improvement Act of 1986 was enacted on November
10, 1986, to improve the quality of U.S. grain by prohibiting the
introduction and reintroduction of dockage and foreign material to
grain.

The goal of the Packers and Stockyards program is to ensure the
integrity of the livestock, meat, and poultry markets and the
marketplace in order to protect producers against unfair, deceptive, or
discriminatory practices as well as those that are predatory or
monopolistic in nature. Consumers and members of the livestock, poultry,
and meat industries are also protected against unfair business practices
in the marketing of livestock, meat and poultry, and from restrictions
on competition which could unduly affect prices. The Agency also carries
out the Secretary's responsibilities under Section 1324 of the Food
Security Act of 1985 covering ``central filing systems'' established by
States for pre-notification of security interests against farm products.

MAIN WORKLOAD FACTORS

2004 actual 2005 est. 2006 est.
U.S. standards in effect at end of
year................................ 19 19 19
Standards reviews in progress....... 3 3 3
Standards reviews completed......... 3 3 3
Inspection techniques developed..... 92 40 40
On-site investigations.............. 5 4 4
Designations renewed................ 18 20 18
Registration certificates issued.... 103 105 105
Investigations...................... 1,923 1,550 1,600
Market agencies/dealers registered.. 5,679 5,700 5,700
Stockyards posted................... 1,423 1,425 1,425
Slaughtering and processing packers
subject to the Act (estimated)...... 6,000 6,000 6,000
Distributors, brokers, and dealers
subject to the Act (estimated)...... 6,800 6,800 6,800
Poultry operations subject to the
Act................................. 202 202 202

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2400-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 21 22 8
12.1 Civilian personnel benefits....... 5 5 2
21.0 Travel and transportation of
persons......................... 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 1 1
25.2 Other services.................... 9 5 3
26.0 Supplies and materials............ 1 1 1
31.0 Equipment......................... 1 2 1
--------- --------- ----------
99.9 Total new obligations........... 39 37 15
---------------------------------------------------------------------------

Personnel Summary

Salaries and Expenses

(Legislative proposal, not subject to PAYGO)

In addition, such sums as may be deposited to the Grain Inspection,
Packers and Stockyards Administration User Fee Account may be
transferred to this account, to be merged with and available for the
same purposes as this account, to remain available until expended.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Standardization................... 5
00.04 Packers and stockyards program.... 20
--------- --------- ----------
10.00 Total new obligations........... 25
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 25
23.95 Total new obligations............. -25
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund).... 25
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 25
73.20 Total outlays (gross)............. -25
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 25
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 25
90.00 Outlays........................... 25
---------------------------------------------------------------------------

Legislation will be proposed to permit the collection of fees for
grain standardization and licensing activities.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2400-2-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 14
12.1 Civilian personnel benefits....... 4
21.0 Travel and transportation of
persons......................... 1
23.3 Communications, utilities, and
miscellaneous charges........... 1
25.2 Other services.................... 4
31.0 Equipment......................... 1
--------- --------- ----------
99.9 Total new obligations........... 25
---------------------------------------------------------------------------

Personnel Summary

Public enterprise funds:

Limitation on Inspection and Weighing Services Expenses

Not to exceed $42,463,000 (from fees collected) shall be obligated
during the current fiscal year for inspection and weighing services:
Provided, That if grain export activities require additional supervision
and oversight, or other uncontrollable factors occur, this limitation

[[Page 92]]

may be exceeded by up to 10 percent with notification to the Committees
on Appropriations of both Houses of Congress. (7 U.S.C. 71, 74-79, 84-
87, 1621-27; Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
09.00 Reimbursable program.............. 37 42 42
--------- --------- ----------
10.00 Total new obligations........... 37 42 42
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 4 4 4
22.00 New budget authority (gross)...... 37 42 42
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 41 46 46
23.95 Total new obligations............. -37 -42 -42
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 4 4 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 36 42 42
69.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 1
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 37 42 42
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -4 -1 -1
73.10 Total new obligations............. 37 42 42
73.20 Total outlays (gross)............. -33 -42 -42
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. -1 -1 -1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 33 42 42
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -1
88.40 Non-Federal sources........... -35 -42 -42
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -36 -42 -42
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -2
---------------------------------------------------------------------------

The Grain Inspection, Packers and Stockyards Administration (GIPSA)
provides a uniform system for the inspection and weighing of grain.
Services provided under this system are financed through a fee supported
revolving fund. This authority has been extended through September 2005.

Fee supported programs include direct services, supervision
activities and administrative functions. Direct services include
official grain inspection and weighing by GIPSA employees at certain
export ports as well as the inspection of U.S. grain shipped through
Canada. The Agency supervises the inspection and weighing activities
performed by its own employees. The Agency also oversees the inspection
and weighing of grain performed by employees of 7 delegated States and
49 designated State and private agencies. The Agency provides an appeal
service of original grain inspections and a registration system for
grain exporting firms. Through support from the Association of American
Railroads and user fees, GIPSA conducts a railroad track scale testing
program. In addition, the agency provides grading services, on request,
for rice and grain related products under the authority of the
Agricultural Marketing Act of 1946 (AMA).

2004 actual 2005 est. 2006 est.
Export grain inspected and/or
weighed (million metric tons):
By Federal personnel.............. 76.2 80.5 84.3
By delegated States............... 29.5 31.1 32.6
Quantity of grain inspected (all
official inspections) domestically
million metric tons................. 124.6 134.3 133.2
Number of inspections and
reinspections:
By Federal personnel.............. 100,996 107,000 112,000
By delegated state/official agency
licenses........................ 1,688,141 1,779,000 1,865,000
Number of appeals................... 3,556 3,600 3,600
Number of appeals carried to the
Board of Appeals and Review......... 602 600 600
Quantity of rice inspected (million
metric tons)........................ 2.5 2.7 2.7
Quantity of rice exports (million
metric tons)........................ 3.3 3.3 3.3

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 19 22 22
11.3 Other than full-time permanent.. 1 1 1
11.5 Other personnel compensation.... 6 6 6
--------- --------- ----------
11.9 Total personnel compensation.. 26 29 29
12.1 Civilian personnel benefits....... 4 6 6
21.0 Travel and transportation of
persons......................... 1 1 1
23.1 Rental payments to GSA............ 1 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
25.2 Other services.................... 3 3 3
26.0 Supplies and materials............ 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 37 42 42
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-4050-0-3-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 372 387 387
---------------------------------------------------------------------------

AGRICULTURAL MARKETING SERVICE

Federal Funds

General and special funds:

Marketing Services

For necessary expenses to carry out services related to consumer
protection, agricultural marketing and distribution, transportation, and
regulatory programs, as authorized by law, and for administration and
coordination of payments to States, [$75,698,000] $84,114,000, including
funds for the wholesale market development program for the design and
development of wholesale and farmer market facilities for the major
metropolitan areas of the country: Provided, That this appropriation
shall be available pursuant to law (7 U.S.C. 2250) for the alteration
and repair of buildings and improvements, but the cost of altering any
one building during the fiscal year shall not exceed 10 percent of the
current replacement value of the building.
Fees may be collected for the cost of standardization activities, as
established by regulation pursuant to law (31 U.S.C. 9701). (7 U.S.C.
91-99, 136i-136l, 138-138l, 291-292, 415b-415d, 471-476, 501-508, 581-
599, 951-957, 1031-1056, 1291, 1551-56, 1621-27, 2204(b)(c), 4401-06,
6501-22; 15 U.S.C. 714-714p; 21 U.S.C. 1031-56; 26 U.S.C. 6804, 7233,
7263, 7492-93, 7701; 49 U.S.C. 1653; Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
2005.)

limitation on administrative expenses

Not to exceed [$64,459,000] $65,667,000 (from fees collected) shall
be obligated during the current fiscal year for administrative expenses:
Provided, That if crop size is understated and/or other uncontrollable
events occur, the agency may exceed this limitation by up to 10 percent
with notification to the Committees on Appropriations of both Houses of
Congress. (Agriculture, Rural Development, Food

[[Page 93]]

and Drug Administration, and Related Agencies Appropriations Act, 2005.)

Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2500-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Receipts:
02.01 Fees, Agriculture marketing
service standardization user fee
acc............................. 3
Appropriations:
05.01 Marketing services................ -3
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Market news service............. 30 31 32
00.02 Inspection and standardization.. 7 7 4
00.03 Market protection and promotion. 32 31 42
00.04 Wholesale market development.... 3 3 3
00.05 Transportation services......... 3 3 3
09.01 Reimbursable program.............. 47 67 69
--------- --------- ----------
10.00 Total new obligations........... 122 142 153
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 26 25 25
22.00 New budget authority (gross)...... 122 142 153
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 148 167 178
23.95 Total new obligations............. -122 -142 -153
23.98 Unobligated balance expiring or
withdrawn....................... -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 25 25 25
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 75 75 84
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 47 67 69
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 122 142 153
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 18 19 20
73.10 Total new obligations............. 122 142 153
73.20 Total outlays (gross)............. -123 -142 -152
73.40 Adjustments in expired accounts
(net)........................... 2 2
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 2 -1 -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 19 20 22
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 117 133 143
86.93 Outlays from discretionary
balances........................ 6 9 9
--------- --------- ----------
87.00 Total outlays (gross)........... 123 142 152
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -1 -67 -69
88.40 Non-Federal sources........... -46
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -47 -67 -69
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 75 75 84
90.00 Outlays........................... 74 75 83
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value...
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2004 actual 2005 est. 2006 est.
Enacted/requested:
Budget Authority.................. 75 75 84
Outlays........................... 76 75 83
Legislative proposal, not subject to
PAYGO:
Budget Authority.................. 3
Outlays........................... 3
------------------------------------
Total:
Budget Authority.................. 75 75 87
Outlays........................... 76 75 86
====================================

Agricultural Marketing Service activities assist producers and
handlers of agricultural commodities by providing a variety of marketing
services. These services continue to become more complex as the volume
of agricultural commodities increases, as a greater number of new
processed commodities are developed, and as the agricultural market
structure undergoes extensive changes. Marketing changes include
increased concentration in food retailing, direct buying,
decentralization of processing, growth of interregional competition,
vertical integration, and contract farming.

The individual Marketing Services activities include:

Market news service.--The market news program provides the
agricultural community with information pertaining to the movement of
agricultural products. This nationwide service provides daily reports on
the supply, demand, and price of over 700 commodities on domestic and
foreign markets.

Inspection, grading and standardization.--Nationally uniform
standards of quality for agricultural products are established and
applied to specific lots of products to: promote confidence between
buyers and sellers; reduce hazards in marketing due to misunderstandings
and disputes arising from the use of nonstandard descriptions; and
encourage better preparation of uniform quality products for market.
Grading services are provided for cotton and domestic and imported
tobacco.

Quarterly inspection of egg handlers and hatcheries is conducted to
ensure the proper disposition of shell eggs unfit for human consumption.

MARKET NEWS PROGRAM

2004 actual 2005 est. 2006 est.
Percentage of reports released on
time................................ 95% 96% 97%

COTTON AND TOBACCO USER FEE PROGRAM

2004 actual 2005 est. 2006 est.

Cotton classed (samples in millions) 18.3 20.2 17.7
Tobacco graded at auction markets
and contract delivery stations
(million pounds).................... 776 348 0
Imported tobacco inspected at
markets and ports of entry (million
kilograms).......................... 340 60 60

FEDERALLY FUNDED INSPECTION AND PROCUREMENT ACTIVITIES

2004 actual 2005 est. 2006 est.

States and Commonwealths with
cooperative agreements.............. 39 39 39
Percentage of noncomplying shell egg
lots that are reprocessed or
diverted............................ 100% 100% 100%

STANDARDIZATION ACTIVITIES

2004 actual 2005 est. 2006 est.
International and U.S. standards in
effect, end of fiscal year.......... 343 345 346
Number of commodities covered....... 146 148 148

Market protection and promotion.--This program consists of: (1) the
research and promotion programs which are designed to improve the
competitive position and expand markets for cotton, eggs and egg
products, honey, pork, beef, dairy products, potatoes, watermelons,
mushrooms, soybeans, fluid milk, popcorn, blueberries, avocado, lamb,
and peanut; (2) the Federal Seed Act; and (3) the administration of the
Capper-Volstead Act and the Agricultural Fair Practices Act.

The pesticide recordkeeping program monitors compliance of private
certified applicators with Federal regulations requiring them to keep
records of restricted pesticides used in agricultural production.

[[Page 94]]

The pesticide data program develops comprehensive, statistically
defensible information on pesticide residues in food to improve
government dietary risk procedures.

Federal seed inspectors conduct tests on seed samples to help ensure
truthful labeling of agricultural and vegetable seeds sold in interstate
commerce.

The Capper-Volstead Act and the Agricultural Fair Practices Act
protect producers against discriminatory practices by handlers, permit
producers to engage in cooperative efforts, and ensure that such
cooperatives do not engage in practices that monopolize or restrain
trade.

The national organic program certifies that organically produced
food products meet national standards.

MARKET PROTECTION AND PROMOTION ACTIVITIES

2004 actual 2005 est. 2006 est.
Pesticide data program:
Number of analyses performed...... 122,693 80,000 80,000
Percentage of sampling and
analysis goal................... 153% 100% 100%
Pesticide recordkeeping:
Number of State/Federal
Inspections conducted........... 4,883 3,700 3,800
Percentage of sampling goal
attained........................ 100% 100% 100%
Seed Act:
Interstate investigations:
Completed....................... 904 750 750
Pending......................... 485 425 425
Seed samples tested............... 1,855 2,000 2,000
Percentage of cases submitted that
are completed................... 142% 100% 100%
Plant Variety Protection Act:
Percentage of application
processing goal completed....... 100% 100% 100%
Number of applications received... 328 250 250
Certificates of protection issued. 421 325 325
Research and promotion collections
(dollars in millions)............... 455 447 452
Percentage of board budgets and
marketing plans approved within time
frame goal.......................... 93% 93% 93%

Wholesale market development.--This program is designed to enhance
the marketing of agricultural commodities in the United States by
conducting research into more efficient marketing methods for
agricultural commodities and by providing technical assistance to urban
areas interested in improving their food distribution facilities.

Transportation Services.--The activities are designed to ensure that
the Nation's transportation systems will adequately serve the needs of
agriculture and rural areas of the United States.

WHOLESALE MARKET DEVELOPMENT ACTIVITIES

2004 actual 2005 est. 2006 est.
Number of projects completed........ 10 10 10

TRANSPORTATION SERVICES ACTIVITIES

2004 actual 2005 est. 2006 est.
Number of projects completed........ 8 9 9

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 29 35 32
11.3 Other than full-time permanent 2 1 3
--------- --------- ----------
11.9 Total personnel compensation 31 36 35
12.1 Civilian personnel benefits..... 8 10 10
21.0 Travel and transportation of
persons....................... 2 1 2
23.2 Rental payments to others....... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 2 1 1
25.2 Other services.................. 6 5 16
25.3 Other purchases of goods and
services from Government
accounts...................... 20 17 16
25.7 Operation and maintenance of
equipment..................... 1 1
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 3 2 2
--------- --------- ----------
99.0 Direct obligations............ 75 75 84
99.0 Reimbursable obligations.......... 47 67 69
--------- --------- ----------
99.9 Total new obligations........... 122 142 153
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2500-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 522 534 523
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 566 626 626
---------------------------------------------------------------------------

Marketing Services

(Legislative proposal, not subject to PAYGO)

In addition, such sums as may be deposited to the Agriculture
Marketing Service Standardization User Fee Account may be transferred to
this account, to be merged with and available for the same purposes as
this account, to remain available until expended.

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.02 Inspection and standardization.. 3
--------- --------- ----------
10.00 Total new obligations........... 3
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 3
23.95 Total new obligations............. -3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund).... 3
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year..
73.10 Total new obligations............. 3
73.20 Total outlays (gross)............. -3
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3
90.00 Outlays........................... 3
---------------------------------------------------------------------------

Legislation will be proposed to permit the collection of fees for
standardization activities.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2500-2-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
25.2 Other services.................... 2
31.0 Equipment......................... 1
--------- --------- ----------
99.9 Total new obligations........... 3
---------------------------------------------------------------------------

Payments to States and Possessions

For payments to departments of agriculture, bureaus and departments
of markets, and similar agencies for marketing activities under section
204(b) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1623(b)),
[$3,847,000, of which not less than $2,500,000 shall be used to make a
grant under this heading] $1,347,000. (Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
2005.)

[[Page 95]]

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2501-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct Program Activity........... 3 10 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 3 10 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 3 10 1
23.95 Total new obligations............. -3 -10 -1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 3 10 1
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2 5 8
73.10 Total new obligations............. 3 10 1
73.20 Total outlays (gross)............. -1 -7 -7
--------- --------- ----------
74.40 Obligated balance, end of year.. 5 8 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3
86.93 Outlays from discretionary
balances........................ 1 4 7
--------- --------- ----------
87.00 Total outlays (gross)........... 1 7 7
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3 10 1
90.00 Outlays........................... 1 7 7
---------------------------------------------------------------------------

Grants are made on a matching fund basis to State departments of
agriculture to carry out specifically approved programs designed to
enhance marketing efficiency. Under this activity, specialists work with
farmers, marketing firms, and other agencies in solving marketing
problems and in using research results.

Perishable Agricultural Commodities Act Fund

Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5070-0-2-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Receipts:
02.00 Deposits, Perishable Agricultural
Commodities Act fund............ 7 8 8
Appropriations:
05.00 Perishable Agricultural
Commodities Act fund............ -7 -8 -8
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Program Activity........... 10 9 10
--------- --------- ----------
10.00 Total new obligations........... 10 9 10
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 27 24 23
22.00 New budget authority (gross)...... 7 8 8
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 34 32 31
23.95 Total new obligations............. -10 -9 -10
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 24 23 21
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.20 Appropriation (special fund).... 7 8 8
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2 3 4
73.10 Total new obligations............. 10 9 10
73.20 Total outlays (gross)............. -9 -8 -8
--------- --------- ----------
74.40 Obligated balance, end of year.. 3 4 6
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 7 8 8
86.98 Outlays from mandatory balances... 2
--------- --------- ----------
87.00 Total outlays (gross)........... 9 8 8
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 7 8 8
90.00 Outlays........................... 9 8 8
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value...
---------------------------------------------------------------------------

License fees are deposited in this special fund and are used to meet
the costs of administering the Perishable Agricultural Commodities and
the Produce Agency Acts (7 U.S.C. 491-497, 499a-499s).

The Acts are intended to ensure equitable treatment to farmers and
others in the marketing of fresh and frozen fruits and vegetables.
Commission merchants, dealers, and brokers handling these products in
interstate and foreign commerce are licensed. Complaints of violations
are investigated and violations dealt with by (a) informal agreements
between the two parties, (b) formal decisions involving payment of
reparation awards, and/or (c) suspension or revocation of license and/or
publication of the facts. Beginning October 1, 1994, an additional fee
was instituted for the filing of formal and informal complaints of
violations of the Act. The November 1995 amendments to the Perishable
Agricultural Commodities Act: (1) increased the license fee and phased
out fees for wholesale grocers and retailers by 1999; (2) provided
permanent authority to the Secretary of Agriculture to set license and
reparation complaint filing fees; and (3) repealed the 25 percent
maximum funding reserve cap.

A 1984 amendment to the Perishable Agricultural Commodities Act
requires traders to have trust assets on hand to meet their obligations
to fruit and vegetable suppliers. To preserve their trust and establish
their rights ahead of other creditors, unpaid suppliers file notice with
both the Department and their debtors that payment is due.

PERISHABLE AGRICULTURAL COMMODITIES ACT ACTIVITIES

2004 actual 2005 est. 2006 est.
Percentage of informal reparation
complaints completed within time
frame goal.......................... 94% 85% 85%

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5070-0-2-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 6 6 7
12.1 Civilian personnel benefits....... 2 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
25.3 Other purchases of goods and
services from Government
accounts........................ 2 1 1
33.0 Investments and loans............. -1
--------- --------- ----------
99.9 Total new obligations........... 10 9 10
---------------------------------------------------------------------------

Personnel Summary

[[Page 96]]

Funds for Strengthening Markets, Income, and Supply (Section 32)

(including transfers of funds)

Funds available under section 32 of the Act of August 24, 1935 (7
U.S.C. 612c), shall be used only for commodity program expenses as
authorized therein, and other related operating expenses, except for:
(1) transfers to the Department of Commerce as authorized by the Fish
and Wildlife Act of August 8, 1956; (2) transfers otherwise provided in
this Act; and (3) not more than [$15,800,000] $16,055,000 for
formulation and administration of marketing agreements and orders
pursuant to the Agricultural Marketing Agreement Act of 1937 and the
Agricultural Act of 1961. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5209-0-2-605 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ 10,348 10,724 11,593
Receipts:
02.00 30 percent of customs duties,
funds for strengthening markets,
i............................... 6,303 6,920 8,015
02.40 General fund payment, Funds for
strengthening markets, income, a 1 1
--------- --------- ----------
02.99 Total receipts and collections.. 6,303 6,921 8,016
--------- --------- ----------
04.00 Total: Balances and collections... 16,651 17,645 19,609
Appropriations:
05.00 Funds for strengthening markets,
income, and supply (section 32). -5,927 -6,052 -6,339
--------- --------- ----------
07.99 Balance, end of year.............. 10,724 11,593 13,270
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

Commodity program payments:
00.01 Child nutrition program
purchases................... 400 400 400
00.02 Emergency surplus removal..... 227 301 416
00.04 State option contract......... 5 5
00.05 Removal of defective
commodities................. 1 1
00.06 Disaster Relief............... 9
00.07 Direct Payments, Hurricane
Relief...................... 219 422
00.08 Deobligations of Prior Year
Obligations................. -6
--------- --------- ----------
00.91 Subtotal, Commodity program
payments.................... 849 1,129 822
01.01 Administrative expenses........... 25 27 28
--------- --------- ----------
01.92 Total direct program............ 874 1,156 850
09.11 Reimbursable program.............. 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 875 1,157 851
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 134 408
22.00 New budget authority (gross)...... 1,148 749 1,150
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,282 1,157 1,150
23.95 Total new obligations............. -875 -1,157 -851
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 408 299
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.20 Appropriation (special fund).... 5,927 6,052 6,339
60.36 Unobligated balance permanently
reduced....................... -163
61.00 Transferred to other accounts... -4,780 -5,231 -5,190
62.00 Transferred from other accounts. 90
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 1,147 748 1,149
69.00 Offsetting collections (cash)..... 1 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,148 749 1,150
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 41 45 45
73.10 Total new obligations............. 875 1,157 851
73.20 Total outlays (gross)............. -871 -1,157 -850
--------- --------- ----------
74.40 Obligated balance, end of year.. 45 45 46
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 695 704 405
86.98 Outlays from mandatory balances... 176 453 445
--------- --------- ----------
87.00 Total outlays (gross)........... 871 1,157 850
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -1 -1 -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,147 748 1,149
90.00 Outlays........................... 871 1,156 849
---------------------------------------------------------------------------

Under section 32 of the Act of August 24, 1935, as amended (7 U.S.C.
612c), an amount equal to 30 percent of customs receipts collected
during each calendar year is automatically appropriated for expanding
outlets for perishable, non-price supported commodities. An amount equal
to 30 percent of receipts collected on fishery products is transferred
to the Department of Commerce. Most of the funds are transferred to the
Food and Nutrition Service and are used to purchase commodities under
section 6 of the National School Lunch Act and other authorities
specified in the child nutrition appropriation. If unforeseen commodity
surpluses should develop, unobligated reserve balances are available for
surplus removal.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 12 13 15
12.1 Civilian personnel benefits..... 3 4 4
21.0 Travel and transportation of
persons....................... 1 1 1
22.0 Transportation of things........ 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
25.2 Other services.................. 4 4 4
25.3 Other purchases of goods and
services from Government
accounts...................... 2 2 2
25.7 Operation and maintenance of
equipment..................... 1 1 1
26.0 Supplies and materials: Grants
of commodities to States...... 849 1,128 820
31.0 Equipment....................... 1 1
--------- --------- ----------
99.0 Direct obligations............ 874 1,156 850
99.0 Reimbursable obligations.......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 875 1,157 851
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-5209-0-2-605 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 158 179 179
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 13 13 13
---------------------------------------------------------------------------

Trust Funds

Expenses and Refunds, Inspection and Grading of Farm Products

Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8015-0-7-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ 4 3 3
Receipts:
02.20 Deposits of fees, inspection and
grading of farm products, AMS... 124 118 121
02.40 Payments from general fund, Wool
research, development, and prom. 2 2 2
--------- --------- ----------

[[Page 97]]

02.99 Total receipts and collections.. 126 120 123
--------- --------- ----------
04.00 Total: Balances and collections... 130 123 126
Appropriations:
05.00 Expenses and refunds, inspection
and grading of farm products.... -127 -120 -123
--------- --------- ----------
07.99 Balance, end of year.............. 3 3 3
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Dairy products.................... 6 6 6
00.02 Fruits and vegetables............. 56 54 54
00.03 Meat grading...................... 24 23 23
00.04 Poultry products.................. 29 25 28
00.05 Miscellaneous agricultural
commodities..................... 12 12 12
--------- --------- ----------
10.00 Total new obligations........... 127 120 123
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 51 51 52
22.00 New budget authority (gross)...... 127 121 124
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 178 172 176
23.95 Total new obligations............. -127 -120 -123
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 51 52 53
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.26 Appropriation (trust fund)...... 127 120 123
62.00 Transferred from other accounts. 1 1
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 127 121 124
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 17 15 14
73.10 Total new obligations............. 127 120 123
73.20 Total outlays (gross)............. -129 -121 -128
--------- --------- ----------
74.40 Obligated balance, end of year.. 15 14 9
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 127 116 119
86.98 Outlays from mandatory balances... 2 5 9
--------- --------- ----------
87.00 Total outlays (gross)........... 129 121 128
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 127 121 124
90.00 Outlays........................... 129 121 128
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value...
---------------------------------------------------------------------------

Expenses and refunds, inspection and grading of farm products.--The
commodity grading programs provide grading, examination, and
certification services for a wide variety of fresh and processed food
commodities using federally approved grade standards and purchase
specifications. Commodities graded include poultry, livestock, meat,
dairy products, and fresh and processed fruits and vegetables. These
programs use official grade standards which reflect the relative quality
of a particular food commodity based on laboratory testing and
characteristics such as taste, color, weight, and physical condition.
Producers voluntarily request grading and certification services which
are provided on a fee for service basis.

WORKLOAD INDICATORS

2004 actual 2005 est. 2006 est.
Weighted average cost per cwt. (1990
index).............................. $0.08 $0.08 $0.08

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 66 60 63
11.3 Other than full-time permanent 6 5 5
11.5 Other personnel compensation.. 10 9 9
--------- --------- ----------
11.9 Total personnel compensation 82 74 77
12.1 Civilian personnel benefits..... 23 17 17
13.0 Benefits for former personnel... 1 1 1
21.0 Travel and transportation of
persons....................... 6 7 7
22.0 Transportation of things........ 1
23.2 Rental payments to others....... 2 2 2
23.3 Communications, utilities, and
miscellaneous charges......... 2 2 2
24.0 Printing and reproduction....... 1 1
25.2 Other services.................. 12 10 10
25.3 Other purchases of goods and
services from Government
accounts...................... 3 2 2
26.0 Supplies and materials.......... 2 2 2
31.0 Equipment....................... 2 2
41.0 Grants, subsidies, and
contributions................. 2
--------- --------- ----------
99.0 Direct obligations............ 136 120 123
33.0 Allocation Account: Investments
and loans....................... -9
--------- --------- ----------
99.9 Total new obligations........... 127 120 123
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-8015-0-7-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 1,502 1,536 1,554
---------------------------------------------------------------------------

Milk Market Orders Assessment Fund

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Administration.................... 43 39 39
09.02 Marketing service................. 6 5 5
--------- --------- ----------
10.00 Total new obligations........... 49 44 44
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 49 44 44
23.95 Total new obligations............. -49 -44 -44
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 49 44 44
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 5
73.10 Total new obligations............. 49 44 44
73.20 Total outlays (gross)............. -54 -44 -44
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 49 44 44
86.98 Outlays from mandatory balances... 5
--------- --------- ----------
87.00 Total outlays (gross)........... 54 44 44
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -49 -44 -44
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 5
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 2 1

[[Page 98]]

92.02 Total investments, end of year:
Federal securities: Par value... 1
---------------------------------------------------------------------------

The Secretary of Agriculture is authorized by the Agricultural
Marketing Agreement Act of 1937, as amended--under certain conditions--
to issue Federal milk marketing orders establishing minimum prices which
handlers are required to pay for milk purchased from producers. The
Secretary has reduced the number of milk marketing orders from 31 to 11,
consistent with the 1996 Farm Bill authorities.

Market administrators are appointed by the Secretary and are
responsible for carrying out the terms of specific marketing orders.
Their operating expenses, partly financed by assessments on regulated
handlers and partly by deductions from producers, are reported in these
schedules. These non-Federal funds are collected locally, deposited in
local banks, and disbursed directly by the market administrator.

Expenses of local offices are met from an administrative fund and a
marketing service fund, which are prescribed in each order. The
administrative fund is derived from prorated handler assessments. The
marketing service fund of the individual order disseminates market
information to producers who are not members of a qualified cooperative.
It also provides for the verification of the weights, sampling, and
testing of milk from these producers. The cost of these services is
borne by such producers.

The maximum rates for administrative assessment and for marketing
services are set forth in each order and adjustments below these rates
are made from time to time upon recommendations by the market
administrator and upon approval of the Agricultural Marketing Service to
provide reserves at about a 6-month operating level. Upon termination of
any order, the statute provides for distributing the proceeds from net
assets pro rata to contributing handlers or producers, as the case may
be.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8412-0-8-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 30 28 28
12.1 Civilian personnel benefits....... 7 6 6
21.0 Travel and transportation of
persons......................... 3 2 2
23.2 Rental payments to others......... 3 3 3
23.3 Communications, utilities, and
miscellaneous charges........... 2 2 2
25.2 Other services.................... 1 1 1
26.0 Supplies and materials............ 1 1 1
31.0 Equipment......................... 2 1 1
--------- --------- ----------
99.9 Total new obligations........... 49 44 44
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-8412-0-8-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 472 472 472
---------------------------------------------------------------------------

RISK MANAGEMENT AGENCY

Federal Funds

General and special funds:

Administrative and Operating Expenses

For administrative and operating expenses, as authorized by section
226A of the Department of Agriculture Reorganization Act of 1994 (7
U.S.C. 6933), [$72,044,000] $87,806,000: Provided, That not to exceed
$1,000 shall be available for official reception and representation
expenses, as authorized by 7 U.S.C. 1506(i). (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Program Activity........... 71 71 88
--------- --------- ----------
10.00 Total new obligations........... 71 71 88
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 71 71 88
23.95 Total new obligations............. -71 -71 -88
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 71 72 88
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 71 71 88
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 19 18 20
73.10 Total new obligations............. 71 71 88
73.20 Total outlays (gross)............. -71 -69 -83
73.40 Adjustments in expired accounts
(net)........................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 18 20 25
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 52 50 62
86.93 Outlays from discretionary
balances........................ 19 19 21
--------- --------- ----------
87.00 Total outlays (gross)........... 71 69 83
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 71 71 88
90.00 Outlays........................... 71 69 83
---------------------------------------------------------------------------

This appropriation provides funding for the administrative and
operating expenses of the Risk Management Agency (RMA). The Agricultural
Risk Protection Act (ARPA) of 2000 significantly enhanced RMA's role in
protecting the integrity of the Federal Crop Insurance program for
farmers. ARPA imposed new regulatory responsibilities and expanded the
scope of program compliance and monitoring activities. Accordingly, it
impacted on the amount and type of information RMA collects. The budget
requests additional funding and staffing to fully implement these
responsibilities.

The Federal Crop Insurance program is delivered through private
insurance companies. Certain administrative expenses incurred by the
companies are reimbursed through mandatory funding that is reflected in
the account for the Federal Crop Insurance Fund.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 37 37 41
11.3 Other than full-time permanent.. 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 38 38 42
12.1 Civilian personnel benefits....... 8 8 10
21.0 Travel and transportation of
persons......................... 2 2 2
23.2 Rental payments to others......... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
25.2 Other services.................... 17 17 30
26.0 Supplies and materials............ 2 2 1
31.0 Equipment......................... 2 2 1
--------- --------- ----------
99.9 Total new obligations........... 71 71 88
---------------------------------------------------------------------------

[[Page 99]]

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2707-0-1-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 520 568 585
---------------------------------------------------------------------------

Corporations

The following corporations and agencies are hereby authorized to
make expenditures, within the limits of funds and borrowing authority
available to each such corporation or agency and in accord with law, and
to make contracts and commitments without regard to fiscal year
limitations as provided by section 104 of the Government Corporation
Control Act as may be necessary in carrying out the programs set forth
in the budget for the current fiscal year for such corporation or
agency, except as hereinafter provided. (Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
2005.)

Public enterprise funds:

Federal Crop Insurance Corporation Fund

For payments as authorized by section 516 of the Federal Crop
Insurance Act (7 U.S.C. 1516), such sums as may be necessary, to remain
available until expended. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4085-0-3-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Indemnities....................... 2,222 2,330 2,788
00.02 A&O Reimbursements................ 859 769 781
00.03 ARPA Obligations.................. 82 76 74
00.04 Discretionary funding: ARPA
authorized data mining.......... 4
09.01 Reimbursable Program--Indemnities. 928 1,324 1,150
--------- --------- ----------
10.00 Total new obligations........... 4,091 4,499 4,797
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,854 2,057 1,124
22.00 New budget authority (gross)...... 4,294 3,566 4,313
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 6,148 5,623 5,437
23.95 Total new obligations............. -4,091 -4,499 -4,797
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 2,057 1,124 640
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 4
Mandatory:

60.00 Appropriation................... 3,366 2,242 3,159
61.00 Transferred to other accounts... -5 -5 -5
62.00 Transferred from other accounts. 5 5 5
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 3,366 2,242 3,159
69.00 Offsetting collections (cash)..... 928 1,324 1,150
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 4,294 3,566 4,313
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 220 186 64
73.10 Total new obligations............. 4,091 4,499 4,797
73.20 Total outlays (gross)............. -4,126 -4,621 -4,793
--------- --------- ----------
74.40 Obligated balance, end of year.. 186 64 68
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3
86.97 Outlays from new mandatory
authority....................... 2,806 3,566 3,624
86.98 Outlays from mandatory balances... 1,320 1,055 1,166
--------- --------- ----------
87.00 Total outlays (gross)........... 4,126 4,621 4,793
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -928 -1,324 -1,150
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3,366 2,242 3,163
90.00 Outlays........................... 3,198 3,297 3,643
---------------------------------------------------------------------------

The Federal Crop Insurance Corporation (FCIC), a wholly-owned
government corporation, provides multi-peril and catastrophic crop
insurance protection against losses from unavoidable natural events. The
Federal Crop Insurance Reform Act of 1994 (Reform Act) and the Federal
Agriculture Improvement and Reform Act of 1996 (1996 Act) brought many
changes to the program. With the reduced price support activities
promulgated by the 1996 Act, the crop insurance program is an integral
part of the broad-based safety net and includes programs involving
revenue insurance, and education in the use of futures markets to manage
risks.

Commercial insurance companies deliver crop insurance policies to
the producer in all states. For producers who obtain Catastrophic Crop
Insurance (CAT), which compensates the farmer for losses up to 50
percent of the individual's average yield at 55 percent of the expected
market price, the premium is entirely subsidized. The cost to the
producer for this type of coverage is an annual administrative fee of
$100 per crop per county.

Additional coverage is available to producers who wish to insure
crops above the 50 percent coverage level/55 percent price level.
Policyholders can elect to be paid up to 100 percent of the market price
established by FCIC for each unit of production their actual yield is
less than the individual yield guarantee. Premium rates for additional
coverage depend on the level of coverage of protection selected and vary
from crop to crop and county to county. Producers are assessed a fee of
$30 per crop, per county, in addition to a share of premium. The
additional levels of insurance coverage are more attractive to farmers
due to availability of optional units, other policy provisions not
available with CAT coverage, and the ability to obtain a level of
protection that permits them to use crop insurance as loan collateral
and to achieve greater financial security.

As mandated by the 1996 Act, revenue insurance programs are
available under which producers of wheat, certain feed grains, soybeans,
rice, and cotton are protected against loss of revenue stemming from low
prices, poor yields, or a combination of both. Indemnities are due when
any combination of yield and price result in revenue that is less than
the revenue guarantee. Revenue protection for all products is provided
by extending traditional multi-peril crop insurance protection, based on
actual production history, to include price variability. These programs
all seek to help ensure a certain level of annual income and are offered
through private insurance companies. FCIC is also piloting an Adjusted
Gross Revenue (AGR) program, which is designed to insure a portion of a
producer's gross revenue based on their Schedule F Farm and income tax
reports.

The Adjusted Gross Revenue-Lite (AGR-Lite) insurance plan was
approved in late 2002 and offered for sale in 2003. This product was
submitted to FCIC through Section 508(h) of the Act and was authorized
by ARPA. AGR-Lite covers whole farm revenue up to $250,000, including
revenue from animals and animal products. AGR-Lite covers the adjusted
gross revenue from the whole farm based on five years of tax forms and a
farm plan. AGR-Lite initially began as a pilot in Pennsylvania and was
expanded to include Alaska (selected counties), Connecticut, Delaware,
Idaho, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New
York (selected counties), North Carolina, Oregon, Pennsylvania (except
Philadelphia County), Rhode Island, Vermont, Washington, and West
Virginia.

During 2004, RMA awarded over $23 million in projects, as authorized
by ARPA, to accomplish many of the research and development mandates
required by ARPA. These projects were awarded to public and private
entities, including a pool

[[Page 100]]

of contractors in a base research and development contract that was
initiated with a period of performance through September 30, 2004. On
November 15, 2001, the Board approved two livestock pilot programs--
Livestock gross margin and Livestock risk protection--as allowed by
ARPA. The pilot livestock programs cover swine in the State of Iowa and
were made available beginning in 2002.

RMA continues to improve and update the terms and conditions of all
crop insurance policies, which better clarifies and defines the
insurance protection provided by the insurance policies and the duties
and responsibilities of the policyholder and insurance provided.

In crop year 2004, 221 million acres were insured, with an estimated
$4,193 million in total premium income, including $2,481 million in
premium subsidy.

The Corporation's budget is presented in accordance with generally
accepted accounting principles, the Financial Accounting Standards Board
(FASB) Statement No. 60, ``Accounting and Reporting by Insurance
Enterprises,'' and Statement No. 5, ``Accounting for Contingencies.''

ARPA provided RMA with mandatory funding to implement data mining
and data warehousing to improve compliance and integrity in the crop
insurance program. It is estimated that in its first year of operation,
data mining prevented nearly $94 million in improper payments and helped
recover nearly $35 million in improper indemnities. However, the
authority to use mandatory funding for data mining expires in 2005.
Therefore, the 2006 Budget includes language to provide $3.6 million to
continue data mining and data warehousing activities.

Additionally, the 2006 Budget proposal would tie direct farm
payments to the purchase of crop insurance. This change will ensure that
all farmers growing the major commodity corps (e.g. wheat, corn,
soybeans, and cotton) will have insurance coverage, ensuring that a
farmer's revenue loss in a disaster will not be greater than 50 percent.
As part of this proposal, the Administration includes changes to the
Crop Insurance program that will reduce the premium subsidies to the
farmers as well as the subsidies in total to the participating insurance
companies. These changes will allow farmers to become more efficient in
their risk management and companies to deliver crop insurance in a more
efficient manner. The government will also realize savings of $140
million beginning in 2007 as a result of these efficiencies, and the
need for ad-hoc disaster payments will be reduced.

The following table compares the scope of the insurance operations
planned for 2006. Amounts in the 2004 column are as of September 30,
2004, and pertain to the 2004 crop year.

2004 2005 2006
crop year crop year crop year
estimate estimate estimate
Number of States.................... 50 50 50
Number of counties.................. 3,067 3,066 3,066
Insurance in force (millions)....... 40,692 40,032 41,336
Insured acreage (millions).......... 221 222 220
====================================
Producer premium (millions)\1\...... $1,712 $1,466 $1,508
Premium subsidy (millions)\1\....... $2,481 $2,164 $2,214
------------------------------------
Total premium (millions)\1\... $4,193 $3,630 $3,722
====================================
Indemnities (millions)\1\........... $3,521 $3,903 $4,001
Loss ratio.......................... .84 1.075 1.075
====================================

\1\ Includes amounts that will appear on the books of the reinsured
companies. The Corporation records will only reflect the net reinsurance
income and net reinsurance loss.

Financing.--The Corporation is authorized under the Federal Crop
Insurance Act, as amended, to use funds from the issuance of capital
stock which provides working capital for the Corporation.

Receipts, which are for deposit to this fund, come mainly from
premiums paid by farmers. The principal payments from this fund are for
indemnities to insured farmers, and administrative expenses for approved
insurance providers.

Premium subsidies are authorized by section 508(b) of the Federal
Crop Insurance Act, as amended, and are received through appropriations.

PREMIUM AND SUBSIDY

[In millions of dollars]

2004 2005 2006
fiscal year fiscal year fiscal year
actual estimate estimate
Premiums:
Additional coverage premium
subsidy......................... 1,818 2,224 1,936
Catastrophic coverage--Reinsurance
premium subsidy................. 226 241 230
------------------------------------
Subtotal, premium subsidy....... 2,044 2,465 2,166
Producer premium.................. 928 1,324 1,150
------------------------------------
Total premiums................ 2,972 3,789 3,316
====================================
Indemnities:
Additional coverage............... 2,898 3,478 3,689
Catastrophic coverage--Reinsurance 252 176 249
------------------------------------
Total indemnities............. 3,150 3,654 3,938
====================================

For crop years 1948 through 2003, indemnities ($33,635 million)
exceeded premium income ($28,057 million) by $5,578 million; the loss
ratio for the period was 1.20.

The following table summarizes the insurance operations for 2004,
2005, and 2006:

NET INCOME OR LOSS (-) ON INSURANCE OPERATIONS

[In millions of dollars]

2004 2005 2006
fiscal year fiscal year fiscal year
est. est. est.
Producer premium less indemnities... -2,222 -2,330 -2,788
Interest expense, net............... 0 0 0
Delivery expenses \1\............... -859 -769 -781
Other income or expense, net........ 37 48 48
ARPA costs.......................... -46 -76 -78
Reinsurance underwriting gain (+) or
loss (-)............................ -378 -424 -367
------------------------------------
Net income or loss (-).............. -3,468 -3,551 -3,966
====================================
\1\ Figures reflect delivery expenses borne by the Fund in accordance
with the Agricultural Research, Extension and Education Reform Act of 1998,
P.L. 105-185.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4085-0-3-351

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
1101

Federal assets: Fund balances with Treasury

1,974

2,160

1206

Non-Federal assets: Receivables, net

1,152

1,570

1803

Other Federal assets: Property, plant and equipment, net

100

1999

Total assets

3,226

3,731

LIABILITIES:
2105

Federal liabilities: Other

Non-Federal liabilities:

2201

Accounts payable

112

2207

Other

3,562

3,851

2999

Total liabilities

3,677

3,936

NET POSITION:
3100

Appropriated capital

342

828

3300

Cumulative results of operations

-793

-1,033

3999

Total net position

-451

-205

4999

Total liabilities and net position

3,226

3,731

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

Object Classification (in millions of dollars)

Direct obligations:

25.2 Other services-ARPA requirements 82 76 74

[[Page 101]]

25.2 Other services.................. 859 769 781
25.2 Other Services--(Proposed
Legislation).................. 4
42.0 Insurance claims and indemnities
(reinsured buyup)............. 2,222 2,330 2,788
--------- --------- ----------
99.0 Direct obligations............ 3,163 3,175 3,647
42.0 Reimbursable obligations:
Insurance claims and indemnities 928 1,324 1,150
--------- --------- ----------
99.9 Total new obligations........... 4,091 4,499 4,797
---------------------------------------------------------------------------

FARM SERVICE AGENCY

Federal Funds

General and special funds:

Salaries and Expenses

(including transfers of funds)

For necessary expenses for carrying out the administration and
implementation of programs administered by the Farm Service Agency,
[$1,007,597,000] $1,050,875,000: Provided, That the Secretary is
authorized to use the services, facilities, and authorities (but not the
funds) of the Commodity Credit Corporation to make program payments for
all programs administered by the Agency: Provided further, That other
funds made available to the Agency for authorized activities may be
advanced to and merged with this account. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Conservation...................... 177 181 189
00.02 Income Support.................... 767 783 817
00.05 Commodity Operations.............. 39 40 45
--------- --------- ----------
03.00 Subtotal, direct program........ 983 1,004 1,051
09.01 Farm loans........................ 281 291 309
09.02 Other programs.................... 125 120 119
--------- --------- ----------
09.99 Subtotal, reimbursable program.. 406 411 428
--------- --------- ----------
10.00 Total new obligations........... 1,389 1,415 1,479
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1,389 1,415 1,479
23.95 Total new obligations............. -1,389 -1,415 -1,479
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 989 1,008 1,051
40.00 Appropriation (Hurricane
supplemental)................. 4
40.35 Appropriation permanently
reduced....................... -6 -8
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 983 1,004 1,051
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 396 411 428
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 10
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 406 411 428
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,389 1,415 1,479
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 213 153 144
73.10 Total new obligations............. 1,389 1,415 1,479
73.20 Total outlays (gross)............. -1,411 -1,424 -1,474
73.40 Adjustments in expired accounts
(net)........................... -37
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -10
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 9
--------- --------- ----------
74.40 Obligated balance, end of year.. 153 144 149
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,308 1,312 1,371
86.93 Outlays from discretionary
balances........................ 103 112 103
--------- --------- ----------
87.00 Total outlays (gross)........... 1,411 1,424 1,474
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -395 -381 -397
88.40 Non-Federal sources........... -11 -30 -31
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -406 -411 -428
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -10
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 10
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 983 1,004 1,051
90.00 Outlays........................... 1,005 1,013 1,046
---------------------------------------------------------------------------

The Farm Service Agency (FSA) was established October 3, 1994,
pursuant to the Federal Crop Insurance Reform and Department of
Agriculture Reorganization Act of 1994, P.L. 103-354. The Department of
Agriculture Reorganization Act of 1994 was amended on April 4, 1996, by
the Federal Agriculture Improvement and Reform Act of 1996 (1996 Act),
P.L. 104-127. The FSA administers a variety of activities, such as farm
income support programs through various loans and payments; the
Conservation Reserve Program (CRP); the Emergency Conservation Program;
the Hazardous Waste Management Program; the Commodity Operation Programs
including the warehouse examination function; farm ownership, farm
operating, emergency disaster, and other loan programs; price support
and production control programs for tobacco and peanuts; and the
Noninsured Crop Disaster Assistance Program (NAP), which provides crop
loss protection for growers of many crops for which crop insurance is
not available. The Agency also assists in the administration of several
conservation cost-share programs financed by the Commodity Credit
Corporation (CCC), including the Grasslands Reserve Program (GRP). In
addition, FSA currently provides certain administrative support services
to the Foreign Agricultural Service (FAS) and to the Risk Management
Agency (RMA).

This consolidated administrative expenses account includes funds to
cover expenses of programs administered by, and functions assigned to,
the Agency. The funds consist of a direct appropriation, transfers from
program loan accounts under credit reform procedures, user fees, and
advances and reimbursements from other sources. This is a consolidated
account for administrative expenses of national, regional, State, and
county offices.

USDA's FSA, Natural Resources Conservation Service (NRCS), and Rural
Development (RD) offices act as separate franchises, with offices often
located adjacent to each other. Prior efforts to improve the efficiency
of USDA's county-based offices have resulted in significant co-location,
and introduction of new information technology to simplify customer
transactions.

During 2003 FSA also began to consolidate loan servicing functions
such as billings and mass mailings and is in the process of implementing
an interactive voice response system to handle routine information
requests from borrowers. These efforts will help improve customer
service while also reducing annual costs to the Government. However, the
separate hierarchical structures at State, regional, and headquarter
levels are set in law, and this hinders further attempts to achieve
additional efficiencies.

Farm programs.--These programs provide an economic safety net
through farm income support to eligible producers, cooperatives, and
associations to help improve the economic stability and viability of the
agricultural sector and to ensure the production of an adequate and
reasonably priced supply of food and fiber. Objectives of the Agency
include providing direct and counter-cyclical payments, providing
marketing as

[[Page 102]]

sistance loans and loan deficiency payments enabling recipients to
continue farming operations without marketing their product immediately
after harvest, stabilizing the price and production of tobacco through
2005, and providing a financial assistance safety net to eligible
producers when natural disasters result in a catastrophic loss of
production or prevent planting of noninsured crops, and timely approval
of crop prices, average yields, and payment factors for the Noninsured
Crop Disaster Assistance Program (NAP).

Farm program activities include the following functions dealing with
the administration of programs carried out through the farmer committee
system of the FSA: (a) developing program regulations and procedures;
(b) collecting and compiling basic data for individual farms; (c)
establishing individual farm allotments for farm planting history; (d)
notifying producers of established allotments and farm planting
histories; (e) establishing individual farm allotments and determining
farm marketing quotas for tobacco through 2005; (f) conducting
referendums and certifying results; (g) accepting farmer certifications
and checking compliance for specific purposes; (h) issuing marketing
cards so that production from the allotted acreage can be marketed
without penalty; (i) processing commodity loan documents and issuing
checks; (j) processing direct and counter-cyclical payments and issuing
checks; (k) certifying payment eligibility and monitoring payment
limitations; and (l) processing farm storage facility loans and issuing
checks.

Conservation and environment.--These programs assist agricultural
producers and landowners in achieving a high level of stewardship of
soil, water, air, and wildlife resources on America's farmland and
ranches while protecting the human and natural environment. Objectives
of the Agency include improving environmental quality, protecting
natural re- sources, and enhancing habitat for fish and wildlife,
including threatened and endangered species, providing Emergency
Conservation Program funding for farmers and ranchers to rehabilitate
damaged farmland and for carrying out emergency conservation measures
during periods of severe drought or flooding, protecting the public
health of communities through implementation of the Hazardous Waste
Management Program, and implementing administrative processes and
procedures for contracting, financial reporting, and other financial
operations. This activity includes: (a) processing producer requests for
conservation cost-sharing and issuing conservation reserve rental
payments; and (b) issuing checks for other conservation programs.

Commodity operations.--This activity includes: (a) overall
management of CCC-owned commodities; (b) purchasing commodities; (c)
donating commodities; (d) selling commodities; (e) accounting for loans
and commodities; and (f) commercial warehouse activities, which include
improving the effectiveness and efficiency of FSA's commodity
acquisition, procurement, storage, and distribution activities to
support domestic and international food assistance programs and
administering the U.S. Warehouse Act (USWA). The Agency provides for the
examination of warehouses licensed under the USWA and non-licensed
warehouses storing CCC-owned or pledged commodities. Examiners perform
periodic examinations of the facilities and the warehouse records to
ensure protection of depositors against potential losses of the stored
commodities and to ensure compliance with the USWA and any CCC storage
agreements.

Farm loans (reimbursable).--Provides for administering the direct
and guaranteed loan programs covered under the Agricultural Credit
Insurance Fund (ACIF). Objectives of the Agency include improving the
economic viability of farmers and ranchers, reducing losses in direct
loan programs, responding to loan making and servicing requests, and
maximizing financial and technical assistance to under-served groups.
Activities include reviewing applications, servicing the loan portfolio,
and providing technical assistance and guidance to borrowers. Funding
for farm loan administrative expenses is transferred to this
consolidated account from the ACIF. Appropriations representing subsidy
amounts necessary to support the individual program loan levels under
Federal Credit Reform are made to the ACIF account.

Other reimbursable activities.--FSA collects a fee or is reimbursed
for performing a variety of services for other Federal agencies, CCC,
industry, and others, including certain administrative support services
for the Risk Management Agency and the Foreign Agricultural Service, and
for county office services provided to Federal and non-Federal entities,
including a variety of services to producers.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 170 163 166
11.3 Other than full-time permanent 3 3 3
11.5 Other personnel compensation.. 5 7 7
--------- --------- ----------
11.9 Total personnel compensation 178 173 176
12.1 Civilian personnel benefits..... 45 41 41
21.0 Travel and transportation of
persons....................... 11 9 7
22.0 Transportation of things........ 3 2 2
23.3 Communications, utilities, and
miscellaneous charges......... 11 14 14
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 98 111 127
26.0 Supplies and materials.......... 5 4 4
31.0 Equipment....................... 4 3 2
41.0 Grants, subsidies, and
contributions................. 627 645 676
42.0 Insurance claims and indemnities 1 1
--------- --------- ----------
99.0 Direct obligations............ 983 1,004 1,051
99.0 Reimbursable obligations.......... 406 411 428
--------- --------- ----------
99.9 Total new obligations........... 1,389 1,415 1,479
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0600-0-1-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 2,472 2,134 2,122
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 3,411 3,364 3,352
---------------------------------------------------------------------------

State Mediation Grants

For grants pursuant to section 502(b) of the Agricultural Credit Act
of 1987, as amended (7 U.S.C. 5101-5106), [$4,000,000] $4,500,000.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0170-0-1-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 State Mediation grants............ 4 4 4
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 4 4 4
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 4 4 4
23.95 Total new obligations............. -4 -4 -4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 4 4 4
----------------------------------------------------------------------------

[[Page 103]]

Change in obligated balances:
72.40 Obligated balance, start of year.. 3 3 3
73.10 Total new obligations............. 4 4 4
73.20 Total outlays (gross)............. -4 -4 -4
--------- --------- ----------
74.40 Obligated balance, end of year.. 3 3 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2 2 2
86.93 Outlays from discretionary
balances........................ 2 2 2
--------- --------- ----------
87.00 Total outlays (gross)........... 4 4 4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 4 4 4
90.00 Outlays........................... 4 4 4
---------------------------------------------------------------------------

This grant program is authorized by Title V of the Agricultural
Credit Act of 1987, P.L. 100-233, as amended. Originally designed to
address agricultural credit disputes, the program was expanded by the
Federal Crop Insurance Reform and Department of Agriculture
Reorganization Act of 1994 (P.L. 103-354) to include other agricultural
issues such as wetland determinations, conservation compliance, rural
water loan programs, grazing on National Forest System lands, and
pesticide use. Grants are made to States whose agricultural mediation
programs have been certified by the Farm Service Agency. A grant will
not exceed 70 percent of the total fiscal year funds that a qualifying
State requires to operate and administer its agricultural mediation
program. In no case will the total amount of a grant exceed $500,000
annually.

GRANT OBLIGATIONS

2004 actual 2005 est. 2006 est.
Number of States receiving grants... 32 34 36
Amount of grants (in millions of
dollars)............................ 3.9 4 4

Tree Assistance Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2701-0-1-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Tree Assistance Payments.......... 4
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 4
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 6
23.95 Total new obligations............. -4
23.98 Unobligated balance expiring or
withdrawn....................... -2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 12
41.00 Transferred to other accounts... -6
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 6
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 4 2
73.10 Total new obligations............. 4
73.20 Total outlays (gross)............. -2 -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 4 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 2 2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 6
90.00 Outlays........................... 2 2
---------------------------------------------------------------------------

The tree assistance program (TAP) was reauthorized by the Farm
Security and Rural Investment Act of 2002 with some modifications.

The 1999 TAP expired at the end of 2004, and all unobligated funds
were returned to Treasury.

For 2004, the Consolidated Appropriations Act, P.L. 108-199,
appropriated $12.5 million for the program in southern California.
During the fiscal year, $4 million was obligated, $6 million was
transferred to the USDA Working Capital Fund per Section 704 of P.L.
108-199, and the remaining $2 million unobligated balance will expire at
the end of FY 2009. No outlays were made during FY 2004 from funds
obligated during the fiscal year. P.L. 108-199 also provided $5 million
in Commodity Credit Corporation (CCC) funding for a program in New York.

In addition, P.L. 108-83, the Legislative Branch Appropriations Act,
provided $9.7 million in CCC funding to compensate eligible orchardists
in Michigan for losses due to fire blight.

For 2005, no appropriation was provided for TAP. However, the
following CCC funding was provided by the 2005 Military Construction
Appropriations and Emergency Hurricane Supplemental Appropriations Act,
2005: (1) such sums as necessary for assistance to eligible producers
for specified tree losses; (2) $15 million for timber losses; (3) $10
million for orchard tree losses; and (4) $8.5 million for assistance to
eligible pecan producers in designated counties.

No funding is requested for 2006.

Agricultural Conservation Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3315-0-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 4 1
22.00 New budget authority (gross)...... -4
22.10 Resources available from
recoveries of prior year
obligations..................... 3 1
22.21 Unobligated balance transferred to
other accounts.................. -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 4 1 1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 4 1 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance permanently
reduced....................... -4
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 4 1 2
73.20 Total outlays (gross)............. 2 2
73.45 Recoveries of prior year
obligations..................... -3 -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 2 4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -2
86.93 Outlays from discretionary
balances........................ -2
--------- --------- ----------
87.00 Total outlays (gross)........... -2 -2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -4
90.00 Outlays........................... -2 -2
---------------------------------------------------------------------------

This program was terminated at the beginning of 1997 in accordance
with the Federal Agriculture Improvement and Reform Act of 1996. The
objectives of the Agricultural Conservation Program (ACP) were
incorporated into the Environmental Quality Incentives Program which is
funded by the Commodity Credit Corporation and administered under the
lead of the Natural Resources Conservation Service.

The primary objective of the program was to conserve soil and water
resources. Along with annual agreements, cost sharing was authorized for
long-term agreements of 3-10 years. In 2004 a transfer of $947,623 in
unobligated funds was made to the USDA Working Capital Fund as
authorized in Section 704 of the Consolidated Appropriations Act, 2004,
P.L. 108-199. Outlays to States in 2004 totaled $110 thou

[[Page 104]]

sand. At the end of 2004, $1.123 million in unliquidated obligations
remained for ACP agreements.

Emergency Conservation Program

[For an additional amount for ``Emergency Conservation Program'',
for expenses resulting from natural disasters, $100,000,000, to remain
available until expended: Provided, That the amounts provided under this
heading are designated as an emergency requirement pursuant to section
402 of S. Con. Res. 95 (108th Congress), as made applicable to the House
of Representatives by H. Res. 649 (108th Congress) and applicable to the
Senate by section 14007 of Public Law 108-287.] (Emergency Supplemental
Appropriations for Hurricane Disasters Assistance Act, 2005.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3316-0-1-453 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 ECP payments...................... 27 100 81
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 27 100 81
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 46 31 81
22.00 New budget authority (gross)...... 12 150
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 58 181 81
23.95 Total new obligations............. -27 -100 -81
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 31 81
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 12 100
Mandatory:

62.00 Transferred from other accounts. 50
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 12 150
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 9 13 33
73.10 Total new obligations............. 27 100 81
73.20 Total outlays (gross)............. -23 -80 -65
--------- --------- ----------
74.40 Obligated balance, end of year.. 13 33 49
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 24
86.93 Outlays from discretionary
balances........................ 23 44 43
86.97 Outlays from new mandatory
authority....................... 12
86.98 Outlays from mandatory balances... 22
--------- --------- ----------
87.00 Total outlays (gross)........... 23 80 65
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 12 150
90.00 Outlays........................... 23 80 65
---------------------------------------------------------------------------

The Emergency Conservation Program (ECP) was authorized by the
Agricultural Credit Act of 1978 (16 U.S.C. 2201-05). It provides funds
for sharing the cost of emergency measures to deal with cases of severe
damage to farmlands and rangelands resulting from natural disasters.

Title VIII of the 2001 Agriculture Appropriations Act, P.L. 106-387,
provided $80 million for the Emergency Conservation Program. This
funding is available until expended. No funding was provided in 2002
through 2004 for a nationwide ECP. However, the Consolidated
Appropriations Act, 2004, P.L. 108-199, provided $12 million to repair
damage caused by wildfire in southern California. The program continued
to operate nationwide using unobligated funds carried forward from 2001
and recoveries throughout the three fiscal years. Under the 2004
program, cost-sharing and technical assistance were provided in 34
States and one territory to treat farmlands damaged by drought, floods,
ice storms, tornadoes, and other natural disasters. Outlays to States in
FY 2004 totaled $23 million, including $61 thousand for wildfire damage
in California.

The Emergency Hurricane Supplemental Appropriations Act, 2005, P.L.
108-324, provided an additional $150 million for ECP ($100 million in
direct appropriation and $50 million transferred from the Commodity
Credit Corporation). These funds are available until expended.

The 2006 Budget proposes no funding for this program.

Credit accounts:

Agricultural Credit Insurance Fund Program Account

(including transfers of funds)

For gross obligations for the principal amount of direct and
guaranteed farm ownership (7 U.S.C. 1922 et seq.) and operating (7
U.S.C. 1941 et seq.) loans, Indian tribe land acquisition loans (25
U.S.C. 488), emergency insured loans (42 U.S.C. 5121 et seq.), and boll
weevil loans (7 U.S.C. 1989), to be available from funds in the
Agricultural Credit Insurance Fund, as follows: farm ownership loans,
[$1,610,000,000] $1,600,000,000, of which $1,400,000,000 shall be for
guaranteed loans and [$210,000,000] $200,000,000 shall be for direct
loans; operating loans, [$2,035,000,000] $2,116,253,000, of which
[$1,100,000,000] $1,200,000,000 shall be for unsubsidized guaranteed
loans, [$285,000,000] $266,253,000 shall be for subsidized guaranteed
loans and $650,000,000 shall be for direct loans; Indian tribe land
acquisition loans, $2,000,000; emergency insured loans, $25,000,000 to
meet the needs resulting from natural disasters; and for boll weevil
eradication program loans, [$100,000,000] $60,000,000: Provided, That
the Secretary shall deem the pink bollworm to be a boll weevil for the
purpose of boll weevil eradication program loans.
For the cost of direct and guaranteed loans, including the cost of
modifying loans as defined in section 502 of the Congressional Budget
Act of 1974, as follows: farm ownership loans, [$18,655,000]
$16,960,000, of which [$7,420,000] $6,720,000 shall be for guaranteed
loans, and [$11,235,000] $10,240,000 shall be for direct loans;
operating loans, [$139,049,000] $134,316,625, of which [$35,530,000]
$36,360,000 shall be for unsubsidized guaranteed loans, [$37,934,000]
$33,281,625 shall be for subsidized guaranteed loans, and [$65,585,000]
$64,675,000 shall be for direct loans; [and] Indian tribe land
acquisition loans, [$105,000] $80,200; and emergency insured loans to
meet the needs resulting from natural disasters, $2,735,000.
In addition, for administrative expenses necessary to carry out the
direct and guaranteed loan programs, [$301,764,000] $317,137,000, of
which [$293,764,000] $309,137,000 shall be transferred to and merged
with the appropriation for ``Farm Service Agency, Salaries and
Expenses''.
Funds appropriated by this Act to the Agricultural Credit Insurance
Program Account for farm ownership and operating direct loans and
guaranteed loans may be transferred among these programs: Provided, That
the Committees on Appropriations of both Houses of Congress are notified
at least 15 days in advance of any transfer.

Dairy Indemnity Program

(including transfer of funds)

For necessary expenses involved in making indemnity payments to
dairy farmers and manufacturers of dairy products under a dairy
indemnity program, $100,000, to remain available until expended:
Provided, That such program is carried out by the Secretary in the same
manner as the dairy indemnity program described in the Agriculture,
Rural Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2001 (Public Law 106-387, 114 Stat. 1549A-12).
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2005.)

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1140-0-1-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
0101 Negative subsidies/subsidy
reestimates..................... 4 6 11
0102 Negative subsidies/subsidy
reestimates..................... 988 316
---------------------------------------------------------------------------

[[Page 105]]

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 123 99 78
00.02 Guaranteed loan subsidy........... 72 82 76
00.05 Reestimates of direct loan subsidy 84
00.06 Interest on reestimates of direct
loan subsidy.................... 72
00.07 Reestimates of guaranteed loan
subsidy......................... 8 6
00.08 Interest on reestimate of
guaranteed loan subsidy......... 1 1
00.09 Administrative expenses--salaries
and expenses.................... 286 291 309
00.10 Administrative Expenses--PLCE..... 2 8 8
--------- --------- ----------
10.00 Total new obligations........... 492 643 471
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 30 26 5
22.00 New budget authority (gross)...... 494 620 471
22.10 Resources available from
recoveries of prior year
obligations..................... 1 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 525 648 476
23.95 Total new obligations............. -492 -643 -471
23.98 Unobligated balance expiring or
withdrawn....................... -7
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 26 5 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 488 460 471
40.35 Appropriation permanently
reduced....................... -3 -4
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 485 456 471
Mandatory:

60.00 Appropriation................... 9 164
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 494 620 471
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 20 17 37
73.10 Total new obligations............. 492 643 471
73.20 Total outlays (gross)............. -491 -621 -471
73.40 Adjustments in expired accounts
(net)........................... -3
73.45 Recoveries of prior year
obligations..................... -1 -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 17 37 37
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 462 432 447
86.93 Outlays from discretionary
balances........................ 20 25 24
86.97 Outlays from new mandatory
authority....................... 9 164
--------- --------- ----------
87.00 Total outlays (gross)........... 491 621 471
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 494 620 471
90.00 Outlays........................... 491 621 471
---------------------------------------------------------------------------

Performance Metrics

----------------------------------------------------------------------------
Identification code 12-1140-0-1-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Agricultural Credit Insurance Fund Direct
Loans:
201806Percentage of farm loans targeted
to beginning and socially
disadvantaged farmers/ranchers.. 36% 36%
201807Decrese in average processing time
(measured in number of days).... 36 36
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1140-0-1-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Farm ownership.................... 142 208 200
115002Farm operating.................... 609 645 650
115003Emergency disaster................ 30 25
115004Indian tribe land acquisition..... 2 2 2
115005Boll weevil eradication........... 98 100 60
--------- --------- ----------
115901Total direct loan levels.......... 881 955 937
Direct loan subsidy (in percent):
132001Farm ownership.................... 22.08 5.35 5.12
132002Farm operating.................... 14.42 10.09 9.95
132003Emergency disaster................ 13.83 12.94 10.94
132004Indian tribe land acquisition..... -0.78 5.27 4.01
132005Boll weevil eradication........... -6.07 -5.68 -18.09
--------- --------- ----------
132901Weighted average subsidy rate..... 13.32 7.40 7.14
Direct loan subsidy budget authority:
133001Farm ownership.................... 31 11 10
133002Farm operating.................... 88 65 65
133003Emergency disaster................ 4 3
133004Indian tribe land acquisition.....
133005Boll weevil eradication........... -6 -6 -11
--------- --------- ----------
133901Total subsidy budget authority.... 117 70 67
Direct loan subsidy outlays:
134001Farm ownership.................... 30 10 9
134002Farm operating.................... 87 64 65
134003Emergency disaster................ 4 3
134004Indian tribe land acquisition.....
134005Boll weevil eradication........... -4 -6 -11
--------- --------- ----------
134901Total subsidy outlays............. 117 68 66
Direct loan upward reestimate subsidy budget
authority:
135001Farm ownership....................
135002Farm operating.................... 4
135003Emergency disaster................
135004Indian Land Acquisition...........
135005Boll weevil eradication........... 44
135006Seed cotton.......................
135007Soil and Water.................... 4
135008Farm ownership credit sales....... 105
--------- --------- ----------
135901Total upward reestimate budget
authority....................... 157
Direct loan downward reestimate subsidy budget
authority:
137001Farm ownership.................... -291
137002Farm operating.................... -440 -143
137003Emergency disaster................ -35 -63
137004Indian tribe land acquisition.....
137005Boll weevil eradication........... -117 -68
137006Seed cotton....................... -2 -5
137007Soil and water....................
137008Farm ownership credit sales....... -48
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -933 -279
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
215001Farm ownership, unsubsidized...... 1,114 1,389 1,400
215002Farm operating, unsubsidized...... 1,017 1,091 1,200
215003Farm operating, subsidized........ 271 283 266
--------- --------- ----------
215901Total loan guarantee levels....... 2,402 2,763 2,866
Guaranteed loan subsidy (in percent):
232001Farm ownership, unsubsidized...... 0.54 0.53 0.48
232002Farm operating, unsubsidized...... 3.33 3.23 3.03
232003Farm operating, subsidized........ 12.77 13.31 12.50
--------- --------- ----------
232901Weighted average subsidy rate..... 3.10 2.91 2.66
Guaranteed loan subsidy budget authority:
233001Farm ownership, unsubsidized...... 6 7 7
233002Farm operating, unsubsidized...... 34 35 36
233003Farm operating, subsidized........ 35 38 33
--------- --------- ----------
233901Total subsidy budget authority.... 75 80 76
Guaranteed loan subsidy outlays:
234001Farm ownership, unsubsidized...... 6 6 6
234002Farm operating, unsubsidized...... 33 32 34
234003Farm operating, subsidized........ 31 39 32
--------- --------- ----------
234901Total subsidy outlays............. 70 77 72
Guaranteed loan upward reestimate subsidy
budget authority:
235001Farm ownership, unsubsidized...... 1 2
235002Farm operating, unsubsidized...... 1
235003Farm operating, subsidized........ 7 5
--------- --------- ----------
235901Total upward reestimate budget
authority....................... 9 7
Guaranteed loan downward reestimate subsidy
budget authority:
237001Farm ownership, unsubsidized...... -6 -7
237002Farm operating, unsubsidized...... -25 -28
237003Farm operating, subsidized........ -23 -3
237004Soil and Water.................... -1
--------- --------- ----------
237901Total downward reestimate subsidy
budget authority................ -55 -38
----------------------------------------------------------------------------

Administrative expense data:
351001Budget authority.................. 290 291 290

[[Page 106]]

359001Outlays from new authority........ 279 291 326
---------------------------------------------------------------------------

The Agricultural credit insurance fund program account's loans are
authorized by title III of the Consolidated Farm and Rural Development
Act, as amended.

This program account includes subsidies to provide direct and
guaranteed loans for farm ownership, farm operating, and emergency loans
to individuals. Indian tribes and tribal corporations are eligible for
Indian land acquisition loans. Boll weevil eradication loans are
available to eliminate the cotton boll weevil pest from infested areas.

As required by the Federal Credit Reform Act of 1990, this account
records, for this program, the subsidy costs associated with the direct
loans obligated and loan guarantees committed in 1992 and beyond
(including credit sales of acquired property), as well as administrative
expenses of this program. The subsidy amounts are estimated on a present
value basis; the administrative expenses are estimated on a cash basis.

Under the Dairy Indemnity Program (DIP), payments are made to
farmers and manufacturers of dairy products who are directed to remove
their milk or milk products from commercial markets because they contain
residues of chemicals that have been registered and approved by the
Federal Government, other chemicals, nuclear radiation, or nuclear
fallout. Indemnification may also be paid for cows producing such milk.

In 2004, $601 thousand was paid to producers who filed claims under
the program.

The 2006 Budget requests $100 thousand for this program.

Object Classification (in millions of dollars)

Agricultural Credit Insurance Fund Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Loan Obligations........... 881 1,132 937
00.02 Advances on Behalf of Borrowers... 2 3 3
00.03 Fees, Collateral and Other........ 3 4 4
00.04 Interest Paid to Treasury......... 277 315 315
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 1,163 1,454 1,259
08.01 Negative Subsidy.................. 6 6 11
08.02 Downward Reestimate............... 701 231
08.04 Interest on downward reestimate... 232 47
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 939 284 11
--------- --------- ----------
10.00 Total new obligations........... 2,102 1,738 1,270
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2,134 1,674 -2
22.00 New financing authority (gross)... 3,531 2,793 2,464
22.10 Resources available from
recoveries of prior year
obligations..................... 14
22.40 Capital transfer to general fund.. -235 -408
22.60 Portion applied to repay debt..... -1,668 -2,323 -1,185
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,776 1,736 1,277
23.95 Total new obligations............. -2,102 -1,738 -1,270
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1,674 -2 7
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 2,183 1,365 1,192
69.00 Offsetting collections (cash)..... 1,349 1,428 1,272
69.10 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -1
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 1,348 1,428 1,272
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 3,531 2,793 2,464
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 108 85 171
73.10 Total new obligations............. 2,102 1,738 1,270
73.20 Total financing disbursements
(gross)......................... -2,112 -1,652 -1,244
73.45 Recoveries of prior year
obligations..................... -14
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 1
--------- --------- ----------
74.40 Obligated balance, end of year.. 85 171 197
87.00 Total financing disbursements
(gross)......................... 2,112 1,652 1,244
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal Sources: Reestimate
payment from program account -157
88.00 Federal Sources: Subsidy
payment from program account -121 -74 -77
88.25 Federal Sources: Interest on
uninvested funds............ -109 -115 -115
88.40 Repayments of principal....... -918 -900 -900
88.40 Repayments of interest........ -172 -180 -180
88.40 Interest and principal
repayments--judgements...... -2 -2
88.40 Proceeds from sale of acquired
property.................... -2
88.40 Undistributed/miscellaneous... -23
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,347 -1,428 -1,272
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 1
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. -2
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 2,183 1,365 1,192
90.00 Financing disbursements........... 764 224 -28
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4212-0-3-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 881 1,132 937
--------- --------- ----------
1150 Total direct loan obligations... 881 1,132 937
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 4,545 4,448 4,456
1231 Disbursements: Direct loan
disbursements................... 899 962 937
1251 Repayments: Repayments and
prepayments..................... -927 -900 -900
Write-offs for default:

1263 Direct loans.................... -67 -54 -57
1264 Other adjustments, net.......... -2
--------- --------- ----------
1290 Outstanding, end of year........ 4,448 4,456 4,436
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from direct loans obligated in 1992 and beyond (including
credit sales of acquired property that resulted from obligations in any
year). The amounts in this account are a means of financing and are not
included in the budget totals.

[[Page 107]]

This account finances direct loans for farm ownership, farm
operating, emergency disaster, Indian land, boll weevil eradication, and
credit sales of acquired property.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4212-0-3-351

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

1,416

1,674

Investments in US securities:
1106

Receivables, net

156

Net value of assets related to
post-1991 direct loans
receivable:

1401

Direct loans receivable, gross

4,545

4,448

1402

Interest receivable

122

197

1403

Accounts receivable from foreclosed property

1405

Allowance for subsidy cost (-)

-738

-591

1499

Net present value of assets related to direct loans

3,945

4,059

1603

Net value of assets related to pre-1992 direct loans receivable and
acquired defaulted guaranteed loans receivable: Allowance for estimated
uncollectible loans and interest (-)

-80

1999

Total assets

5,361

5,809

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

4,428

5,449

2207

Non-Federal liabilities: Other

933

360

2999

Total liabilities

5,361

5,809

4999

Total liabilities and net position

5,361

5,809

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

Agricultural Credit Insurance Fund Guaranteed Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Default Claims.................... 60 55 60
00.02 Interest Assistance............... 68 110 110
00.03 Guaranteed Debt Offset/Purchases/
Settlement Expense.............. 2 5 5
00.04 Interest to Treasury.............. 2 2
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 130 172 177
08.02 Downward reestimate of subsidy.... 41 28
08.04 Downward reestimate of subsidy-
interest........................ 14 10
--------- --------- ----------
08.91 Subtotal, reestimates........... 55 38
--------- --------- ----------
10.00 Total new obligations........... 185 210 177
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 180 193 119
22.00 New financing authority (gross)... 136 136 124
22.10 Resources available from
recoveries of prior year
obligations..................... 65
22.60 Portion applied to repay debt..... -3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 378 329 243
23.95 Total new obligations............. -185 -210 -177
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 193 119 66
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 136 136 124
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 404 351 351
73.10 Total new obligations............. 185 210 177
73.20 Total financing disbursements
(gross)......................... -173 -210 -177
73.45 Recoveries of prior year
obligations..................... -65
--------- --------- ----------
74.40 Obligated balance, end of year.. 351 351 351
87.00 Total financing disbursements
(gross)......................... 173 210 177
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payments from program account. -79 -84 -72
88.25 Interest on uninvested funds.. -27 -25 -25
88.40 Fees and premiums............. -30 -27 -27
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -136 -136 -124
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... 36 74 53
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4213-0-3-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 2,402 2,763 2,866
2121 Limitation available from carry-
forward......................... 80 77
2143 Uncommitted limitation carried
forward......................... -80
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 2,402 2,840 2,866
2199 Guaranteed amount of guaranteed
loan commitments................ 2,347 2,698 2,723
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 10,086 10,224 10,473
2231 Disbursements of new guaranteed
loans........................... 2,347 2,579 2,510
2251 Repayments and prepayments........ -2,123 -2,250 -2,250
Adjustments:

2261 Terminations for default that
result in loans receivable.... -2 -2 -2
2263 Terminations for default that
result in claim payments...... -89 -78 -78
2264 Other adjustments, net.......... 5
--------- --------- ----------
2290 Outstanding, end of year........ 10,224 10,473 10,653
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 9,182 9,949 10,120
----------------------------------------------------------------------------

Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:

2310 Outstanding, start of year...... 10 15 15
2331 Disbursements for guaranteed
loan claims................... 2 2 2
2351 Repayments of loans receivable.. -2 -1 -1
2361 Write-offs of loans receivable.. -1 -1
2364 Other adjustments, net.......... 5
--------- --------- ----------
2390 Outstanding, end of year...... 15 15 15
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from loan guarantees committed in 1992 and beyond. The amounts
in this account are a means of financing and are not included in the
budget totals.

This account finances commitments made for farm ownership and
operating guaranteed loan programs.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4213-0-3-351

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

583

544

Investments in US securities:
1106

Receivables, net

1206

Non-Federal assets: Receivables, net

Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:

1501

Defaulted guaranteed loans receivable, gross

1502

Interest receivable

-2

1505

Allowance for subsidy cost (-)

-10

-12

1599

Net present value of assets related to defaulted guaranteed loans

-1

1999

Total assets

594

554

[[Page 108]]

LIABILITIES:
Federal liabilities:

2104

Resources payable to Treasury

2105

Other

Non-Federal liabilities:

2201

Accounts payable

404

351

2204

Liabilities for loan guarantees

129

162

2999

Total liabilities

594

554

4999

Total liabilities and net position

594

554

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

Agricultural Credit Insurance Fund Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.08 Loan recoverable costs............ 5 6 6
00.09 Minor Capital Improvements........ 1 1
00.10 Costs incident to acquisition of
property........................ 1 1 1
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 6 8 8
01.08 Admininstrative expenses--
Department of Justice fees...... 1 1 1
01.13 Interest assistance--guaranteed
loans........................... 6 2 2
01.14 Loss settlement expenses
guaranteed loans................ 1 1
01.17 Unclassified costs................ 1 1 1
01.18 Civil rights settlements.......... 4 4
--------- --------- ----------
01.91 Total operating expenses........ 8 9 9
--------- --------- ----------
10.00 Total new obligations........... 14 17 17
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 61
22.00 New budget authority (gross)...... 57 17 17
22.10 Resources available from
recoveries of prior year
obligations..................... 18
22.40 Capital transfer to general fund.. -61
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 75 17 17
23.95 Total new obligations............. -14 -17 -17
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 61
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 757 648 566
69.27 Capital transfer to general fund -700 -631 -549
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 57 17 17
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 18 7 10
73.10 Total new obligations............. 14 17 17
73.20 Total outlays (gross)............. -7 -14 -14
73.45 Recoveries of prior year
obligations..................... -18
--------- --------- ----------
74.40 Obligated balance, end of year.. 7 10 13
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 7 14 14
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -2 -2 -2
88.40 Rent on acquired property..... -1 -1 -1
88.40 Guaranteed loans purchased
from holders--principal..... -1 -1 -1
88.40 Interest on loans............. -198 -180 -175
88.40 Guaranteed loss recoveries.... -1 -1
88.40 Interest on judgments......... -1 -2 -2
88.40 Repayments on loans--principal -506 -421 -348
88.40 Interest shared appreciation..
88.40 Judgments--principal.......... -11 -10 -9
88.40 Shared appreciation recapture. -13 -12 -12
88.40 Sale of acquired property/
chattels.................... -14 -10 -8
88.40 Undistributed receipts........ -10 -8 -7
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -757 -648 -566
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -700 -631 -549
90.00 Outlays........................... -750 -634 -552
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4140-0-3-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 3,249 2,702 2,213
1251 Repayments: Repayments and
prepayments..................... -506 -421 -344
1261 Adjustments: Capitalized interest. 7 7 6
Write-offs for default:

1263 Direct loans.................... -80 -75 -69
1264 Other adjustments, net\1\....... 32
--------- --------- ----------
1290 Outstanding, end of year........ 2,702 2,213 1,806
---------------------------------------------------------------------------
\1\ Amounts shown are based on payment of delinquent installments,
advances on behalf of borrowers, acquired property and chattels, loans
in kind, and judgments.

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4140-0-3-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 223 168 130
2251 Repayments and prepayments........ -52 -35 -28
2263 Adjustments: Terminations for
default that result in claim
payments........................ -3 -3 -3
--------- --------- ----------
2290 Outstanding, end of year........ 168 130 99
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 160 124 94
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this account
records for the farm loan programs all cash flows to and from the
Government resulting from direct loans obligated, loan guarantees
committed, and grants made prior to 1992. New loan activity in 1992 and
beyond (including credit sales of acquired property that resulted from
obligations or commitments in any year) is recorded in corresponding
program and financing accounts. Payments to settle certain
discrimination claims against USDA may also be made from this account.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4140-0-3-351

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
1101

Federal assets: Fund balances with Treasury

1505

Net value of assets related to post-1991 acquired defaulted guaranteed
loans receivable: Allowance for subsidy cost (-)

-335

Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601

Direct loans, gross

3,249

2,702

1602

Interest receivable

573

503

1603

Allowance for estimated uncollectible loans and interest (-)

-541

-332

1604

Direct loans and interest receivable, net

3,281

2,873

1605

Accounts receivable/judgments receivable

112

113

1606

Foreclosed property

1699

Value of assets related to direct loans

3,425

3,014

1701

Defaulted guaranteed loans, gross

1999

Total assets

3,454

2,747

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

3,427

2,734

[[Page 109]]

Non-Federal liabilities:

2201

Accounts payable

2204

Liabilities for loan guarantees

2207

Other

2999

Total liabilities

3,454

2,747

4999

Total liabilities and net position

3,454

2,747

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

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4140-0-3-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
25.2 Other services.................... 6 8 8
33.0 Investments and loans............. 8 5 5
43.0 Interest and dividends............ 4 4
--------- --------- ----------
99.9 Total new obligations........... 14 17 17
---------------------------------------------------------------------------

COMMODITY CREDIT CORPORATION

Corporations

Federal Funds

Public enterprise funds:

Commodity Credit Corporation Fund

reimbursement for net realized losses

For the current fiscal year, such sums as may be necessary to
reimburse the Commodity Credit Corporation for net realized losses
sustained, but not previously reimbursed, pursuant to section 2 of the
Act of August 17, 1961 (15 U.S.C. 713a-11): Provided, That of the funds
available to the Commodity Credit Corporation under section 11 of the
Commodity Credit Corporation Charter Act (15 U.S.C 714i) for the conduct
of its business with the Foreign Agricultural Service, up to $5,000,000
may be transferred to and used by the Foreign Agricultural Service for
information resource management activities of the Foreign Agricultural
Service that are not related to Commodity Credit Corporation business.

hazardous waste management

(limitation on expenses)

For the current fiscal year, the Commodity Credit Corporation shall
not expend more than $5,000,000 for site investigation and cleanup
expenses, and operations and maintenance expenses to comply with the
requirement of section 107(g) of the Comprehensive Environmental
Response, Compensation, and Liability Act (42 U.S.C. 9607(g)), and
section 6001 of the Resource Conservation and Recovery Act (42 U.S.C.
6961). (Agriculture, Rural Development, Food and Drug Administration,
and Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Commodity purchases and related
inventory transactions.......... 3,005 4,668 3,746
00.02 Storage, transportation and other
obligations..................... 466 606 622
00.03 Export enhancement program........ 28 28
00.04 Market access program............. 116 117 141
00.05 Dairy export incentive program.... 15 6 52
00.07 Foreign market development
cooperative..................... 37 35 35
00.08 Quality Samples Program........... 1 2 3
00.10 Feed grains....................... 2,902 7,873 7,327
00.11 Wheat............................. 1,223 1,529 2,314
00.12 Rice.............................. 750 581 589
00.13 Cotton............................ 1,474 2,883 2,138
00.14 Dairy Program..................... 221 444 50
00.15 Tobacco Program................... 958 958
00.16 Peanut Program.................... 194 249 212
00.17 Wool and Mohair Program........... 12 11 11
00.18 Honey............................. 25
00.21 Dry Peas Program.................. 19 26 29
00.23 Non-Insured Assistance Program.... 124 347 326
00.24 Oilseeds Payment Program.......... 672 1,406 3,040
00.25 Marketing Loan Writeoffs.......... 114 637 537
00.27 Crop Disaster Program............. 804 2,364
00.32 Livestock Assistance.............. 130 450
00.33 State Payment Transfers........... 8
00.34 American Indian Livestock
Assistance...................... 25
00.35 Conservation reserve program (CRP) 1,786 1,847 1,926
00.46 Agricultural Management Assistance
Program......................... 1
00.47 Reimbursable Agreement/Transfers
to State and Federal Agencies... 52 56 56
00.48 Treasury.......................... 104 380 447
00.49 Other Interest.................... 7 7 7
00.52 Technical Assistance.............. 13 87 90
00.57 Agricultural Managment Assistance
Program Technical Assistance.... 1
00.58 Section 416b/FFP/GFEI/BEHT ocean
transportation.................. 122 103 79
--------- --------- ----------
01.92 Total support and related
programs...................... 14,365 27,733 24,788
09.01 Commodity loans................... 9,150 11,944 10,106
09.02 Commodities Procured--PL480 Titles
II / III Commodity Costs........ 717 500 366
09.04 P. L. 480 ocean transportation.... 838 726 545
--------- --------- ----------
09.09 Subtotal, reimbursable programs. 10,705 13,170 11,017
--------- --------- ----------
10.00 Total new obligations........... 25,070 40,903 35,805
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 39,984 40,903 35,640
22.10 Resources available from
recoveries of prior year
obligations..................... 1,665
22.22 Unobligated balance transferred
from other accounts............. 20
22.60 Portion applied to repay debt..... -16,579 -20 165
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 25,070 40,903 35,805
23.95 Total new obligations............. -25,070 -40,903 -35,805
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 190
40.35 Appropriation permanently
reduced....................... -165
41.00 Transferred to other accounts... -210
42.00 Transferred from other accounts. 20
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. -165
Mandatory:

60.00 Appropriation................... 22,748 12,456 25,690
60.47 Portion applied to repay debt... -21,111 -9,860 -23,248
61.00 Transferred to other accounts... -1,637 -2,596 -2,442
--------- --------- ----------
62.50 Appropriation (total
mandatory)..................
67.10 Authority to borrow............. 27,040 24,000 19,622
69.00 Offsetting collections (cash)..... 13,234 17,037 16,189
69.00 MARAD Cargo Preference
Reimbursements.................. 243 55 24
69.10 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -203
69.10 MARAD Cargo Preference
Reimbursements.................. -330 -189 -30
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 12,944 16,903 16,183
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 39,984 40,903 35,640
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 4,596 4,389 4,315
73.10 Total new obligations............. 25,070 40,903 35,805
73.20 Total outlays (gross)............. -24,145 -41,166 -35,923
73.45 Recoveries of prior year
obligations..................... -1,665
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 533 189 30
--------- --------- ----------
74.40 Obligated balance, end of year.. 4,389 4,315 4,227
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -165
86.97 Outlays from new mandatory
authority....................... 17,039 24,584 19,978
86.98 Outlays from mandatory balances... 7,106 16,582 16,110
--------- --------- ----------
87.00 Total outlays (gross)........... 24,145 41,166 35,923
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Sales to special activities... -717 -500 -367

[[Page 110]]

88.00 Advances from Foreign
Assistance Programs (P.L.
480)........................ -1,203 -1,196 -897
88.00 Other Revenue................. -2,858 -55 -24
88.00 Tobacco Assessments........... -958 -1,189
88.40 Sales and other proceeds...... -230 -198 -532
88.40 Interest Revenue.............. -113 -46 -117
88.40 Loans Repaid.................. -7,667 -11,369 -10,322
88.40 Commodity Certificates
Redeemed.................... -635 -2,709 -2,699
88.40 Export Credit Sales Program
Repayments.................. -29 -39 -47
88.40 Interest Revenue.............. -25 -22 -19
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -13,477 -17,092 -16,213
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 533 189 30
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 27,040 24,000 19,457
90.00 Outlays........................... 10,668 24,074 19,710
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2004 actual 2005 est. 2006 est.
Enacted/requested:
Budget Authority.................. 27,040 24,000 19,457
Outlays........................... 10,668 24,074 19,710
Legislative proposal, subject to
PAYGO:
Budget Authority.................. -587
Outlays........................... -587
------------------------------------
Total:
Budget Authority.................. 27,040 24,000 18,870
Outlays........................... 10,668 24,074 19,123
====================================

Performance Metrics

----------------------------------------------------------------------------
Identification code 12-4336-0-3-999 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct Crop Payments:
43801 Percentage of gross farm income
from government payments (%).... 6.08%
43802 Reduction in erroneous payments
(%)............................. 0.05%
Bioenergy:
100001Ethanol's share of total
transportation fuel use and
biodiesel's share of total
diesel fuel use................. .375% of to
100001Program activity and Metrics...... 0.875 % of
100002Increase in production of
biodiesel (million gallons)..... 4 4
100003Increase in production of ethanol
(million gallons)............... 200 200
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4336-0-3-999 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 312 270 232
1251 Repayments: Repayments and
prepayments..................... -29 -38 -47
1261 Adjustments: Capitalized interest. -13
--------- --------- ----------
1290 Outstanding, end of year........ 270 232 185
----------------------------------------------------------------------------

Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 9,150 11,944 10,106
--------- --------- ----------
1150 Total direct loan obligations... 9,150 11,944 10,106
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1,644 1,802 1,703
1231 Disbursements: Direct loan
disbursements................... 9,150 11,944 10,106
1251 Repayments: Repayments and
prepayments..................... -8,932 -11,369 -10,322
Write-offs for default:

1263 Direct loans.................... -18
1264 Other adjustments, net.......... -42 -674 -18
--------- --------- ----------
1290 Outstanding, end of year........ 1,802 1,703 1,469
---------------------------------------------------------------------------

The Commodity Credit Corporation (CCC) was created to: stabilize,
support, and protect farm income and prices; help maintain balanced and
adequate supplies of agricultural commodities, their products, foods,
feeds, and fibers; and help in their orderly distribution.

The Corporation's capital stock of $100 million is held by the U.S.
Treasury. Under present law, up to $30 billion may be borrowed from the
U.S. Treasury to finance operations.

Current, indefinite appropriation authority is requested to cover
all net realized losses. Appropriations to the Corporation for net
realized losses have no effect on budget authority, as they are used to
repay debt directly with the Treasury.

Budget assumptions.--The following general assumptions form the
basis for the Corporation's 2005 and 2006 budget estimates: (a) national
income will rise both in 2005 and 2006 from the present level; (b) 2005
crop production will decrease from 2004 crop levels for some
commodities; (c) generally, exports of agricultural commodities in 2006
are expected to be lower than 2005 levels; (d) yields for the 2005 crops
are based on recent averages adjusted for trends; and (e) acreage
allotments and marketing quotas will be in effect for the 2004 crops of
certain kinds of tobacco.

It is difficult to accurately forecast requirements for the year
ending September 30, 2006, since the projections are subject to complex
and unpredictable factors such as weather, other factors which affect
the volume of production of crops not yet planted, feed and food needs
here and overseas, and available dollar exchange.

In 2003, USDA announced it had reserved 2 million Conservation
Reserve Program acres for the continuous signup program. Within this
reserved amount, USDA will make a special effort to help enhance
wildlife habitat and sequester carbon by setting aside 500 thousand
acres for bottomland hardwood tree planting. In 2004, USDA further
enhanced CRP by announcing the Northern Bobwhite Quail Initiative and
additional wetland restoration initiatives. Also in 2004, the
Administration announced its commitment to full enrollment of CRP and
that USDA will offer early reenrollment and extensions of expiring
contracts. During 2004, about 275 thousand acres were signed up for
continuous practices in signup 28. Together with the 2 million acres
already enrolled, this maintains the 4-million-acre goal for continuous
signup.

The 2001 Appropriations Act authorized the Secretary to enroll
500,000 acres during 2001 and 2002 for a Farmable Wetlands Pilot Program
and required that the acreage enrolled not reduce the continuous-signup
or CREP acreage. This authorization was expanded in the 2002 Farm Bill
to include 1 million acres and all States.

A general signup was held in 2004. Approximately 1.2 million acres
were accepted in the program.

P.L. 108-498, signed into law December 23, 2004, provides
independent authority beginning October 1, 2004, for CRP funds to be
used for technical assistance.

Appropriations are made to reimburse the Corporation for net
realized losses sustained in carrying out its operations.

The 2002 Farm Bill provided a total of $176 billion for payments to
the farm sector, a 74 percent increase over the assistance the previous
Farm Bill would have provided in the absence of any additional emergency
assistance. Not all of this assistance is appropriately targeted, and
many of the programs may need to be reformed as a result of any new
multilateral long-term trade agreements. Therefore, the Administration
is proposing the following legislative changes to reduce agricultural
subsidies, promote more efficient production decisions, and extend
expiring programs:

Reducing the payment limit cap for individuals to $250,000
for crop payments, including all types of marketing loan gains, while
removing the three-entity-rule.

Basing marketing loans on historical production.

[[Page 111]]

Reducing crop and dairy payments to farmers by 5 percent.
Payments to farmers from all commodity programs (e.g. marketing loans,
direct and counter-cyclical payments) would be calculated and payments
would be reduced by 5 percent.

The dairy price support program would be required to
minimize expenditures.

A sugar marketing assessment is to be paid by sugar
processors on all processed sugar.

Extending the Milk Income Loss Compensation program for two
years.

2005 ESTIMATE

[In millions of dollars]

Program Gross
obligations
Net outlays Net realized
loss for year
Farm income, marketing assistance
loans, and price support:
Commodity loans................... 11,944 5,023 0
Feed grain payments............... 7,873 7,969 7,873
Wheat payments.................... 1,529 1,527 1,529
Rice payments..................... 581 589 581
Cotton payments................... 2,873 2,800 2,873
Export enhancement program........ 28 28 28
Other support and related......... 12,171 3,415 10,311
Other items not distributed by
program:
Interest.......................... 387 153 319
All other......................... 190 427 190
------------------------------------
Total, farm income, marketing
assistance loans, and price-
support programs............ 35,577 21,930 23,705
Conservation programs:
Conservation reserve program...... 1,937 1,937 1,937
Environmental quality incentives
program.........................
Wetlands reserve program.......... 38 38
Farmland protection program.......
Soil and water conservation
program......................... 4 4
Other conservation programs.......
------------------------------------
Total, conservation programs.... 1,937 1,979 1,979
Total, Commodity Credit
Corporation............... 37,514 23,909 25,684
------------------------------------

programs of the corporation

Price support, marketing assistance loans, and related stabilization
programs.--The Corporation conducts programs to support farm income and
prices and stabilize the market for agricultural commodities. Price
support is provided to producers of agricultural commodities through
loans, purchases, payments, and other means. This is done mainly under
the Commodity Credit Corporation Charter Act, as amended, the
Agricultural Act of 1949 (the 1949 Act), as amended, and the Farm
Security and Rural Investment Act of 2002 (the 2002 Farm Bill).

Price support is mandatory for tobacco through 2004 and dairy
products. Marketing assistance loans are mandatory for wheat, feed
grains, oilseeds, upland cotton, peanuts, and rice. Loans are also
required to be made for sugar, honey, wool, mohair, extra long staple
cotton, and the pulse crops.

One method of providing support is loans to and purchases from
producers. With limited exceptions, loans made on commodities are
nonrecourse. The commodities serve as collateral for the loan and on
maturity the producer may deliver or forfeit such collateral to satisfy
the loan obligation without further payment.

Direct purchases may be made from processors as well as producers,
depending on the commodity involved. Also, special purchases are made
under various laws for the removal of surpluses; for example, the Act of
August 19, 1958, as amended, and section 416 of the Agricultural Act of
1949, as amended.

Direct Payments and Counter-Cyclical Payments. The 2002 Farm Bill
established direct payments and counter-cyclical payments for May 2002
through 2007. The eligible commodities for both direct payments and
counter-cyclical payments are wheat, corn, grain sorghum, barley, oats,
upland cotton, rice, soybeans, other oilseeds, and peanuts.

Direct Payments are payments to producers for which payment yields
and base acres are established. The commodity payment amount is
calculated as follows: Payment Amount = specified rate payment acres
payment yield. At the option of the producer, the producer can choose to
receive advance payments (up to 50%) during the producer's selected
month. The month selected may be any month during the period beginning
on December 1 of the calendar year before the calendar year in which the
crop of the covered commodity is harvested through the month within
which the direct payment would otherwise be made.

Counter-Cyclical Payments are payments to producers for which
payment yields and base acres are established for eligible commodities
if it is determined that the effective commodity price is less than the
target commodity price. Counter-cyclical payments will be made for the
crop as soon as practicable after the end of the 12-month marketing year
for the eligible commodity. If, before the end of the 12-month marketing
year it is determined that counter-cyclical payments will be required
for the eligible commodity, producers will be provided the option to
receive partial payment of the projected counter-cyclical payment.

Marketing assessments. The 1949 Act mandated assessments for
tobacco, and the 1996 Act required such assessments for peanuts and
sugar. The 2000 Act suspended sugar marketing assessment collections
through 2001. The 2002 Farm Bill did not resume the sugar marketing
assessment collections. Tobacco marketing assessments were authorized
through crop year 1998.

Marketing assistance loans. The 2002 Farm Bill authorized producers
of eligible crops to receive non-recourse marketing assistance loans
from the government for any quantity of a loan commodity produced on the
farm by pledging their production as loan collateral. This loan shall
have a term of 9 months beginning on the first day of the first month
after the month in which the loan is made. The loan cannot be extended.
As a condition of the receipt of a marketing assistance loan, the
producer shall comply with applicable conservation requirements under
subtitle B of title XII of the Food Security Act of 1985 and applicable
wetland protection requirements under subtitle C of title XII of the Act
during the term of the loan. Producers of eligible commodities can repay
a marketing assistance loan at a rate that is the lesser of (1) the loan
rate established for the commodity plus interest; or (2) a rate that the
Secretary determines. Special rules apply to upland cotton, rice, and
extra long staple cotton. Crops eligible for marketing assistance loans
include wheat, corn, barley, oats, grain sorghum, rice, upland cotton,
soybeans, extra long staple cotton, other oilseeds, dry peas, lentils,
small chickpeas, honey, wool, and mohair.

Peanut price support program. Under the 2002 Farm Bill, peanuts
qualify for direct payments, counter-cyclical payments, marketing
assistance loans and loan deficiency payments for the 2002 through 2007
crops.

The 2002 Farm Bill terminated the marketing quota programs and
repealed price support programs. The prior quota programs stayed in
effect for the 2001 crop only, with quota buyout compensation payments
being made during fiscal years 2002 through 2006. The prior price
support programs remained in effect for the 2002 crop only,
notwithstanding any other provision of law or crop insurance policy.

The 2002 Farm Bill established marketing assistance loans for the
2002 through 2007 crops, with the loan rate for peanuts of $355 per ton.
The payment rate shall be the amount by which the established loan rate
exceeds the rate at which a loan may be repaid. The Farm Bill also
requires that for crop years 2002 through 2006 CCC will pay storage,
handling, and other associated costs to ensure proper storage of peanuts
for which a loan is made. This authority terminates beginning with the
2007 crop.

[[Page 112]]

Tobacco program. The American Jobs Creation Act of 2004, P.L. 108-
357, eliminated the program effective with the 2005 crop. In return for
losing the program, growers and quota holders will receive a buyout. The
owners of quota will be paid $7 per pound for the quota they hold. The
actual producers will be paid $3 per pound for the quota they produced.
The legislation eliminates all geographic and poundage restrictions on
tobacco production as well as price support. The buyout will be funded
by assessments on the tobacco product manufacturers and importers. The
program will cost $10.14 billion, and the growers and quota holders will
be paid over a 10-year period.

Sugar program. Sugar qualifies for price support. The 2002 Farm Bill
extended the national average sugar loan rates to cover through the 2007
crops at 18 cents per pound for raw cane sugar and 22.9 cents per pound
for refined beet sugar. Loans are available to processors of
domestically grown sugarcane and sugar beets for a term of nine months
that does not begin or extend beyond the end/beginning of a fiscal year.
The non-recourse loans are extended through the 2007 crop for processors
of domestically produced sugar beets and sugarcane including for in-
process sugar. Loans for in-process sugar have a loan rate of 80% of the
loan rate for raw cane sugar or refined beet sugar (based on the source
material used). If forfeitures occur, the processor shall convert the
in-process into final product at no cost to the CCC. Upon transfer, the
processor will receive payment based on the loan rate less 80% of raw
cane or refined beet sugar rate times the quantity of sugar transferred.
The loan program is assumed to continue through the 2012 crop. The 2002
Farm Bill did not resume the sugar marketing assessment collections but
authorized marketing allotments. The 2002 Act provides assistance for
sugar donations in the amount of 10,000 tons to compensate sugar
producers who suffer losses incurred beyond existing CCC administered
programs.

Dairy program. The 2002 Farm Bill extended the Dairy Price Support
Program from June 1, 2002 through December 31, 2007 at a rate of $9.90
per hundredweight for milk containing 3.67% butterfat. The support
program is carried out through the purchase of butter, nonfat dry milk,
and cheese at prices that enable processors to pay dairy farmers, on
average, the support price for milk. As under previous law, the
Secretary may allocate the rate of price support between the purchase
prices for nonfat dry milk and butter in a manner that minimizes CCC
expenditures or other objectives, as the Secretary considers
appropriate. Cash CCC inventory sales (with some exceptions) shall be at
any price that the Secretary determines will maximize CCC returns. The
2002 Farm Bill repealed all legislative authority for the Dairy Recourse
Loan Program but established a new Milk Income Loss Contract Program
(MILC), under which the Secretary may contract with eligible producers
up to September 30, 2005, to make monthly payments when milk prices fall
below specified levels. The Administration proposes extending the MILC
program through December 31, 2007, the duration of the 2002 Farm Bill.

Market loss assistance payments. The 2001 Appropriations Act
provided $99.8 million and the 2002 Appropriations Act provided $75
million to apple producers for market loss assistance. The 2002 Farm
Bill provided $94 million in additional assistance, increasing apple
market loss assistance to $268.8 million. The 2002 Farm Bill also
provided a $10 million grant to the state of New York for market loss
assistance to onion producers who suffered losses to onion crops during
1 or more of the 1996 through 2000 crop years.

Payment Limitations. In general, the 2002 Farm Bill revised the Food
Security Act of 1985 (7 U.S.C. 1308) for payment limitations. The total
amount of direct payments made to a person during any crop year for 1 or
more covered commodities may not exceed $40,000. The total amount of
counter-cyclical payments made to a person during any crop year for 1 or
more covered commodities may not exceed $65,000. Separate limits apply
to direct and counter-cyclical payments for peanuts. The total amount of
gains and payments that a person may receive during any crop year under
marketing assistance loan and loan deficiency payment provisions may not
exceed $75,000. Notwithstanding any other provision of law, an
individual or entity shall not be eligible to receive any benefit
described above if the average adjusted annual gross income of the
individual or entity exceeds $2,500,000, unless not less than 75 percent
of the average adjusted gross income of the individual or entity is
derived from farming, ranching, or forestry operations, as determined by
the Secretary. This shall apply during the 2003 through 2007 crop years.

Disaster Payments. The Military Construction Appropriations and
Emergency Hurricane Supplemental Appropriations Act, 2005, P.L. 108-324,
authorized more than $3 billion in financial relief for farmers,
ranchers, foresters, and other agricultural producers who incurred
losses due to weather conditions in recent years.

Noninsured Assistance Program. The Agricultural Risk Protection Act
of 2000 eliminated the area loss requirement for triggers and made other
changes. It also included a provision that all types or varieties of a
crop or commodity may be considered to be a single eligible crop for NAP
assistance.

Bioenergy Program. The 2006 President's Budget assumes CCC will
continue to make incentive payments, under the Bioenergy Program, to
ethanol, biodiesel, and other bioenergy producers to expand production
of bio-based fuels. Payments shall be made on a portion of the increase
in agricultural commodities purchased for expanded bioenergy production,
with smaller and cooperatively-owned facilities receiving higher payment
rates. This program is authorized by the CCC Charter Act. The 2002 Farm
Bill extends the program through FY 2006 at the program level of $150
million per year. The 2006 budget assumes a reduction in funding to $60
million.

Foreign Market Development and Food Assistance Programs.--

Dairy Export Incentive Program (DEIP). DEIP provides cash bonus
payments to exporters to facilitate commercial sales of U.S. dairy
products in overseas markets. Estimates of the quantity of dairy
products to be exported under DEIP and associated expenditures were
formulated within the maximum allowable expenditure and quantity levels
specified in conjunction with provisions of the Uruguay Round Agreement.
Consequently, current baseline projections assume that DEIP will not
exceed $116.6 million annually during FYs 2002-2012. Actual DEIP
subsidies are further limited on a product-by-product basis under the
Uruguay Round.

Export Enhancement Program (EEP). Current baseline projections
assume an EEP annual program level for FYs 2003-2013 will be $28
million. However, the 2002 Farm Bill authorizes funding up to $478
million annually for EEP through 2007, which will be available for EEP
programming should market conditions warrant. Actual subsidies for EEP
are further limited on a product-by-product basis under the Uruguay
Round.

Market Access Program (MAP). Under the MAP, CCC Funds are used to
reimburse participating organizations for a portion of the costs of
carrying out overseas marketing and promotional activities. The 2002
Farm Bill continued the authority for the MAP program and increased the
funding as follows: $100 million for FY 2002, $110 million for FY 2003,
$125

[[Page 113]]

million for FY 2004, $140 million for FY 2005, and $200 million for FY
2006 and 2007. The 2006 Budget assumes funding of $125 million for FY
2006.

Foreign Market Development Cooperator Program (FMD) and Quality
Samples Program. Under the FMD program, cost-share assistance is
provided to nonprofit commodity and agricultural trade associations to
support overseas market development activities that are designed to
remove long-term impediments to increased U.S. trade. The 2002 Farm Bill
increased the available funds for this program to $34.5 million for each
of fiscal years 2002 through 2007.

CCC will fund the Quality Samples Program at an authorized annual
level of $2.5 million. Under this initiative, samples of U.S.
agricultural products will be provided to foreign importers to promote a
better understanding and appreciation for the high quality of U.S.
products.

Commodity Donations. The 2002 Farm Bill authorizes the donation of
surplus commodity inventory to domestic nutrition programs. The
Corporation may also donate commodities under the authority of section
416(b) of the Agricultural Act of 1949 to carry out programs of
assistance in developing countries and friendly countries and pay costs
associated with making the commodities available. Commodities that are
acquired by CCC in the normal course of its domestic support operations
will be available for donation. The current CCC inventory has nonfat dry
milk available for donation. The Corporation may also use its funds to
furnish commodities overseas under the authority of the Food for
Progress Act of 1985; however, not more than $40 million of the funds of
the Corporation (exclusive of the costs of commodities) may be used for
each fiscal year.

The Bill Emerson Humanitarian Trust. The Bill Emerson Humanitarian
Trust (BEHT) is a commodity reserve that was established to ensure that
the United States can meet its international food aid commitments.
Commodities authorized for the 4-million-ton reserve include wheat,
corn, grain sorghum, and rice. The Secretary is authorized to release up
to 500,000 metric tons for urgent humanitarian relief in disasters in
the case of unanticipated need and to release an additional 500,000
metric tons of eligible commodities that could have been released but
were not released in previous years. The Secretary is authorized to
release eligible commodities from the reserve when supplies are so
limited that eligible commodities cannot be made available for
programming under P.L. 480. The 2002 Farm Bill extended the
authorization to replenish the BEHT through FY 2007. CCC is authorized
to hold funds as well as commodities in the reserve.

Conservation programs.--Title II of the Farm Security and Rural
Investment Act of 2002, P.L. 107-171, authorizes funding for new and
existing conservation programs implemented by the Farm Service Agency or
the Natural Resources Conservation Service and funded through the
Commodity Credit Corporation. The bill provides additional funding to
help farmers adopt and maintain conservation systems that protect water
quality, reduce soil erosion, protect and enhance wildlife habitat and
wetlands, conserve water, and sequester carbon. One such program is the
Conservation Reserve Program administered by FSA.

Up to 39.2 million acres may be enrolled at any one time. CRP is
USDA's largest conservation/environmental program. The purpose of CRP is
to cost-effectively assist farm owners and operators in conserving and
improving soil, water, air, and wildlife resources by converting highly
erodible and other environmentally sensitive acreage normally devoted to
the production of agricultural commodities to a long-term resource-
conserving cover. CRP participants enroll contracts for periods from 10
to 15 years in exchange for annual rental payments and cost-share and
technical assistance for installing approved conservation practices.

The CRP is authorized in all 50 States, Puerto Rico, and the Virgin
Islands, on all highly erodible cropland, other environmentally
sensitive cropland, and certain marginal pastureland meeting the
eligibility criteria. In addition to cropland in areas adjacent to lakes
and streams that can be devoted to filter strips, and cropland subject
to overflow and suffering from scour erosion, eligible land may include
cropland contributing to water quality problems, and other lands posing
environmental threats. Also eligible for the CRP are water quality or
wildlife habitat impaired areas that do not meet the highly erodible
land (HEL) criteria, such as the Chesapeake Bay, Great Lakes, and Long
Island Sound watershed regions.

The financial assistance for conservation programs where the Natural
Resources Conservation Service (NRCS) is the lead agency, is transferred
from CCC to NRCS's Farm Security and Rural Investment Programs account
(see the NRCS section). Specifically, these programs include the
Environmental Quality Incentives Program, Wetlands Reserve Program,
Wildlife Habitat Incentives program, Farm and Ranch Lands Protection
Program, Conservation Security Program, and Grassland Reserve Program.

The Agricultural Risk Protection Act of 2000 authorized CCC funding
of $10 million for 2001 and subsequent years for the Agricultural
Management Assistance Program (AMAP). AMAP provides cost-share
assistance to producers in not less than 10, nor more than 15, States in
which the Federal Crop Insurance Program is historically low as
determined by the Secretary of Agriculture. The 2002 Farm Bill increased
CCC funding to $20 million annually. The Secretary delegated authority
to Natural Resources Conservation Service, Risk Management Agency, and
the Agricultural Marketing Service. The 2006 Budget assumes the $14
million authorized for use by the Natural Resources Conservation Service
will not be funded because the assistance AMAP provides is duplicative
of other priority conservation programs, such as the Environmental
Quality Incentives Program.

Loan operations.--The following table reflects commodity loan
operations of the Corporation:

[In millions of dollars]

Item 2004 actual 2005 est. 2006 est.
Loans outstanding, gross, start of
year:
Commodity Credit Corporation...... 1,644 1,802 1,703
Additional loans made............. 9,150 11,944 10,106
Deduct:
Loans repaid...................... -8,932 -11,369 -10,322
Acquisition of loan collateral.... -25 -673 -18
Write-offs........................ -35 0 0
------------------------------------
Total loans outstanding,
gross, end of year.......... 1,802 1,704 1,469
====================================

Inventory operations.--The following table reflects the inventory
operations applicable to the preceding programs:

AGRICULTURAL COMMODITIES

[In millions of dollars]

Item 2004 actual 2005 est. 2006 est.
On hand, start of year, gross....... 1,984 950 1,221
====================================
Acquisitions:
Forfeiture of loan collateral..... 25 673 18
Excess of collateral acquired over
loans canceled.................. 0 0 0
Purchases......................... 2,227 4,744 3,734
Transfers and exchanges........... -255 -101 -4
Carrying charges:
Charges to inventory.............. 31 25 15
Storage and handling (non-add).... 90 110 98
Transportation (non-add).......... 22 15 8
------------------------------------
Total acquisitions............ 2,028 5,341 3,763
====================================
Dispositions:
Domestic donations to:
Families........................ 115 102 27

[[Page 114]]

Institutions.................... 316 154 62
School lunch.................... 0 0 0
------------------------------------
Total domestic donations...... 431 256 89
====================================
Export donations.................. 214 216 216
Sales and transfers:
Special programs: Title II,
Public Law 480................ 717 500 366
Title III, Public Law 480....... 0 0 0
Other sales..................... 865 2,892 3,216
Net loss or gain (-) on sales
and transfers................. 836 1,207 760
------------------------------------
Total sales and transfers..... 2,418 4,599 4,343
====================================
Total dispositions............ 3,063 5,071 4,648
====================================
On hand, end of year, gross......... 950 1,221 337
Allowances for losses............... -809 -1,040 -287
------------------------------------
On hand, end of year, net........... 141 181 50
====================================

Other data.--The following table reflects other data which are
applicable to price support and related programs:

DATA ON SUPPORT AND RELATED PROGRAMS

[In millions of dollars]

Item 2004 actual 2005 est. 2006 est.
Loans made.......................... 9,150 11,944 10,106
Loans repaid........................ 8,932 11,369 10,322
Loan collateral forfeited........... 25 673 18
Loans outstanding, end of year...... 1,802 1,703 1,469
Acquisitions........................ 2,028 5,341 3,763
Cost of commodities sold............ 2,418 4,599 4,343
Cost of commodities donated......... 645 471 305
Inventory, end of year.............. 950 1,221 337
Investment in loans and inventory,
end of year......................... 2,752 2,924 1,806
Direct producer payments............ 10,089 21,202 19,037
Net expenditures.................... 10,574 23,893 19,631
Realized losses..................... 12,456 25,690 23,103

Operating expenses.--The Corporation carries out its functions
through utilization of employees and facilities of other Government
agencies. Administrative expenses are incurred by: the Farm Service
Agency (FSA); the Foreign Agricultural Service; the Natural Resources
Conservation Service; the Risk Management Agency; other agencies of the
Department engaged in the Corporation's activities; and the Office of
the Inspector General for audit functions. Additional expenses are
incurred by FSA county offices for work related to programs of the
Corporation, other FSA expenses offset by revenue, custodian, and agency
expenses of the Federal Reserve banks and lending agencies, and
miscellaneous costs.

Expenses are incurred for acquisition, operation, maintenance,
improvement, or disposition of existing property that the Corporation
owns or in which it has an interest. These expenses are treated as
program expenses. Such program expenses include inspection, classing,
and grading work performed on a fee basis by Federal employees or
Federal- or State-licensed inspectors; and special services performed by
Federal agencies within and outside this Department. Most of these
general expenses, including storage and handling, transportation,
inspection, classing and grading, and producer storage payments, are
included in program costs. They are shown in the program and financing
schedule in the entries entitled ``Storage, transportation, and other
obligations not included above,'' and ``Producer storage payments.''

Section 161 of the 1996 Act amended Section 11 of the CCC Charter
Act to limit the use of CCC funds for the transfer and allotment of
funds to State and Federal agencies. The Section 11 cap of $56 million
including FSA loan service fees remains at $56 million in fiscal year
2005.

The Corporation receives reimbursement for grain requisitioned
pursuant to Public Law 87-152 by the States from Corporation stocks to
feed resident wildlife threatened with starvation through the
appropriation reimbursement for net realized losses. There have been no
requisitions in recent years, however. The Corporation receives
reimbursement for the commodity costs and other costs, including
administrative costs, for commodities supplied to domestic nutrition
programs and international food aid programs.

financing

Borrowing authority.--The Corporation has an authorized capital
stock of $100 million held by the U.S. Treasury and, effective in 1988,
authority to have outstanding borrowings up to $30 billion at any one
time.

Funds are borrowed from the Treasury and may also be borrowed from
private lending agencies and others. The Corporation reserves a
sufficient amount of its borrowing authority to purchase at any time all
notes and other obligations evidencing loans made to the Corporation by
such agencies and others. All bonds, notes, debentures, and similar
obligations issued by the Corporation are subject to approval by the
Secretary of the Treasury as required by the Act of March 8, 1938.

Interest on borrowings from the Treasury (and on capital stock) is
paid at a rate based upon the average interest rate of all outstanding
marketable obligations (of comparable maturity date) of the United
States as of the preceding month. Interest is also paid on other notes
and obligations at a rate prescribed by the Corporation and approved by
the Secretary of the Treasury.

The Department of Agriculture and Related Agencies Appropriation
Act, 1966, made provision for terminating interest after June 30, 1964
on the portion of the Corporation's borrowings from the Treasury equal
to the unreimbursed realized losses recorded on the books of the
Corporation after the end of the fiscal year in which such losses are
realized.

POSITION WITH RESPECT TO BORROWING AUTHORITY, END OF YEAR

[In millions of dollars]

Item 2004 actual 2005 est. 2006 est.
Statutory borrowing authority....... 30,000 30,000 30,000
Deduct: Borrowings from Treasury.... 8,735 22,237 19,136
Net statutory borrowing authority
available........................... 21,265 7,763 10,864

Note.--Accounts payable, accrued liabilities, and other outstanding
obligations not reflected on this table do not become charges against
the statutory borrowing authority until they result in borrowings from
the Treasury.

Contract authority.--Price support and other programs required by
statute may result in the Corporation incurring obligations in excess of
available funds and borrowing authority. Such obligations are liquidated
from subsequent appropriations and other funds that may become available
to the Corporation. Any increase in obligations in excess of available
fund resources is reported as contract authority in the year involved; a
decrease is reported as the application of appropriations and other
funds to liquidate the authority.

Appropriations.--Under section 2 of Public Law 87-155 annual
appropriations are authorized for each fiscal year to reimburse the
Corporation for net realized losses incurred as of the close of each
year.

The special activities are financed as indicated in the program
descriptions above. In addition to certain reimbursements from other
agencies, appropriations are made for foreign assistance programs.

Deficit.--The net realized losses of the Corporation have previously
been reimbursed as follows:

SUPPORT AND RELATED PROGRAMS

[In millions of dollars]
2004 actual 2005 est.
Realized losses, 1933 to 2004, inclusive 393,013
Reimbursements by the Treasury:
Reimbursements of realized losses:
Appropriations (64 times)............ 377,399

[[Page 115]]

Note cancellations (6 times)......... 2,698
Less dividends paid to Treasury (4
times).............................. -138
------------- --------------

Total reimbursements for net
realized losses.................... 379,959
------------- --------------

Other reimbursements:
Appropriations (2 times)............... 542
Note cancellation (1 time)............. 56
------------- --------------

Total other reimbursements............ 598
------------- --------------

Total................................. 380,557
------------- --------------

Realized deficit as of September 30,
2003, support and related programs..... 12,456
------------- --------------

Commodity Certificates.--Subtitle B of the 2000 Act allows for the
use of commodity certificates. In making in-kind payments, CCC may (a)
``acquire and use commodities that have been pledged to the Commodity
Credit Corporation as collateral for loans made by the Corporation;''
(b) ``use other commodities owned by the Commodity Credit Corporation;''
and (c) ``redeem negotiable marketing certificates for cash under terms
and conditions established. Commodity certificates discourage producers
from forfeiting commodities pledged as collateral for CCC commodity
loans. Certificates are used to repay marketing assistance loans when
the adjusted world price (for rice and upland cotton) or the posted
county price (for wheat, feed grains, soybeans, wool, mohair, honey,
peanuts, dry peas, lentils, small chickpeas, and designated minor
oilseeds) is lower than the applicable loan rate. The Budget assumes
that commodity certificates may be exchanged for loan collateral through
crop year 2015.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4336-0-3-999

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

-1,495

-1,089

Investments in US securities:
1106

Receivables, net

1,657

1,153

1107

Advances and prepayments

Non-Federal assets:

1206

Receivables, net

439

1207

Advances and prepayments

Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601

Direct loans, gross

1,998

2,107

1602

Interest receivable

138

1603

Allowance for estimated uncollectible loans and interest (-)

-72

-103

1604

Direct loans and interest receivable, net

2,064

2,092

1699

Value of assets related to direct loans

2,064

2,092

Other Federal assets:

1801

Cash and other monetary assets

1802

Inventories and related properties

276

141

1803

Property, plant and equipment, net

1999

Total assets

2,721

2,822

LIABILITIES:
Federal liabilities:

2101

Accounts payable

1,565

1,037

2102

Interest payable

2103

Debt

18,653

8,738

2105

Other

1,212

2,142

Non-Federal liabilities:

2201

Accounts payable

485

314

2207

Other

5,513

5,456

2999

Total liabilities

27,519

17,759

NET POSITION:
3300

Cumulative results of operations

-24,798

-14,937

3999

Total net position

-24,798

-14,937

4999

Total liabilities and net position

2,721

2,822

-----------------------------------------------------------------------------------------------
Note: Consistent with government-wide practice, information for 2004
and 2005 was not required to be collected.
Note.--In addition to obligations other than liabilities, the
Corporation does not reflect in its accounts claims by the Corporation
on which adequate proof has not been established.

Object Classification (in millions of dollars)

Direct obligations:

22.0 Transportation of things........ 144 117 87
25.2 Other services.................. 476 523 490
25.2 Other services: Storage and
handling...................... 90 110 98
26.0 Supplies and materials: Costs of
commodities sold or donated... 3,005 4,668 3,746
41.0 Grants, subsidies, and
contributions................. 10,540 21,928 19,913
43.0 Interest and dividends.......... 110 387 454
--------- --------- ----------
99.0 Direct obligations............ 14,365 27,733 24,788
Reimbursable obligations:

22.0 Transportation of things: P. L.
480 ocean transportation...... 838 726 545
26.0 Supplies and materials--Cost of
Commodities Procured/Donated--
PL 480........................ 717 500 366
33.0 Investments and loans........... 9,150 11,944 10,106
--------- --------- ----------
99.0 Reimbursable obligations...... 10,705 13,170 11,017
--------- --------- ----------
99.9 Total new obligations........... 25,070 40,903 35,805
---------------------------------------------------------------------------

Commodity Credit Corporation Fund

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4336-4-3-999 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct Program Activity........... -587
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... -587
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -587
23.95 Total new obligations............. 587
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... -587
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year..
73.10 Total new obligations............. -587
73.20 Total outlays (gross)............. 587
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... -587
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -587
90.00 Outlays........................... -587
---------------------------------------------------------------------------

The 2002 Farm Bill provided a total of $176 billion in farm-related
assistance, a 74-percent increase over the assistance the previous Farm
Bill would have provided in the absence of any additional emergency
assistance. Not all of this assistance is appropriately targeted, and
many of the programs may need to be reformed as a result of any new
multilateral long-term trade agreements. Therefore, the Administration
is proposing the following legislative changes to reduce agricultural
subsidies, promote more efficient production decisions, and extend
expiring programs:

Reducing the payment limit cap for individuals to $250,000
for commodity payments, including all types of marketing loan gains,
while removing the three-entity-rule.

Basing marketing loans on historical production.

Reducing crop and dairy payments to farmers by five
percent. Payments to farmers from all commodity programs (e.g.,
marketing loans, direct and counter-cyclical payments) would be
calculated and payments would be reduced by five percent.

[[Page 116]]

Requiring the dairy price support program to minimize
expenditures.

Imposing a sugar marketing assessment to be paid by sugar
processors on all processed sugar.

Extending the Milk Income Loss Compensation program for two
years.

Commodity Credit Corporation Export Loans Program Account

(including transfers of funds)

For administrative expenses to carry out the Commodity Credit
Corporation's export guarantee program, GSM 102 and GSM 103,
[$4,423,000] $5,279,000; to cover common overhead expenses as permitted
by section 11 of the Commodity Credit Corporation Charter Act and in
conformity with the Federal Credit Reform Act of 1990, of which
[$3,421,000] $3,440,000 may be transferred to and merged with the
appropriation for ``Foreign Agricultural Service, Salaries and
Expenses'', and of which [$1,002,000] $1,839,000 may be transferred to
and merged with the appropriation for ``Farm Service Agency, Salaries
and Expenses''. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1336-0-1-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
0101 Negative subsidies/subsidy
reestimates..................... 432 429
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Guaranteed loan subsidy........... 457 309 393
00.07 Reestimates of subsidy............ 60 104
00.08 Interest on reestimates........... 9 6
00.09 Administrative expenses........... 4 4 5
--------- --------- ----------
10.00 Total new obligations........... 530 423 398
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 384 458 308
22.00 New budget authority (gross)...... 604 423 398
22.40 Capital transfer to general fund.. -150 -308
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 988 731 398
23.95 Total new obligations............. -530 -423 -398
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 458 308
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 4 4 5
Mandatory:

60.00 Appropriation................... 531 309 393
60.00 Appropriation--upward reestimate 69 110
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 600 419 393
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 604 423 398
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 154 364 357
73.10 Total new obligations............. 530 423 398
73.20 Total outlays (gross)............. -320 -430 -373
--------- --------- ----------
74.40 Obligated balance, end of year.. 364 357 382
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 4 4 5
86.97 Outlays from new mandatory
authority....................... 316 326 275
86.98 Outlays from mandatory balances... 100 93
--------- --------- ----------
87.00 Total outlays (gross)........... 320 430 373
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 604 423 398
90.00 Outlays........................... 320 430 373
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1336-0-1-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Export guarantee program.......... 4,318 4,528 4,396
--------- --------- ----------
215901Total loan guarantee levels....... 4,318 4,528 4,396
Guaranteed loan subsidy (in percent):
232001Export guarantee program.......... 10.58 6.83 8.93
--------- --------- ----------
232901Weighted average subsidy rate..... 10.58 6.83 8.93
Guaranteed loan subsidy budget authority:
233001Export guarantee program.......... 457 309 393
--------- --------- ----------
233901Total subsidy budget authority.... 457 309 393
Guaranteed loan subsidy outlays:
234001Export guarantee program.......... 247 316 368
--------- --------- ----------
234901Total subsidy outlays............. 247 316 368
Guaranteed loan upward reestimate subsidy
budget authority:
235001Export guarantee program.......... 69 110
--------- --------- ----------
235901Total upward reestimate budget
authority....................... 69 110
Guaranteed loan downward reestimate subsidy
budget authority:
237001Export guarantee program.......... -432 -429
--------- --------- ----------
237901Total downward reestimate subsidy
budget authority................ -432 -429
----------------------------------------------------------------------------

Administrative expense data:
351001Budget authority--administrative
expenses........................ 4 4 5
359001Outlays from new authority........ 4 4 5
---------------------------------------------------------------------------

This is the program account for the GSM-102 and GSM-103 CCC Export
Credit Guarantee Programs. The Export Credit Guarantee Program (GSM-102)
covers credit terms of up to 3 years. The Intermediate Export Credit
Guarantee Program (GSM-103) covers longer credit terms of between 3 and
10 years. Under these programs, CCC does not provide financing, but
guarantees payments due from foreign banks and buyers. Because payment
is guaranteed, financial institutions in the United States can offer
competitive credit terms to foreign banks, usually with interest rates
based on the London Inter-Bank Offered Rate (LIBOR). If the foreign bank
fails to make any payment as agreed, the exporter or assignee must
submit a notice of default to the CCC. A claim for loss must be filed,
and the CCC will promptly pay claims found to be in good order. CCC
usually guarantees 98 percent of the principal payment due and interest
based on a percentage of the one-year Treasury rate.

A portion of the guarantees made available under the GSM-102 program
is provided as Supplier Credit Guarantees. Under this activity, CCC
guarantees a portion of payment due from importers under short-term
financing (for up to 180 days) that exporters have extended directly to
the importers for the purchase of U.S. agricultural commodities and
products. CCC does not provide financing, but guarantees payment due
from an importer. A substantially smaller portion of the value of
exports (currently 65 percent) is guaranteed under Supplier Credit
Guarantees than under regular GSM-102 guarantees where CCC is
guaranteeing foreign bank obligations.

A portion of the GSM-102 guarantees is also made available as
Facilities Guarantees. Under this activity, CCC guarantees export
financing for capital goods and services to improve handling, marketing,
processing, storage, or distribution of imported agricultural
commodities and products.

The subsidy estimates for the GSM-102 and GSM-103 programs are
determined in large part by the obligor's sovereign or non-sovereign
country risk grade. These grades are developed annually by the
International Credit Risk Assessment

[[Page 117]]

System Committee (ICRAS). In unusual circumstances, an ICRAS grade for a
country may change during the fiscal year. The default estimates for GSM
guarantees are determined in large part by the risk premia assigned for
each risk grade.

As required by the Federal Credit Reform Act of 1990, this account
records, for this program, the subsidy costs associated with the credit
guarantees committed in 1992 and beyond (including modifications of
credit guarantees that resulted from obligations or commitments in any
year), as well as administrative expenses of this program. The subsidy
amounts are estimated on a present value basis; the administrative
expenses are estimated on a cash basis. The 2006 Budget displays the GSM
loan guarantee volume and the subsidy level that can be justified by
forecast economic conditions, the expected supply/demand conditions of
countries requesting GSM loan guarantees.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1336-0-1-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
25.3 Other purchases of goods and
services from Government
accounts........................ 4 4 5
41.0 Grants, subsidies, and
contributions................... 526 419 393
--------- --------- ----------
99.9 Total new obligations........... 530 423 398
---------------------------------------------------------------------------

Commodity Credit Corporation Export Guarantee Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Default claims.................... 130 160 160
00.02 Interest on debt to Treasury...... 81 91 91
--------- --------- ----------
00.91 Subtotal, new loans............. 211 251 251
08.02 Reestimates of guaranteed loan
subsidy......................... 290 309
08.04 Interest on reestimates of
guaranteed loan subsidy......... 142 120
--------- --------- ----------
08.91 Subtotal, reestimates........... 432 429
--------- --------- ----------
10.00 Total new obligations........... 643 680 251
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,109 1,278 1,149
22.00 New financing authority (gross)... 812 551 696
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,921 1,829 1,845
23.95 Total new obligations............. -643 -680 -251
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1,278 1,149 1,594
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 18
69.00 Offsetting collections (cash)..... 618 731 672
69.10 Receivable from Federal sources... 176 -180 24
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 794 551 696
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 812 551 696
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -100 -273 -93
73.10 Total new obligations............. 643 680 251
73.20 Total financing disbursements
(gross)......................... -640 -680 -251
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -176 180 -24
--------- --------- ----------
74.40 Obligated balance, end of year.. -273 -93 -117
87.00 Total financing disbursements
(gross)......................... 640 680 251
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payments from program account. -316 -426 -368
88.25 Interest on uninvested funds.. -61 -40 -40
88.40 Loan origination fee.......... -22 -30 -29
88.40 Principal collections......... -105 -120 -120
88.40 Interest collections.......... -114 -115 -115
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -618 -731 -672
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. -176 180 -24
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 18
90.00 Financing disbursements........... 23 -51 -421
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4337-0-3-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation................. 4,318 4,528 4,396
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 4,318 4,528 4,396
2199 Guaranteed amount of guaranteed
loan commitments................ 4,180 4,383 4,256
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 3,808 4,191 4,368
2231 Disbursements of new guaranteed
loans........................... 2,758 4,528 4,396
2251 Repayments and prepayments........ -3,064 -4,191 -4,230
Adjustments:

2261 Terminations for default that
result in loans receivable.... -130 -160 -160
2264 Other adjustments, net.......... 819
--------- --------- ----------
2290 Outstanding, end of year........ 4,191 4,368 4,374
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 4,168 4,281 4,287
----------------------------------------------------------------------------

Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:

2310 Outstanding, start of year...... 1,800 1,794 1,834
2331 Disbursements for guaranteed
loan claims................... 130 160 160
2351 Repayments of loans receivable.. -105 -120 -120
2364 Other adjustments, net.......... -31
--------- --------- ----------
2390 Outstanding, end of year...... 1,794 1,834 1,874
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4337-0-3-351

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

1,009

1,004

1101

Accounts Receivable, net

449

359

Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:

1501

Defaulted guaranteed loans receivable, gross

1,800

1,794

1502

Interest receivable

1505

Allowance for subsidy cost (-)

-1,161

-873

1599

Net present value of assets related to defaulted guaranteed loans

666

948

1999

Total assets

2,124

2,311

LIABILITIES:
Federal liabilities:

2101

Accounts payable

101

273

2103

Debt

1,475

1,491

[[Page 118]]

2105

Other

526

305

2204

Non-Federal liabilities: Liabilities for loan guarantees

242

2999

Total liabilities

2,124

2,311

4999

Total liabilities and net position

2,124

2,311

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

Commodity Credit Corporation Guaranteed Loans Liquidating Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4338-0-3-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Operating Expenses................ 1 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 25.3)................... 1 1 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 86 66
22.00 New budget authority (gross)...... 28 1 1
22.40 Capital transfer to general fund.. -47 -66
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 67 1 1
23.95 Total new obligations............. -1 -1 -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 66
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 418 456 445
69.27 Capital transfer to general fund -390 -455 -444
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 28 1 1
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1 1 1
73.10 Total new obligations............. 1 1 1
73.20 Total outlays (gross)............. -1 -1 -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 1 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1 1 1
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -11
88.40 Repayments of principal....... -215 -273 -283
88.40 Interest received on loans.... -192 -183 -162
88.40 Other resources collected.....
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -418 -456 -445
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -390 -455 -444
90.00 Outlays........................... -418 -455 -444
---------------------------------------------------------------------------
Note.--Includes amounts for activities previously funded in the
Commodity Credit Corporation Fund.

Status of Guaranteed Loans (in millions of dollars)

2310 Outstanding, start of year...... 4,943 4,709 4,436
2351 Repayments of loans receivable.. -220 -273 -283
2364 Other adjustments, net.......... -14
--------- --------- ----------
2390 Outstanding, end of year...... 4,709 4,436 4,153
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this account
records, for this program, all cash flows to and from the Government
resulting from loan guarantees committed prior to 1992. This account is
shown on a cash basis. All new activity in this program in 1992 and
beyond is recorded in corresponding program and financing accounts.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4338-0-3-351

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
1101

Federal assets: Fund balances with Treasury

1206

Non-Federal assets: Foreign Loans Receivables

4,943

4,709

Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1702

Interest receivable

176

1703

Allowance for estimated uncollectible loans and interest (-)

-2,324

-2,204

1799

Value of assets related to loan guarantees

-2,148

-2,183

1999

Total assets

2,883

2,593

LIABILITIES:
Federal liabilities:

2101

Accounts payable

2104

Resources payable to Treasury

2,843

2,586

2207

Non-Federal liabilities: Other

2999

Total liabilities

2,883

2,593

4999

Total liabilities and net position

2,883

2,593

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

Farm Storage Facility Loans Program Account

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3301-0-1-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
0101 Negative subsidies/subsidy
reestimates..................... 12 5
0102 Negative subsidies/subsidy
reestimates..................... 2 1
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 1
00.05 Upward Reestimate................. 3 12
00.06 Interest on Upward Reestimate..... 2
00.09 Non-recoverable costs (FSL)....... 1 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 5 15 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1
22.00 New budget authority (gross)...... 5 15 1
22.40 Capital transfer to general fund.. -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5 15 1
23.95 Total new obligations............. -5 -15 -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 5 15 1
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1 1 1
73.10 Total new obligations............. 5 15 1
73.20 Total outlays (gross)............. -5 -15 -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 1 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 5 15 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 5 15 1
90.00 Outlays........................... 5 15 1
---------------------------------------------------------------------------

[[Page 119]]

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3301-0-1-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Farm Storage facility loans....... 63 61 64
115002Sugar Storage Facility Loans...... 22 3
--------- --------- ----------
115901Total direct loan levels.......... 63 83 67
Direct loan subsidy (in percent):
132001Farm Storage facility loans....... 1.22 -1.43 -1.16
132002Sugar Storage Facility Loans...... -3.87 -5.25 -5.24
--------- --------- ----------
132901Weighted average subsidy rate..... 1.22 -2.44 -1.34
Direct loan subsidy budget authority:
133001Farm Storage facility loans....... 1 -1 -1
133002Sugar Storage Facility Loans...... -1
--------- --------- ----------
133901Total subsidy budget authority.... 1 -2 -1
Direct loan subsidy outlays:
134001Farm Storage facility loans....... 1 -1 -1
134002Sugar Storage Facility Loans......
--------- --------- ----------
134901Total subsidy outlays............. 1 -1 -1
Direct loan upward reestimate subsidy budget
authority:
135001Farm Storage facility loans....... 3 14
--------- --------- ----------
135901Total upward reestimate budget
authority....................... 3 14
Direct loan downward reestimate subsidy budget
authority:
137001Farm Storage facility loans....... -12 -5
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -12 -5
---------------------------------------------------------------------------

Farm Storage Facility Loan (FSFL) Program. The FSFL program was
established by CCC in 1949 to offer low-cost financing to producers for
the construction or upgrade of on-farm storage facilities. The program
was discontinued in the early 1980's when studies showed sufficient
storage space was available. The FSFL was re-established in 2000 due to
a severe shortage of sufficient available storage. The program was
implemented in 2000 by CCC under Section 504(c) of the Federal Credit
Reform Act of 1990. The program provides producers financing with five-
to ten-year repayment terms and low interest rates. The program gives
producers greater marketing flexibility when farm storage is limited
and/or transportation difficulties cause storage problems, allows
farmers to benefit from new marketing and technological advances, and
maximizes their returns through identity-preserved marketing.

Sugar Storage Facility Loans. The 2002 Farm Bill directs that the
CCC establish a sugar storage facility loan program to provide financing
for processors of domestically produced sugarcane and sugar beets to
construct or upgrade storage and handling facilities for raw sugars and
refined sugars. The loan term is a minimum of 7 years with the amount
and terms being determined as any other commercial loan.

As required by the Federal Credit Reform Act of 1990, this account
records the subsidy costs associated with the direct loans obligated in
1992 and beyond, as well as administrative expenses of this program. The
subsidy amounts are estimated on a prevent value basis; the
administrative expenses are estimated on a cash basis.

Farm Storage Facility Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loans--FSFL & SSFL......... 63 83 67
00.03 Payment of interest to Treasury... 14 6 6
--------- --------- ----------
00.91 Obligations associated with
loans......................... 77 89 73
08.01 Negative subsidies paid to receipt
account......................... 2 1
08.02 Downward reestimates paid to
receipt accounts................ 11 5
08.04 Interest on downward reestimates.. 1
--------- --------- ----------
08.91 Other obligations by program
activities.................... 12 7 1
--------- --------- ----------
10.00 Total new obligations........... 89 96 74
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 68 27 8
22.00 New financing authority (gross)... 100 104 123
22.10 Resources available from
recoveries of prior year
obligations..................... 12
22.60 Portion applied to repay debt..... -40 -27 -47
22.75 Other authority withdrawn......... -24
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 116 104 84
23.95 Total new obligations............. -89 -96 -74
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 27 8 10
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 96 24 44
69.00 Payments from program account..... 4 14 1
69.00 Principal......................... 35 52 64
69.00 Interest collections (cash)....... 8 8 8
69.00 Interest on Uninvested Funds...... 6 6 6
69.47 Portion applied to repay debt..... -49
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 4 80 79
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 100 104 123
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 49 39 56
73.10 Total new obligations............. 89 96 74
73.20 Total financing disbursements
(gross)......................... -87 -79 -85
73.45 Recoveries of prior year
obligations..................... -12
--------- --------- ----------
74.40 Obligated balance, end of year.. 39 56 45
87.00 Total financing disbursements
(gross)......................... 87 79 85
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payments from Program Account. -4 -14 -1
88.25 Interest on uninvested funds.. -6 -6 -6
88.40 Principal collections......... -35 -52 -64
88.40 Interest collections.......... -8 -8 -8
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -53 -80 -79
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 47 24 44
90.00 Financing disbursements........... 34 -1 6
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4158-0-3-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 63 83 67
--------- --------- ----------
1150 Total direct loan obligations... 63 83 67
--------- --------- ----------
1150 Total direct loan obligations...
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 160 187 206
1231 Disbursements: Direct loan
disbursements................... 62 71 77
1251 Repayments: Repayments and
prepayments..................... -35 -52 -64
1263 Write-offs for default: Direct
loans...........................
--------- --------- ----------
1290 Outstanding, end of year........ 187 206 219
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4158-0-3-351

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

117

Investments in US securities:
1106

Receivables, net

[[Page 120]]

Net value of assets related to
post-1991 direct loans
receivable:

1401

Direct loans receivable, gross

160

187

1402

Interest receivable

1405

Allowance for subsidy cost (-)

-1

1499

Net present value of assets related to direct loans

171

189

1999

Total assets

292

269

LIABILITIES:
Federal liabilities:

2103

Debt payable to Treasury

280

264

2105

Other Federal Liabilities

2999

Total liabilities

292

269

4999

Total liabilities and net position

292

269

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

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from direct loans obligated in 1992 and beyond (including
modifications of direct loans that resulted from obligations in any
year). The amounts in this account are a means of financing and are not
included in the budget totals.

Apple Loans Program Account

The Agricultural Risk Protection Act of 2000 authorized up to $5
million for the cost to provide loans to producers of apples for
economic losses as the result of low prices. Although the program is
funded through CCC, program management is performed through farm loan
programs. No further funding is requested for this program.

As required by the Federal Credit Reform Act of 1990, this account
records, for this program, the subsidy costs associated with the direct
loans obligated in 1992 and beyond (including modifications of direct
loans or loan guarantees that resulted from obligations or commitments
in any year), as well as administrative expenses of this program. The
subsidy amounts are estimated on a present value basis; the
administrative expenses are estimated on a cash basis.

Emergency Boll Weevil Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.05 Payment to Treasury--Interest..... 1
--------- --------- ----------
10.00 Total new obligations........... 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 6 1
22.00 New financing authority (gross)... 2
22.40 Capital transfer to general fund.. -1
22.60 Portion applied to repay debt..... -6
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2
23.95 Total new obligations............. -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

47.00 Authority to borrow............. 2
Mandatory:

69.00 Offsetting collections (cash)... 4
69.47 Portion applied to repay debt... -4
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)...........
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 2
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 1
73.20 Total financing disbursements
(gross)......................... -1
87.00 Total financing disbursements
(gross)......................... 1
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.25 Interest on uninvested funds.. -1
88.45 Offsetting governmental
collections (from non-
Federal sources)............ -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -4
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... -2
90.00 Financing disbursements........... -3
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4221-0-3-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 10 10 10
1251 Repayments: Repayments and
prepayments.....................
1263 Write-offs for default: Direct
loans...........................
--------- --------- ----------
1290 Outstanding, end of year........ 10 10 10
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from direct loans obligated in 1992 and beyond (including
modifications of direct loans that resulted from obligations in any
year). The amounts in this account are a means of financing and are not
included in the budget totals.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4221-0-3-351

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Net value of assets related to
post-1991 direct loans
receivable:

1401

Direct loans receivable, gross

1405

Allowance for subsidy cost (-)

-7

1499

Net present value of assets related to direct loans

1999

Total assets

LIABILITIES:
2103

Federal liabilities: Debt

2999

Total liabilities

4999

Total liabilities and net position

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

Tobacco Trust Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8161-0-7-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
09.01 Tobacco Assessment to CCC......... 958 1,189
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 958 1,189
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 958 1,189
23.95 Total new obligations............. -958 -1,189
----------------------------------------------------------------------------

[[Page 121]]

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 958 1,189
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 958 1,189
73.20 Total outlays (gross)............. -958 -1,189
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 958 1,189
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -958 -1,189
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------

NATURAL RESOURCES CONSERVATION SERVICE

Conservation Operations

For necessary expenses for carrying out the provisions of the Act of
April 27, 1935 (16 U.S.C. 590a-f), including preparation of conservation
plans and establishment of measures to conserve soil and water
(including farm irrigation and land drainage and such special measures
for soil and water management as may be necessary to prevent floods and
the siltation of reservoirs and to control agricultural related
pollutants); operation of conservation plant materials centers;
classification and mapping of soil; dissemination of information;
acquisition of lands, water, and interests therein for use in the plant
materials program by donation, exchange, or purchase at a nominal cost
not to exceed $100 pursuant to the Act of August 3, 1956 (7 U.S.C.
428a); purchase and erection or alteration or improvement of permanent
and temporary buildings; and operation and maintenance of aircraft,
[$837,360,000] $767,783,000, to remain available until [June 30, 2006]
expended, of which not less than [$10,500,000] $10,457,000 is for snow
survey and water forecasting, and not less than [$14,433,000]
$10,547,000 is for operation and establishment of the plant materials
centers, and of which not less than [$23,500,000] $33,000,000 shall be
for the grazing lands conservation initiative: Provided, That
appropriations hereunder shall be available pursuant to 7 U.S.C. 2250
for construction and improvement of buildings and public improvements at
plant materials centers, except that the cost of alterations and
improvements to other buildings and other public improvements shall not
exceed $250,000: Provided further, That when buildings or other
structures are erected on non-Federal land, that the right to use such
land is obtained as provided in 7 U.S.C. 2250a: Provided further, That
this appropriation shall be available for technical assistance and
related expenses to carry out programs authorized by section 202(c) of
title II of the Colorado River Basin Salinity Control Act of 1974 (43
U.S.C. 1592(c)): Provided further, That qualified local engineers may be
temporarily employed at per diem rates to perform the technical planning
work of the Service[: Provided further, That none of the funds made
available under this paragraph by this or any other appropriations Act
may be used to provide technical assistance with respect to programs
listed in section 1241(a) of the Food Security Act of 1985 (16 U.S.C.
3841(a))]. (7 U.S.C. 2201-02; 16 U.S.C. 1101-5; 33 U.S.C. 7016-11;
Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Technical assistance.............. 764 743 659
00.02 Soil surveys...................... 87 89 88
00.03 Snow survey and water forecasting. 10 11 10
00.04 Plant materials centers........... 12 15 11
09.00 Reimbursable program.............. 41 53 53
--------- --------- ----------
10.00 Total new obligations........... 914 911 821
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 29 49 21
22.00 New budget authority (gross)...... 910 883 821
22.10 Resources available from
recoveries of prior year
obligations..................... 22
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 961 932 842
23.95 Total new obligations............. -914 -911 -821
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 49 21 21
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 853 837 768
40.35 Appropriation permanently
reduced....................... -5 -7
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 848 830 768
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 62 53 53
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 910 883 821
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 204 247 326
73.10 Total new obligations............. 914 911 821
73.20 Total outlays (gross)............. -847 -832 -833
73.45 Recoveries of prior year
obligations..................... -22
--------- --------- ----------
74.40 Obligated balance, end of year.. 247 326 314
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 758 783 729
86.93 Outlays from discretionary
balances........................ 89 49 104
--------- --------- ----------
87.00 Total outlays (gross)........... 847 832 833
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -49 -36 -36
88.40 Non-Federal sources........... -13 -17 -17
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -62 -53 -53
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 848 830 768
90.00 Outlays........................... 785 779 780
---------------------------------------------------------------------------

Technical assistance.--Technical assistance is provided through
2,955 conservation districts or special districts to land users and
decisionmakers, including individual landowners and operators, community
groups, units of government, Indian tribes, and others for the planning
of conservation programs and installation of needed conservation systems
on the land, including design, layout, installation, and consultation
services.

MAIN WORKLOAD FACTORS

2004 Actual 2005 est. 2006 est.
Customers receiving technical
assistance for planning &
application, number................. 255,000 255,000 255,000
Conservation systems planned on
cropland and grazing land, acres....32.7 million 30 million27.6 million
Erosion reduction applied on
cropland............................ 3.3 million 3 million 2.8 million
Conservation practices applied on
grazing land........................ 9.7 million 8.5 million 13 million

Inventory and monitoring, resource appraisal, and program
development activities are also funded through this account. Resource
inventories are conducted to provide soil, water, and related resource
data for evaluating land-use changes and trends; and for guidance in the
development and implementation of Federal, State, and local resource
conservation programs. Resource appraisal and program development
provides periodic reports to the public and Congress as required by the
Soil and Water Resources Conservation Act of 1977 as amended.

The 2006 Budget targets funding to national-level conservation
priorities. The Budget includes an increase of $37 million to provide
more conservation assistance to help livestock producers to comply with
environmental regulations. To help ranchers fight and control priority
invasive species, the Budg

[[Page 122]]

et also includes an increase of $9.7 million to the Grazing Lands
Conservation Initiative. The National Invasive Species Council has
indentified high-priority invasive species that heavily impact western
range lands, such as yellow star thistle, leafy spurge, and tamarisk.
This additional funding will enhance invasive species prevention,
management, and restoration activities.

Soil surveys.--Soil surveys and investigations are made on the soil
resources of the Nation's private lands. NRCS provides this information
as electronic and printed publications for use by the American public
and other Federal, State and local agencies in making land-use
decisions. NRCS uses the information for program development, resource
conservation planning, and installation of planned practices. NRCS
provides national leadership for the National Cooperative Soil Survey
and digitizing of soil surveys in cooperation with States, and other
users of soil survey data. Legislation requires that the Secretary shall
make a reasonable effort to assure that ``a substantial portion of the
survey costs for NRCS are to be reimbursed by survey recipients.''

MAIN WORKLOAD FACTORS

2004 actual 2005 est. 2006 est.
Acres mapped annually (millions).... 28 30 30
Soil surveys released for public
use, (million acres)................ 50.7 67 90
Soil surveys available
electronically on NRCS Web site
(number cumulative)................. 2,024 2,360 2,660

Snow survey and water supply forecasting.--Water supply forecasts
prepared from snow surveys in western states are used in making
efficient seasonal use of water for irrigation, flood control, fish and
wildlife, recreation, power generation, municipal and industrial water
supply, emergency management, and water quality management.

Operation of plant materials centers.--The selection and evaluation
of plant materials are made at 26 plant materials centers through field
trials to determine their suitability for erosion control, conservation,
and other environmental improvements. Native plant species will be
preferred and exotic species introductions phased out for this program.

Performance Metrics

----------------------------------------------------------------------------
Identification code 12-1000-0-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Conservation Technical Assistance:
100404Number of acres of wetlands
created, restored, or enhanced.. 36,054 44,141
100406Cumulative number of soil surveys
available in digital form....... 2,300 2,600
---------------------------------------------------------------------------

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 436 433 388
11.3 Other than full-time permanent 9 9 8
11.5 Other personnel compensation.. 6 6 5
--------- --------- ----------
11.9 Total personnel compensation 451 448 401
12.1 Civilian personnel benefits..... 135 135 123
21.0 Travel and transportation of
persons....................... 18 18 16
22.0 Transportation of things........ 5 5 5
23.2 Rental payments to others....... 22 22 19
23.3 Communications, utilities, and
miscellaneous charges......... 24 23 21
24.0 Printing and reproduction....... 3 3 3
25.2 Other services.................. 172 161 142
26.0 Supplies and materials.......... 15 15 13
31.0 Equipment....................... 27 27 24
42.0 Insurance claims and indemnities 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 873 858 768
99.0 Reimbursable obligations.......... 41 53 53
--------- --------- ----------
99.9 Total new obligations........... 914 911 821
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1000-0-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 7,943 7,653 6,671
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 226 300 300
---------------------------------------------------------------------------

Farm Security and Rural Investment Programs

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Wetlands Reserve Program.......... 285 275 321
00.02 Environmental Quality Incentives
Program......................... 903 1,017 1,000
00.03 Ground and Surface Water
Conservation.................... 65 51 60
00.04 Klamath Basin..................... 19 8 8
00.05 Wildlife Habitat Incentives
Program......................... 38 47 60
00.06 Farm and Ranch Lands Protection
Program......................... 91 112 84
00.07 Conservation Security Program..... 40 202 274
00.08 Grassland Reserve Program......... 57 128
00.09 Conservation Reserve Program...... 62
00.10 Agricultural Management Assistance
Program......................... 14 14
09.00 Reimbursable program-CRP.......... 87 90
--------- --------- ----------
10.00 Total new obligations........... 1,574 1,941 1,897
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1,601 1,941 1,897
23.95 Total new obligations............. -1,574 -1,941 -1,897
23.98 Unobligated balance expiring or
withdrawn....................... -29
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.35 Appropriation permanently
reduced....................... -295
Mandatory:

62.00 Transferred from other accounts. 1,601 1,854 2,102
69.00 Offsetting collections (cash)..... 87 90
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,601 1,941 1,897
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 660 835 954
73.10 Total new obligations............. 1,574 1,941 1,897
73.20 Total outlays (gross)............. -1,389 -1,822 -1,864
73.40 Adjustments in expired accounts
(net)........................... -9
--------- --------- ----------
74.40 Obligated balance, end of year.. 835 954 987
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -156
86.97 Outlays from new mandatory
authority....................... 1,100 941 997
86.98 Outlays from mandatory balances... 289 881 1,023
--------- --------- ----------
87.00 Total outlays (gross)........... 1,389 1,822 1,864
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -87 -90
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,601 1,854 1,807
90.00 Outlays........................... 1,389 1,735 1,774
---------------------------------------------------------------------------

The Farm Security and Rural Investment Act of 2002 (P.L. 107-171)
reauthorizes a number of USDA's conservation programs. NRCS is
responsible for implementing many of these programs. All of the
assistance for programs where NRCS is the lead implementation agency is
transferred from the Commodity Credit Corporation (CCC) to the Farm
Security and Rural Investment Programs account. This account funds the
cost share, monitoring, easement, and other financial as

[[Page 123]]

sistance activities associated with the programs under title II of the
2002 Farm Bill. In addition, this account funds the technical assistance
costs necessary for delivering the Environmental Quality Incentives
Program, Ground and Surface Water Conservation, Klamath Basin, Wildlife
Habitat Incentives Program, Farm and Ranch Land Protection Program,
Conservation Security Program, Grassland Reserve Program, and Wetlands
Reserve Program.

The following programs are funded in this account.

Wetlands Reserve Program (WRP) is authorized under Section 1237 of
the Food Security Act of 1985, as amended. The authority provides for a
total acreage enrollment cap of 2,275,000 acres. The purpose of the WRP
is to preserve, protect, and restore valuable wetlands.

Environmental Quality Incentives Program (EQIP) was re-authorized in
the Farm Security and Rural Investment Act of 2002. Funding is
authorized at $5.8 billion over 6 years with $400 million in 2002
increasing to $1.3 billion in 2007. The purpose of the program is to
promote agricultural production and environmental quality as compatible
national goals.

Ground and Surface Water Program (GSW) is authorized by Section
1240I of Title XII of the Food Security Act of 1985. Funding is
authorized at $310 million over six years. The purpose of the program is
to promote ground and surface water conservation by providing cost-share
payments and incentive payments to producers to carry out eligible water
conservation activities.

Klamath Basin. is authorized by Section 1240I of Title XII of the
Food Security Act of 1985. Funding is authorized at $50 million over 6
years. The purpose of the Klamath Basin program is to carry out water
conservation activities in the Klamath Basin located in California and
Oregon.

Farm and Ranch Lands Protection Program (FRPP). The Farm Security
and Rural Investment Act of 2002 repealed the Farmland Protection
Program authorized by the Federal Agriculture Improvement and Reform Act
of 1996 and authorized a new Farmland Protection Program. Funding is
authorized at $597 million over 6 years. The purpose of the program is
to protect soil by limiting nonagricultural use of prime and unique farm
and ranch land.

Wildlife Habitat Incentives Program (WHIP) is authorized by Section
1240N of the Food Security Act of 1985. Funding is authorized at $360
million over 6 years. The purpose of the program is to develop habitat
for upland wildlife, wetlands wildlife, threatened and endangered
species, fish, and other types of wildlife.

Conservation Security Program (CSP) is authorized by subchapter A
chapter 2, subtitle D. Title XII of the Food Security Act of 1985 as
added by the Farm Security and Rural Investment Act of 2002. The purpose
of the program is to provide financial and technical assistance for the
conservation, protection, and improvement of natural resources on Tribal
and private working lands. The program provides assistance to producers
who have already implemented high levels of conservation in order to
reward and maintain their model stewardship. CSP also pays qualified
producers to do further environmental enhancements to improve natural
resource conditions on their agricultural operations.

Grassland Reserve Program (GRP) is authorized by Section 1238N of
Title XII, of Food Security Act of 1985. Funding is authorized at $254
million over 5 years. The purpose of the program is to assist landowners
in restoring and protecting grassland.

Agricultural Management Assistance Program (AMA) is authorized by
Section 211 of the Agriculture Risk Protection Act of 2000, Subtitle F,
Section 2501(l)(4)(ii) of the Farm Security and Rural Investment Act of
2002 provides $20 million annually for financial assistance in 15
states, as determined by the Secretary, in which participation in the
Federal Crop Insurance Program is historically low. The program provides
assistance to producers to mitigate financial risk by using conservation
measures to reduce soil erosion and improve water quality.

NRCS works to deliver these conservation programs using its
technical field staff and by partnering with public and private entities
through the Technical Service Provider (TSP) system. NRCS can contract
with TSPs to help deliver the Farm Bill programs, or agricultural
producers may select TSPs to help plan and implement conservation
practices on their operations.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 165 157 163
11.3 Other than full-time permanent 3 2 3
11.5 Other personnel compensation.. 2 2 3
--------- --------- ----------
11.9 Total personnel compensation 170 161 169
12.1 Civilian personnel benefits..... 49 48 50
21.0 Travel and transportation of
persons....................... 5 7 7
22.0 Transportation of things........ 1 1 1
23.2 Rental payments to others....... 10 10 10
23.3 Communications, utilities, and
miscellaneous charges......... 12 15 16
24.0 Printing and reproduction....... 1 2 1
25.2 Other services.................. 86 82 102
26.0 Supplies and materials.......... 7 9 8
31.0 Equipment....................... 17 17 16
32.0 Land and structures............. 270 322 295
41.0 Grants, subsidies, and
contributions................. 946 1,180 1,132
--------- --------- ----------
99.0 Direct obligations............ 1,574 1,854 1,807
99.0 Reimbursable obligations.......... 87 90
--------- --------- ----------
99.9 Total new obligations........... 1,574 1,941 1,897
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1004-0-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 3,043 3,362 3,579
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 800 805
---------------------------------------------------------------------------

Watershed Surveys and Planning

For necessary expenses to conduct research, investigation, and
surveys of watersheds of rivers and other waterways, and for small
watershed investigations and planning, in accordance with the Watershed
Protection and Flood Prevention Act (16 U.S.C. 1001-1009), [$7,083,000:
Provided, That none of the funds made available under this paragraph by
this or any other appropriations Act may be used to provide technical
assistance with respect to programs listed in section 1241(a) of the
Food Security Act of 1985 (16 U.S.C. 3841(a))] $5,141,000. (7 U.S.C.
2201-02; 16 U.S.C. 1101-5; 33 U.S.C. 7016-11; Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 10 7 5
--------- --------- ----------
10.00 Total new obligations........... 10 7 5
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 11 7 5
23.95 Total new obligations............. -10 -7 -5
23.98 Unobligated balance expiring or
withdrawn....................... -1
----------------------------------------------------------------------------

[[Page 124]]

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 11 7 5
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2 4 3
73.10 Total new obligations............. 10 7 5
73.20 Total outlays (gross)............. -9 -8 -6
--------- --------- ----------
74.40 Obligated balance, end of year.. 4 3 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 7 6 4
86.93 Outlays from discretionary
balances........................ 2 2 2
--------- --------- ----------
87.00 Total outlays (gross)........... 9 8 6
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 11 7 5
90.00 Outlays........................... 8 8 6
---------------------------------------------------------------------------

Under the authorities of Public Law 83-566, watershed planning
assistance is provided to States and communities to address specific
resource problems on a watershed scale. The funds are used to cooperate
with other agencies and the States in providing local decision makers
with resource data, derived from cooperative river basin surveys and
floodplain management studies, for use in decision making. Watershed
plans are used to develop the small watershed projects.

Watershed work plans are prepared by sponsoring local organizations
with the Department's assistance or through State and local resources.
After work plans are approved by the Department or Congress (projects
where the estimated Federal contribution will exceed $5 million require
congressional approval), financial assistance is provided for specific
works of improvements. Since 1944, the Federal Government has invested
over $8.5 billion to develop a watershed infrastructure through the
Small Watershed program. The investment yields annual benefits estimated
at $922 million primarily to local areas and private landowners.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 5 4 3
12.1 Civilian personnel benefits..... 1 1 1
25.2 Other services.................. 2 1 1
--------- --------- ----------
99.0 Direct obligations............ 8 6 5
99.5 Below reporting threshold......... 2 1
--------- --------- ----------
99.9 Total new obligations........... 10 7 5
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1066-0-1-301 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 73 51 36
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 1 1 1
---------------------------------------------------------------------------

[Watershed and Flood Prevention Operations]

[For necessary expenses to carry out preventive measures, including
but not limited to research, engineering operations, methods of
cultivation, the growing of vegetation, rehabilitation of existing works
and changes in use of land, in accordance with the Watershed Protection
and Flood Prevention Act (16 U.S.C. 1001-1005 and 1007-1009), the
provisions of the Act of April 27, 1935 (16 U.S.C. 590a-f), and in
accordance with the provisions of laws relating to the activities of the
Department, $75,576,000, to remain available until expended; of which up
to $10,000,000 may be available for the watersheds authorized under the
Flood Control Act (33 U.S.C. 701 and 16 U.S.C. 1006a): Provided, That
not to exceed $35,000,000 of this appropriation shall be available for
technical assistance: Provided further, That not to exceed $1,000,000 of
this appropriation is available to carry out the purposes of the
Endangered Species Act of 1973 (Public Law 93-205), including
cooperative efforts as contemplated by that Act to relocate endangered
or threatened species to other suitable habitats as may be necessary to
expedite project construction: Provided further, That none of the funds
made available under this paragraph by this or any other appropriations
Act may be used to provide technical assistance with respect to programs
listed in section 1241(a) of the Food Security Act of 1985 (16 U.S.C.
3841(a)).] (7 U.S.C. 2209b, 2225; 16 U.S.C. 1001-1005, 1007-1009;
Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2005.)

[Emergency Watershed Protection Program]

[For an additional amount for ``Emergency Watershed Protection
Program'' to repair damages to the waterways and watersheds resulting
from natural disasters, $250,000,000, to remain available until
expended: Provided, That the amounts provided under this heading are
designated as an emergency requirement pursuant to section 402 of S.
Con. Res. 95 (108th Congress), as made applicable to the House of
Representatives by H. Res. 649 (108th Congress) and applicable to the
Senate by section 14007 of Public Law 108-287.] (Emergency Supplemental
Appropriations for Hurricane Disasters Assistance Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Watershed operations (P.L. 534). 12 11
00.03 Emergency watershed protection
operations.................... 44 408
00.04 Small watershed operations (P.L.
566).......................... 89 69
09.01 Reimbursable program.............. 11 11
--------- --------- ----------
10.00 Total new obligations........... 156 499
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 53 161
22.00 New budget authority (gross)...... 244 338
22.10 Resources available from
recoveries of prior year
obligations..................... 22
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 319 499
23.95 Total new obligations............. -156 -499
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 161
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 237 326
40.35 Appropriation permanently
reduced....................... -1 -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 236 325
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 15 13
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... -7
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 8 13
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 244 338
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 244 252 437
73.10 Total new obligations............. 156 499
73.20 Total outlays (gross)............. -134 -314 -272
73.45 Recoveries of prior year
obligations..................... -22
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 7
--------- --------- ----------
74.40 Obligated balance, end of year.. 252 437 165
----------------------------------------------------------------------------

[[Page 125]]

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 81 207
86.93 Outlays from discretionary
balances........................ 53 107 272
--------- --------- ----------
87.00 Total outlays (gross)........... 134 314 272
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -11 -13
88.40 Non-Federal sources........... -4
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -15 -13
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 7
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 236 325
90.00 Outlays........................... 119 301 272
---------------------------------------------------------------------------

These programs provide for cooperative actions between the Federal
Government and States and their political subdivisions to reduce damage
from floodwater, sediment, and erosion, for the conservation,
development, utilization, and disposal of water, and for the
conservation and proper utilization of land. Funds in Watershed and
Flood Prevention Operations can be used for either flood prevention
projects or flood damage rehabilitation efforts, depending upon the
needs and opportunities. In order to improve the environmental and
economic benefits of these projects, NRCS intends to focus on developing
and funding non-structural flood prevention measures.

Emergency watershed protection.--This program authorizes the
Secretary of Agriculture to undertake such emergency measures for runoff
retardation and soil erosion prevention as may be needed to safeguard
life and property from floods and the products of erosion on any
watershed whenever natural elements or forces cause a sudden impairment
of that watershed. An emergency is considered to exist when a watershed
is suddenly impaired by flood, fire, wind, earthquake, drought or other
natural causes and consequently life and property are endangered by
floodwater, erosion, or sediment discharge. The emergency area need not
be declared a national disaster area to be eligible for emergency
watershed protection. Emergency watershed protection is applicable to
small scale, localized disasters as well as large scale disasters. State
environmental, natural resource, fish and game, and other agencies
participate in planning and coordinating emergency work. Funding for the
emergency watershed protection program is typically provided through
emergency supplemental appropriations.

To improve the delivery and defensibility of the program, NRCS
published a draft programmatic environmental impact statement and
proposed regulations for public review and comment to assess various
program alternatives. Through the public feedback and information
gathering process, NRCS ultimately will be able to make the program more
beneficial to communities and the environment.

Watershed operations authorized by Public Law 78-534.--The
Department cooperates with soil conservation districts and other local
organizations in planning and installing flood prevention improvements
in 11 watersheds authorized by the Flood Control Act of 1944. The
Federal Government shares the cost of improvements for flood prevention,
agricultural water management, recreation, and fish and wildlife
development.

The 2006 Budget redirects this program's resources to other priority
programs within the Agency.

Small watershed operations authorized by Public Law 83-566.--The
Department provides technical and financial assistance to local
organizations to install measures for watershed protection, flood
prevention, agricultural water management, recreation, and fish and
wildlife enhancement. At least 50 percent of the funding provided is
used for financial assistance. The 2006 Budget redirects this program's
resources to other priority programs within the Agency.

Loans through the Agricultural Credit Insurance Fund have been made
in previous years to the local sponsors in order to fund the local cost
of Public Law 83-566 or 78-534 projects. No funding for these loans is
assumed in 2006.

The following tabulation shows the status of Public Law 83-566
projects:

MAIN WORKLOAD FACTORS

2004 actual 2005 est. 2006 est.
Status of operational projects:
Projects receiving land treatment. 175 167 159
Structural projects............... 274 273 271
Land treatment and structural..... 98 97 97
------------------------------------
Subtotal active projects...... 547 537 527
Projects continuing post-
installation assistance......... 987 1,000 1,013
Inactive projects................. 25 25 25
Project life completed............ 41 43 45
Deauthorized projects............. 155 155 155
------------------------------------
Total operational projects.... 1,755 1,760 1,765
------------------------------------
New projects approved during year. 5 5 5
====================================

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 23 51
11.5 Other personnel compensation.. 1 4
--------- --------- ----------
11.9 Total personnel compensation 24 55
12.1 Civilian personnel benefits..... 6 14
21.0 Travel and transportation of
persons....................... 1 3
23.2 Rental payments to others....... 1 2
23.3 Communications, utilities, and
miscellaneous charges......... 1 3
25.2 Other services.................. 8 15
25.2 Other services.................. 43 127
26.0 Supplies and materials.......... 1 3
31.0 Equipment....................... 2 7
41.0 Grants, subsidies, and
contributions................. 57 259
--------- --------- ----------
99.0 Direct obligations............ 144 488
99.0 Reimbursable obligations.......... 11 11
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 156 499
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1072-0-1-301 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 398 839
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 34 33
---------------------------------------------------------------------------

Watershed Rehabilitation Program

For necessary expenses to carry out rehabilitation of structural
measures, in accordance with section 14 of the Watershed Protection and
Flood Prevention Act (16 U.S.C. 1012), and in accordance with the
provisions of laws relating to the activities of the Department,
[$27,500,000] $15,125,000, to remain available until expended[:
Provided, That none of the funds made available under this paragraph by
this or any other appropriations Act may be used to provide technical
assistance with respect to programs listed in section 1241(a) of the
Food Security Act of 1985 (16 U.S.C. 3841(a))]. (16 U.S.C. 1001 et seq.;
Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2005.)

[[Page 126]]

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Program Activity........... 29 28 15
09.01 Reimbursable program.............. 1 1
--------- --------- ----------
10.00 Total new obligations........... 30 29 15
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 2 150
22.00 New budget authority (gross)...... 31 177 -135
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 32 179 15
23.95 Total new obligations............. -30 -29 -15
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 2 150
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 30 27 15
40.35 Appropriation permanently
reduced....................... -210
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 30 27 -195
Mandatory:

62.00 Transferred from other accounts. 150 60
Discretionary:

68.10 Spending authority from
offsetting collections: Change
in uncollected customer
payments from Federal sources
(unexpired)................... 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 31 177 -135
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 24 33 34
73.10 Total new obligations............. 30 29 15
73.20 Total outlays (gross)............. -20 -28 114
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 33 34 163
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 11 18 -133
86.93 Outlays from discretionary
balances........................ 9 10 19
--------- --------- ----------
87.00 Total outlays (gross)........... 20 28 -114
----------------------------------------------------------------------------

Offsets:
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 30 177 -135
90.00 Outlays........................... 19 28 -114
---------------------------------------------------------------------------

Under the authorities of section 14 of the Watershed Protection and
Flood Prevention Act assistance is provided to communities to address
concerns about local aging dams. NRCS may provide technical and
financial assistance for the planning, design, and implementation of
rehabilitation projects that may include upgrading or removing the dams.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 7 5 3
12.1 Civilian personnel benefits..... 2 2 1
23.3 Communications, utilities, and
miscellaneous charges......... 1 1
25.2 Other services.................. 7 6 3
25.2 Other services.................. 9 10 6
41.0 Grants, subsidies, and
contributions................. 3 3 2
--------- --------- ----------
99.0 Direct obligations............ 29 27 15
99.0 Reimbursable obligations.......... 1 1
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 30 29 15
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1002-0-1-301 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 108 84 47
---------------------------------------------------------------------------

Resource Conservation and Development

For necessary expenses in planning and carrying out projects for
resource conservation and development and for sound land use pursuant to
the provisions of sections 31 and 32 of the Bankhead-Jones Farm Tenant
Act (7 U.S.C. 1010-1011; 76 Stat. 607); the Act of April 27, 1935 (16
U.S.C. 590a-f); and subtitle H of title XV of the Agriculture and Food
Act of 1981 (16 U.S.C. 3451-3461), [$51,641,000] $25,600,000, to remain
available until expended[: Provided, That none of the funds made
available under this paragraph by this or any other appropriations Act
may be used to provide technical assistance with respect to programs
listed in section 1241(a) of the Food Security Act of 1985 (16 U.S.C.
3841(a)): Provided further, That the Secretary shall enter into a
cooperative or contribution agreement with a national association
regarding a Resource Conservation and Development program and such
agreement shall contain the same matching, contribution requirements,
and funding level, set forth in a similar cooperative or contribution
agreement with a national association in fiscal year 2002: Provided
further, That not to exceed $3,504,300 shall be available for national
headquarters activities]. (7 U.S.C. 2225; Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Technical assistance.............. 53 51 26
09.01 Reimbursable program.............. 1 1
--------- --------- ----------
10.00 Total new obligations........... 53 52 27
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 1 1
22.00 New budget authority (gross)...... 52 52 27
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 54 53 28
23.95 Total new obligations............. -53 -52 -27
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1 1 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 52 51 26
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 52 52 27
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 9 10 10
73.10 Total new obligations............. 53 52 27
73.20 Total outlays (gross)............. -51 -52 -32
--------- --------- ----------
74.40 Obligated balance, end of year.. 10 10 5
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 46 47 24
86.93 Outlays from discretionary
balances........................ 5 5 8
--------- --------- ----------
87.00 Total outlays (gross)........... 51 52 32
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -1 -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 52 51 26
90.00 Outlays........................... 51 51 31
---------------------------------------------------------------------------

[[Page 127]]

The Resource Conservation and Development (RC&D) Program began in
February 1964 under authority of Section 102 of the Food and
Agricultural Act of 1962 (P.L. 87-703) and other Departmental
authorities. Sections 1528-1538 of the Agricultural and Food Act of 1981
have replaced these authorities. This act authorized a program to
encourage and improve the capability of State and local units of
government and local nonprofit organizations in rural areas to plan,
develop, and implement programs for resource conservation and
development. Through the establishment of RC&D areas, led by a council,
the program establishes or improves coordination systems in rural
communities and builds rural community leadership skills to effectively
utilize Federal, State and local programs for the communities' benefit.
The Farm Security and Rural Investment Act of 2002 (P.L. 107-171)
permanently reauthorized RC&D.

Designated RC&D areas are provided technical assistance to help
States and local units of government prepare plans for resource
development and economic improvement and to plan and install community-
related conservation projects. Financial contributions, loans, and other
Federal assistance may be used to help carry out projects specified in
RC&D area plans. These coordinators help the area councils develop plans
and proposals to compete for financial assistance from other Federal,
State and private sources.

The 2006 Budget proposes new policy for the RC&D Program that phases
out Federal support for the local planning areas after 20 years of
funding support. At that point, these local communities should have the
experience and capacity to identify, plan for, and address their
priorities. This policy would cancel Federal support for 189 RC&D areas
in the 2006 Budget. This policy is based on a finding that the program
is duplicative of other USDA and Federal resource conservation and rural
development programs. Also, the program does not prioritize and target
funding based on need or performance.

The following tabulation shows the status of RC&D areas authorized
to receive technical and financial assistance.

MAIN WORKLOAD FACTORS

2004 actual 2005 est. 2006 est.
Areas funded at beginning of year... 375 375 186
Areas funded at end of year......... 375 375 186
Project plans adopted............... 2,023 2,000 1,000
Projects completed.................. 4,586 3,000 1,500

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 31 30 15
11.3 Other than full-time permanent 1 1 1
--------- --------- ----------
11.9 Total personnel compensation 32 31 16
12.1 Civilian personnel benefits..... 8 7 4
21.0 Travel and transportation of
persons....................... 1 1 1
23.2 Rental payments to others....... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 2 2 1
25.2 Other services.................. 7 7 3
26.0 Supplies and materials.......... 1 1
31.0 Equipment....................... 1 1
--------- --------- ----------
99.0 Direct obligations............ 53 51 26
99.0 Reimbursable obligations.......... 1 1
--------- --------- ----------
99.9 Total new obligations........... 53 52 27
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1010-0-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 515 498 243
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 2 3 3
---------------------------------------------------------------------------

Biomass Research and Development

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Biomass Research and Development.. 14 14 12
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 14 14 12
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1
22.00 New budget authority (gross)...... 14 14 12
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 14 15 13
23.95 Total new obligations............. -14 -14 -12
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1 1 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.35 Appropriation permanently
reduced....................... -2
Mandatory:

62.00 Transferred from other accounts. 14 14 14
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 14 14 12
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 14 25 25
73.10 Total new obligations............. 14 14 12
73.20 Total outlays (gross)............. -3 -14 -12
--------- --------- ----------
74.40 Obligated balance, end of year.. 25 25 25
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -2
86.97 Outlays from new mandatory
authority....................... 3 14 14
--------- --------- ----------
87.00 Total outlays (gross)........... 3 14 12
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 14 14 12
90.00 Outlays........................... 3 14 12
---------------------------------------------------------------------------

Biomass Research and Development is authorized by the Biomass
Research and Development Act of 2000. The program provides competitive
grants for research, development, and demonstration to encourage
innovation and development related to biomass, and improved
commercialization of biobased products and energy. USDA and the
Department of Energy jointly administer the program.

Current priorities focus on the following: feedstock development and
production; biobased products emphasizing environmental and economic
performance; integrated resource management and biomass use; and
effective and targeted incentive systems for biomass commercialization
and adoption.

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1003-0-1-271 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 2 2 2
---------------------------------------------------------------------------

Great Plains Conservation Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2268-0-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 2

[[Page 128]]

22.00 New budget authority (gross)...... -2
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance permanently
reduced....................... -2
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1
73.20 Total outlays (gross)............. 1
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -1
86.93 Outlays from discretionary
balances........................ 1 -1
--------- --------- ----------
87.00 Total outlays (gross)........... -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -2
90.00 Outlays........................... -1
---------------------------------------------------------------------------

The 1996 Farm Bill combined the authority for this and several other
conservation programs into the Environmental Quality Incentives Program.
Prior-year account balances are maintained in this account until
expended.

This program provides cost-share assistance to participating
landowners or operators in the Great Plains area in the development and
installation of long-term conservation plans and practices for their
land under contracts entered into in prior years. It is a voluntary
program in 556 designated counties of 10 Great Plains States. Contracts
with individual landowners range in time from 3 to 10 years.

MAIN WORKLOAD FACTORS

2004 actual 2005 est. 2006 est.
Program participants:
Number of contracts serviced
during year..................... 395 222 111
Number of acres under contracts... 1,567,600 641,748 320,790

Co-landowners or operators finance the entire cost of installing
recurring management-type practices and pay a specified part of the
cost-shared practices installed on their land. Program regulations
provide that cost-share rates offered in any contract cannot exceed 80
percent of the cost of installing eligible practices within the
designated county. There is a cost-sharing limitation of $35,000 for any
contract.

Forestry Incentives Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3336-0-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct Program Activity........... 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 4 5
22.00 New budget authority (gross)...... -5
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 6
23.95 Total new obligations............. -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance permanently
reduced....................... -5
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 10 7 6
73.10 Total new obligations............. 1
73.20 Total outlays (gross)............. -2 -1 2
73.45 Recoveries of prior year
obligations..................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 7 6 8
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -1
86.93 Outlays from discretionary
balances........................ 2 2 -2
--------- --------- ----------
87.00 Total outlays (gross)........... 2 1 -2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -5
90.00 Outlays........................... 2 1 -2
---------------------------------------------------------------------------

No funds are proposed for the Forestry Incentives Program (FIP). The
FIP was not reauthorized by the Farm Security and Rural Investment Act
of 2002 (P.L. 107-171). Prior-year account balances are maintained in
this account until expended.

FIP shares up to 65 percent of the cost of tree planting and timber
stand improvement. The percentage cost-shared depends on the rate set in
a particular State and county by NRCS, after consulting with the State
forester. The program is available in designated counties based on a
Forest Service survey of total eligible private timberland available for
production of timber products. Technical assistance is provided by the
Forest Service.

Water Bank Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3320-0-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1
22.00 New budget authority (gross)...... -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance permanently
reduced....................... -1
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2 2 1
73.20 Total outlays (gross)............. -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 2 1 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -1
90.00 Outlays........................... 1
---------------------------------------------------------------------------

The objectives of the Water Bank Program are to conserve water;
preserve, maintain, and improve the Nation's wetlands; increase
waterfowl habitat in migratory waterfowl nesting, breeding, and feeding
areas in the United States; and secure recreational and environmental
benefits for the Nation. The program was authorized by the Water Bank
Act of 1970, as amended by Public Law 96-182, approved January 2, 1980.
Funding for the expiring 1985 Water Bank agreements were transferred
from the Wetlands Reserve Program 1995 appro

[[Page 129]]

priation to this account as authorized under the Water Bank Extension
Act of 1994. The 2006 Budget does not request program funding.

Colorado River Basin Salinity Control Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3318-0-1-304 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct Program Activity........... 1
--------- --------- ----------
10.00 Total new obligations (object
class 99.5)................... 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1
23.95 Total new obligations............. -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 1
73.20 Total outlays (gross)............. -1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 1
---------------------------------------------------------------------------

The Colorado River Basin Salinity Control Program (CRBSC), was
authorized under section 202(c) of Title II of the Colorado River Basin
Salinity Control Act, as amended by section 334, subtitle D, Title III
of the Federal Agriculture Improvement Act (FAIR Act) of 1996. The FAIR
Act, combined authority of the Agricultural Conservation Program (ACP),
Water Quality Incentive Program (WQIP), Great Plains Conservation
Program (GPCP), and the Colorado River Basin Salinity Control Program
(CRBSC), into the Environmental Quality Incentives Program (EQIP). The
FAIR Act also repealed CRBSC authority, while maintaining program
account balances until expended.

Beginning in 1996, EQIP was implemented on an interim program level
for CRBSC. Program funding provided cost-share assistance to landowners
and others in the Colorado River Basin States to include: Colorado, Utah
and Wyoming. The program's main objective is to enhance the supply and
quality of water in the Colorado River for delivery to downstream users
in the U.S. and Mexico.

Wetlands Reserve Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1080-0-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.03 Technical Assistance.............. 1
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 1 1
23.95 Total new obligations............. -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1 1 1
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2 3 3
73.10 Total new obligations............. 1
73.20 Total outlays (gross)............. -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 3 3 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 1
---------------------------------------------------------------------------

The Wetlands Reserve Program (WRP) is authorized by Section 1237 of
the Food Security Act of 1985 (P.L. 99-198), as amended by the Food,
Agriculture, Conservation and Trade Act of 1990 (P.L. 101-624), the
Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66), the Federal
Agriculture Improvement and Reform Act of 1996 (P.L. 104-127), the
Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriation Act, 2001 (P.L. 106-387), and the Farm
Security and Rural Investment Act of 2002 (P.L. 107-171).

Information displayed in this section represents unobligated
balances from the non-CCC account in which WRP was funded prior to the
1996 Farm Bill.

Wildlife Habitat Incentives Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3322-0-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 2 2
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2 2 2
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 2 2 2
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 19 16 14
73.20 Total outlays (gross)............. -2 -2 -2
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 16 14 12
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 2 2 2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 2 2 2
---------------------------------------------------------------------------

Section 1240N of the Food Security Act of 1985, as amended by
Section 2502 of the Farm Security and Rural Investment Act of 2002 (2002
Farm Bill), authorized the Wildlife Habitat Incentives Program (WHIP) as
a voluntary approach to improving wildlife habitat in our nation. The
Natural Resources Conservation Service (NRCS) provides program
administration for WHIP.

WHIP is a voluntary program that provides assistance to eligible
participants to develop upland wildlife, wetland wildlife, threatened
and endangered species, fish and other types of wildlife habitat in an
environmentally beneficial and cost effective manner. The purpose of the
program is to create high-quality wildlife habitats that support
wildlife populations of local, state, and national significance.

WHIP supports the USDA strategic plan goal to maintain and enhance
the nation's natural resources and the environment. Although the primary
purpose of the program is wildlife habitat development and enhancement,
the benefits are not limited to wildlife. The practices are often
compatible with and beneficial to farming and ranching enterprises. Some
practices enhance farm profitability by improving grazing conditions,
reducing management expenses, and by producing non-crop income from the
lease of rights to harvest and observe wild game and fish. The program
has been utilized to control invasive species, re-establish native
vegeta

[[Page 130]]

tion, manage non-industrial forestland, stabilize stream banks, protect,
develop or enhance unique habitats, and remove barriers that impede
migration of certain species.

NRCS and the participant enter into a cost-share agreement for
wildlife habitat development. This agreement generally lasts from 5 to
10 years from the date the agreement is signed. WHIP funds are
distributed to state NRCS offices based on state wildlife habitat
priorities. Partnerships with other entities are preferred: WHIP may be
implemented in cooperation with other Federal, State, or local agencies,
conservation districts, or private conservation groups. State priorities
are developed through a locally led process to identify wildlife
resource needs and are finalized in consultation with the State
Technical Committee.

The 2002 Farm Bill reauthorized WHIP through 2007. Funding for WHIP
is now provided through NRCS's Farm Security and Rural Investment
Account. Information displayed in this section represents unobligated
balances remaining from the 1996 Farm Bill only.

Agricultural Resource Conservation Demonstration Program Account

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2086-0-1-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Guaranteed loan downward reestimate subsidy
budget authority:
237001Downward reestimate subsidy budget
authority....................... -1
--------- --------- ----------
237901Total downward reestimate subsidy
budget authority................ -1
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this account
records, for this program, the subsidy costs associated with the loan
guarantees committed in 1992 and beyond (including modifications of loan
guarantees that resulted from obligations or commitments in any year),
as well as administrative expenses of this program. The subsidy amounts
are estimated on a present value basis; the administrative expenses are
estimated on a cash basis.

Credit accounts:

Agricultural Resource Conservation Demonstration Guaranteed Loan
Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Interest Payment to Treasury...... 1
08.02 Downward Reestimate Payment to
receipt account................. 1
--------- --------- ----------
10.00 Total new obligations........... 1 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 1
23.95 Total new obligations............. -1 -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 1 1
73.20 Total financing disbursements
(gross)......................... -1
87.00 Total financing disbursements
(gross)......................... 1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... 1
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4177-0-3-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
--------- --------- ----------
2150 Total guaranteed loan
commitments...................
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 12
2251 Repayments and prepayments........ -12
--------- --------- ----------
2290 Outstanding, end of year........
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year..
---------------------------------------------------------------------------

This program, also known as ``Farms for the Future,'' provides
guarantees and interest assistance on loans made to State trust funds,
who in turn finance acquisitions to preserve farmland in selected
states. No guarantees have been made since 1993.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4177-0-3-351

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
1101

Federal assets: Fund balances with Treasury

1999

Total assets

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

2999

Total liabilities

4999

Total liabilities and net position

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

Trust Funds

Miscellaneous Contributed Funds

Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8210-0-7-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ 5 5 5
Receipts:
02.20 Miscellaneous contributed funds... 1 1 1
--------- --------- ----------
04.00 Total: Balances and collections... 6 6 6
Appropriations:
05.01 National Agricultural Statistics
Service......................... -1 -1 -1
--------- --------- ----------
07.99 Balance, end of year.............. 5 5 5
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Program Activity........... 4 5
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 4 5
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 8 5
23.95 Total new obligations............. -4 -5
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 5
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -1 1 3
73.10 Total new obligations............. 4 5

[[Page 131]]

73.20 Total outlays (gross)............. -1 -3 -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 1 3 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 1 3 3
---------------------------------------------------------------------------

Funds received from State and local organizations, and others are
available for work under cooperative agreements for soil survey,
watershed protection, and resource conservation and development
activities.

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-8210-0-7-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 1 1 1
---------------------------------------------------------------------------

RURAL DEVELOPMENT

Federal Funds

General and special funds:

Salaries and Expenses

(including transfers of funds)

For necessary expenses for carrying out the administration and
implementation of programs in the Rural Development mission area,
including activities with institutions concerning the development and
operation of agricultural cooperatives; and for cooperative agreements;
[$148,452,000] $167,849,000: Provided, [That of funds appropriated under
this title for salaries and expenses, not less than $5,000,000 shall be
used to complete the consolidation of Rural Development activities in
St. Louis, to the Goodfellow facility also in St. Louis: Provided
further,] That notwithstanding any other provision of law, funds
appropriated under this section may be used for advertising and
promotional activities that support the Rural Development mission area:
Provided further, That not more than $10,000 may be expended to provide
modest nonmonetary awards to non-USDA employees: Provided further, That
any balances available from prior years for the Rural Utilities Service,
Rural Housing Service, and the Rural Business-Cooperative Service
salaries and expenses accounts shall be transferred to and merged with
this appropriation. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 141 147 168
09.01 Reimbursable program.............. 499 490 515
--------- --------- ----------
10.00 Total new obligations........... 640 637 683
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 641 637 683
23.95 Total new obligations............. -640 -637 -683
23.98 Unobligated balance expiring or
withdrawn....................... -2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 142 148 168
40.35 Appropriation permanently
reduced....................... -1 -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 141 147 168
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 500 490 515
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 641 637 683
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 131 130 129
73.10 Total new obligations............. 640 637 683
73.20 Total outlays (gross)............. -633 -638 -676
73.40 Adjustments in expired accounts
(net)........................... -9
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 1
--------- --------- ----------
74.40 Obligated balance, end of year.. 130 129 136
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 552 535 574
86.93 Outlays from discretionary
balances........................ 81 103 102
--------- --------- ----------
87.00 Total outlays (gross)........... 633 638 676
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -501 -490 -515
Against gross budget authority only:

88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 141 147 168
90.00 Outlays........................... 132 148 161
---------------------------------------------------------------------------

Since 2001, Rural Development has had a consolidated Salaries and
Expenses account to administer all Rural Development programs, including
programs administered by the Rural Utilities Service (RUS), the Rural
Housing Service (RHS), and the Rural Business-Cooperative Service (RBS).

RUS provides grants, direct loans and loan guarantees to suppliers
of electric, telecommunications (for general purpose and for distance
learning/telemedicine), and water and wastewater services in rural
areas. Through the water and wastewater program, RUS also provides
technical assistance. The programs are administered in Washington, DC.
The Rural Development field office staff performs the services related
to the water and wastewater grant and loan programs. For the electric
and telecommunication loans, general field representatives visit
borrowers periodically and maintain liaisons between the borrowers and
headquarters.

RHS was formed from the Rural Housing section of the Farmers Home
Administration and the Community Facilities Division of the Rural
Development Administration. RHS delivers rural housing and community
facility programs through a system of State, area, and local offices.

RBS includes programs from the former Rural Development
Administration, rural development programs from the former Rural
Electrification Administration, and the Agricultural Cooperative
Service. This agency delivers loan and grant programs, as well as
technical assistance, to cooperatives and rural businesses.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 79 82 99
11.3 Other than full-time permanent 1 2 1
11.5 Other personnel compensation.. 1 1 1
--------- --------- ----------
11.9 Total personnel compensation 81 85 101
12.1 Civilian personnel benefits..... 20 23 26
21.0 Travel and transportation of
persons....................... 3 4 4
23.1 Rental payments to GSA.......... 6 5 6
23.2 Rental payments to others....... 2 3 1
23.3 Communications, utilities, and
miscellaneous charges......... 5 5 3
24.0 Printing and reproduction....... 1 1 1
25.1 Advisory and assistance services 8 1
25.2 Other services.................. 1 1 12
25.3 Other purchases of goods and
services from Government
accounts...................... 6 5
25.4 Operation and maintenance of
facilities.................... 2 2 2
25.5 Research and development
contracts..................... 5 5 1
25.6 Medical care.................... 3 3

[[Page 132]]

25.7 Operation and maintenance of
equipment..................... 1 2
26.0 Supplies and materials.......... 2 2 1
31.0 Equipment....................... 1 1 1
42.0 Insurance claims and indemnities 1 1
--------- --------- ----------
99.0 Direct obligations............ 141 147 168
99.0 Reimbursable obligations.......... 499 490 515
--------- --------- ----------
99.9 Total new obligations........... 640 637 683
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0403-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 1,399 1,686 1,493
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 5,267 5,186 5,379
---------------------------------------------------------------------------

Rural Community Advancement Program

(including transfers of funds)

For the cost of direct loans, loan guarantees, and grants, as
authorized by 7 U.S.C. 1926, 1926a, 1926c, 1926d, and 1932, except for
sections 381E-H and 381N of the Consolidated Farm and Rural Development
Act, [$716,049,000] $521,689,000, to remain available until expended, of
which [$89,180,000] $27,806,000 shall be for rural community programs
described in section 381E(d)(1) of such Act; of which [$552,689,000]
$449,662,000 shall be for the rural utilities programs described in
sections 381E(d)(2), 306C(a)(2), and 306D of such Act[, of which not to
exceed $500,000 shall be available for the rural utilities program
described in section 306(a)(2)(B) of such Act, and of which not to
exceed $1,000,000 shall be available for the rural utilities program
described in section 306E of such Act]; and of which [$74,180,000]
$44,221,000 shall be for the rural business and cooperative development
programs described in sections 381E(d)(3) and 310B(f) of such Act:
Provided, That of the total amount appropriated in this account,
[$25,000,000] $9,000,000 shall be for loans and grants to benefit
Federally Recognized Native American Tribes, including grants for
drinking water and waste disposal systems pursuant to section 306C of
such Act, [of which $4,500,000 shall be available for community
facilities grants to tribal colleges, as authorized by section
306(a)(19) of the Consolidated Farm and Rural Development Act, and] of
which $250,000 shall be available for a grant to a qualified national
organization to provide technical assistance for rural transportation in
order to promote economic development: [Provided further, That of the
amount appropriated for rural community programs, $6,350,000 shall be
available for a Rural Community Development Initiative: Provided
further, That such funds shall be used solely to develop the capacity
and ability of private, nonprofit community-based housing and community
development organizations, low-income rural communities, and Federally
Recognized Native American Tribes to undertake projects to improve
housing, community facilities, community and economic development
projects in rural areas: Provided further, That such funds shall be made
available to qualified private, nonprofit and public intermediary
organizations proposing to carry out a program of financial and
technical assistance: Provided further, That such intermediary
organizations shall provide matching funds from other sources, including
Federal funds for related activities, in an amount not less than funds
provided: Provided further, That of the amount appropriated for the
rural business and cooperative development programs, not to exceed
$500,000 shall be made available for a grant to a qualified national
organization to provide technical assistance for rural transportation in
order to promote economic development; $1,000,000 shall be for grants to
the Delta Regional Authority (7 U.S.C. 1921 et seq.) for any purpose
under this heading:] Provided further, That of the amount appropriated
for rural utilities programs, not to exceed [$25,000,000] $11,800,000
shall be for water and waste disposal systems to benefit the Colonias
along the United States/Mexico border, including grants pursuant to
section 306C of such Act; not to exceed [$26,000,000] $11,800,000 shall
be for water and waste disposal systems for rural and native villages in
Alaska pursuant to section 306D of such Act, with up to 2 percent
available to administer the program and/or improve interagency
coordination may be transferred to and merged with the appropriation for
``Rural Development, Salaries and Expenses''[, of which $100,000 shall
be provided to develop a regional system for centralized billing,
operation, and management of rural water and sewer utilities through
regional cooperatives, of which 25 percent shall be provided for water
and sewer projects in regional hubs, and the State of Alaska shall
provide a 25 percent cost share, and grantees may use up to 5 percent of
grant funds, not to exceed $35,000 per community, for the completion of
comprehensive community safe water plans]; not to exceed [$18,250,000]
$16,215,000 shall be for technical assistance grants for rural water and
waste systems pursuant to section 306(a)(14) of such Act[, of which
$5,600,000 shall be for Rural Community Assistance Programs and not less
than $800,000 shall be for a qualified national Native American
organization to provide technical assistance for rural water systems for
tribal communities]; and not to exceed [$13,500,000] $9,500,000 shall be
for contracting with qualified national organizations for a circuit
rider program to provide technical assistance for rural water systems:
Provided further, That of the total amount appropriated, not to exceed
[$22,166,000] $13,367,000 shall be available through June 30, [2005]
2006, for authorized empowerment zones and enterprise communities and
communities designated by the Secretary of Agriculture as Rural Economic
Area Partnership Zones; of which [$1,081,000] $1,067,000 shall be for
the rural community programs described in section 381E(d)(1) of such
Act, of which [$12,582,000] $12,000,000 shall be for the rural utilities
programs described in section 381E(d)(2) of such Act, and of which
[$8,503,000] $300,000 shall be for the rural business and cooperative
development programs described in section 381E(d)(3) of such Act:
[Provided further, That of the amount appropriated for rural community
programs, not to exceed $21,000,000 shall be to provide grants for
facilities in rural communities with extreme unemployment and severe
economic depression (Public Law 106-387), with 5 percent for
administration and capacity building in the State rural development
offices: Provided further, That of the amount appropriated, $28,000,000
shall be transferred to and merged with the ``Rural Utilities Service,
High Energy Cost Grants Account'' to provide grants authorized under
section 19 of the Rural Electrification Act of 1936 (7 U.S.C. 918a):]
Provided further, That any prior year balances for high cost energy
grants authorized by section 19 of the Rural Electrification Act of 1936
(7 U.S.C. 901(19)) shall be transferred to and merged with the ``Rural
Utilities Service, High Energy Costs Grants Account''. (Agriculture,
Rural Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)
[For an additional amount for the ``Rural Community Advancement
Program'', $68,000,000, to remain available until expended: Provided,
That $50,000,000 shall be available for water and waste disposal grants
as authorized by 7 U.S.C. 1926(a): Provided further, That $18,000,000
shall be for the cost of community facility direct loans and grants as
authorized by 7 U.S.C. 1926(a): Provided further, That loans and grants
under this heading shall be available for projects in communities
affected by hurricanes and tropical storms in calendar year 2003 or
2004: Provided further, That the amounts provided under this heading are
designated as an emergency requirement pursuant to section 402 of S.
Con. Res. 95 (108th Congress), as made applicable to the House of
Representatives by H. Res. 649 (108th Congress) and applicable to the
Senate by section 14007 of Public Law 108-287.] (Emergency Supplemental
Appropriations for Hurricane Disasters Assistance Act, 2005.)

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0400-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
0102 Negative subsidies/subsidy
reestimates..................... 102
0104 Negative subsidies/subsidy
reestimates..................... 19
0106 Negative subsidies/subsidy
reestimates..................... 18
0107 Negative subsidies/subsidy
reestimates..................... 1
---------------------------------------------------------------------------

[[Page 133]]

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 30 113 79
00.02 Guaranteed loan subsidy........... 47 32 45
00.05 Reestimate of Direct Loan Subsidy. 36
00.06 Interest on Reestimates of Direct
Loan Subsidy.................... 9
00.07 Reestimates of Guaranteed Loan
Subsidy......................... 35
00.08 Interest on Reestimate of
Guaranteed Loan Subsidy......... 9
00.11 Water and waste disposal systems
grants.......................... 554 448 377
00.12 Water and waste disposal systems
emergency supplemental grants... 50
00.13 Emergency and imminent community
water assistance grants......... 15 23
00.14 Solid waste management grants..... 3 4 4
00.15 Community facility grants......... 21 30 17
00.16 Community facility emergency
supplemental grants............. 13
00.18 Economic impact initiative grants. 23 21
00.20 Rural business enterprise grants.. 50 44
00.21 Rural business opportunity grants. 3 6
00.26 Rural Community Development
Initiative Grants............... 7 13
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 842 797 522
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 38 42
22.00 New budget authority (gross)...... 814 755 522
22.10 Resources available from
recoveries of prior year
obligations..................... 32
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 884 797 522
23.95 Total new obligations............. -842 -797 -522
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 42
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 757 721 522
40.00 Appropriation, Hurricane
Supplemental.................. 68
40.35 Appropriation permanently
reduced....................... -4 -6
41.00 Transferred to other accounts... -28 -28
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 725 755 522
Mandatory:

60.00 Appropriation................... 89
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 814 755 522
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2,734 2,637 2,536
73.10 Total new obligations............. 842 797 522
73.20 Total outlays (gross)............. -906 -898 -842
73.40 Adjustments in expired accounts
(net)........................... -1
73.45 Recoveries of prior year
obligations..................... -32
--------- --------- ----------
74.40 Obligated balance, end of year.. 2,637 2,536 2,216
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 78 55 44
86.93 Outlays from discretionary
balances........................ 637 771 755
86.97 Outlays from new mandatory
authority....................... 89
86.98 Outlays from mandatory balances... 102 72 43
--------- --------- ----------
87.00 Total outlays (gross)........... 906 898 842
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 814 755 522
90.00 Outlays........................... 906 898 842
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0400-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Direct water and waste disposal... 895 992 1,000
115002Direct community facility......... 500 433 300
--------- --------- ----------
115901Total direct loan levels.......... 1,395 1,425 1,300
Direct loan subsidy (in percent):
132001Direct water and waste disposal... 3.33 9.00 6.91
132002Direct community facility......... -0.71 4.05 3.35
--------- --------- ----------
132901Weighted average subsidy rate..... 1.88 7.50 6.09
Direct loan subsidy budget authority:
133001Direct water and waste disposal... 30 89 69
133002Direct community facility......... -3 18 10
--------- --------- ----------
133901Total subsidy budget authority.... 27 107 79
Direct loan subsidy outlays:
134001Direct water and waste disposal... 71 80 72
134002Direct community facility......... 14 14 14
--------- --------- ----------
134901Total subsidy outlays............. 85 94 86
Direct loan upward reestimate subsidy budget
authority:
135001Direct water and waste disposal...
135002Direct community facility......... 1
135003Direct business and industry...... 45
--------- --------- ----------
135901Total upward reestimate budget
authority....................... 46
Direct loan downward reestimate subsidy budget
authority:
137001Direct water and waste disposal... -101
137002Direct community facility......... -18
137003Direct business and industry......
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -119
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
215001Water and waste disposal loan
guarantees...................... 41 75 75
215002Community facility loan guarantees 205 210 210
215003Business and industry loan
guarantees...................... 971 600 899
--------- --------- ----------
215901Total loan guarantee levels....... 1,217 885 1,184
Guaranteed loan subsidy (in percent):
232001Water and waste disposal loan
guarantees...................... -0.90 -0.90 -0.90
232002Community facility loan guarantees -0.60 0.09 0.36
232003Business and industry loan
guarantees...................... 4.86 5.03 4.92
--------- --------- ----------
232901Weighted average subsidy rate..... 3.75 3.36 3.74
Guaranteed loan subsidy budget authority:
233001Water and waste disposal loan
guarantees...................... -1 -1
233002Community facility loan guarantees -1 1
233003Business and industry loan
guarantees...................... 47 30 44
--------- --------- ----------
233901Total subsidy budget authority.... 46 29 44
Guaranteed loan subsidy outlays:
234002Community facility loan guarantees -1
234003Business and industry loan
guarantees...................... 42 13 29
--------- --------- ----------
234901Total subsidy outlays............. 41 13 29
Guaranteed loan upward reestimate subsidy
budget authority:
235002Community facility loan guarantees 3
235003Business and industry loan
guarantees...................... 41
--------- --------- ----------
235901Total upward reestimate budget
authority....................... 44
Guaranteed loan downward reestimate subsidy
budget authority:
237001Downward reestimate subsidy budget
authority....................... -20
--------- --------- ----------
237901Total downward reestimate subsidy
budget authority................ -20
---------------------------------------------------------------------------

This account consolidates under the Rural Community Advancement
Program (RCAP) funding for the direct and guaranteed water and waste
disposal loans, water and waste disposal grants, emergency community
water assistance grants, solid waste management grants, direct and
guaranteed community facility loans, community facility grants, direct
and guaranteed business and industry loans, rural business enterprise
grants, and rural business opportunity grants. This is in accordance
with the provisions set forth in the Federal Agriculture Improvement and
Reform Act of 1996, as amended, Public Law 104-127 (the 1996 Act).
Consolidating funding for these loan and grant programs under RCAP
provides greater flexibility to tailor financial assistance to applicant
needs. Funding in 2006 for all programs is projected to be near or
slightly above the 2006 enacted level except for guaranteed business and
industry loans.

RCAP is composed of the following three funding streams: Rural
Community Facilities, Rural Utilities, and Rural Business and
Cooperative Development. Funds for Native American Communities are
provided as part of the whole amount appropriated for these streams as
part of the Native Americans Initiative. The funds are allocated to two
of the funding streams.

[[Page 134]]

Water and waste disposal loans are authorized under 7 U.S.C. 1926.
The program provides direct loans to municipalities, counties, special
purpose districts, certain Indian Tribes, and non-profit corporations to
develop water and waste disposal systems in rural areas and towns with
populations of less than 10,000. The program also guarantees water and
waste disposal loans made by banks and other eligible lenders. Total
loan level is projected to be $1 billion for these programs in 2006.

Water and waste disposal grants are authorized under Section
306(a)(2) of the Consolidated Farm and Rural Development Act, as
amended. Grants are authorized to be made to associations, including
nonprofit corporations, municipalities, counties, public and quasi-
public agencies, and certain Indian tribes. The grants can be used to
finance development, storage, treatment, purification, or distribution
of water or the collection, treatment, or disposal of waste in rural
areas and cities or towns with populations of less than 10,000. The
amount of any development grant may not exceed 75 percent of the
eligible development cost of the project. $377 million is projected for
this program in 2006.

Emergency community water assistance grants are authorized under
Section 306A of the Consolidated Farm and Rural Development Act, as
amended. Grants are made to public bodies and nonprofit organizations
for construction or extension of water lines, repair or maintenance of
existing systems, replacement of equipment, and payment of costs to
correct emergency situations. These grants are funded on an as needed
basis using RCAP flexibility of funds authorization.

Solid waste management grants are authorized under Section 310B(b)
of the Consolidated Farm and Rural Development Act, as amended. Grants
are made to non-profit organizations to provide regional technical
assistance to local and regional governments and related agencies for
the purpose of reducing or eliminating pollution of water resources, and
for improving the planning and management of solid waste disposal
facilities. $3.5 million is projected for this program in 2006.

Community facility loans and grants are authorized under sections
306(a)(1) and 306(a)(19) of the Consolidated Farm and Rural Development
Act, as amended. Loans are provided to local governments and nonprofit
organizations for the construction and improvement of community
facilities providing essential services in rural areas of not more than
20,000 population, such as hospitals and fire stations. Total program
level in 2006 is projected to be $527 million.

Business and industry guaranteed and direct loans are authorized
under section 310B(a)(1) of the Consolidated Farm and Rural Development,
as amended. These loans are made to public, private or cooperative
organizations, Indian tribes or tribal groups, corporate entities, or
individuals for the purpose of improving the economic climate in rural
areas. For direct loans no funds were requested or provided since 2002,
and no funds are requested in 2006. 2006 projections for loan guarantees
are $899 million.

No funding is provided in this account for the rural business
enterprise grants or the rural business opportunity grants. For grants
like these that are for community organizations to stimulate economic
development, the FY 2006 Budget proposes to consolidate them into a new
economic and community development program to be administered by the
Department of Commerce. The new program would be designed to achieve
greater results and focus on communities most in need of assistance.

Northern Great Plains Regional Authority

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0404-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 2 1
23.98 Unobligated balance expiring or
withdrawn....................... -1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 2 1
----------------------------------------------------------------------------

Change in obligated balances:
73.20 Total outlays (gross)............. -1 -1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2 1
90.00 Outlays........................... 1
---------------------------------------------------------------------------

The Northern Great Plains Regional Authority was established under
section 6028 of the Farm Security and Rural Investment Act of 2002
Public Law 107-171. This account is for the Federal share of the
administrative expenses associated with the Northern Great Plains
Regional Authority.

RURAL HOUSING SERVICE

Federal Funds

General and special funds:

Rural Housing Assistance Grants

For grants and contracts for very low-income housing repair,
supervisory and technical assistance, compensation for construction
defects, and rural housing preservation made by the Rural Housing
Service, as authorized by 42 U.S.C. 1474, 1479(c), 1490e, and 1490m,
[$43,992,000] $41,000,000, to remain available until expended[:
Provided, That $3,000,000 shall be made available for loans to private
non-profit organizations, or such non-profit organizations' affiliate
loan funds and State housing finance agencies, to carry out a housing
demonstration program to provide revolving loans for the preservation of
low-income multi-family housing projects: Provided further, That loans
under such demonstration program shall have an interest rate of not more
than 1 percent direct loan to the recipient: Provided further, That the
Secretary may defer the interest and principal payment to the Rural
Housing Service for up to 3 years and the term of such loans shall not
exceed 30 years: Provided further, That of the total amount
appropriated, $1,800,000] of which $1,200,000 shall be available through
June 30, [2005] 2006, for authorized empowerment zones and enterprise
communities and communities designated by the Secretary of Agriculture
as Rural Economic Area Partnership Zones. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)
[For an additional amount for ``Rural Housing Assistance Grants'',
$13,000,000, to remain available until expended, of which $8,000,000
shall be for grants and contracts for very low-income housing repair,
made by the Rural Housing Service, as authorized by 42 U.S.C. 1474, and
of which $5,000,000 shall be for domestic farm labor housing grants and
contracts, as authorized by 42 U.S.C. 1486: Provided, That of the funds
made available for domestic farm labor housing grants, the Secretary may
use up to $3,000,000 to provide grants authorized under 42 U.S.C.
5177a(a): Provided further, That such grants and contracts under this
heading shall only be available for projects in communities affected by
hurricanes and tropical storms in calendar year 2003 or 2004: Provided
further, That the amounts provided under this heading are designated as
an emergency requirement pursuant to section 402 of S. Con. Res. 95
(108th Congress), as made applicable to the House of Representatives by
H. Res. 649 (108th Congress) and applicable to the Senate by section
14007 of Public Law 108-287.] (Emergency Supplemental Appropriations for
Hurricane Disasters Assistance Act, 2005.)

[[Page 135]]

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1953-0-1-604 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Domestic Farm Labor housing
natural disaster grants......... 5
00.03 Very low-income housing repair
grants.......................... 31 31 30
00.04 Very low-income housing repair
natural disaster grants......... 2 9
00.05 Supervisory and technical
assistance grants............... 2 1 1
00.06 Processing Workers Housing Grants. 8
00.07 Rural housing preservation grants. 9 9 10
00.09 Multi-Family Housing Preservation
Demo Revolving Fund............. 3
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 44 66 41
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 10 11 1
22.00 New budget authority (gross)...... 46 56 41
22.10 Resources available from
recoveries of prior year
obligations..................... 2
22.21 Unobligated balance transferred to
other accounts.................. -4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 54 67 42
23.95 Total new obligations............. -44 -66 -41
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 11 1 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 46 57 41
40.36 Unobligated balance permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 46 56 41
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 32 29 29
73.10 Total new obligations............. 44 66 41
73.20 Total outlays (gross)............. -45 -66 -48
73.45 Recoveries of prior year
obligations..................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 29 29 22
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 30 36 27
86.93 Outlays from discretionary
balances........................ 15 30 21
--------- --------- ----------
87.00 Total outlays (gross)........... 45 66 48
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 46 56 41
90.00 Outlays........................... 45 66 48
---------------------------------------------------------------------------

The rural housing for domestic farm labor grant program is
authorized under section 516 of the Housing Act of 1949, as amended.
This program was funded under this heading until 2001. Starting in 2001,
it is funded under the Farm Labor Program Account.

The very low-income housing repair grant program is authorized under
section 504 of the Housing Act of 1949, as amended. This grant program
enables very low-income elderly residents in rural areas to improve or
modernize their dwellings, to make the dwelling safer or more sanitary,
or to remove health and safety hazards. The Budget provides $30 million
for this program in 2006.

The supervisory and technical assistance grant program is carried
out under the provisions of section 509(f) and 525 of the Housing Act of
1949, as amended. Under section 509, grants are made to public and
private nonprofit organizations for packaging loan applications for
housing under sections 502, 504, 514/516, 515, and 533 of the Housing
Act of 1949, as amended. The assistance is to be directed to underserved
areas where at least 20 percent or more of the population is at or below
the poverty level, and at least 10 percent or more of the population
resides in substandard housing. Under section 525, grants are made to
public and private nonprofit organizations and other associations for
the developing, conducting, administering or coordinating of technical
and supervisory assistance programs to demonstrate the benefits of
Federal, State, and local housing programs for low-income families in
rural areas. The Budget provides $1 million for this program in 2006.

The rural housing preservation grant program is authorized under
section 533 of the Housing Act of 1949, as amended. Grants are made to
eligible nonprofit groups, Indian tribes, or government agencies for
rehabilitation of single family housing owned by low- and very low-
income families and the rehabilitation of rental and cooperative housing
for low- and very low-income families. $10 million is provided for this
program in 2006.

Farm Labor Program Account

For the cost of direct loans, grants, and contracts, as authorized
by 42 U.S.C. 1484 and 1486, [$34,118,000] $32,728,000, to remain
available until expended, for direct farm labor housing loans and
domestic farm labor housing grants and contracts. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 15 20 19
00.11 Farm labor housing grants......... 18 24 14
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 33 44 33
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 5 10
22.00 New budget authority (gross)...... 36 34 33
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 43 44 33
23.95 Total new obligations............. -33 -44 -33
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 10
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 36 34 33
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 88 104 123
73.10 Total new obligations............. 33 44 33
73.20 Total outlays (gross)............. -15 -25 -27
73.45 Recoveries of prior year
obligations..................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 104 123 129
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 15 25 27
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 36 34 33
90.00 Outlays........................... 15 25 27
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1954-0-1-604 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Farm Labor Program................ 36 38 42
--------- --------- ----------
115901Total direct loan levels.......... 36 38 42
Direct loan subsidy (in percent):
132001Farm Labor Program................ 42.73 47.06 44.59
--------- --------- ----------
132901Weighted average subsidy rate..... 42.73 47.06 44.59
Direct loan subsidy budget authority:
133001Farm Labor Program................ 15 18 19
--------- --------- ----------
133901Total subsidy budget authority.... 15 18 19
Direct loan subsidy outlays:
134001Farm Labor Program................ 10 7 9
--------- --------- ----------

[[Page 136]]

134901Total subsidy outlays............. 10 7 9
---------------------------------------------------------------------------

The account consists of direct farm labor housing loans and domestic
farm labor housing grants.

The direct farm labor loan program is authorized under section 514
and the rural housing for domestic farm labor grant program is
authorized under section 516 of the Housing Act of 1949, as amended. The
loans, grants, and contracts are made to public and private nonprofit
organizations for low-rent housing and related facilities for domestic
farm labor. Grants assistance may not exceed 90 percent of the cost of a
project. Loans and grants may be used for construction of new
structures, site acquisition and development, rehabilitation of existing
structures, and purchase of furnishings and equipment for dwellings,
dining halls, community rooms, and infirmaries. Total program level
provided in 2006 is $56 million ($14 million in grants and $42 million
in loan level).

Rental Assistance Program

For rental assistance agreements entered into or renewed pursuant to
the authority under section 521(a)(2) or agreements entered into in lieu
of debt forgiveness or payments for eligible households as authorized by
section 502(c)(5)(D) of the Housing Act of 1949, [$592,000,000]
$650,026,000; and, in addition, such sums as may be necessary, as
authorized by section 521(c) of the Act, to liquidate debt incurred
prior to fiscal year 1992 to carry out the rental assistance program
under section 521(a)(2) of the Act: Provided, That of this amount, up to
$5,900,000 [shall] may be available for debt forgiveness or payments for
eligible households as authorized by section 502(c)(5)(D) of the Act,
and not to exceed $20,000 per project for advances to nonprofit
organizations or public agencies to cover direct costs (other than
purchase price) incurred in purchasing projects pursuant to section
502(c)(5)(C) of the Act: Provided further, That agreements entered into
or renewed during the current fiscal year shall be funded for a four-
year period[: Provided further, That any unexpended balances remaining
at the end of such four-year agreements may be transferred and used for
the purposes of any debt reduction; maintenance, repair, or
rehabilitation of any existing projects; preservation; and rental
assistance activities authorized under title V of the Act], although the
life of any such agreement may be extended to fully utilize amounts
obligated. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0137-0-1-604 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct Program Activity........... 581 587 650
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 581 587 650
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 581 587 650
23.95 Total new obligations............. -581 -587 -650
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 584 592 650
40.00 Appropriation................... 60 60 59
40.35 Appropriation permanently
reduced....................... -3 -5
40.47 Portion substituted for
borrowing authority........... -60 -60 -59
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 581 587 650
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Unpaid obligations, appropriation,
start of year................... 2,789 2,593 2,732
73.10 Total new obligations............. 581 587 650
73.20 Total outlays (gross)............. -775 -448 -460
73.40 Adjustments in expired accounts
(net)........................... -1
--------- --------- ----------
74.40 Obligated balance,
appropriation, end of year.... 2,593 2,732 2,922
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 44 47 52
86.93 Outlays from discretionary
balances........................ 731 401 408
--------- --------- ----------
87.00 Total outlays (gross)........... 775 448 460
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 581 587 650
90.00 Outlays........................... 775 448 460
---------------------------------------------------------------------------

The rental assistance program is authorized under section 521(a)(2)
of the Housing Act of 1949, as amended, and is designed to reduce rents
paid by very low-income and low-income families living in RHS-financed
rural rental and farm labor housing projects. Funding under this account
is provided for renewals of existing rental assistance contracts,
assistance for newly constructed units financed by the section 515 rural
rental and cooperative housing program or the 514/516 farm labor housing
loan and grant programs, and for additional servicing assistance for
existing projects. Assistance is also provided in lieu of debt
forgiveness or payments for eligible households to subsidize tenant
rents in projects purchased by eligible nonprofit organizations or
public agencies as authorized by section 502(c)(5)(D) of the Act.

From 1978 through 1991, the rental assistance program was funded
under the Rural Housing Insurance Fund. Beginning in 1992, pursuant to
Credit Reform, a separate grant account was established for this
program.

Rural Housing Voucher Program

For the rural housing voucher program, authorized by section 542 of
the Housing Act of 1949, but notwithstanding subsection (b) of such
section, $214,000,000, to remain available until expended, of which up
to $10,000,000 may be transferred to and merged with ``Salaries And
Expenses,'' Rural Development, to be used only for administrative
expenses relating to the revitalization of USDA's multifamily housing
portfolio.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2002-0-1-604 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct Program Activity........... 214
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 214
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 214
23.95 Total new obligations............. -214
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 214
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1 1 1
73.10 Total new obligations............. 214
73.20 Total outlays (gross)............. -64
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 1 151
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 64
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 214
90.00 Outlays........................... 64
---------------------------------------------------------------------------

USDA's portfolio of multifamily housing projects provides housing
for nearly half a million low-income families, many

[[Page 137]]

of whom are elderly. Recent Federal court rulings allow projects that
received their financing prior to 1989 to prepay and leave the program.
A recent assessment of the capital and operating needs of the projects
indicated that about 10 percent of the projects have economically viable
prepayment potential and that about 46,000 tenants of these projects
risk substantial rent increases and possible loss of their housing if
these projects are prepaid. Current law allows USDA to assist these
families by providing them with letters of priority and vouchers which
have not been funded to date. The 2006 Budget includes $214 million for
USDA to establish a tenant protection program for this purpose. The 2006
Budget amends the current law to allow the number of vouchers issued to
exceed 5,000 and to allow vouchers to be used in places other than 515
projects. Further, USDA is exploring ways to address the capital needs
of those projects that stay in the program. USDA expects to develop a
comprehensive approach that would include an appropriate sharing of
costs with project sponsors, and tenant protection for residents who
would otherwise be adversely affected in a prepayment situation in 2005.

Prior year obligated balances reflect funding for rental assistance
for newly constructed units provided in limited amounts in 1984 and
1985. From 1986 through 1991 rental assistance for newly constructed
units, as well as existing rental assistance contract renewals and
additional servicing assistance for existing projects, had been funded
under the Rural Housing Insurance Fund. Beginning in 1992, pursuant to
Credit Reform, a separate grant account was established for the rental
assistance program.

Mutual and Self-Help Housing Grants

For grants and contracts pursuant to section 523(b)(1)(A) of the
Housing Act of 1949 (42 U.S.C. 1490c), $34,000,000, to remain available
until expended[: Provided, That of the total amount appropriated,
$1,000,000 shall be available through June 30, 2005, for authorized
empowerment zones and enterprise communities and communities designated
by the Secretary of Agriculture as Rural Economic Area Partnership
Zones]. (Agriculture, Rural Development, Food and Drug Administration,
and Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2006-0-1-604 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct Program Activity........... 35 42 34
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 35 42 34
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 9 8
22.00 New budget authority (gross)...... 34 34 34
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 44 42 34
23.95 Total new obligations............. -35 -42 -34
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 8
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 34 34 34
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 50 52 56
73.10 Total new obligations............. 35 42 34
73.20 Total outlays (gross)............. -32 -38 -38
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 52 56 52
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 6 6 6
86.93 Outlays from discretionary
balances........................ 26 32 32
--------- --------- ----------
87.00 Total outlays (gross)........... 32 38 38
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 34 34 34
90.00 Outlays........................... 32 38 38
---------------------------------------------------------------------------

This program is authorized under section 523 of the Housing Act of
1949, as amended. Grants and contracts are made for the purpose of
providing technical and supervisory assistance to groups of families to
enable them to build their own homes through the mutual exchange of
labor.

Rural Community Grants

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1956-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 30
22.00 New budget authority (gross)...... 30 -30
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 30
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 30
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.35 Appropriation permanently
reduced....................... -10
40.36 Unobligated balance permanently
reduced....................... -30
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. -40
Mandatory:

62.00 Transferred from other accounts. 30 10
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 30 -30
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -27
86.97 Outlays from new mandatory
authority....................... 7
86.98 Outlays from mandatory balances... 20
--------- --------- ----------
87.00 Total outlays (gross)...........
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 30 -30
90.00 Outlays...........................
---------------------------------------------------------------------------

Rural firefighters and emergency personnel grants are authorized
under 7 U.S.C. 2655. Grants are provided to local government and Indian
tribes to pay the cost of training firefighters and emergency personnel
in firefighting, emergency medical practices, and responding to
hazardous materials and bioagents in rural areas. Not less than 60
percent of the amounts made available for training grants shall be used
to provide grants to fund partial scholarships for training of
individuals at training centers. The remaining funding may be made
available for grants to provide financial assistance to State and
regional centers that provide training for firefighters and emergency
medical personnel for improvements to the training facility, equipment,
curricula, and personnel. The Farm Security and Rural Investment Act of
2002, Public Law 107-171, provides mandatory funding for this program.
The Act provides $10,000,000 for each of fiscal years 2003 through 2007,
to remain available until expended, from the funds of the Commodity
Credit Corporation. The 2006 Budget proposes to cancel the 2003 through
2006 funding for this program because other programs in Forest Service,
Federal Emergency Management Agency, and the Bureau of Land Management
provide significant funding for this purpose.

[[Page 138]]

Rural Community Fire Protection Grants

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2067-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -1
73.20 Total outlays (gross)............. 1
73.40 Adjustments in expired accounts
(net)........................... -1
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 1
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -1
---------------------------------------------------------------------------

This assistance was authorized by section 7 of the Cooperative
Forestry Assistance Act of 1978 (16 U.S.C. 2106). Grants are made to
public bodies to organize, train, and equip local firefighting forces,
including those of Indian tribes or other Native American groups, to
prevent, control, and suppress fires threatening human lives, crops,
livestock, farmsteads or other improvements, pastures, orchards,
wildlife, rangeland, woodland, and other resources in rural areas.

Credit accounts:

Rural Community Facility Direct Loans Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loans...................... 500 478 300
00.02 Interest on Treasury borrowing.... 87 110 110
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 587 588 410
08.01 Negative subsidy paid to receipt
account......................... 3
08.02 Downward reestimate paid to
receipt account................. 18
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 21
--------- --------- ----------
10.00 Total new obligations........... 608 588 410
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 8 22
22.00 New financing authority (gross)... 620 566 410
22.10 Resources available from
recoveries of prior year
obligations..................... 29
22.70 Balance of authority to borrow
withdrawn....................... -26
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 631 588 410
23.95 Total new obligations............. -608 -588 -410
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 22
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

47.00 Authority to borrow............. 521
Mandatory:

67.10 Authority to borrow............. 398 235
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 179 167 176
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -17 1 -1
68.47 Portion applied to repay debt. -63
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 99 168 175
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 620 566 410
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 638 898 999
73.10 Total new obligations............. 608 588 410
73.20 Total financing disbursements
(gross)......................... -336 -486 -560
73.45 Recoveries of prior year
obligations..................... -29
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 17 -1 1
--------- --------- ----------
74.40 Obligated balance, end of year.. 898 999 850
87.00 Total financing disbursements
(gross)......................... 336 486 560
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -15 -14 -13
88.25 Interest on uninvested funds.. -13 -18 -20
88.40 Repayment of principal........ -151 -49 -55
88.40 Interest received on loans.... -86 -88
88.40 Non-Federal sources...........
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -179 -167 -176
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 17 -1 1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 458 398 235
90.00 Financing disbursements........... 158 319 384
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4225-0-3-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 500 478 300
--------- --------- ----------
1150 Total direct loan obligations... 500 478 300
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1,290 1,424 1,745
1231 Disbursements: Direct loan
disbursements................... 231 375 439
1251 Repayments: Repayments and
prepayments..................... -89 -48 -55
Write-offs for default:

1263 Direct loans.................... -5 -6 -8
1264 Other adjustments, net.......... -3
--------- --------- ----------
1290 Outstanding, end of year........ 1,424 1,745 2,121
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from direct loans obligated in 1992 and beyond. The amounts in
this account are a means of financing and are not included in the budget
totals. Loans made prior to 1992 are recorded in the Rural Development
Insurance Fund Liquidating Account.

This account provides funding to non-profit organizations and local
governments for the construction and improvement of community facilities
providing essential services in rural areas, such as hospitals,
telecommunications applications, child care centers and fire stations.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4225-0-3-452

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

Investments in US securities:
1106

Receivables, net

-2

Net value of assets related to
post-1991 direct loans
receivable:

1401

Direct loans receivable, gross

1,290

1,424

1402

Interest receivable

1404

Foreclosed property

1405

Allowance for subsidy cost (-)

-108

-87

1499

Net present value of assets related to direct loans

1,200

1,359

1999

Total assets

1,203

1,384

LIABILITIES:
Federal liabilities:

2101

Accounts payable

1,195

1,376

[[Page 139]]

2105

Other

2999

Total liabilities

1,203

1,384

4999

Total liabilities and net position

1,203

1,384

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

Rural Community Facility Guaranteed Loans Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Default Claims.................... 12
00.02 Interest to Treasury.............. 1 1 1
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 13 1 1
08.01 Negative subsidy paid to receipt
account......................... 1
08.02 Downward reestimate paid to
receipt account................. 2
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 3
--------- --------- ----------
10.00 Total new obligations........... 16 1 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3 4 10
22.00 New financing authority (gross)... 17 7 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 20 11 12
23.95 Total new obligations............. -16 -1 -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 4 10 11
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

47.00 Authority to borrow............. 13 3
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 5 2 2
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 2
68.47 Portion applied to repay debt... -1
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 4 4 2
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 17 7 2
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1 2 1
73.10 Total new obligations............. 16 1 1
73.20 Total financing disbursements
(gross)......................... -15
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 2 1 2
87.00 Total financing disbursements
(gross)......................... 15
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -3
88.25 Interest on uninvested funds.. -1 -1
88.40 Non-Federal sources, Guarantee
Fees........................ -1 -1 -2
88.40 Non-Federal sources...........
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -5 -2 -2
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. -2
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 12 3
90.00 Financing disbursements........... 11 -2 -2
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4228-0-3-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation................. 205 210 210
2142 Uncommitted loan guarantee
limitation......................
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 205 210 210
2199 Guaranteed amount of guaranteed
loan commitments................ 164 168 168
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 373 434 434
2231 Disbursements of new guaranteed
loans........................... 135 87 192
2251 Repayments and prepayments........ -62 -74 -80
2263 Adjustments: Terminations for
default that result in claim
payments........................ -12 -13 -17
--------- --------- ----------
2290 Outstanding, end of year........ 434 434 529
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 376 360 371
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from guaranteed loans committed in 1992 and beyond. The
amounts in this account are a means of financing and are not included in
the budget totals. Loans made prior to 1992 are recorded in the Rural
Development Insurance Fund Liquidating Account.

This account finances loan guarantee commitments for essential
community facilities in rural areas.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4228-0-3-452

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

Investments in US securities:
1106

Receivables, net

1999

Total assets

LIABILITIES:
Federal liabilities:

2104

Resources payable to Treasury

2105

Other liabilities, Federal

2204

Non-Federal liabilities: Liabilities for loan guarantees

2999

Total liabilities

4999

Total liabilities and net position

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

Rural Housing Insurance Fund Program Account

(including transfers of funds)

For gross obligations for the principal amount of direct and
guaranteed loans as authorized by title V of the Housing Act of 1949, to
be available from funds in the rural housing insurance fund, as follows:
[$4,459,297,000] $4,681,033,000 for loans to section 502 borrowers, as
determined by the Secretary, of which [$1,150,000,000] $1,000,000,000
shall be for direct loans, and of which [$3,309,297,000] $3,681,033,000
shall be for unsubsidized guaranteed loans; [$35,000,000] $35,969,000
for section 504 housing repair loans; [$100,000,000] $27,027,000 for
section 515 rental housing; [$100,000,000] $200,000,000 for section 538
guaranteed multi-family housing loans; [$5,045,000] $5,000,000 for
section 524 site loans; [$11,501,000] $11,500,000 for credit sales of
acquired property, of which up to [$1,501,000] $1,500,000 may be for
multi-family credit sales; and [$10,000,000] $5,048,000 for section 523
self-help housing land development loans.
For the cost of direct and guaranteed loans, including the cost of
modifying loans, as defined in section 502 of the Congressional Budget
Act of 1974, as follows: section 502 loans, [$166,778,000] $154,800,000,
of which [$133,170,000] $113,900,000 shall be for direct loans, and of
which [$33,608,000] $40,900,000, to remain available until expended,
shall be for unsubsidized guaranteed loans; section 504 housing repair
loans, [$10,171,000] $10,521,000; repair and rehabilitation of section
515 rental housing, [$47,090,000] $12,400,000; section 538 multi-family
housing guaranteed loans, [$3,490,000] $10,840,000; multi-family credit
sales of acquired property, [$727,000] $681,000; section 523 self-help
housing and development loans, $52,000: Provided, That of the total
amount appropriated in this paragraph, [$7,100,000] $2,500,000 shall be
available through

[[Page 140]]

June 30, [2005] 2006, for authorized empowerment zones and enterprise
communities and communities designated by the Secretary of Agriculture
as Rural Economic Area Partnership Zones[: Provided further, That any
funds under this paragraph initially allocated by the Secretary for
housing projects in the State of Alaska that are not obligated by
September 30, 2005, shall be carried over until September 30, 2006, and
made available for such housing projects only in the State of Alaska].
In addition, for administrative expenses necessary to carry out the
direct and guaranteed loan programs, [$448,342,000] $465,886,000, which
shall be transferred to and merged with the appropriation for ``Rural
Development, Salaries and Expenses''. (Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
2005.)
[For additional gross obligations for the principal amount of direct
loans as authorized by title V of the Housing Act of 1949, to be
available from funds in the rural housing insurance fund, $17,000,000
for section 504 housing repair loans: Provided, That this loan level
shall be considered an estimate and not a limitation.]
[For the additional cost of direct loans, including the cost of
modifying loans, as defined in section 502 of the Congressional Budget
Act of 1974: section 504 housing repair loans, $5,000,000, to remain
available until expended: Provided, That such loans shall only be
available for projects in communities affected by hurricanes and
tropical storms in calendar year 2003 or 2004: Provided further, That
the amounts provided under this heading are designated as an emergency
requirement pursuant to section 402 of S. Con. Res. 95 (108th Congress),
as made applicable to the House of Representatives by H. Res. 649 (108th
Congress) and applicable to the Senate by section 14007 of Public Law
108-287.] (Emergency Supplemental Appropriations for Hurricane Disasters
Assistance Act, 2005.)

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2081-0-1-371 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
0101 Negative subsidies/subsidy
reestimates..................... 167
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 185 202 137
00.02 Guaranteed loan subsidy........... 54 37 52
00.05 Reestimates of direct loan subsidy 68
00.06 Interest on reestimates of direct
loan subsidy.................... 46
00.07 Reestimates of loan guarantee
subsidy......................... 55
00.08 Interest on reestimates of loan
guarantee subsidy............... 13
00.09 Administrative expenses........... 441 445 466
--------- --------- ----------
10.00 Total new obligations........... 862 684 655
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 14 11
22.00 New budget authority (gross)...... 853 673 655
22.10 Resources available from
recoveries of prior year
obligations..................... 2
22.22 Unobligated balance transferred
from other accounts............. 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 873 684 655
23.95 Total new obligations............. -862 -684 -655
23.98 Unobligated balance expiring or
withdrawn....................... -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 11
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 676 676 655
40.00 Appropriation, hurricane
supplemental.................. 5
40.35 Appropriation permanently
reduced....................... -4 -5
40.36 Unobligated balance permanently
reduced....................... -3
41.00 Transferred to other accounts... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 671 673 655
Mandatory:

60.00 Appropriation................... 182
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 853 673 655
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 209 176 182
73.10 Total new obligations............. 862 684 655
73.20 Total outlays (gross)............. -880 -678 -690
73.40 Adjustments in expired accounts
(net)........................... -13
73.45 Recoveries of prior year
obligations..................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 176 182 147
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 590 582 595
86.93 Outlays from discretionary
balances........................ 108 96 95
86.97 Outlays from new mandatory
authority....................... 182
--------- --------- ----------
87.00 Total outlays (gross)........... 880 678 690
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 853 673 655
90.00 Outlays........................... 880 678 690
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2081-0-1-371 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Direct 502 single family housing.. 1,351 1,141 1,000
115004Direct 515 multi-family housing... 114 99 27
115006Direct 515 multi-family housing,
natural disaster................ 3
115007Direct 504 housing repair......... 33 35 36
115008Direct 504 housing repair, natural
disaster........................ 1
115009Direct 504, hurricane supplemental 17
115012Direct 524 site development....... 3 5 5
115013Direct 523 self-help housing...... 3 5 5
115014Single family credit sales........ 1 10 10
115015Multi-family credit sales......... 2 2
--------- --------- ----------
115901Total direct loan levels.......... 1,509 1,314 1,085
Direct loan subsidy (in percent):
132001Direct 502 single family housing.. 9.27 11.58 11.39
132002Direct 502 supplemental........... 9.27 11.58 11.39
132003Direct 502 modular housing........ 1.24 0.00 0.00
132004Direct 515 multi-family housing... 43.01 47.09 45.88
132005Direct 515 No Year loans.......... 43.01 47.09 45.88
132006Direct 515 natural disaster....... 43.01 47.09 45.88
132007Direct 504 housing repair......... 27.46 29.06 29.25
132008Direct 504 natural disaster....... 27.46 29.06 29.25
132009Direct 504 hurricane supplemental. 27.46 29.06 29.25
132010Direct Farm Labor Housing......... 42.73 47.06 44.59
132011Direct Farm Labor Housing Supp.... 42.73 47.06 44.59
132012Direct 524 site development....... -0.03 -4.94 -3.51
132013Direct 523 self-help housing...... 3.08 -0.47 1.03
132014Single family credit sales........ -17.46 -16.23 -14.53
132015Multi-family credit sales......... 44.20 48.44 45.40
--------- --------- ----------
132901Weighted average subsidy rate..... 12.25 14.68 12.55
Direct loan subsidy budget authority:
133001Direct 502 single family housing.. 125 132 114
133004Direct 515 multi-family housing... 50 47 12
133006Direct 515 natural disaster....... 1
133007Direct 504 housing repair......... 9 10 10
133008Direct 504 natural disaster.......
133009Direct 504 hurricane supplemental. 5
133012Direct 524 site loans.............
133013Direct 523 self-help loans........
133014Single family credit sales........ -2 -1
133015Multi-family credit sales......... 1 1
--------- --------- ----------
133901Total subsidy budget authority.... 185 193 136
Direct loan subsidy outlays:
134001Direct 502 single family housing.. 140 140 117
134004Direct 515 multi-family housing... 49 49 45
134005Direct 515 no year regular loans..
134006Direct 515 natural disaster....... 2 2 3
134007Direct 504 housing repair......... 9 8 10
134008Direct 504 natural disaster.......
134009Direct 504, hurricane supplemental 4 1
134010Direct Farm Labor Housing......... 2 2
134011Direct Farm Labor Housing natural
disaster........................ 1
134012Direct 524 site loans.............
134013Direct 523 self-help loans........
134014Single family credit sales........ 2
134015Multi-family housing credit sales. 1 1
--------- --------- ----------

[[Page 141]]

134901Total subsidy outlays............. 205 206 177
Direct loan upward reestimate subsidy budget
authority:
135001Direct 502 single family housing.. 21
135004Direct 515 multi-family housing... 78
135007Direct 504 housing loans.......... 12
135010Direct Farm Labor Housing......... 3
--------- --------- ----------
135901Total upward reestimate budget
authority....................... 114
Direct loan downward reestimate subsidy budget
authority:
137001Direct 502 single family housing.. -152
137004Direct 515 multi-family housing... -1
137007Direct 504 housing loans.......... -4
137010Direct Farm Labor Housing......... -2
137013Direct 523 self-help housing...... -1
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -160
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
215001Guaranteed 502 single family
housing , purchase.............. 3,184 3,059 3,474
215002Guaranteed 502, refinancing....... 50 223 207
215003Guarantee 538 multi-family housing 99 99 200
--------- --------- ----------
215901Total loan guarantee levels....... 3,333 3,381 3,881
Guaranteed loan subsidy (in percent):
232001Guaranteed 502 single family
housing , purchase.............. 1.57 1.07 1.16
232002Guaranteed 502, refinancing....... 0.29 0.27 0.29
232003Guarantee 538 multi-family housing 5.95 3.49 5.42
--------- --------- ----------
232901Weighted average subsidy rate..... 1.68 1.09 1.33
Guaranteed loan subsidy budget authority:
233001Guaranteed 502 single family
housing , purchase.............. 48 33 40
233002Guaranteed 502, refinancing....... 1 1
233003Guarantee 538 multi-family housing 6 3 11
--------- --------- ----------
233901Total subsidy budget authority.... 54 37 52
Guaranteed loan subsidy outlays:
234001Guaranteed 502 single family
housing , purchase.............. 47 24 36
234002Guaranteed 502, refinancing....... 1 1
234003Guarantee 538 multi-family housing 5 2 8
--------- --------- ----------
234901Total subsidy outlays............. 52 27 45
Guaranteed loan upward reestimate subsidy
budget authority:
235001Guaranteed 502 single family
housing , purchase.............. 68
--------- --------- ----------
235901Total upward reestimate budget
authority....................... 68
Guaranteed loan downward reestimate subsidy
budget authority:
237001Guaranteed 502 single family
housing , purchase.............. -5
237002Guaranteed 502, refinancing.......
237003Guaranteed 538 multi-family
housing......................... -1
--------- --------- ----------
237901Total downward reestimate subsidy
budget authority................ -6
----------------------------------------------------------------------------

Administrative expense data:
351001Budget authority.................. 441 445 466
359001Outlays from new authority........ 441 445 466
---------------------------------------------------------------------------

Rural housing insurance fund--This fund was established in 1965
(Public Law 89-117) pursuant to section 517 of title V of the Housing
Act of 1949, as amended.

The programs funded through the Rural Housing Insurance Fund Program
account are: section 502 very low and low to moderate income
homeownership loans and guarantees; section 504 very low-income housing
repair loans; section 515 rural rental housing loans; section 524
housing site loans, single family and multi-family housing credit sales
of acquired property, and section 538 multi-family housing guarantees.
The section 523 self-help housing land development loan program was
included under this heading beginning in 1997. Previously, this loan
program was accounted for under the separate heading of ``Self-Help
Housing Land Development Fund Program Account.'' Starting in 2001,
section 514 domestic farm labor housing loans and grants are funded
under the new Farm Labor Program Account in order to provide flexibility
between loans and the farm labor housing grants.

Loan programs are limited to rural areas that include towns,
villages, and other places which are not part of an urban area and that
have a population not in excess of 2,500 inhabitants, or is in excess of
2,500 but not in excess of 10,000 if rural in character, or has a
population in excess of 10,000 but not more than 20,000 and is not
within a standard metropolitan statistical area and has a serious lack
of mortgage credit for low- and moderate-income borrowers.

For 2006, funds for section 515 rural rental housing loans will be
limited to repair and rehabilitation only and $27 million is included
for this purpose. In conjunction with this, RHS will begin to revitalize
the existing 515 portfolio by implementing a voucher program to assist
tenants that have been displaced due to property owners prepaying their
loans. Additional authorizations are anticipated to assist in
revitalizing the portfolio. The relevant legislative proposals will be
developed and submitted during 2005.

For 502 guaranteed single family housing loans in 2006, the Budget
reflects an increase in the guarantee fee on new loans to 2.0 percent,
consistent with the 2005 Appropriations Act. The ability to finance the
guarantee fee is more in line with the housing industry, including HUD
and VA, and will allow more lower income rural Americans to continue to
afford these loans. In 2002, RHS approved separate risk categories for
the guarantee refinancing (refis) and guarantees of new loans. As part
of that change, RHS also reduced the guarantee fee to 0.5 percent for
the refis. This change reflected the lower risk on refis as compared to
an unseasoned borrower receiving a new loan. It is also consistent with
the rate HUD and VA charge on their refis of similar loans.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2081-0-1-371 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
25.3 Other purchases of goods and
services from Government
accounts........................ 441 445 466
41.0 Grants, subsidies, and
contributions................... 421 239 189
--------- --------- ----------
99.9 Total new obligations........... 862 684 655
---------------------------------------------------------------------------

Rural Housing Insurance Fund Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loans including upward
adjustments of prior year
obligations..................... 1,545 1,377 1,127
00.02 Advances on behalf of borrowers... 40
00.04 Interest on Treasury borrowing.... 703 711 748
00.06 Other expenses.................... 22 14 14
--------- --------- ----------
00.91 Subtotal, Operating program..... 2,310 2,102 1,889
08.02 Downward subsidy reestimates paid
to receipt account.............. 132
08.04 Interest on downward reestimates
paid to receipt account......... 27
--------- --------- ----------
08.91 Subtotal, Reestimates........... 159
--------- --------- ----------
10.00 Total new obligations........... 2,469 2,102 1,889
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 619 607
22.00 New financing authority (gross)... 2,434 2,142 1,990
22.10 Resources available from
recoveries of prior year
obligations..................... 91
22.60 Portion applied to repay debt..... -647 -101
22.70 Balance of authority to borrow
withdrawn....................... -67
--------- --------- ----------

[[Page 142]]

23.90 Total budgetary resources
available for obligation...... 3,077 2,102 1,889
23.95 Total new obligations............. -2,469 -2,102 -1,889
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 607
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

47.00 Authority to borrow............. 1,550
Mandatory:

67.10 Authority to borrow............. 1,211 1,216
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 1,999 1,960 1,803
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -31 -30 -30
68.47 Portion applied to repay debt. -1,084 -999 -999
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 884 931 774
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 2,434 2,142 1,990
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Unpaid obligations, fund balance
with Treasury, start of year.... 560 703 647
73.10 Total new obligations............. 2,469 2,102 1,889
73.20 Total financing disbursements
(gross)......................... -2,266 -2,188 -1,877
73.45 Recoveries of prior year
obligations..................... -91
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 31 30 30
--------- --------- ----------
74.40 Obligated balance, end of year.. 703 647 689
87.00 Total financing disbursements
(gross)......................... 2,266 2,188 1,877
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources: payments from
program account............. -329 -213 -186
88.00 Federal sources............... 2
88.25 Interest on uninvested funds.. -99 -88 -85
88.40 Non-Federal sources:
Repayments of principal..... -1,026 -948 -844
88.40 Interest received on loans.... -537 -561 -544
88.40 Payments on judgments......... -15 -14
88.40 Proceeds on sale of acquired
property.................... -35 -33
88.40 Recaptured income............. -85 -83
88.40 Fees.......................... -9 -7 -7
88.40 Miscellaneous collections..... -1 -8 -7
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,999 -1,960 -1,803
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 31 30 30
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 466 212 217
90.00 Financing disbursements........... 267 228 74
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4215-0-3-371 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 1,545 1,377 1,127
--------- --------- ----------
1150 Total direct loan obligations... 1,545 1,377 1,127
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 12,144 12,451 12,792
1231 Disbursements: Direct loan
disbursements................... 1,393 1,369 1,029
1251 Repayments: Repayments and
prepayments..................... -1,009 -948 -988
1261 Adjustments: Capitalized interest. 13 25 25
Write-offs for default:

1263 Direct loans.................... -67 -81 -83
1264 Other adjustments, net.......... -23 -24 -25
--------- --------- ----------
1290 Outstanding, end of year........ 12,451 12,792 12,750
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from direct loans obligated in 1992 and beyond including
credit sales of acquired property. The amounts in this account are a
means of financing and are not included in the budget totals.

This account finances direct rural housing loans for section 502
very low- and low-to-moderate-income home ownership loan program;
section 504 very low income housing repair loan program; section 514
domestic farm labor housing loan program; section 515 rural rental
housing loan program; sections 523 self-help housing loans, and 524 site
development loans; and single family and multi-family housing credit
sales of acquired property.

Loan programs are limited to rural areas that include towns,
villages and other places which are not part of an urban area and that
have a population not in excess of 2,500 inhabitants, or is in excess of
2,500 but not in excess of 10,000 if rural in character, or has a
population in excess of 10,000 but not more than 20,000 and is not
within a standard metropolitan statistical area and has a serious lack
of mortgage credit for low and moderate-income borrowers.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4215-0-3-371

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

256

235

Investments in US securities:
1106

Receivables, net

Net value of assets related to
post-1991 direct loans
receivable:

1401

Direct loans receivable, gross

12,144

12,451

1402

Interest receivable

1404

Foreclosed property

1405

Allowance for subsidy cost (-)

-1,872

-1,979

1499

Net present value of assets related to direct loans

10,355

10,564

1999

Total assets

10,665

10,813

LIABILITIES:
Federal liabilities:

2103

Debt

10,300

10,547

2105

Other

359

267

2207

Non-Federal liabilities: Other

-1

2999

Total liabilities

10,665

10,813

4999

Total liabilities and net position

10,665

10,813

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

Rural Housing Insurance Fund Guaranteed Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Default claims.................... 122 134 146
00.02 Interest assistance paid to
lenders......................... 1 1
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 122 135 147
08.02 Payments of downward estimates to
receipt account................. 5
08.04 Payment of interest on downward
reestimate to receipt account... 2
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 7
--------- --------- ----------
10.00 Total new obligations........... 129 135 147
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 361 433 396
22.00 New financing authority (gross)... 201 98 117
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 562 531 513

[[Page 143]]

23.95 Total new obligations............. -129 -135 -147
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 433 396 366
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

47.00 Authority to borrow............. 7 8 8
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 194 91 110
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... -1 -1
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 194 90 109
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 201 98 117
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 129 135 147
73.20 Total financing disbursements
(gross)......................... -129 -136 -148
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 1 1
87.00 Total financing disbursements
(gross)......................... 129 136 148
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -120 -27 -46
88.25 Interest on uninvested funds.. -19 -18 -18
88.40 Non-Federal sources: guarantee
fees........................ -55 -46 -46
88.40 Loss recoveries and other fees
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -194 -91 -110
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 1 1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 7 8 8
90.00 Financing disbursements........... -66 45 38
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4216-0-3-371 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation................. 3,333 3,381 3,881
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 3,333 3,381 3,881
2199 Guaranteed amount of guaranteed
loan commitments................ 3,000 3,043 3,493
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 13,420 13,856 14,020
2231 Disbursements of new guaranteed
loans........................... 3,420 2,837 2,824
2251 Repayments and prepayments........ -2,862 -2,539 -2,644
Adjustments:

2263 Terminations for default that
result in claim payments...... -122 -134 -146
2264 Other adjustments, net..........
--------- --------- ----------
2290 Outstanding, end of year........ 13,856 14,020 14,054
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 12,470 12,618 12,649
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from guaranteed loan commitments made in 1992 and beyond. The
amounts in this account are a means of financing and are not included in
the budget totals.

This account finances the nonsubsidized guaranteed section 502 low-
to-moderate-income home ownership loan program and section 538 multi-
family housing loan program. The guaranteed programs enable RHS to
utilize private sector resources for the making and servicing of loans
while the Agency provides a financial guarantee to encourage private
sector activity.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4216-0-3-371

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

361

427

Investments in US securities:
1106

Receivables, net

1999

Total assets

404

461

LIABILITIES:
Non-Federal liabilities:

2204

Liabilities for loan guarantees

399

440

2207

Other

2999

Total liabilities

404

461

4999

Total liabilities and net position

404

461

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

Rural Housing Insurance Fund Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
Capital investment:

00.02 Advances on behalf of borrowers. 53 50 46
00.05 Collateral acquired by default.. 1 1 1
--------- --------- ----------
00.91 Total capital investment...... 54 51 47
01.03 Interest on FFB borrowings........ 153 120 19
01.04 Premiums paid FFB at redemption of
certificates of beneficial
ownership....................... 74
01.06 Interest credits on loans sold to
investors....................... 1 1
01.07 Other costs incident to loans..... 3 3 3
--------- --------- ----------
01.91 Total operating expenses........ 231 124 22
--------- --------- ----------
10.00 Total new obligations........... 285 175 69
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 204 150
22.00 New budget authority (gross)...... 427 175 69
22.10 Resources available from
recoveries of prior year
obligations..................... 8
22.40 Capital transfer to general fund.. -204 -150
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 435 175 69
23.95 Total new obligations............. -285 -175 -69
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 150
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 1,577 1,441 1,316
69.27 Capital transfer to general fund -586 -1,247
69.47 Portion applied to repay debt... -1,150 -680
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 427 175 69
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Unpaid fund balance with treasury,
end of year..................... 150 90 163
73.10 Total new obligations............. 285 175 69
73.20 Total outlays (gross)............. -338 -102 -138
73.45 Recoveries of prior year
obligations..................... -8
--------- --------- ----------
74.40 Obligated balance, end of year.. 90 163 94
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 232 25 69
86.98 Outlays from mandatory balances... 106 77 69
--------- --------- ----------
87.00 Total outlays (gross)........... 338 102 138
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -3
88.40 Repayments of loans and
advances.................... -864 -776 -713
88.40 Proceeds from sale of acquired
property.................... -24 -14 -14
88.40 Payments on judgments......... -14 -11 -9
88.40 Interest payments from
borrowers................... -533 -463 -405

[[Page 144]]

88.40 Recapture of subsidies........ -114 -157 -157
88.40 Income from residual
investment in loan asset
sale........................ -22 -20 -18
88.40 Fees and other revenue........ -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,577 -1,441 -1,316
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -1,150 -1,266 -1,247
90.00 Outlays........................... -1,240 -1,339 -1,178
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4141-0-3-371 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 13,885 12,949 12,131
1251 Repayments: Repayments and
prepayments..................... -864 -776 -713
1261 Adjustments: Capitalized interest. 13 12 11
Write-offs for default:

1263 Direct loans.................... -54 -45 -38
1264 Other adjustments, net.......... -31 -9 -8
--------- --------- ----------
1290 Outstanding, end of year........ 12,949 12,131 11,383
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4141-0-3-371 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 12 9 7
2251 Repayments and prepayments........ -3 -2 -1
--------- --------- ----------
2290 Outstanding, end of year........ 9 7 6
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 8 6 6
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this account
records, for this program, all cash flows to and from the Government
resulting from direct loans obligated and loan guarantees committed
prior to 1992. New loan activity in 1992 and beyond is recorded in
corresponding program and financing accounts.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4141-0-3-371

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
1101

Federal assets: Fund balances with Treasury

353

240

Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601

Direct loans, gross

13,885

12,949

1602

Interest receivable

654

122

1603

Allowance for estimated uncollectible loans and interest (-)

-6,297

-5,558

1604

Direct loans and interest receivable, net

8,242

7,513

1606

Foreclosed property

1699

Value of assets related to direct loans

8,273

7,530

1901

Other Federal assets: Other assets

1999

Total assets

8,705

7,855

LIABILITIES:
Federal liabilities:

2102

Interest payable

116

2103

Debt

1,830

680

2104

Resources payable to Treasury

6,692

7,055

Non-Federal liabilities:

2203

Debt

2204

Liabilities for loan guarantees

2207

Other

2999

Total liabilities

8,705

7,855

4999

Total liabilities and net position

8,705

7,855

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

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4141-0-3-371 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
25.2 Other services.................... 2 2 2
33.0 Investments and loans............. 55 52 20
41.0 Grants, subsidies, and
contributions................... 1 1 1
43.0 Interest and dividends............ 227 120 46
--------- --------- ----------
99.9 Total new obligations........... 285 175 69
---------------------------------------------------------------------------

RURAL BUSINESS-COOPERATIVE SERVICE

Federal Funds

General and special funds:

Rural Empowerment Zones and Enterprise Community Grants

[For grants in connection with second and third rounds of
empowerment zones and enterprise communities, $12,500,000, to remain
available until expended, for designated rural empowerment zones and
rural enterprise communities, as authorized by the Taxpayer Relief Act
of 1997 and the Omnibus Consolidated and Emergency Supplemental
Appropriations Act, 1999 (Public Law 105-277): Provided, That of the
funds appropriated, $1,000,000 shall be made available to third round
empowerment zones, as authorized by the Community Renewal Tax Relief Act
(Public Law 106-554).] (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0402-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct Program Activity........... 12 16
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 12 16
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3 4
22.00 New budget authority (gross)...... 13 12
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 16 16
23.95 Total new obligations............. -12 -16
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 13 12
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 28 26 27
73.10 Total new obligations............. 12 16
73.20 Total outlays (gross)............. -14 -15 -16
--------- --------- ----------
74.40 Obligated balance, end of year.. 26 27 11
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 8 2
86.93 Outlays from discretionary
balances........................ 6 13 16
--------- --------- ----------
87.00 Total outlays (gross)........... 14 15 16
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 13 12
90.00 Outlays........................... 14 15 16
---------------------------------------------------------------------------

The goal of the Empowerment Zone/Enterprise Community (EZ/EC)
initiative is to revitalize rural communities in a manner that attracts
private sector investment and thereby provides self-sustaining community
and economic development. Appropriated funding in 1999 through 2002 was
provided for

[[Page 145]]

EZ/ECs designated as part of the second round of this initiative.

No funding is provided in 2006 for EZ/EC grants. For grants like
these that are for community organizations to stimulate economic
development, the 2006 Budget proposes to consolidate them into a new
economic and community development program to be administered by the
Department of Commerce. The new program would be designed to achieve
greater results and focus on communities most in need of assistance.

Rural Cooperative Development Grants

For rural cooperative development grants authorized under section
310B(e) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1932), [$24,000,000] $21,000,000, of which [$2,500,000] $500,000 shall
be for cooperative research agreements [for the appropriate technology
transfer for rural areas program: Provided, That not to exceed
$1,500,000 shall be for cooperatives or associations of cooperatives
whose primary focus is to provide assistance to small, minority
producers and whose governing board and/or membership is comprised of at
least 75 percent minority]; and of which [not to exceed] $15,500,000, to
remain available until expended, shall be for value-added agricultural
product market development grants, as authorized by section 6401 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1621 note).
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1900-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Rural Cooperative Development
Grants.......................... 6 6 6
00.10 Value-added Agricultural Product
Marketing (mandatory)........... 30
00.11 Value added Agricultural Product
Marketing (discretionary)....... 1 30 15
00.12 Appropriate Technology Transfer
for Rural Areas................. 2 2
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 39 38 21
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 29 14 80
22.00 New budget authority (gross)...... 24 104 -59
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 54 118 21
23.95 Total new obligations............. -39 -38 -21
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 14 80
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 24 24 21
40.35 Appropriation permanently
reduced....................... -40
40.36 Unobligated balance permanently
reduced....................... -80
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 24 24 -99
Mandatory:

62.00 Transferred from other accounts. 80 40
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 24 104 -59
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 54 57 40
73.10 Total new obligations............. 39 38 21
73.20 Total outlays (gross)............. -35 -55 -29
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 57 40 32
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2 2
86.93 Outlays from discretionary
balances........................ 10 11 29
86.98 Outlays from mandatory balances... 23 42
--------- --------- ----------
87.00 Total outlays (gross)........... 35 55 29
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 24 104 -59
90.00 Outlays........................... 35 55 29
---------------------------------------------------------------------------

Grants for rural cooperative development were authorized under
section 310B(e) of the Consolidated Farm and Rural Development Act by
Public Law 104-127, April 4, 1996. These grants are made available to
nonprofit corporations and institutions of higher education to fund the
establishment and operation of centers for rural cooperative
development. The primary purpose of the centers is the improvement of
economic conditions of rural areas through the development of new
cooperatives and improving operations of existing cooperatives. RBS can
fund up to 75 percent of any project and associated administrative costs
and requires at least a 25 percent matching share from the applicant
which must be from non-Federal sources.

The Appropriate Technology Transfer to Rural Areas (ATTRA) program
was first authorized by the Food Security Act of 1985. The program
provides information and technical assistance to agricultural producers
to adopt sustainable agricultural practices that are environmentally
friendly and lower production costs. The 2006 Budget provides no funding
for this purpose.

Funds are requested for cooperative research agreements to help the
Rural Development mission area maintain a predictable level of research
on agricultural and non-agricultural cooperative issues.

Additionally, USDA provides value added marketing grants for
cooperatives. These were first funded in the Agriculture Risk Protection
Act of 2000. The 2002 Farm Bill provided $40 million for this purpose
each year from 2002 through 2007. The 2006 Budget cancels these funds
for a savings of $120 million. However, $15.5 million in discretionary
2006 funds is provided for this purpose.

Rural Economic Development Grants

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3105-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct Program Activity........... 11 10 10
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 11 10 10
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 51 110 167
22.00 New budget authority (gross)...... 69 67 67
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 121 177 234
23.95 Total new obligations............. -11 -10 -10
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 110 167 224
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 33 67 67
69.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 36
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 69 67 67
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -30 -58 -123
73.10 Total new obligations............. 11 10 10
73.20 Total outlays (gross)............. -2 -75 -76
73.45 Recoveries of prior year
obligations..................... -1
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -36
--------- --------- ----------
74.40 Obligated balance, end of year.. -58 -123 -189
----------------------------------------------------------------------------

[[Page 146]]

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 67 67
86.98 Outlays from mandatory balances... 2 8 9
--------- --------- ----------
87.00 Total outlays (gross)........... 2 75 76
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -33 -67 -67
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -36
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -31 8 9
---------------------------------------------------------------------------

This grant program is authorized under section 313 of the Rural
Electrification Act, as amended, and provides funds for the purpose of
promoting rural economic development and job creation projects,
including funding for project feasibility studies, start-up costs,
incubator projects and other expenses for the purpose of fostering rural
development.

Funding for this program is provided from the interest differential
on Rural Utilities Service borrowers' cushion of credit accounts.

National Sheep Industry Improvement Center

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1906-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program activity........... 1 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 1 1 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 5 5 5
22.00 New budget authority (gross)...... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5 6 5
23.95 Total new obligations............. -1 -1 -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 5 5 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 1
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 1 1 1
73.20 Total outlays (gross)............. -1 -1 -1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 1 1 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1
90.00 Outlays........................... 1 1
---------------------------------------------------------------------------

The Federal Agriculture Improvement Act of 1996 established the
National Sheep Industry Improvement Center to promote activities to
strengthen and enhance production or marketing of sheep and goat
products in the United States. The Center may provide loans or grants to
eligible entities to provide assistance to the industry for
infrastructure development, business development, production, resource
development, and market and environmental research. The 1996 Act
provided $20 million in mandatory funding for the establishment and
operation of the Center and authorized additional discretionary funding
of $30 million. In 2000, $10 million was granted to an intermediary to
provide assistance to the sheep and lamb industry. Additional funds have
been added to the original authorized amount so that the total available
for this purpose is now $28 million. No additional funds are requested
in 2006.

Rural Strategic Investment Program Grants

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1955-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 100
22.00 New budget authority (gross)...... 100 -100
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 100
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 100
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance permanently
reduced....................... -100
Mandatory:

62.00 Transferred from other accounts. 100
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 100 -100
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year..
73.20 Total outlays (gross).............
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -41
86.98 Outlays from mandatory balances... 41
--------- --------- ----------
87.00 Total outlays (gross)...........
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 100 -100
90.00 Outlays...........................
---------------------------------------------------------------------------

The Rural Strategic Investment Program is authorized under 7 U.S.C.
2009dd. The Rural Strategic Investment Program will provide rural
communities with flexible resources to develop comprehensive,
collaborative, and locally-based strategic planning processes; and will
implement innovative community and economic development strategies that
optimize regional competitive advantages. The program was authorized and
funded in section 6030 of the Farm Security and Rural Investment Act of
2002, Public Law 107-171. The Act provides that if the Secretary
approves a national strategic investment plan submitted by the National
Board, the Secretary shall transfer $100,000,000 for planning grants and
innovation grants to Regional Boards from the Commodity Credit
Corporation, to remain available until expended. However, in 2004 these
funds were blocked from being spent. In 2006, the Budget cancels these
funds because there is little likelihood that the funds will ever be
obligated and the program purpose is redundant with the mission of Rural
Development.

[[Page 147]]

Credit accounts:

Rural Business and Industry Direct Loans Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Interest on Treasury borrowings... 4 6 6
--------- --------- ----------
10.00 Total new obligations........... 4 6 6
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 4 47
22.00 New financing authority (gross)... 59 -21 26
22.60 Portion applied to repay debt..... -12 -20 -20
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 51 6 6
23.95 Total new obligations............. -4 -6 -6
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 47
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. -30 18
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 59 9 8
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 59 -21 26
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 6 5 11
73.10 Total new obligations............. 4 6 6
73.20 Total financing disbursements
(gross)......................... -4
--------- --------- ----------
74.40 Obligated balance, end of year.. 5 11 17
87.00 Total financing disbursements
(gross)......................... 4
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -45
88.25 Interest on uninvested funds.. -2 -1
88.40 Repayments of principal....... -8 -8 -8
88.40 Interest received on loans.... -4
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -59 -9 -8
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... -30 18
90.00 Financing disbursements........... -55 -9 -8
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4223-0-3-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 105 89 76
1231 Disbursements: Direct loan
disbursements...................
1251 Repayments: Repayments and
prepayments..................... -8 -8 -8
1263 Write-offs for default: Direct
loans........................... -8 -5 -6
--------- --------- ----------
1290 Outstanding, end of year........ 89 76 62
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from direct loans obligated in 1992 and beyond. The amounts in
this account are a means of financing and are not included in the budget
totals. The subsidy cost of these programs is funded through the Rural
Community Advancement Program. Loans made prior to 1992 are recorded in
the Rural Development Insurance Fund Liquidating Account.

Direct business and industry loans are made to public, private, or
cooperative organizations, Indian tribes or tribal groups, corporate
entities, or individuals for the purpose of improving the economic
climate in rural areas. Funding for this purpose was discontinued
beginning in 2002.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4223-0-3-452

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

Investments in US securities:
1106

Receivables, net

Net value of assets related to
post-1991 direct loans
receivable:

1401

Direct loans receivable, gross

105

1402

Interest receivable

1405

Allowance for subsidy cost (-)

-39

-78

1499

Net present value of assets related to direct loans

1999

Total assets

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

2999

Total liabilities

4999

Total liabilities and net position

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

Rural Business and Industry Guaranteed Loans Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Default claims.................... 61 67 74
00.02 Purchase from Secondary Market.... 58 64 70
00.03 Interest to Treasury.............. 7 6 6
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 126 137 150
08.02 Subsidy reestimates paid to
receipt account................. 18
--------- --------- ----------
10.00 Total new obligations........... 144 137 150
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 184 255 209
22.00 New financing authority (gross)... 216 91 103
22.60 Portion applied to repay debt..... -2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 398 346 312
23.95 Total new obligations............. -144 -137 -150
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 255 209 162
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

47.00 Authority to borrow............. 85 24 10
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 134 67 93
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... -3
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 131 67 93
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 216 91 103
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -3
73.10 Total new obligations............. 144 137 150
73.20 Total financing disbursements
(gross)......................... -144 -137 -150
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 3
--------- --------- ----------
74.40 Obligated balance, end of year..
87.00 Total financing disbursements
(gross)......................... 144 137 150
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -84 -13 -29
88.25 Interest on uninvested funds.. -11 -10 -12
88.40 Interest and principal on
purchased loans from
secondary market............ -25 -29 -35
88.40 Guarantee fees................ -14 -15 -17
--------- --------- ----------

[[Page 148]]

88.90 Total, offsetting
collections (cash)........ -134 -67 -93
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 3
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 85 24 10
90.00 Financing disbursements........... 10 70 57
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4227-0-3-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation................. 971 619 899
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 971 619 899
2199 Guaranteed amount of guaranteed
loan commitments................ 777 491 719
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 4,032 4,194 3,843
2231 Disbursements of new guaranteed
loans........................... 924 244 360
2251 Repayments and prepayments........ -655 -461 -423
2263 Adjustments: Terminations for
default that result in claim
payments........................ -107 -134 -157
--------- --------- ----------
2290 Outstanding, end of year........ 4,194 3,843 3,623
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 3,225 3,075 2,898
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from guaranteed loans committed in 1992 and beyond. The
amounts in this account are a means of financing and are not included in
the budget totals. The subsidy cost of this program is funded through
the Rural Community Advancement Program. Loans made prior to 1992 are
recorded in the Rural Development Insurance Fund Liquidating Account.

This account finances loan guarantee commitments for industrial
development in rural areas.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4227-0-3-452

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

181

255

Investments in US securities:
1106

Receivables, net

203

204

1999

Total assets

384

459

LIABILITIES:
Federal liabilities:

2104

Resources payable to Treasury

124

2105

Other

2204

Non-Federal liabilities: Liabilities for loan guarantees

325

334

2999

Total liabilities

384

459

4999

Total liabilities and net position

384

459

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

Rural Development Loan Fund Program Account

(including transfer of funds)

For the principal amount of direct loans, as authorized by the Rural
Development Loan Fund (42 U.S.C. 9812(a)), [$34,213,000] $34,212,000.
For the cost of direct loans, [$15,868,000] $14,718,000, as
authorized by the Rural Development Loan Fund (42 U.S.C. 9812(a))[, of
which $1,724,000 shall be available through June 30, 2005, for Federally
Recognized Native American Tribes and of which $3,449,000 shall be
available through June 30, 2005, for Mississippi Delta Region counties
(as determined in accordance with Public Law 100-460)]: Provided, [That
of such amount made available, the Secretary may provide up to
$1,500,000 for the Delta Regional Authority (7 U.S.C. 1921 et seq.):
Provided further,] That such costs, including the cost of modifying such
loans, shall be as defined in section 502 of the Congressional Budget
Act of 1974: Provided further, That of the total amount appropriated,
[$2,447,000] $887,000 shall be available through June 30, [2005] 2006,
for the cost of direct loans for authorized empowerment zones and
enterprise communities and communities designated by the Secretary of
Agriculture as Rural Economic Area Partnership Zones.
In addition, for administrative expenses to carry out the direct
loan programs, [$4,316,000] $6,656,000 shall be transferred to and
merged with the appropriation for ``Rural Development, Salaries and
Expenses''. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2069-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
0101 Negative subsidies/subsidy
reestimates..................... 4
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 17 16 15
00.09 Administrative expense............ 4 4 7
--------- --------- ----------
10.00 Total new obligations........... 21 20 22
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 21 20 22
23.95 Total new obligations............. -21 -20 -22
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 21 20 22
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 49 51 50
73.10 Total new obligations............. 21 20 22
73.20 Total outlays (gross)............. -17 -21 -24
73.40 Adjustments in expired accounts
(net)........................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 51 50 48
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5 5 8
86.93 Outlays from discretionary
balances........................ 12 16 16
--------- --------- ----------
87.00 Total outlays (gross)........... 17 21 24
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 21 20 22
90.00 Outlays........................... 17 21 24
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2069-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Rural development loan fund
program......................... 40 34 34
--------- --------- ----------
115901Total direct loan levels.......... 40 34 34
Direct loan subsidy (in percent):
132001Rural development loan fund
program......................... 43.27 46.38 43.02
--------- --------- ----------
132901Weighted average subsidy rate..... 43.27 46.38 43.02
Direct loan subsidy budget authority:
133001Rural development loan fund
program......................... 17 16 15
--------- --------- ----------
133901Total subsidy budget authority.... 17 16 15

[[Page 149]]

Direct loan subsidy outlays:
134001Rural development loan fund
program......................... 13 17 17
--------- --------- ----------
134901Total subsidy outlays............. 13 17 17
Direct loan downward reestimate subsidy budget
authority:
137001Rural development loan fund
program......................... -4
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -4
----------------------------------------------------------------------------

Administrative expense data:
351001Budget authority.................. 4 4 7
359001Outlays from new authority........ 4 4 7
---------------------------------------------------------------------------

This account finances loans to intermediary borrowers, who, in turn,
re-lend the funds to small rural businesses, community development
corporations, and other organizations for the purpose of improving
economic opportunities in rural areas. Through the use of local
intermediaries, this program serves small-scale enterprises and gives
preference to those communities with the greatest need. In 2006 the
Budget provides $34 million in loans for this purpose.

As required by the Federal Credit Reform Act of 1990, this account
records, for this program, the subsidy costs associated with the direct
loans obligated in 1992 and beyond, as well as administrative expenses
of this program. The subsidy amounts are estimated on a present value
basis; the administrative expenses are estimated on a cash basis.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2069-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
25.3 Other purchases of goods and
services from Government
accounts........................ 4 4 7
41.0 Grants, subsidies, and
contributions................... 17 16 15
--------- --------- ----------
99.9 Total new obligations........... 21 20 22
---------------------------------------------------------------------------

Rural Development Loan Fund Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
Operating program:

00.01 Direct loans.................... 40 34 34
00.03 Interest on Treasury borrowing.. 14 16 16
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal...................... 54 50 50
08.02 Downward subsidy reestimate paid
to receipt account.............. 3
08.04 Interest on Downward Subsidy
Reestimate...................... 1
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal...................... 4
--------- --------- ----------
10.00 Total new obligations........... 58 50 50
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1
22.00 New financing authority (gross)... 60 66 66
22.10 Resources available from
recoveries of prior year
obligations..................... 4
22.60 Portion applied to repay debt..... -3 -17 -16
22.70 Balance of authority to borrow
withdrawn....................... -2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 59 50 50
23.95 Total new obligations............. -58 -50 -50
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

47.00 Authority to borrow............. 27 24 24
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 33 42 42
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 2
68.47 Portion applied to repay debt... -2
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 33 42 42
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 60 66 66
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 54 60 56
73.10 Total new obligations............. 58 50 50
73.20 Total financing disbursements
(gross)......................... -46 -54 -54
73.45 Recoveries of prior year
obligations..................... -4
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 60 56 52
87.00 Total financing disbursements
(gross)......................... 46 54 54
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payments from program account. -13 -17 -17
88.25 Interest on uninvested funds.. -2 -5 -5
88.40 Non-Federal sources--repayment
of principal................ -15 -15 -15
88.40 Non-Federal sources--interest
on loans.................... -3 -5 -5
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -33 -42 -42
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. -2
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 25 24 24
90.00 Financing disbursements........... 12 12 12
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4219-0-3-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 40 34 34
--------- --------- ----------
1150 Total direct loan obligations... 40 34 34
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 347 359 382
1231 Disbursements: Direct loan
disbursements................... 27 38 38
1251 Repayments: Repayments and
prepayments..................... -15 -15 -15
--------- --------- ----------
1290 Outstanding, end of year........ 359 382 405
---------------------------------------------------------------------------

This account finances loans to intermediary borrowers, who in turn
relend the funds to small rural businesses, community development
corporations, or other organizations for the purpose of improving
economic opportunities in rural areas. Through the use of local
intermediaries, this program serves small-scale enterprises and gives
preference to those communities with the greatest need.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4219-0-3-452

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
1101

Federal assets: Fund balances with Treasury

Net value of assets related to
post-1991 direct loans
receivable:

1401

Direct loans receivable, gross

347

359

1402

Interest receivable

1405

Allowance for subsidy cost (-)

-150

1499

Net present value of assets related to direct loans

199

211

1999

Total assets

203

224

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

203

224

2999

Total liabilities

203

224

[[Page 150]]

4999

Total liabilities and net position

203

224

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

Rural Development Loan Fund Liquidating Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1
22.40 Capital transfer to general fund.. -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 4 4 4
69.27 Capital transfer to general fund -4 -4 -4
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)...........
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.40 Loan repayments............... -3 -3 -3
88.40 Borrower interest payments.... -1 -1 -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -4 -4 -4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -4 -4 -4
90.00 Outlays........................... -4 -4 -4
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4233-0-3-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 58 55 52
1251 Repayments: Repayments and
prepayments..................... -3 -3 -3
--------- --------- ----------
1290 Outstanding, end of year........ 55 52 49
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this account
records, for this program, all cash flows to and from the Government
resulting from direct loans obligated prior to 1992. New loan activity
in 1992 and beyond is recorded in corresponding program and financing
accounts.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4233-0-3-452

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
1101

Federal assets: Fund balances with Treasury

1206

Non-Federal assets: Receivables, net

Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601

Direct loans, gross

1603

Allowance for estimated uncollectible loans and interest (-)

-29

-27

1604

Direct loans and interest receivable, net

1699

Value of assets related to direct loans

1999

Total assets

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

2999

Total liabilities

4999

Total liabilities and net position

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

Rural Economic Development Loans Program Account

(including rescission of funds)

For the principal amount of direct loans, as authorized under
section 313 of the Rural Electrification Act, for the purpose of
promoting rural economic development and job creation projects,
$25,003,000.
For the cost of direct loans, including the cost of modifying loans
as defined in section 502 of the Congressional Budget Act of 1974,
[$4,698,000] $4,993,000, to remain available until expended.
Of the funds derived from interest on the cushion of credit payments
in the current fiscal year, as authorized by section 313 of the Rural
Electrification Act of 1936, [$4,698,000] $4,993,000 shall not be
obligated and [$4,698,000] $4,993,000 are rescinded. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3108-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
0101 Negative subsidies/subsidy
reestimates..................... 2
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 3 5 5
08.02 Downward Reestimate............... 2
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 5 5 5
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 3 5 5
23.95 Total new obligations............. -5 -5 -5
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 3 5 5
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 4 5 7
73.10 Total new obligations............. 5 5 5
73.20 Total outlays (gross)............. -4 -3 -4
--------- --------- ----------
74.40 Obligated balance, end of year.. 5 7 8
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 1 1
86.93 Outlays from discretionary
balances........................ 3 2 3
--------- --------- ----------
87.00 Total outlays (gross)........... 4 3 4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3 5 5
90.00 Outlays........................... 4 3 4
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3108-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Rural economic development loans
program......................... 15 25 25
--------- --------- ----------
115901Total direct loan levels.......... 15 25 25
Direct loan subsidy (in percent):
132001Rural economic development loans
program......................... 18.76 18.79 19.97
--------- --------- ----------
132901Weighted average subsidy rate..... 18.76 18.79 19.97
Direct loan subsidy budget authority:
133001Rural economic development loans
program......................... 3 5 5
--------- --------- ----------
133901Total subsidy budget authority.... 3 5 5
Direct loan subsidy outlays:
134001Rural economic development loans
program......................... 4 3 4
--------- --------- ----------

[[Page 151]]

134901Total subsidy outlays............. 4 3 4
Direct loan downward reestimate subsidy budget
authority:
137001Downward reestimates subsidy
budget authority................ -2
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -2
---------------------------------------------------------------------------

Rural economic development loans are made for the purpose of
promoting rural economic development and job creation projects. Loans
are made to electric and telecommunication borrowers, who, in turn,
finance rural development projects in their service areas. Program costs
are derived from interest earnings on borrowers' ``cushion of credit''
loan prepayments.

As required by the Federal Credit Reform Act of 1990, this account
records, for this program, the subsidy costs associated with the direct
loans obligated in 1992 and beyond. The subsidy amounts are estimated on
a present value basis.

Rural Economic Development Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loans...................... 15 25 25
00.03 Interest expense.................. 4 6 6
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 19 31 31
08.89 Downward subsidy reestimate paid
to receipt account.............. 2
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 21 31 31
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2
22.00 New financing authority (gross)... 19 23 23
22.10 Resources available from
recoveries of prior year
obligations..................... 1 10 10
22.70 Balance of authority to borrow
withdrawn....................... -1 -2 -2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 21 31 31
23.95 Total new obligations............. -21 -31 -31
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 14 7 10
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 19 19 19
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -1
68.47 Portion applied to repay debt. -13 -3 -6
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 5 16 13
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 19 23 23
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 13 12 11
73.10 Total new obligations............. 21 31 31
73.20 Total financing disbursements
(gross)......................... -22 -22 -19
73.45 Recoveries of prior year
obligations..................... -1 -10 -10
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 1
--------- --------- ----------
74.40 Obligated balance, end of year.. 12 11 13
87.00 Total financing disbursements
(gross)......................... 22 22 19
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal Funds: Program Account -4 -3 -3
88.25 Interest on uninvested funds.. -1 -2 -2
88.40 Non-Federal sources: Repayment
of Principal................ -14 -14 -14
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -19 -19 -19
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 1 4 4
90.00 Financing disbursements........... 4 3
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4176-0-3-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 15 25 25
--------- --------- ----------
1150 Total direct loan obligations... 15 25 25
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 73 75 79
1231 Disbursements: Direct loan
disbursements................... 16 18 19
1251 Repayments: Repayments and
prepayments..................... -14 -14 -14
--------- --------- ----------
1290 Outstanding, end of year........ 75 79 84
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4176-0-3-452

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
1101

Federal assets: Fund balances with Treasury

Net value of assets related to
post-1991 direct loans
receivable:

1401

Direct loans receivable, gross

1405

Allowance for subsidy cost (-)

-10

-8

1499

Net present value of assets related to direct loans

1999

Total assets

LIABILITIES:
Federal liabilities:

2104

Resources payable to Treasury

2105

Other

2999

Total liabilities

4999

Total liabilities and net position

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

Rural Business Investment Programs Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Debenture subsidy................. 5
00.09 Administrative expense............ 1 2
00.10 Grants............................ 3
--------- --------- ----------
10.00 Total new obligations........... 1 10
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 100 99 89
22.00 New budget authority (gross)...... -89
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 100 99
23.95 Total new obligations............. -1 -10
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 99 89
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance permanently
reduced....................... -89
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1
73.10 Total new obligations............. 1 10
73.20 Total outlays (gross) (-)......... -1 -9 88
--------- --------- ----------

[[Page 152]]

74.40 Obligated balance, end of year.. 1 89
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -89
86.98 Outlays from mandatory balances... 1 9 1
--------- --------- ----------
87.00 Total outlays (gross)........... 1 9 -88
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -89
90.00 Outlays........................... 1 9 -88
---------------------------------------------------------------------------

The Rural Business Investment Program is authorized under 7 U.S.C.
2009cc. The purpose of this program is to promote economic development
and the creation of wealth and job opportunities in rural areas and
among individuals living in those areas by encouraging developmental
capital investments in smaller enterprises primarily located in rural
areas. RBS may enter into participation agreements with rural business
investment companies and may guarantee debentures of rural business
investment companies to enable each rural business investment company to
make developmental venture capital investments in smaller enterprises in
rural areas. Grants will be made to rural business investment companies
and other entities for the purpose of providing operational assistance
to smaller enterprises financed by rural business investment companies.
The Rural Business Investment Program was authorized and provided
mandatory funding by section 6029 of the Farm Security and Rural
Investment Act of 2002, Public Law 107-171. The Act provides such sums
as may be necessary for the cost of guaranteeing $280 million of
debentures and $44 million to make grants, an estimated total of
$100,000,000, to remain available until expended from the funds of the
Commodity Credit Corporation.

In 2005, the program is limited to $10 million. For 2006, the Budget
cancels unobligated balances, leaving zero for these purposes. This is
the expected obligation amount for these funds because, like many new
business programs, the target community takes a while to develop. The
split of debentures, grants, and administrative expenses in 2005 and out
will be determined as Rural Development works with Small Business
Administration to implement this program.

As required by the Federal Credit Reform Act of 1990, this account
records, for this program, the subsidy costs associated with the loan
guarantees committed in 1992 and beyond, as well as administrative
expenses of this program. The subsidy amounts are estimated on a present
value basis; the administrative expenses are estimated on a cash basis.

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1907-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Loan guarantee levels............. 60
--------- --------- ----------
215901Total loan guarantee levels....... 60
Guaranteed loan subsidy (in percent):
232001Subsidy rate...................... 0.00 8.05
--------- --------- ----------
232901Weighted average subsidy rate..... 0.00 8.05
Guaranteed loan subsidy budget authority:
233001Subsidy budget authority..........
--------- --------- ----------
233901Total subsidy budget authority....
Guaranteed loan subsidy outlays:
234001Subsidy outlays................... 5
--------- --------- ----------
234901Total subsidy outlays............. 5
----------------------------------------------------------------------------

Administrative expense data:
351001Budget authority..................
358001Outlays from balances............. 1 2
---------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1907-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
25.2 Administrative Expenses........... 1 2
41.0 Grants, subsidies, and
contributions................... 8
--------- --------- ----------
99.9 Total new obligations........... 1 10
---------------------------------------------------------------------------

Rural Business Investment Program Guarantee Financing Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 5
22.00 New financing authority (gross)... 5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5 5
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 5 5
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 5
87.00 Total financing disbursements
(gross).........................
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

88.00 Offsetting collections (cash)
from: Federal sources......... -5
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -5
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4033-0-3-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 60
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 60
2199 Guaranteed amount of guaranteed
loan commitments................ 48
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 2
2231 Disbursements of new guaranteed
loans........................... 2 8
2251 Repayments and prepayments........ -1
--------- --------- ----------
2290 Outstanding, end of year........ 2 9
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 1 7
---------------------------------------------------------------------------

Renewable Energy Program

For the cost of a program of direct loans, loan guarantees, and
grants, under the same terms and conditions as authorized by section
9006 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
8106), [$23,000,000] $10,000,000 for direct and guaranteed renewable
energy loans and grants: Provided, That the cost of direct loans and
loan guarantees, including the cost of modifying such loans,

[[Page 153]]

shall be as defined in section 502 of the Congressional Budget Act of
1974. (Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Guaranteed loan subsidy........... 11 5
00.10 Renewable energy grants........... 23 12 5
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 23 23 10
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 23 23 10
23.95 Total new obligations............. -23 -23 -10
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 23 23 10
40.35 Appropriation permanently
reduced....................... -23
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 23 23 -13
Mandatory:

62.00 Transferred from other accounts. 23
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 23 23 10
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 22 43 40
73.10 Total new obligations............. 23 23 10
73.20 Total outlays (gross)............. -1 -26 -28
73.40 Adjustments in expired accounts
(net)........................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 43 40 22
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 6 -8
86.93 Outlays from discretionary
balances........................ 1 20 19
86.97 Outlays from new mandatory
authority....................... 10
86.98 Outlays from mandatory balances... 7
--------- --------- ----------
87.00 Total outlays (gross)........... 1 26 28
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 23 23 10
90.00 Outlays........................... 1 26 28
---------------------------------------------------------------------------

Renewable Energy Systems and Energy Efficiency Improvements is
authorized under 7 U.S.C. 8106. This program provides direct loans, loan
guarantees, and grants to farmers, ranchers, and small rural businesses
to purchase renewable energy systems and make energy efficiency
improvements. The Farm Security and Rural Investment Act of 2002, Public
Law 107-171, dated May 13, 2002, provides mandatory funding for this
program. Of the funds of the Commodity Credit Corporation, the Secretary
shall make available $23,000,000 for each of fiscal years 2003 through
2007. In 2005, the full $23 million is blocked from being spent.
Similarly, in 2006 the full $23 million in 2006 funds is canceled.
However, $10 million in discretionary funding is provided for this
purpose to ensure that any unmet need by other Federal programs can
potentially be accomodated.

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1908-0-1-451 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Loan guarantee levels............. 615 286
--------- --------- ----------
215901Total loan guarantee levels....... 615 286
Guaranteed loan subsidy (in percent):
232001Subsidy rate...................... 1.87 1.75
--------- --------- ----------
232901Weighted average subsidy rate..... 1.87 1.75
Guaranteed loan subsidy budget authority:
233001Subsidy budget authority.......... 11 5
--------- --------- ----------
233901Total subsidy budget authority.... 11 5
Guaranteed loan subsidy outlays:
234001Subsidy outlays................... 1 6
--------- --------- ----------
234901Total subsidy outlays............. 1 6
---------------------------------------------------------------------------

Renewable Energy Guaranteed Loan Financing Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1
22.00 New financing authority (gross)... 1 6
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1 7
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1 7
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 1 6
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

88.00 Offsetting collections (cash)
from: Federal sources......... -1 -6
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -1 -6
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4267-0-3-451 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation................. 615 286
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 615 286
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 248
2231 Disbursements of new guaranteed
loans........................... 275 360
2251 Repayments and prepayments........ -27 -61
--------- --------- ----------
2290 Outstanding, end of year........ 248 547
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 195 429
---------------------------------------------------------------------------

Public enterprise funds:

Alternative Agricultural Research and Commercialization Corporation
Revolving Fund

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4144-0-3-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1
22.00 New budget authority (gross)...... -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation......
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance permanently
reduced....................... -1
----------------------------------------------------------------------------

[[Page 154]]

Net budget authority and outlays:
89.00 Budget authority.................. -1
90.00 Outlays...........................
---------------------------------------------------------------------------

The Alternative Agricultural Research and Commercialization Act of
1990 (7 U.S.C. 5901 et seq.) was repealed by 116 Stat. 418. USDA is
currently disposing of the assets of the fund as prescribed in the
statute. The unobligated balances of this account were rescinded in FY
2004.

RURAL UTILITIES SERVICE

Federal Funds

General and special funds:

High Energy Cost Grants

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2042-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct Program Activity........... 31 51
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 31 51
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 26 23
22.00 New budget authority (gross)...... 28 28
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 54 51
23.95 Total new obligations............. -31 -51
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 23
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

42.00 Transferred from other accounts. 28 28
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 15 41
73.10 Total new obligations............. 31 51
73.20 Total outlays (gross)............. -16 -25 -25
--------- --------- ----------
74.40 Obligated balance, end of year.. 15 41 16
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 16 14
86.93 Outlays from discretionary
balances........................ 11 25
--------- --------- ----------
87.00 Total outlays (gross)........... 16 25 25
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 28 28
90.00 Outlays........................... 16 25 25
---------------------------------------------------------------------------

Funding was provided in 2001 through 2005 to support grants for
areas that have high energy costs. These grants can be made to eligible
entities or the Denali Commission to construct, extend, upgrade, and
otherwise improve energy generation, transmission, or distribution
facilities serving communities in which the average residential
expenditure for home energy is at least 275 percent of the national
average residential expenditure for home energy (as determined by the
Energy Information Agency using the most recent data available). Grants
are also available to establish and support a revolving fund to provide
a more cost-effective means of purchasing fuel where the fuel cannot be
shipped by means of surface transportation.

Credit accounts:

Rural Water and Waste Disposal Direct Loans Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
Operating program:

00.01 Direct loans.................... 895 1,042 1,000
00.02 Interest on Treasury borrowing.. 342 532 640
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal...................... 1,237 1,574 1,640
08.02 Subsidy reestimate paid to receipt
account......................... 102 1 1
--------- --------- ----------
10.00 Total new obligations........... 1,339 1,575 1,641
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 185 181
22.00 New financing authority (gross)... 1,328 1,354 1,601
22.10 Resources available from
recoveries of prior year
obligations..................... 52 40 40
22.70 Balance of authority to borrow
withdrawn....................... -46
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,519 1,575 1,641
23.95 Total new obligations............. -1,339 -1,575 -1,641
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 181
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

47.00 Authority to borrow............. 967
Mandatory:

67.10 Authority to borrow............. 916 1,174
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 622 625 630
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -48 13 -3
68.47 Portion applied to repay debt. -213 -200 -200
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 361 438 427
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 1,328 1,354 1,601
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2,271 2,462 2,546
73.10 Total new obligations............. 1,339 1,575 1,641
73.20 Total financing disbursements
(gross)......................... -1,144 -1,438 -1,568
73.45 Recoveries of prior year
obligations..................... -52 -40 -40
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 48 -13 3
--------- --------- ----------
74.40 Obligated balance, end of year.. 2,462 2,546 2,582
87.00 Total financing disbursements
(gross)......................... 1,144 1,438 1,568
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -71 -81 -72
88.25 Interest on uninvested funds.. -43 -40 -41
88.40 Repayment of principal........ -272 -246 -252
88.40 Interest Received on Loans.... -264 -258 -265
88.40 Non-Federal sources........... 28
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -622 -625 -630
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 48 -13 3
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 754 716 974
90.00 Financing disbursements........... 522 813 938
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4226-0-3-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 895 1,042 1,000
--------- --------- ----------
1150 Total direct loan obligations... 895 1,042 1,000
----------------------------------------------------------------------------

[[Page 155]]

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 5,565 6,009 6,669
1231 Disbursements: Direct loan
disbursements................... 700 906 926
1251 Repayments: Repayments and
prepayments..................... -273 -246 -252
1264 Write-offs for default: Other
adjustments, net................ 17
--------- --------- ----------
1290 Outstanding, end of year........ 6,009 6,669 7,343
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from direct loans obligated in 1992 and beyond. The amounts in
this account are a means of financing and are not included in the budget
totals. The subsidy cost of these loans is provided through the Rural
Community Advancement Program. Loans made prior to 1992 are recorded in
the Rural Development Insurance Fund Liquidating Account.

The water and waste disposal program makes loans and grants to
finance water and waste disposal facilities in rural areas.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4226-0-3-452

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

Investments in US securities:
1106

Receivables, net

Net value of assets related to
post-1991 direct loans
receivable:

1401

Direct loans receivable, gross

5,565

6,009

1402

Interest receivable

1405

Allowance for subsidy cost (-)

-809

-760

1499

Net present value of assets related to direct loans

4,806

5,314

1999

Total assets

4,810

5,387

LIABILITIES:
Federal liabilities:

2103

Debt

4,787

5,373

2105

Other

2999

Total liabilities

4,810

5,387

4999

Total liabilities and net position

4,810

5,387

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

Rural Water and Waste Water Disposal Guaranteed Loans Financing Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 1 1
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 1 1
87.00 Total financing disbursements
(gross).........................
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -1 -1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -1 -1
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4218-0-3-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation................. 41 75 75
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 41 75 75
2199 Guaranteed amount of guaranteed
loan commitments................ 33 60 60
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 29 33 34
2231 Disbursements of new guaranteed
loans........................... 4 5 5
2251 Repayments and prepayments........ -4 -4
--------- --------- ----------
2290 Outstanding, end of year........ 33 34 35
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 26 27 27
---------------------------------------------------------------------------

This account finances loan guarantee commitments for water systems,
and waste disposal facilities in rural areas.

Rural Electrification and Telecommunications Loans Program Account

(including transfer of funds)

Insured loans pursuant to the authority of section 305 of the Rural
Electrification Act of 1936 (7 U.S.C. 935) shall be made as follows: 5
percent rural electrification loans, [$120,000,000] $100,000,000;
municipal rate rural electric loans, $100,000,000; loans made pursuant
to section 306 of that Act, rural electric, [$2,100,000,000]
$1,620,000,000; Treasury rate direct electric loans, [$1,000,000,000;
guaranteed underwriting loans pursuant to section 313A, $1,000,000,000]
$700,000,000; 5 percent rural telecommunications loans, $145,000,000;
cost of money rural telecommunications loans, [$250,000,000]
$425,000,000; and for loans made pursuant to section 306 of that Act,
rural telecommunications loans, [$125,000,000] $100,000,000.
For the cost, as defined in section 502 of the Congressional Budget
Act of 1974, including the cost of modifying loans, of direct and
guaranteed loans authorized by sections 305 and 306 of the Rural
Electrification Act of 1936 (7 U.S.C. 935 and 936), as follows: cost of
rural electric loans, [$5,058,000] $6,040,000, and the cost of
telecommunications loans, [$100,000] $212,000: Provided, That
notwithstanding section 305(d)(2) of the Rural Electrification Act of
1936, borrower interest rates may exceed 7 percent per year.
In addition, for administrative expenses necessary to carry out the
direct and guaranteed loan programs, [$38,277,000] $39,933,000 which
shall be transferred to and merged with the appropriation for ``Rural
Development, Salaries and Expenses''. (Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
2005.)

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1230-0-1-271 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
0101 Negative subsidies/subsidy
reestimates..................... 35 37 39
0102 Negative subsidies/subsidy
reestimates..................... 29
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 5 6
00.05 Reestimate of direct loan subsidy. 285

[[Page 156]]

00.06 Interest on reestimates of direct
loan subsidy.................... 68
00.09 Administrative expenses subject to
limitation...................... 38 38 40
--------- --------- ----------
10.00 Total new obligations........... 391 43 46
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 391 43 46
23.95 Total new obligations............. -391 -43 -46
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 38 43 46
Mandatory:

60.00 Appropriation................... 353
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 391 43 46
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 62 50 33
73.10 Total new obligations............. 391 43 46
73.20 Total outlays (gross)............. -401 -60 -50
73.40 Adjustments in expired accounts
(net)........................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 50 33 29
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 38 38 41
86.93 Outlays from discretionary
balances........................ 10 22 9
86.97 Outlays from new mandatory
authority....................... 353
--------- --------- ----------
87.00 Total outlays (gross)........... 401 60 50
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 391 43 46
90.00 Outlays........................... 401 60 50
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1230-0-1-271 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Hardship electric................. 240 120 100
115002Municipal electric................ 645 100 100
115003Treasury electric................. 1,181 700 700
115004FFB electric...................... 1,765 2,000 1,620
115005Hardship telephone................ 145 145 145
115006Treasury telephone................ 49 250 424
115007FFB telephone..................... 320 125 100
--------- --------- ----------
115901Total direct loan levels.......... 4,345 3,440 3,189
Direct loan subsidy (in percent):
132001Hardship electric................. -2.33 3.04 0.92
132002Municipal electric................ -2.42 1.35 5.05
132003Treasury electric................. -0.06 -0.05 0.01
132004FFB electric...................... -1.99 -2.23 -0.48
132005Hardship telephone................ -4.44 -1.21 -1.80
132006Treasury telephone................ 0.05 0.04 0.05
132007FFB telephone..................... -1.85 -1.95 -1.57
--------- --------- ----------
132901Weighted average subsidy rate..... -1.60 -1.28 -0.18
Direct loan subsidy budget authority:
133001Hardship electric................. -6 4 1
133002Municipal electric................ -16 1 5
133003Treasury electric.................
133004FFB electric...................... -35 -45 -8
133005Hardship telephone................ -7 -2 -2
133006Treasury telephone................
133007FFB telephone..................... -6 -2 -2
--------- --------- ----------
133901Total subsidy budget authority.... -70 -44 -6
Direct loan subsidy outlays:
134001Hardship electric................. 4 4 2
134002Municipal electric................ -2 -3
134003Treasury electric.................
134004FFB electric...................... -30 -37 -37
134005Hardship telephone................ 2 13 3
134006Treasury telephone................
134007FFB telephone..................... -1 -2 -2
--------- --------- ----------
134901Total subsidy outlays............. -25 -24 -37
Direct loan upward reestimate subsidy budget
authority:
135001Hardship electric................. 1
135002Municipal electric................ 223
135003Treasury electric................. 13
135004FFB electric...................... 106
135005Hardship telephone................ 1
135006Treasury telephone................ 1
135007FFB telephone..................... 8
--------- --------- ----------
135901Total upward reestimate budget
authority....................... 353
Direct loan downward reestimate subsidy budget
authority:
137001Hardship electric................. -17
137002Municipal electric................ -3
137004FFB electric...................... -1
137005Hardship telephone................ -2
137006Treasury telephone................ -5
137007FFB telephone..................... -1
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -29
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
215001Guaranteed electric............... 100
215002Guaranteed underwriting loans..... 1,000
--------- --------- ----------
215901Total loan guarantee levels....... 1,100
Guaranteed loan subsidy (in percent):
232001Guaranteed electric............... 0.06 0.06 0.00
232002Guaranteed underwriting loans..... 0.00 0.00 0.00
--------- --------- ----------
232901Weighted average subsidy rate..... 0.00 0.01 0.00
----------------------------------------------------------------------------

Administrative expense data:
351001Budget authority.................. 38 38 40
359001Outlays from new authority........ 38 38 40
---------------------------------------------------------------------------

The Rural Utilities Service (RUS) conducts the rural electrification
and the rural telecommunications loan programs. The rural
electrification loan program is financed through RUS direct and
guaranteed loans for the operation of generating plants, electric
transmission, and distribution lines or systems. The rural
telecommunications loan program is financed through RUS direct loans for
construction, expansion, and operation of telecommunications lines and
facilities or systems.

USDA will propose rule changes to require recertification of rural
status for each electric and telecommunications borrower on the first
loan request received in or after 2006 and on the first loan request
received after each subsequent Census.

USDA will determine if the current method of issuing loans, ``first
in; first out,'' provides adequate support to the areas with the highest
priority needs. USDA will complete an analysis of electric loans made in
2002 and 2003 to determine the characteristics of the communities to
which the loans are going, who the loans are supporting, benefits
derived from the loans by the communities, and how many loans and
dollars are going to support poverty areas.

RUS will rescind loans obligated, but not issued, more than ten
years ago. Most electric loans obligated more than ten years ago have
either been issued or cancelled. However, current law prohibits the
rescission of telecommunications loans in most instances. This has
resulted in many outstanding obligations that are older than ten years.
Since loans are issued for specific projects, and technology is changing
at a very fast pace, it is doubtful that the original project will be
accomplished ten years after a loan is approved. Legislation will be
proposed to allow the rescission of all electric and telecommunications
loan obligations that are more than ten years old.

As required by the Federal Credit Reform Act of 1990, this account
records, for rural electrification and telecommuni

[[Page 157]]

cations programs, the subsidy costs associated with the direct and
guaranteed loans obligated in 1992 and beyond (including modifications
of direct loans or loan guarantees that resulted from obligations or
commitments in any year), as well as administrative expenses of this
program. The subsidy amounts are estimated on a present value basis; the
administrative expenses are estimated on a cash basis.

Object Classification (in millions of dollars)

Rural Electrification and Telecommunications Direct Loan Financing
Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loans...................... 4,345 3,440 3,189
00.02 Interest on Treasury borrowing.... 854 950 950
--------- --------- ----------
00.91 Subtotal, Operating program..... 5,199 4,390 4,139
08.01 Negative subsidy paid to receipt
account......................... 70 47 12
08.02 Downward subsidy amount paid to
receipt account................. 20
08.04 Interest on downward subsidy
reestimate...................... 9
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 99 47 12
--------- --------- ----------
10.00 Total new obligations........... 5,298 4,437 4,151
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 10 215
22.00 New financing authority (gross)... 5,500 4,222 4,151
22.10 Resources available from
recoveries of prior year
obligations..................... 125
22.70 Balance of authority to borrow
withdrawn....................... -123
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,512 4,437 4,151
23.95 Total new obligations............. -5,298 -4,437 -4,151
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 215
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

47.00 Authority to borrow............. 4,444
Mandatory:

67.10 Authority to borrow............. 3,071 2,928
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 1,621 1,699 1,779
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -13 -73 -73
68.47 Portion applied to repay debt. -552 -475 -483
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 1,056 1,151 1,223
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 5,500 4,222 4,151
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 9,501 10,849 11,928
73.10 Total new obligations............. 5,298 4,437 4,151
73.20 Total financing disbursements
(gross)......................... -3,837 -3,431 -3,453
73.45 Recoveries of prior year
obligations..................... -125
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 13 73 73
--------- --------- ----------
74.40 Obligated balance, end of year.. 10,849 11,928 12,699
87.00 Total financing disbursements
(gross)......................... 3,837 3,431 3,453
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payment from program account.. -364 -17 -5
88.25 Interest on uninvested funds.. -60 -132 -132
88.40 Repayment of principal........ -469 -417 -497
88.40 Interest received on loans.... -726 -1,133 -1,145
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,619 -1,699 -1,779
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 13 73 73
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. -2
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 3,892 2,596 2,445
90.00 Financing disbursements........... 2,216 1,732 1,674
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4208-0-3-271 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 4,345 3,440 3,189
--------- --------- ----------
1150 Total direct loan obligations... 4,345 3,440 3,189
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 14,069 16,519 19,533
1231 Disbursements: Direct loan
disbursements................... 2,919 3,431 3,372
1251 Repayments: Repayments and
prepayments..................... -469 -417 -497
--------- --------- ----------
1290 Outstanding, end of year........ 16,519 19,533 22,408
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from electric and telecommunication direct loans obligated in
1992 and beyond (including modifications of direct loans that resulted
from obligations in any year). The amounts in this account are a means
of financing and are not included in the budget totals.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4208-0-3-271

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

166

Investments in US securities:
1106

Receivables, net

497

Net value of assets related to
post-1991 direct loans
receivable:

1401

Direct loans receivable, gross

12,413

14,675

1402

Interest receivable

198

1405

Allowance for subsidy cost (-)

-1,113

-748

1499

Net present value of assets related to direct loans

11,498

13,931

1999

Total assets

12,012

14,186

LIABILITIES:
2103

Federal liabilities: Debt

12,006

14,167

2207

Non-Federal liabilities: Other

2999

Total liabilities

12,012

14,186

4999

Total liabilities and net position

12,012

14,186

--------------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

114

Investments in US securities:
1106

Receivables, net

Net value of assets related to
post-1991 direct loans
receivable:

1401

Direct loans receivable, gross

1,656

1,844

1402

Interest receivable

1405

Allowance for subsidy cost (-)

-46

-10

1499

Net present value of assets related to direct loans

1,611

1,835

1999

Total assets

1,698

1,973

LIABILITIES:
2103

Federal liabilities: Debt

1,671

1,953

2207

Non-Federal liabilities: Other

2999

Total liabilities

1,698

1,973

[[Page 158]]

4999

Total liabilities and net position

1,698

1,973

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

Rural Electrification and Telecommunications Guaranteed Loans Financing
Account

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4209-0-3-271 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation................. 1,100
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 1,100
2199 Guaranteed amount of guaranteed
loan commitments................ 1,100
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 223 222 1,292
2231 Disbursements of new guaranteed
loans........................... 19 1,100
2251 Repayments and prepayments........ -20 -30 -40
--------- --------- ----------
2290 Outstanding, end of year........ 222 1,292 1,252
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 222 1,292 1,252
---------------------------------------------------------------------------

This account finances loan guarantee commitments.

Rural Electrification and Telecommunications Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Interest expense on certificates
of beneficial ownership......... 317 317 317
00.02 Interest expense, FFB direct...... 522 495 464
00.03 Other interest expense............ 9 13 13
00.04 Direct loans...................... 3
00.05 Other............................. 78 72 72
--------- --------- ----------
10.00 Total new obligations........... 929 897 866
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 286 1,657 1,352
22.00 New budget authority (gross)...... 2,561 1,024 894
22.10 Resources available from
recoveries of prior year
obligations..................... 18
22.40 Capital transfer to general fund.. -280 -432 -28
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,585 2,249 2,218
23.95 Total new obligations............. -929 -897 -866
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1,657 1,352 1,352
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance rescission
proposal...................... -5
Mandatory:

60.00 Appropriation................... 161 161
60.36 Unobligated balance permanently
reduced....................... -3 -5
62.00 Transferred from other accounts. 20 19 19
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 17 175 180
67.10 Authority to borrow............. 2
69.00 Offsetting collections (cash)..... 3,060 1,848 1,622
69.27 Capital transfer to general fund.. -20
69.47 Portion applied to repay debt..... -498 -999 -903
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 2,542 849 719
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,561 1,024 894
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 321 269 175
73.10 Total new obligations............. 929 897 866
73.20 Total outlays (gross)............. -963 -991 -996
73.45 Recoveries of prior year
obligations..................... -18
--------- --------- ----------
74.40 Obligated balance, end of year.. 269 175 45
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 842 825 830
86.98 Outlays from mandatory balances... 121 166 166
--------- --------- ----------
87.00 Total outlays (gross)........... 963 991 996
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.40 Loans repaid.................. -1,740 -1,035 -905
88.40 Interest from loans........... -888 -813 -717
88.40 Undistributed Charges......... -432
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -3,060 -1,848 -1,622
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -499 -824 -728
90.00 Outlays........................... -2,096 -857 -626
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4230-0-3-271 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 17,104 14,948 13,403
1231 Disbursements: Direct loan
disbursements................... 3 4 11
1251 Repayments: Repayments and
prepayments..................... -2,224 -1,545 -1,324
1261 Adjustments: Capitalized interest. 64
Write-offs for default:

1263 Direct loans....................
1264 Other adjustments, net.......... 1 -4 -3
--------- --------- ----------
1290 Outstanding, end of year........ 14,948 13,403 12,087
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4230-0-3-271 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 293 255 233
2231 Disbursements of new guaranteed
loans...........................
2251 Repayments and prepayments........ -38 -16 -15
2263 Adjustments: Terminations for
default that result in claim
payments........................ -6 -6
--------- --------- ----------
2290 Outstanding, end of year........ 255 233 212
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 255 233 212
---------------------------------------------------------------------------

STATUS OF AGENCY DEBT

[In millions of dollars]

2004 actual 2005 est. 2006 est.
Agency debt held by FFB:
Outstanding FFB direct, start of
year............................ 8,397 7,902 7,065
Outstanding Certificate of
Beneficial Ownership (CBO's),
start of year................... 4,270 4,270 4,270
New agency borrowing, FFB direct.. 0 0 0
Repayments and prepayments, FFB
Direct.......................... 3 3 3
Repayments, CBO's................. -498 -840 -840
................................ 0 0 0
Outstanding FFB direct, end of
year............................ 7,902 7,065 6,228
Outstanding CBO's, end of year.... 4,270 4,270 4,270
====================================

As required by the Federal Credit Reform Act of 1990, this account
records, for rural electrification and telecommuni

[[Page 159]]

cations programs, all cash flows to and from the Government resulting
from direct loans obligated and loan guarantees committed prior to 1992.
All new activity in RETRF in 1992 and beyond is recorded in
corresponding program and financing accounts.
The Rural Utilities Service (RUS) will continue to service all loans
in this account providing business management and technical assistance
to the borrowers on a regular basis over the life of the loans.
RUS will rescind loans obligated, but not issued, more than ten
years ago. Most electric loans obligated more than ten years ago have
either been issued or cancelled. However, current law prohibits the
rescission of telecommunications loans in most instances. This has
resulted in many outstanding obligations that are older than ten years.
Since loans are issued for specific projects, and technology is changing
at a very fast pace, it is doubtful that the original project will be
accomplished ten years after a loan is approved. Legislation will be
proposed to allow the rescission of all electric and telecommunications
loan obligations that are more than ten years old.
Rural electric.--This program is financed through RUS direct loans
for the construction and operation of generating plants, electric
transmission, and distribution lines or systems.
The following tables reflect statistics on loans made through the
liquidating account only. Since 1992 new electric and telephone loans
have been made through a separate program account.

ELECTRIC PROGRAM STATISTICS

[dollars in millions]

2004 actual 2005 est. 2006 est.
Cumulative RUS financed direct loans 21,851 21,851 21,851
Cumulative FFB financed direct loans 27,084 27,037 26,987
Cumulative RUS funds advanced....... 21,832 21,834 21,834
Unadvanced RUS funds, end of year... 73 69 66
Cumulative RUS principal repaid..... 16,728 16,913 17,678
Cumulative RUS interest paid........ 12,363 12,952 13,594
Cumulative loan guarantee
commitments\1\...................... 0 0 0
Number of borrowers................. 712 711 704

\1\ Represents loans financed by private lenders, including
refinanced direct loans, FFB.

Rural telecommunications.--This loan program is financed through RUS
direct loans for the construction, expansion, and operation of
telecommunications lines and facilities or systems.

TELECOMMUNICATIONS PROGRAM STATISTICS

[dollars in millions]

2004 actual 2005 est. 2006 est.
Cumulative RUS financed direct loans 6,023 6,010 5,990
Cumulative FFB financed direct loans 562 562 562
Cumulative RUS funds advanced....... 5,900 5,905 5,913
Unadvanced RUS funds, end of period. 131 130 122
Cumulative RUS principal repaid..... 4,207 4,290 4,506
Cumulative RUS interest paid........ 3,098 3,234 3,415
Cumulative loan guarantee
commitments \1\..................... 0 0 0
Number of borrowers................. 600 595 589

\1\ Other lenders--privately financed direct loans, FFB.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4230-0-3-271

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
1101

Federal assets: Fund balances with Treasury

405

1,477

Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601

Direct loans, gross (Electric)

15,263

13,283

1602

Interest receivable

1603

Allowance for estimated uncollectible loans and interest (-)

-1,935

-1,780

1604

Direct loans and interest receivable, net

13,334

11,531

1699

Value of assets related to direct loans

13,334

11,531

1999

Total assets

13,739

13,008

LIABILITIES:
Federal liabilities:

2103

Debt

15,016

14,446

2104

Resources payable to Treasury

-1,310

-1,505

2105

Other

2999

Total liabilities

13,739

13,008

4999

Total liabilities and net position

13,739

13,008

--------------------------------------------------------------------------------------------------
ASSETS:
1101

Federal assets: Fund balances with Treasury

146

392

1201

Non-Federal assets: Investments in non-Federal securities, net

409

388

Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601

Direct loans, gross (telephone)

1,843

1,665

1602

Interest receivable

1603

Allowance for estimated uncollectible loans and interest (-)

-147

-166

1604

Direct loans and interest receivable, net

1,697

1,508

1699

Value of assets related to direct loans

1,697

1,508

1999

Total assets

2,252

2,289

LIABILITIES:
Federal liabilities:

2103

Debt

1,373

1,369

2104

Resources payable to Treasury

865

905

2105

Other

2999

Total liabilities

2,241

2,278

NET POSITION:
3300

Cumulative results of operations

3999

Total net position

4999

Total liabilities and net position

2,252

2,289

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

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4230-0-3-271 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
25.2 Other services.................... 78 72 72
33.0 Investments and loans............. 12 13 13
43.0 Interest and dividends............ 839 812 781
--------- --------- ----------
99.9 Total new obligations........... 929 897 866
---------------------------------------------------------------------------

Rural Telephone Bank Program Account

(including transfer of funds)

The Rural Telephone Bank is hereby authorized to make such
expenditures, within the limits of funds available to such corporation
in accord with law, and to make such contracts and commitments without
regard to fiscal year limitations as provided by section 104 of the
Government Corporation Control Act, as may be necessary in carrying out
its authorized programs. [During fiscal year 2005 and within the
resources and authority available, gross obligations for the principal
amount of direct loans shall be $175,000,000.]
[In addition, for] For administrative expenses, including audits,
necessary to [carry out the loan programs, $3,152,000] continue to
service existing loans, $2,500,000, to be derived by transfer of
unobligated balances from the Rural Telephone Bank Liquidating Account,
which shall be transferred to and merged with the appropriation for
``Rural Development, Salaries and Expenses''. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1231-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
0101 Negative subsidies/subsidy
reestimates..................... 11
---------------------------------------------------------------------------

[[Page 160]]

Program and Financing (in millions of dollars)

Obligations by program activity:
00.09 Administrative expenses subject to
limitation...................... 3 3 3
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 3 3 3
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 3 3 3
23.95 Total new obligations............. -3 -3 -3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 3 3
42.00 Transferred from other accounts. 3
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 3 3 3
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 20 18 17
73.10 Total new obligations............. 3 3 3
73.20 Total outlays (gross)............. -4 -4 -4
73.40 Adjustments in expired accounts
(net)........................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 18 17 16
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3 3 3
86.93 Outlays from discretionary
balances........................ 1 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 4 4 4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 3 3 3
90.00 Outlays........................... 5 4 4
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1231-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Rural Telephone Bank.............. 170 175
--------- --------- ----------
115901Total direct loan levels.......... 170 175
Direct loan subsidy (in percent):
132001Rural Telephone Bank.............. -4.32 -1.83 0.00
--------- --------- ----------
132901Weighted average subsidy rate..... -4.32 -1.83 0.00
Direct loan subsidy budget authority:
133001Rural Telephone Bank.............. -7 -3
--------- --------- ----------
133901Total subsidy budget authority.... -7 -3
Direct loan subsidy outlays:
134001Subsidy outlays................... 1 1
--------- --------- ----------
134901Total subsidy outlays............. 1 1
Direct loan downward reestimate subsidy budget
authority:
137001Rural Telephone Bank.............. -11
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -11
----------------------------------------------------------------------------

Administrative expense data:
351001Budget authority.................. 3 3 3
359001Outlays from new authority........ 3 3 3
---------------------------------------------------------------------------

The President's Budget proposes no more federally funded loans.
Additional telecommunication loan funds are proposed for the cost of
money telecommunication loans to maintain the level of funds available
to rural telecommunication borrowers. Funding for the Rural Telephone
Bank's (RTB) administrative expenses will be transferred from the
unobligated balances in the RTB liquidating account. The Budget directs
dissolution of the RTB by paying out all stock. This will allow the RTB
to close as the demand for private lenders has been fulfilled through
other sources. In addition, the stockholders will obtain a cash payout
for their stock while removing this cumbersome program from the
government.

RUS will rescind loans obligated, but not issued, more than ten
years ago. Current law prohibits the rescission of RTB loans in most
instances. This has resulted in many outstanding obligations that are
older than ten years. Since loans are issued for specific projects, and
technology is changing at a very fast pace, it is doubtful that the
original project will be accomplished ten years after a loan is
approved. Legislation will be proposed to allow the rescission of all
RTB loan obligations that are more than ten years old.

As required by the Federal Credit Reform Act of 1990, this account
records, for the RTB, the subsidy costs associated with the direct loans
obligated in 1992 and beyond as well as administrative expenses for the
program. The subsidy amounts are estimated on a present value basis;
administrative expenses are estimated on a cash basis.

Rural Telephone Bank Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Loans...................... 170 175
00.02 Interest on Treasury borrowing.... 25 83 83
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal...................... 195 258 83
08.01 Payment to Receipt Account........ 7 3
08.02 Downward reestimates paid to
receipt accounts................ 7
08.04 Interest on downward reestimate
paid to receipt account......... 4
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal...................... 18 3
--------- --------- ----------
10.00 Total new obligations........... 213 261 83
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 30 1
22.00 New financing authority (gross)... 243 232 83
22.10 Resources available from
recoveries of prior year
obligations..................... 76
22.70 Balance of authority to borrow
withdrawn....................... -78
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 243 262 84
23.95 Total new obligations............. -213 -261 -83
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 30 1 1
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

47.00 Authority to borrow............. 216
Mandatory:

67.10 Authority to borrow............. 136
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 61 154 154
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -2 -3 -3
68.47 Portion applied to repay debt. -32 -55 -68
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 27 96 83
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 243 232 83
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,169 1,205 1,297
73.10 Total new obligations............. 213 261 83
73.20 Total financing disbursements
(gross)......................... -103 -172 -167
73.45 Recoveries of prior year
obligations..................... -76
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 2 3 3
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,205 1,297 1,216
87.00 Total financing disbursements
(gross)......................... 103 172 167
----------------------------------------------------------------------------

[[Page 161]]

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources: Payment from
program account............. -1 -1
88.25 Interest on uninvested funds.. -5 -22 -23
88.40 Principal received on loans... -55 -100 -100
88.40 Interest received on loans.... -23 -23
88.40 Sale of RTB Stock............. -1 -8 -8
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -62 -154 -154
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 2 3 3
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 184 81 -68
90.00 Financing disbursements........... 41 18 13
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4210-0-3-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 170 175
1142 Unobligated direct loan limitation
(-).............................
--------- --------- ----------
1150 Total direct loan obligations... 170 175
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 328 374 446
1231 Disbursements: Direct loan
disbursements................... 102 172 167
1251 Repayments: Repayments and
prepayments..................... -56 -100 -113
--------- --------- ----------
1290 Outstanding, end of year........ 374 446 500
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4210-0-3-452

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

Investments in US securities:
1106

Receivables, net

Net value of assets related to
post-1991 direct loans
receivable:

1401

Direct loans receivable, gross

328

374

1405

Allowance for subsidy cost (-)

-2

-6

1499

Net present value of assets related to direct loans

326

368

1999

Total assets

342

380

LIABILITIES:
Federal liabilities:

2103

Debt

300

343

2105

Other

2999

Total liabilities

342

380

4999

Total liabilities and net position

342

380

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

Rural Telephone Bank Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Dividends......................... 49 29 29
--------- --------- ----------
10.00 Total new obligations (object
class 43.0)................... 49 29 29
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,201 1,291 1,360
22.00 New budget authority (gross)...... 124 98 98
22.10 Resources available from
recoveries of prior year
obligations..................... 15
22.21 Unobligated balance transferred to
other accounts.................. -3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,340 1,389 1,455
23.95 Total new obligations............. -49 -29 -29
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1,291 1,360 1,426
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

61.00 Transferred to other accounts... -20 -19 -19
69.00 Offsetting collections (cash)..... 204 125 139
69.10 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -51
69.27 Capital transfer to general fund.. -9
69.47 Portion applied to repay debt..... -8 -22
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 144 117 117
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 124 98 98
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 34 90 92
73.10 Total new obligations............. 49 29 29
73.20 Total outlays (gross)............. -29 -27 -41
73.45 Recoveries of prior year
obligations..................... -15
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 51
--------- --------- ----------
74.40 Obligated balance, end of year.. 90 92 80
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 12 17 22
86.98 Outlays from mandatory balances... 17 10 19
--------- --------- ----------
87.00 Total outlays (gross)........... 29 27 41
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.25 Interest on uninvested funds.. -119 -14
88.40 Loans repaid.................. -53 -77 -77
88.40 Interest from loans........... -32 -48 -48
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -204 -125 -139
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 51
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -29 -27 -41
90.00 Outlays........................... -174 -98 -98
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4231-0-3-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 476 423 345
1231 Disbursements: Direct loan
disbursements................... 2 2
1251 Repayments: Repayments and
prepayments..................... -53 -77 -60
1263 Write-offs for default: Direct
loans........................... -3 -3
--------- --------- ----------
1290 Outstanding, end of year........ 423 345 284
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this account
records, for the Rural Telephone Bank (RTB), all cash flows to and from
the Government resulting from direct loans obligated prior to 1992. This
account is shown on a cash basis. All new activity in this program in
1992 and beyond is recorded in corresponding program and financing
accounts. Funding for salaries and expenses will be transferred from the
unobligated balances in the RTB liquidating account in 2006.

The RTB provides a supplemental source of financing for rural
telecommunications borrowers. The Bank charges an interest rate based on
the cost of money to the Bank, as prescribed by law, but not less than 5
percent per annum.

[[Page 162]]

In accordance with section 406(c) of the Rural Electrification Act
of 1936, as amended, the first redemption of class A stock occurred on
September 30, 1996. Redemption of class A stock will continue, as
allowed by law, toward the full privatization of the RTB required by
law. The President's Budget proposes that the RTB make no more
Federally-funded loans.

RUS will rescind loans obligated, but not issued, more than ten
years ago. Current law prohibits the rescission of Rural Telephone Bank
loans in most instances. This has resulted in many outstanding
obligations that are older than ten years. Since loans are issued for
specific projects, and technology is changing at a very fast pace, it is
doubtful that the original project will be accomplished ten years after
a loan is approved. Legislation will be proposed to allow the rescission
of all RTB loan obligations that are more than ten years old.

Administrative support is provided for the general operations of the
Bank by RUS employees and the Office of the General Counsel.

PROGRAM STATISTICS

[dollars in millions]

2004 actual 2005 est. 2006 est.
Cumulative net loans................ 2,517 2,052 2,487
Cumulative loan funds, advanced..... 2,470 2,485 2,500
Unadvanced loan funds, end of year.. 47 32 17
Cumulative principal repaid......... 2,047 2,471 2,895
Cumulative interest paid............ 2,417 2,449 2,481
Number of borrowers................. 270 255 240
====================================

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4231-0-3-452

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

1,235

1,380

Investments in US securities:
1106

Receivables, net

1402

Net value of assets related to post-1991 direct loans receivable: Interest
receivable

Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601

Direct loans, gross

476

423

1603

Allowance for estimated uncollectible loans and interest (-)

-5

1604

Direct loans and interest receivable, net

487

418

1699

Value of assets related to direct loans

487

418

1999

Total assets

1,779

1,806

LIABILITIES:
Federal liabilities:

2104

Resources payable to Treasury

2105

Other

1,315

1,365

2999

Total liabilities

1,370

1,365

NET POSITION:
3300

Cumulative results of operations

409

441

3999

Total net position

409

441

4999

Total liabilities and net position

1,779

1,806

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

Distance Learning, Telemedicine, and Broadband Program

For the principal amount of [direct distance learning and
telemedicine loans, $50,000,000; and for the principal amount of direct]
broadband telecommunication loans, [$550,000,000] $358,875,000.
For [the cost of direct loans and] grants for telemedicine and
distance learning services in rural areas, as authorized by 7 U.S.C.
950aaa et seq., [$35,710,000] $25,000,000, to remain available until
expended[, of which $710,000 shall be for direct loans: Provided, That
the cost of direct loans shall be as defined in section 502 of the
Congressional Budget Act of 1974: Provided further, That $10,000,000
shall be made available to convert analog to digital operation those
noncommercial educational television broadcast stations that serve rural
areas and are qualified for Community Service Grants by the Corporation
for Public Broadcasting under section 396(k) of the Communications Act
of 1934, including associated translators and repeaters, regardless of
the location of their main transmitter, studio-to-transmitter links, and
equipment to allow local control over digital content and programming
through the use of high-definition broadcast, multi-casting and
datacasting technologies].
For the cost of broadband loans, as authorized by 7 U.S.C. 901 et
seq., [$11,715,000, to remain available until September 30, 2006]
$9,973,000: Provided, [That the interest rate for such loans shall be
the cost of borrowing to the Department of the Treasury for obligations
of comparable maturity: Provided further,] That the cost of direct loans
shall be as defined in section 502 of the Congressional Budget Act of
1974.
[In addition, $9,000,000, to remain available until expended, for a
grant program to finance broadband transmission in rural areas eligible
for Distance Learning and Telemedicine Program benefits authorized by 7
U.S.C. 950aaa.] (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1232-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
0102 Negative subsidies/subsidy
reestimates..................... 1
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 13 48 9
00.02 Loan guaranteed subsidy........... 3 1
00.03 Reestimate........................ 1
00.10 Grants............................ 54 55 25
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 68 106 35
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 54 50 40
22.00 New budget authority (gross)...... 62 96 -5
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 118 146 35
23.95 Total new obligations............. -68 -106 -35
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 50 40
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 61 56 35
40.35 Appropriation permanently
reduced....................... -10
40.36 Unobligated balance permanently
reduced....................... -40
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 61 56 -15
Mandatory:

60.00 Appropriation................... 1
62.00 Transferred from other accounts. 40 10
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 1 40 10
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 62 96 -5
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 113 137 196
73.10 Total new obligations............. 68 106 35
73.20 Total outlays (gross)............. -42 -47 -66
73.45 Recoveries of prior year
obligations..................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 137 196 165
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3 4 -15
86.93 Outlays from discretionary
balances........................ 39 43 59
86.97 Outlays from new mandatory
authority....................... 1
86.98 Outlays from mandatory balances... 21
--------- --------- ----------

[[Page 163]]

87.00 Total outlays (gross)........... 42 47 66
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 62 96 -5
90.00 Outlays........................... 42 47 66
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1232-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Distance Learning and Telemedicine 30 50
115002Direct Broadband 4% loans......... 30
115003Direct Broadband Treasury Rate
loans........................... 598 546 298
115004Mandatory Broadband 4% loans...... 4
115005Mandatory Broadband Treasury Rate
loans........................... 1
--------- --------- ----------
115901Total direct loan levels.......... 633 596 328
Direct loan subsidy (in percent):
132001Distance Learning and Telemedicine 0.00 1.42 0.00
132002Direct Broadband 4% loans......... 0.00 0.00 7.95
132003Direct Broadband Treasury Rate
loans........................... 2.18 2.13 2.15
132004Mandatory Broadband 4% loans...... 4.94 0.00 0.00
132005Mandatory Broadband Treasury Rate
loans........................... 2.18 0.00 0.00
--------- --------- ----------
132901Weighted average subsidy rate..... 2.09 2.07 2.68
Direct loan subsidy budget authority:
133001Distance Learning and Telemedicine 1
133002Direct Broadband 4% loans......... 2
133003Direct Broadband Treasury Rate
loans........................... 13 12 6
133004Mandatory Broadband 4% loans......
133005Mandatory Broadband Treasury Rate
loans...........................
133006Guaranteed Broadband Loans........
--------- --------- ----------
133901Total subsidy budget authority.... 13 13 8
Direct loan subsidy outlays:
134001Distance Learning and Telemedicine
134002Direct Broadband 4% loans.........
134003Direct Broadband Treasury Rate
loans........................... 1 12 12
134004Mandatory Broadband 4% loans......
134005Mandatory Broadband Treasury Rate
loans...........................
--------- --------- ----------
134901Total subsidy outlays............. 1 12 12
Direct loan downward reestimate subsidy budget
authority:
137002Direct Broadband 4% loans.........
--------- --------- ----------
137901Total downward reestimate budget
authority.......................
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
215001Broadband Guaranteed loans........ 30
215002Mandatory Broadband Guaranteed
loans...........................
--------- --------- ----------
215901Total loan guarantee levels....... 30
Guaranteed loan subsidy (in percent):
232001Broadband Guaranteed loans........ 0.00 0.00 3.82
232002Mandatory Broadband Guaranteed
loans........................... 0.00 0.00 0.00
--------- --------- ----------
232901Weighted average subsidy rate..... 0.00 0.00 3.82
Guaranteed loan subsidy budget authority:
233001Broadband Guaranteed loans........ 1
233002Mandatory Broadband Guaranteed
loans...........................
--------- --------- ----------
233901Total subsidy budget authority.... 1
Guaranteed loan subsidy outlays:
234002Mandatory Broadband Guaranteed
loans........................... 2
--------- --------- ----------
234901Total subsidy outlays............. 2
---------------------------------------------------------------------------

The loan and grant program provides access to advanced
telecommunications services for improved education and health care in
rural areas throughout the country. The loans and grants help education
and health care providers bring the most modern technology, level of
care, and education to rural America so its citizens can compete
regionally, nationally, and globally. Additionally, the Budget proposes
canceling mandatory funding for 2006 and the carryover balances from
2004 and 2005. The Budget provides discretionary funding for loans to
finance installation of broadband transmission capacity (the necessary
fiber optic cable capacity needed in order to provide any enhanced
services such as the Internet or high speed modems) to and through rural
communities, as authorized by the Rural Electrification Act of 1936, 7
U.S.C. 901 et seq.

Due to defaults in 2003, the subsidy rate for the Distance Learning
and Telemedicine (DLT) program increased significantly. Since there is
little demand for the DLT loans and the loans now cost the Government,
the Budget proposes to not provide any DLT loans in 2006.

Distance Learning, Telemedicine, and Broadband Direct Loan Financing
Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loans...................... 633 2,129 329
00.02 Interest on Treasury borrowing.... 8 4 4
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal...................... 641 2,133 333
08.02 Downward reestimates paid to
receipt accounts................ 1
--------- --------- ----------
10.00 Total new obligations........... 642 2,133 333
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 14 17 -1,553
22.00 New financing authority (gross)... 659 634 330
22.10 Resources available from
recoveries of prior year
obligations..................... 9
22.40 Capital transfer to general fund.. -1
22.60 Portion applied to repay debt..... -71 -54
22.70 Balance of authority to borrow
withdrawn....................... -22
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 659 580 -1,277
23.95 Total new obligations............. -642 -2,133 -333
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 17 -1,553 -1,610
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

47.00 Authority to borrow............. 635
Mandatory:

67.10 Authority to borrow............. 576 272
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 15 70 70
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 12 -12 -12
68.47 Portion applied to repay debt. -3
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 24 58 58
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 659 634 330
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 178 733 2,812
73.10 Total new obligations............. 642 2,133 333
73.20 Total financing disbursements
(gross)......................... -66 -66 -66
73.45 Recoveries of prior year
obligations..................... -9
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -12 12 12
--------- --------- ----------
74.40 Obligated balance, end of year.. 733 2,812 3,091
87.00 Total financing disbursements
(gross)......................... 66 66 66
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -1 -12 -12
88.25 Interest on uninvested funds.. -2 -5 -5
88.40 Repayment of principal........ -12 -30 -30
88.40 Interest received on loans.... -23 -23
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -15 -70 -70
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. -12 12 12
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 632 576 272
90.00 Financing disbursements........... 51 -4 -4
---------------------------------------------------------------------------

[[Page 164]]

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4146-0-3-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 633 2,129 329
1142 Unobligated direct loan limitation
(-).............................
--------- --------- ----------
1150 Total direct loan obligations... 633 2,129 329
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 81 131 167
1231 Disbursements: Direct loan
disbursements................... 58 66 66
1251 Repayments: Repayments and
prepayments..................... -8 -30 -38
--------- --------- ----------
1290 Outstanding, end of year........ 131 167 195
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4146-0-3-452

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
1101

Federal assets: Fund balances with Treasury

Net value of assets related to
post-1991 direct loans
receivable:

1401

Direct loans receivable, gross

131

1402

Interest receivable

1499

Net present value of assets related to direct loans

134

1999

Total assets

141

LIABILITIES:
2101

Federal liabilities: Accounts payable

141

2999

Total liabilities

141

4999

Total liabilities and net position

141

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

Distance Learning and Telemedicine Guaranteed Loan Financing Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 2
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 2
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

88.00 Offsetting collections (cash)
from: Federal sources......... -2
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -2
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4361-0-3-451 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders.........
2131 Guaranteed loan commitments exempt
from limitation................. 79 30
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 79 30
2199 Guaranteed amount of guaranteed
loan commitments................ 79 30
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 79
2231 Disbursements of new guaranteed
loans........................... 79 30
2251 Repayments and prepayments........ -2
--------- --------- ----------
2290 Outstanding, end of year........ 79 107
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 79 107
---------------------------------------------------------------------------

Local Television Loan Guarantee Program Account

(including transfer of funds)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1233-0-1-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 88 88
22.00 New budget authority (gross)...... -88
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 88
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 88
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance permanently
reduced....................... -8
Mandatory:

60.36 Unobligated balance permanently
reduced....................... -80
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... -88
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -88
90.00 Outlays...........................
---------------------------------------------------------------------------

The Agriculture, Rural Development, Food and Drug Administration,
and Related Agencies Appropriations Act, 2005 rescinded the unused
budget authority for this account and the 2006 President's Budget
proposes no additional funds for the Local Television Loan Guarantee
program.

Rural Development Insurance Fund Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
01.01 Interest on FFB borrowings........ 69 11
--------- --------- ----------
10.00 Total new obligations (object
class 43.0)................... 69 11
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 77 76
22.00 New budget authority (gross)...... 68 11
22.40 Capital transfer to general fund.. -76
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 145 11
23.95 Total new obligations............. -69 -11
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 76
----------------------------------------------------------------------------

[[Page 165]]

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 277
60.47 Portion applied to repay debt... -209
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 68
69.00 Offsetting collections (cash)..... 473 244 229
69.27 Capital transfer to general fund.. -33 -229
69.47 Portion applied to repay debt..... -473 -200
--------- --------- ----------
69.90 Spending authority from
offsetting collections (total
mandatory).................... 11
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 68 11
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 51 14 14
73.10 Total new obligations............. 69 11
73.20 Total outlays (gross)............. -106 -11
--------- --------- ----------
74.40 Obligated balance, end of year.. 14 14 14
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 68
86.98 Outlays from mandatory balances... 38 11
--------- --------- ----------
87.00 Total outlays (gross)........... 106 11
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.40 Non-Federal sources........... -343 -130 -122
88.40 Repayments of guaranteed loans
purchased from investors.... -1 -1
88.40 Interest revenue.............. -127 -113 -106
88.40 Other......................... -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -473 -244 -229
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -405 -233 -229
90.00 Outlays........................... -367 -233 -229
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4155-0-3-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 2,463 2,125 1,994
1232 Disbursements: Purchase of loans
assets from the public.......... 5
1251 Repayments: Repayments and
prepayments..................... -343 -130 -122
Write-offs for default:

1263 Direct loans.................... -2 -1 -1
1264 Other adjustments, net.......... 2
--------- --------- ----------
1290 Outstanding, end of year........ 2,125 1,994 1,871
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4155-0-3-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 51 41 36
2251 Repayments and prepayments........ -10 -5 -4
--------- --------- ----------
2290 Outstanding, end of year........ 41 36 32
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 31 27 23
---------------------------------------------------------------------------

The Rural Development Insurance Fund (RDIF) was established on
October 1, 1972, pursuant to section 116 of the Rural Development Act of
1972 (Public Law 92-419).

The fund is used to insure or guarantee loans for water systems and
waste disposal facilities, community facilities, and industrial
development in rural areas. Communities unable to afford low interest
loans for water and waste disposal facilities are also able to obtain
water and waste disposal grants.

As required by the Federal Credit Reform Act of 1990, this account
records, for these loan programs, all cash flows to and from the
Government resulting from direct loans obligated and loan guarantees
committed prior to 1992. All new activity in these programs is recorded
in corresponding program accounts and financing accounts.

In 1994, these loan programs were administered by the Rural
Development Administration. Under reorganization of the Department of
Agriculture, the water and waste direct and guaranteed loan programs are
administered by the Rural Utilities Service, the community facility
direct and guaranteed loan programs are adminsitered by the Rural
Housing Service, and the business and industry direct and guaranteed
loan programs are administered by the Rural Business-Cooperative
Service.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4155-0-3-452

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
1101

Federal assets: Fund balances with Treasury

129

167

1201

Non-Federal assets: Investments in non-Federal securities, net

Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601

Direct loans, gross

2,463

2,125

1602

Interest receivable

1603

Allowance for estimated uncollectible loans and interest (-)

-392

-330

1604

Direct loans and interest receivable, net

2,097

1,827

1699

Value of assets related to direct loans

2,097

1,827

1901

Other Federal assets: Other assets

1999

Total assets

2,260

2,033

LIABILITIES:
Federal liabilities:

2103

Debt

805

200

2104

Resources payable to Treasury

1,402

1,807

Non-Federal liabilities:

2202

Interest payable

2204

Liabilities for loan guarantees

2207

Other

2999

Total liabilities

2,260

2,033

4999

Total liabilities and net position

2,260

2,033

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

Rural Communication Development Fund Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Interest on Treasury borrowing.... 2
--------- --------- ----------
10.00 Total new obligations (object
class 43.0)................... 2
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1
22.00 New budget authority (gross)...... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2
23.95 Total new obligations............. -2
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 26
60.47 Portion applied to repay debt... -25
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 1
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1
73.10 Total new obligations............. 2
73.20 Total outlays (gross)............. -2
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

[[Page 166]]

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1
86.98 Outlays from mandatory balances... 1
--------- --------- ----------
87.00 Total outlays (gross)........... 2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1
90.00 Outlays........................... 3
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4142-0-3-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 4 4 4
1251 Repayments: Repayments and
prepayments.....................
--------- --------- ----------
1290 Outstanding, end of year........ 4 4 4
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4142-0-3-452 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 4 4 4
2251 Repayments and prepayments........
--------- --------- ----------
2290 Outstanding, end of year........ 4 4 4
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 4 3 3
---------------------------------------------------------------------------

The Rural Communication Development Fund was established pursuant to
the Secretary's Memorandum No. 1988, approved May 22, 1979. No loans
have been made through this account since 1992.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4142-0-3-452

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
1101

Federal assets: Fund balances with Treasury

Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601

Direct loans, gross

1602

Interest receivable

1603

Allowance for estimated uncollectible loans and interest (-)

-1

1604

Direct loans and interest receivable, net

1699

Value of assets related to direct loans

1999

Total assets

LIABILITIES:
Federal liabilities:

2102

Interest payable

2104

Resources payable to Treasury

2203

Non-Federal liabilities: Debt

2999

Total liabilities

4999

Total liabilities and net position

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

FOREIGN AGRICULTURAL SERVICE

Federal Funds

General and special funds:

Salaries and Expenses

(including transfers of funds)

For necessary expenses of the Foreign Agricultural Service,
including carrying out title VI of the Agricultural Act of 1954 (7
U.S.C. 1761-1768), market development activities abroad, and for
enabling the Secretary to coordinate and integrate activities of the
Department in connection with foreign agricultural work, including not
to exceed $158,000 for representation allowances and for expenses
pursuant to section 8 of the Act approved August 3, 1956 (7 U.S.C.
1766), [$137,822,000] $148,792,000: Provided, That the Service may
utilize advances of funds, or reimburse this appropriation for
expenditures made on behalf of Federal agencies, public and private
organizations and institutions under agreements executed pursuant to the
agricultural food production assistance programs (7 U.S.C. 1737) and the
foreign assistance programs of the United States Agency for
International Development. (Agriculture, Rural Development, Food and
Drug Administration, and Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Market access................... 32 33 36
00.02 Market development.............. 36 37 39
00.03 Market intelligence............. 30 32 35
00.04 Financial marketing assistance.. 11 11 12
00.05 Long-term market and
infrastructure development.... 27 28 30
09.00 Reimbursable program.............. 82 71 71
--------- --------- ----------
10.00 Total new obligations........... 218 212 223
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 15 12 8
22.00 New budget authority (gross)...... 218 208 220
22.22 Unobligated balance transferred
from other accounts............. 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 234 220 228
23.95 Total new obligations............. -218 -212 -223
23.98 Unobligated balance expiring or
withdrawn....................... -3
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 12 8 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 132 138 149
40.35 Appropriation permanently
reduced....................... -1 -1
42.00 Transferred from other accounts. 15
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 146 137 149
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 22 71 71
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 50
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 72 71 71
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 218 208 220
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 37 38 42
73.10 Total new obligations............. 218 212 223
73.20 Total outlays (gross)............. -200 -208 -220
73.40 Adjustments in expired accounts
(net)........................... 3
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -50
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 30
--------- --------- ----------
74.40 Obligated balance, end of year.. 38 42 45
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 190 197 209
86.93 Outlays from discretionary
balances........................ 10 11 11
--------- --------- ----------
87.00 Total outlays (gross)........... 200 208 220
----------------------------------------------------------------------------

[[Page 167]]

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -55 -71 -71
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -50
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 33
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 146 137 149
90.00 Outlays........................... 146 137 149
---------------------------------------------------------------------------

The mission of the Foreign Agricultural Service (FAS) is to open,
expand and maintain global market opportunities through international
trade, cooperation, and sustainable development activities which secure
the long-term economic vitality and global competitiveness of America's
rural communities and related food and agricultural enterprises.

FAS conducts a demand-driven export strategy, deploying five major
policy objectives to execute the strategy, while integrating commodity
and country market priorities for allocating scarce export assistance
resources. These objectives include:

Market access: FAS initiates, directs and coordinates the
Department's formulation of trade policies and programs with the goal of
maintaining and expanding world markets for U.S. agricultural products.
It monitors international compliance with bilateral and multilateral
trade agreements. It identifies restrictive tariff and trade practices
which act as barriers to the import of U.S. agricultural commodities,
then supports negotiations to remove them. It acts to counter and
eliminate unfair trade practices of other countries that hinder U.S.
agricultural exports to those markets. In virtually every foreign
market, U.S. agricultural exports are subject to import duties and non-
tariff trade restrictions. Trade information sent to Washington from FAS
personnel overseas is used to map strategies for improving market
access, pursuing U.S. rights under trade agreements, and developing
programs and policies to make U.S. farm products more competitive.

Market development, promotion and outreach: FAS develops foreign
markets for U.S. farm products through aggressive market expansion
activities. It provides services to the U.S. and foreign agricultural
trade sectors that are necessary to establish, build and maintain
overseas markets for U.S. agricultural products. Public Law 83-690,
approved August 28, 1954, includes authority to establish up to 25
Agricultural Trade Offices. Currently 16 such offices are in operation
at key foreign trading centers to assist U.S. exporters, trade groups
and state export marketing officials in trade promotion. Promotional
activities are carried out chiefly in cooperation with non-profit
agricultural trade associations and firms on a cost-sharing basis. The
largest of FAS's promotional programs are the Foreign Market Development
Cooperator Program and Market Access Program. In addition, FAS sponsors
U.S. participation in several major trade shows and a number of single-
industry exhibitions each year. The Quality Samples Program provides
samples of U.S. agricultural products to foreign importers to help
overcome marketing trade barriers. These programs are designed to create
demand for U.S. agricultural products in foreign markets, introduce U.S.
food and agricultural products to potential foreign customers, and show
foreign customers how to use U.S. products.

FAS strategic outreach efforts focus on facilitating export
readiness and help link both export-ready and new-to-export firms to
market entry opportunities, and increase domestic awareness of export
opportunities/global consumer quality and product safety expectations.
These efforts are designed to strengthen the export knowledge/skills of
producers and exporters so they can compete more effectively in the
international marketplace. Outreach also includes targeting foreign
buyers in educating them about the merits of U.S. products and how they
can be purchased.

Market intelligence: FAS provides U.S. farmers and traders with
information on world agricultural production and trade that they can use
to adjust to changes in world demand for U.S. agricultural products.
This is done through a continuous program of reporting by 62 posts
located throughout the world covering some 130 countries. Reporting
includes information and/or data on foreign government policies,
analysis of supply and demand conditions, commercial trade relationships
and market opportunities. FAS analyzes agricultural information
essential to the assessment of foreign supply and demand conditions in
order to provide estimates of the current situation and to forecast the
export potential for specific U.S. agricultural commodities.

Financial marketing assistance: FAS administers a number of price/
credit and risk assistance programs designed to leverage overseas market
expansion for U.S. agricultural, fish, and forest products. These
programs include CCC Export Credit Guarantee Programs, the Export
Enhancement Program, and Dairy Export Incentive Program. These programs
are designed to help developing nations make the transition from
concessional financing to cash purchases, give U.S. producers the
ability to counter export subsidies of foreign competitors and allow
U.S. exporters to compete with sales terms offered by foreign
competitors.

Long-term market and infrastructure development: FAS promotes trade
capacity building, fosters world food security, and deploys USDA
resources and expertise to advance market-based policies, trade and
investment, sustainable agricultural systems, and agricultural research
and education in developing countries and emerging markets. FAS also
provides linkages to worldwide agricultural resources and international
organizations to gain access to emerging technologies that can help
create new U.S. agricultural products and markets. Direct program
activities include administering the Cochran Fellowship Program and
managing USDA's bilateral exchange and cooperative research programs
with foreign governments and institutions. The Emerging Markets Program,
which provides technical assistance and related activities, facilitates
international agribusiness relationships, enhances food systems in
developing and transitional countries, and helps expand U.S.
agricultural exports.

FAS also administers food assistance activities such as Public Law
480, Title I; Food for Progress; Section 416(b); and the McGovern-Dole
International Food for Education and Child Nutrition Program. P.L. 480
Title I food aid is designed to help developing nations make the
transition from donations and concessional financing to cash purchases
while not displacing expected commercial sales. Food for Progress
provides food to developing countries and emerging democracies that have
made commitments to introduce or expand free enterprise into their
agricultural economies. Section 416(b) provides overseas donations of
surplus commodities owned by the CCC to assist developing and friendly
countries. The International Food for Education Program provides for the
donation of U.S. agricultural commodities and associated technical and
financial assistance to carry out preschool and school feeding programs
in foreign countries.

At the request of the Agency for International Development,
international organizations and foreign governments, technical
assistance and training in agriculture and rural development are
provided on a reimbursable or advance of funds basis.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 55 62 64

[[Page 168]]

11.3 Other than full-time permanent 3 4 4
11.5 Other personnel compensation.. 1 1 1
11.8 Special personal services
payments.................... 2 3 3
--------- --------- ----------
11.9 Total personnel compensation 61 70 72
12.1 Civilian personnel benefits..... 17 19 19
21.0 Travel and transportation of
persons....................... 5 4 4
22.0 Transportation of things........ 1 1 1
23.2 Rental payments to others....... 7 8 8
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 39 33 42
25.8 Subsistence and support of
persons....................... 1 2 2
26.0 Supplies and materials.......... 2 1 1
31.0 Equipment....................... 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 136 141 152
99.0 Reimbursable obligations.......... 82 71 71
--------- --------- ----------
99.9 Total new obligations........... 218 212 223
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2900-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 834 812 792
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 191 190 190
---------------------------------------------------------------------------

Trade Adjustment Assistance for Farmers

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1406-0-1-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Payments.......................... 61 90 90
00.02 Direct Program Activity........... 18
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 79 90 90
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 90 90 90
23.95 Total new obligations............. -79 -90 -90
23.98 Unobligated balance expiring or
withdrawn....................... -11
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 90 90 90
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 35 35
73.10 Total new obligations............. 79 90 90
73.20 Total outlays (gross)............. -79 -90 -90
73.40 Adjustments in expired accounts
(net)........................... 35
--------- --------- ----------
74.40 Obligated balance, end of year.. 35 35 35
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 79 90 90
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 90 90 90
90.00 Outlays........................... 79 90 90
---------------------------------------------------------------------------

Trade Adjustment Assistance for farmers (TAA) is authorized by Title
II of the Trade Act of 1974 as amended by Subtitle C of Title I of the
Trade Act of 2002. The statute authorizes appropriations to the
Department of Agriculture not to exceed $90 million for each of the
fiscal years 2003 through 2007 to carry out the program.

The statute requires the Secretary of Agriculture to provide funds
to eligible agricultural producers when: (a) the current year's price of
an agricultural commodity is less than 80 percent of the national
average price for such commodity for the five marketing years preceding
the most recent market year; and (b) increases in imports contributed
importantly to the decline in the price, as determined by the Secretary.

TAA provides producers of raw commodities, who have been adversely
affected by import competition, free technical assistance and cash
benefits of up to $10,000 per year.

TAA covers farmers, ranchers, fish farmers, and fishermen competing
with imported aquaculture products. It does not cover the forest
products industry.

Scientific Activities Overseas (Foreign Currency Program)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1404-0-1-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 1 1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1 1 1
----------------------------------------------------------------------------

Change in obligated balances:
73.20 Total outlays (gross)............. -1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------

As authorized by the Agricultural Trade Development and Assistance
Act of 1954 (Public Law 480), as amended, USDA uses foreign currencies
to support research on problems of mutual interest to the United States
and participating foreign countries. After 1991 no new foreign currency
programs have been, or are proposed to be, initiated.

FOREIGN ASSISTANCE PROGRAMS

USDA has multiple food aid programs that provide U.S. commodities,
technical and financial assistance to address hunger and malnutrition
needs worldwide. USDA, working with USAID, delivers food aid programs to
meet emergency needs and fosters economic development activities to
alleviate global food insecurity.

Included in this category are the following activities carried out
under the Agricultural Trade Development and Assistance Act of 1954,
Public Law 480, 83rd Congress, as amended (P.L. 480): Financing sales of
agricultural commodities to developing countries for dollars on credit
terms, or for local currencies (including for local currencies on credit
terms) for use under sec. 104 (title I); for dispositions abroad (titles
II and III); and for furnishing commodities to carry out the Food for
Progress Act of 1985, as amended. Agreements may provide for commodities
to be made available on a multi-year basis. During 2003, USDA began
implementation of the McGovern-Dole International Food for Education and
Child Nutrition Program authorized by the 2002 Farm Bill. USDA also has
a commodity reserve in the Bill Emerson Humanitarian Trust for
unanticipated, emergency food aid needs.

[[Page 169]]

SUMMARY OF FOOD ASSISTANCE PROGRAMMING

[In millions of dollars]

2004 actual 2005 est. 2006 est.
McGovern-Dole International Food for
Education and Child Nutrition....... 50 91 106
Public Law 480
Title I Credit.................... 49 50 45
Title II Grants................... 1,655 1,346 * 964
Food for Progress
CCC Funded........................ 138 141 137
P.L. 480 Title I Funded........... 105 95 100
CCC Surplus Commodity Donations
(416)............................... 173 147 151
Bill Emerson Humanitarian Trust..... 225

*$300 million of additional emergency food aid funding in International
Disaster and Famine Assistance.

McGovern-Dole International Food for Education and Child Nutrition
Program Grants

For necessary expenses to carry out the provisions of section 3107
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o-
1), [$87,500,000] $100,000,000, to remain available until expended:
Provided, That the Commodity Credit Corporation is authorized to provide
the services, facilities, and authorities for the purpose of
implementing such section, subject to reimbursement from amounts
provided herein. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 McGovern-Dole International Food
for Education & Child Nutrition
Program......................... 50 87 100
09.00 Reimbursable program.............. 4 6
--------- --------- ----------
10.00 Total new obligations........... 50 91 106
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1
22.00 New budget authority (gross)...... 50 91 106
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 50 92 107
23.95 Total new obligations............. -50 -91 -106
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1 1 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 50 88 100
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 50 87 100
Mandatory:

69.00 Offsetting collections (cash)... 4 6
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 50 91 106
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 100 3
73.10 Total new obligations............. 50 91 106
73.20 Total outlays (gross)............. -150 -88 -100
--------- --------- ----------
74.40 Obligated balance, end of year.. 3 9
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 50 87 100
86.98 Outlays from mandatory balances... 100 1
--------- --------- ----------
87.00 Total outlays (gross)........... 150 88 100
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -4 -6
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 50 87 100
90.00 Outlays........................... 149 84 94
---------------------------------------------------------------------------

The Farm Security and Rural Investment Act of 2002 (Public Law 107-
171) authorizes the McGovern-Dole International Food for Education and
Child Nutrition Program. The program provides for the donation of U.S.
agricultural commodities and associated technical and financial
assistance to carry out preschool and school feeding programs in foreign
countries in order to improve food security, reduce the incidence of
hunger and malnutrition, and improve literacy and primary education.
Maternal, infant, and child nutrition programs for pregnant women,
nursing mothers, infants, and children also are authorized.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2903-0-1-151 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
41.0 Direct obligations: Grants,
subsidies, and contributions.... 50 87 100
99.0 Reimbursable obligations:
Reimbursable obligations........ 4 6
--------- --------- ----------
99.9 Total new obligations........... 50 91 106
---------------------------------------------------------------------------

Public Law 480 Title I Ocean Freight Differential Grants

(including transfer of funds)

For ocean freight differential costs for the shipment of
agricultural commodities under title I of the Agricultural Trade
Development and Assistance Act of 1954 and under the Food for Progress
Act of 1985, [$22,723,000] $11,940,000, to remain available until
expended: Provided, That funds made available for the cost of agreements
under title I of the Agricultural Trade Development and Assistance Act
of 1954 and for title I ocean freight differential may be used
interchangeably between the two accounts with prior notice to the
Committees on Appropriations of both Houses of Congress. (7 U.S.C.
1701b, 2209b.; Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 P.L. 480 grant--Title I: Ocean
freight differential (OFD)...... 24 23 12
09.00 Reimbursable program.............. 18
--------- --------- ----------
10.00 Total new obligations........... 42 23 12
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 20 54
22.00 New budget authority (gross)...... 53 48 26
22.21 Unobligated balance transferred to
other accounts.................. -79 -14
22.22 Unobligated balance transferred
from other accounts............. 23
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 96 23 12
23.95 Total new obligations............. -42 -23 -12
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 54
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 28 23 12
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 12
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 13
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 25
Mandatory:

69.00 Offsetting collections (cash)... 25 14
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 53 48 26
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 5 1 -4
73.10 Total new obligations............. 42 23 12
73.20 Total outlays (gross)............. -33 -28 -33
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -13
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 -4 -25
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 14 13 7

[[Page 170]]

86.93 Outlays from discretionary
balances........................ 19 1 9
86.97 Outlays from new mandatory
authority....................... 14 8
86.98 Outlays from mandatory balances... 9
--------- --------- ----------
87.00 Total outlays (gross)........... 33 28 33
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -12 -25 -14
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -13
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 28 23 12
90.00 Outlays........................... 20 3 19
---------------------------------------------------------------------------

This account funds the title I ocean freight differential program.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2271-0-1-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
41.0 Direct obligations: Grants,
subsidies, and contributions.... 24 23 12
99.0 Reimbursable obligations:
Reimbursable obligations........ 18
--------- --------- ----------
99.9 Total new obligations........... 42 23 12
---------------------------------------------------------------------------

Public Law 480 Title II Grants

For expenses during the current fiscal year, not otherwise
recoverable, and unrecovered prior years' costs, including interest
thereon, under the Agricultural Trade Development and Assistance Act of
1954, for commodities supplied in connection with dispositions abroad
under title II of said Act, [$1,182,501,000] notwithstanding section 204
of said Act, $885,000,000, to remain available until expended. (7 U.S.C.
1691, 1721-26a, 1727-27e, 1731-36g-3, 1737, 2209b; Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Title II.......................... 1,476 1,191 885
09.01 Reimbursable program.............. 128 173 79
--------- --------- ----------
10.00 Total new obligations........... 1,604 1,364 964
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 448 305 105
22.00 New budget authority (gross)...... 1,304 1,174 964
22.10 Resources available from
recoveries of prior year
obligations..................... 180
22.21 Unobligated balance transferred to
other accounts.................. -23 -10
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,909 1,469 1,069
23.95 Total new obligations............. -1,604 -1,364 -964
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 305 105 105
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,192 1,183 885
40.35 Appropriation permanently
reduced....................... -7 -9
41.00 Transferred to other accounts... -10
42.00 Transferred from other accounts. 1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,176 1,174 885
Mandatory:

69.00 Offsetting collections (cash)... 276 173 79
69.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... -148 -173
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 128 79
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,304 1,174 964
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 950 711 934
73.10 Total new obligations............. 1,604 1,364 964
73.20 Total outlays (gross)............. -1,811 -1,314 -1,327
73.45 Recoveries of prior year
obligations..................... -180
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 148 173
--------- --------- ----------
74.40 Obligated balance, end of year.. 711 934 571
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 676 616 465
86.93 Outlays from discretionary
balances........................ 1,135 607 768
86.98 Outlays from mandatory balances... 91 94
--------- --------- ----------
87.00 Total outlays (gross)........... 1,811 1,314 1,327
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -276 -173 -79
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 148 173
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,176 1,174 885
90.00 Outlays........................... 1,535 1,141 1,248
---------------------------------------------------------------------------

Performance Metrics

----------------------------------------------------------------------------
Identification code 12-2278-0-1-151 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Public Law 480 Title II Food Aid:
39001 Emergency Food Aid: Meet Critical
Food Needs of Targeted Groups... 94%
39002 Development Food Aid: Increased
effectiveness of FFP's partners
in carrying out Title II
development activities with
measurable results related to
food security with a primary
focu............................ 61%
39003 Emergency Food Aid: % of targeted
population reached by food aid..
39004 Emergency Food Aid: % of programs
reporting improved or maintained
nutritional status.............. 89%
---------------------------------------------------------------------------

This account funds the non-credit components of Public Law 480.
Under title II, agricultural commodities are furnished to meet famine or
other emergency relief needs, combat malnutrition, carry out activities
to alleviate the causes of hunger, mortality and morbidity, promote
economic and community development, promote sound environmental
practices, and carry out feeding programs. Agricultural commodities are
provided through governments for emergencies only, and for non-
emergencies through public and private agencies, including
intergovernmental organizations.

The Corporation is authorized to pay the costs of acquisition,
packaging, processing, enrichment, preservation, fortification,
transportation, handling, and other incidental costs incurred up to the
time of delivery at U.S. ports. The Corporation also pays ocean freight
charges, and pays transportation costs to points of entry other than
ports in the case of landlocked countries, where carriers to a specific
country are not available, where ports cannot be used effectively, or
where a substantial savings in costs or time can be effected, and pays
general average contributions arising from ocean transport. In addition,
transportation costs from designated points of entry or ports of entry
abroad to storage and distribution sites and associated storage and
distribution costs may be paid for commodities made available under this
title for non-emergency assistance for least-developed countries and for
urgent and extraordinary relief.

[[Page 171]]

For 2006, $300 million that was previously requested for P.L. 480
Title II is being requested under International Disaster and Famine
Assistance for emergency food aid needs.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2278-0-1-151 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
41.0 Direct obligations: Grants,
subsidies, and contributions.... 1,476 1,191 885
99.0 Reimbursable obligations:
Reimbursable obligations........ 128 173 79
--------- --------- ----------
99.9 Total new obligations........... 1,604 1,364 964
---------------------------------------------------------------------------

Credit accounts:

Public Law 480 Title I Direct Credit and Food for Progress Program
Account

(including transfers of funds)

For the cost, as defined in section 502 of the Congressional Budget
Act of 1974, of agreements under the Agricultural Trade Development and
Assistance Act of 1954, and the Food for Progress Act of 1985, including
the cost of modifying credit arrangements under said Acts, [$94,198,000]
$65,040,000, to remain available until expended: Provided, That the
Secretary of Agriculture may implement a commodity monetization program
under existing provisions of the Food for Progress Act of 1985 to
provide no less than $5,000,000 in local-currency funding support for
rural electrification development overseas.
In addition, for administrative expenses to carry out the credit
program of title I, Public Law 83-480, and the Food for Progress Act of
1985, to the extent funds appropriated for Public Law 83-480 are
utilized, [$4,034,000] $3,385,000, of which [$1,097,000] $168,000 may be
transferred to and merged with the appropriation for ``Foreign
Agricultural Service, Salaries and Expenses'', and of which [$2,937,000]
$3,217,000 may be transferred to and merged with the appropriation for
``Farm Service Agency, Salaries and Expenses''. (7 U.S.C. 1691, 1701-04,
1731-36g-3, 2209b.; Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2005.)

General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2277-0-1-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
0108 Negative subsidies/subsidy
reestimates..................... 22 69
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct credit subsidy............. 23 27 24
00.05 Re-estimates of subsidy........... 48 4
00.06 Interest on re-estimates.......... 18 4
00.09 Administrative expenses........... 2 4 3
00.10 Food for Progress Grants.......... 154 90 95
--------- --------- ----------
10.00 Total new obligations........... 245 129 122
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 296 237 91
22.00 New budget authority (gross)...... 186 -86 68
22.21 Unobligated balance transferred to
other accounts.................. -10
22.22 Unobligated balance transferred
from other accounts............. 79 14
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 482 220 173
23.95 Total new obligations............. -245 -129 -122
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 237 91 51
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 107 98 68
40.35 Appropriation permanently
reduced....................... -1 -1
40.36 Unobligated balance permanently
reduced....................... -191
41.00 Transferred to other accounts... -11
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 95 -94 68
Mandatory:

60.00 Appropriation................... 66 8
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 25
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 186 -86 68
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 75 125 180
73.10 Total new obligations............. 245 129 122
73.20 Total outlays (gross)............. -195 -74 -75
--------- --------- ----------
74.40 Obligated balance, end of year.. 125 180 227
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 27 57 40
86.93 Outlays from discretionary
balances........................ 102 9 35
86.97 Outlays from new mandatory
authority....................... 66 8
--------- --------- ----------
87.00 Total outlays (gross)........... 195 74 75
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -25
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 161 -86 68
90.00 Outlays........................... 169 74 75
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2277-0-1-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001P. L. 480 title I loans........... 39 48 43
--------- --------- ----------
115901Total direct loan levels.......... 39 48 43
Direct loan subsidy (in percent):
132001P. L. 480 title I loans........... 58.08 55.98 55.40
--------- --------- ----------
132901Weighted average subsidy rate..... 58.08 55.98 55.40
Direct loan subsidy budget authority:
133001P. L. 480 title I loans........... 23 27 24
--------- --------- ----------
133901Total subsidy budget authority.... 23 27 24
Direct loan subsidy outlays:
134001P. L. 480 title I loans........... 34 24 25
--------- --------- ----------
134901Total subsidy outlays............. 34 24 25
Direct loan upward reestimate subsidy budget
authority:
135001P. L. 480 title I loans........... 66 8
--------- --------- ----------
135901Total upward reestimate budget
authority....................... 66 8
Direct loan downward reestimate subsidy budget
authority:
137001P. L. 480 title I loans........... -104 -69
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -104 -69
----------------------------------------------------------------------------

Administrative expense data:
351001Budget authority.................. 2 4 3
359001Outlays from new authority........ 2 4 3
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this account
records, for the P.L. 480 Program, the subsidy costs associated with the
direct loans obligated in 1992 and beyond (including modifications of
direct loans that resulted from obligation in any year), as well as
administrative expenses of this program. The subsidy amounts are
estimated on a present value basis; the administrative expenses and
grants are estimated on a cash basis.

Object Classification (in millions of dollars)

[[Page 172]]

P.L. 480 Direct Credit Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loans...................... 39 48 43
00.02 Interest on Treasury borrowing.... 120 203 48
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 159 251 91
08.02 Payment of downward reestimate to
receipt account................. 59 47
08.04 Payment of interest on downward
reestimate to receipt account... 45 22
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 104 69
--------- --------- ----------
10.00 Total new obligations........... 263 320 91
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 674 1,316
22.00 New financing authority (gross)... 905 648 435
22.60 Portion applied to repay debt..... -1,644 -344
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,579 320 91
23.95 Total new obligations............. -263 -320 -91
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1,316
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 551 293 67
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 355 368
Mandatory:

69.00 Offsetting collections (cash)... 373
69.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... -19
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 354
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 905 648 435
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 7 5 21
73.10 Total new obligations............. 263 320 91
73.20 Total financing disbursements
(gross)......................... -284 -304 -90
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 19
--------- --------- ----------
74.40 Obligated balance, end of year.. 5 21 22
87.00 Total financing disbursements
(gross)......................... 284 304 90
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payments from program account. -127 -32 -25
88.25 Interest on uninvested funds.. -57 -100 -100
88.40 Interest received on loans.... -54 -66 -63
88.40 Non-Federal sources: other.... -5
88.40 Principal received on loans... -130 -157 -180
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -373 -355 -368
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 19
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 551 293 67
90.00 Financing disbursements........... -88 -51 -278
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4049-0-3-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 39 48 43
--------- --------- ----------
1150 Total direct loan obligations... 39 48 43
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 2,647 2,483 2,358
1231 Disbursements: Direct loan
disbursements................... 60 32 42
1251 Repayments: Repayments and
prepayments..................... -130 -157 -180
1264 Write-offs for default: Other
adjustments, net................ -94
--------- --------- ----------
1290 Outstanding, end of year........ 2,483 2,358 2,220
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from direct loans obligated in 1992 and beyond (including
modifications of direct loans that resulted from obligations in any
year). The amounts in this account are a means of financing and are not
included in the budget totals.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4049-0-3-351

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

130

770

Investments in US securities:
1106

Receivables, net

128

Net value of assets related to
post-1991 direct loans
receivable:

1401

Direct loans receivable, gross

2,647

2,483

1402

Interest receivable

102

109

1405

Allowance for subsidy cost (-)

-1,670

-1,422

1499

Net present value of assets related to direct loans

1,079

1,170

1999

Total assets

1,337

1,990

LIABILITIES:
Federal liabilities:

2101

Accounts payable

2102

Interest payable

2103

Debt

204

2104

Resources payable to Treasury

1,061

1,802

2105

Other

2999

Total liabilities

1,337

1,990

4999

Total liabilities and net position

1,337

1,990

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

Debt Reduction--Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Interest to Treasury.............. 5 5 5
08.02 Payment of downward reestimate to
receipt account................. 48 107
08.03 Payments to financing and
liquidatiing accounts for debt
reduction....................... 219 68
08.04 Payment of interest on downward
reestimate to receipt account... 6 14
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 273 189
--------- --------- ----------
10.00 Total new obligations........... 278 194 5
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 238 21
22.00 New financing authority (gross)... 62 227 34
22.60 Portion applied to repay debt..... -54 -29
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 300 194 5
23.95 Total new obligations............. -278 -194 -5
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 21
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 25 132
Discretionary:

68.10 Spending authority from
offsetting collections: Change
in uncollected customer
payments from Federal sources
(unexpired)................... -1
Mandatory:

69.00 Offsetting collections (cash)... 22 34 34

[[Page 173]]

69.00 Offsetting collections (debt
reduction/upwards reestimate). 16 61
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 38 95 34
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 62 227 34
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 14
73.10 Total new obligations............. 278 194 5
73.20 Total financing disbursements
(gross)......................... -293 -194 -5
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 1
--------- --------- ----------
74.40 Obligated balance, end of year..
87.00 Total financing disbursements
(gross)......................... 293 194 5
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources--Subsidy from
Debt account................ -16 -61
88.25 Interest on uninvested funds.. -9
88.40 Loan Repayments--Principal.... -8 -21 -21
88.40 Loan Repayments- Interest..... -4 -13 -13
88.40 Non-Federal sources........... -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -38 -95 -34
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 25 132
90.00 Financing disbursements........... 255 99 -29
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4143-0-3-351 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
--------- --------- ----------
1150 Total direct loan obligations...
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 334 525 561
1233 Disbursements: Purchase of loans
assets from a liquidating
account......................... 351 68
1251 Repayments: Repayments and
prepayments..................... -8 -21 -21
1261 Adjustments: Capitalized interest. 2
1263 Write-offs for default: Direct
loans........................... -154 -11
--------- --------- ----------
1290 Outstanding, end of year........ 525 561 540
---------------------------------------------------------------------------

As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government
resulting from direct loans obligated in 1992 and beyond (including
modifications of direct loans that resulted from obligations in any
year). The amounts in this account are a means of financing and are not
included in the budget totals.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4143-0-3-351

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:

1101

Fund balances with Treasury

231

Investments in US securities:
1106

Receivables, net

Net value of assets related to
post-1991 direct loans
receivable:

1401

Direct loans receivable, gross

334

525

1402

Interest receivable

1405

Allowance for subsidy cost (-)

-215

-399

1499

Net present value of assets related to direct loans

119

144

1999

Total assets

361

190

LIABILITIES:
Federal liabilities:

2103

Debt

2105

Other

290

2999

Total liabilities

361

190

4999

Total liabilities and net position

361

190

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

Expenses, Public Law 480, Foreign Assistance Programs, Agriculture
Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Program Activity........... 2
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 2
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 89 60
22.00 New budget authority (gross)...... 62
22.40 Capital transfer to general fund.. -89 -60
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 62
23.95 Total new obligations............. -2
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 60
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)
(Principal and interest)...... 663 466 451
69.00 Offsetting collections (Debt
Reduction).................... 21
69.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... -1
69.27 Capital transfer to general fund -600 -487 -451
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 62
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -1 -1 -1
73.10 Total new obligations............. 2
73.20 Total outlays (gross)............. -3
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 1
--------- --------- ----------
74.40 Obligated balance, end of year.. -1 -1 -1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 3
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources--debt
reduction................... -193 -21
88.40 Principal and interest
collections................. -1
88.40 Principal Collections......... -303 -312 -310
88.40 Interest Collections.......... -166 -154 -141
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -663 -487 -451
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -600 -487 -451
90.00 Outlays........................... -660 -487 -451
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2274-0-1-151 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 7,545 6,244 5,911
1251 Repayments: Repayments and
prepayments..................... -303 -312 -310
1261 Adjustments: Capitalized interest. 133
Write-offs for default:

1263 Direct loans.................... -934
1264 Payments from USDA debt
reduction financing account... -195 -21
1264 Other adjustments, net.......... -2
--------- --------- ----------
1290 Outstanding, end of year........ 6,244 5,911 5,601
---------------------------------------------------------------------------

[[Page 174]]

Financing sales of agricultural commodities to developing countries
for dollars on credit terms, or for local currencies (including for
local currencies on credit terms) for use under sec. 104; and for
furnishing commodities to carry out the Food for Progress Act of 1985,
as amended (title I).--Funds appropriated for P.L. 480 are used to
finance all sales made pursuant to agreements concluded under the
authority of Title I.

Financing sales of agricultural commodities for dollars on credit
terms (title I).--Sales are made to developing countries as defined in
section 402(4) of P.L. 480 and must not displace expected commercial
sales (secs. 403(e) and (h)). Agreements are made with developing
countries for delivery in accordance with the terms of the agreement.

Payment by developing countries or private entities may be made over
a period of not more than 30 years with a deferral of principal payments
for up to 5 years. Interest accrues at a concessional rate as determined
appropriate.

Section 411 of P.L. 480 authorizes the President to waive payments
of principal and interest under dollar credit sales agreements for
countries that meet certain enumerated requirements. Such debt relief
may be provided only if the President notifies Congress and may not
exceed the amount approved for such purpose in an Act appropriating
funds to carry out P.L. 480.

Financing sales of agricultural commodities for local currency,
including for local currency on credit terms.--Payment by a recipient
country may be made in local currencies for use in carrying out
activities under section 104 of P.L. 480.

Foreign currency received in payment for credit extended may be used
for payment of U.S. obligations abroad, subject to the appropriation
process. The P.L. 480 program is reimbursed for the dollar value of
currencies so used.

The financing of sales of agricultural commodities for local
currencies on credit terms is subject to the same terms that are
applicable to dollar credit financing.

Furnishing commodities to carry out the Food for Progress Act of
1985, as amended (title I).--Funds appropriated to carry out title I may
be used to furnish commodities to carry out the Food for Progress Act of
1985. Such commodities may be furnished on credit terms or on a grant
basis in order to assist developing countries and countries that are
emerging democracies that have made a commitment to introduce and expand
free enterprise elements in their agricultural economies.

Commodities supplied in connection with dispositions abroad (title
II).--Under title II, agricultural commodities are furnished to meet
famine or other emergency relief needs, combat malnutrition, carry out
activities to alleviate the causes of hunger, mortality and morbidity,
promote economic and community development, promote sound environmental
practices, and carry out feeding programs. Agricultural commodities are
provided through governments for emergencies only, and for non-
emergencies through public and private agencies, including
intergovernmental organizations.

The Corporation is authorized to pay the costs of acquisition,
packaging, processing, enrichment, preservation, fortification,
transportation, handling, and other incidental costs incurred up to the
time of delivery at U.S. ports. The Corporation also pays ocean freight
charges, and pays transportation costs to points of entry other than
ports in the case of landlocked countries, where carriers to a specific
country are not available, where ports cannot be used effectively, or
where a substantial savings in costs or time can be effected, and pays
general average contributions arising from ocean transport. In addition,
transportation costs from designated points of entry or ports of entry
abroad to storage and distribution sites and associated storage and
distribution costs may be paid for commodities made available to meet
urgent and extraordinary relief requirements. P.L. 480 funds reimburse
the Corporation for all of the cost items authorized above.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-2274-0-1-151

2003 actual

2004 actual

-----------------------------------------------------------------------------------------------
ASSETS:
1101

Federal assets: Fund balances with Treasury

Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:

1601

Direct loans, gross

7,545

6,244

1602

Interest receivable

679

661

1603

Allowance for estimated uncollectible loans and interest (-)

-4,649

-2,890

1699

Value of assets related to direct loans

3,575

4,015

1999

Total assets

3,664

4,075

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

3,639

3,444

2207

Non-Federal liabilities: Other

631

2999

Total liabilities

3,664

4,075

NET POSITION:

3999

Total net position

4999

Total liabilities and net position

3,664

4,075

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

Miscellaneous Contributed Funds

Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8232-0-7-352 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Receipts:
02.20 Deposits of miscellaneous
contributed funds, International
coope........................... 4 4
Appropriations:
05.00 Miscellaneous contributed funds... -4 -4
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 2 6
22.00 New budget authority (gross)...... 4 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2 6 10
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 2 6 10
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.26 Appropriation (trust fund)...... 4 4
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -4
73.20 Total outlays (gross)............. -4 -4
--------- --------- ----------
74.40 Obligated balance, end of year.. -4 -8
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 4 4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 4 4
90.00 Outlays........................... 4 4
---------------------------------------------------------------------------

Miscellaneous funds are received from other Federal agencies,
international organizations, and developing countries, for USDA
development assistance and international research projects (22 U.S.C.
2392).

[[Page 175]]

FOOD AND NUTRITION SERVICE

Federal Funds

General and special funds:

Nutrition Programs Administration

For necessary administrative expenses of the domestic nutrition
assistance programs funded under this Act, [$139,937,000, of which
$5,000,000 shall be available only for simplifying procedures, reducing
overhead costs, tightening regulations, improving food stamp benefit
delivery, and assisting in the prevention, identification, and
prosecution of fraud and other violations of law] $140,761,000.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Nutrition programs
administration................ 138 139 141
00.03 Congressional hunger center
fellowships................... 3 2
09.01 Reimbursable administrative
services provided to Federal
agencies........................ 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 142 142 142
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 141 142 142
23.95 Total new obligations............. -142 -142 -142
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 141 142 141
40.35 Appropriation permanently
reduced....................... -1 -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 140 141 141
68.00 Spending authority from offsetting
collections: Offsetting
collections (cash).............. 1 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 141 142 142
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 20 28 23
73.10 Total new obligations............. 142 142 142
73.20 Total outlays (gross)............. -133 -147 -142
--------- --------- ----------
74.40 Obligated balance, end of year.. 28 23 23
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 120 119 119
86.93 Outlays from discretionary
balances........................ 13 28 23
--------- --------- ----------
87.00 Total outlays (gross)........... 133 147 142
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -1 -1 -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 140 141 141
90.00 Outlays........................... 131 146 141
---------------------------------------------------------------------------

This account funds the majority of the Federal operating expenses of
the Food and Nutrition Service and the Center for Nutrition Policy and
Promotion.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 90 91 93
11.3 Other than full-time permanent 1 1 1
11.5 Other personnel compensation.. 1 1 1
--------- --------- ----------
11.9 Total personnel compensation 92 93 95
12.1 Civilian personnel benefits..... 21 22 22
21.0 Travel and transportation of
persons....................... 2 2 2
23.3 Communications, utilities, and
miscellaneous charges......... 2 2 2
25.2 Other services.................. 20 19 19
26.0 Supplies and materials.......... 1 1 1
41.0 Grants, subsidies, and
contributions................. 3 2
--------- --------- ----------
99.0 Direct obligations............ 141 141 141
99.0 Reimbursable obligations.......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 142 142 142
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3508-0-1-605 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 1,287 1,256 1,256
---------------------------------------------------------------------------

Food Stamp Program

For necessary expenses to carry out the Food Stamp Act (7 U.S.C.
2011 et seq.), [$35,154,554,000] $40,711,395,000, of which
$3,000,000,000 [to remain available through September 30, 2006,] shall
be placed in reserve for use only in such amounts and at such times as
may become necessary to carry out program operations: Provided, [That
none of the funds made available under this heading shall be used for
studies and evaluations: Provided further, That of the funds made
available under this heading and not already appropriated to the Food
Distribution Program on Indian Reservations (FDPIR) established under
section 4(b) of the Food Stamp Act of 1977 (7 U.S.C. 2013(b)), not to
exceed $4,000,000 shall be used to purchase bison meat for the FDPIR
from Native American bison producers as well as from producer-owned
cooperatives of bison ranchers: Provided further,] That funds provided
herein shall be expended in accordance with section 16 of the Food Stamp
Act: Provided further, That this appropriation shall be subject to any
work registration or workfare requirements as may be required by law:
Provided further, That funds made available for Employment and Training
under this heading shall remain available until expended, as authorized
by section 16(h)(1) of the Food Stamp Act: Provided further, That
notwithstanding section 5(d) of the Food Stamp Act of 1977, any
additional payment received under chapter 5 of title 37, United States
Code, by a member of the United States Armed Forces deployed to a
designated combat zone shall be excluded from household income for the
duration of the member's deployment if the additional pay is the result
of deployment to or while serving in a combat zone, and it was not
received immediately prior to serving in the combat zone.
For making after May 31 of the current fiscal year, benefit payments
to individuals, and payments to States or other non-Federal entities for
the necessary current year expenses of carrying out the Food Stamp Act
above the anticipated level, such sums as may be necessary.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Benefits issued................. 24,610 29,688 33,123
00.02 State administration............ 2,310 2,402 2,481
00.03 Employment and training program. 267 282 293
00.04 Other program costs............. 62 63 59
00.05 Puerto Rico..................... 1,413 1,495 1,516
00.06 Food distribution program on
Indian reservations
(Commodities in lieu of food
stamps)....................... 54 58 52
00.07 Food distribution program on
Indian reservations
(Cooperator administrative
expense)...................... 27 24 25
00.08 The emergency food assistance
program (commodities)......... 140 140 140
00.09 Modified food stamp program in
American Samoa................ 6 6 6
00.10 Community food project.......... 5 5 5
00.11 Commonwealth of the Northern
Mariana Islands............... 11 8 8
00.13 Program access.................. 5 5 5
00.14 Disregard special military pays
for deployed.................. 1 1
09.01 Reimbursable program.............. 17 25 25
--------- --------- ----------
10.00 Total new obligations........... 28,927 34,202 37,739
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 26 41 1,019

[[Page 176]]

22.00 New budget authority (gross)...... 30,863 35,180 40,736
22.10 Resources available from
recoveries of prior year
obligations..................... 17
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 30,906 35,221 41,755
23.95 Total new obligations............. -28,927 -34,202 -37,739
23.98 Unobligated balance expiring or
withdrawn....................... -1,939 -3,978
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 41 1,019 38
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 17 17 18
Mandatory:

60.00 Appropriation................... 30,929 35,138 40,693
61.00 Transferred to other accounts... -100
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 30,829 35,138 40,693
69.00 Offsetting collections (cash)..... 17 25 25
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 30,863 35,180 40,736
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,233 1,355 1,321
73.10 Total new obligations............. 28,927 34,202 37,739
73.20 Total outlays (gross)............. -28,660 -34,236 -37,681
73.40 Adjustments in expired accounts
(net)........................... -127
73.45 Recoveries of prior year
obligations..................... -17
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,355 1,321 1,379
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 8 7 8
86.93 Outlays from discretionary
balances........................ 9 9 10
86.97 Outlays from new mandatory
authority....................... 27,419 32,874 36,324
86.98 Outlays from mandatory balances... 1,224 1,346 1,339
--------- --------- ----------
87.00 Total outlays (gross)........... 28,660 34,236 37,681
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -3
88.40 Non-Federal sources........... -36 -25 -25
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -39 -25 -25
Against gross budget authority only:

88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 22
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 30,846 35,155 40,711
90.00 Outlays........................... 28,621 34,211 37,656
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2004 actual 2005 est. 2006 est.
Enacted/requested:
Budget Authority.................. 30,846 35,155 40,711
Outlays........................... 28,621 34,211 37,656
Legislative proposal, subject to
PAYGO:
Budget Authority.................. -57
Outlays........................... -57
------------------------------------
Total:
Budget Authority.................. 30,846 35,155 40,654
Outlays........................... 28,621 34,211 37,599
====================================

The Food Stamp Program is the primary source of nutrition assistance
for low-income Americans.

Some of these funds provide a grant to Puerto Rico in lieu of the
Food Stamp Program which gives the Commonwealth flexibility to
administer a nutrition assistance program tailored to the needs of its
low-income households.

Funds in this account are also used to carry out the Emergency Food
Assistance Act of 1983 and for food distribution and administrative
expenses for Native Americans under section 4(b) of the Food Stamp Act.

Food Stamp Program costs are not fully predictable. In the event
that actual program needs exceed budget estimates, the budget provides a
$3 billion contingency reserve. The budget also proposes indefinite
funding authority which would make funds available in the last four
months of the fiscal year if program needs exceed the anticipated level.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 6 6 6
12.1 Civilian personnel benefits..... 1 1 1
21.0 Travel and transportation of
persons....................... 2 2 2
23.3 Communications, utilities, and
miscellaneous charges......... 3 3 3
24.0 Printing and reproduction....... 2 2 2
25.2 Other services.................. 48 49 45
26.0 Supplies and materials.......... 185 190 183
41.0 Grants, subsidies, and
contributions................. 28,663 33,924 37,472
--------- --------- ----------
99.0 Direct obligations............ 28,910 34,177 37,714
99.0 Reimbursable obligations.......... 17 25 25
--------- --------- ----------
99.9 Total new obligations........... 28,927 34,202 37,739
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3505-0-1-605 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 69 68 68
---------------------------------------------------------------------------

Food Stamp Program

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3505-4-1-605 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
Direct program:

00.01 Benefits issued................. -57
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... -57
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -57
23.95 Total new obligations............. 57
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... -57
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. -57
73.20 Total outlays (gross)............. 57
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... -57
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -57
90.00 Outlays........................... -57
---------------------------------------------------------------------------

This schedule shows the net effects of three legislative proposals.
First, the Budget proposes to limit Food Stamp categorical eligibility
status to households which receive Supplemental Security Income or
Temporary Assistance for Needy Families cash assistance. Second, the
Budget proposes to allow States to use the National Directory of New
Hires to verify Food Stamp participants' employment and wage
information. Finally, this schedule includes the Food Stamp effects of
the child support proposals in the President's welfare reauthorization
plan.

[[Page 177]]

Child Nutrition Programs

(including transfers of funds)

For necessary expenses to carry out the National School Lunch Act
(42 U.S.C. 1751 et seq.), except section 21, and the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.), except sections 17 and 21;
[$11,782,000,000] $12,416,027,000, to remain available through September
30, [2006] 2007, of which [$6,629,038,000] $7,304,207,000 is hereby
appropriated and [$5,152,962,000] $5,111,820,000 shall be derived by
transfer from funds available under section 32 of the Act of August 24,
1935 (7 U.S.C. 612c): Provided, [That none of the funds made available
under this heading shall be used for studies and evaluations: Provided
further,] That up to $5,235,000 shall be available for independent
verification of school food service claims. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Above 185 of poverty.............. 422 443 461
00.02 130-185 of poverty................ 826 867 903
00.03 Below 130 of poverty.............. 5,381 5,657 5,890
--------- --------- ----------
00.91 Subtotal, school lunch program.. 6,629 6,967 7,254
01.01 Above 185 of poverty.............. 60 64 68
01.02 130-185 of poverty................ 147 157 167
01.03 Below 130 of poverty.............. 1,580 1,689 1,795
--------- --------- ----------
01.91 Subtotal, school breakfast
program....................... 1,787 1,910 2,030
02.01 Above 185 of poverty.............. 195 189 199
02.02 130-185 of poverty................ 116 116 122
02.03 Below 130 of poverty.............. 1,723 1,740 1,832
02.04 Audits............................ 22 21 22
--------- --------- ----------
02.91 Subtotal, child and adult care
feeding program............... 2,056 2,066 2,175
03.01 Summer food service program....... 267 283 298
03.02 Special milk program.............. 14 17 15
03.03 State administrative expenses..... 140 146 156
03.04 Commodity procurement............. 469 532 518
--------- --------- ----------
03.91 Subtotal, Other mandatory
activities.................... 890 978 987
04.01 Team Nutrition.................... 10 10 10
04.02 Coordinated review and CN pay
costs........................... 5 5 5
04.03 Computer support and processing... 9 9 9
04.05 Food safety education............. 1 1 1
04.08 Performance measurement and
program assessment.............. 5 4
--------- --------- ----------
04.91 Subtotal, discretionary
activities.................... 30 25 29
05.01 Food service management institute
and information clearinghouse
and Reauthorization Activities.. 3 21 38
--------- --------- ----------
10.00 Total new obligations........... 11,395 11,967 12,513
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 13 129 65
22.00 New budget authority (gross)...... 11,454 11,803 12,454
22.10 Resources available from
recoveries of prior year
obligations..................... 61 100
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 11,528 12,032 12,519
23.95 Total new obligations............. -11,395 -11,967 -12,513
23.98 Unobligated balance expiring or
withdrawn....................... -4
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 129 65 6
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 12 7 11
Mandatory:

60.00 Appropriation................... 6,706 6,622 7,293
60.00 Appropriation- Permanent
Appropriation................. 3 21 38
62.00 Transferred from other accounts. 4,700 5,153 5,112
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 11,409 11,796 12,443
69.00 Offsetting collections (cash)..... 33
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 11,454 11,803 12,454
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,553 1,662 1,365
73.10 Total new obligations............. 11,395 11,967 12,513
73.20 Total outlays (gross)............. -11,246 -12,164 -12,477
73.40 Adjustments in expired accounts
(net)........................... 21
73.45 Recoveries of prior year
obligations..................... -61 -100
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,662 1,365 1,401
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 6 4 6
86.93 Outlays from discretionary
balances........................ 5 6 3
86.97 Outlays from new mandatory
authority....................... 9,687 10,405 10,890
86.98 Outlays from mandatory balances... 1,548 1,749 1,578
--------- --------- ----------
87.00 Total outlays (gross)........... 11,246 12,164 12,477
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -28
88.40 Non-Federal sources........... -12
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -40
Against gross budget authority only:

88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 7
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 11,421 11,803 12,454
90.00 Outlays........................... 11,207 12,164 12,477
---------------------------------------------------------------------------

Payments are made for cash and commodity meal subsidies through the
School Lunch, School Breakfast, Special Milk, Summer Food Service, and
Child and Adult Care Food programs.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3539-0-1-605 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 8 9 9
12.1 Civilian personnel benefits....... 2 3 3
21.0 Travel and transportation of
persons......................... 1 1 1
24.0 Printing and reproduction......... 1 3 3
25.2 Other services.................... 13 13 13
26.0 Supplies and materials
(Commodities)................... 659 747 733
41.0 Grants, subsidies, and
contributions................... 10,711 11,191 11,751
--------- --------- ----------
99.9 Total new obligations........... 11,395 11,967 12,513
---------------------------------------------------------------------------

Personnel Summary

Special Supplemental Nutrition Program for Women, Infants, and Children
(WIC)

For necessary expenses to carry out the special supplemental
nutrition program as authorized by section 17 of the Child Nutrition Act
of 1966 (42 U.S.C. 1786), [$5,277,250,000] $5,510,000,000, to remain
available through September 30, [2006] 2007, of which [$125,000,000]
such sums are necessary to restore the contingency reserve to
$125,000,000 shall be placed in reserve, to remain available until
expended, to be allocated as the Secretary deems necessary,
notwithstanding section 17(i) of such Act, to support participation
should cost or participation exceed budget estimates: Provided, That of
the total amount available, the Secretary shall obligate not less than
$15,000,000 for a breastfeeding support initiative in addition to the
activities specified in section 17(h)(3)(A): Provided further, That
[notwithstanding section 17(h)(10)(A) of such Act,] only the provisions
of section 17(h)(1)(B)(i) shall be effective in 2006; including
$14,000,000 [shall be available] for the purposes specified in section
17(h)(10)(B)(i): Provided further, That [none] $3,000,000 of the funds
made available under this heading shall be used for studies and
evaluations of program cost containment strategies: Provided further,
That none of the funds in this Act shall be available to pay
administrative expenses of WIC clinics except those that have an
announced policy of prohibiting smoking within the space used to carry
out the program: Provided further, That of the total amount allocated as
grants to States, nutrition services and administration funding shall be
capped at 25 percent of the total amount provided, with

[[Page 178]]

individual State agency allocations to be made in accordance with a
methodology developed by the Secretary: Provided further, That none of
the funds provided in this account shall be available for the purchase
of infant formula except in accordance with the cost containment and
competitive bidding requirements specified in section 17 of such Act:
Provided further, That none of the funds made available under this
heading may be used to provide WIC benefits to an individual who
receives medical assistance under title XIX of the Social Security Act,
or is a member of a family in which a pregnant woman or an infant
receives assistance unless such individual's family income is below 250
percent of the applicable nonfarm income poverty guidelines: Provided
further, That none of the funds provided shall be available for
activities that are not fully reimbursed by other Federal Government
departments or agencies unless authorized by section 17 of such Act.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3510-0-1-605 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Base Grants....................... 4,913 5,225 5,576
00.02 Contingency Fund.................. 125 16
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 5,038 5,241 5,576
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 190 5 109
22.00 New budget authority (gross)...... 4,714 5,235 5,510
22.10 Resources available from
recoveries of prior year
obligations..................... 162 110 82
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,066 5,350 5,701
23.95 Total new obligations............. -5,038 -5,241 -5,576
23.98 Unobligated balance expiring or
withdrawn....................... -23
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 5 109 125
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 4,639 5,277 5,510
40.35 Appropriation permanently
reduced....................... -27 -42
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 4,612 5,235 5,510
Mandatory:

62.00 Transferred from other accounts. 100
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 4,714 5,235 5,510
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 423 434 477
73.10 Total new obligations............. 5,038 5,241 5,576
73.20 Total outlays (gross)............. -4,861 -5,088 -5,465
73.40 Adjustments in expired accounts
(net)........................... -2
73.45 Recoveries of prior year
obligations..................... -162 -110 -82
--------- --------- ----------
74.40 Obligated balance, end of year.. 434 477 506
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 4,415 4,715 5,055
86.93 Outlays from discretionary
balances........................ 446 373 410
--------- --------- ----------
87.00 Total outlays (gross)........... 4,861 5,088 5,465
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -3
Against gross budget authority only:

88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 4,712 5,235 5,510
90.00 Outlays........................... 4,860 5,088 5,465
---------------------------------------------------------------------------

The Special Supplemental Nutrition Program for Women, Infants, and
Children (WIC) provides low-income at-risk pregnant and post-partum
women, infants, and children with vouchers for nutritious supplemental
food packages, nutrition education and counseling, and health and
immunization referrals. This request includes funds for a breastfeeding
support initiative and an assessment of program cost containment
strategies.

Commodity Assistance Program

For necessary expenses to carry out disaster assistance and the
commodity supplemental food program as authorized by section 4(a) of the
Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note);
the Emergency Food Assistance Act of 1983; [and] special assistance [(in
a form determined by the Secretary of Agriculture)] for the nuclear
affected islands, as authorized by section 103(f)(2) of the Compact of
Free Association Amendments Act of 2003 (Public Law 108-188); and the
Farmers' Market Nutrition Program, as authorized by section 17(m) of the
Child Nutrition Act of 1966, [$178,797,000] $177,935,000, to remain
available through September 30, [2006] 2007: Provided, That none of
these funds shall be available to reimburse the Commodity Credit
Corporation for commodities donated to the program: Provided further,
That notwithstanding any other provision of law, effective with funds
made available in fiscal year [2005] 2006 to support the Senior Farmers'
Market Nutrition Program, as authorized by section 4402 of Public Law
107-171, such funds shall remain available through September 30, [2006]
2007. (Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Commodity supplemental food program:

00.01 Commodity procurement........... 80 81 79
00.02 Administrative costs............ 29 29 28
--------- --------- ----------
00.91 Subtotal, commodity supplemental
food program.................. 109 110 107
The emergency food assistance program:

02.01 Administrative costs............ 50 50 50
03.01 Senior farmers' market............ 15 15 15
04.01 Farmers' Market Nutrition Program. 20 20
05.01 Pacific Island and Disaster
Assistance...................... 1 1 1
09.01 Reimbursable program (NSIP)....... 2 2
--------- --------- ----------
10.00 Total new obligations........... 175 198 195
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 11 3
22.00 New budget authority (gross)...... 165 195 195
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 178 198 195
23.95 Total new obligations............. -175 -198 -195
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 150 179 178
40.35 Appropriation permanently
reduced....................... -1 -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 149 178 178
Mandatory:

62.00 Transferred from other accounts. 15 15 15
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1 2 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 165 195 195
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 28 30 40
73.10 Total new obligations............. 175 198 195
73.20 Total outlays (gross)............. -171 -188 -196
73.45 Recoveries of prior year
obligations..................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 30 40 39
----------------------------------------------------------------------------

[[Page 179]]

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 126 150 150
86.93 Outlays from discretionary
balances........................ 30 23 31
86.97 Outlays from new mandatory
authority....................... 8 8 8
86.98 Outlays from mandatory balances... 7 7 7
--------- --------- ----------
87.00 Total outlays (gross)........... 171 188 196
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -1 -2 -2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 164 193 193
90.00 Outlays........................... 170 186 194
---------------------------------------------------------------------------

This account funds the Commodity Supplemental Food PProgram (CSFP),
the Emergency Food Assistance Program (TEFAP), farmers' market nutrition
programs, assistance for the nuclear affected islands, and disaster
relief.

CSFP provides food packages for low-income women, infants, and
children as well as low-income elderly persons. It also funds State
administrative expenses.

TEFAP provides cash to support State administrative activities and
maintain the storage and distribution pipeline for USDA and privately
donated commodities.

This account funds two farmers' market nutrition programs which
provide low-income participants vouchers for fresh produce at farmers'
markets. The first, for seniors, is funded by transfer from the
Commodity Credit Corporation. The second, for women, infants, and
children, was previously funded in the WIC account.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3507-0-1-605 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
26.0 Supplies and materials
(commodities)................... 80 81 79
41.0 Grants, subsidies, and
contributions................... 95 117 116
--------- --------- ----------
99.9 Total new obligations........... 175 198 195
---------------------------------------------------------------------------

Food Donations Programs

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3503-0-1-605 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------

Obligations by program activity:
09.01 Reimbursable program (NSIP)....... 3
--------- --------- ----------
10.00 Total new obligations (object
class 26.0)................... 3
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1
22.00 New budget authority (gross)...... 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 4
23.95 Total new obligations............. -3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 3
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2
73.10 Total new obligations............. 3
73.20 Total outlays (gross)............. -5
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3
86.93 Outlays from discretionary
balances........................ 2
--------- --------- ----------
87.00 Total outlays (gross)........... 5
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -2
Against gross budget authority only:

88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 1
---------------------------------------------------------------------------

This account includes prior year amounts for the Nutrition Services
Incentive Program (NSIP). NSIP was transferred to the Department of
Health and Human Services in fiscal year 2003. NSIP grantees have the
option to receive all or a portion of their grant in the form of
commodities. USDA continues to provide these commodities, the cost of
which is reimbursed by HHS. Beginning in fiscal year 2005, these
reimbursements are reflected in the Commodity Assistance Programs
account.

FOREST SERVICE

Federal Funds

General and special funds:

National Forest System

For necessary expenses of the Forest Service, not otherwise provided
for, for management, protection, improvement, and utilization of the
National Forest System, [$1,400,260,000] $1,651,357,000, to remain
available until expended, which shall include 50 percent of all moneys
received during prior fiscal years as fees collected under the Land and
Water Conservation Fund Act of 1965, as amended, in accordance with
section 4 of the Act (16 U.S.C. 460l-6a(i)): Provided, That [unobligated
balances under this heading available at the start of fiscal year 2005
shall be displayed by budget line item in the fiscal year 2006 budget
justification: Provided further, That, through fiscal year 2009,] the
Secretary may authorize the expenditure or transfer of such sums as
necessary to the Department of the Interior, Bureau of Land Management,
for removal, preparation, and adoption of excess wild horses and burros
from National Forest System lands, and for the performance of cadastral
surveys to designate the boundaries of such lands: Provided further,
That of the funds provided under this heading [for Forest Products,
$5,000,000 shall be allocated to the Alaska Region, in addition to its
normal allocation for the purposes of preparing additional timber for
sale, to establish a 3-year timber supply and such funds may be
transferred to other appropriations accounts as necessary to maximize
accomplishment: Provided further, That within funds available for the
purpose of implementing the Valles Caldera Preservation Act,
notwithstanding the limitations of section 107(e)(2) of the Valles
Caldera Preservation Act (Public Law 106-248), for fiscal year 2005, the
Chair of the Board of Trustees of the Valles Caldera Trust may receive,
upon request, compensation for each day (including travel time) that the
Chair is engaged in the performance of the functions of the Board,
except that compensation shall not exceed the daily equivalent of the
annual rate in effect for members of the Senior Executive Service at the
ES-1 level, and shall be in addition to any reimbursement for travel,
subsistence and other necessary expenses incurred by the Chair in the
performance of the Chair's duties] $281,000,000 is available for
hazardous fuels reduction activities utilizing the authorities available
to the Secretary under the heading ``Wildland Fire Management,'' of
which not more than $5,000,000 may be used to make grants to create
incentives for increased use of biomass from national forest lands, and
of which up to $15,000,000 may be used on adjacent non-Federal lands for
the purpose of protecting communities when hazard reduction activities
are planned on national forest lands that have the potential to place
such communities at risk: Provided, That with regard to such activities,
and notwithstanding requirements of the Competition in Contracting Act
but subject to any such requirements as the Director of the Office of
Management and Budget may prescribe, the Secretary of Agriculture may
obtain maximum practicable competition among: (A) local private,
nonprofit, or cooperative entities, (B) Youth Conservation Corps crews
or related partnerships with State, local, or nonprofit youth groups,
(C) small or micro-business or, (D) other entities that will hire or

[[Page 180]]

train locally a significant percentage, defined as 50 percent or more,
of the project workforce to complete such contracts. (Department of the
Interior and Related Agencies Appropriations Act, 2005.)
[For an additional amount for ``National Forest System'',
$12,153,000, to remain available until expended, to address damages from
natural disasters: Provided, That such amount is designated as an
emergency requirement pursuant to section 402 of S. Con. Res. 95 (108th
Congress), as made applicable to the House of Representatives by H. Res.
649 (108th Congress) and applicable to the Senate by section 14007 of
Public Law 108-287.] (Emergency Supplemental Appropriations for
Hurricane Disasters Assistance Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 National forest system............ 1,686 1,506 1,653
09.01 Reimbursable program.............. 82 97 97
--------- --------- ----------
10.00 Total new obligations........... 1,768 1,603 1,750
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 136 100
22.00 New budget authority (gross)...... 1,699 1,503 1,750
22.10 Resources available from
recoveries of prior year
obligations..................... 9
22.22 Unobligated balance transferred
from other accounts............. 24
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,868 1,603 1,750
23.95 Total new obligations............. -1,768 -1,603 -1,750
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 100
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,571 1,412 1,651
40.35 Appropriation permanently
reduced....................... -17 -19
42.00 Transferred from other accounts. 36 13 2
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,590 1,406 1,653
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 97 97 97
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 12
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 109 97 97
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,699 1,503 1,750
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 139 175 326
73.10 Total new obligations............. 1,768 1,603 1,750
73.20 Total outlays (gross)............. -1,711 -1,452 -1,713
73.45 Recoveries of prior year
obligations..................... -9
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -12
--------- --------- ----------
74.40 Obligated balance, end of year.. 175 326 363
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,483 1,277 1,487
86.93 Outlays from discretionary
balances........................ 228 175 226
--------- --------- ----------
87.00 Total outlays (gross)........... 1,711 1,452 1,713
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -63 -97 -97
88.40 Non-Federal sources........... -34
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -97 -97 -97
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -12
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,590 1,406 1,653
90.00 Outlays........................... 1,614 1,355 1,616
---------------------------------------------------------------------------

The 155 National Forests, 20 National Grasslands, and six land
utilization projects located in 44 States, Puerto Rico, and the Virgin
Islands are managed under multiple-use and sustained-yield principles.
The natural resources of timber, minerals, range, wildlife, outdoor
recreation, watershed, and soil are used in a planned combination that
will best meet the needs of the Nation without impairing productivity of
the land or damaging the environment. These management and utilization
principles are recognized in the Multiple-Use, Sustained-Yield Act of
1960 (16 U.S.C. 528-531) and use an ecological approach to managing the
National Forest System.

National Forest System (NFS) operations and maintenance provide for
the planning, assessment, and conservation of ecosystems while
delivering multiple public services and uses. These are delivered
through the principal NFS programs of land management planning;
inventory and monitoring; recreation, heritage, and wilderness; wildlife
and fisheries habitat management; grazing management; forest products;
vegetation and watershed management; minerals and geology management;
landownership management; law enforcement operations; and hazadous fuels
reduction. These programs maintain the capability to manage natural
resources in a manner consistent with ecological principles and
responsibilities.

The President's Healthy Forest Initiative marks a clear and decisive
change in direction to remove the causes of severe wildfires instead of
enduring season after season of devastating fires. Key to this effort is
the reduction of dense undergrowth that fuels catastrophic fires through
thinning and prescribed burns. Consistent with the Healthy Forests
Initiative's focus on management and making better use of existing
resources, the budget puts additional discretion into the hands of on-
the-ground managers by funding hazardous fuels activities within the
National Forest System. Funds are included within the National Forest
System account to conduct all hazardous fuel reduction activities to
minimize the risk of catastrophic wildfire to communities and natural
resources by reducing hazardous fuels in forests, woodlands, shrublands,
and grasslands. Funds are provided to plan, implement, and monitor
treatments that include prescribed fire, mechanical treatment, and
chemical treatment.

In previous years, hazardous fuels funding was appropriated in the
Wildland Fire Management Account. Transferring hazardous fuels
activities to the National Forest System will expand coordination and
also work cohesively with other vegetation management activities on the
national forests to create a landscape pattern that effectively lessens
the likelihood of large fires. The focus of the majority of treatments
is on priority fire-prone landscapes in order to make an efficient and
effective difference.

This budget places additional emphasis on hazardous fuels funding
that expands economic opportunities for rural communities that have
experienced adverse economic impacts associated with Federal timber
harvest reductions coupled with an increased threat of wildfire. The
budget retains the authority to use funds for contracts, utilizes
appropriate competitive sourcing, and provides an expanded authority for
local hire. Finally, the budget reflects anticipated increases in fuels
treatments through increased efficiencies resulting from the use of the
stewardship contract authority and other administrative and productivity
improvements resulting from the President's Healthy Forests Initiative.

Included within the National Forest System account are funds to
rehabilitate fire damaged wildlands and restore ecosystems impacted by
wildland fires. This funding will permit immediate actions to reduce
threats to public safety, property and natural and cultural resources,
and long-term actions to help restore healthy ecosystems and replace
infrastructure damaged by fire. Funding will be used to improve overall
watershed condition and restore severely burned forests and rangeland
through activities that include reforestation, water

[[Page 181]]

shed restoration, road and trail rehabilitation, fish and wildlife
habitat restoration, planting and seeding and preventing invasive
plants.

The Budget includes a significant reform of the Forest Service that
streamlines its organization, improves accountability, and focuses on
measurable results in the management of our national forests.
Specifically, the Budget will reduce overhead, business management, and
other indirect costs by one-third to improve efficiency and program
delivery. Results will improve in two ways. First, national forest
operations will be transformed by making additional ``on-the-ground''
resources available for resource management projects that meet the
objectives of the President's Healthy Forest Initiative. Secondly, the
administration and execution of programs will be enhanced through
improvements in management accountability, reporting relationships, and
oversight.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 652 663 766
11.3 Other than full-time permanent 43 44 51
11.5 Other personnel compensation.. 41 41 48
--------- --------- ----------
11.9 Total personnel compensation 736 748 865
12.1 Civilian personnel benefits..... 202 206 238
21.0 Travel and transportation of
persons....................... 35 35 35
22.0 Transportation of things........ 10 10 10
23.1 Rental payments to GSA.......... 17 17 17
23.2 Rental payments to others....... 19 19 19
23.3 Communications, utilities, and
miscellaneous charges......... 44 44 44
24.0 Printing and reproduction....... 4 4 4
25.2 Other services.................. 262 232 230
25.3 Other purchases of goods and
services from Government
accounts...................... 60 60 60
25.7 Operation and maintenance of
equipment..................... 4 4 4
26.0 Supplies and materials.......... 69 69 69
31.0 Equipment....................... 18 42 42
32.0 Land and structures............. 1 1 1
41.0 Grants, subsidies, and
contributions................. 15 15 15
42.0 Insurance claims and indemnities 190
--------- --------- ----------
99.0 Direct obligations............ 1,686 1,506 1,653
99.0 Reimbursable obligations.......... 82 97 97
--------- --------- ----------
99.9 Total new obligations........... 1,768 1,603 1,750
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1106-0-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 13,669 13,419 15,101
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 459 973 973
Allocation account:
3001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 973 459 459
---------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1106-4-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
25.2 Other services.................... -26
25.3 Other purchases of goods and
services from Government
accounts........................ 26
--------- --------- ----------
99.9 Total new obligations...........
---------------------------------------------------------------------------

Capital Improvement and Maintenance

For necessary expenses of the Forest Service, not otherwise provided
for, [$521,952,000] $380,792,000, to remain available until expended for
construction, reconstruction, maintenance and acquisition of buildings
and other facilities, and for construction, reconstruction, repair,
decommissioning, and maintenance of forest roads and trails by the
Forest Service as authorized by 16 U.S.C. 532-538 and 23 U.S.C. 101 and
205: Provided, That up to $15,000,000 of the funds provided herein for
road maintenance shall be available for the decommissioning of roads,
including unauthorized roads not part of the transportation system,
which are no longer needed: Provided further, That no funds shall be
expended to decommission any system road until notice and an opportunity
for public comment has been provided on each decommissioning project[:
Provided further, That subject to all the authorities available to the
Forest Service under the State and Private Forestry appropriation, up to
$1,000,000 may be used on non-Federal lands adjacent to the Chugach
National Forest for the purpose of expanding recreational
opportunities]. (Department of the Interior and Related Agencies
Appropriations Act, 2005.)
[For an additional amount for ``Capital Improvement and
Maintenance'', $50,815,000, to remain available until expended, to
address damages from natural disasters: Provided, That such amount is
designated as an emergency requirement pursuant to section 402 of S.
Con. Res. 95 (108th Congress), as made applicable to the House of
Representatives by H. Res. 649 (108th Congress) and applicable to the
Senate by section 14007 of Public Law 108-287.] (Emergency Supplemental
Appropriations for Hurricane Disasters Assistance Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Capital improvement and
maintenance..................... 625 684 381
09.01 Reimbursable program.............. 10 10 10
--------- --------- ----------
10.00 Total new obligations........... 635 694 391
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 79 108
22.00 New budget authority (gross)...... 619 586 391
22.10 Resources available from
recoveries of prior year
obligations..................... 1
22.22 Unobligated balance transferred
from other accounts............. 44
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 743 694 391
23.95 Total new obligations............. -635 -694 -391
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 108
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 562 573 381
40.35 Appropriation permanently
reduced....................... -7 -7
42.00 Transferred from other accounts. 51 10
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 606 576 381
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 10 10 10
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 3
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 13 10 10
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 619 586 391
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 225 247 235
73.10 Total new obligations............. 635 694 391
73.20 Total outlays (gross)............. -609 -706 -508
73.45 Recoveries of prior year
obligations..................... -1
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 247 235 118
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 414 440 294
86.93 Outlays from discretionary
balances........................ 195 266 214
--------- --------- ----------
87.00 Total outlays (gross)........... 609 706 508
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -5 -5 -5
88.40 Non-Federal sources........... -5 -5 -5
--------- --------- ----------

[[Page 182]]

88.90 Total, offsetting
collections (cash)........ -10 -10 -10
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 606 576 381
90.00 Outlays........................... 599 696 498
---------------------------------------------------------------------------

Funding provides for capital improvement and maintenance of
facilities, roads, and trails. The program emphasizes: better resource
management decisions based on the best scientific information and
knowledge; an efficient and effective infrastructure that supports
public and administrative uses; and quality recreation experiences with
minimal impact to ecosystem stability and conditions.

Facilities.--Provides for capital improvement and maintenance of
research, fire, administrative, and other (FA&O), and recreation
facilities, including site components such as roads and trails and the
acquisition of buildings and other facilities necessary to carry out the
mission of the Forest Service. Capital Improvement includes: new
construction of a facility; alteration of an existing facility to change
the function; and expansion of a facility to change the capacity or to
serve needs that are different from what was originally intended.
Maintenance is divided into four primary areas: annual maintenance,
deferred maintenance, decommissioning, and operations. Deferred
maintenance work includes the repair, rehabilitation, or replacement of
the facility or components of the facility.

Roads.--Provides for capital improvement and maintenance of roads.
The program also focuses on decommissioning unneeded roads and/or roads
that are degrading the ecosystem. Capital improvement includes: new road
construction; alteration of an existing road to change the function; and
expansion of the road to change the capacity or to serve needs that are
different from what was originally intended. The agency will continue to
address the growing road system maintenance backlog. Funding priorities
are health and safety, resource protection, and mission critical needs.
Maintenance is divided into four primary areas: annual road maintenance,
deferred road maintenance, road operations, and decommissioning.

Trails.--Provides for capital improvement and maintenance of trails.
Capital improvement includes: new trail construction; alteration of an
existing trail to change the function; and expansion of the trail to
change the capacity or to serve needs that are different from what was
originally intended. Maintenance funding is used to protect capital
investments by keeping trails open for access and protecting vegetation,
soil, and water quality. Work includes clearing the pathway of
encroaching vegetation and fallen trees, and repairing or improving
trail signs, treadways, drainage facilities, and bridges. Maintenance is
divided into four primary areas: annual trail maintenance, deferred
trail maintenance, trail operations, and trail decommissioning.

Infrastructure Improvement.--Ameliorates the backlog in deferred
maintenance of National Forest System roads and trails as well as Forest
Service fire, administrative, and recreation facilities. The funds focus
on critical maintenance backlogs; i.e., these funds are for repair and
rehabilitation of existing facilities and roads; funds may not be used
for new and expanded facilities or roads. The budget reflects Forest
Service improvements in addressing the deferred maintenance backlog
based upon agency implementation of PART recommendations.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 169 169 131
11.3 Other than full-time permanent 17 17 13
11.5 Other personnel compensation.. 12 12 9
--------- --------- ----------
11.9 Total personnel compensation 198 198 153
12.1 Civilian personnel benefits..... 53 53 41
13.0 Benefits for former personnel... 5 5 4
21.0 Travel and transportation of
persons....................... 9 9 9
22.0 Transportation of things........ 3 3 3
23.1 Rental payments to GSA.......... 4 4 4
23.2 Rental payments to others....... 5 6 6
23.3 Communications, utilities, and
miscellaneous charges......... 12 13 13
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 237 242 41
25.3 Other purchases of goods and
services from Government
accounts...................... 25 19 8
25.4 Operation and maintenance of
facilities.................... 6 6 6
25.7 Operation and maintenance of
equipment..................... 2 2 2
26.0 Supplies and materials.......... 14 28 28
31.0 Equipment....................... 5 13 13
32.0 Land and structures............. 46 78 45
41.0 Grants, subsidies, and
contributions................. 4 4
--------- --------- ----------
99.0 Direct obligations............ 625 684 381
99.0 Reimbursable obligations.......... 10 10 10
--------- --------- ----------
99.9 Total new obligations........... 635 694 391
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1103-0-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 3,862 3,720 2,800
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 59 59 59
Allocation account:
3001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 40 40 40
---------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1103-4-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
25.2 Other services.................... -7
25.3 Other purchases of goods and
services from Government
accounts........................ 7
--------- --------- ----------
99.9 Total new obligations...........
---------------------------------------------------------------------------

Forest and Rangeland Research

For necessary expenses of forest and rangeland research as
authorized by law, [$280,278,000] $285,400,000, to remain available
until expended[: Provided, That of the funds provided, $56,714,000 is
for the forest inventory and analysis program].

Gifts, Donations and Bequests for Forest and Rangeland Research

For expenses authorized by 16 U.S.C. 1643(b), [$65,000] $64,000, to
remain available until expended, to be derived from the fund established
pursuant to the above Act. (Department of the Interior and Related
Agencies Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.06 Forest and rangeland research..... 296 327 302
09.01 Reimbursable program.............. 31 28 28
--------- --------- ----------

[[Page 183]]

10.00 Total new obligations........... 327 355 330
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 43 29
22.00 New budget authority (gross)...... 307 326 330
22.10 Resources available from
recoveries of prior year
obligations..................... 1
22.22 Unobligated balance transferred
from other accounts............. 5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 356 355 330
23.95 Total new obligations............. -327 -355 -330
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 29
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 270 280 285
40.35 Appropriation permanently
reduced....................... -3 -4
42.00 Transferred from other accounts. 27 22 17
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 294 298 302
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 28 28 28
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... -15
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 13 28 28
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 307 326 330
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 71 86 97
73.10 Total new obligations............. 327 355 330
73.20 Total outlays (gross)............. -326 -344 -328
73.45 Recoveries of prior year
obligations..................... -1
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 15
--------- --------- ----------
74.40 Obligated balance, end of year.. 86 97 99
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 260 229 231
86.93 Outlays from discretionary
balances........................ 66 115 97
--------- --------- ----------
87.00 Total outlays (gross)........... 326 344 328
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -25 -28 -28
88.40 Non-Federal sources........... -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -28 -28 -28
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 15
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 294 298 302
90.00 Outlays........................... 298 316 300
---------------------------------------------------------------------------

Forest Service Research & Development (FS R&D) is one of the world's
leading forestry research organizations. It conducts ecological and
social science research to understand ecosystems, how humans influence
those ecosystems, and how forests can be managed sustainably to enable
both environmental conservation and economic expansion. Research is
conducted at six Research Stations, the Forest Products Laboratory, and
the International Institute of Tropical Forestry located in Puerto Rico.

In 2006, the body of knowledge and technologies will be expanded to
improve forest and rangeland managers' abilities to reintroduce fire to
its natural role, control exotic plants, insects, and pathogens, and
keep losses from native insects and pathogens to an acceptable level. FS
R&D researchers will be answering land managers' scientific questions
about fire behavior, risk assessment and mitigation for multiple
hazards, and utilization opportunities for the biomass that contributes
to overcrowded, unhealthy forests. Increased funding will be provided
for invasive species to accelerate research vital to a rapid management
response; and watershed research to provide improved tools for land
managers to restore native vegetation on sites disturbed by fire, and
address other issues such as climate change.

The Forest Inventory and Analysis program will continue to provide
up-to-date information on status and trends in America's forest
resources including the distribution and type of forest; growth,
harvest, and mortality; forest structure and composition; soils;
vegetative diversity; and fuel loads.

Efficient delivery of science is essential to successful
implementation of the President's Healthy Forest Initiative. The budget
includes funds to optimize the delivery of research findings by
improving Forest Service management of investments in research,
development, and applications. Funds will be targeted to leading-edge
technical assistance on a competitive basis. The Budget also also
emphasizes increasing the amount of research conducted on an extramural
basis.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 136 139 139
11.3 Other than full-time permanent 8 8 9
11.5 Other personnel compensation.. 6 6 6
--------- --------- ----------
11.9 Total personnel compensation 150 153 154
12.1 Civilian personnel benefits..... 39 40 40
13.0 Benefits for former personnel... 1 1 1
21.0 Travel and transportation of
persons....................... 13 13 13
22.0 Transportation of things........ 2 2 2
23.1 Rental payments to GSA.......... 3 3 3
23.2 Rental payments to others....... 3 4 4
23.3 Communications, utilities, and
miscellaneous charges......... 10 10 10
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 45 38 42
25.3 Other purchases of goods and
services from Government
accounts...................... 5 5 5
25.7 Operation and maintenance of
equipment..................... 1 1 1
26.0 Supplies and materials.......... 9 9 9
31.0 Equipment....................... 6 9 9
41.0 Grants, subsidies, and
contributions................. 8 38 8
--------- --------- ----------
99.0 Direct obligations............ 296 327 302
99.0 Reimbursable obligations.......... 31 28 28
--------- --------- ----------
99.9 Total new obligations........... 327 355 330
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1104-0-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 2,566 2,533 2,475
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 164 164 164
---------------------------------------------------------------------------

Forest and Rangeland Research

(Legislative proposal, subject to PAYGO)

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1104-4-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
25.2 Other services.................... -3
25.3 Other purchases of goods and
services from Government
accounts........................ 3
--------- --------- ----------
99.9 Total new obligations...........
---------------------------------------------------------------------------

State and Private Forestry

For necessary expenses of cooperating with and providing technical
and financial assistance to States, territories, possessions, and
others,

[[Page 184]]

and for forest health management, including treatments of pests,
pathogens, and invasive or noxious plants and for restoring and
rehabilitating forests damaged by pests or invasive plants, cooperative
forestry, and education and land conservation activities and conducting
an international program as authorized, [$296,626,000] $253,387,000, to
remain available until expended, as authorized by law of which
[$57,939,000] $144,574,000 is to be derived from the Land and Water
Conservation Fund[: Provided, That none of the funds provided under this
heading for the acquisition of lands or interests in lands shall be
available until the Forest Service notifies the House Committee on
Appropriations and the Senate Committee on Appropriations, in writing,
of specific contractual and grant details including the non-Federal cost
share: Provided further, That notwithstanding any other provision of
law, of the funds provided under this heading, $2,000,000 shall be made
available to Kake Tribal Corporation as an advance direct lump sum
payment to implement the Kake Tribal Corporation Land Transfer Act
(Public Law 106-283), and $1,500,000 shall be made available to Canton,
North Carolina, as an advance direct lump sum payment for wood products
wastewater treatment repairs]. (Department of the Interior and Related
Agencies Appropriations Act, 2005.)
[For an additional amount for ``State and Private Forestry'',
$49,100,000, to remain available until expended, to address damages from
natural disasters: Provided, That such amount is designated as an
emergency requirement pursuant to section 402 of S. Con. Res. 95 (108th
Congress), as made applicable to the House of Representatives by H. Res.
649 (108th Congress) and applicable to the Senate by section 14007 of
Public Law 108-287.] (Emergency Supplemental Appropriations for
Hurricane Disasters Assistance Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 State and private forestry........ 461 519 302
09.01 Reimbursable program.............. 1 8 8
--------- --------- ----------
10.00 Total new obligations........... 462 527 310
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 62 80
22.00 New budget authority (gross)...... 435 447 310
22.10 Resources available from
recoveries of prior year
obligations..................... 11
22.22 Unobligated balance transferred
from other accounts............. 34
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 542 527 310
23.95 Total new obligations............. -462 -527 -310
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 80
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 268 288 108
40.20 Appropriation (LWCF)............ 65 57 145
40.35 Appropriation permanently
reduced....................... -3 -4
40.37 Appropriation temporarily
reduced....................... -1
42.00 Transferred from other accounts. 107 73 49
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 436 414 302
Mandatory:

62.00 Transferred from other accounts. 25
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 8 8 8
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -9
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... -1 8 8
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 435 447 310
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 447 524 561
73.10 Total new obligations............. 462 527 310
73.20 Total outlays (gross)............. -383 -490 -494
73.45 Recoveries of prior year
obligations..................... -11
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 9
--------- --------- ----------
74.40 Obligated balance, end of year.. 524 561 377
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 266 317 233
86.93 Outlays from discretionary
balances........................ 117 154 255
86.97 Outlays from new mandatory
authority....................... 19
86.98 Outlays from mandatory balances... 6
--------- --------- ----------
87.00 Total outlays (gross)........... 383 490 494
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -4 -4 -4
88.40 Non-Federal sources........... -4 -4 -4
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -8 -8 -8
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 9
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 436 439 302
90.00 Outlays........................... 375 482 486
---------------------------------------------------------------------------

State and private forestry programs provide assistance to manage,
use, and protect forest resources on State, urban, and private lands to
meet domestic and international demands for goods and services.
Assistance is provided to a wide range of customers including all
States, Puerto Rico, the Virgin Islands, Guam, the Northern Mariana
Islands, and the Trust Territory of the Pacific.

Forest Health Management.--Includes Federal lands and cooperative
lands.

Cooperative Fire Protection.--Includes funding to enhance the
capacity of States to provide coordinated fire suppression response,
reduce hazardous fuels in and adjacent to communities, and to promote
safe and effective initial fire attack in wildland/urban interface areas
by volunteer fire departments.

Cooperative Forestry.--Includes forest stewardship, the forest
legacy program, urban and community forestry and forest resources and
information analysis. This budget maintains the integrity of our
country's valuable forest lands through the Forest Legacy program, a
Federal program that partners with States to protect environmentally
sensitive forest lands and the Forest Stewardship program, which will
bring professional assistance to non-industrial private forest (NIPF)
landowners to encourage sound environmental management of forests and to
assist the social, economic, and environmental benefits of these lands.

International Programs.--The programs will emphasize habitat
protection for migratory birds along the length of flyways, preventing
the introduction of new invasive species, and sustainable forestry
techniques development for other timber exporting nations.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 52 54 50
11.3 Other than full-time permanent 4 4 3
11.5 Other personnel compensation.. 3 3 3
--------- --------- ----------
11.9 Total personnel compensation 59 61 56
12.1 Civilian personnel benefits..... 14 15 14
21.0 Travel and transportation of
persons....................... 7 7 6
22.0 Transportation of things........ 1 1 1
23.1 Rental payments to GSA.......... 1 1 1
23.2 Rental payments to others....... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 2 2 2
24.0 Printing and reproduction....... 1 1 1

[[Page 185]]

25.2 Other services.................. 24 78 2
25.3 Other purchases of goods and
services from Government
accounts...................... 3 2 2
26.0 Supplies and materials.......... 4 5 4
31.0 Equipment....................... 2 3 3
41.0 Grants, subsidies, and
contributions................. 342 342 209
--------- --------- ----------
99.0 Direct obligations............ 461 519 302
99.0 Reimbursable obligations.......... 1 8 8
--------- --------- ----------
99.9 Total new obligations........... 462 527 310
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1105-0-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 957 963 867
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 18 18 18
---------------------------------------------------------------------------

State and Private Forestry

(Legislative proposal, subject to PAYGO)

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1105-4-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
25.2 Other services.................... -1
25.3 Other purchases of goods and
services from Government
accounts........................ 1
--------- --------- ----------
99.9 Total new obligations...........
---------------------------------------------------------------------------

Management of National Forest Lands for Subsistence Uses

For necessary expenses of the Forest Service to manage Federal lands
in Alaska for subsistence uses under title VIII of the Alaska National
Interest Lands Conservation Act (Public Law 96-487), [$5,962,000]
$5,467,000, to remain available until expended, of which not to exceed
$100,000 may be transferred to and merged with the ``Office of General
Counsel,'' Department of Agriculture, for salaries and related expenses
incurred in providing legal services in relation to subsistence
management. (Department of the Interior and Related Agencies
Appropriations Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Program Activity........... 6 7 5
--------- --------- ----------
10.00 Total new obligations........... 6 7 5
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1
22.00 New budget authority (gross)...... 6 6 5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 7 7 5
23.95 Total new obligations............. -6 -7 -5
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 6 6 5
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2 2 3
73.10 Total new obligations............. 6 7 5
73.20 Total outlays (gross)............. -6 -6 -5
--------- --------- ----------
74.40 Obligated balance, end of year.. 2 3 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 6 6 5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 6 6 5
90.00 Outlays........................... 6 6 5
---------------------------------------------------------------------------

Funding under this program primarily supports fisheries and wildlife
habitat management activities in the areas of population assessment,
forecasting, harvest regulations, and law enforcement to ensure that the
subsistence needs of qualified rural Alaskans are met under the Alaska
National Interest Lands Conservation Act (Public Law 96-487).

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1119-0-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 2 1 1
12.1 Civilian personnel benefits....... 1 1 1
25.2 Other services.................... 3 5 3
--------- --------- ----------
99.9 Total new obligations........... 6 7 5
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1119-0-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 29 26 25
---------------------------------------------------------------------------

Wildland Fire Management

For necessary expenses for forest fire presuppression activities on
National Forest System lands, for emergency fire suppression on or
adjacent to such lands or other lands under fire protection agreement,
[hazardous fuels reduction on or adjacent to such lands,] and for
emergency rehabilitation of burned-over National Forest System lands and
water, [$1,727,008,000] $1,444,267,000, to remain available until
expended: Provided, That such funds including unobligated balances under
this heading, are available for repayment of advances from other
appropriations accounts previously transferred for such purposes:
Provided further: That any unobligated balances remaining may be
transferred to the ``National Forest System'' account and available
without further appropriation to fund vegetative treatments that improve
condition class: Provided further, That such funds shall be available to
reimburse State and other cooperating entities for services provided in
response to wildfire and other emergencies or disasters to the extent
such reimbursements by the Forest Service for non-fire emergencies are
fully repaid by the responsible emergency management agency: [Provided
further, That not less than 50 percent of any unobligated balances
remaining (exclusive of amounts for hazardous fuels reduction) at the
end of fiscal year 2004 shall be transferred, as repayment for past
advances that have not been repaid, to the fund established pursuant to
section 3 of Public Law 71-319 (16 U.S.C. 576 et seq.): Provided
further, That, notwithstanding any other provision of law, $8,000,000 of
funds appropriated under this appropriation shall be used for Fire
Science Research in support of the Joint Fire Science Program: Provided
further, That all authorities for the use of funds, including the use of
contracts, grants, and cooperative agreements, available to execute the
Forest and Rangeland Research appropriation, are also available in the
utilization of these funds for Fire Science Research:] Provided further,
That funds provided shall be available for emergency rehabilitation and
restoration, [hazardous fuels reduction activities in the urban-wildland
interface,] support to Federal emergency response, and wildfire
suppression activities of the Forest Service: Provided further, That of
the funds provided, [$266,238,000 is for hazardous fuels reduction
activities,] $2,000,000 is for rehabilitation and restoration,
[$22,025,000] $16,885,000 is for research activities and to make
competitive research grants pursuant to the Forest and Rangeland
Renewable Resources Research Act, as amended (16 U.S.C. 1641 et seq.),
[$40,745,000] $29,415,000 is for State fire assistance, [$8,000,000]
$7,889,000 is for volunteer fire assistance, [$15,000,000] $6,974,000 is
for forest health activities on Federal lands and [$10,000,000]
$4,598,000 is for forest health activities on State and private lands:
Provided further, That amounts in this paragraph may be transferred to
the ``State and Private Forestry'', ``National Forest System'', and
``Forest and Rangeland Research'' accounts to fund State fire
assistance, volunteer fire assistance, forest health management, forest
and rangeland research, vegetation and

[[Page 186]]

watershed management, heritage site rehabilitation, and wildlife and
fish habitat management and restoration: Provided further, That
transfers of any amounts in excess of those authorized in this
paragraph, shall require [approval of] notification to the House and
Senate Committees on Appropriations [in compliance with reprogramming
procedures contained in House Report 108-330]: Provided further, That
the costs of implementing any cooperative agreement between the Federal
Government and any non-Federal entity may be shared, as mutually agreed
on by the affected parties: Provided further, That [in addition to funds
provided for State Fire Assistance programs, and subject to all
authorities available to the Forest Service under the State and Private
Forestry Appropriations, up to $15,000,000 may be used on adjacent non-
Federal lands for the purpose of protecting communities when hazard
reduction activities are planned on national forest lands that have the
potential to place such communities at risk: Provided further, That
included in funding for hazardous fuel reduction is $5,000,000 for
implementing the Community Forest Restoration Act, Public Law 106-393,
title VI, and any portion of such funds shall be available for use on
non-Federal lands in accordance with authorities available to the Forest
Service under the State and Private Forestry Appropriation: Provided
further, That] the Secretary of the Interior and the Secretary of
Agriculture may authorize the transfer of funds appropriated for
wildland fire management, in an aggregate amount not to exceed
$12,000,000, between the Departments when such transfers would
facilitate and expedite jointly funded wildland fire management programs
and projects: Provided further, That [of the funds provided for
hazardous fuels reduction, not to exceed $5,000,000, may be used to make
grants, using any authorities available to the Forest Service under the
State and Private Forestry appropriation, for the purpose of creating
incentives for increased use of biomass from national forest lands] the
Secretary of Agriculture may use the amounts appropriated under this
heading for rehabilitation and restoration and other activities
authorized under this heading on Federal land or on adjacent non-Federal
land for activities that benefit resources on Federal lands. (Department
of the Interior and Related Agencies Appropriations Act, 2005.)
[For an additional amount for ``Wildland Fire Management'',
$1,028,000, to remain available until expended, to address damages from
natural disasters: Provided, That such amount is designated as an
emergency requirement pursuant to section 402 of S. Con. Res. 95 (108th
Congress), as made applicable to the House of Representatives by H. Res.
649 (108th Congress) and applicable to the Senate by section 14007 of
Public Law 108-287.]

[Department of the Interior]

[Bureau of Land Management]

[wildland fire management]

[For an additional amount for ``Wildland Fire Management'',
$100,000,000, to remain available until expended, for urgent wildland
fire suppression activities pursuant to section 312 of S. Con. Res. 95
(108th Congress) as made applicable to the House of Representatives by
H. Res. 649 (108th Congress) and applicable to the Senate by section
14007 of Public Law 108-287: Provided, That such funds shall only become
available if funds provided for wildland fire suppression in title I of
this Act will be exhausted imminently and the Secretary of the Interior
notifies the House and Senate Committees on Appropriations and the House
and Senate Committees on the Budget in writing of the need for these
additional funds: Provided further, That such funds are also available
for repayment to other appropriation accounts from which funds were
transferred for wildfire suppression: Provided further, That cost
containment measures shall be implemented within this account for fiscal
year 2005, and the Secretary of the Interior and the Secretary of
Agriculture shall submit a joint report to the Committees on
Appropriations of the Senate and the House of Representatives on such
cost containment measures by December 31, 2005: Provided further, That
Public Law 108-287, title X, chapter 3 is amended under the heading
``Department of the Interior, Bureau of Land Management, Wildland Fire
Management'', by striking the phrases ``for fiscal year 2004'' and
``related to the fiscal year 2004 fire season'' in the text preceding
the first proviso.]

[Department of Agriculture]

[Forest Service]

[wildland fire management]

[For an additional amount for ``Wildland Fire Management'',
$400,000,000, to remain available until expended, for urgent wildland
fire suppression activities pursuant to section 312 of S. Con. Res. 95
(108th Congress) as made applicable to the House of Representatives by
H. Res. 649 (108th Congress) and applicable to the Senate by section
14007 of Public Law 108-287: Provided, That such funds shall only become
available if funds provided for wildland fire suppression in title II of
this Act will be exhausted imminently and the Secretary of Agriculture
notifies the House and Senate Committees on Appropriations and the House
and Senate Committees on the Budget in writing of the need for these
additional funds: Provided further, That such funds are also available
for repayment to other appropriation accounts from which funds were
transferred for wildfire suppression: Provided further, That cost
containment measures shall be implemented within this account for fiscal
year 2005, and the Secretary of Agriculture and the Secretary of the
Interior shall submit a joint report to the Committees on Appropriations
of the Senate and the House of Representatives on such cost containment
measures by December 31, 2005: Provided further, That the Secretary of
Agriculture shall establish an independent cost-control review panel to
examine and report on fire suppression costs for individual wildfire
incidents that exceed $10,000,000 in cost: Provided further, That if the
independent review panel report finds that appropriate actions were not
taken to control suppression costs for one or more such wildfire
incidents, then an amount equal to the aggregate estimated excess costs
of suppressing those wildfire incidents shall be transferred to the
Treasury from unobligated balances remaining at the end of fiscal year
2005 in the Wildland Fire Management account: Provided further, That
Public Law 108-287, title X, chapter 3 is amended under the heading
``Department of Agriculture, Forest Service, Wildland Fire Management'',
by striking the phrases ``for fiscal year 2004'' and ``related to the
fiscal year 2004 fire season'' in the text preceding the first proviso.]
(Emergency Supplemental Appropriations for Hurricane Disasters
Assistance Act, 2005.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Wildland fire management.......... 1,774 2,334 1,376
09.01 Reimbursable program.............. 102 43 43
--------- --------- ----------
10.00 Total new obligations........... 1,876 2,377 1,419
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 311 313
22.00 New budget authority (gross)...... 2,069 2,064 1,419
22.10 Resources available from
recoveries of prior year
obligations..................... 8
22.21 Unobligated balance transferred to
other accounts.................. -199
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,189 2,377 1,419
23.95 Total new obligations............. -1,876 -2,377 -1,419
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 313
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 2,369 2,128 1,444
40.35 Appropriation permanently
reduced....................... -22 -29
41.00 Transferred to other accounts... -337 -108 -68
42.00 Transferred from other accounts. 30
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 2,010 2,021 1,376
Spending authority from offsetting
collections:

68.00 Offsetting collections (cash)... 43 43 43
68.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 16
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)....... 59 43 43
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,069 2,064 1,419
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 457 329 924
73.10 Total new obligations............. 1,876 2,377 1,419

[[Page 187]]

73.20 Total outlays (gross)............. -1,980 -1,782 -1,508
73.45 Recoveries of prior year
obligations..................... -8
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -16
--------- --------- ----------
74.40 Obligated balance, end of year.. 329 924 835
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,443 1,503 1,277
86.93 Outlays from discretionary
balances........................ 537 279 231
--------- --------- ----------
87.00 Total outlays (gross)........... 1,980 1,782 1,508
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -16 -16 -16
88.40 Non-Federal sources........... -27 -27 -27
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -43 -43 -43
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -16
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2,010 2,021 1,376
90.00 Outlays........................... 1,937 1,739 1,465
---------------------------------------------------------------------------

Wildland Fire Management.--This appropriation provides funding for
Forest Service fire management, presuppression, and suppression on
National Forest System lands, adjacent State and private lands, and
other lands under fire protection agreement.

Preparedness.--To protect National Forest System (NFS) lands from
damage by wildfires commensurate with the threat to life, values at
risk, public values, and management objectives.

Preparedness provides the basic fire organization and capability to
prevent forest fires and to take prompt, effective initial attack
suppression operations action on wildfires. This funding covers expenses
associated with planning, prevention, detection, information, and
education; pre-incident training; equipment and supply purchase and
replacement; and other preparedness activities, including the base
salary and travel of the regular Forest Service firefighting
organization. Through this program the Forest Service also assists other
Federal agencies and States with training programs, planning assistance,
sharing joint equipment use contracts, and interagency fire coordination
centers.

Fire Operations.--To appropriately suppress wildland fires on or
threatening NFS lands or other lands under fire protection agreement.
The Budget provides full funding of the ten-year average of suppression
costs, adjusted for inflation.

The budget addresses Federal wildfire suppression costs that have
exceeded $1 billion for four out of the last five years. Specifically,
the Administration proposes that the Forest Service:

LImplement cost containment performance measures and
clearer rules concerning the use of suppression resources, including
incentives for rapid demobilization.

LImplement key recommendations of the PART review on the
fire program to improve accountability for fire costs and improves
performance measurement.

LProvide for greater program accountability at national
headquarters.

LImplement the agency's stratified supression cost model.

LAllocate not less than 50% of suppression funds to Forest
Service regions and permit regions to retain the majority of unobligated
funds for use in hazardous fuels reduction activities in subsequent
fiscal years.

Additionally, Fire Operations funds are used to immediately and
efficiently rehabilitate severely burned NFS lands to prevent further
destruction of natural resources and property, including soil loss and
flooding. Funds are used to provide an appropriate level of fire
preparedness when predicted or actual burning conditions exceed normal
levels and are also used to support the joint fire sciences program.

Funds are provided to enhance State and private programs that will
contribute to cooperative fire assistance, increased fire department
readiness, and forest health programs to reduce fire risk. Funds would
also be available to facilitate and expedite USDA and Department of the
Interior jointly funded wildland fire management programs and projects.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 385 398 318
11.3 Other than full-time permanent 60 62 49
11.5 Other personnel compensation.. 164 170 136
11.8 Special personal services
payments.................... 29 30 24
--------- --------- ----------
11.9 Total personnel compensation 638 660 527
12.1 Civilian personnel benefits..... 163 168 134
13.0 Benefits for former personnel... 30 31 25
21.0 Travel and transportation of
persons....................... 47 47 47
22.0 Transportation of things........ 7 7 7
23.1 Rental payments to GSA.......... 9 9 9
23.2 Rental payments to others....... 18 18 18
23.3 Communications, utilities, and
miscellaneous charges......... 34 34 34
24.0 Printing and reproduction....... 2 1 1
25.2 Other services.................. 580 1,099 314
25.3 Other purchases of goods and
services from Government
accounts...................... 65 65 65
25.7 Operation and maintenance of
equipment..................... 5 5 5
26.0 Supplies and materials.......... 119 119 119
31.0 Equipment....................... 20 34 34
41.0 Grants, subsidies, and
contributions................. 30 30 30
42.0 Insurance claims and indemnities 7 7 7
--------- --------- ----------
99.0 Direct obligations............ 1,774 2,334 1,376
99.0 Reimbursable obligations.......... 102 43 43
--------- --------- ----------
99.9 Total new obligations........... 1,876 2,377 1,419
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1115-0-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 11,174 11,154 8,680
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 51 51 51
---------------------------------------------------------------------------

Wildland Fire Management

(Legislative proposal, subject to PAYGO)

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1115-4-1-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
25.2 Other services.................... -14
25.3 Other purchases of goods and
services from Government
accounts........................ 14
--------- --------- ----------
99.9 Total new obligations...........
---------------------------------------------------------------------------

Range Betterment Fund

For necessary expenses of range rehabilitation, protection, and
improvement, 50 percent of all moneys received during the prior fiscal
year, as fees for grazing domestic livestock on lands in National
Forests in the 16 Western States, pursuant to section 401(b)(1) of
Public Law 94-579, as amended, to remain available until expended, of
which not to exceed 6 percent shall be available for administrative
expenses associated with on-the-ground range rehabilitation, protection,
and improvements. (Department of the Interior and Related Agencies
Appropriations Act, 2005.)

[[Page 188]]

Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5207-0-2-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ 4 4 4
Receipts:
02.20 Receipts, Cooperative range
improvements.................... 2 2 2
--------- --------- ----------
04.00 Total: Balances and collections... 6 6 6
Appropriations:
05.00 Range betterment fund............. -2 -2 -3
--------- --------- ----------
07.99 Balance, end of year.............. 4 4 3
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Range betterment fund............. 3 3 3
--------- --------- ----------
10.00 Total new obligations........... 3 3 3
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1
22.00 New budget authority (gross)...... 2 2 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3 3 3
23.95 Total new obligations............. -3 -3 -3
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund).... 2 2 3
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1 1 1
73.10 Total new obligations............. 3 3 3
73.20 Total outlays (gross)............. -3 -3 -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 1 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2 2 2
86.93 Outlays from discretionary
balances........................ 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 3 3 2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2 2 3
90.00 Outlays........................... 3 3 2
---------------------------------------------------------------------------

Fifty percent of grazing fees from National Forests in the 16
western States, once appropriated, are used to protect and improve
rangeland productivity primarily through revegetation, construction and
reconstruction, and maintenance of improvements under authority of the
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1751), as
amended.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5207-0-2-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 1 1 1
25.2 Other services.................... 1
26.0 Supplies and materials............ 1 2 2
--------- --------- ----------
99.9 Total new obligations........... 3 3 3
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-5207-0-2-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 19 19 19
---------------------------------------------------------------------------

Land Acquisition

For expenses necessary to carry out the provisions of the Land and
Water Conservation Fund Act of 1965, as amended (16 U.S.C. 460l-4
through 11), including administrative expenses, and for acquisition of
land or waters, or interest therein, in accordance with statutory
authority applicable to the Forest Service, [$61,866,000] $40,000,000,
to be derived from the Land and Water Conservation Fund and to remain
available until expended.

acquisition of lands for national forests special acts

For acquisition of lands within the exterior boundaries of the
Cache, Uinta, and Wasatch National Forests, Utah; the Toiyabe National
Forest, Nevada; and the Angeles, San Bernardino, Sequoia, and Cleveland
National Forests, California, as authorized by law, $1,069,000, to be
derived from forest receipts.

acquisition of lands to complete land exchanges

For acquisition of lands, such sums, to be derived from funds
deposited by State, county, or municipal governments, public school
districts, or other public school authorities, and for authorized
expenditures from funds deposited by non-Federal parties pursuant to
Land Sale and Exchange Acts, pursuant to the Act of December 4, 1967, as
amended (16 U.S.C. 484a), to remain available until expended. (16 U.S.C.
4601-516-617a, 555a; P.L. 96-586; P.L. 76-589, 76-591; and 78-310;
Department of the Interior and Related Agencies Appropriations Act,
2005.)

Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9923-0-2-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ 1 4 35
Receipts:
02.20 National forest lands under
special acts.................... 3 32 71
--------- --------- ----------
04.00 Total: Balances and collections... 4 36 106
Appropriations:
05.00 Land acquisition.................. -1 -1
--------- --------- ----------
07.99 Balance, end of year.............. 4 35 105
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Land acquisition.................. 102 156 41
--------- --------- ----------
10.00 Total new obligations........... 102 156 41
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 30 94
22.00 New budget authority (gross)...... 122 62 41
22.22 Unobligated balance transferred
from other accounts............. 44
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 196 156 41
23.95 Total new obligations............. -102 -156 -41
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 94
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (LWCF)............ 71 62 40
40.20 Appropriation (special act)..... 1 1
40.37 Appropriation temporarily
reduced....................... -1 -1
42.00 Transferred from other accounts. 52
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 122 62 41
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 18 20 23
73.10 Total new obligations............. 102 156 41
73.20 Total outlays (gross)............. -100 -153 -48
--------- --------- ----------
74.40 Obligated balance, end of year.. 20 23 16
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 92 41 27
86.93 Outlays from discretionary
balances........................ 8 112 21
--------- --------- ----------
87.00 Total outlays (gross)........... 100 153 48
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 122 62 41

[[Page 189]]

90.00 Outlays........................... 101 153 48
---------------------------------------------------------------------------

This appropriation consolidates land acquisition authorities for
acquisition of lands, waters, or interest therein, as authorized by law.

Land and Water Conservation Fund.--Recreation lands and interests
are acquired within areas of the National Forest System, wilderness,
wildlife and fisheries habitat management areas, and endangered species
and other areas for public outdoor recreation purposes.

Acquisition of Lands of National Forests, Special Acts.--To acquire
lands within critical watersheds to provide soil stabilization and
restoration of vegetation. Public Laws 76-589, 76-591 and 78-310 (54
Stat. 297, 298, 299, and 402; and 58 Stat. 227-228) authorize
appropriations for the purchase of lands to minimize erosion and flood
damage to critical watersheds within the following National Forests: the
Cache, Uinta, and Wasatch, Utah; the Toiyabe, Nevada; and the Angeles,
Cleveland, San Bernardino, and Sequoia, California. Appropriations are
made from receipts on these National Forests.

Acquisition of Lands to Complete Land Exchanges.--Deposits made by
State, county, or municipal governments, public school districts, or
other public school authorities for cash equalization of certain land
exchanges are used to acquire similar lands suitable for National Forest
System purposes in the same State as the National Forest lands conveyed
in the land exchange or from non-Federal parties for authorized
expenditures.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9923-0-2-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 8 8 8
12.1 Civilian personnel benefits....... 2 2 2
25.2 Other services.................... 9 9 3
31.0 Equipment......................... 1 1
32.0 Land and structures............... 83 136 27
--------- --------- ----------
99.9 Total new obligations........... 102 156 41
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9923-0-2-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 141 138 134
---------------------------------------------------------------------------

Forest Service Permanent Appropriations

Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9921-0-2-999 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ 243 232 210
Receipts:
02.20 National forests fund............. -23
02.21 Charges, user fees, and natural
resource utilization, Land betwe 7 4 4
02.22 National forests fund, Payments to
States.......................... 96 92 92
02.23 Timber roads, Purchaser elections. 7 7 7
02.24 National forests fund, Roads and
trails for States............... 13 18 18
02.25 Timber salvage sales.............. 76 75 75
02.26 Deposits, Brush disposal.......... 14 14 15
02.27 Rents and charges for quarters,
Forest Service.................. 8 8 8
02.28 Timber sales pipeline restoration
fund............................ 6 6 7
02.29 Recreational fee demonstration
program, Forest Service......... 47 47 49
02.31 Midewin national tallgrass prairie
rental fees..................... 1 1 1
02.32 National grasslands............... -16
02.33 Miscellaneous special funds,
Forest Service.................. 10 5 5
02.34 National forest fund.............. 12 24 23
02.35 Fees, operation, and maintenance
of recreation facilities, Forest
Service......................... 4 4 4
02.36 Miscellaneous collections......... 1 1
--------- --------- ----------
02.99 Total receipts and collections.. 262 306 309
--------- --------- ----------
04.00 Total: Balances and collections... 505 538 519
Appropriations:
05.00 Forest Service permanent
appropriations.................. -273 -328 -369
--------- --------- ----------
07.99 Balance, end of year.............. 232 210 150
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Brush Disposal.................... 12 14 15
00.02 Restoration of Forest Lands and
Improvements.................... -2 4 4
00.03 Recreation Fee Collections........ 1
00.04 Recreation Fee Demonstration /
Enhancement Programs............ 46 36 38
00.05 Stewardship Contracting........... 2 2
00.06 Timber Roads--Purchaser Election
Program......................... 2 7 7
00.07 Timber Salvage Sale Program....... 63 65 70
00.08 Timber Pipeline Restoration Fund.. 6 5 5
00.09 Roads and Trails (10% Fund)....... 3 18 18
00.10 Midewin Tallgrass Prairie Funds... 1 1 1
00.11 Operation and Maintenance of
Quarters........................ 4 9 9
00.12 Land Between the Lakes Management
Fund............................ 4 4 4
00.13 Valles Caldera Fund............... 1 1 1
00.14 Payment to States--Northern
Spotted Owl Guarantee........... 5
00.15 Payment to States--Transfers from
Treasury........................ 316 310 310
00.16 Payment to States--National Forest
Fund............................ 71 91 91
00.17 Payments to Minnesota............. 2 2 2
00.18 Payments to Counties--National
Grasslands...................... 6 6 6
00.19 Administration of Rights-of-Way
and Other Land Uses............. 3
00.20 Land Acquisition and Enhancement
Fund............................ 18 25
--------- --------- ----------
10.00 Total new obligations........... 541 596 608
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 230 433 475
22.00 New budget authority (gross)...... 639 638 679
22.10 Resources available from
recoveries of prior year
obligations..................... 61
22.22 Unobligated balance transferred
from other accounts............. 44
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 974 1,071 1,154
23.95 Total new obligations............. -541 -596 -608
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 433 475 546
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

42.00 Transferred from other accounts. 52
Mandatory:

60.00 Appropriation................... 316 310 310
60.20 Appropriation (special fund).... 273 328 369
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 589 638 679
69.10 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 639 638 679
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 103 33 -64
73.10 Total new obligations............. 541 596 608
73.20 Total outlays (gross)............. -548 -693 -769
73.40 Adjustments in expired accounts
(net)........................... -3
73.45 Recoveries of prior year
obligations..................... -61
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 2
--------- --------- ----------
74.40 Obligated balance, end of year.. 33 -64 -225
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 34
86.97 Outlays from new mandatory
authority....................... 484 593 624
86.98 Outlays from mandatory balances... 30 100 145
--------- --------- ----------
87.00 Total outlays (gross)........... 548 693 769
----------------------------------------------------------------------------

Offsets:
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 641 638 679

[[Page 190]]

90.00 Outlays........................... 548 693 769
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2004 actual 2005 est. 2006 est.
Enacted/requested:
Budget Authority.................. 641 638 679
Outlays........................... 548 693 769
Legislative proposal, subject to
PAYGO:
Budget Authority.................. 47
Outlays........................... 38
------------------------------------
Total:
Budget Authority.................. 641 638 726
Outlays........................... 548 693 807
====================================

Operation and Maintenance of Quarters.--Quarters rental deductions
are collected from employees occupying Forest Service facilities.
Amounts are deposited into a special fund and are available for the
maintenance and operation of employee-occupied quarters. (5 U.S.C. 5911)

Resource Management, Timber Receipts.--Funds in this special account
are available for trail maintenance, reconstruction, and construction;
wildlife and fisheries habitat management; soil, water, and air
management; cultural/heritage resource management; wilderness
management; reforestation; and timber sale administration and
management.

Recreation Fee Program.--Pursuant to Sec. 8 of Division J--
Consolidated Appropriations Act, 2005, Title VII--Federal Lands
Recreation Enhancement Act, 2005, Public Law 108-447 of December 8,
2004, the Secretary may establish, modify, charge, and collect
recreation fees at Federal recreational lands and waters, including
specific recreation sites or areas, for expanded recreation amenities,
and special recreation permits. Amounts collected shall be used for
repair, maintenance, interpretation, visitor information, limited
habitat restoration, and direct operating or capital costs and other
identified appropriate expenses.

Midewin National Tallgrass Prairie Rental Fees.--Monies received
under a special use authorization (issued under subsection (b) of Public
Law 104-106, Title XXIX, Subtitle A, Section 2915, after distribution to
the State of Illinois and affected counties pursuant to the Act of May
23, 1908) are available to cover the cost to the United States of
prairie improvement work at the Midewin National Tallgrass Prairie.

Midewin National Tallgrass Prairie Restoration Fund.--Monies
received from user fees and the salvage value proceeds from sale of any
facilities and improvements pursuant to Section 2915(d) and (e) of
Public Law 104-106, as amended by Public Law 105-83, are available to
cover the costs of restoration and administrative activities.

Payment to Minnesota.--At the close of each fiscal year, the State
of Minnesota is paid 0.75 percent of the appraised value of certain
Superior National Forest lands in the counties of Cook Lake and St.
Louis for distribution to these counties (16 U.S.C. 577g).

Payments to Counties, National Grasslands.--This program provides an
annual payment to counties in which Title III--Bankhead-Jones Acquired
Lands are located for funding public schools and roads. Of the net
revenues for use of Title III--Bankhead-Jones Farm Tenant Act lands, 25
percent is paid to the counties in which such lands are located for
public school and road purposes (7 U.S.C. 1012).

Payments to States.--The Secure Rural Schools and Community Self-
Determination Act of 2000 (P.L. 106-393 dated October 30, 2000) provides
stabilized education and road maintenance funding through predictable
payments to counties, job creation in those counties and other
opportunities associated with the restoration, maintenance and
stewardship of Federal lands. Under P.L. 106-393, counties may elect one
of two methods to calculate Payments to States funding they receive.
Counties can either choose to continue receiving funds established by
the 25 percent fund or they can receive their share of the State's
``full payment amount.'' Full payment amount is the average of the
highest three years of payments to the State under the 25 percent fund
through the years 1986-1999. A county's share of that amount is
generally determined by the State in cooperation with the affected
counties.

Expenses, Brush Disposal.--Funds from payments by purchasers of
National Forest timber to dispose of or treat slash and other debris
that result from cutting operations (16 U.S.C. 490).

Licensee programs, Forest Service.--Funds from fees for the use of
characters by private enterprises are collected under regulations
promulgated by the Secretary as follows:
Smokey Bear.--For furthering the nationwide forest fire
prevention campaign (16 U.S.C. 580(2)).
Woodsy Owl.--For promoting wise use of the environment and
programs which foster maintenance and improvement of environmental
quality (16 U.S.C. 580(1)).

Restoration of forestlands and improvements.--Funds from claim
settlements involving damage to lands or improvements and from
forfeiture of deposits and bonds by permittees and timber purchasers are
used for the restoration made necessary by the action which led to the
settlement of forfeiture (16 U.S.C. 579c).

Timber Purchaser Roads Constructed by Forest Service.--Funds from
timber receipts for Government constructed permanent roads for
purchasers of timber who qualify as small businesses and elect to have
the Forest Service construct the roads designated under the timber sale
contract where costs exceed $20,000 (16 U.S.C. 472a(i)).

Tongass Timber Supply Fund.--Funds from sales of Alaska timber to
maintain the timber supply from the Tongass National Forest at a
specified level (16 U.S.C. 539d).

Timber Salvage Sales.--Funds are used for salvage of insect-
infested, dead, damaged, or down timber, and to remove associated trees
for stand improvement (16 U.S.C. 472a(h)).

Timber Sales Pipeline Restoration Fund.--As authorized under Section
327 of the Omnibus Consolidated Recissions and Appropriations Act of
1996, funds from revenues received from timber sales released under
Section 2001(k) of the 1995 Supplemental Appropriations for Disaster
Assistance and Recissions Act for the purpose of restoring the timber
pipeline and funding the backlog of recreation projects on National
Forest System lands.

Valles Caldera Fund established under the Valles Caldera
Preservation Act (Public Law 106-248) provides funds, which shall be
available without further appropriation for any purpose consistent with
the purposes of the Act. Notwithstanding sections 1341 and 3302 of title
31 of the United States Code, all monies received from donations under
subsection (g) or from the management of the Preserve shall be retained
and shall be available, without further appropriation, for the
administration, preservation, restoration, operation and maintenance,
improvement, repair, and related expenses incurred with respect to
properties under its management jurisdiction.

Forest Botanical Products.--This pilot program established by
Section 339 of the Consolidated Appropriations Act of FY 2000 (P.L. 106-
113) provides for the recovery of fair market value for the sale of
forest botanical products; the collection of fees to cover the costs of
analyzing, granting, modifying, and monitoring the harvest of these
products; the determination of sustainable harvest levels; and the
establishment of personal use levels for which fees would not be
collected.

[[Page 191]]

Administration of Rights-of-Way and Other Land Uses.--Fees collected
from applicants and holders of special use authorizations are available
to recover costs for processing applications and monitoring compliance
with special use authorizations (31 U.S.C. 9701; 43 U.S.C. 1764(g); 30
U.S.C. 815(1)).

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 58 60 61
11.3 Other than full-time permanent 13 13 14
11.5 Other personnel compensation.. 7 7 7
--------- --------- ----------
11.9 Total personnel compensation 78 80 82
12.1 Civilian personnel benefits..... 19 20 20
13.0 Benefits for former personnel... 1 1 1
21.0 Travel and transportation of
persons....................... 3 3 3
22.0 Transportation of things........ 1 1 1
23.1 Rental payments to GSA.......... 1 1 1
23.2 Rental payments to others....... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 4 4 4
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 36 50 51
25.3 Other purchases of goods and
services from Government
accounts...................... 6 6 6
25.7 Operation and maintenance of
equipment..................... 1 1 2
26.0 Supplies and materials.......... 6 15 15
31.0 Equipment....................... 2 2 4
32.0 Land and structures............. 3 24 30
41.0 Grants, subsidies, and
contributions................. 376 386 386
--------- --------- ----------
99.0 Direct obligations............ 539 596 608
99.0 Reimbursable obligations.......... 2
--------- --------- ----------
99.9 Total new obligations........... 541 596 608
---------------------------------------------------------------------------

Personnel Summary

Forest Service Permanent Appropriations

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.19 Administration of Rights-of-Way
and Other Land Uses............. 4
00.20 Land Acquisition and Enhancement
Fund............................ 25
--------- --------- ----------
10.00 Total new obligations........... 29
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year..........
22.00 New budget authority (gross)...... 47
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 47
23.95 Total new obligations............. -29
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 18
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.20 Appropriation (special fund).... 47
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year..
73.10 Total new obligations............. 29
73.20 Total outlays (gross)............. -38
--------- --------- ----------
74.40 Obligated balance, end of year.. -9
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 38
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 47
90.00 Outlays........................... 38
---------------------------------------------------------------------------

A proposal for a Facilities Acquisition and Enhancement Fund would
enable the Secretary to sell unneeded administrative sites including
facilities and appurtenant administrative land, and to use the proceeds
for acquiring administrative lands, construction, maintenance,
rehabilitation and improvement of administrative sites. The agency
currently experiences a $2.8 billion backlog that has accumulated
because of inadequate and untimely maintenance. Over 60 percent of the
agency's facilities are over 30 years old and functionally obsolete.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 8
11.3 Other than full-time permanent.. 3
11.5 Other personnel compensation.... 1
--------- --------- ----------
11.9 Total personnel compensation.. 12
12.1 Civilian personnel benefits....... 3
25.2 Other services.................... 3
26.0 Supplies and materials............ 2
32.0 Land and structures............... 9
--------- --------- ----------
99.9 Total new obligations........... 29
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9921-4-2-999 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 250
---------------------------------------------------------------------------

Intragovernmental funds:

Working Capital Fund

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Working Capital fund.............. 209 187 187
--------- --------- ----------
10.00 Total new obligations........... 209 187 187
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 68 110 110
22.00 New budget authority (gross)...... 245 187 187
22.10 Resources available from
recoveries of prior year
obligations..................... 3
22.22 Unobligated balance transferred
from other accounts............. 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 320 297 297
23.95 Total new obligations............. -209 -187 -187
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 110 110 110
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

42.00 Transferred from other accounts. 5
Mandatory:

69.00 Offsetting collections (cash)... 237 187 187
69.10 Change in uncollected customer
payments from Federal sources
(unexpired)................... 3
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)........... 240 187 187
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 245 187 187
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 66 29 22

[[Page 192]]

73.10 Total new obligations............. 209 187 187
73.20 Total outlays (gross)............. -241 -194 -187
73.45 Recoveries of prior year
obligations..................... -3
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 29 22 22
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5
86.93 Outlays from discretionary
balances........................ 1
86.97 Outlays from new mandatory
authority....................... 210 168 168
86.98 Outlays from mandatory balances... 26 25 19
--------- --------- ----------
87.00 Total outlays (gross)........... 241 194 187
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -170 -187 -187
88.40 Non-Federal sources........... -67
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -237 -187 -187
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 5
90.00 Outlays........................... 4 7
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2004 actual 2005 est. 2006 est.
Enacted/requested:
Budget Authority.................. 5
Outlays........................... 4 7
Legislative proposal, subject to
PAYGO:
Budget Authority..................
Outlays........................... -5
------------------------------------
Total:
Budget Authority.................. 5
Outlays........................... 4 7 -5
====================================

The Working Capital Fund is a self-sustaining revolving fund that
provides services to National Forests, to Research Experiment Stations,
to other Federal agencies when necessary, to State and private agencies
as provided by law, and to persons who cooperate with the Forest Service
in fire control and other authorized programs.

Forestry-related supply and support services include:

Equipment Services.--The fund owns, operates, maintains, replaces,
and repairs common-use, motor-driven, and similar equipment. This
equipment is rented to administrative units, that is, National Forests,
Research Experiment Stations, and other units, and, in some cases, to
other agencies, at rates which recover the cost of operation, repair and
maintenance, management, and depreciation. The rates also include an
increment which provides additional cash which, when added to
depreciation earnings and the residual value of equipment, provides
sufficient funds to replace the equipment.

Aircraft Services.--The fund operates, maintains, and repairs Forest
Service owned aircraft used in fire surveillance and suppression and in
other Forest Service programs. The aircraft are rented to National
Forests, Research Experiment Stations, and in some cases to other
agencies, at rates which recover the cost of depreciation, operation,
maintenance, repair, and improvements in the airworthiness of the
aircraft. Aircraft replacement costs are financed from either
appropriated funds or the Forest Service Working Capital Fund, or a
combination of both.

Supply Services.--The fund operates the following common services,
and provides for cost-recovery of Working Capital Fund Program
Management:

Photo reproduction laboratories that store, reproduce, and supply
aerial photographs, aerial maps, and other photographs of National
Forest lands. Photographic reproductions are sold to National Forests,
Experiment Stations, and others at cost.

Sign shops that manufacture and supply special signs for the
National Forests for use in regulating traffic and as information to the
public and other users of the National Forests. Signs are sold to
National Forests and Experiment Stations at cost.

Seed supply services that provide tree seed for direct seeding or
sowing in nurseries for the production of trees. Includes purchase or
collection of cones, extraction of seeds, cleaning and testing, and
storage and delivery. Operates in conjunction with tree nurseries; that
is, forest tree nurseries and cold storage facilities for storage of
tree seedlings. Tree seedlings are sold to National Forests, State
foresters, and other cooperators at cost.

The Budget includes a proposal for the establishment of a working
capital fund for facilities. Establishment of this authority will reduce
the Forest Service's maintenance costs and expand efforts to address its
deferred maintenance backlog. The authority will support facility and
space management investment expenses for Forest Service real property,
including owned and leased space. The working capital fund will be used
for funding capital repair, renovation, rehabilitation, maintenance,
disposal, or replacement of buildings and improvements.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 27 28 29
11.3 Other than full-time permanent.. 2 2 2
11.5 Other personnel compensation.... 3 3 3
--------- --------- ----------
11.9 Total personnel compensation.. 32 33 34
12.1 Civilian personnel benefits....... 9 9 9
21.0 Travel and transportation of
persons......................... 3 3 3
22.0 Transportation of things.......... 1 1
23.2 Rental payments to others......... 1
23.3 Communications, utilities, and
miscellaneous charges........... 4 4 4
24.0 Printing and reproduction......... 1 1 1
25.2 Other services.................... 7 7 7
25.3 Other purchases of goods and
services from Government
accounts........................ 17 17 16
25.7 Operation and maintenance of
equipment....................... 17 18 18
26.0 Supplies and materials............ 32 30 30
31.0 Equipment......................... 86 64 64
--------- --------- ----------
99.9 Total new obligations........... 209 187 187
---------------------------------------------------------------------------
Note.--Personnel totals are included with personnel totals of all other
Forest Service programs.

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-4605-0-4-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 619 619 619
---------------------------------------------------------------------------

Working Capital Fund

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Working Capital fund.............. 50
--------- --------- ----------

[[Page 193]]

10.00 Total new obligations........... 50
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 50
23.95 Total new obligations............. -50
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Offsetting collections (cash)... 50
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year..
73.10 Total new obligations............. 50
73.20 Total outlays (gross)............. -45
--------- --------- ----------
74.40 Obligated balance, end of year.. 5
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 45
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -50
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -5
---------------------------------------------------------------------------

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 8
11.3 Other than full-time permanent.. 5
11.5 Other personnel compensation.... 1
--------- --------- ----------
11.9 Total personnel compensation.. 14
12.1 Civilian personnel benefits....... 3
25.2 Other services.................... 24
25.7 Operation and maintenance of
equipment....................... 3
26.0 Supplies and materials............ 5
31.0 Equipment......................... 1
--------- --------- ----------
99.9 Total new obligations........... 50
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-4605-4-4-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Reimbursable:
2001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 281
---------------------------------------------------------------------------

Trust Funds

Forest Service Trust Funds

Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9974-0-7-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............ 154 154
Receipts:
02.00 Transfers from general fund of
amounts equal to certain customs 30 30 30
02.20 Forest Service cooperative fund... 112 108 108
02.30 Repayment of wildland fire
suppression transfer
(proprietary)................... 154
02.40 Transfer from TVA for land between
the lakes trust fund............ 1 1 1
--------- --------- ----------
02.99 Total receipts and collections.. 297 139 139
--------- --------- ----------
04.00 Total: Balances and collections... 297 293 293
Appropriations:
05.00 Forest Service trust funds........ -143 -139 -139
--------- --------- ----------
07.99 Balance, end of year.............. 154 154 154
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Cooperative Work Trust Fund....... 111 130 130
00.02 Land Between the Lakes Trust Fund. 1 1 1
00.03 Reforestation Trust Fund.......... 18 30 30
--------- --------- ----------
10.00 Total new obligations........... 130 161 161
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 297 306 284
22.00 New budget authority (gross)...... 139 139 139
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 436 445 423
23.95 Total new obligations............. -130 -161 -161
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 306 284 262
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.26 Appropriation (trust fund)...... 143 139 139
69.00 Offsetting collections (cash)..... -4
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 139 139 139
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 60 43 74
73.10 Total new obligations............. 130 161 161
73.20 Total outlays (gross)............. -147 -130 -139
--------- --------- ----------
74.40 Obligated balance, end of year.. 43 74 96
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 116 111 111
86.98 Outlays from mandatory balances... 31 19 28
--------- --------- ----------
87.00 Total outlays (gross)........... 147 130 139
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... 3
88.40 Non-Federal sources........... 1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ 4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 143 139 139
90.00 Outlays........................... 150 130 139
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 3 4 3
92.02 Total investments, end of year:
Federal securities: Par value... 4 3 3
---------------------------------------------------------------------------

Reforestation trust fund.--Amounts from this account are used for
reforestation as authorized by 16 U.S.C. 1606a (d) and (e).

Cooperative work trust fund.--Funds, including deposits from
purchasers of timber, are received and used for specified work in forest
investigations, protection, and improvement of the National Forest
System, including protection, reforestation, and administration of
private lands adjacent to National Forests (7 U.S.C. 2269; 16 U.S.C.
498, 535, 565a, 572, 572a, 576b, 1643; and 31 U.S.C. 1321).

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 40 42 42
11.3 Other than full-time permanent 6 7 7
11.5 Other personnel compensation.. 4 4 4
--------- --------- ----------
11.9 Total personnel compensation 50 53 53
12.1 Civilian personnel benefits..... 14 14 14
13.0 Benefits for former personnel... 1 1 2
21.0 Travel and transportation of
persons....................... 2 2 2

[[Page 194]]

22.0 Transportation of things........ 1 1
23.1 Rental payments to GSA.......... 1 1 1
23.2 Rental payments to others....... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 2 2 3
25.2 Other services.................. 28 61 60
25.3 Other purchases of goods and
services from Government
accounts...................... 6 6 6
26.0 Supplies and materials.......... 11 11 11
31.0 Equipment....................... 1 1 1
32.0 Land and structures............. 5 5 5
41.0 Grants, subsidies, and
contributions................. 3 3 1
--------- --------- ----------
99.0 Direct obligations............ 126 161 161
99.0 Reimbursable obligations.......... 4
--------- --------- ----------
99.9 Total new obligations........... 130 161 161
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9974-0-7-302 2004 actual 2005 est. 2006 est.
----------------------------------------------------------------------------
Direct:
1001 Total compensable workyears:
Civilian full-time equivalent
employment...................... 1,101 1,111 1,082
---------------------------------------------------------------------------

Allocations and Allotments Received From Other Accounts

Note.--Obligations incurred under allocations or allotments from
other accounts are included in the schedule of the parent
appropriations, as follows:
Agriculture:
Agricultural Research Service.
Animal and Plant Health Inspection Service.
Natural Resources Conservation Service.
Watershed and flood prevention operations.
Resource conservation and development.
Conservation Reserve Program.
Department Administration:
Hazardous materials management.
Rural Housing; Rural community fire protection grants.
Transportation: Federal Highway Administration, Highway Trust
Fund.
Labor: Employment and Training Administration, Training and
employment services.

ADMINISTRATIVE PROVISIONS, FOREST SERVICE

Appropriations to the Forest Service for the current fiscal year
shall be available for: (1) purchase of not to exceed [124] 119
passenger motor vehicles of which [21] 14 will be used primarily for law
enforcement purposes and of which [124] 119 shall be for replacement;
acquisition of 25 passenger motor vehicles from excess sources, and hire
of such vehicles; purchase, lease, operation, maintenance, and
acquisition of aircraft from excess sources to maintain the operable
fleet at [195] 335 aircraft for use in Forest Service wildland fire
programs and other Forest Service programs; notwithstanding other
provisions of law, existing aircraft being replaced may be sold, with
proceeds derived or trade-in value used to offset the purchase price for
the replacement aircraft; (2) services pursuant to 7 U.S.C. 2225, and
not to exceed $100,000 for employment under 5 U.S.C. 3109; (3) purchase,
erection, and alteration of buildings and other public improvements (7
U.S.C. 2250); (4) acquisition of land, waters, and interests therein
pursuant to 7 U.S.C. 428a; (5) for expenses pursuant to the Volunteers
in the National Forest Act of 1972 (16 U.S.C. 558a, 558d, and 558a
note); (6) the cost of uniforms as authorized by 5 U.S.C. 5901-5902; and
(7) for debt collection contracts in accordance with 31 U.S.C. 3718(c).
[None of the funds made available under this Act shall be obligated
or expended to abolish any region, to move or close any regional office
for National Forest System administration of the Forest Service,
Department of Agriculture without the consent of the House and Senate
Committees on Appropriations.]
[Any appropriations or funds available to the Forest Service may be
transferred to the Wildland Fire Management appropriation for forest
firefighting, emergency rehabilitation of burned-over or damaged lands
or waters under its jurisdiction, and fire preparedness due to severe
burning conditions upon notification of the House and Senate Committees
on Appropriations and if and only if all previously appropriated
emergency contingent funds under the heading ``Wildland Fire
Management'' have been released by the President and apportioned and all
wildfire suppression funds under the heading ``Wildland Fire
Management'' are obligated].
[The first transfer of funds into the Wildland Fire Management
account shall include unobligated funds, if available, from the Land
Acquisition account and the Forest Legacy program within the State and
Private Forestry account.]
Funds appropriated to the Forest Service shall be available for
assistance to or through the Agency for International Development and
the Foreign Agricultural Service in connection with forest and rangeland
research, technical information, and assistance in foreign countries,
and shall be available to support forestry and related natural resource
activities outside the United States and its territories and
possessions, including technical assistance, education and training, and
cooperation with United States and international organizations.
[None of the funds made available to the Forest Service under this
Act shall be subject to transfer under the provisions of section 702(b)
of the Department of Agriculture Organic Act of 1944 (7 U.S.C. 2257) or
7 U.S.C. 147b.]
[Not less than $20,000,000 of funds under section 8002 of the Farm
Security and Rural Investment Act of 2002 is hereby canceled.]
[None of the funds available to the Forest Service may be
reprogrammed without the advance approval of the House and Senate
Committees on Appropriations in accordance with the reprogramming
procedures contained in House Report 108-330.]
[Not more than $72,467,000 of the funds available to the Forest
Service shall be transferred to the Working Capital Fund of the
Department of Agriculture.]
Funds available to the Forest Service shall be available to conduct
a program of not less than $2,000,000 for high priority projects within
the scope of the approved budget which shall be carried out by the Youth
Conservation Corps.
Of the funds available to the Forest Service, $2,500 is available to
the Chief of the Forest Service for official reception and
representation expenses.
Pursuant to sections 405(b) and 410(b) of Public Law 101-593, of the
funds available to the Forest Service, [$3,300,000] up to $2,250,000 may
be advanced in a lump sum to the National Forest Foundation to aid
conservation partnership projects in support of the Forest Service
mission, without regard to when the Foundation incurs expenses, for
administrative expenses or projects on or benefitting National Forest
System lands or related to Forest Service programs: Provided, That of
the Federal funds made available to the Foundation, [$300,000 may be
used for Forest Service Centennial activities and, of the total
available to the Foundation,] no more than $350,000 shall be available
for administrative expenses: Provided further, That the Foundation shall
obtain, by the end of the period of Federal financial assistance,
private contributions to match on at least one-for-one basis funds made
available by the Forest Service: Provided further, That the Foundation
may transfer Federal funds to a non-Federal recipient for a project at
the same rate that the recipient has obtained the non-Federal matching
funds: Provided further, That authorized investments of Federal funds
held by the Foundation may be made only in interest-bearing obligations
of the United States or in obligations guaranteed as to both principal
and interest by the United States.
Pursuant to section 2(b)(2) of Public Law 98-244, up to $2,650,000
of the funds available to the Forest Service shall be available for
matching funds to the National Fish and Wildlife Foundation, as
authorized by 16 U.S.C. 3701-3709, and may be advanced in a lump sum to
aid conservation partnership projects in support of the Forest Service
mission, without regard to when expenses are incurred, for projects on
or benefitting National Forest System lands or related to Forest Service
programs: Provided, That the Foundation shall obtain, by the end of the
period of Federal financial assistance, private contributions to match
on at least one-for-one basis funds advanced by the Forest Service:
Provided further, That the Foundation may transfer Federal funds to a
non-Federal recipient for a project at the same rate that the recipient
has obtained the non-Federal matching funds.
Funds appropriated to the Forest Service shall be available for
interactions with and providing technical assistance to rural
communities for sustainable rural development purposes.

[[Page 195]]

Funds appropriated to the Forest Service shall be available for
payments to counties within the Columbia River Gorge National Scenic
Area, pursuant to sections 14(c)(1) and (2), and section 16(a)(2) of
Public Law 99-663.
Notwithstanding any other provision of law, any appropriations or
funds available to the Forest Service not to exceed $500,000 may be used
to reimburse the Office of the General Counsel (OGC), Department of
Agriculture, for travel and related expenses incurred as a result of OGC
assistance or participation requested by the Forest Service at meetings,
training sessions, management reviews, land purchase negotiations and
similar non-litigation related matters. Future budget justifications for
both the Forest Service and the Department of Agriculture should clearly
display the sums previously transferred and the requested funding
transfers.
Any appropriations or funds available to the Forest Service may be
used for necessary expenses in the event of law enforcement emergencies
as necessary to protect natural resources and public or employee
safety[: Provided, That such amounts shall not exceed $1,000,000].
[For fiscal years 2005 and 2006, the Secretary of Agriculture may
authorize the sale of excess buildings, facilities, and other properties
owned by the Forest Service and located on the Green Mountain National
Forest, the revenues of which shall be retained by the Forest Service
and available to the Secretary without further appropriation and until
expended for maintenance and rehabilitation activities on the Green
Mountain National Forest.]
For each fiscal year through 2009, the Secretary of Agriculture may
transfer or reimburse funds available to the Forest Service, not to
exceed $15,000,000, to the Secretary of the Interior or the Secretary of
Commerce to expedite conferencing and consultations as required under
section 7 of the Endangered Species Act, 16 U.S.C. 1536. The amount of
the transfer or reimbursement shall be as mutually agreed by the
Secretary of Agriculture and the Secretary of the Interior or Secretary
of Commerce, as applicable, or their designees. The amount shall in no
case exceed the actual costs of consultation and conferencing.
[Beginning on June 30, 2001 and concluding on December 31, 2005, an]
An eligible individual who is employed in any project funded under title
V of the Older American Act of 1965 (42 U.S.C. 3056 et seq.) and
administered by the Forest Service shall be considered to be a Federal
employee for purposes of chapter 171 of title 28, United States Code.
Any funds appropriated to the Forest Service may be used to meet the
non-Federal share requirement in section 502(c) of the Older American
Act of 1965 (42 U.S.C. 3056(c)(2)).
Funds available to the Forest Service in this Act may be used for
the purpose of expenses associated with primary and secondary schooling
for dependents of agency personnel stationed in Puerto Rico prior to the
date of enactment of this Act, who are subject to transfer and
reassignment to other locations in the United States, at a cost not in
excess of those authorized for the Department of Defense for the same
area, when it is determined by the Chief of the Forest Service that
public schools available in the locality are unable to provide
adequately for the education of such dependents.
[For fiscal years 2005 and 2006, the Secretary of Agriculture may
authorize the sale of excess buildings, facilities, and other properties
owned by the Forest Service and located on the Wasatch-Cache National
Forest, the revenues of which shall be retained by the Forest Service
and available to the Secretary without further appropriation and until
expended for acquisition and construction of administrative sites on the
Wasatch-Cache National Forest.] (Department of the Interior and Related
Agencies Appropriations Act, 2005.)

TITLE VII--GENERAL PROVISIONS

Sec. 701. Within the unit limit of cost fixed by law, appropriations
and authorizations made for the Department of Agriculture for the
current fiscal year under this Act shall be available for the purchase,
in addition to those specifically provided for, of not to exceed [388]
320 passenger motor vehicles, of which [388] 320 shall be for
replacement only, and for the hire of such vehicles.
Sec. 702. Funds in this Act available to the Department of
Agriculture shall be available for uniforms or allowances therefor as
authorized by law (5 U.S.C. 5901-5902).
Sec. 703. Funds appropriated by this Act shall be available for
employment pursuant to the second sentence of section 706(a) of the
Department of Agriculture Organic Act of 1944 (7 U.S.C. 2225) and 5
U.S.C. 3109.
Sec. 704. New obligational authority provided for the following
appropriation items in this Act shall remain available until expended:
Animal and Plant Health Inspection Service, the contingency fund to meet
emergency conditions, information technology infrastructure, fruit fly
program, emerging plant pests, boll weevil program, low pathogen avian
influenza program, up to [$33,197,000] $33,340,000 in animal health
monitoring and surveillance for the animal identification system, up to
[$3,000,000] $8,123,000 in the emergency management systems program for
the vaccine bank, up to $1,000,000 for wildlife services methods
development, up to $1,000,000 of the wildlife services operations
program for aviation safety, and up to 25 percent of the screwworm
program; Food Safety and Inspection Service, field automation and
information management project; [Cooperative State Research, Education,
and Extension Service, funds for competitive research grants (7 U.S.C.
450i(b)), funds for the Research, Education, and Economics Information
System, and funds for the Native American Institutions Endowment Fund;]
Farm Service Agency, salaries and expenses funds made available to
county committees; Foreign Agricultural Service, middle-income country
training program, and up to $1,565,000 of the Foreign Agricultural
Service appropriation solely for the purpose of offsetting fluctuations
in international currency exchange rates, subject to documentation by
the Foreign Agricultural Service.
Sec. 705. The Secretary of Agriculture may transfer unobligated
balances of discretionary funds appropriated by this Act or other
available unobligated discretionary balances of the Department of
Agriculture to the Working Capital Fund for the acquisition of plant and
capital equipment necessary for the delivery of financial,
administrative, and information technology services of primary benefit
to the agencies of the Department of Agriculture: Provided, That none of
the funds made available by this Act or any other Act shall be
transferred to the Working Capital Fund without the prior approval of
the agency administrator: Provided further, That none of the funds
transferred to the Working Capital Fund pursuant to this section shall
be available for obligation without the prior approval of the Committees
on Appropriations of both Houses of Congress.
Sec. 706. No part of any appropriation contained in this Act shall
remain available for obligation beyond the current fiscal year unless
expressly so provided herein.
Sec. 707. Not to exceed $50,000 of the appropriations available to
the Department of Agriculture in this Act shall be available to provide
appropriate orientation and language training pursuant to section 606C
of the Act of August 28, 1954 (7 U.S.C. 1766b).
Sec. 708. No funds appropriated by this Act may be used to pay
negotiated indirect cost rates on cooperative agreements or similar
arrangements between the United States Department of Agriculture and
nonprofit institutions in excess of 10 percent of the total direct cost
of the agreement when the purpose of such cooperative arrangements is to
carry out programs of mutual interest between the two parties. This does
not preclude appropriate payment of indirect costs on grants and
contracts with such institutions when such indirect costs are computed
on a similar basis for all agencies for which appropriations are
provided in this Act.
Sec. 709. None of the funds in this Act shall be available to
restrict the authority of the Commodity Credit Corporation to lease
space for its own use or to lease space on behalf of other agencies of
the Department of Agriculture when such space will be jointly occupied.
[Sec. 710. None of the funds in this Act shall be available to pay
indirect costs charged against competitive agricultural research,
education, or extension grant awards issued by the Cooperative State
Research, Education, and Extension Service that exceed 20 percent of
total Federal funds provided under each award: Provided, That
notwithstanding section 1462 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310), funds
provided by this Act for grants awarded competitively by the Cooperative
State Research, Education, and Extension Service shall be available to
pay full allowable indirect costs for each grant awarded under section 9
of the Small Business Act (15 U.S.C. 638).]
Sec. [711] 710. Notwithstanding any other provision of this Act, all
loan levels provided in this Act shall be considered estimates, not
limitations.
Sec. [712] 711. Appropriations to the Department of Agriculture for
the cost of direct and guaranteed loans made available in the current
fiscal year shall remain available until expended to cover obligations
made in the current fiscal year for the following accounts: the Rural
Development Loan Fund program account, the Rural Telephone Bank program
account, the Rural Electrification and Tele

[[Page 196]]

communication Loans program account, and the Rural Housing Insurance
Fund program account.
[Sec. 713. None of the funds in this Act may be used to retire more
than 5 percent of the Class A stock of the Rural Telephone Bank or to
maintain any account or subaccount within the accounting records of the
Rural Telephone Bank the creation of which has not specifically been
authorized by statute: Provided, That notwithstanding any other
provision of law, none of the funds appropriated or otherwise made
available in this Act may be used to transfer to the Treasury or to the
Federal Financing Bank any unobligated balance of the Rural Telephone
Bank telephone liquidating account which is in excess of current
requirements and such balance shall receive interest as set forth for
financial accounts in section 505(c) of the Federal Credit Reform Act of
1990.]
[Sec. 714. Of the funds made available by this Act, not more than
$1,800,000 shall be used to cover necessary expenses of activities
related to all advisory committees, panels, commissions, and task forces
of the Department of Agriculture, except for panels used to comply with
negotiated rule makings and panels used to evaluate competitively
awarded grants.]
Sec. [715] 712. None of the funds appropriated by this Act may be
used to carry out section 410 of the Federal Meat Inspection Act (21
U.S.C. 679a) or section 30 of the Poultry Products Inspection Act (21
U.S.C. 471).
[Sec. 716. No employee of the Department of Agriculture may be
detailed or assigned from an agency or office funded by this Act 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.]
[Sec. 717. None of the funds appropriated or otherwise made
available to the Department of Agriculture shall be used to transmit or
otherwise make available to any non-Department of Agriculture employee
questions or responses to questions that are a result of information
requested for the appropriations hearing process.]
Sec. [718] 713. None of the funds made available to the Department
of Agriculture by this Act may be used to acquire new information
technology systems or significant upgrades, as determined by the Office
of the Chief Information Officer, without the approval of the Chief
Information Officer and the concurrence of the Executive Information
Technology Investment Review Board: Provided, That notwithstanding any
other provision of law, none of the funds appropriated or otherwise made
available by this Act may be transferred to the Office of the Chief
Information Officer [without the] unless prior [approval of the]
notification has been transmitted to the Committees on Appropriations of
both Houses of Congress[: Provided further, That none of the funds
available to the Department of Agriculture for information technology
shall be obligated for projects over $25,000 prior to receipt of written
approval by the Chief Information Officer].
[Sec. 719. (a) None of the funds provided by this Act, or provided
by previous Appropriations Acts to the agencies funded by this Act that
remain available for obligation or expenditure in the current fiscal
year, or provided from any accounts in the Treasury of the United States
derived by the collection of fees available to the agencies funded by
this Act, shall be available for obligation or expenditure through a
reprogramming of funds which: (1) creates new programs; (2) eliminates a
program, project, or activity; (3) increases funds or personnel by any
means for any project or activity for which funds have been denied or
restricted; (4) relocates an office or employees; (5) reorganizes
offices, programs, or activities; or (6) contracts out or privatizes any
functions or activities presently performed by Federal employees; unless
the Committees on Appropriations of both Houses of Congress are notified
15 days in advance of such reprogramming of funds.
(b) None of the funds provided by this Act, or provided by previous
Appropriations Acts to the agencies funded by this Act that remain
available for obligation or expenditure in the current fiscal year, or
provided from any accounts in the Treasury of the United States derived
by the collection of fees available to the agencies funded by this Act,
shall be available for obligation or expenditure for activities,
programs, or projects through a reprogramming of funds in excess of
$500,000 or 10 percent, whichever is less, that: (1) augments existing
programs, projects, or activities; (2) reduces by 10 percent funding for
any existing program, project, or activity, or numbers of personnel by
10 percent as approved by Congress; or (3) results from any general
savings from a reduction in personnel which would result in a change in
existing programs, activities, or projects as approved by Congress;
unless the Committees on Appropriations of both Houses of Congress are
notified 15 days in advance of such reprogramming of funds.
(c) The Secretary of Agriculture, the Secretary of Health and Human
Services, or the Chairman of the Commodity Futures Trading Commission
shall notify the Committees on Appropriations of both Houses of Congress
before implementing a program or activity not carried out during the
previous fiscal year unless the program or activity is funded by this
Act or specifically funded by any other Act.]
[Sec. 720. With the exception of funds needed to administer and
conduct oversight of grants awarded and obligations incurred in prior
fiscal years, none of the funds appropriated or otherwise made available
by this or any other Act may be used to pay the salaries and expenses of
personnel to carry out the provisions of section 401 of Public Law 105-
185, the Initiative for Future Agriculture and Food Systems (7 U.S.C.
7621).]
[Sec. 721. None of the funds appropriated by this or any other Act
shall be used to pay the salaries and expenses of personnel who prepare
or submit appropriations language as part of the President's Budget
submission to the Congress of the United States for programs under the
jurisdiction of the Appropriations Subcommittees on Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies that
assumes revenues or reflects a reduction from the previous year due to
user fees proposals that have not been enacted into law prior to the
submission of the Budget unless such Budget submission identifies which
additional spending reductions should occur in the event the user fees
proposals are not enacted prior to the date of the convening of a
committee of conference for the fiscal year 2006 appropriations Act.]
[Sec. 722. None of the funds made available by this or any other Act
may be used to close or relocate a State Rural Development office unless
or until cost effectiveness and enhancement of program delivery have
been determined.]
[Sec. 723. In addition to amounts otherwise appropriated or made
available by this Act, $2,500,000 is appropriated for the purpose of
providing Bill Emerson and Mickey Leland Hunger Fellowships, through the
Congressional Hunger Center.]
Sec. [724] 714. Notwithstanding section 412 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1736f), any
balances available to carry out title III of such Act as of the date of
enactment of this Act, and any recoveries and reimbursements that become
available to carry out title III of such Act, may be used to carry out
title II of such Act.
[Sec. 725. Section 375(e)(6)(B) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008j(e)(6)(B)) is amended by striking
``$26,998,000'' and inserting ``$27,998,000''.]
[Sec. 726. (a) None of the funds appropriated or otherwise made
available by this Act shall be used to pay the salaries and expenses of
personnel to collect from the lender at the time of issuance a guarantee
fee of less than 2 percent of the principal obligation of guaranteed
single-family housing loans administered by the Rural Housing Service:
Provided, That this section shall not apply to loans made to refinance
other single-family housing loans administered by the Rural Housing
Service.
(b) Section 502(h)(6)(C) of the Housing Act of 1949 (42 U.S.C.
1472(h)(6)(C)) is amended by inserting ``, plus the guarantee fee as
authorized by subsection (h)(7)'' after ``whichever is less'', in each
of paragraphs (i) and (ii).]
[Sec. 727. Notwithstanding any other provision of law, and until
receipt of the decennial Census in the year 2010, the Secretary of
Agriculture shall consider--
(1) the City of Salinas, California; the City of Watsonville,
California; and the City of Hollister, California, eligible for
programs administered by the Rural Housing Service;
(2) the Town of Horseshoe Beach, Florida; the City of
Wewahitchka, Florida; the City of Southport, Florida; the City of
Resota Beach, Florida; the City of Creedmoor, North Carolina; the
County of Lake, Florida; the City of St. Cloud, Florida; the City of
Plantation, Florida; the Cleburne County Water Authority of Alabama;
and the City of Coburg, Oregon, eligible for loans and grants funded
through the rural utilities programs in the Rural Community
Advancement Program account;
(3) the City of Casa Grande, Arizona, a rural area for purposes
of eligibility for loans and grants provided through the Rural
Housing Insurance Fund Program account, the Rural Housing Assistance
Grants account and the rural utilities programs in the Rural
Community Advancement Program account;

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(4) the City of Coachella, California, eligible for loans and
grants funded through the rural utilities programs and rural
business and cooperative development programs in the Rural Community
Advancement Program account and the Rural Housing Insurance Fund
Program account;
(5) the City of Springfield, Ohio; the City of Lexington,
Virginia; the City of Clarksdale, Mississippi; the City of
Vicksburg, Mississippi; the City of Cache, Oklahoma; and the City of
Elgin, Oklahoma, eligible for loans and grants funded through the
rural community programs in the Rural Community Advancement Program
account;
(6) the City of Carbondale, Illinois, a rural area for purposes
of eligibility for loans and grants funded through the Rural Housing
Insurance Fund Program account and the Rural Housing Assistance
Grants account;
(7) the City of St. Joseph, Missouri, eligible for loans and
grants funded through the rural business and cooperative development
programs in the Rural Community Advancement Program account relating
to an application submitted to the Department by a farmer-owned
cooperative, a majority of whose members reside in a rural area, as
determined by the Secretary, and for the purchase and operation of a
facility beneficial to the purpose of the cooperative; and
(8) the fiber-to-premises broadband facilities in St. Lucie
County, Florida, and the City of Port St. Lucie, Florida,
collectively, to meet the eligibility requirements for loans and
loan guarantees under section 601 of the Rural Electrification Act
of 1936 (7 U.S.C. 950bb).]
[Sec. 728. Of any shipments of commodities made pursuant to section
416(b) of the Agricultural Act of 1949 (7 U.S.C. 1431(b)), the Secretary
of Agriculture shall, to the extent practicable, direct that tonnage
equal in value to not more than $25,000,000 shall be made available to
foreign countries to assist in mitigating the effects of the Human
Immunodeficiency Virus and Acquired Immune Deficiency Syndrome on
communities, including the provision of--
(1) agricultural commodities to--
(A) individuals with Human Immunodeficiency Virus or
Acquired Immune Deficiency Syndrome in the communities; and
(B) households in the communities, particularly
individuals caring for orphaned children; and
(2) agricultural commodities monetized to provide other
assistance (including assistance under microcredit and
microenterprise programs) to create or restore sustainable
livelihoods among individuals in the communities, particularly
individuals caring for orphaned children.]
[Sec. 729. Notwithstanding any other provision of law, the Natural
Resources Conservation Service shall provide financial and technical
assistance to the DuPage County, Illinois, Kress Creek Water Quality
Enhancement Project, from funds available for the Watershed and Flood
Prevention Operations program, not to exceed $1,000,000 and Rockhouse
Creek Watershed, Leslie County, Kentucky, not to exceed $1,000,000.]
[Sec. 730. Notwithstanding any other provision of law, the Natural
Resources Conservation Service may provide financial and technical
assistance through the Watershed and Flood Prevention Operations program
for the Kuhn Bayou project in Arkansas, the Matanuska River erosion
control project in Alaska, the DuPage County watershed project in
Illinois, and the Coal Creek project in Utah.]
[Sec. 731. None of the funds made available in this Act may be
transferred to any department, agency, or instrumentality of the United
States Government, except pursuant to a transfer made by, or transfer
authority provided in, this or any other appropriation Act.]
Sec. [732] 715. Notwithstanding any other provision of law, of the
funds made available in this Act for competitive research grants (7
U.S.C. 450i(b)), the Secretary may use up to [20] 30 percent of the
amount provided to carry out a competitive grants program under the same
terms and conditions as those provided in section 401 of the
Agricultural Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7621).
[Sec. 733. None of the funds appropriated or made available by this
or any other Act may be used to pay the salaries and expenses of
personnel to carry out section 14(h)(1) of the Watershed Protection and
Flood Prevention Act (16 U.S.C. 1012(h)(1)).]
[Sec. 734. None of the funds made available to the Food and Drug
Administration by this Act shall be used to close or relocate, or to
plan to close or relocate, the Food and Drug Administration Division of
Pharmaceutical Analysis in St. Louis, Missouri, outside the city or
county limits of St. Louis, Missouri.]
[Sec. 735. None of the funds appropriated or made available by this
or any other Act may be used to pay the salaries and expenses of
personnel to carry out subtitle I of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2009dd through dd-7).]
Sec. [736] 716. Agencies and offices of the Department of
Agriculture may utilize any unobligated salaries and expenses funds to
reimburse the Office of the General Counsel for salaries and expenses of
personnel, and for other related expenses, incurred in representing such
agencies and offices in the resolution of complaints by employees or
applicants for employment, and in cases and other matters pending before
the Equal Employment Opportunity Commission, the Federal Labor Relations
Authority, or the Merit Systems Protection Board with the prior approval
of the Committees on Appropriations of both Houses of Congress.
[Sec. 737. None of the funds appropriated or made available by this
or any other Act may be used to pay the salaries and expenses of
personnel to carry out section 6405 of Public Law 107-171 (7 U.S.C.
2655).]
[Sec. 738. The Agricultural Marketing Service and the Grain
Inspection, Packers and Stockyards Administration, that have statutory
authority to purchase interest bearing investments outside of the
Treasury, are not required to establish obligations and outlays for
those investments, provided those investments are insured by the Federal
Deposit Insurance Corporation or are collateralized at the Federal
Reserve with securities approved by the Federal Reserve, operating under
the guidelines of the United States Department of the Treasury.]
[Sec. 739. Of the funds made available under section 27(a) of the
Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), the Secretary may use up
to $10,000,000 for costs associated with the distribution of
commodities.]
[Sec. 740. None of the funds appropriated or otherwise made
available by this or any other Act shall be used to pay the salaries and
expenses of personnel to enroll in excess of 154,500 acres in the
calendar year 2005 wetlands reserve program as authorized by 16 U.S.C.
3837.]
[Sec. 741. None of the funds appropriated or otherwise made
available by this or any other Act shall be used to pay the salaries and
expenses of personnel who carry out an environmental quality incentives
program authorized by chapter 4 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3839aa et seq.) in excess of
$1,017,000,000.]
[Sec. 742. Hereafter, the Secretary of Agriculture is authorized to
permit employees of the United States Department of Agriculture to carry
and use firearms for personal protection while conducting field work in
remote locations in the performance of their official duties.]
[Sec. 743. None of the funds appropriated or otherwise made
available by this or any other Act shall be used to pay the salaries and
expenses of personnel to expend the $23,000,000 made available by
section 9006(f) of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8106(f)).]
[Sec. 744. With the exception of funds provided in fiscal year 2003,
none of the funds appropriated or otherwise made available by this or
any other Act shall be used to pay the salaries and expenses of
personnel to expend the $40,000,000 made available by section
601(j)(1)(A) of the Rural Electrification Act of 1936 (7 U.S.C.
950bb(j)(1)(A)).]
[Sec. 745. None of the funds made available in fiscal year 2005 or
preceding fiscal years for programs authorized under the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.) in
excess of $20,000,000 shall be used to reimburse the Commodity Credit
Corporation for the release of eligible commodities under section
302(f)(2)(A) of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 1736f-
1): Provided, That any such funds made available to reimburse the
Commodity Credit Corporation shall only be used pursuant to section
302(b)(2)(B)(i) of the Bill Emerson Humanitarian Trust Act.]
[Sec. 746. None of the funds appropriated or otherwise made
available by this or any other Act shall be used to pay the salaries and
expenses of personnel to expend the $80,000,000 made available by
section 6401(a) of Public Law 107-171.]
[Sec. 747. Notwithstanding subsections (c) and (e)(2) of section
313A of the Rural Electrification Act (7 U.S.C. 940c(c) and (e)(2)) in
implementing section 313A of that Act, the Secretary shall, with the
consent of the lender, structure the schedule for payment of

[[Page 198]]

the annual fee, not to exceed an average of 30 basis points per year for
the term of the loan, to ensure that sufficient funds are available to
pay the subsidy costs for note guarantees under that section.]
[Sec. 748. Notwithstanding any other provision of law, the Natural
Resources Conservation Service may provide from appropriated funds
financial and technical assistance to the Dry Creek project, Utah.]
[Sec. 749. None of the funds appropriated or otherwise made
available by this or any other Act shall be used to pay the salaries and
expenses of personnel to carry out a Conservation Security Program
authorized by 16 U.S.C. 3838 et seq., in excess of $202,411,000.]
[Sec. 750. None of the funds appropriated or otherwise made
available by this or any other Act shall be used to pay the salaries and
expenses of personnel to carry out section 2502 of Public Law 107-171 in
excess of $47,000,000.]
[Sec. 751. None of the funds appropriated or otherwise made
available by this or any other Act shall be used to pay the salaries and
expenses of personnel to carry out section 2503 of Public Law 107-171 in
excess of $112,000,000.]
[Sec. 752. The Secretary of Agriculture shall use $30,000,000 of the
funds of the Commodity Credit Corporation, to remain available until
expended, to compensate commercial citrus and lime growers in the State
of Florida for tree replacement and for lost production with respect to
trees removed to control citrus canker, and with respect to certified
citrus nursery stocks within the citrus canker quarantine areas, as
determined by the Secretary. For a grower to receive assistance for a
tree under this section, the tree must have been removed after September
30, 2001.]
[Sec. 753. Not more than $10,000,000 for fiscal year 2005 of the
funds appropriated or otherwise made available by this or any other Act
shall be used to carry out section 6029 of Public Law 107-171.]
[Sec. 754. None of the funds appropriated or otherwise made
available in this Act shall be expended to violate Public Law 105-264.]
[Sec. 755. None of the funds appropriated or otherwise made
available by this or any other Act shall be used to pay the salaries and
expenses of personnel to carry out a ground and surface water
conservation program authorized by section 2301 of Public Law 107-171 in
excess of $51,000,000.]
[Sec. 756. None of the funds made available by this Act may be used
to issue a final rule in furtherance of, or otherwise implement, the
proposed rule on cost-sharing for animal and plant health emergency
programs of the Animal and Plant Health Inspection Service published on
July 8, 2003 (Docket No. 02-062-1; 68 Fed. Reg. 40541).]
[Sec. 757. None of the funds made available in this Act may be used
to study, complete a study of, or enter into a contract with a private
party to carry out, without specific authorization in a subsequent Act
of Congress, a competitive sourcing activity of the Secretary of
Agriculture, including support personnel of the Department of
Agriculture, relating to rural development or farm loan programs.]
Sec. [758] 717. Notwithstanding any other provision of law, the
Secretary of Agriculture may use appropriations available to the
Secretary for activities authorized under sections 426-426c of title 7,
United States Code, under this or any other Act, to enter into
cooperative agreements, with a State, political subdivision, or agency
thereof, a public or private agency, organization, or any other person,
to lease aircraft if the Secretary determines that the objectives of the
agreement will: (1) serve a mutual interest of the parties to the
agreement in carrying out the programs administered by the Animal and
Plant Health Inspection Service, Wildlife Services; and (2) all parties
will contribute resources to the accomplishment of these objectives;
award of a cooperative agreement authorized by the Secretary may be made
for an initial term not to exceed 5 years.
[Sec. 759. There is hereby appropriated $1,491,000, to remain
available until September 30, 2006, to carry out section 6028 of Public
Law 107-171: Provided, That notwithstanding section 383B(g)(1) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009bb-1(g)(1)),
the Federal share of the administrative expenses of the Northern Great
Plains Regional Authority for fiscal year 2005 shall be 100 percent.]
[Sec. 760. None of the funds appropriated or otherwise made
available by this or any other Act shall be used to pay the salaries and
expenses of personnel to carry out section 9010 of Public Law 107-171 in
excess of $100,000,000.]
[Sec. 761. (a) The matter under the heading ``Rural Community
Advancement Program'' in division A--Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Programs
Appropriations, 2004, title III--Rural Development Programs, in Public
Law 108-199 is amended by striking ``$1,750,000 shall be for grants to
the Delta Regional Authority (7 U.S.C. 1921 et seq.); and not less than
$2,000,000 shall be available for grants in accordance with section
310B(f) of the Consolidated Farm and Rural Development Act'' and
inserting ``and not less than $2,000,000 shall be available for grants
in accordance with section 310B(f) of the Consolidated Farm and Rural
Development Act: Provided further, That of the total amount appropriated
in this account, $1,750,000 shall be for grants to the Delta Regional
Authority (7 U.S.C. 1921 et seq.) for any Rural Community Advancement
Program purpose''.
(b) Consistent with any legal commitments made by the Delta Regional
Authority, at the request of the Authority and if the Secretary of
Agriculture agrees, the Secretary may deobligate any unexpended Rural
Community Advancement Program grant funds made to the Authority pursuant
to division A of Public Law 108-7: Provided, That such reobligated funds
are used by the Authority for projects that are consistent with the
purposes of the Rural Housing Service Community Facilities Program.]
[Sec. 762. Of the unobligated balances available in the Rural
Housing Assistance Grant Program account, $1,000,000 is hereby
rescinded.]
Sec. [763] 718. Agencies and offices of the Department of
Agriculture may utilize any available discretionary funds to cover the
costs of preparing, or contracting for the preparation of, final agency
decisions regarding complaints of discrimination in employment or
program activities arising within such agencies and offices.
[Sec. 764. Of the unobligated balances available in the Rural
Housing Insurance Fund Program account, $3,000,000 is hereby rescinded.]
[Sec. 765. Notwithstanding any other provision of law, for any
fiscal year and hereafter, in the case of a high cost isolated rural
area in Alaska that is not connected to a road system, the maximum level
for the single family housing assistance shall be 150 percent of the
average income level in the metropolitan areas of the State and 115
percent of all other eligible areas of the State.]
Sec. [766] 719. Funds made available under section 1240I and section
1241(a) of the Food Security Act of 1985 in [fiscal years 2002, 2003,
2004, and 2005] the current fiscal year shall remain available until
expended to cover obligations made in [fiscal years 2002, 2003, 2004,
and 2005, respectively] the current fiscal year, and are not available
for new obligations.
[Sec. 767. There is hereby appropriated $1,500,000, to remain
available until expended, for the Denali Commission to address
deficiencies in solid waste disposal sites which threaten to contaminate
rural drinking water supplies.]
[Sec. 768. Notwithstanding any other provision of law--
(1)(A) the Alaska Department of Community and Economic
Development shall be eligible to receive a water and waste disposal
grant under section 306(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)) in an amount that is equal to not
more than 75 percent of the total cost of providing water and sewer
service to the proposed hospital in the Matanuska-Susitna Borough,
Alaska; and
(B) the Alaska Department of Community and Economic Development
shall be allowed to pass the grant funds through to the local
government entity that will provide water and sewer service to the
hospital;
(2) or any percentage of cost limitation in current law or
regulations, the construction projects known as the Tri-Valley
Community Center addition in Healy, Alaska; the Cold Climate Housing
Research Center in Fairbanks, Alaska; and the University of Alaska-
Fairbanks Allied Health Learning Center skill labs/classrooms shall
be eligible to receive Community Facilities grants in amounts that
are equal to not more than 75 percent of the total facility costs:
Provided, That for the purposes of this paragraph, the Cold Climate
Housing Research Center is designated an ``essential community
facility'' for rural Alaska;
(3) the Secretary shall consider the City of Guymon, Oklahoma;
the City of Shawnee, Oklahoma; the Village of New Miami, Ohio; the
City of Vicksburg, Mississippi; and the City of Altus, Oklahoma, to
be eligible for loans and grants provided through the Rural Housing
Insurance Fund until receipt of the decennial Census in the year
2010;
(4) grants made under section 306(a)(19) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1926(a)(19)) using funds
made available under this Act for the cities of Ellisville

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and Waynesboro, Mississippi, shall be made without a non-Federal
cost share requirement;
(5) the City of Great Falls, Montana, shall be considered a
rural area for purposes of eligibility for business and industry
guaranteed loans under section 310B(a)(1) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1932(a)(1)) until receipt of the
decennial Census in the year 2010;
(6) the Secretary may consider the Piedmont Municipal Power
Agency of South Carolina eligible to participate in programs
administered by the Rural Utilities Service until receipt of the
decennial Census in the year 2010; and
(7) until receipt of the decennial Census for the year 2010, for
all activities under programs of the Rural Development Mission Area
within the County of Honolulu, Hawaii, the Secretary may designate
any portion of the county as a rural area or eligible rural
community that the Secretary determines is not urban in character:
Provided, That the Secretary shall not include in any such rural
area or eligible rural community any area included in the Honolulu
Census Designated Place as determined by the Secretary of Commerce.]
[Sec. 769. Section 501 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1737) is amended--
(1) in subsection (b)(1), by inserting ``and Doug Bereuter''
after ``John Ogonowski''; and
(2) in the heading, by inserting ``and Doug Bereuter'' after
``John Ogonowski''.]
[Sec. 770. Notwithstanding the provisions of the Consolidated Farm
and Rural Development Act (including the associated regulations)
governing the Community Facilities Program, the Secretary may allow all
Community Facility Program facility borrowers and grantees to enter into
contracts with not-for-profit third parties for services consistent with
the requirements of the Program, grant, and/or loan: Provided, That the
contracts protect the interests of the Government regarding cost,
liability, maintenance, and administrative fees.]
[Sec. 771. Notwithstanding any other provision of law, the Secretary
of Agriculture is authorized to make funding and other assistance
available through the emergency watershed protection program under
section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203) to
repair and prevent damage to non-Federal land in watersheds that have
been impaired by fires initiated by the Federal Government and shall
waive cost sharing requirements for the funding and assistance.]
[Sec. 772. None of the funds made available in this Act may be used
to provide credits or credit guarantees for agricultural commodities
provided for use in Iraq in violation of subsection (e) or (f) of
section 202 of the Agricultural Trade Act of 1978 (7 U.S.C. 5622).]
[Sec. 773. None of the funds provided in this Act may be used for
salaries and expenses to carry out any regulation or rule insofar as it
would make ineligible for enrollment in the conservation reserve program
established under subchapter B of chapter 1 of subtitle D of title XII
of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) land that is
planted to hardwood trees as of the date of enactment of this Act and
was enrolled in the conservation reserve program under a contract that
expired prior to calendar year 2002.]
[Sec. 774. None of the funds made available in this Act may be used
to restrict to prescription use a contraceptive that is determined to be
safe and effective for use without the supervision of a practitioner
licensed by law to administer prescription drugs under section 503(b) of
the Federal Food, Drug, and Cosmetic Act.]
[Sec. 775. Of the unobligated balances in the Local Television Loan
Guarantee Program account, $88,000,000 are hereby rescinded.]
[Sec. 776. Privacy Protection of Certain Sellers of Farm Products.
Section 1324(c) of the Food Security Act of 1985 (7 U.S.C. 1631(c)) is
amended--
(1) in subsection (c)--
(A) in paragraph (2)(C)(ii)(II), by inserting ``, or
other approved unique identifier,'' after both ``social
security number'' and ``identification number'';
(B) in paragraph (4)(C)(iii), by inserting ``, or other
approved unique identifier,'' after both ``social security
number'' and ``identification number''; and
(C) by adding the following at the end:
``(5) The term `approved unique identifier' means a number,
combination of numbers and letters, or other identifier selected by
the Secretary of State using a selection system or method approved
by the Secretary of Agriculture.'';
(2) in subsection (e)(1)(A)(ii)(III), by inserting ``, or other
approved unique identifier,'' after both ``social security number''
and ``identification number''; and
(3) in subsection (g)(2)(A)(ii)(III), by inserting ``, or other
approved unique identifier,'' after both ``social security number''
and ``identification number''.]
[Sec. 777. Section 532 of the Equity in Educational Land Grant
Status Act of 1994 (7 U.S.C. 301 note; Public Law 193-382) is amended--
(1) by redesignating paragraphs (23) through (32) as paragraphs
(24) through (33), respectively; and
(2) by inserting after paragraph (22) the following: ``(23)
Tohono O`odham Community College.''.]
[Sec. 778. Of the unobligated balances of funds in the Agricultural
Conservation Program account, $3,500,000 are hereby rescinded.]
[Sec. 779. Notwithstanding any other provision of law, the amounts
made available to the Dakota Value Capture Cooperative under section 747
of the Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2002 (Public Law 107-76; 115 Stat.
738) shall remain available until expended for a project conducted by
the Dakota Value Capture Cooperative at South Dakota State University.]
Sec. [780] 720. None of the funds made available under this Act
shall be available to pay the administrative expenses of a State agency
that, after the date of enactment of this Act, authorizes any new for-
profit vendor(s) to transact food instruments under the Special
Supplemental Nutrition Program for Women, Infants, and Children if it is
expected that more than 50 percent of the annual revenue of the vendor
from the sale of food items will be derived from the sale of
supplemental foods that are obtained with WIC food instruments, except
that the Secretary may approve the authorization of such a vendor if the
approval is necessary to assure participant access to program benefits.
[Sec. 781. Of the unobligated balances under section 32 of the Act
of August 24, 1935, $163,000,000 are hereby rescinded.]
[Sec. 782. Of the unobligated balances available to the Foreign
Agricultural Service for the Public Law 480 Title I Program at the
beginning of fiscal year 2005, $191,108,000 are hereby rescinded:
Provided, That for purposes of determining the amount of funds available
for transfer under section 412(b) of Public Law 83-480, as amended, the
maximum amount of funds available for transfer shall be calculated based
upon the total funds available prior to this rescission.]
[Sec. 783. The Secretary of Agriculture may use any unobligated
carryover funds made available for any program administered by the Rural
Utilities Service (not including funds made available under the heading
``Rural Community Advancement Program'' in any Act of appropriation) to
carry out section 315 of the Rural Electrification Act of 1936 (7 U.S.C.
940e).]
[Sec. 784. None of the funds made available by this or any other Act
may be used to reduce the mission, resources, staffing, facilities, or
capabilities of the Wildlife Habitat Management Institute in Mississippi
as in existence on December 17, 2003.]
[Sec. 785. Livestock Assistance. (a) In General.--In carrying out a
livestock assistance, compensation, or feed program, the Secretary of
Agriculture shall include elk, reindeer, and bison within the definition
of ``livestock'' covered by the program.
(b) Conforming Amendments.--
(1) Section 602(2) of the Agricultural Act of 1949 (7 U.S.C.
1471(2)) is amended by inserting ``elk, reindeer, bison,'' after
``cattle,''.
(2) Section 10104 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 1472) is amended--
(A) by redesignating subsections (a) through (d) as
subsections (b) through (e), respectively; and
(B) by inserting before subsection (b) (as so
redesignated) the following:
``(a) Definition of Livestock.--In this section, the term
`livestock' includes elk, reindeer, and bison.''.
(3) Section 203(d) of the Agricultural Assistance Act of 2003
(Public Law 108-7; 117 Stat. 541) is amended--
(A) by redesignating paragraph (2) as paragraph (3); and
(B) by inserting after paragraph (1) the following:
``(2) Livestock.--The term `livestock' includes elk, reindeer,
and bison.''. ]
[Sec. 786. There is hereby appropriated $1,000,000, to remain
available until expended, to carry out provisions of section 751 of
division A of Public Law 108-7.]

[[Page 200]]

[Sec. 787. There is hereby appropriated $500,000 for a grant to
Alaska Village Initiatives for the purpose of administering a private
lands wildlife management program in Alaska.]
[Sec. 788. Technical Corrections. (a) Section 104(b)(1) of the Child
Nutrition and WIC Reauthorization Act of 2004 (Public Law 108-265) is
amended by striking the closing quotation marks and the following period
at the end of section 9(b)(5)(A)(iv) of the Richard B. Russell National
School Lunch Act (as added by that section 104(b)(1) of Public Law 108-
265).
(b) Section 13(a)(10) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1761(a)(10)) (as added by section 116(d) of Public
Law 108-265) is amended--
(1) in subparagraph (C), by striking ``2005'' and inserting
``2006''; and
(2) in subparagraph (D)--
(A) in clause (i), by striking ``2007'' and inserting
``2008''; and
(B) in clause (ii), by striking ``2008'' and inserting
``2009''.
(c) Section 21(e)(2)(A) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1769b-1(e)(2)(A)) (as amended by section
125(c)(2)(B) of Public Law 108-265) is amended by inserting ``and''
after ``2005''.
(d) Section 17(f)(1)(C)(i) of the Child Nutrition Act of 1966 (42
U.S.C. 1786(f)(1)(C)(i) (as amended by section 203(e)(10)(B) of Public
Law 108-265) is amended by striking the period after ``subsection
(h)(11)''.
(e) Section 17(h)(8)(A)(vi) of the Child Nutrition Act of 1966 (42
U.S.C. 1786(h)(8)(A)(vi) (as added by section 203(e)(5) of Public Law
108-265) is amended by striking ``Each State'' and inserting ``Effective
beginning October 1, 2004, each State''.
(f) Section 502(b) of the Child Nutrition and WIC Reauthorization
Act of 2004 (Public Law 108-265) is amended--
(1) in paragraph (2), by striking ``203(e)(5),''; and
(2) in paragraph (4), by striking ``104'' and inserting ``104
(other than section 104(a)(1))''.]
[Sec. 789. Section 104 of chapter 1 of the Emergency Supplemental
Appropriations for Hurricane Disasters Assistance Act, 2005, Public Law
108-324, is amended by adding ``and tropical storms'' after
``hurricanes''.]
[Sec. 790. There is hereby appropriated $1,000,000, to remain
available until expended, for a grant to the Ohio Livestock Expo Center
in Springfield, Ohio.]
[Sec. 791. There is hereby appropriated $1,000,000, to remain
available until expended, for a grant to the Virginia Horse Center in
Lexington, Virginia.]
[Sec. 792. Notwithstanding any other provision of law, unobligated
funding balances in the Great Plains Conservation Program authorized
under section 16(b) of the Soil Conservation and Domestic Allotment Act
(16 U.S.C. 590p(b)); the Forestry Incentives Program authorized by
section 4 and section 6 of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2103); The Water Bank Program authorized by The Water
Bank Act of 1970 (Public Law 91-559); and funding for the John's Creek,
TN Watershed and Flood Prevention Operations project are hereby
rescinded.]
[Sec. 793. There is hereby appropriated $2,250,000, to remain
available until expended, for a grant to the Wisconsin Federation of
Cooperatives for pilot Wisconsin-Minnesota health care cooperative
purchasing alliances.]
[Sec. 794. (a) Section 1240B of the Food Security Act of 1985, 16
U.S.C. 3839 aa-2, is amended at the end by adding the following:
``(h) Funding for Federally Recognized Native American Indian Tribes
and Alaska Native Corporations.--The Secretary may enter into
alternative funding arrangements with federally recognized Native
American Indian Tribes and Alaska Native Corporations (including their
affiliated membership organizations) if the Secretary determines that
the goals and objectives of the program will be met by such
arrangements, and that statutory limitations regarding contracts with
individual producers as defined under this Subtitle will not be exceeded
by any Tribal or Native Corporation member.''.
(b) Section 1240G of the Food Security Act of 1985, 16 U.S.C.
3839aa-7, is amended by inserting after ``2007,'' the following:
``(excluding funding arrangements with federally recognized Native
American Indian Tribes or Alaska Native Corporations under section
1240B(h))''.]
[Sec. 795. There is hereby appropriated $6,000,000, to remain
available until expended, for a grant to the Florida Department of
Citrus.]
[Sec. 796 Notwithstanding any other provision of law, effective with
funds made available in fiscal year 2004 to States administering the
Child and Adult Care Food Program, for the purpose of conducting audits
of participating institutions, funds identified by the Secretary as
having been unused during the initial fiscal year of availability may be
recovered and reallocated by the Secretary: Provided, That States may
use the reallocated funds until expended for the purpose of conducting
audits of participating institutions.]
[Sec. 797. Section 1238Q of the Food Security Act of 1985 is
amended--
(1) in subsection (a), by striking ``permit'' and inserting
``transfer title of ownership to an easement under this subchapter
to''; and
(2) by striking subsection (d) and inserting the following new
subsection:
``(d) Transfer of Title of Ownership of Easement.--Reversion--If a
private organization or State agency holding an easement on land under
this subchapter dissolves or fails to enforce the terms of the easement,
the easement shall revert to the Secretary.''.]
Sec. 721. None of the funds appropriated or otherwise made available
by this or any other Act shall be used to pay the salaries and expenses
of personnel to carry out the following:
(a) an Environmental Quality Incentives Program authorized by 16
U.S.C. 3839aa, et seq., in excess of $1,000,000,000. Funds exceeding
this amount for fiscal year 2006 are hereby permanently cancelled;
(b) a Wildlife Habitat Incentives Program authorized by 16 U.S.C.
3839bb, et seq., in excess of $60,000,000. Funds exceeding this amount
for fiscal year 2006 are hereby permanently cancelled;
(c) a Conservation Security Program authorized by 16 U.S.C. 3838, et
seq., in excess of $273,900,000. Funds exceeding this amount for fiscal
year 2006 are hereby permanently cancelled;
(d) a Rural Strategic Investment Program authorized by section 6030
of Public Law 107-171. $100,000,000 of the funds available under such
section are hereby permanently cancelled;
(e) a Rural Business Investment Investment Program authorized by
section 6029 of Public Law 107-171. $89,000,000 of the funds available
under such section are hereby permanently cancelled;
(f) a small Watershed Rehabilitation Program authorized by 16 U.S.C.
1012(h)(1). $210,000,000 of the funds available under such section for
fiscal year 2006 are hereby permanently cancelled;
(g) a Rural Firefigher Grant Program authorized by section 6405 of
Public Law 107-171. Funds available under such section for fiscal year
2006 are hereby permanently cancelled;
(h) a Broadband program authorized by 7 U.S.C. 950bb. Under this
section, of the funds available under subsection j(1)(A) and funds for
fiscal year 2006 under subsection j(1)(B), $50,000,000 are hereby
permanently cancelled;
(i) a Value-added Grant Program authorized by 7 U.S.C. 1621 note.
$120,000,000 of the funds available under such section for fiscal year
2006 are hereby permanently cancelled;
(j) a Bioenergy Program authorized by section 9010 of Public Law
107-171, in excess of $60,000,000. Funds exceeding this amount for
fiscal year 2006 are hereby permanently cancelled;
(k) a Market-access Program authorized by 7 U.S.C. 5641(c), in
excess of $125,000,000. Funds exceeding this amount for fiscal year 2006
are hereby permanently cancelled;
(l) a Farmland Protection Program authorized by 16 U.S.C. 3838h, in
excess of $83,500,000. Funds exceeding this amount for fiscal year 2006
are hereby permanently cancelled;
(m) the Initiative for Future Agriculture and Food Systems
authorized by 7 U.S.C. 7621, except for funds needed to administer and
conduct oversight of grants awarded and obligations incurred in prior
fiscal years. $299,925,000 of the funds available under such section for
fiscal year 2006 are hereby permanently cancelled;
(n) an Agricultural Management Assistance Program for the Natural
Resources Conservation Service as authorized by section 524 of the
Federal Crop Insurance Act (7 U.S.C. 1524). $14,000,000 of the funds
available for fiscal year 2006 are hereby permanently cancelled;
(o) a Biomass Research and Development Program authorized by Public
Law 106-224 (7 U.S.C. 7624 note) in excess of $12,000,000. Funds
exceeding this amount for fiscal year 2006 are hereby permanently
cancelled; and
(p) a Renewable Energy Systems and Energy Efficiency Improvements
Program authorized by section 9006 of Public Law 107-171. $23,000,000 of
the funds available under such section for fiscal year 2006 are hereby
permanently cancelled.
Sec. 722. There is hereby appropriated $3,600,000 to carry out
section 515(j)(2) of the Federal Crop Insurance Act (7 U.S.C.
1515(j)(2)).

[[Page 201]]

Sec. 723. Section 442 of Public Law 106-224 is amended by adding the
following new subsections at the end:
``(c) Preconditions for a Transfer Availability.--Funds may be
transferred to combat emergencies.''
``(d) Definitions.--For purposes of this section, as an
``emergency'' is an unanticipated event that requires a necessary
expenditure that is sudden, urgent, and unforeseen''.
Sec. 724. Section 10417 of Public Law is amended by adding the
following subsections at the end:
``(d) Preconditions for a Transfer Availability.--Funds may be
transferred to combat emergencies.''
``(e) Definitions.--For purposes of this section, an ``emergency''
is an unanticipated event that requires a necessary expenditure that is
sudden, urgent, and unforeseen.''
Sec. 725. Notwithstanding 40 U.S.C. 524, 571, and 572, the Secretary
of Agriculture may sell the US Water Conservation Laboratory, Phoenix,
Arizona, and the Western Cotton Research Center, Phoenix, Arizona, and
credit the net proceeds such sales as offsetting collections to its
Agriculture Buildings and Facilities account. Such funds shall be
available until September 30, 2007 to be used to replace these
facilities and to improve other USDA-owned facilities. (Agriculture,
Rural Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2005.)

[GENERAL PROVISIONS--THIS CHAPTER]

[Sec. 101. Agricultural Disaster Assistance.
(a) Crop Disaster Assistance.--
(1) Definitions.--In this subsection:
(A) Additional coverage.--The term ``additional
coverage'' has the meaning given the term in section
502(b)(1) of the Federal Crop Insurance Act (7 U.S.C.
1502(b)(1)).
(B) Insurable commodity.--The term ``insurable
commodity'' means an agricultural commodity (excluding
livestock) for which the producers on a farm are eligible to
obtain a policy or plan of insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.).
(C) Noninsurable commodity.--The term ``noninsurable
commodity'' means an eligible crop for which the producers
on a farm are eligible to obtain assistance under section
196 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7333).
(2) Emergency financial assistance.--Notwithstanding section
508(b)(7) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(7)),
the Secretary of Agriculture shall use such sums as are necessary of
funds of the Commodity Credit Corporation to make emergency
financial assistance authorized under this subsection available to
producers on a farm (other than producers of cottonseed or sugar
cane) that have incurred qualifying crop or quality losses for the
2003, 2004, or 2005 crop (as elected by a producer), but limited to
only one of the crop years listed, due to damaging weather or
related condition, as determined by the Secretary: Provided, That
qualifying crop losses for the 2005 crop are limited to only those
losses caused by a hurricane or tropical storm of the 2004 hurricane
season in counties declared disaster areas by the President of the
United States: Provided further, That notwithstanding the crop year
election limitation in this paragraph, $53,000,000 shall be provided
to the Secretary of Agriculture, of which $50,000,000 shall be for
crop losses in the Commonwealth of Virginia, and of which $3,000,000
shall be for fruit and vegetable losses in the State of North
Carolina: Provided further, That these losses resulted from
hurricanes, tropical storms, and other weather related disasters
that occurred during calendar year 2003, to remain available until
expended.
(3) Administration.--The Secretary shall make assistance
available under this subsection in the same manner as provided under
section 815 of the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2001
(Public Law 106-387; 114 Stat. 1549A-55), including using the same
loss thresholds for the quantity and quality losses as were used in
administering that section.
(4) Ineligibility for assistance.--Except as provided in
paragraph (5), the producers on a farm shall not be eligible for
assistance under this subsection with respect to losses to an
insurable commodity or noninsurable commodity if the producers on
the farm--
(A) in the case of an insurable commodity, did not
obtain a policy or plan of insurance for the insurable
commodity under the Federal Crop Insurance Act (7 U.S.C.
1501 et seq.) for the crop incurring the losses;
(B) in the case of a noninsurable commodity, did not
file the required paperwork, and pay the administrative fee
by the applicable State filing deadline, for the
noninsurable commodity under section 196 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7333) for the crop incurring the losses;
(C) had adjusted gross incomes, as defined by section
1001D of the Food Security Act of 1985, of greater than
$2,500,000 in 2003; or
(D) were not in compliance with highly erodible land
conservation and wetland conservation provisions.
(5) Contract waiver.--The Secretary may waive paragraph (4) with
respect to the producers on a farm if the producers enter into a
contract with the Secretary under which the producers agree--
(A) in the case of an insurable commodity, to obtain a
policy or plan of insurance under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.) providing additional coverage
for the insurable commodity for each of the next 2 crops;
and
(B) in the case of a noninsurable commodity, to file the
required paperwork and pay the administrative fee by the
applicable State filing deadline, for the noninsurable
commodity for each of the next 2 crops under section 196 of
the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7333).
(6) Effect of violation.--In the event of the violation of a
contract under paragraph (5) by a producer, the producer shall
reimburse the Secretary for the full amount of the assistance
provided to the producer under this subsection.
(7) Payment limitations.--
(A) Limit on amount of assistance.--Assistance provided
under this subsection to a producer for losses to a crop,
together with the amounts specified in subparagraph (B)
applicable to the same crop, may not exceed 95 percent of
what the value of the crop would have been in the absence of
the losses, as estimated by the Secretary.
(B) Other payments.--In applying the limitation in
subparagraph (A), the Secretary shall include the following:
(i) Any crop insurance payment made under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.) or payment under section 196 of the Federal
Agricultural Improvement and Reform Act of 1996 (7 U.S.C. 7333) that the
producer receives for losses to the same crop.
(ii) The value of the crop that was not lost (if any), as estimated
by the Secretary.
(C) Effect of florida disaster programs.--Persons that
received payments from section 32 of the Act of August 24,
1935 with respect to 2004 hurricane crop losses are not
eligible for payments under this subsection.
(b) Livestock Assistance Program.--
(1) Emergency financial assistance.--The Secretary of
Agriculture shall use such sums as are necessary of funds of the
Commodity Credit Corporation to make and administer payments for
livestock losses to producers for 2003 or 2004 losses (as elected by
a producer), but not both, in a county that has received an
emergency designation by the President or the Secretary after
January 1, 2003, of which an amount determined by the Secretary
shall be made available for the American Indian livestock program
under section 806 of the Agriculture, Rural Development, Food and
Drug Administration, and Related Agencies Appropriations Act, 2001
(Public Law 106-387; 114 Stat. 1549A-51).
(2) Administration.--The Secretary shall make assistance
available under this subsection in the same manner as provided under
section 806 of the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2001
(Public Law 106-387; 114 Stat. 1549A-51).
(3) Mitigation.--In determining the eligibility for or amount of
payments for which a producer is eligible under the livestock
assistance program, the Secretary shall not penalize a producer that
takes actions (recognizing disaster conditions) that reduce the
average number of livestock the producer owned for grazing during
the production year for which assistance is being provided.
(c) Tree Assistance Program.--
(1) Emergency assistance.--The Secretary of Agriculture shall
use such sums as are necessary of the funds of the Commodity

[[Page 202]]

Credit Corporation to provide assistance under the tree assistance
program established under sections 10201 through 10204 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 8201 et seq.) to
producers who suffered tree losses during the period beginning on
December 1, 2003, and ending on December 31, 2004.
(2) Additional assistance.--In addition to providing assistance
to eligible orchardists under the tree assistance program, the
Secretary shall use an additional $15,000,000 of the funds of the
Commodity Credit Corporation to provide reimbursement under sections
10203 and 10204 of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 8203, 8204) to eligible forest land owners who
produce periodic crops of timber from trees for commercial purposes
and who have suffered tree losses during the period specified in
paragraph (1).
(3) Effect of florida disaster programs.--Persons that received
payments from section 32 of the Act of August 24, 1935 with respect
to 2004 hurricane crop losses are not eligible for payments under
this section.
(d) Emergency Conservation Program.--The Secretary of Agriculture
shall use an additional $50,000,000 of the funds of the Commodity Credit
Corporation to provide assistance under the Emergency Conservation
Program under title IV of the Agriculture Credit Act of 1978 (16 U.S.C.
2201 et seq.).
(e) Offset.--Section 1241(a)(3) of the Food Security Act of 1985 (16
U.S.C. 3841(a)(3)) is amended by inserting before the period at the end
the following: ``, using not more than $6,037,000,000 for the period of
fiscal years 2005 through 2014''.
(f) That for purposes of the budget scoring guidance in effect for
the Congress and the Executive branch respectively, and notwithstanding
the Budget Scorekeeping Guidelines set forth in the joint explanatory
statement of the committee of conference accompanying Conference Report
105-217, any savings from subsection (e) shall not be scored until
fiscal year 2008.
(g) The issuance of regulations shall be made without regard to: (1)
the notice and comment provisions of section 553 of title 5, United
States Code; (2) the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of
proposed rulemaking and public participation in rulemaking; and (3)
chapter 35 of title 44, United States Code (commonly known as the
``Paperwork Reduction Act''): Provided, That in carrying out this
section, the Secretary shall use the authority provided under section
808 of title 5, United States Code.]
[Sec. 102. The Secretary of Agriculture shall use $40,000,000, of
which, $7,200,000 shall be provided to the State of Hawaii for
assistance to an agricultural transportation cooperative in Hawaii, the
members of which are eligible to participate in the Farm Service Agency
administered Commodity Loan Program, and of which $32,800,000 shall be
to make payments to processors in Florida that are eligible to obtain a
loan under section 156(a) of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7272(a)) to compensate first processors and
producers for crop and other losses that are related to hurricanes,
tropical storms, excessive rains, and floods in Florida during calendar
year 2004, to be calculated and paid on the basis of losses on 40 acre
harvesting units, in counties declared a disaster by the President of
the United States in 2004 due to hurricanes, on the same terms and
conditions, to the extent practicable, as the payments made under
section 207 of the Agricultural Assistance Act of 2003 (Public Law 108-
7).]
[Sec. 103. The Secretary of Agriculture shall use $10,000,000 to
make payments to dairy producers for dairy production losses, and dairy
spoilage losses in counties declared a disaster by the President of the
United States in 2004 due to hurricanes.]
[Sec. 104. The Secretary of Agriculture shall use $10,000,000 to
provide assistance to producers and first handlers of the 2004 crop of
cottonseed located in counties declared a disaster by the President of
the United States in 2004 due to hurricanes.]
[Sec. 105. (a) The Secretary shall use the funds, facilities, and
authorities of the Commodity Credit Corporation to carry out section
101, 102, 103, 104, 108, 109, 110, and 111 of this chapter, to remain
available until expended.
(b) The amounts provided under sections 101, 102, 103, 104, 108,
109, 110, and 111 in this chapter are designated as an emergency
requirement pursuant to section 402 of S. Con. Res. 95 (108th Congress),
as made applicable to the House of Representatives by H. Res. 649 (108th
Congress) and applicable to the Senate by section 14007 of Public Law
108-287.]
[Sec. 106. (a) Rural Community Advancement Program.--The communities
in Burlington and Camden Counties in New Jersey, affected by the flood
which occurred on July 12, 2004, are deemed to be rural areas during
fiscal year 2005 for purposes of subtitle E of the Consolidated Farm and
Rural Development Act. Any limitations under subtitle E of the
Consolidated Farm and Rural Development Act that are based on the income
of families shall not apply during fiscal year 2005 with respect to such
communities, or to businesses or families residing in such communities.
(b) Rural Housing Insurance Fund and Rural Housing Assistance
Grants.--The communities referred to in subsection (a) are deemed to be
rural areas during fiscal year 2005 for purposes of the direct and
guaranteed loan programs under title V of the Housing Act of 1949 and
the grant programs under sections 504, 509(c), 525, and 533 of such
title V. Any limitations under title V of the Housing Act of 1949 that
are based on the income of families shall not apply during fiscal year
2005 with respect to such communities or to families residing in such
communities.]
[Sec. 107. The Secretary of Agriculture shall provide financial and
technical assistance to repair, and if necessary, replace Hope Mills
Dam, Cumberland County, North Carolina, in accordance with the dam
safety standards of the state of North Carolina: Provided, That from
within the funds provided in this chapter for the Emergency Watershed
Protection program of the Natural Resources Conservation Service
$1,600,000 is provided for this purpose.]
[Sec. 108. The Secretary shall provide $90,000,000 to the fund
established by section 32 of the Act of August 24, 1935 (7 U.S.C. 612c),
to make payments with respect to 2004 hurricane losses.]
[Sec. 109. The Secretary, acting through the Farm Service Agency,
may use not more than $4,000,000 to cover administrative expenses
associated with the implementation of sections 101 and 102 of this
chapter.]
[Sec. 110. In addition to amounts provided in this Act for the tree
assistance program, $10,000,000 shall be made available to the Secretary
of Agriculture, to remain available until expended, to provide
assistance to eligible private forest landowners owning not more than
5,000 acres of forest crop in counties declared Presidential disaster
areas as a result of hurricane, tropical storm, or related events for
the purposes of debris removal, replanting of timber, and other such
purposes.]
[Sec. 111. In addition to amounts provided in this Act for the tree
assistance program, $8,500,000 shall be made available to the Secretary
of Agriculture, to remain available until expended, to provide
assistance under the tree assistance program established under subtitle
C of title X of the Farm Security and Rural Investment Act of 2002 to
pecan producers in counties declared a disaster by the President of the
United States who suffered tree loss or damage due to damaging weather
related to any hurricane or tropical storm of the 2004 hurricane season:
Provided, That the funds made available under this section shall also be
made available to cover costs associated with pruning, rehabilitating,
and other appropriate activities as determined by the Secretary.]
(Emergency Supplemental Appropriations for Hurricane Disasters
Assistance Act, 2005.)