[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)

----------------------------------------------------------------------------
Identification code 12-9913-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-9913-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-8203-0-7-352      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 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)

----------------------------------------------------------------------------
Identification code 12-0705-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0705-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-0014-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0014-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-0013-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0013-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

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

      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)

----------------------------------------------------------------------------
Identification code 12-4609-0-4-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4609-0-4-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-3800-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-3800-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-0120-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0120-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-0500-0-1-304      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0117-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0117-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-0150-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0150-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-0900-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0900-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-2300-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-2300-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1701-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1701-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1801-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1801-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1400-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1400-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1401-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-8214-0-7-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

----------------------------------------------------------------------------
Identification code 12-8214-0-7-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         113         113         113
---------------------------------------------------------------------------

                                


 
      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)

----------------------------------------------------------------------------
Identification code 12-1502-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1500-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1500-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-0502-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0502-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-0601-0-1-351      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1600-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1600-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1600-2-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-9971-0-7-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-9971-0-7-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-3700-0-1-554      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-3700-0-1-554      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-3700-2-1-554      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-3700-2-1-554      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-8137-0-7-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-8137-0-7-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-2400-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

----------------------------------------------------------------------------
Identification code 12-2400-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         318         338         123
---------------------------------------------------------------------------

                                

                          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)

----------------------------------------------------------------------------
Identification code 12-2400-2-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

----------------------------------------------------------------------------
Identification code 12-2400-2-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................                                 215
---------------------------------------------------------------------------

                                

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)

----------------------------------------------------------------------------
Identification code 12-4050-0-3-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4050-0-3-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-2500-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-2500-0-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-2500-2-1-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-5070-0-2-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

----------------------------------------------------------------------------
Identification code 12-5070-0-2-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          90          95          95
---------------------------------------------------------------------------

[[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)

----------------------------------------------------------------------------
Identification code 12-5209-0-2-605      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-5209-0-2-605      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-8015-0-7-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-8015-0-7-352      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-8412-0-8-351      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-2707-0-1-351      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-2707-0-1-351      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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

1





1999

Total assets

3,226

3,731

    LIABILITIES:
2105

Federal liabilities: Other

3

3

      Non-Federal liabilities:

2201

Accounts payable

112

82

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)

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

      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)

----------------------------------------------------------------------------
Identification code 12-0600-0-1-351      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0600-0-1-351      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1140-0-1-351      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1140-0-1-351      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
25.3  Other purchases of goods and 
        services from Government 
        accounts........................         259         299         317
41.0  Grants, subsidies, and 
        contributions...................         233         344         154
                                           ---------   ---------  ----------
99.9    Total new obligations...........         492         643         471
---------------------------------------------------------------------------

                                

    Agricultural Credit Insurance Fund Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4212-0-3-351      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

16

5

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)

----------------------------------------------------------------------------
Identification code 12-4213-0-3-351      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

9

7

1206

Non-Federal assets: Receivables, net

3

2

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

1501

Defaulted guaranteed loans receivable, gross

9

15

1502

Interest receivable



-2

1505

Allowance for subsidy cost (-)

-10

-12





1599

Net present value of assets related to defaulted guaranteed loans

-1

1





1999

Total assets

594

554

[[Page 108]]

    LIABILITIES:
      Federal liabilities:

2104

Resources payable to Treasury

6

3

2105

Other

55

38

      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)

----------------------------------------------------------------------------
Identification code 12-4140-0-3-351      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

18

68

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

32

28





1699

Value of assets related to direct loans

3,425

3,014

1701

Defaulted guaranteed loans, gross

11







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

9

5

2204

Liabilities for loan guarantees

8

2

2207

Other

10

6





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

    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.)

                                

                              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)

----------------------------------------------------------------------------
Identification code 12-4336-0-3-999      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

6

3

      Non-Federal assets:

1206

Receivables, net

42

439

1207

Advances and prepayments

91

35

      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

88

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

51



1802

Inventories and related properties

276

141

1803

Property, plant and equipment, net

29

48





1999

Total assets

2,721

2,822

    LIABILITIES:
      Federal liabilities:

2101

Accounts payable

1,565

1,037

2102

Interest payable

91

72

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)

----------------------------------------------------------------------------
Identification code 12-4336-0-3-999      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1336-0-1-351      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4337-0-3-351      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

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

    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.

                             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

27

27

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

22

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)

----------------------------------------------------------------------------
Identification code 12-4338-0-3-351      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
    Addendum:
      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

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

88

67

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

21

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

1



2104

Resources payable to Treasury

2,843

2,586

2207

Non-Federal liabilities: Other

39

7





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)

----------------------------------------------------------------------------
Identification code 12-3301-0-1-351      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4158-0-3-351      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

66

        Investments in US securities:
1106

Receivables, net

4

14

[[Page 120]]

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

1401

Direct loans receivable, gross

160

187

1402

Interest receivable

7

3

1405

Allowance for subsidy cost (-)

4

-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

12

5





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)

----------------------------------------------------------------------------
Identification code 12-4221-0-3-351      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

10

10

1405

Allowance for subsidy cost (-)

-7

-7





1499

Net present value of assets related to direct loans

3

3





1999

Total assets

3

3

    LIABILITIES:
2103

Federal liabilities: Debt

3

3





2999

Total liabilities

3

3





4999

Total liabilities and net position

3

3

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

                                

                           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)

----------------------------------------------------------------------------
Identification code 12-1000-0-1-302      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1000-0-1-302      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1004-0-1-302      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1004-0-1-302      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1066-0-1-301      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1066-0-1-301      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1072-0-1-301      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1072-0-1-301      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1002-0-1-301      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1002-0-1-301      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1010-0-1-302      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1010-0-1-302      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1003-0-1-271      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4177-0-3-351      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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.

    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. 

                             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

2

1





1999

Total assets

2

1

    LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

2

1





2999

Total liabilities

2

1





4999

Total liabilities and net position

2

1

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

                                

  

                               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)

----------------------------------------------------------------------------
Identification code 12-8210-0-7-302      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0403-0-1-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0403-0-1-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-0400-0-1-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1954-0-1-604      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4225-0-3-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

5

27

        Investments in US securities:
1106

Receivables, net

-2

-2

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

1401

Direct loans receivable, gross

1,290

1,424

1402

Interest receivable

17

20

1404

Foreclosed property

1

2

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

8

8





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)

----------------------------------------------------------------------------
Identification code 12-4228-0-3-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

4

6

        Investments in US securities:
1106

Receivables, net

1

15





1999

Total assets

5

21

    LIABILITIES:
      Federal liabilities:

2104

Resources payable to Treasury

2

14

2105

Other liabilities, Federal

2



2204

Non-Federal liabilities: Liabilities for loan guarantees

1

7





2999

Total liabilities

5

21





4999

Total liabilities and net position

5

21

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

                                

              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)

----------------------------------------------------------------------------
Identification code 12-2081-0-1-371      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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.

    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.

               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)

----------------------------------------------------------------------------
Identification code 12-4215-0-3-371      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

54

14

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

1401

Direct loans receivable, gross

12,144

12,451

1402

Interest receivable

53

69

1404

Foreclosed property

30

23

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

6

-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)

----------------------------------------------------------------------------
Identification code 12-4216-0-3-371      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

43

34





1999

Total assets

404

461

    LIABILITIES:
      Non-Federal liabilities:

2204

Liabilities for loan guarantees

399

440

2207

Other

5

21





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)

----------------------------------------------------------------------------
Identification code 12-4141-0-3-371      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

31

17





1699

Value of assets related to direct loans

8,273

7,530

1901

Other Federal assets: Other assets

79

85





1999

Total assets

8,705

7,855

    LIABILITIES:
      Federal liabilities:

2102

Interest payable

116

36

2103

Debt

1,830

680

2104

Resources payable to Treasury

6,692

7,055

      Non-Federal liabilities:

2203

Debt

1

1

2204

Liabilities for loan guarantees



81

2207

Other

66

2





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)

----------------------------------------------------------------------------
Identification code 12-4223-0-3-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

1

44

        Investments in US securities:
1106

Receivables, net

1



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

1401

Direct loans receivable, gross

105

89

1402

Interest receivable



7

1405

Allowance for subsidy cost (-)

-39

-78





1499

Net present value of assets related to direct loans

66

18





1999

Total assets

68

62

    LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

68

62





2999

Total liabilities

68

62





4999

Total liabilities and net position

68

62

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

                                

     Rural Business and Industry Guaranteed Loans Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4227-0-3-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

41

124

2105

Other

18

1

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)

----------------------------------------------------------------------------
Identification code 12-2069-0-1-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4219-0-3-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

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

    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.

    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

4

13

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

1401

Direct loans receivable, gross

347

359

1402

Interest receivable

2

2

1405

Allowance for subsidy cost (-)

-150

-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)

----------------------------------------------------------------------------
Identification code 12-4233-0-3-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

1

1

1206

Non-Federal assets: Receivables, net

1



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

1601

Direct loans, gross

58

55

1603

Allowance for estimated uncollectible loans and interest (-)

-29

-27





1604

Direct loans and interest receivable, net

29

28





1699

Value of assets related to direct loans

29

28





1999

Total assets

31

29

    LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

31

29





2999

Total liabilities

31

29





4999

Total liabilities and net position

31

29

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

                                

            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)

----------------------------------------------------------------------------
Identification code 12-3108-0-1-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4176-0-3-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

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

    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.

                             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

4

4

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

1401

Direct loans receivable, gross

73

75

1405

Allowance for subsidy cost (-)

-10

-8





1499

Net present value of assets related to direct loans

63

67





1999

Total assets

67

71

    LIABILITIES:
      Federal liabilities:

2104

Resources payable to Treasury

67

70

2105

Other



1





2999

Total liabilities

67

71





4999

Total liabilities and net position

67

71

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

                                

               Rural Business Investment Programs Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1907-0-1-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4033-0-3-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1908-0-1-451      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4267-0-3-451      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4226-0-3-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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



64

        Investments in US securities:
1106

Receivables, net

4

9

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

1401

Direct loans receivable, gross

5,565

6,009

1402

Interest receivable

50

65

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

23

14





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)

----------------------------------------------------------------------------
Identification code 12-4218-0-3-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

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

    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 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)

----------------------------------------------------------------------------
Identification code 12-1230-0-1-271      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1230-0-1-271      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------
25.3  Other purchases of goods and 
        services from Government 
        accounts........................          38          38          40
41.0  Grants, subsidies, and 
        contributions...................         353           5           6
                                           ---------   ---------  ----------
99.9    Total new obligations...........         391          43          46
---------------------------------------------------------------------------

                                

   Rural Electrification and Telecommunications Direct Loan Financing 
                                 Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4208-0-3-271      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

17

166

        Investments in US securities:
1106

Receivables, net

497

89

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

1401

Direct loans receivable, gross

12,413

14,675

1402

Interest receivable

198

4

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

6

19





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

28

114

        Investments in US securities:
1106

Receivables, net

59

24

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

1401

Direct loans receivable, gross

1,656

1,844

1402

Interest receivable

1

1

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

27

20





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

    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.

    This account finances loan guarantee commitments.

                                

    Rural Electrification and Telecommunications Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4230-0-3-271      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

6

28

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

33

67





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

1

9

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

3

4





2999

Total liabilities

2,241

2,278

    NET POSITION:
3300

Cumulative results of operations

11

11





3999

Total net position

11

11





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)

----------------------------------------------------------------------------
Identification code 12-1231-0-1-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4210-0-3-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

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

    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. 

                             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

11

11

        Investments in US securities:
1106

Receivables, net

5

1

      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

42

37





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)

----------------------------------------------------------------------------
Identification code 12-4231-0-3-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

56

7

1402

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

1

1

      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 (-)

11

-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

55



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)

----------------------------------------------------------------------------
Identification code 12-1232-0-1-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4146-0-3-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

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

    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.

                             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

2

7

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

1401

Direct loans receivable, gross

81

131

1402

Interest receivable

2

3





1499

Net present value of assets related to direct loans

83

134





1999

Total assets

85

141

    LIABILITIES:
2101

Federal liabilities: Accounts payable

85

141





2999

Total liabilities

85

141





4999

Total liabilities and net position

85

141

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

                                

  Distance Learning and Telemedicine Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4361-0-3-451      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4155-0-3-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

34

34

      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

26

32

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



5





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

51

14

2204

Liabilities for loan guarantees

2

5

2207

Other



7





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)

----------------------------------------------------------------------------
Identification code 12-4142-0-3-452      2004 actual   2005 est.   2006 est.
----------------------------------------------------------------------------

    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

2



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

1601

Direct loans, gross

4

3

1602

Interest receivable

1

1

1603

Allowance for estimated uncollectible loans and interest (-)

-1

-1





1604

Direct loans and interest receivable, net

4

3





1699

Value of assets related to direct loans

4

3





1999

Total assets

6

3

    LIABILITIES:
      Federal liabilities:

2102

Interest payable

1



2104

Resources payable to Treasury



3

2203

Non-Federal liabilities: Debt

5







2999

Total liabilities

6

3





4999

Total liabilities and net position

6

3

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

                                


 
                      FOREIGN AGRICULTURAL SERVICE

                              Federal Funds

General and special funds: