department of agriculture of agriculture office of the secretary federal funds production, pro...

DEPARTMENT OF AGRICULTURE

OFFICE OF THE SECRETARYFederal Funds

PRODUCTION, PROCESSING, AND MARKETING

OFFICE OF THE SECRETARY

(INCLUDING TRANSFERS OF FUNDS)

For necessary expenses of the Office of the Secretary, $42,498,000 of which notto exceed $4,850,000 shall be available for the Immediate Office of the Secretary;not to exceed $800,000 shall be available for the Office of Assistant Secretary forRural Development; not to exceed $1,448,000 shall be available for the Office ofHomeland Security; not to exceed $1,672,000 shall be available for the Office ofPartnerships and Public Engagement; not to exceed $23,376,000 shall be availablefor the Office of the Assistant Secretary for Administration, of which $22,501,000shall be available for Departmental Administration to provide for necessary expensesfor management support services to offices of the Department and for general ad-ministration, security, repairs and alterations, and other miscellaneous suppliesand expenses not otherwise provided for and necessary for the practical and efficientwork of the Department; not to exceed $3,091,000 shall be available for the Officeof Assistant Secretary for Congressional Relations to carry out the programs fundedby this Act, including programs involving intergovernmental affairs and liaisonwithin the executive branch; and not to exceed $7,261,000 shall be available forthe Office of Communications: Provided, That funds made available by this Act toan agency in the Rural Development mission area for salaries and expenses shallbe available to fund up to one administrative support staff for the Office of the As-sistant to the Secretary for Rural Development: Provided further, That funds madeavailable by this Act to the Departmental Administration area for salaries and ex-penses shall be available to fund up to one administrative support staff for the Officeof the Assistant to the Secretary for Administration: Provided further, That theSecretary of Agriculture is authorized to transfer funds appropriated for any officeof the Office of the Secretary to any other office of the Office of the Secretary:Provided further, That no appropriation for any office shall be increased or de-creased by more than 5 percent: Provided further, That not to exceed $24,000 ofthe amount made available under this paragraph for the Immediate Office of theSecretary shall be available for official reception and representation expenses, nototherwise provided for, as determined by the Secretary: Provided further, That theamount made available under this heading for Departmental Administration shallbe reimbursed from applicable appropriations in this Act for travel expenses incidentto the holding of hearings as required by 5 U.S.C. 551–558: Provided further, Thatfunds made available under this heading for the Office of the Assistant Secretaryfor Congressional Relations may be transferred to agencies of the Department ofAgriculture funded by this Act to maintain personnel at the agency level.

OFFICE OF THE ASSISTANT SECRETARY FOR CIVIL RIGHTS

For necessary expenses of the Office of the Assistant Secretary for Civil Rights,$800,000: Provided, That funds made available by this Act to an agency in the civilrights mission area for salaries and expenses shall be available to fund up to oneadministrative support staff for such Office.

OFFICE OF THE UNDER SECRETARY FOR RESEARCH, EDUCATION, AND

ECONOMICS

For necessary expenses of the Office of the Under Secretary for Research, Educa-tion, and Economics, $800,000: Provided, That funds made available by this Act toan agency in the research, education, and economics mission area for salaries andexpenses shall be available to fund up to one administrative support staff for suchOffice.

OFFICE OF THE UNDER SECRETARY FOR MARKETING AND REGULATORY

PROGRAMS

For necessary expenses of the Office of the Under Secretary for Marketing andRegulatory Programs, $800,000: Provided, That funds made available by this Actto an agency in the marketing and regulatory programs mission area for salariesand expenses shall be available to fund up to one administrative support staff forsuch Office.

OFFICE OF THE UNDER SECRETARY FOR FOOD SAFETY

For necessary expenses of the Office of the Under Secretary for Food Safety,$800,000: Provided, That funds made available by this Act to an agency in the food

safety mission area for salaries and expenses shall be available to fund up to oneadministrative support staff for such Office.

OFFICE OF THE UNDER SECRETARY FOR NATURAL RESOURCES AND

ENVIRONMENT

For necessary expenses of the Office of the Under Secretary for Natural Resourcesand Environment, $875,000: Provided, That funds made available by this Act to anagency in the natural resources and environment mission area for salaries and ex-penses shall be available to fund up to one administrative support staff for suchOffice.

OFFICE OF THE UNDER SECRETARY FOR FOOD, NUTRITION, AND CONSUMER

SERVICES

For necessary expenses of the Office of the Under Secretary for Food, Nutrition,and Consumer Services, $800,000: Provided, That funds made available by this Actto an agency in the food, nutrition, and consumer services mission area for salariesand expenses shall be available to fund up to one administrative support staff forsuch Office.

OFFICE OF THE UNDER SECRETARY FOR FARM PRODUCTION AND CONSERVATION

For necessary expenses of the Office of the Under Secretary for Farm Productionand Conservation, $875,000: Provided, That funds made available by this Act toan agency in the farm production and conservation mission area for salaries andexpenses shall be available to fund up to one administrative support staff for suchOffice.

OFFICE OF THE UNDER SECRETARY FOR TRADE AND FOREIGN AGRICULTURAL AFFAIRS

For necessary expenses of the Office of the Under Secretary for Trade and ForeignAgricultural Affairs, $875,000: Provided, That funds made available by this Act toan agency in the trade and foreign agricultural mission area for salaries and ex-penses shall be available to fund up to one administrative support staff for suchOffice.

OFFICE OF CODEX ALIMENTARIUS

For necessary expenses of the Office of Codex Alimentarius, $3,796,000.Note.—A full-year 2018 appropriation for this account was not enacted at the time the budget

was prepared; therefore, the budget assumes this account is operating under the ContinuingAppropriations Act, 2018 (Division D of P.L. 115–56, as amended). The amounts included for2018 reflect the annualized level provided by the continuing resolution.

Program and Financing (in millions of dollars)

2019 est.2018 est.2017 actualIdentification code 012–9913–0–1–999

Obligations by program activity:554Office of the Secretary ...............................................................0001

151411Under/Assistant Secretaries ......................................................0002..................................1Trade negotiations and biotechnology resources .......................0003

232225Departmental Administration ....................................................0004788Office of Communications .........................................................0005

.................11Office of Advocacy and Outreach ...............................................0006111Office of Homeland Security and Emergency Coordination ........0007

10109Outreach & Assistance for Socially Disadvantaged Farmers &

Ranchers & Veteran Farmers & Ranchers .............................0008

333Biobased Markets Program Sec 9001 ........................................00092..................................Office of Partnerships and Public Engagement .........................0010

666463Total direct obligations ..................................................................0799576168Office of the Secretary (Reimbursable) ......................................0802

123125131Total new obligations, unexpired accounts ....................................0900

Budgetary resources:Unobligated balance:

632Unobligated balance brought forward, Oct 1 .........................1000.................12Discretionary unobligated balance brought fwd, Oct 1 ......1001

1.................3Recoveries of prior year unpaid obligations ...........................1021..................................1Recoveries of prior year paid obligations ...............................1033

736Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, discretionary:535151Appropriation ....................................................................1100

Appropriations, mandatory:131313Appropriations transferred from other acct [012–4336] ....1221

..................................–1Appropriations and/or unobligated balance of

appropriations permanently reduced ............................1230

131312Appropriations, mandatory (total) .........................................1260

57

OFFICE OF THE SECRETARY—Continued

Program and Financing—Continued


Spending authority from offsetting collections, discretionary:656448Collected ...........................................................................1700

..................................21Change in uncollected payments, Federal sources ............1701

656469Spending auth from offsetting collections, disc (total) .........1750131128132Budget authority (total) .............................................................1900138131138Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................–4Unobligated balance expiring ................................................1940

1563Unexpired unobligated balance, end of year ..........................1941

Change in obligated balance:Unpaid obligations:

384138Unpaid obligations, brought forward, Oct 1 ..........................3000123125131New obligations, unexpired accounts ....................................3010

..................................2Obligations ("upward adjustments"), expired accounts ........3011–132–128–122Outlays (gross) ......................................................................3020

–1.................–3Recoveries of prior year unpaid obligations, unexpired .........3040..................................–5Recoveries of prior year unpaid obligations, expired .............3041

283841Unpaid obligations, end of year .................................................3050Uncollected payments:

–28–28–33Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060..................................–21Change in uncollected pymts, Fed sources, unexpired ..........3070..................................26Change in uncollected pymts, Fed sources, expired ..............3071

–28–28–28Uncollected pymts, Fed sources, end of year .............................3090Memorandum (non-add) entries:

10135Obligated balance, start of year ............................................3100.................1013Obligated balance, end of year ..............................................3200

Budget authority and outlays, net:Discretionary:

118115120Budget authority, gross .........................................................4000Outlays, gross:

11210994Outlays from new discretionary authority ..........................40107615Outlays from discretionary balances .................................4011

119115109Outlays, gross (total) .............................................................4020Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–65–64–58Federal sources .................................................................4030

..................................–1Non-Federal sources .........................................................4033

–65–64–59Offsets against gross budget authority and outlays (total) ....4040Additional offsets against gross budget authority only:

..................................–21Change in uncollected pymts, Fed sources, unexpired .......4050

..................................10Offsetting collections credited to expired accounts ...........4052

..................................1Recoveries of prior year paid obligations, unexpired

accounts .......................................................................4053

..................................–10Additional offsets against budget authority only (total) ........4060

535151Budget authority, net (discretionary) .........................................4070545150Outlays, net (discretionary) .......................................................4080

Mandatory:131312Budget authority, gross .........................................................4090

Outlays, gross:11112Outlays from new mandatory authority .............................41002211Outlays from mandatory balances ....................................4101

131313Outlays, gross (total) .............................................................4110666463Budget authority, net (total) ..........................................................4180676463Outlays, net (total) ........................................................................4190

The Office of the Secretary is responsible for the overall planning, co-ordination and administration of the Department's programs. This includesthe Secretary, Deputy Secretary, Under Secretaries, Assistant Secretaries,and their immediate staffs, who provide top policy guidance for the Depart-ment; maintain relationships with agricultural organizations and others inthe development of farm programs; and provide liaison with the ExecutiveOffice of the President and Members of Congress on all matters pertainingto agricultural policy.

The 2019 Budget requests $20 million for the Office of the Secretary.The Office of Homeland Security formulates emergency preparedness

policies for USDA and directs and coordinates Department activities thatsupport USDA emergency programs and liaison functions with Congress,the Department of Homeland Security, and other Federal agencies involving

homeland security, natural disasters, agriculture-related international civilemergency planning and intelligence activities. The 2019 Budget requests$1.4 million.

Departmental Administration provides staff support to policy officialsand overall direction and coordination of the Department. Activities includeDepartment-wide programs for human resources management, occupationalsafety and health management, real and personal property management,acquisitions and contracting, motor vehicle and aircraft management, supplymanagement, and participation of small and disadvantaged businesses andveterans programs. The 2019 Budget requests $22.5 million.

The Office of Communications provides leadership, expertise, and co-ordination to implement successful strategies and products that advancethe mission of the USDA while serving the public in a fair, equal, transpar-ent and accessible manner. The 2019 Budget requests $7.3 million.

In an effort to create a consistent customer-focused outreach effort, theUSDA will create an Office of Partnerships and Public Engagement bygrouping the following offices together: the Office of Advocacy and Out-reach; the Faith-Based and Neighborhood Partnerships staff; the Office ofTribal Relations; and the Military Veterans Liaison. Each office will retainits own character and identity, and continue to communicate with its coreconstituency, but this realignment will ensure a more coordinated andconsistent approach. This will result in improved service and enhancedengagement with USDA's customers. The Office of Advocacy and Outreachimproves access to USDA programs and enhances the viability and profit-ability of small farms and ranches, beginning farmers and ranchers, andsocially disadvantaged farmers and ranchers. The Office of Faith-Basedand Neighborhood Partnerships works to build bridges between the FederalGovernment and non-profit organizations, both secular and faith-based, tobetter serve Americans in need. The Office of Tribal Relations serves asthe singular point of contact for the 567 sovereign Tribal Nations in theUS on USDA programs and services. The Military Veterans Liaison willprovide information to returning veterans and provide veterans with begin-ning farmer training and agricultural vocational and rehabilitation programsappropriate to the needs and interests of returning veterans, including as-sisting veterans in using Federal veterans educational benefits for purposesrelating to a beginning farming or ranching career. The Department iscommitted to ensuring that all USDA constituents, including historicallyunder-served groups, have the opportunity to participate in and benefitfrom the programs offered by the Department. The 2019 Budget requests$1.7 million.

Object Classification (in millions of dollars)


Direct obligations:252425Personnel compensation: Full-time permanent .........................11.1977Civilian personnel benefits ........................................................12.1111Travel and transportation of persons .........................................21.0223Rental payments to GSA ............................................................23.1221Communications, utilities, and miscellaneous charges ............23.36613Other services from non-Federal sources ..................................25.2

11124Other goods and services from Federal sources ........................25.310109Grants, subsidies, and contributions ........................................41.0

666463Direct obligations ..................................................................99.0576168Reimbursable obligations .....................................................99.0

123125131Total new obligations, unexpired accounts ............................99.9

Employment Summary


219216205Direct civilian full-time equivalent employment ............................1001186200190Reimbursable civilian full-time equivalent employment ...............2001

✦

THE BUDGET FOR FISCAL YEAR 201958 Office of the Secretary—ContinuedFederal Funds—Continued

Trust Funds

GIFTS AND BEQUESTS

Special and Trust Fund Receipts (in millions of dollars)


...................................................Balance, start of year ....................................................................0100Receipts:

Current law:111Gifts and Bequests, Departmental Administration ................1130

111Total: Balances and receipts .....................................................2000Appropriations:

Current law:–1–1–1Gifts and Bequests ................................................................2101

...................................................Balance, end of year ..................................................................5099



Obligations by program activity:111Gifts and bequests ....................................................................0001

111Total new obligations (object class 99.5) ......................................0900


444Unobligated balance brought forward, Oct 1 .........................1000Budget authority:

Appropriations, mandatory:111Appropriation (special or trust fund) .................................1201555Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:444Unexpired unobligated balance, end of year ..........................1941


11.................Unpaid obligations, brought forward, Oct 1 ..........................3000111New obligations, unexpired accounts ....................................3010

–1–1.................Outlays (gross) ......................................................................3020

111Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

11.................Obligated balance, start of year ............................................3100111Obligated balance, end of year ..............................................3200

Budget authority and outlays, net:Mandatory:


11.................Outlays from new mandatory authority .............................4100111Budget authority, net (total) ..........................................................418011.................Outlays, net (total) ........................................................................4190

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

✦

EXECUTIVE OPERATIONSFederal Funds

OFFICE OF THE CHIEF ECONOMIST

For necessary expenses of the Office of the Chief Economist, $19,487,000, ofwhich $4,000,000 shall be for grants or cooperative agreements for policy researchunder 7 U.S.C. 3155.

Note.—A full-year 2018 appropriation for this account was not enacted at the time the budgetwas prepared; therefore, the budget assumes this account is operating under the ContinuingAppropriations Act, 2018 (Division D of P.L. 115–56, as amended). The amounts included for2018 reflect the annualized level provided by the continuing resolution.



Obligations by program activity:191917Office of the Chief Economist ....................................................0001

.................11Biodiesel Fuel Education Program .............................................0002

192018Total direct obligations ..................................................................0799222Office of the Chief Economist (Reimbursable) ...........................0801




Budget authority:Appropriations, discretionary:

191919Appropriation ....................................................................1100Appropriations, mandatory:

111Appropriations transferred from other acct [012–4336] ....1221Spending authority from offsetting collections, discretionary:

11.................Collected ...........................................................................1700..................................1Change in uncollected payments, Federal sources ............1701





–21–34–19Outlays (gross) ......................................................................3020




21413Obligated balance, start of year ............................................31002214Obligated balance, end of year ..............................................3200






Additional offsets against gross budget authority only:..................................–1Change in uncollected pymts, Fed sources, unexpired .......4050..................................1Offsetting collections credited to expired accounts ...........4052



Outlays, gross:11.................Outlays from new mandatory authority .............................4100

..................................1Outlays from mandatory balances ....................................4101


The Office of the Chief Economist advises the Secretary of Agricultureon the economic implications of Department policies, programs and pro-posed legislation. The Office is a focal point for USDA's economic intelli-gence and analysis; projections related to agricultural commodity markets;risk assessment and cost-benefit analysis related to domestic and interna-tional food and agriculture; policy direction for renewable energy develop-ment; coordination, analysis and advice on climate adaptation and environ-mental market activities; and coordination and review of all commodityand aggregate agricultural and food-related data used to develop outlookand situation material within the Department. The 2019 Budget requests$19.5 million for the office.

59DEPARTMENT OF AGRICULTUREExecutive Operations

Federal Funds

OFFICE OF THE CHIEF ECONOMIST—Continued



Direct obligations:977Personnel compensation: Full-time permanent .........................11.1322Civilian personnel benefits ........................................................12.17119Other services from non-Federal sources ..................................25.2



Employment Summary


646453Direct civilian full-time equivalent employment ............................1001

✦

OFFICE OF HEARINGS AND APPEALS

For necessary expenses of the Office of Hearings and Appeals, $14,183,000.Note.—A full-year 2018 appropriation for this account was not enacted at the time the budget




Obligations by program activity:141314National Appeals Division .........................................................0001

Budgetary resources:Budget authority:

Appropriations, discretionary:141314Appropriation ....................................................................1100141314Budget authority (total) .............................................................1900141314Total budgetary resources available ..............................................1930



–14–13–14Outlays (gross) ......................................................................3020







The Office of Hearings and Appeals (OHA) is responsible for conductingfirst and second-level administrative adjudications at USDA through fair,transparent, and consistent processes. Activities are carried out by threeoffices, the National Appeals Division (NAD), the Office of AdministrativeLaw Judges (OALJ), and the Office of the Judicial Officer (OJO). NADis responsible for listening to farmers and other rural program participantsconcerning their disputes with certain agencies within USDA through fairand impartial administrative hearings and appeals. OALJ and OJO (previ-ously housed in Departmental Administration) are responsible for regulatoryhearings and administrative proceedings. OHA was established in 2016with the consolidation of the three offices. The 2019 Budget requests $14.2million and reflects this realignment.



Direct obligations:989Personnel compensation: Full-time permanent .........................11.1322Civilian personnel benefits ........................................................12.1233Advisory and assistance services ..............................................25.1


Employment Summary



✦

OFFICE OF BUDGET AND PROGRAM ANALYSIS

For necessary expenses of the Office of Budget and Program Analysis, $8,631,000.Note.—A full-year 2018 appropriation for this account was not enacted at the time the budget




Obligations by program activity:999Office of Budget and Program Analysis (Direct) ........................0005


11.................Unobligated balance brought forward, Oct 1 .........................1000Budget authority:


..................................–1Appropriations transferred to other acct [012–4609] ........1120

9910Appropriation, discretionary (total) .......................................1160101010Total budgetary resources available ..............................................1930



999New obligations, unexpired accounts ....................................3010–9–9–9Outlays (gross) ......................................................................3020



999Outlays from new discretionary authority ..........................40109910Budget authority, net (total) ..........................................................4180999Outlays, net (total) ........................................................................4190

The Office of Budget and Program Analysis (OBPA) coordinates thepreparation of Departmental budget estimates, regulations, and legislativereports; administers systems for the allotment and apportionment of funds;provides analysis of USDA program issues, draft regulations, and budgetproposals; participates in strategic planning; and provides assistance toUSDA policy makers in the development and execution of desired policiesand programs. The 2019 Budget requests $8.6 million.



Direct obligations:666Personnel compensation: Full-time permanent .........................11.1222Civilian personnel benefits ........................................................12.1111Other goods and services from Federal sources ........................25.3


THE BUDGET FOR FISCAL YEAR 201960 Executive Operations—ContinuedFederal Funds—Continued

Employment Summary



✦

COMMON COMPUTING ENVIRONMENT

The Common Computing Environment provides the shared informationtechnology platform for the three Service Center Agencies (the Farm Ser-vice Agency, the Natural Resources Conservation Service, and the RuralDevelopment agencies). All remaining balances were rescinded by Section736 of the Consolidated Appropriations Act, 2016.

✦

WORKING CAPITAL FUND



Obligations by program activity:474544Administration ..........................................................................0801896Communications .......................................................................0802

402393404Finance and management .........................................................0803473444487Information technology ..............................................................0804

445Executive secretariat .................................................................0805

934895946Reimbursable program activities, subtotal ...................................08099815Capital Funding Availability ......................................................0815

43331Proceeds from Purchase Card Rebate Programs .......................0816

.................18.................Proceeds from Transfers of Discretionary Unobligated

Balances ...............................................................................0817

525916Reimbursable program activities - Purchase of Equipment (Capital),

subtotal .....................................................................................0819




Appropriations, discretionary:..................................1Appropriations transferred from other acct [012–2081] ....1121..................................1Appropriations transferred from other acct [012–1230] ....1121..................................1Appropriations transferred from other acct [012–0503] ....1121..................................15Appropriations transferred from other acct [012–1140] ....1121

..................................18Appropriation, discretionary (total) .......................................1160Spending authority from offsetting collections, discretionary:

856867978Collected ...........................................................................1700..................................52Change in uncollected payments, Federal sources ............1701

8568671,030Spending auth from offsetting collections, disc (total) .........17508568671,048Budget authority (total) .............................................................1900

1,0061,1041,199Total budgetary resources available ..............................................1930Memorandum (non-add) entries:




–900–1,015–931Outlays (gross) ......................................................................3020


–262–262–210Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060..................................–52Change in uncollected pymts, Fed sources, unexpired ..........3070




8568671,048Budget authority, gross .........................................................4000Outlays, gross:


9001,015931Outlays, gross (total) .............................................................4020

Offsets against gross budget authority and outlays:Offsetting collections (collected) from:

–856–867–967Federal sources .................................................................4030..................................–11Non-Federal sources .........................................................4033



..................................18Budget authority, net (discretionary) .........................................407044148–47Outlays, net (discretionary) .......................................................4080

..................................18Budget authority, net (total) ..........................................................418044148–47Outlays, net (total) ........................................................................4190

This fund finances, by advances or reimbursements, certain central ser-vices in the Department of Agriculture, including supply, mail, and repro-duction services; financial, procurement, and other administrative systems;telecommunications and network services; mainframe computer processingand hosting services; correspondence management services; payroll, finan-cial management, and human resources services; and video production,conferencing, design, and Web support services.



Reimbursable obligations:Personnel compensation:

135130120Full-time permanent - OCFO .................................................11.1939185Full-time permanent - OCIO ..................................................11.1201817Full-time permanent - DA OES OC .........................................11.1

..................................1Other than full-time permanent ............................................11.3775Other personnel compensation - OCFO ..................................11.5222Other personnel compensation - OCIO ...................................11.5111Other personnel compensation - DA OES OC .........................11.5

258249231Total personnel compensation ...........................................11.9504843Civilian personnel benefits OCFO ..............................................12.1323129Civilian personnel benefits OCIO ...............................................12.1766Civilian personnel benefits - DA OES OC ...................................12.1224Travel and transportation of persons OCFO ...............................21.0332Travel and transportation of persons - OCIO .............................21.0111Transportation of things - DA OES OC .......................................22.0332Rental payments to GSA - OCFO ................................................23.1444Rental payments to GSA - OCIO .................................................23.111.................Rental payments to GSA - DA OES OC .......................................23.1335Rental payments to others - OCFO ............................................23.2

..................................13Rental payments to others - OCIO .............................................23.2

995Communications, utilities, and miscellaneous charges -

OCFO .....................................................................................23.3

1008673Communications, utilities, and miscellaneous charges -

OCIO ......................................................................................23.3

332Communications, utilities, and miscellaneous charges - DA OES

OC .........................................................................................23.3

..................................2Advisory and assistance services ..............................................25.110198118Other services from non-Federal sources - OCFO ......................25.2119119147Other services from non-Federal sources - OCIO .......................25.2121314Other services from non-Federal sources - DA OES OC ..............25.2323461Other goods and services from Federal sources - OCFO ............25.3444445Other goods and services from Federal sources - OCIO .............25.39910Other goods and services from Federal sources - DA OES OC .....25.3223Operation and maintenance of facilities ...................................25.4

595941Operation and maintenance of equipment - OCFO ....................25.7695662Operation and maintenance of equipment - OCIO .....................25.7222Operation and maintenance of equipment - DA OES OC ............25.7111Supplies and materials - OCFO .................................................26.0112Supplies and materials - OCIO ..................................................26.0223Supplies and materials - DA OES OC .........................................26.0

.................14Equipment - OCFO .....................................................................31.05525Equipment - OCIO .....................................................................31.0

5259.................Equipment - Availability ............................................................31.0..................................2Land and structures ..................................................................32.0


Employment Summary


2,8642,8552,585Reimbursable civilian full-time equivalent employment ...............2001

✦

61DEPARTMENT OF AGRICULTUREExecutive Operations—Continued

Federal Funds—Continued

OFFICE OF CHIEF INFORMATION OFFICERFederal Funds

OFFICE OF THE CHIEF INFORMATION OFFICER

For necessary expenses of the Office of the Chief Information Officer, $62,524,000.Note.—A full-year 2018 appropriation for this account was not enacted at the time the budget




Obligations by program activity:352121Office of the Chief Information Officer ......................................0001282828Homeland Security ....................................................................0002

634949Total direct obligations ..................................................................0799191919Office of the Chief Information Officer (Reimbursable) .............0801









–82–85–65Outlays (gross) ......................................................................3020..................................–1Recoveries of prior year unpaid obligations, expired .............3041




.................171Obligated balance, start of year ............................................3100

..................................17Obligated balance, end of year ..............................................3200






Additional offsets against gross budget authority only:..................................–4Change in uncollected pymts, Fed sources, unexpired .......4050

17.................14Offsetting collections credited to expired accounts ...........4052

17.................10Additional offsets against budget authority only (total) ........4060

634949Budget authority, net (discretionary) .........................................4070466636Outlays, net (discretionary) .......................................................4080634949Budget authority, net (total) ..........................................................4180466636Outlays, net (total) ........................................................................4190

The Clinger-Cohen Act of 1996 required the establishment of a ChiefInformation Officer (CIO) for all major Federal agencies. The Act requiresUSDA to maximize the value of information technology acquisitions toimprove the efficiency and effectiveness of USDA programs. To meet theintent of the law and to provide a Departmental focus for information re-sources management issues, Secretary's Memorandum 1030–30, datedAugust 8, 1996, established the Office of the Chief Information Office(OCIO). The CIO serves as the primary advisor to the Secretary on Inform-

ation Technology (IT) issues. OCIO provides leadership for the Depart-ment's information and IT management activities in support of USDAprogram delivery. The 2019 Budget requests $62.5 million.



Direct obligations:151413Personnel compensation: Full-time permanent .........................11.1444Civilian personnel benefits ........................................................12.1

..................................1Rental payments to GSA ............................................................23.111.................Communications, utilities, and miscellaneous charges ............23.3

201719Other services from non-Federal sources ..................................25.2221210Other goods and services from Federal sources ........................25.3

..................................1Supplies and materials .............................................................26.0111Equipment .................................................................................31.0



Employment Summary



✦

OFFICE OF CHIEF FINANCIAL OFFICERFederal Funds

OFFICE OF THE CHIEF FINANCIAL OFFICER

For necessary expenses of the Office of the Chief Financial Officer, $5,536,000.Note.—A full-year 2018 appropriation for this account was not enacted at the time the budget




Obligations by program activity:688Office of the Chief Financial Officer (Direct) .............................0001



Appropriations, discretionary:688Appropriation ....................................................................1100799Total budgetary resources available ..............................................1930




–6–8–6Outlays (gross) ......................................................................3020







THE BUDGET FOR FISCAL YEAR 201962 Office of Chief Information OfficerFederal Funds

The Office of the Chief Financial Officer (OCFO) was established in1995 under authority provided in Reorganization Plan Number 2 of 1953(7 U.S.C. 2201) to comply with the Chief Financial Officers Act of 1990.The OCFO focuses on the Department's financial management activitiesto improve program delivery and assure maximum contribution to theSecretary's Strategic Goals. The 2019 Budget requests $5.5 million.



Direct obligations:554Personnel compensation: Full-time permanent .........................11.1134Other services from non-Federal sources ..................................25.2

688Direct obligations ..................................................................99.0


Employment Summary



✦

OFFICE OF CIVIL RIGHTSFederal Funds

OFFICE OF CIVIL RIGHTS

For necessary expenses of the Office of Civil Rights, $22,345,000.Note.—A full-year 2018 appropriation for this account was not enacted at the time the budget




Obligations by program activity:222424Office of Civil Rights (Direct) ....................................................0001566Office of Civil Rights (Reimbursable) ........................................0801



.................11Unobligated balance brought forward, Oct 1 .........................1000Budget authority:





Memorandum (non-add) entries:..................................1Unexpired unobligated balance, end of year ..........................1941







–8–33Obligated balance, start of year ............................................3100–8–8–3Obligated balance, end of year ..............................................3200


272930Budget authority, gross .........................................................4000

Outlays, gross:272924Outlays from new discretionary authority ..........................4010

.................66Outlays from discretionary balances .................................4011






The Office of Civil Rights provides overall leadership for all Department-wide civil rights activities, including employment opportunity and programnon-discrimination policy development, analysis, coordination, and com-pliance. The Office provides leadership to implement best practices thatwill create an environment where a diverse workforce is valued as a sourceof strength. The Office monitors program activities to ensure that all USDAprograms are delivered in a non-discriminatory manner. The 2019 Budgetrequests $22.3 million.



Direct obligations:121314Personnel compensation: Full-time permanent .........................11.1444Civilian personnel benefits ........................................................12.1222Rental payments to GSA ............................................................23.1111Other services from non-Federal sources ..................................25.2344Other goods and services from Federal sources ........................25.3



Employment Summary



✦

HAZARDOUS MATERIALS MANAGEMENTFederal Funds

HAZARDOUS MATERIALS MANAGEMENT


For necessary expenses of the Department of Agriculture, to comply with theComprehensive Environmental Response, Compensation, and Liability Act (42U.S.C. 9601 et seq.) and the Resource Conservation and Recovery Act (42 U.S.C.6901 et seq.), $3,463,000, to remain available until expended: Provided, That ap-propriations and funds available herein to the Department for Hazardous MaterialsManagement may be transferred to any agency of the Department for its use inmeeting all requirements pursuant to the above Acts on Federal and non-Federallands.




Obligations by program activity:345Hazardous materials management ...........................................0001

345Total new obligations, unexpired accounts (object class 25.3) .......0900

63DEPARTMENT OF AGRICULTUREHazardous Materials Management

Federal Funds

HAZARDOUS MATERIALS MANAGEMENT—Continued




..................................1Recoveries of prior year unpaid obligations ...........................1021Budget authority:




–3–14–4Outlays (gross) ......................................................................3020..................................–1Recoveries of prior year unpaid obligations, unexpired .........3040





342Outlays from new discretionary authority ..........................4010.................102Outlays from discretionary balances .................................4011


Under the Comprehensive Environmental Response, Compensation, andLiability Act and the Resource Conservation and Recovery Act, the Depart-ment must meet the same standards for environmental cleanup and regulat-ory compliance regarding hazardous wastes and hazardous substances asprivate businesses. With substantial commitments under these Acts, theHazardous Materials Management account was established as a centralfund so the Department's agencies may be reimbursed for their cleanupefforts. The Department determines what projects to fund by using objectivecriteria to identify what sites pose the greatest threats to public health,safety, and the environment. The 2019 Budget requests $3.5 million.

Employment Summary



✦

BUILDINGS AND FACILITIESFederal Funds

AGRICULTURE BUILDINGS AND FACILITIES


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 Admin-istrator of General Services to the Department of Agriculture under 40 U.S.C. 121,for programs and activities of the Department which are included in this Act, andfor alterations and other actions needed for the Department and its agencies toconsolidate unneeded space into configurations suitable for release to the Adminis-trator of General Services, and for the operation, maintenance, improvement, andrepair of Agriculture buildings and facilities, and for related costs, $58,330,000, toremain available until expended, for buildings operations and maintenance expenses.




Obligations by program activity:588365Building Operations and Maintenance ......................................0002

588365Total direct obligations ..................................................................0799

886Agriculture Buildings and Facilities and Rental Payments

(Reimbursable) .....................................................................0802



454522Unobligated balance brought forward, Oct 1 .........................1000..................................3Recoveries of prior year unpaid obligations ...........................1021





887Spending auth from offsetting collections, disc (total) .........1750669191Budget authority (total) .............................................................1900

111136116Total budgetary resources available ..............................................1930Memorandum (non-add) entries:





.................337Unpaid obligations, end of year .................................................3050Uncollected payments:



–72721Obligated balance, start of year ............................................3100–10–727Obligated balance, end of year ..............................................3200








This account finances the operations, repair, improvement and mainten-ance activities of two headquarters buildings in Washington, DC and theGeorge Washington Carver Center in Beltsville, MD. The 2019 Budgetrequests .$58.3 million for operations and maintenance.



Direct obligations:999Personnel compensation: Full-time permanent .........................11.1333Civilian personnel benefits ........................................................12.1777Communications, utilities, and miscellaneous charges ............23.3


151515Operation and maintenance of facilities ...................................25.4


THE BUDGET FOR FISCAL YEAR 201964 Hazardous Materials Management—ContinuedFederal Funds—Continued

22.................Adjustment for rounding ...........................................................99.5


Employment Summary



✦

OFFICE OF INSPECTOR GENERALFederal Funds

OFFICE OF INSPECTOR GENERAL

For necessary expenses of the Office of Inspector General, including employmentpursuant to the Inspector General Act of 1978, $87,436,000, including such sumsas may be necessary for contracting and other arrangements with public agenciesand 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 In-spector General pursuant to Public Law 95–452 and section 1337 of Public Law97–98.




Obligations by program activity:879398Office of the Inspector General ..................................................0001333Office of Inspector General (Reimbursable) ...............................0801







449Spending auth from offsetting collections, disc (total) .........175091101107Budget authority (total) .............................................................1900


..................................–2Unobligated balance expiring ................................................1940191813Unexpired unobligated balance, end of year ..........................1941


52218Unpaid obligations, brought forward, Oct 1 ..........................30009096101New obligations, unexpired accounts ....................................3010112Obligations ("upward adjustments"), expired accounts ........3011





–11612Obligated balance, start of year ............................................3100–2–116Obligated balance, end of year ..............................................3200




9211497Outlays, gross (total) .............................................................4020


–4–4–8Federal sources .................................................................4030Additional offsets against gross budget authority only:





The Office of Inspector General provides the Secretary and Congresswith information or intelligence about fraud, other serious problems, mis-management, and deficiencies in Department programs and operations,recommends corrective action, and reports on the progress made in correct-ing the problems. The Office reviews existing and proposed legislationand regulations and makes recommendations to the Secretary and Congressregarding the impact these laws have on the Department's programs andthe prevention and detection of fraud and mismanagement in such programs.The Office provides policy direction and conducts, supervises, and coordin-ates all audits and investigations. The Office supervises and coordinatesother activities in the Department and between the Department and otherFederal, State and local government agencies whose purposes are to: (a)promote economy and efficiency; (b) prevent and detect fraud and misman-agement; and (c) identify and prosecute people involved in fraud or mis-management. The 2019 Budget requests $87.4 million.



Direct obligations:475053Personnel compensation: Full-time permanent .........................11.1192122Civilian personnel benefits ........................................................12.1333Travel and transportation of persons .........................................21.0777Communications, utilities, and miscellaneous charges ............23.3556Other services from non-Federal sources ..................................25.2334Other goods and services from Federal sources ........................25.3121Supplies and materials .............................................................26.0222Equipment .................................................................................31.0



Employment Summary



✦

OFFICE OF THE GENERAL COUNSELFederal Funds

OFFICE OF THE GENERAL COUNSEL

For necessary expenses of the Office of the General Counsel, $41,717,000.

OFFICE OF ETHICS

For necessary expenses of the Office of Ethics, $2,897,000.Note.—A full-year 2018 appropriation for this account was not enacted at the time the budget




Obligations by program activity:444948Office of the General Counsel ....................................................0001554Office of the General Counsel (Reimbursable) ...........................0801


65DEPARTMENT OF AGRICULTUREOffice of the General Counsel

Federal Funds

OFFICE OF THE GENERAL COUNSEL—Continued




.................1.................Unobligated balance brought forward, Oct 1 .........................1000Budget authority:








–50–54–53Outlays (gross) ......................................................................3020













The Office of the General Counsel of the Department of Agricultureprovides legal advice, counsel, and services to the Secretary and to allagencies, offices, and corporations of the Department on all aspects of theiroperations and programs. It represents the Department in administrativeproceedings; non-litigation debt collection proceedings; State water rightsadjudications; proceedings before the Civilian Board of Contract Appeal,the Merit System Protection Board, the Equal Employment OpportunityCommission, the USDA Office of Administrative Law Judges, and otherFederal agencies; and, in conjunction with the Department of Justice, injudicial proceedings and litigation in the Federal and State courts. All attor-neys and support personnel devoted to those efforts are supervised by theGeneral Counsel. The 2019 Budget requests $41.7 million.

The Office of Ethics provides ethics advice, counsel and training to allUSDA officials and employees, and conducts annual financial disclosurereviews. The work of the Office of Ethics promotes employee compliancewith the Federal conflict of interest laws and regulations. The 2019 Budgetrequests $2.9 million.



Direct obligations:333333Personnel compensation: Full-time permanent .........................11.1899Civilian personnel benefits ........................................................12.1132Communications, utilities, and miscellaneous charges ............23.3133Other services from non-Federal sources ..................................25.2111Supplies and materials .............................................................26.0



Employment Summary


212225234Direct civilian full-time equivalent employment ............................1001131820Direct civilian full-time equivalent employment ............................1001303330Reimbursable civilian full-time equivalent employment ...............2001222Reimbursable civilian full-time equivalent employment ...............2001

✦

ECONOMIC RESEARCH SERVICEFederal Funds

ECONOMIC RESEARCH SERVICE

For necessary expenses of the Economic Research Service, $45,000,000.Note.—A full-year 2018 appropriation for this account was not enacted at the time the budget




Obligations by program activity:458687Economic Research Service .......................................................0001

.................33Economic Research Service (Reimbursable) ..............................0801



1..................................Unobligated balance brought forward, Oct 1 .........................1000Budget authority:


Spending authority from offsetting collections, discretionary:11.................Collected ...........................................................................1700

.................33Change in uncollected payments, Federal sources ............1701


Memorandum (non-add) entries:21.................Unexpired unobligated balance, end of year ..........................1941




..................................–2Recoveries of prior year unpaid obligations, expired .............3041


–12–9–12Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060.................–3–3Change in uncollected pymts, Fed sources, unexpired ..........3070..................................6Change in uncollected pymts, Fed sources, expired ..............3071





THE BUDGET FOR FISCAL YEAR 201966 Office of the General Counsel—ContinuedFederal Funds—Continued

Outlays, gross:377367Outlays from new discretionary authority ..........................4010172921Outlays from discretionary balances .................................4011



Additional offsets against gross budget authority only:.................–3–3Change in uncollected pymts, Fed sources, unexpired .......4050..................................6Offsetting collections credited to expired accounts ...........4052

.................–33Additional offsets against budget authority only (total) ........4060


The Economic Research Service (ERS) will use its FY 2019 funding forcore, recurring programs of data analysis and market outlook. Proposalsfor ERS budget priorities reflect principles based on the Agency's role asa Federal intramural research and statistical organization. The principlesidentify areas where ERS is best positioned to provide information that theprivate sector or academia has weaker incentives or higher cost to provide,and include: (1) research that builds on unique or confidential data sourcesor investments at the Federal level and is inherent in the role of a FederalStatistical Agency; (2) provides coordination for a national perspective orframework; (3) requires sustained investment and large teams; (4) directlyserves the U.S. Government's or USDA's long-term national goals and arenot likely to be understood or valued; and (5) addresses questions withshort-run payoff or that have immediate policy implications. While we alsoseek to inform decision making on the core of USDA programs at proposedfunding levels, we will focus on providing expertise in the analysis offarming and commodity markets, as well as limited information on foodmarkets and food security.

The 2019 Budget request is $45 million, a decrease of $42 million fromFY 2018. This funding level provides a framework to better streamline theDepartment's statistical functions, leverage administrative efficiencies, andfocus on core data products similar to other statistical agencies elsewherewithin the Government. ERS will continue to provide data products andstatistics for farm financial information (e.g., estimates of farm incomeand commodity costs of production), agricultural commodity markets, in-ternational trade, U.S. agricultural productivity, USDA domestic and inter-national baseline data, food availability, and the Consumer Price Index forfood. ERS would maintain its production of the national estimates of U.S.food security. This funding level also supports the ERS Commodity Outlookprogram's participation in USDA's Interagency Commodity EstimatesCommittees and recurring analyses for commodities covered by USDAFarm Act commodity programs. These activities include analysis for themonthly World Agricultural Supply and Demand Estimates (WASDE) re-ports, public release of data for feed grains and other commodities, andsupply and utilization tables for commodities that serve as critical inputsto the ERS Food Availability and Loss Data. Economists in the CommodityOutlook program will continue to support ERS leadership of modeling forUSDA's Agricultural Baseline Projections. Producing these statistics re-quires $6 million to purchase the Agricultural Resource ManagementSurvey (ARMS) data, food security data, and private sector commoditydata and intelligence. This budget level will support staff to develop thestatistics and conduct research needed to ensure the sustained ability todevelop meaningful measures of economic concepts in a dynamic farmand agricultural sector.



Direct obligations:Personnel compensation:

153535Full-time permanent .............................................................11.1111Other than full-time permanent ............................................11.3111Other personnel compensation ..............................................11.5

173737Total personnel compensation ...........................................11.951111Civilian personnel benefits ........................................................12.1111Travel and transportation of persons .........................................21.0556Rental payments to GSA ............................................................23.1111Communications, utilities, and miscellaneous charges ............23.3477Other services from non-Federal sources ..................................25.281616Other goods and services from Federal sources ........................25.3366Research and development contracts .......................................25.5111Supplies and materials .............................................................26.0

.................11Grants, subsidies, and contributions ........................................41.0

458687Direct obligations ..................................................................99.0.................33Reimbursable obligations .....................................................99.0


Employment Summary


148329330Direct civilian full-time equivalent employment ............................1001.................11Reimbursable civilian full-time equivalent employment ...............2001

✦

NATIONAL AGRICULTURAL STATISTICS SERVICEFederal Funds

NATIONAL AGRICULTURAL STATISTICS SERVICE

For necessary expenses of the National Agricultural Statistics Service,$165,000,000, of which up to $45,300,000 shall be available until expended for theCensus of Agriculture: Provided, That amounts made available for the Census ofAgriculture may be used to conduct Current Agricultural Industrial Report surveyssubject to 7 U.S.C. 2204g(d) and (f).




Obligations by program activity:111119120Agricultural estimates ...............................................................0001

999Statistical research and service ................................................0002454254Census of agriculture ................................................................0003

165170183Total direct obligations ..................................................................0799252522National Agricultural Statistics Service (Reimbursable) ...........0801



..................................12Recoveries of prior year unpaid obligations ...........................1021Budget authority:








..................................–12Recoveries of prior year unpaid obligations, unexpired .........3040

.................–17–2Recoveries of prior year unpaid obligations, expired .............3041




223244Obligated balance, start of year ............................................3100

67DEPARTMENT OF AGRICULTURENational Agricultural Statistics Service

Federal Funds

NATIONAL AGRICULTURAL STATISTICS SERVICE—Continued



212232Obligated balance, end of year ..............................................3200





Offsetting collections (collected) from:–23–23–20Federal sources .................................................................4030–2–2–2Non-Federal sources .........................................................4033





The National Agricultural Statistics Service (NASS) provides the officialNational and State estimates of acreage, yield, and production of crops,grain stocks, value and expenditures associated with farm commoditiesand inventory, values and expenditures of livestock items. Data on approx-imately 120 crops and 45 livestock products are covered in more than 450reports issued each year. In addition, the Census of Agriculture, which isconducted every five years for years ending in 2 and 7, is an in-depth pictureof America's agriculture and provides comprehensive data on the Nation'sagricultural industry down to the county level. NASS' responsibilities areauthorized under the Agricultural Marketing Act of 1946 (7 U.S.C1621–1627) and the Census of Agriculture Act of 1997, Public Law105–113 (7 U.S.C. 2204 g(d)(f)).

Agricultural Estimates.—The Agricultural Estimates program is vital forproducers, agricultural commodity markets in the U.S. and the world, policymakers in government and people involved in making planning, investment,price discovery mechanisms, and marketing decisions. Billions of dollarscould be put at risk without these essential Agricultural Estimates statisticalreports. Staff in 12 Regional offices and 33 State offices serving all 50States conduct the work to produce these commodity estimates. Cooperativearrangements with State agencies provide additional State and county data.In order to support Administration priorities and improve efficiency, NASShas carefully completed a comprehensive review of existing programs todetermine where reductions could be taken, evaluating with the followingpriorities: 1) Federal Principal Economic Indicator data; 2) data whichdirectly impact commodity markets; 3) data necessary to implement theUSDA programs which provide payments to farmers and are used to ad-minister the farm safety net for producers; and 4) data for which there areno other publicly available sources of information. In 2017, NASS achievedseveral accomplishments: 1) published the regular schedule of AgriculturalEstimates Federal Principal Economic Indicators; 2) the Fruit ChemicalUse Survey; 3) published new data on the economics of beekeeping in theannual Honey report; and 4) created the All Data Team

Census of Agriculture.—The Census of Agriculture provides the onlysource of comparable and consistent detailed data about agriculture andhelps to measure trends and new development in the agricultural sector ofour Nation's economy. The Census of Agriculture is critical because itprovides comprehensive data on the agriculture economy, land use, produc-tion expenses, value of land and buildings, farm size and characteristics offarm operators, market value of agricultural production sold, acreage ofmajor crops, inventory of livestock and poultry, and farm irrigation prac-tices. The 2019 Budget request includes a decrease to reflect the normalactivity levels related to the cyclical nature of the 5-year Census of Agri-

culture program. In 2017, NASS achieved several accomplishments: 1)published the results for the first Local Foods Survey; 2) published fourCurrent Agricultural Industrial Reports; and 3) released results of the 2015Certified Organic Survey; 4)critical IT programming and infrastructurewere enhanced and tested to improve and streamline statistical activitiesand 5) developed a modern, responsive web form for data collection.

The 2019 total request is $165 million for NASS, including $119.7 millionfor Agricultural Estimates to: 1) conduct the essential Federal PrincipalEconomic Indicator surveys; and 2) conduct other Core Integrated Surveysand Estimates to support USDA programs.

The 2019 NASS request includes $45.3 million for the Census of Agri-culture. NASS will: 1) Start planning and preparing for the FY 2022 Censusof Agriculture; 2) conduct the Farm and Ranch Irrigation Survey; 3) datasummarizations, publication and review, products dissemination and follow-on surveys; and 4) publish data for the 2017 Census of Agriculture.

Miscellaneous funds received from local organizations, commoditygroups, and others are available for dissemination of reports and for surveywork conducted under cooperative agreements (7 U.S.C. 450b, 450h,3318b). NASS also provides technical consultation, support, and assistancefor international programs under participating agency service agreements.





787776Total personnel compensation ...........................................11.9282726Civilian personnel benefits ........................................................12.1222Travel and transportation of persons .........................................21.0111Transportation of things ............................................................22.0767Rental payments to GSA ............................................................23.1111Communications, utilities, and miscellaneous charges ............23.3

383844Other services from non-Federal sources ..................................25.251320Other goods and services from Federal sources ........................25.3111Operation and maintenance of equipment ................................25.7111Supplies and materials .............................................................26.0334Equipment .................................................................................31.0



Employment Summary



✦

AGRICULTURAL RESEARCH SERVICEFederal Funds

SALARIES AND EXPENSES

For necessary expenses of the Agricultural Research Service and for acquisitionof 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 shallbe equalized by a payment of money to the grantor which shall not exceed 25 percentof the total value of the land or interests transferred out of Federal ownership,$1,018,991,000, of which $10,600,000, to remain available until expended, shallbe used to carry out the science program at the National Bio- and Agro-defenseFacility located in Manhattan, Kansas: Provided, That appropriations hereundershall be available for the operation and maintenance of aircraft and the purchaseof not to exceed one for replacement only: Provided further, That appropriationshereunder shall be available pursuant to 7 U.S.C. 2250 for the construction, altera-tion, and repair of buildings and improvements, but unless otherwise provided, thecost of constructing any one building shall not exceed $500,000, except for head-houses or greenhouses which shall each be limited to $1,500,000, except for 10buildings to be constructed or improved at a cost not to exceed $1,100,000 each,

THE BUDGET FOR FISCAL YEAR 201968 National Agricultural Statistics Service—ContinuedFederal Funds—Continued

and except for two buildings to be constructed at a cost not to exceed $3,000,000each, and the cost of altering any one building during the fiscal year shall not exceed10 percent of the current replacement value of the building or $500,000, whicheveris greater: Provided further, That the limitations on alterations contained in thisAct shall not apply to modernization or replacement of existing facilities at Beltsville,Maryland: Provided further, That appropriations hereunder shall be available forgranting easements at the Beltsville Agricultural Research Center: Provided further,That the foregoing limitations shall not apply to replacement of buildings neededto carry out the Act of April 24, 1948 (21 U.S.C. 113a): Provided further, That ap-propriations hereunder shall be available for granting easements at any AgriculturalResearch Service location for the construction of a research facility by a non-Fed-eral entity for use by, and acceptable to, the Agricultural Research Service and acondition of the easements shall be that upon completion the facility shall be acceptedby the Secretary, subject to the availability of funds herein, if the Secretary findsthat acceptance of the facility is in the interest of the United States: 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 orresearch project of the Agricultural Research Service, as authorized by law.




..................................6Balance, start of year ....................................................................0100

..................................–6Reconciliation adjustment .............................................................0198

...................................................Balance, start of year ................................................................0199

...................................................Total: Balances and receipts .....................................................2000




Obligations by program activity:65101102Product quality/value added .....................................................0001748989Livestock production .................................................................0002

205224226Crop production .........................................................................000387101101Food safety ................................................................................0004167374Livestock protection ..................................................................0005

148187189Crop protection ..........................................................................0006448787Human nutrition research .........................................................0007

194216218Environmental stewardship .......................................................0008222424National Agricultural Library .....................................................0009202020Repair and maintenance of facilities ........................................0010914040Homeland security .....................................................................001253..................................National Bio-Agro Defense Facility ............................................0013

.................30.................Miscellaneous Fees/Supplementals ...........................................0014

1,0191,1921,170Total direct obligations ..................................................................0799156142142Salaries and Expenses (Reimbursable) .....................................0881

156142142Reimbursable program activities, subtotal ...................................0889

1,1751,3341,312Total new obligations, unexpired accounts ....................................0900



Appropriations, discretionary:1,0191,1621,170Appropriation ....................................................................1100



156142158Spending auth from offsetting collections, disc (total) .........17501,1751,3041,328Budget authority (total) .............................................................19001,1751,3341,343Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................–1Unobligated balance expiring ................................................1940..................................30Unexpired unobligated balance, end of year ..........................1941


356479460Unpaid obligations, brought forward, Oct 1 ..........................30001,1751,3341,312New obligations, unexpired accounts ....................................3010

..................................27Obligations ("upward adjustments"), expired accounts ........3011

–1,194–1,457–1,283Outlays (gross) ......................................................................3020..................................–37Recoveries of prior year unpaid obligations, expired .............3041






1,1751,3041,328Budget authority, gross .........................................................4000Outlays, gross:


1,1941,4571,283Outlays, gross (total) .............................................................4020Offsets against gross budget authority and outlays:






1,0191,1621,170Budget authority, net (discretionary) .........................................40701,0381,3151,148Outlays, net (discretionary) .......................................................40801,0191,1621,170Budget authority, net (total) ..........................................................41801,0381,3151,148Outlays, net (total) ........................................................................4190

The Agricultural Research Service (ARS) is the principal in-house re-search agency of the U.S. Department of Agriculture (USDA). ARS con-ducts scientific research to develop and transfer solutions to agriculturalproblems of high national priority and to provide information access anddissemination to: ensure high-quality, safe food, and other agriculturalproducts; assess the nutritional needs of Americans; sustain a competitiveagricultural economy; enhance the natural resource base and the environ-ment; and provide economic opportunities for rural citizens, communities,and society as a whole. This mission is carried out through ARS' majorresearch program areas and other activities listed below (in italics).

The major research programs in ARS address and support the Depart-ment's priorities and are: New Products/Product Quality/Value Added;Environmental Stewardship; Livestock/Crop Production; Livestock/CropProtection; Food Safety; and Human Nutrition.

The 2019 Salaries and Expenses budget for ARS requests $1.019 billion,which supports ongoing intramural research conducted by ARS. The Budgetalso proposes to transfer operational responsibility for the National Bioand Agro-Defense Facility (NBAF) from the Department of HomelandSecurity to USDA and requests $42 million within this account for opera-tions costs in 2019. Once construction is complete, USDA would operatethe NBAF and use the facility to study diseases that threaten the animalagricultural industry and public health. The Budget also includes proposedterminations of projects and closures of labs and research units.

New Products/Product Quality/Value Added.—ARS has active researchprograms directed toward improving the efficiency and reducing the costfor the conversion of agricultural products into biobased products andbiofuels; developing new and improved products for domestic and foreignmarkets; and providing higher quality, healthy foods that satisfy consumerneeds in the United States and abroad.

Environmental Stewardship.— The emphasis of ARS' environmentalstewardship research programs is on developing technologies and systemsthat support sustainable production and enhance the Nation's vast renewablenatural resource base. ARS is currently developing the scientific knowledgeand technologies needed to meet the challenges and opportunities facingU.S. agriculture in managing water resource quality and quantity underdifferent climatic regimes, production systems, and environmental condi-

69DEPARTMENT OF AGRICULTUREAgricultural Research Service—Continued


SALARIES AND EXPENSES—Continued

tions. ARS' research also focuses on developing measurement, prediction,and control technologies for emissions of greenhouse gases, particulatematter, ammonia, hydrogen sulfide, and volatile organic compounds affect-ing air quality and land surface climate interactions. The agency is a leaderin developing measurement and modeling techniques for characterizinggaseous and particulate matter emissions from agriculture. In addition,ARS is evaluating strategies for enhancing the health and productivity ofsoils, including developing predictive tools to assess the sustainability ofalternative land management practices. Finding mechanisms to aid agricul-ture in adapting to changes in atmospheric composition and climatic vari-ations is also an important component of this program. ARS' range andgrazing land research objectives include the conservation and restorationof the Nation's range land and pasture ecosystems and agroecosystemsthrough improved management of fire, invasive weeds, grazing, globalchange, and other agents of ecological change. The agency is currentlydeveloping improved grass and forage legume germplasm for livestock,conservation, bioenergy, and bioproduct systems as well as grazing-basedlivestock systems that reduce risk and increase profitability. In addition,ARS is developing whole system management strategies to reduce produc-tion costs and risks.

Livestock Production.—ARS' livestock production program is directedtoward fostering an abundant, safe, nutritionally wholesome, and compet-itively priced supply of animal products produced in a viable, competitive,and sustainable animal agriculture sector of the economy by: safeguardingand utilizing animal genetic resources, associated genetic and genomicdatabases, and bioinformatic tools; developing a basic understanding offood animal physiology to address priority issues related to animal produc-tion, animal well-being, and product quality and healthfulness; and devel-oping information, best management practices, novel and innovative tools,and technologies that improve animal production systems, enhance humanhealth, and ensure domestic food security.

Crop Production.—ARS' crop production program focuses on developingand improving ways to reduce crop losses while protecting and ensuringa safe and affordable food supply. The research program concentrates onproduction strategies that are environmentally friendly, safe to consumers,and compatible with sustainable and profitable crop production systems.Research activities are directed at safeguarding and utilizing plant geneticresources and their associated genetic, genomic, and bioinformatic databasesthat facilitate selection of varieties and/or germplasm with significantlyimproved traits. Research activities attempt to minimize the impacts ofcrop pests while maintaining healthy crops and safe commodities that canbe sold in markets throughout the world. ARS is conducting research todiscover and exploit naturally occurring and engineered genetic mechanismsfor plant pest control, develop agronomic germplasm with durable defensivetraits, and transfer genetic resources for commercial use. ARS providestaxonomic information on invasive species that strengthens preventiontechniques, aids in detection/identification of invasive pests, and increasescontrol through management tactics that restore habitats and biologicaldiversity.

Livestock Protection.—ARS' research on livestock protection is directedat protecting and ensuring the safety of the Nation's agriculture and foodsupply through improved disease detection, prevention, control, and treat-ment. Basic and applied research approaches are used to solve animal healthproblems of high national priority. Emphasis is given to methods and pro-cedures to control animal diseases through the discovery and developmentof diagnostics, vaccines, biotherapeutics, animal genomics applications,disease management systems, animal disease models, and farm biosecuritymeasures. The research program has the following strategic objectives:establish ARS laboratories into a fluid, highly effective research networkto maximize use of core competencies and resources; ensure access tospecialized high containment facilities to study zoonotic and emergingdiseases; develop an integrated animal and microbial genomics researchprogram; establish core competencies in bovine, swine, ovine, and avian

immunology; launch a biotherapeutic discovery program providing altern-atives to animal drugs; build a technology-driven vaccine and diagnosticdiscovery research program; develop core competencies in field epidemi-ology and predictive biology; establish a best-in-class training center forour Nation's veterinarians and scientists; and develop a model technologytransfer program to achieve the full impact of ARS research discoveries.

Crop Protection.—ARS' research on crop protection protects crops frominsects and diseases through research to understand pest and diseasetransmission mechanisms, and to identify and apply new technologies thatincrease understanding of virulence factors and host defense mechanisms.ARS research priorities include identification of: genes that convey vir-ulence traits in pathogens and pests; factors that modulate infectivity, genefunctions, and mechanisms; genetic profiles that provide specified levelsof disease and insect resistance under field conditions; and mechanismsthat reduce the spread of pests and infectious diseases. ARS is developingnew knowledge and integrated pest management approaches to controlpest and disease outbreaks as they occur. Its research will improve theknowledge and understanding of the ecology, physiology, epidemiology,and molecular biology of emerging diseases and pests. This knowledgewill be incorporated into pest risk assessments and management strategiesto minimize chemical inputs and increase production. Strategies and ap-proaches will be available to producers to control emerging crop diseasesand pest outbreaks and to address quarantine issues.

Food Safety.— ARS' food safety research program is designed to yieldscience-based knowledge on the safe production, storage, processing, andhandling of plant and animal products, and on the detection and control oftoxin producing and/or pathogenic bacteria and fungi, parasites, chemicalcontaminants, and plant toxins. All of ARS' research activities involve ahigh degree of cooperation and collaboration with USDA's Research,Education, and Economics agencies, as well as with the Food Safety andInspection Service, Animal and Plant Health Inspection Service, Food andDrug Administration, Centers for Disease Control and Prevention, Depart-ment of Homeland Security, and the Environmental Protection Agency(EPA). ARS also collaborates in international research programs to addressand resolve global food safety issues. Specific research efforts are directedtoward developing new technologies that assist ARS stakeholders andcustomers, including regulatory agencies, industry, and commodity andconsumer organizations, in detecting, identifying, and controlling foodbornediseases that affect human health.

Human Nutrition.—Maintenance of health throughout the lifespan alongwith prevention of obesity and chronic diseases via food-based recommend-ations are the major emphases of ARS' human nutrition research program.These health-related goals are based on the knowledge that deficiencydiseases are no longer primary public health concerns in the U.S. Excessiveconsumption has become the primary nutrition problem in the Americanpopulation. This is reflected by increased emphasis on prevention of obesityfrom basic science through intervention studies to assessments of largepopulations. ARS' research program also actively studies bioactive com-ponents of foods that have no known requirement but have health promotingqualities. Four specific areas of research are emphasized: nutrition monit-oring; the scientific basis for dietary recommendations; prevention ofobesity and related diseases; and life stage nutrition and metabolism, inorder to better define the role of nutrition in pregnancy and growth ofchildren, and for healthier aging.

Library and Information Services.—The National Agricultural Library(NAL) is the largest and most accessible agricultural research library inthe world. It provides services directly to the staff of USDA and to thepublic, primarily via the NAL web site, http://www.nal.usda.gov. NALwas created with the USDA in 1862 and was named a national library in1962, as the primary agricultural information resource of the United States.NAL is the premier library for collecting, managing, and disseminatingagricultural knowledge. The Library is the repository of our Nation's agri-cultural heritage, the provider of world class information, and a wellspringfor generating new fundamental knowledge and advancing scientific dis-

THE BUDGET FOR FISCAL YEAR 201970 Agricultural Research Service—ContinuedFederal Funds—Continued

covery. It is a priceless national resource that, through its services, pro-grams, information products, and web-based tools and technologies, servesanyone who needs agricultural information. The Library's vision is "advan-cing access to global information for agriculture."

Repair and Maintenance of Facilities.—Funds are used to restore, up-grade, and maintain ARS' facilities to meet Occupational Safety and HealthAdministration and EPA requirements, provide suitable workspace for in-house research programs, and to retrofit existing structures for better energyutilization.

Reimbursements.—ARS performs research activities and services forother USDA, Federal, and non-Federal agencies. These activities and ser-vices are paid for on a reimbursable basis.





420490490Total personnel compensation ...........................................11.9149173173Civilian personnel benefits ........................................................12.1112310Travel and transportation of persons .........................................21.0111Transportation of things ............................................................22.0554Rental payments to GSA ............................................................23.1111Rental payments to others ........................................................23.2

464243Communications, utilities, and miscellaneous charges ............23.3111Advisory and assistance services ..............................................25.1


474443Operation and maintenance of facilities ...................................25.4128208212Research and development contracts .......................................25.5213119Operation and maintenance of equipment ................................25.7706764Supplies and materials .............................................................26.0605455Equipment .................................................................................31.0878Land and structures ..................................................................32.0

191717Grants, subsidies, and contributions ........................................41.0

1,0191,1921,170Direct obligations ..................................................................99.0156142142Reimbursable obligations .....................................................99.0

1,1751,3341,312Total new obligations, unexpired accounts ............................99.9

Employment Summary


5,1135,9525,952Direct civilian full-time equivalent employment ............................1001454454454Reimbursable civilian full-time equivalent employment ...............2001

✦

BUILDINGS AND FACILITIES




Obligations by program activity:.................109147Building and facilities projects .................................................0001

.................109147Total new obligations (object class 32.0) ......................................0900



Appropriations, discretionary:.................99100Appropriation ....................................................................1100

–192..................................Unobligated balance of appropriations permanently

reduced .........................................................................1131

–19299100Appropriation, discretionary (total) .......................................1160.................301349Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:.................192202Unexpired unobligated balance, end of year ..........................1941


1751443Unpaid obligations, brought forward, Oct 1 ..........................3000.................109147New obligations, unexpired accounts ....................................3010

–131–78–6Outlays (gross) ......................................................................3020




–19299100Budget authority, gross .........................................................4000Outlays, gross:

–179.................Outlays from new discretionary authority ..........................4010148696Outlays from discretionary balances .................................4011

131786Outlays, gross (total) .............................................................4020–19299100Budget authority, net (total) ..........................................................4180131786Outlays, net (total) ........................................................................4190

This account provides funds for the acquisition of land, construction, re-pair, improvement, extension, alteration, and purchase of fixed equipmentor facilities of or used by the Agricultural Research Service.

ARS operates an extensive network of Federally-owned research facilitiesstrategically located throughout the United States, reflective of the widegeographic diversity and site specificity of agricultural production anddistinct climatic and agroecosystem zones. The agency completed a reviewof its laboratory portfolio in 2012 and developed a plan for future capitalinvestment that would be required to maintain this aging infrastructure.The resulting "Capital Investment Strategy" recommended modernizationof selected facilities. The 2019 Budget request does not include fundingfor this account and proposes to cancel $192 million in unobligated balancesthat are no longer needed for capital improvements.

✦

Trust Funds

MISCELLANEOUS CONTRIBUTED FUNDS




Current law:

282828Deposits of Miscellaneous Contributed Funds, Science and

Education Administration .................................................1130


Current law:–28–28–28Miscellaneous Contributed Funds .........................................2101




Obligations by program activity:272425Miscellaneous contributed funds ..............................................0001






155Unpaid obligations, brought forward, Oct 1 ..........................3000

71DEPARTMENT OF AGRICULTUREAgricultural Research Service—Continued

Trust Funds

MISCELLANEOUS CONTRIBUTED FUNDS—Continued




.................15Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:




202011Outlays from new mandatory authority .............................41008814Outlays from mandatory balances ....................................4101


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





888Total personnel compensation ...........................................11.9111Civilian personnel benefits ........................................................12.1211Travel and transportation of persons .........................................21.0211Other services from non-Federal sources ..................................25.2666Research and development contracts .......................................25.5434Supplies and materials .............................................................26.0444Grants, subsidies, and contributions ........................................41.0


Employment Summary



✦

NATIONAL INSTITUTE OF FOOD AND AGRICULTUREFederal Funds

INTEGRATED ACTIVITIES

For the integrated research, education, and extension grants programs, includingnecessary administrative expenses, $13,037,000: Provided, That notwithstandingany other provision of law, indirect costs shall not be charged against any ExtensionImplementation Program Area grant awarded under the Crop Protection/PestManagement Program (7 U.S.C. 7626).




Obligations by program activity:132020Crop Protection/Pest Management ............................................0050

.................22Methyl bromide transition program ...........................................0070

.................98Homeland Security ....................................................................0071

.................4726Emergency Citrus Research and Extension Program .................0085805151Specialty Crop Research Initiative .............................................0086

.................22Regional Rural development centers .........................................0087

.................44Organic transition .....................................................................0088

.................1919Organic Research and Extension Initiative ................................0089



.................2326Unobligated balance brought forward, Oct 1 .........................1000

.................2.................Discretionary unobligated balance brought fwd, Oct 1 ......1001Budget authority:



.................–5–7Appropriations and/or unobligated balance of


809593Appropriations, mandatory (total) .........................................126093131129Budget authority (total) .............................................................190093154155Total budgetary resources available ..............................................1930










423634Outlays, gross (total) .............................................................4020Mandatory:



12010368Outlays, gross (total) .............................................................411093131129Budget authority, net (total) ..........................................................4180

162139102Outlays, net (total) ........................................................................4190

Integrated research, education, and/or extension grants are awarded forcompetitive and non-competitive programs.

Crop Protection/Pest Management Program.—This program supportsprojects that respond to pest management challenges with coordinated re-gion-wide and national research, education, and extension programs, andserves as a catalyst for promoting further development and use of integratedpest management approaches. The program also fosters regional and na-tional team building efforts, communication networks, and enhancedstakeholder participation. The 2019 Budget includes $13 million for thisprogram.

Organic Agriculture Research and Extension Initiative.—This mandatoryprogram, authorized by section 7206 of the Food, Conservation, and EnergyAct of 2008 (2008 Farm Bill), supports research and extension programsthat enhance the ability of producers and processors who have already ad-opted organic standards to grow and market high quality organic agricul-tural products. In 2019, there is no mandatory funding for the program.

Specialty Crop Research Initiative.—This mandatory program, authorizedby section 7306 of the 2014 Farm Bill, which amends Section 412 of theAgricultural Research, Extension, and Education Reform Act of 1998,provides funding to solve critical industry issues through: research andextension activities that focus on research in plant breeding, genetics, andgenomics to improve crop characteristics; efforts to identify and addressthreats from pests and diseases, including threats to specialty crop pollinat-ors; efforts to improve production efficiency, productivity, and profitabilityover the long term; new innovations and technology, including improvedmechanization and technologies that delay or inhibit ripening; and methods

THE BUDGET FOR FISCAL YEAR 201972 Agricultural Research Service—ContinuedTrust Funds—Continued

to prevent, detect, monitor, control, and respond to potential food safetyhazards in the production and processing of specialty crops. In 2019,mandatory funding for the program is $80 million.



Direct obligations:11.................Travel and transportation of persons .........................................21.0111Advisory and assistance services ..............................................25.1

.................23Other services from non-Federal sources ..................................25.211.................Research and development contracts .......................................25.5



Employment Summary



✦

BIOMASS RESEARCH AND DEVELOPMENT



Obligations by program activity:.................9.................Biomass research and development ..........................................0001

.................9.................Total new obligations (object class 41.0) ......................................0900



..................................1Recoveries of prior year unpaid obligations ...........................1021

.................96Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, mandatory:..................................3Appropriations transferred from other acct [012–4336] ....1221.................99Total budgetary resources available ..............................................1930



7618Unpaid obligations, brought forward, Oct 1 ..........................3000.................9.................New obligations, unexpired accounts ....................................3010





..................................3Budget authority, gross .........................................................4090Outlays, gross:

4811Outlays from mandatory balances ....................................4101..................................3Budget authority, net (total) ..........................................................4180


Biomass Research and Development is authorized by the Biomass Re-search and Development Act of 2000. The program provides competitivegrants for research, development, and demonstration to encourage innova-tion and development related to biomass, and improved commercializationof biobased products and energy. USDA and the Department of Energyjointly administer the program. In 2019, there is no mandatory funding forthe program.

✦

RESEARCH AND EDUCATION ACTIVITIES

For payments to agricultural experiment stations, for cooperative forestry andother research, for facilities, and for other expenses, $794,479,000: Provided, Thatfunds for research grants for 1994 institutions, education grants for 1890 institutions,the agriculture and food research initiative, veterinary medicine loan repayment,and grants management systems shall remain available until expended: Providedfurther, That each institution eligible to receive funds under the Evans-Allen programreceives no less than $1,000,000: Provided further, That funds for education grantsfor Alaska Native and Native Hawaiian-serving institutions be made available toindividual eligible institutions or consortia of eligible institutions with funds awardedequally to each of the States of Alaska and Hawaii: Provided further, That fundsfor education grants for 1890 institutions shall be made available to institutionseligible to receive funds under 7 U.S.C. 3221 and 3222: Provided further, That notmore than 5 percent of the amounts made available by this or any other Act to carryout the Agriculture and Food Research Initiative under 7 U.S.C. 3157(b) may beretained by the Secretary of Agriculture to pay administrative costs incurred by theSecretary in carrying out that authority.

NATIVE AMERICAN INSTITUTIONS ENDOWMENT FUND

For the Native American Institutions Endowment Fund authorized by Public Law103–382 (7 U.S.C. 301 note), $11,857,000, to remain available until expended.




225213201Balance, start of year ....................................................................0100Receipts:

Current law:

555Earnings on Investments, Native American Institutions

Endowment Fund ..............................................................1140


Current law:–5–5–5Research and Education Activities ........................................2101121212Research and Education Activities ........................................2134

777Total current law appropriations .......................................2199

777Total appropriations ..................................................................2999

237225213Balance, end of year ..................................................................5099



Obligations by program activity:243242244Payments under the Hatch Act ..................................................0001293434Cooperative forestry research ....................................................0002

545454Payments to 1890 colleges and Tuskegee Univ. and West Virginia

State University .....................................................................0003

335149Special research grants ............................................................0004375862341Agriculture Food and Research Initiative ...................................0005

.................44Animal health and disease research .........................................0006182020Federal Administration ..............................................................0007375048Higher education .......................................................................0008556Native American Institutions Endowment Fund .........................0009567Veterinary Medical Services Act .................................................0012

.................23Veterinary Services Grant Program ............................................0013

.................33Sun Grant Program ....................................................................0015

.................11Farm Business Management and Benchmarking ......................0016

.................22Alfalfa Forage and Research Program .......................................0021

.................57Capacity Building for Non-Land Grant Colleges of

Agriculture ............................................................................0022

7991,341823Total direct obligations ..................................................................0799121211Research and Education Activities (Reimbursable) ...................0801

8111,353834Total new obligations, unexpired accounts ....................................0900



.................493444Discretionary unobligated balance brought fwd, Oct 1 ......1001


.................493460Unobligated balance (total) ......................................................1050

73DEPARTMENT OF AGRICULTURENational Institute of Food and Agriculture—Continued


RESEARCH AND EDUCATION ACTIVITIES—Continued




806855861Appropriation ....................................................................1100555Appropriation (Native American Endowment Interest) ........1101

–12–12–12Portion precluded from obligation (-) (N.A. Endowment

Fund) ............................................................................1134

799848854Appropriation, discretionary (total) .......................................1160Spending authority from offsetting collections, discretionary:

..................................1Collected ...........................................................................1700121211Change in uncollected payments, Federal sources ............1701

121212Spending auth from offsetting collections, disc (total) .........1750Spending authority from offsetting collections, mandatory:

..................................1Collected ...........................................................................1800811860867Budget authority (total) .............................................................19008111,3531,327Total budgetary resources available ..............................................1930



1,6241,064992Unpaid obligations, brought forward, Oct 1 ..........................30008111,353834New obligations, unexpired accounts ....................................3010




1,5241,6241,064Unpaid obligations, end of year .................................................3050Uncollected payments:

–32–20–23Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060–12–12–11Change in uncollected pymts, Fed sources, unexpired ..........3070

..................................14Change in uncollected pymts, Fed sources, expired ..............3071


1,5921,044969Obligated balance, start of year ............................................31001,4801,5921,044Obligated balance, end of year ..............................................3200







–12–12–11Change in uncollected pymts, Fed sources, unexpired .......4050121215Offsetting collections credited to expired accounts ...........4052

..................................4Additional offsets against budget authority only (total) ........4060


Mandatory:..................................1Budget authority, gross .........................................................4090


..................................–1Non-Federal sources .........................................................4123799848854Budget authority, net (total) ..........................................................4180899781727Outlays, net (total) ........................................................................4190

Memorandum (non-add) entries:222210194Total investments, SOY: Federal securities: Par value ...............5000234222210Total investments, EOY: Federal securities: Par value ...............50014646.................Unexpired unavailable balance, SOY: Appropriations ................50966868.................Unexpired unavailable balance, EOY: Appropriations ................5098

The National Institute of Food and Agriculture (NIFA) participates in anationwide system of agricultural research and education program planningand coordination between State institutions and the U.S. Department ofAgriculture. It assists in maintaining cooperation among the State institu-tions, and between the State institutions and their Federal research partners.

The agency administers grants and payments to State institutions to leverageState and local funding for agricultural research and higher education.

Payments under the Hatch Act.—Funds under the Hatch Act are allocatedon a formula basis to agricultural experiment stations of the land-grantcolleges in the 50 States, the District of Columbia, Puerto Rico, Guam, theVirgin Islands, American Samoa, Micronesia, and Northern Mariana Is-lands. The 2019 budget includes $243.2 million.

Cooperative forestry research.—These funds are allocated by formulato land-grant colleges or agricultural experiment stations in the 50 States,Puerto Rico, Guam, the Virgin Islands, and other State-supported collegesand universities having a forestry school and offering graduate training inforestry sciences. The 2019 Budget is funded at $28.9 million.

Payments to 1890 Institutions for Research.—Funds allocated on a for-mula basis support agricultural research and broaden the curricula at thenineteen 1890 land-grant colleges, including Tuskegee University, WestVirginia State University, and Central State University. The 2019 Budgetincludes $53.8 million.

Special grants and other research programs.—This program addressesresearch areas of national interest. The 2019 Budget includes $11.8 millionfor IR-4 minor crop pest management to assist growers in obtaining regis-trations of pesticides for use on specialty food crops, ornamental horticulturecrops, and minor uses on major crops. The 2019 Budget also includesfunding for sustainable agriculture at $19 million. The 2019 Budget pro-poses funding at $1.8 million for the competitive 1994 Institutions researchgrants program to build research capacity at the legislatively eligible 1994institutions by supporting tribal, national and multistate agricultural researchpriorities.

Agriculture and Food Research Initiative competitive grants.—Section7406 of the Food, Conservation, and Energy Act of 2008 (Pub. L. 110–246)establishes the Agriculture and Food Research Initiative (AFRI). AFRI isthe core competitive grant program for fundamental and applied research,extension, and education to address food and agricultural sciences. The2019 Budget includes $375 million for AFRI to support the transformativeinnovations needed to achieve nutritional security. This investment is es-sential for the foundational research and agricultural workforce developmentthat complements and underpins large systems-level research, education,and extension activities needed to maintain America's global preeminencein food and agricultural production. To achieve this transformation of U.S.agricultural systems, AFRI includes investments in three major foci: Sus-tainable Agricultural Systems, Foundational and Applied Science, andEducation and Workforce Development. These complementary foci willsupport the creation, delivery, and application of the knowledge, tools, andinnovations needed to tackle the broad range of global agricultural chal-lenges impacting America. Addressing these challenges will engage scient-ists and educators with expertise in plant health and production and plantproducts; animal health and production and animal products; food safety,nutrition, and health; bioenergy, natural resources, and environment; agri-cultural systems and technology; and agriculture economics and ruralcommunities. AFRI allows greater flexibility in the types of projects fundedto include: single function projects in research, education, and extension,and integrated research, education and/or extension awards.

Federal administration.—A coordinating and review staff assists inmaintaining cooperation within and among the States, and between theStates and their Federal research partners. This staff also administers re-search and education grants and payments to States. Federal administrationis funded from a combination of program set-asides from formula and grantprograms and from direct appropriation for administration. The 2019 Budgetincludes $19 million.

Higher education.—The 2019 Budget proposes $19.2 million for a capa-city building program at the 1890 institutions as part of the USDA initiativeto strengthen these institutions through a broadening of curricula, and in-creased faculty development and student research projects. The 2019 Budgetfunding is proposed for Hispanic-serving institutions education grantsprogram at $9.2 million. Funding is also proposed for Native American

THE BUDGET FOR FISCAL YEAR 201974 National Institute of Food and Agriculture—ContinuedFederal Funds—Continued

institutions at $3.4 million, Alaska Native-serving and Native Hawaiian-serving institutions at $3.2 million, and Grants for Insular Areas programsat $2 million. These programs enable universities to broaden their curricula,and increase faculty development and student research projects in the foodand agricultural sciences. Funding also is proposed in the 2019 Budget, at$5 million, for the Veterinary Medical Services Act to provide incentivesto hire veterinarians to work in shortage areas.

Native American Institutions Endowment Fund.—The 2019 Budget in-cludes $11.9 million, for an endowment for the 1994 land-grant institutions(the legislatively eligible Tribally controlled colleges) to strengthen theinfrastructure of these institutions and develop Indian expertise for the foodand agricultural sciences and businesses and their own communities. Atthe termination of each fiscal year, the Secretary withdraws the incomefrom the endowment fund for the fiscal year, and after making adjustmentsfor the cost of administering the fund, distributes the adjusted income ona formula basis to the 1994 land-grant institutions. An estimated $5 millionin interest earned in 2018 will be available to the program in 2019.

Reimbursable program.—Funds support basic and applied agricultureresearch and activities performed for other USDA, Federal, and non-Fed-eral agencies.



Direct obligations:262826Personnel compensation: Full-time permanent .........................11.1574Civilian personnel benefits ........................................................12.1221Travel and transportation of persons .........................................21.076.................Rental payments to GSA ............................................................23.1442Communications, utilities, and miscellaneous charges ............23.33310Advisory and assistance services ..............................................25.122.................Other goods and services from Federal sources ........................25.3

..................................1Operation and maintenance of facilities ...................................25.4121111Research and development contracts .......................................25.5

7381,278768Grants, subsidies, and contributions ........................................41.0

7991,341823Direct obligations ..................................................................99.0121211Reimbursable obligations .....................................................99.0

8111,353834Total new obligations, unexpired accounts ............................99.9

Employment Summary



✦





222Unobligated balance brought forward, Oct 1 .........................1000222Total budgetary resources available ..............................................1930



..................................2Unpaid obligations, brought forward, Oct 1 ..........................3000

..................................–2Outlays (gross) ......................................................................3020Memorandum (non-add) entries:

..................................2Obligated balance, start of year ............................................3100


Outlays, gross:..................................2Outlays from discretionary balances .................................4011...................................................Budget authority, net (total) ..........................................................4180..................................2Outlays, net (total) ........................................................................4190

Funds provide grants to States and other eligible recipients for the acquis-ition of land, construction, repair, improvement, extension, alteration andpurchase of fixed equipment or facilities to carry out agricultural research,extension, and teaching programs. No funding has been appropriated tothis account since 1997.

✦

EXTENSION ACTIVITIES

For payments to States, the District of Columbia, Puerto Rico, Guam, the VirginIslands, Micronesia, the Northern Marianas, and American Samoa, $450,185,000:Provided, That funds for facility improvements at 1890 institutions shall remainavailable until expended: Provided further, That institutions eligible to receive fundsunder 7 U.S.C. 3221 for cooperative extension receive no less than $1,000,000:Provided further, That funds for cooperative extension under sections 3(b) and (c)of the Smith-Lever Act (7 U.S.C. 343(b) and (c)) and section 208(c) of Public Law93–471 shall be available for retirement and employees' compensation costs forextension agents.




Obligations by program activity:299298300Smith-Lever Act, 3(b) and 3(c) ..................................................0001

888Youth at risk ..............................................................................0002556768Expanded food and nutrition education program (EFNEP) .........0004

.................55Farm Safety ...............................................................................0006333Federally Recognized Tribes Extension Program ........................0009

464546Payments to 1890 colleges and Tuskegee Univ. and West Virginia

State University .....................................................................0013

.................44Renewable resources extension act ...........................................0015988Federal administration ..............................................................0016

205421890 facilities (section 1447) ...................................................00194451994 institutions activities .......................................................0022

.................33Rural health and safety education ............................................0024555Risk management education .....................................................0026

.................22New technologies for ag. extension ...........................................0027111Food Animal Residue Avoidance Database ................................0030

.................2018Beginning Farmers and Ranchers Program ...............................0031555Food Safety Outreach Program ..................................................0032

.................2319Food Insecurity Nutrition Incentive Program ..............................0033

.................10.................Enhancing Agricultural Opportunities for Military Veterans ........0034

455565502Total direct obligations ..................................................................0799161618Extension Activities (Reimbursable) ..........................................0801









.................4540Appropriations transferred from other acct [012–4336] ....1221



54742Appropriations, mandatory (total) .........................................1260Spending authority from offsetting collections, discretionary:






75DEPARTMENT OF AGRICULTURENational Institute of Food and Agriculture—Continued


EXTENSION ACTIVITIES—Continued






















Outlays, gross:372Outlays from new mandatory authority .............................4100

455636Outlays from mandatory balances ....................................4101


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

The non-formal educational network combines the expertise and resourcesof Federal, State, and local partners. The partners in this unique Systemare: a) NIFA at the U.S. Department of Agriculture; b) Extension profes-sionals at land-grant universities throughout the U.S. and its territories;and c) Extension professionals in nearly all of the Nation's 3,144 countiesand county equivalents. Thousands of paraprofessionals and nearly 3 millionvolunteers support this partnership and magnify its impact. Strong linkageswith both public and private external groups also are crucial to the Cooper-ative Extension System's strength and vitality.

Smith-Lever 3(b) and (c).—Programs supported with Smith-Lever 3(b)and (c) legislated formula funds are the major educational efforts centralto the mission of the System and common to most Extension units. Theseprograms are the foundation of the Extension organization and partnershipthat are intended to increase the number of community-based projects,families, and individuals reached to disseminate research findings as widelyand quickly as possible. Funds will be used to develop practical applicationsof existing or improved practices or technologies in agriculture; and dis-seminate information to communities through demonstrations and public-ations. The 2019 Budget proposes Smith-Lever 3(b) and (c) programs tobe funded at $299.4 million.

1890 Institutions.—Smith-Lever 3(b) and (c) provides formula paymentsto the 1890 colleges and Tuskegee University, West Virginia State Univer-sity, and Central State University. The 2019 Budget includes $45.3 millionand provides funds to support the Extension's infrastructure.

1890 Facilities.—The 2019 Budget includes $19.6 million for 1890 Fa-cilities Grants for the acquisition and improvement of food, agricultural,and human sciences facilities and equipment, including libraries, so thatthe 1890 land-grant institutions, including Tuskegee University, WestVirginia State University, and Central State University may participatefully in the production of human capital in the food and agricultural sci-ences.

Smith-Lever 3(d) Programs.—Designated programs funded by Smith-Lever 3(d) include the Expanded Food and Nutrition Education Program;Children, Youth, and Families at Risk; and Federally-Recognized TribesExtension Program. The 2019 Budget includes $66.5 million for theseprograms.

Other Extension Programs.—Other Extension programs supported in the2019 Budget include Extension Services at 1994 Institutions at $4.4 million,Food Animal Residue Avoidance Database Program at $1.2 million, andFood Safety Outreach Program at $5 million.

Federal administration.—A coordinating and review staff assists inmaintaining cooperation within and among the States, and between theStates and their Federal partners. This staff also administers extensiongrants and payments to States. Federal administration is funded from directappropriation for administration. The 2019 Budget includes $8.8 million,which includes $0.5 million for agriculture in the classroom.

Beginning Farmer and Rancher Development Program.—This mandatoryprogram, authorized by section 7410 of the 2008 Farm Bill, providesfunding to support the development of education, outreach, curricula,workshops, educational teams, training, and technical assistance programsto assist beginning farmers and ranchers in the U.S. and its territories inentering, building, and managing successful farm and ranch enterprises.This program also provides support for an online electronic and libraryclearinghouse to provide associated support to individually funded projects,and the overall program. In 2019, there is no mandatory funding for theprogram.

Agriculture Risk Management Education Program.—This mandatoryprogram, authorized by section 133 of the Agricultural Risk Protection Actof 2000, which amends the Federal Crop Insurance Act, provides fundingfor educating agricultural producers on the full range of risk managementactivities. These activities include futures, options, agricultural trade op-tions, crop insurance, cash forward contracting, debt reduction, productiondiversification, marketing plans and tactics, farm resources risk reduction,and other appropriate risk management strategies. In 2019, mandatoryfunding for this program is $5 million.

Food Insecurity Nutrition Incentive Program.—This mandatory program,authorized by section 4208 of the Farm Bill, funds and evaluates projectsintended to increase the purchase of fruits and vegetables, any variety offresh, canned, dried, or frozen whole or cut fruits and vegetables withoutadded sugars, fats, or oils, and salt (i.e. sodium), by low-income consumersparticipating in Supplemental Nutrition Assistance Program (SNAP) byproviding incentives at the point of purchase. The program will teststrategies that could contribute to the understanding of how best to increasethe purchase of fruits and vegetables by SNAP participants to inform futureefforts, and develop effective and efficient benefit redemption technologies.In 2019, there is no mandatory funding for this program.

Reimbursable program.—Funds support activities performed for otherUSDA, Federal, and non-Federal agencies.




..................................2Travel and transportation of persons .........................................21.0

THE BUDGET FOR FISCAL YEAR 201976 National Institute of Food and Agriculture—ContinuedFederal Funds—Continued

333Communications, utilities, and miscellaneous charges ............23.345.................Advisory and assistance services ..............................................25.1

..................................8Other services from non-Federal sources ..................................25.234.................Research and development contracts .......................................25.5




Employment Summary



✦

ANIMAL AND PLANT HEALTH INSPECTION SERVICEFederal Funds



For necessary expenses of the Animal and Plant Health Inspection Service, includ-ing up to $30,000 for representation allowances and for expenses pursuant to theForeign Service Act of 1980 (22 U.S.C. 4085), $739,151,000; of which $469,000,to remain available until expended, shall be available for the control of outbreaksof insects, plant diseases, animal diseases and for control of pest animals and birds("contingency fund") to the extent necessary to meet emergency conditions; of which$7,000,000, to remain available until expended, shall be used for the cotton pestsprogram, including cost share purposes or for debt retirement for active eradicationzones; of which $30,272,000, to remain available until expended, shall be for AnimalHealth Technical Services; of which $696,000 shall be for activities under the au-thority of the Horse Protection Act of 1970, as amended (15 U.S.C. 1831); of which$33,881,000, to remain available until expended, shall be used to support avianhealth; of which $4,243,000, to remain available until expended, shall be for inform-ation technology infrastructure; of which $139,500,000, to remain available untilexpended, shall be for specialty crop pests; of which, $7,809,000, to remain availableuntil expended, shall be for field crop and rangeland ecosystem pests; of which$15,775,000, to remain available until expended, shall be for zoonotic diseasemanagement; of which $40,688,000, to remain available until expended, shall befor emergency preparedness and response; of which $25,000,000, to remain availableuntil expended, shall be for tree and wood pests; of which $3,965,000, to remainavailable until expended, shall be for the National Veterinary Stockpile; of whichup to $1,500,000, to remain available until expended, shall be for the scrapie pro-gram for indemnities; of which $2,500,000, to remain available until expended,shall be for the wildlife damage management program for aviation safety; of which$10,600,000, to remain available until expended, shall be used to carry out the sci-ence program at the National Bio and Agro-Defense facility located in Manhattan,Kansas: Provided, That of amounts available under this heading for wildlife servicesmethods development, $1,000,000 shall remain available until expended: Providedfurther, That of amounts available under this heading for the screwworm program,$4,990,000 shall remain available until expended: Provided further, That no fundsshall be used to formulate or administer a brucellosis eradication program for thecurrent fiscal year that does not require minimum matching by the States of at least40 percent: Provided further, That this appropriation shall be available for the op-eration and maintenance of aircraft and the purchase of not to exceed five, of whichtwo shall be for replacement only: Provided further, That in addition, in emergencieswhich threaten any segment of the agricultural production industry of this country,the Secretary may transfer from other appropriations or funds available to theagencies 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 contagiousor infectious disease or pests of animals, poultry, or plants, and for expenses in ac-cordance with sections 10411 and 10417 of the Animal Health Protection Act (7U.S.C. 8310 and 8316) and sections 431 and 442 of the Plant Protection Act (7U.S.C. 7751 and 7772), and any unexpended balances of funds transferred for suchemergency purposes in the preceding fiscal year shall be merged with such trans-ferred amounts: Provided further, That appropriations hereunder shall be availablepursuant to law (7 U.S.C. 2250) for the repair and alteration of leased buildingsand improvements, but unless otherwise provided the cost of altering any onebuilding during the fiscal year shall not exceed 10 percent of the current replacementvalue of the building.

In fiscal year 2019, the agency is authorized to collect fees to cover the total costsof providing technical assistance, goods, or services requested by States, otherpolitical subdivisions, domestic and international organizations, foreign governments,or individuals, provided that such fees are structured such that any entity's liabilityfor such fees is reasonably based on the technical assistance, goods, or servicesprovided to the entity by the agency, and such fees shall be reimbursed to this ac-count, to remain available until expended, without further appropriation, forproviding such assistance, goods, or services.




515228Balance, start of year ....................................................................0100..................................17Reconciliation adjustment .............................................................0198

515245Balance, start of year ................................................................0199Receipts:

Current law:7657657681990 Food, Agricultural Quarantine Inspection Fees .............1110


Current law:–765–765–767Salaries and Expenses ..........................................................2101

.................–51–45Salaries and Expenses ..........................................................2103

.................5051Salaries and Expenses ..........................................................2132

–765–766–761Total current law appropriations .......................................2199

–765–766–761Total appropriations ..................................................................2999




Obligations by program activity:288312303Animal Health ...........................................................................0001241321316Plant Health ..............................................................................000267122121Wildlife Services ........................................................................0003353535Regulatory Management ...........................................................0004524623Emergency Management ...........................................................0005373738Safe Trade and International Technical Assistance ...................0006292929Animal Welfare ..........................................................................0007495252Agency-Wide Programs ..............................................................0008

..................................5Citrus Greening - GP 764 ..........................................................0009

.................2225Emergency Program Funding .....................................................0010245245243Agricultural Quarantine Inspection User Fees ...........................0011

.................2.................H1N1 Transfer From HHS ...........................................................0012

.................5.................Citrus Greening - GP 757 ..........................................................0013757057Farm Bill, Section 10007 ...........................................................0014

..................................4Refunds for Equipment Sold ......................................................0015

1,1181,2981,251Total direct program ......................................................................0100

1,1181,2981,251Total direct obligations ..................................................................0799189189197Salaries and Expenses (Reimbursable) .....................................0801



467523477Unobligated balance brought forward, Oct 1 .........................1000.................398341Discretionary unobligated balance brought fwd, Oct 1 ......1001..................................39Recoveries of prior year unpaid obligations ...........................1021



..................................24Appropriations transferred from other acct [012–4336] ....1121

739945976Appropriation, discretionary (total) .......................................1160Appropriations, mandatory:

765765767Appropriation (AQI User Fees) ...........................................1201.................5145Appropriation (previously unavailable) .............................1203

–539–539–535Appropriations transferred to other accts [070–0530] .......1220757563Appropriations transferred from other acct [012–4336] ....1221



77DEPARTMENT OF AGRICULTUREAnimal and Plant Health Inspection Service

Federal Funds





appropriations temporarily reduced ..............................1232


189189189Collected ...........................................................................170029..................................Collected [AQI fee] ............................................................1700







..................................17Obligations ("upward adjustments"), expired accounts ........3011–1,289–1,710–1,434Outlays (gross) ......................................................................3020






–14209245Obligated balance, start of year ............................................31004–14209Obligated balance, end of year ..............................................3200


9571,1341,178Budget authority, gross .........................................................4000Outlays, gross:


9881,3131,152Outlays, gross (total) .............................................................4020Offsets against gross budget authority and outlays:


–170–141–152Non-Federal sources .........................................................4033





739945976Budget authority, net (discretionary) .........................................40707701,124948Outlays, net (discretionary) .......................................................4080



301397282Outlays, gross (total) .............................................................41101,0401,2421,261Budget authority, net (total) ..........................................................41801,0711,5211,230Outlays, net (total) ........................................................................4190

The Secretary of Agriculture established the Animal and Plant HealthInspection Service (APHIS) on April 2, 1972, under the authority of Reor-ganization Plan No. 2 of 1953 and other authorities. The mission of theAgency is to safeguard the health, welfare, and value of American agricul-tural and natural resources that are vulnerable to pests, diseases, predation,natural disasters, or inhumane treatment. APHIS performs this importantwork using three major areas of activity, as follows:

Safeguarding and Emergency Preparedness/Response.—APHIS monitorsanimal and plant health throughout the world and uses the information toset effective agricultural import policies to prevent the introduction offoreign animal and plant pests and diseases. Should a pest or disease enter

the United States, APHIS works cooperatively with Federal, State, Tribaland industry partners to rapidly diagnose them and determine if there is aneed to establish new pest or disease management programs. APHIS, inconjunction with partners and stakeholders, safeguards American agricultureby eradicating harmful pests and diseases or, where eradication is notfeasible, by minimizing their economic impact. The Agency monitors en-demic pests and diseases through surveys to detect their locations andworks with partners to implement controls and conduct outreach to preventthe spread of pests and diseases into non-infested parts of the country. TheAgency maintains a cadre of trained professionals prepared to respondimmediately to potential animal and plant health emergencies. Programpersonnel investigate reports of suspected presence of foreign and exoticpests and diseases and work with partners to determine an appropriatecourse of action, including emergency action if necessary. APHIS conductsdiagnostic laboratory activities that support the Agency's animal diseaseand plant pest prevention, detection, control, and eradication programs.The Agency also provides and directs technology development to supportanimal and plant protection programs of the Agency and its cooperators atthe State, Tribal, national, and international levels. APHIS provides tech-nical and some operational assistance to States, Tribes, and local entitiesin reducing wildlife damage to natural and agricultural resources. Finally,the Agency protects plant health by optimizing its oversight of geneticallyengineered organisms.

Safe Trade and International Technical Assistance.—Sanitary (animal)and phytosanitary (plant) (SPS) regulations can have a significant impacton market access for the United States as an exporter of agriculturalproducts. The Agency participates in the development of internationalstandards. APHIS also plays a central role in resolving technical trade issuesto ensure the smooth and safe movement of agricultural commodities intoand out of the United States. APHIS helps to protect the United States fromemerging animal and plant pests and diseases while meeting obligationsunder the World Trade Organization's SPS agreement by assisting devel-oping countries in improving their safeguarding systems. Finally, APHISdevelops and implements programs designed to identify and reduce agri-cultural pest and disease threats while they are still outside of U.S. borders,to enhance safe agricultural trade, and to strengthen emergency responsepreparedness.

Animal Welfare.—The Agency conducts regulatory activities to ensurethe humane care and treatment of animals, including horses, as requiredby the Animal Welfare Act of 1966 as amended (7 U.S.C. 2131–2159),and the Horse Protection Act of 1970 as amended (15 U.S.C. 1821–1831).These activities include inspection of certain establishments that handleanimals intended for research, exhibition, and sale as pets, and monitoringof certain horse shows.

APHIS' 2019 budget request is $739 million. The budget includes a re-quest for additional resources to prepare for the transition of the Agency'sforeign animal disease laboratory operations from Plum Island, New York,to the new state-of-the-art National Bio and Agro-Defense Facility (NBAF)in Manhattan, Kansas. The transition will take place over several years,beginning in earnest in 2019 and continuing until NBAF is online and fullyoperational in December 2022. Among the reductions included in the budgetare proposals to reduce or eliminate Federal contributions toward animaland plant health and wildlife management program efforts. APHIS worksas a partner with its cooperators at the State, local, and industry levels toachieve overall program goals; the Agency expects its cooperators willincrease their contributions toward these efforts. The Agency also proposesseveral reductions as cost savings measures. In these instances, the programswill use the remaining resources to address the highest risks or programpriority areas.

Additionally, the Administration proposes establishing a new discretionaryuser fee ($29 million in 2019) to recover the full costs of APHIS' inspectionsof passengers and cargo traveling to the continental United States fromHawaii and Puerto Rico to prevent the introduction of non-native agricul-tural pests and diseases into the mainland.

THE BUDGET FOR FISCAL YEAR 201978 Animal and Plant Health Inspection Service—ContinuedFederal Funds—Continued





423487464Total personnel compensation ...........................................11.9155167159Civilian personnel benefits ........................................................12.1

111Benefits for former personnel ....................................................13.0313636Travel and transportation of persons .........................................21.0233Transportation of things ............................................................22.0

778181Rent, Communications, and Utilities .........................................23.1111Printing and reproduction .........................................................24.0

367444429Other services from non-Federal sources ..................................25.2414545Supplies and materials .............................................................26.0142424Equipment .................................................................................31.0111Other grants, subsidies, and contributions ...............................41.0577Other insurance claims and indemnities ...................................42.0

.................1.................Interest and dividends ..............................................................43.0



Employment Summary


5,2946,1425,807Direct civilian full-time equivalent employment ............................10011,7651,7651,763Reimbursable civilian full-time equivalent employment ...............2001

✦


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, $2,852,000, to remain available until expended.




Obligations by program activity:41122Buildings and facilities .............................................................0001



87491Unobligated balance brought forward, Oct 1 .........................1000.................49.................Discretionary unobligated balance brought fwd, Oct 1 ......1001


35050Appropriation ....................................................................1100909951Total budgetary resources available ..............................................1930




–44–12–4Outlays (gross) ......................................................................3020





112.................Outlays from new discretionary authority ..........................4010

43.................4Outlays from discretionary balances .................................4011



The buildings and facilities account provides for plans, construction, re-pair, preventive maintenance, environmental support, improvement, exten-sion, alteration, purchase of fixed equipment or facilities, and acquisitionof land, as needed, for Animal and Plant Health Inspection Service (APHIS)operated facilities, which include animal quarantine stations, plant inspec-tion stations, sterile insect rearing facilities, and laboratories.

For these activities, the 2019 Budget request proposes about $2.9 millionwhich includes funding to address safety issues with several facilities.

✦

Trust Funds

MISCELLANEOUS TRUST FUNDS




Current law:9910Deposits of Miscellaneous Contributed Funds, APHIS ............1130


Current law:–9–9–10Miscellaneous Trust Funds ....................................................2101




Obligations by program activity:9911Miscellaneous trust funds .........................................................0001



Appropriations, mandatory:9910Appropriation (special or trust fund) .................................1201





–9–12–10Outlays (gross) ......................................................................3020







APHIS provides inspection and preclearance activities for growers, ex-porting associations and foreign government entities. Those benefitingfrom the service must deposit funds into this account in advance of theservice. The Agency uses the funds to cover the costs associated with in-specting and preclearing certain fruits, vegetables, flower bulbs, and otherproducts in foreign countries before they are shipped to the United States.

79DEPARTMENT OF AGRICULTUREAnimal and Plant Health Inspection Service—Continued

Trust Funds

MISCELLANEOUS TRUST FUNDS—Continued



Direct obligations:445Personnel compensation: Full-time permanent .........................11.1111Civilian personnel benefits ........................................................12.1111Benefits for former personnel ....................................................13.0111Travel and transportation of persons .........................................21.0111Other services from non-Federal sources ..................................25.2112Supplies and materials .............................................................26.0


Employment Summary



✦

FOOD SAFETY AND INSPECTION SERVICEFederal Funds

FOOD SAFETY AND INSPECTION SERVICE

For necessary expenses to carry out services authorized by the Federal Meat In-spection Act, the Poultry Products Inspection Act, and the Egg Products InspectionAct, including not to exceed $50,000 for representation allowances and for expensespursuant to section 8 of the Act approved August 3, 1956 (7 U.S.C. 1766),$1,032,273,000; and in addition, $1,000,000 may be credited to this account fromfees collected for the cost of laboratory accreditation as authorized by section 1327of the Food, Agriculture, Conservation and Trade Act of 1990 (7 U.S.C. 138f):Provided, That funds provided for the Public Health Data Communication Infra-structure system shall remain available until expended: Provided further, That nofewer than 148 full-time equivalent positions shall be employed during fiscal year2019 for purposes dedicated solely to inspections and enforcement related to theHumane Methods of Slaughter Act: Provided further, That this appropriation shallbe available pursuant to law (7 U.S.C. 2250) for the alteration and repair of buildingsand improvements, but the cost of altering any one building during the fiscal yearshall not exceed 10 percent of the current replacement value of the building.




Obligations by program activity:1,0321,0331,040Salaries and expenses ...............................................................0001229225221Salaries and Expenses (Reimbursable) .....................................0801






Spending authority from offsetting collections, discretionary:188200218Collected ...........................................................................17001021Change in uncollected payments, Federal sources ............1701





..................................4Obligations ("upward adjustments"), expired accounts ........3011

–1,230–1,227–1,247Outlays (gross) ......................................................................3020..................................–8Recoveries of prior year unpaid obligations, unexpired .........3040..................................–14Recoveries of prior year unpaid obligations, expired .............3041








1,0501,0481,074Outlays from new discretionary authority ..........................4010180179173Outlays from discretionary balances .................................4011





–10–2–1Change in uncollected pymts, Fed sources, unexpired .......40501011Offsetting collections credited to expired accounts ...........4052

.................–1.................Additional offsets against budget authority only (total) ........4060


Memorandum (non-add) entries:222Unexpired unavailable balance, SOY: Offsetting collections .......5090222Unexpired unavailable balance, EOY: Offsetting collections .......5092

The primary objective of the Food Safety and Inspection Service (FSIS)is to ensure that meat, poultry, and egg products are safe, wholesome,unadulterated, and properly labeled and packaged, as required by the Fed-eral Meat Inspection Act, the Poultry Products Inspection Act, and the EggProducts Inspection Act. In carrying out this mission, FSIS oversight re-sponsibility covers a significant percentage of American spending on food.Providing adequate resources for Federal Food Safety agencies is a priorityof the Administration. The 2019 Budget proposes $1.032 billion for inspec-tion of meat, poultry and egg products. With these funds, FSIS will fullysupport all Federal, in-plant and other frontline personnel and the Federalshare of State inspection programs, and continue to improve its data infra-structure and modernize its scientific approach to food safety. This budgetalso requests Congress return Siluriformes inspection to FDA. In addition,the budget proposes a user fee which will be charged to plants to supportinspections and central operations costs for Federal, State, and Internationalinspection programs for meat, poultry, and eggs. In FY 2019, USDA willrealign Codex Alimentarius activities from the Food Safety and InspectionService (FSIS) to the Office of the Secretary, reporting to the Under Sec-retary for Trade and Foreign Agricultural Affairs. FSIS will remain thechair of Codex.

FEDERALLY FUNDED INSPECTION ACTIVITIES2019 est.2018 est.2017

ACTUALFEDERALLY INSPECTED ESTABLISHMENTS:

666Slaughter only Establishments .................................................................4,3004,3004,287Processing only Establishments ...............................................................1,1001,1001,092Combination Slaughter and Processing Establishments ..........................353353353Talmadge-Aiken Plants .............................................................................140140133Import Establishments .............................................................................858582Egg Plants ................................................................................................

825825833Other Establishments ...............................................................................

FEDERALLY INSPECTED and PASSED PRODUCTION (millions ofpounds):

49,50049,00048,698Meat Slaughter .........................................................................................

THE BUDGET FOR FISCAL YEAR 201980 Animal and Plant Health Inspection Service—ContinuedTrust Funds—Continued

62,25062,00061,509Poultry Slaughter ......................................................................................3,3003,2503,123Egg Products ............................................................................................

IMPORT/EXPORT ACTIVITY (millions of pounds):

4,2004,1004,065Meat and Poultry Imported .......................................................................15,00014,60014,486Meat and Poultry Exported ........................................................................

STATES AND TERRITORIES with COOPERATIVE PROGRAMS:

272727Intrastate Inspection1 ...............................................................................999Talmadge-Aiken Inspection (number of states) ........................................

360360353Number of Talmadge-Aiken establishments2 ............................................

1,6201,5001,442Number of Slaughter and/or Processing Plants (excludes exemptplants) ......................................................................................................

COMPLIANCE ACTIVITIES:

24,60024,00023,397Investigations and Surveillance Activities: ...............................................1,6651,6501,647Enforcement Actions Completed ...............................................................

LABORATORY SAMPLING:

106,416106,41693,314Microbiology (Samples Analyzed) ..............................................................250,000250,000252,214Microbiology (Tests Performed) .................................................................600,000600,000615,045Microbiology (Analytes Analyzed) ..............................................................14,95214,95214,936Chemistry (Samples Analyzed) .................................................................48,00048,00047,135Chemistry (Tests Performed) .....................................................................

1,825,0001,825,0001,766,831Chemistry (Analytes Analyzed) ..................................................................5,0005,0004,032Pathology Samples (Samples Analyzed) ...................................................

CONSUMER EDUCATION and PUBLIC OUTREACH:

47,18749,67152,285Meat and Poultry Hotline Calls Received ..................................................10,460,0009,500,0008,645,444Website Visits ...........................................................................................

10,00010,50011,005Electronic Messages Received ..................................................................973,1621,297,5491,730,065Publications Distributed ...........................................................................364,000325,000283,331E-mail Alert Service Subscribers ..............................................................

EPIDEMIOLOGICAL INVESTIGATIONS:

161614Cooperative Efforts with State and Public Health Offices .........................

714704615Illnesses Reported and Treated3 ...............................................................

1States with cooperative agreements which are operating programs.2These establishments are included in the counts of Federally inspected establishments.3Data must be collected over a number of years to chart national trends and estimate the incidence of foodborne illnessand treatment




537534535Full-time permanent .............................................................11.1666Other than full-time permanent ............................................11.3

525252Other personnel compensation ..............................................11.5


111Benefits for former personnel ....................................................13.0383739Travel and transportation of persons .........................................21.0333Transportation of things ............................................................22.0

101010Rental payments to GSA ............................................................23.16810Communications, utilities, and miscellaneous charges ............23.3111Printing and reproduction .........................................................24.0333Advisory and assistance services ..............................................25.1

373940Other services from non-Federal sources ..................................25.2434443Other goods and services from Federal sources ........................25.3111Operation and maintenance of facilities ...................................25.4111Operation and maintenance of equipment ................................25.7

111111Supplies and materials .............................................................26.0447Equipment .................................................................................31.0

515151Grants, subsidies, and contributions ........................................41.0111Insurance claims and indemnities ............................................42.0



Employment Summary


9,2249,0549,243Direct civilian full-time equivalent employment ............................1001

292929Reimbursable civilian full-time equivalent employment ...............2001

✦

Trust Funds

EXPENSES AND REFUNDS, INSPECTION AND GRADING OF FARM PRODUCTS



2..................................Balance, start of year ....................................................................0100Receipts:

Current law:

131314Deposits of Fees, Inspection and Grading of Farm Products,

Food Safety and Quality Service ........................................1130


Current law:

–11–11–14Expenses and Refunds, Inspection and Grading of Farm

Products ............................................................................2101

42.................Balance, end of year ..................................................................5099



Obligations by program activity:

111126Expenses and refunds, inspection and grading of farm

products ................................................................................0001









111112Outlays from new mandatory authority .............................4100..................................14Outlays from mandatory balances ....................................4101


Under authority of the Agricultural Marketing Act of 1946, Federal meatand poultry inspection services are provided upon request and for a fee incases 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 in-spection is not required by statute, such as buffalo, rabbit, deer, and quail;and inspecting products intended for animal consumption.




4410Full-time permanent .............................................................11.1333Other personnel compensation ..............................................11.5

7713Total personnel compensation ...........................................11.9228Civilian personnel benefits ........................................................12.1112Communications, utilities, and miscellaneous charges ............23.3113Other goods and services from Federal sources ........................25.3


81DEPARTMENT OF AGRICULTUREFood Safety and Inspection Service—Continued

Trust Funds

EXPENSES AND REFUNDS, INSPECTION AND GRADING OF FARM PRODUCTS—Continued

Employment Summary



✦

AGRICULTURAL MARKETING SERVICEFederal Funds





Obligations by program activity:.................2323Packers and stockyards program ..............................................0001.................2020Grain regulatory program ..........................................................0002

.................4343Total new obligations, unexpired accounts ....................................0900


Appropriations, discretionary:.................4343Appropriation ....................................................................1100.................4343Budget authority (total) .............................................................1900.................4343Total budgetary resources available ..............................................1930


777Unpaid obligations, brought forward, Oct 1 ..........................3000.................4343New obligations, unexpired accounts ....................................3010..................................1Obligations ("upward adjustments"), expired accounts ........3011





.................4343Budget authority, gross .........................................................4000Outlays, gross:

.................3637Outlays from new discretionary authority ..........................4010776Outlays from discretionary balances .................................4011

74343Outlays, gross (total) .............................................................4020.................4343Budget authority, net (total) ..........................................................4180


As a result of the USDA reorganization, the Grain Inspection, Packersand Stockyards Administration (GIPSA) will no longer exist as a standaloneagency. The functions of the Federal Grain Inspection Service and thePackers and Stockyards Program will now be performed by the AgriculturalMarketing Service (AMS). Funding for these functions has been transferredinto AMS's Treasury Account Symbols.

MAIN WORKLOAD FACTORS2019 est.2018 est.2017 actualFederal Grain Inspection Service, Grain Regulatory Program:

129129129U.S. standards and factors (attribute tests) in effect at end of year .....476Standards reviews and factors in progress ..........................................353Standards reviews and factors completed ...........................................775On-site investigations ..........................................................................

121416Designations renewed ..........................................................................125120112Registration certificates issued ...........................................................

Packers and Stockyards Program:1,8851,8751,873Investigations ......................................................................................2,1002,0952,093Regulatory Activities ............................................................................5,8505,8575,881Livestock market agencies/dealers registered ......................................1,2601,2631,261Stockyards subject to the Act ...............................................................4,3504,3754,451Slaughtering and processing packers subject to the Act (estimated) ...

2,7852,7802,783Meat distributors, brokers, and dealers subject to the Act

(estimated) ......................................................................................

130129132Poultry operations subject to the Act ....................................................



Direct obligations:.................2323Personnel compensation: Full-time permanent .........................11.1.................88Civilian personnel benefits ........................................................12.1.................11Travel and transportation of persons .........................................21.0.................33Rental payments to GSA ............................................................23.1.................11Communications, utilities, and miscellaneous charges ............23.3.................11Other services from non-Federal sources ..................................25.2.................44Other goods and services from Federal sources ........................25.3.................11Supplies and materials .............................................................26.0.................11Equipment .................................................................................31.0

.................4343Total new obligations, unexpired accounts ............................99.9

Employment Summary


.................260260Direct civilian full-time equivalent employment ............................1001

✦

MARKETING SERVICES

For necessary expenses of the Agricultural Marketing Service, $118,617,000: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 alteringany one building during the fiscal year shall not exceed 10 percent of the currentreplacement value of the building.

Fees may be collected for the cost of standardization activities, as established byregulation pursuant to law (31 U.S.C. 9701).

LIMITATION ON ADMINISTRATIVE EXPENSES

Not to exceed $60,982,000 (from fees collected) shall be obligated during thecurrent fiscal year for administrative expenses: Provided, That if crop size is under-stated and/or other uncontrollable events occur, the agency may exceed this limitationby up to 10 percent with notification to the Committees on Appropriations of bothHouses of Congress.




Obligations by program activity:283234Market news service ..................................................................0001777Inspection and standardization .................................................0002

356563Market protection and promotion ..............................................0003779Transportation and market development ...................................0004111National Bioengineered Food Disclosure Standard ....................0005

23..................................Packers and Stockyards ............................................................00065..................................U.S. Warehouse Act ....................................................................0008

13..................................International Food Procurement ................................................0009

119112114Total direct obligations ..................................................................07996666105Marketing Services (Reimbursable) ...........................................0801











.................2828Appropriations, mandatory (total) .........................................1260

THE BUDGET FOR FISCAL YEAR 201982 Food Safety and Inspection Service—ContinuedTrust Funds—Continued


























Mandatory:.................2828Budget authority, gross .........................................................4090

Outlays, gross:..................................1Outlays from new mandatory authority .............................4100



The 2019 Budget requests about $119 million for the Agricultural Mar-keting Service (AMS) Marketing Services account, approximately $30million above 2018. The increase is due to the USDA reorganization thattransferred activities formerly performed by the Grain Inspection, Packersand Stockyards Administration (GIPSA), and some activities formerlyperformed by the Farm Service Agency (FSA), into AMS. The reorganiz-ation moved the Packers and Stockyards Program ($23 million), theWarehouse Act program ($4 million), and international food procurement($14 million) into the AMS Marketing Services account. Additionally, theWarehouse Act fees ($4 million) and the Federal Grain Inspection Programnew discretionary user fee ($20 million) are within the AMS Fee FundedInspection, Weighing, and Examination Services account.

The Packers and Stockyards Program.—This program promotes fairbusiness practices, financial integrity, and competitive environments tomarket livestock, meat, and poultry. Through its oversight activities, includ-ing monitoring programs, reviews, and investigations, the Program fostersfair competition, provides payment protection, and guards against deceptiveand fraudulent trade practices that affect the movement and price of meatanimals and their products. The Program's work protects consumers and

members of the livestock, meat, and poultry industries. The Program en-forces the Packers and Stockyards (P&S) Act, which prohibits unfair, de-ceptive, and unjust discriminatory practices by market agencies, dealers,stockyards, packers, swine contractors, and live poultry dealers in thelivestock, meat packing, and poultry industries. The P&S Act provides animportant safety net for livestock producers and poultry growers in ruralAmerica. The Program conducts routine and ongoing regulatory inspectionsand audits to assess whether subject entities are operating in compliancewith the Act, and conducts investigations of potential P&S Act violationsidentified by either industry complaints or previous regulatory inspections.

The U.S. Warehouse Act program.—USDA is authorized to licensewarehouse operators who store agricultural products. Warehouse operatorsthat apply must meet the standards established within the U.S. WarehouseAct and its regulations.

The international food procurement program.— USDA procures foodsfor international food aid programs for overseas humanitarian and develop-mental use to meet USDA and USAID program requirements.

The following Marketing Services activities were previously within thisaccount and assist producers and handlers of agricultural commodities byproviding a variety of marketing-related services. These services continueto become more complex as the volume of agricultural commodities in-creases, as greater numbers of new processed commodities are developed,and as the agricultural market structure undergoes extensive changes.Marketing changes include increased concentration in food retailing, directbuying, decentralization of processing, growth of interregional competition,vertical integration, and contract farming. The activities include:

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

National Bioengineered Food Disclosure Standard.— Public Law114–216 charges AMS with developing a national mandatory system fordisclosing the presence of bioengineered material. AMS will developrulemaking and ensure an open and transparent process to effectively es-tablish this new program, which will increase consumers' confidence andunderstanding of the foods they buy, and avoid uncertainty for food com-panies and farmers.

Inspection, grading and standardization.—Nationally uniform standardsof quality for agricultural products are established and applied to specificlots of products to: promote confidence between buyers and sellers; reducehazards in marketing due to misunderstandings and disputes arising fromthe use of nonstandard descriptions; and encourage better preparation ofuniform quality products for market. Grading services are provided on re-quest for cotton and tobacco.

Inspections of egg handlers and hatcheries are conducted quarterly toensure the proper disposition of shell eggs unfit for human consumption.

MARKET NEWS PROGRAM2019 est.2018 est.2017 actual

96%96%96%Percentage of reports released on time ....................................................

COTTON AND TOBACCO USER FEE PROGRAM2019 est.2018 est.2017 actual

202117Cotton classed (bales in millions) ............................................................227257226Domestic tobacco graded (million pounds) ..............................................182114Imported tobacco inspected (million kilograms) .......................................

FEDERALLY FUNDED INSPECTION AND MARKETING ACTIVITIES2019 est.2018 est.2017 actual

97%97%97%Percent of firms complying with EPIA and the Shell Egg Surveillanceprogram ....................................................................................................

STANDARDIZATION ACTIVITIES2019 est.2018 est.2017 actual

475542558U.S. and international standards revised, eliminated, or approved ..........

83DEPARTMENT OF AGRICULTUREAgricultural Marketing Service—Continued


MARKETING SERVICES—Continued

Market protection and promotion.—This program consists of: 1) the re-search and promotion programs which are designed to improve the compet-itive position and expand markets for cotton, eggs and egg products, honey,pork, beef, dairy products, potatoes, watermelons, mushrooms, soybeans,fluid milk, popcorn, blueberries, avocados, lamb, mangos, sorghum, pro-cessed raspberries, Christmas trees, paper and packaging, softwood lumber,and peanuts; 2) the Federal Seed Act; 3) the Pesticide Data Program; 4)Country of Origin Labeling; and 5) the National Organic Program.

The Pesticide Data program develops comprehensive, statistically defens-ible information on pesticide residues in food to improve government diet-ary risk procedures.

Federal seed inspectors conduct tests on seed samples to help ensuretruthful labeling of agricultural and vegetable seeds sold in interstatecommerce.

Country of Origin Labeling reviews and verifies that retailers are notifyingtheir customers of the country of origin of certain foods as specified in thelaw.

The National Organic Program develops national standards for organic-ally-produced agricultural products, assuring consumers that products withthe USDA organic seal meet consistent, uniform standards.

MARKET PROTECTION AND PROMOTION ACTIVITIES2019 est.2018 est.2017 actual

Pesticide data program (PDP):

555Number of foreign countries PDP contacts to share program

information ....................................................................................................................................................................................................

Seed Act:98%98%98%Percentage of seed shipped that is accurately labeled ........................

Plant Variety Protection Act:425425454Number of applications received ..........................................................

..............................................................................................................

100%100%100%Percentage of Research and Promotion Board budgets andmarketing plansapproved within time frame goal ..............................................................

Country of Origin Labeling:97%97%96%Percent of retailers in compliance ....................................................474746State and Commonwealths with cooperative agreements ................

Transportation and Market Development.—This program is designed toenhance the marketing of domestic agricultural commodities by conductingresearch into more efficient marketing methods and by providing technicalassistance to areas interested in improving their food distribution facilities,and by helping to ensure that the Nation's transportation systems will ad-equately serve the needs of agriculture and rural areas of the United States.

WHOLESALE MARKET DEVELOPMENT ACTIVITIES2019 est.2018 est.2017 actual

7598100New markets established or expanded .....................................................

TRANSPORTATION SERVICES ACTIVITIES2019 est.2018 est.2017 actual

125147150Number of projects completed ..................................................................





513636Total personnel compensation ...........................................11.9171212Civilian personnel benefits ........................................................12.1211Travel and transportation of persons .........................................21.0211Rental payments to GSA ............................................................23.1111Rental payments to others ........................................................23.2222Communications, utilities, and miscellaneous charges ............23.3

312123Other services from non-Federal sources ..................................25.21088Other goods and services from Federal sources ........................25.31..................................Supplies and materials .............................................................26.0222Equipment .................................................................................31.0




Employment Summary



✦

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 AgriculturalMarketing Act of 1946 (7 U.S.C. 1623(b)), $1,109,000.




Obligations by program activity:111Payments to states and possessions .........................................0001

797964Specialty crop block grants .......................................................0002





Appropriations, mandatory:..................................–5Appropriations transferred to other acct [012–2500] ........1220

858573Transferred from other accounts for the Specialty Crop Block

Grant Program [012–4336] ..........................................1221

..................................4Transferred from other accounts for the Specialty Crop Block

Grants Multi State [012–2501] .....................................1221



858567Appropriations, mandatory (total) .........................................1260868668Budget authority (total) .............................................................1900











111Outlays from discretionary balances .................................4011Mandatory:


..................................2Outlays from new mandatory authority .............................4100736861Outlays from mandatory balances ....................................4101


The discretionary funds in this account are for Federal-State MarketingImprovement Program grants, which are made on a matching fund basis

THE BUDGET FOR FISCAL YEAR 201984 Agricultural Marketing Service—ContinuedFederal Funds—Continued

to State departments of agriculture to carry out specifically approved value-added programs designed to spotlight local marketing initiatives and en-hance marketing efficiency. Under this activity, specialists work withfarmers, marketing firms, and other agencies in solving marketing problemsand in using research results. The mandatory funds in this account are forSpecialty Crop Block Grant-Farm Bill grants, which are block grants madeto State departments of agriculture to enhance the competitiveness of spe-cialty crops.



Direct obligations:111Personnel compensation: Full-time permanent .........................11.1



Employment Summary



✦

FEE FUNDED INSPECTION, WEIGHING, AND EXAMINATION SERVICES

Not to exceed $80,000,000 (from fees collected) shall be obligated during thecurrent fiscal year for inspection and weighing services, including activities of theFederal Grain Inspection Service: Provided, That if grain export activities requireadditional supervision and oversight, or other uncontrollable factors occur, thislimitation may be exceeded up to 10 percent with notification to the Committees onAppropriations of both Houses of Congress: Provided further, That the Secretaryof Agriculture may collect fees for the inspection and weighing activities of theFederal Grain Inspection Service: Provided further, That such fees shall remainavailable until expended, and be available for the promotion and enforcement ofthe United States Grain Standards Act and applicable provisions of the AgriculturalMarketing Act of 1946; identification, evaluation, and implementation of new orimproved techniques for measuring grain quality; and establishment and maintenanceof testing and grading standards to facilitate the marketing of U.S. grain, oilseeds,and related products: Provided further, That obligations for Federal Grain InspectionService activities shall not exceed $20,000,000 during the current fiscal year.

In addition, amounts collected pursuant to the U.S. Warehouse Act (7 U.S.C. 241et seq.) shall be deposited in this account and remain available until expended forthe purposes specified in 7 U.S.C. 241 et seq., and shall not be subject to the oblig-ation limitations in the first paragraph.




Obligations by program activity:806053Limitation on inspection and weighing services ........................08014..................................Warehouse examination fees .....................................................0802





Spending authority from offsetting collections, discretionary:20..................................Collected [Federal Grain Inspection Service fee] ...............1700

Spending authority from offsetting collections, mandatory:606056Collected [Inspection and Weighing Services] ...................18004..................................Collected [Warehouse Act fee] ...........................................1800

..................................–1Change in uncollected payments, Federal sources ............1801

..................................6Offsetting collections (previously unavailable) .................1802

..................................–3New and/or unobligated balance of spending authority from

offsetting collections temporarily reduced ....................1823

646058Spending auth from offsetting collections, mand (total) .......1850846058Budget authority (total) .............................................................1900







–6–6–7Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060..................................1Change in uncollected pymts, Fed sources, unexpired ..........3070


–41–2Obligated balance, start of year ............................................3100–4–41Obligated balance, end of year ..............................................3200


20..................................Budget authority, gross .........................................................4000Outlays, gross:

20..................................Outlays from new discretionary authority ..........................4010Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:

–20..................................Non-Federal sources [Federal Grain Inspection Service

fee] ...............................................................................4033


Outlays, gross:645846Outlays from new mandatory authority .............................4100

.................74Outlays from mandatory balances ....................................4101



–53–53–55Non-Federal sources .........................................................4123–4..................................Non-Federal sources [Warehouse Act fee] .........................4123


..................................1Change in uncollected pymts, Fed sources, unexpired .......4140

..................................3Budget authority, net (mandatory) ............................................4160

.................5–6Outlays, net (mandatory) ...........................................................4170

..................................3Budget authority, net (total) ..........................................................4180

.................5–6Outlays, net (total) ........................................................................4190


The USDA reorganization transferred the Warehouse Act program andthe Federal Grain Inspection Service (FGIS) to the Agricultural MarketingService (AMS). This newly named Fee Funded Inspection, Weighing, andExamination Services account will now be under AMS, and will containthe new discretionary Federal Grain Inspection Service fee ($20 million),the mandatory fees that USDA charges for licensing warehouses under theU.S. Warehouse Act ($4 million), and the mandatory fees that USDAcharges for grain inspection and weighing services ($60 million) will con-tinue to be deposited in this account and used by the agency to cover thecosts of services.

The Administration proposes establishing a new discretionary FGIS userfee to recover the full costs for discretionary programs under FGIS. FGISpromotes and enforces the accurate and uniform application of the UnitedStates Grain Standards Act and applicable provisions of the AgriculturalMarketing Act of 1946. FGIS identifies, evaluates, and implements newor improved techniques for measuring grain quality. FGIS also establishesand updates testing and grading standards to facilitate the marketing ofU.S. grain, oilseeds, and related products, and briefs foreign buyers, assessesforeign inspection and weighing techniques, and responds to foreign qualityand quantity complaints. Entities that receive the direct benefits from FGISservices should pay for the costs of these programs.



FEE FUNDED INSPECTION, WEIGHING, AND EXAMINATION SERVICES—Continued

USDA provides voluntary licensing services under U.S. Warehouse Actand charges fees for these services, which include licensing warehouseoperators who store agricultural products and licensing qualified personsto sample, inspect, weigh, and grade agricultural products.

AMS provides a uniform system for the inspection and weighing of grainfor marketing and trade purposes. Services provided under this system ac-curately and consistently describe the quality and quantity of grain and arefinanced through a fee-supported revolving fund. Fee-supported programsinclude direct services, supervision activities and administrative functions.Direct services include official grain inspection and weighing by AMSemployees at certain export ports as well as the inspection of U.S. grainshipped through Canada. AMS supervises the inspection and weighingactivities performed by its own employees. AMS also supervises 46 officialprivate and state agencies: 34 official private agencies and seven officialstate agencies that are designated to provide official inspection and/orweighing services in domestic markets; four official state agencies that aredelegated to provide mandatory official export inspection and weighingservices and designated to provide official domestic inspection andweighing services within the state; and one official state agency that isdelegated to provide mandatory official export inspection and weighingservices within the state. AMS provides an appeal service of original graininspections and a registration system for the grain exporting firms. Throughsupport from the Association of American Railroads and user fees, AMSconducts a railroad track scale testing program. In addition, AMS providesgrading services, on request, for rice and grain related products under theauthority of the Agricultural Marketing Act of 1946.

The Budget proposes increasing the obligation limitation on fees collectedfrom inspection and weighing services in order to allow AMS to fullysupport the Federal Grain Inspection Service's inspection and weighingprogram. In order to support these mandatory export services and the vol-untary domestic services and continue to meet the demand of the domesticand foreign grain and related commodity markets, the limitation on inspec-tion and weighing services expenses that is currently in place needs to beincreased to reflect the new discretionary user fees to cover the FGIS pro-gram, and to cover the full cost of the mandatory inspection and weighingprogram. This will provide AMS with the flexibility needed to respond tomarket needs.

2019 est.2018 est.2017 actualExport grain inspected and/or weighed (million metric tons):

868690.9By Federal personnel ............................................................................484855.1By delegated states/official agencies ..................................................

188188194.3Quantity of grain inspected (official inspections) domestically (millionmetric tons) ..............................................................................................Number of official grain inspections and reinspections:

105,000105,000115,972By Federal personnel ............................................................................3,300,0003,300,0003,360,221By delegated states/official agencies ..................................................

3,2003,2004,193Number of appeals (Grain, Rice, and Pulses) ...........................................

410410512Number of appeals to the Board of Appeals and Review (Grain, Rice, andPulses) .....................................................................................................

3.33.33.1Quantity of rice inspected (million metric tons) ........................................3.33.33.5Quantity of rice exports (million metric tons) ............................................



573632Reimbursable obligations: Personnel compensation: Full-time

permanent .............................................................................11.1

573632Total personnel compensation ...........................................11.9121010Civilian personnel benefits ........................................................12.1222Travel and transportation of persons .........................................21.0111Rental payments to others ........................................................23.2111Communications, utilities, and miscellaneous charges ............23.3322Other services from non-Federal sources ..................................25.2885Other goods and services from Federal sources ........................25.3


Employment Summary



✦

PERISHABLE AGRICULTURAL COMMODITIES ACT FUND



211Balance, start of year ....................................................................0100Receipts:

Current law:

121212License Fees and Defaults, Perishable Agricultural

Commodities Act Fund ......................................................1110


Current law:–11–11–12Perishable Agricultural Commodities Act Fund .....................2101

.................–1–1Perishable Agricultural Commodities Act Fund .....................2103

.................11Perishable Agricultural Commodities Act Fund .....................2132






Obligations by program activity:111111Perishable Agricultural Commodities Act ..................................0001




.................11Appropriation (previously unavailable) .............................1203



111112Appropriations, mandatory (total) .........................................1260262626Total budgetary resources available ..............................................1930




–11–11–10Outlays (gross) ......................................................................3020







Memorandum (non-add) entries:1..................................Total investments, SOY: Federal securities: Par value ...............5000

.................1.................Total investments, EOY: Federal securities: Par value ...............5001

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


The Acts are intended to ensure equitable treatment to farmers and othersin the marketing of fresh and frozen fruits and vegetables. Commissionmerchants, dealers, and brokers handling these products in interstate andforeign commerce are licensed. Complaints of violations are investigatedand violations dealt with by: a) informal agreements between the twoparties; b) formal decisions involving payment of reparation awards; c)suspension or revocation of license and/or publication of the facts; or d)monetary penalty in lieu of license suspension or revocation.

The Perishable Agricultural Commodities Act requires traders to havetrust 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 thatpayment is due. The Act provides permanent authority to the Secretary ofAgriculture to set license and reparation complaint filing fees.

PERISHABLE AGRICULTURAL COMMODITIES ACT ACTIVITIES2019 est.2018 est.2017 actual

92%92%93%Percentage of informal reparation complaints completed within time framegoal ..........................................................................................................



Direct obligations:776Personnel compensation: Full-time permanent .........................11.1222Civilian personnel benefits ........................................................12.1223Other goods and services from Federal sources ........................25.3


Employment Summary



✦

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


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, andother related operating expenses, except for: (1) transfers to the Department ofCommerce as authorized by the Fish and Wildlife Act of August 8, 1956; (2) transfersotherwise provided in this Act; and (3) not more than $20,489,000 for formulationand administration of marketing agreements and orders pursuant to the AgriculturalMarketing Agreement Act of 1937 and the Agricultural Act of 1961.




21,50320,74921,205Balance, start of year ....................................................................0100Receipts:

Current law:

11,00010,79210,43430 Percent of Customs Duties, Funds for Strengthening

Markets, Income and Supply (section 32) .........................1110

11.................General Fund Payment, Funds for Strengthening Markets,

Income, and Supply (section 32) .......................................1140

11,00110,79310,434Total current law receipts ..................................................1199

11,00110,79310,434Total receipts .............................................................................1999

32,50431,54231,639Total: Balances and receipts .....................................................2000Appropriations:

Current law:

–10,624–10,371–10,930Funds for Strengthening Markets, Income, and Supply (section

32) ....................................................................................2101

–125–126–166Funds for Strengthening Markets, Income, and Supply (section

32) ....................................................................................2103

337256.................Funds for Strengthening Markets, Income, and Supply (section

32) ....................................................................................2132

747780Funds for Strengthening Markets, Income, and Supply (section

32) ....................................................................................2132

.................125126Funds for Strengthening Markets, Income, and Supply (section

32) ....................................................................................2134

–10,338–10,039–10,890Total current law appropriations .......................................2199

–10,338–10,039–10,890Total appropriations ..................................................................2999

22,16621,50320,749Balance, end of year ..................................................................5099



Obligations by program activity:465465465Child nutrition program purchases ...........................................000149100270Emergency surplus removal ......................................................0002

.................54.................Direct payments ........................................................................000355.................State option contract .................................................................000433.................Removal of defective commodities ............................................0005551Disaster Relief ...........................................................................0006

206206.................2008 Farm Bill Specialty Crop Purchases ..................................0007

733838736Subtotal, Commodity program payments .......................................0091565653Administrative expenses ...........................................................0101

789894789Total direct program ......................................................................0192

789894789Total direct obligations ..................................................................0799

447Funds for Strengthening Markets, Income, and Supply (section

32) (Reimbursable) ...............................................................0811





Appropriations, discretionary:–337–256.................Appropriations temporarily reduced ..................................1132

Appropriations, mandatory:10,62410,37110,930Appropriation (special or trust fund) .................................1201

125126166Appropriation (previously unavailable) .............................1203–9,394–9,044–9,672Transferred to Food and Nutrition Service [012–3539] .......1220–155–155–145Transferred to Department of Commerce [013–5139] ........1220



–74–77–80Appropriations and/or unobligated balance of


.................–125–126Appropriations precluded from obligation .........................1234

1,1261,096842Appropriations, mandatory (total) .........................................1260Spending authority from offsetting collections, mandatory:


447Spending auth from offsetting collections, mand (total) .......1850793844849Budget authority (total) .............................................................1900794899851Total budgetary resources available ..............................................1930










–337–256.................Budget authority, gross .........................................................4000Outlays, gross:

–337–256.................Outlays from new discretionary authority ..........................4010



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



Mandatory:1,1301,100849Budget authority, gross .........................................................4090



Offsetting collections (collected) from:–4–4–6Federal sources: ................................................................4120


1,1261,096842Budget authority, net (mandatory) ............................................41601,1281,076798Outlays, net (mandatory) ...........................................................4170789840842Budget authority, net (total) ..........................................................4180791820798Outlays, net (total) ........................................................................4190

The Agriculture Appropriations Act of 1935 (7 U.S.C. 612c) establishedthe Section 32 program which provides that 30 percent of U.S. Customsreceipts for each calendar year are transferred to this account within theDepartment of Agriculture. The purpose of the Section 32 program is three-fold: to encourage the exportation of agricultural commodities and products,to encourage domestic consumption of agricultural products by divertingthem, and to reestablish farmers' purchasing power by making paymentsin connection with the normal production of any agricultural commodityfor domestic consumption. There is also a requirement that the fundsavailable under Section 32 shall be principally devoted to perishable agri-cultural commodities (e.g., fruits and vegetables). Program funds are usedfor a variety of purposes in support of the three primary purposes specifiedin the program's authorizing legislation. Funds may be used to stabilizemarket conditions through purchasing surplus commodities which are inturn, distributed to nutrition assistance programs. A General Provision inthis Budget proposes that carryover funds, with certain limitations, maybe used to make direct payments under clause 3 of the authorizing legisla-tion. Program funds are also used to purchase commodities that are distrib-uted to schools as part of Child Nutrition Programs entitlements. Further-more, funds are transferred to the Food and Nutrition Service for commoditypurchases under section 6 of the National School Lunch Act and other au-thorities specified in the Child Nutrition Programs statutes.



Direct obligations:181816Personnel compensation: Full-time permanent .........................11.1555Civilian personnel benefits ........................................................12.1111Travel and transportation of persons .........................................21.0251Transportation of things ............................................................22.0111Communications, utilities, and miscellaneous charges ............23.311.................Printing and reproduction .........................................................24.0175Other services from non-Federal sources ..................................25.2

283026Other goods and services from Federal sources ........................25.311.................Operation and maintenance of equipment ................................25.7

731825733Supplies and materials: Grants of commodities to States .........26.0..................................1Equipment .................................................................................31.0



Employment Summary



✦

Trust Funds

EXPENSES AND REFUNDS, INSPECTION AND GRADING OF FARM PRODUCTS




Current law:

155166158Deposits of Fees, Inspection and Grading of Farm Products,

AMS ...................................................................................1130

11.................Interest on Investments in Public Debt Securities, AMS ........1140

222Payments from General Fund, Wool Research, Development,

and Promotion Trust Fund .................................................1140

158169160Total current law receipts ..................................................1199

158169160Total receipts .............................................................................1999


Current law:

–162–161–160Expenses and Refunds, Inspection and Grading of Farm

Products ............................................................................2101




Obligations by program activity:777Dairy products ...........................................................................0001

656562Specialty Crops .........................................................................0002212123Meat grading .............................................................................0003474756Poultry products ........................................................................0004242319Miscellaneous agricultural commodities ...................................0005






222Appropriations Farm Bill (AMA SPM,and NOCS) transferred

from other accts [012–4336] ........................................1221












Memorandum (non-add) entries:1..................................Total investments, SOY: Federal securities: Par value ...............5000

.................1.................Total investments, EOY: Federal securities: Par value ...............5001


Expenses and refunds, inspection and grading of farm products.—TheAgricultural Marketing Service's commodity grading programs providegrading, examination, and certification services for a wide variety of freshand processed food commodities using Federally approved grade standardsand purchase specifications. Commodities graded include poultry, livestock,meat, dairy products, and fresh and processed fruits and vegetables. Theseprograms use official grade standards which reflect the relative quality ofa particular food commodity based on laboratory testing and characteristicssuch as taste, color, weight, and physical condition. Producers voluntarilyrequest grading and certification services which are provided on a fee forservice basis.





121212Other personnel compensation ..............................................11.5

918790Total personnel compensation ...........................................11.9303031Civilian personnel benefits ........................................................12.1111Benefits for former personnel ....................................................13.0

101010Travel and transportation of persons .........................................21.0111Rental payments to GSA ............................................................23.1222Rental payments to others ........................................................23.2323Communications, utilities, and miscellaneous charges ............23.3

111414Other services from non-Federal sources ..................................25.2101110Other goods and services from Federal sources ........................25.3111Operation and maintenance of equipment ................................25.7111Supplies and materials .............................................................26.0111Equipment .................................................................................31.0222Grants, subsidies, and contributions ........................................41.0


Employment Summary


1,3531,3531,314Direct civilian full-time equivalent employment ............................1001

✦

MILK MARKET ORDERS ASSESSMENT FUND



Obligations by program activity:524945Administration ..........................................................................0801988Marketing service ......................................................................0802



Spending authority from offsetting collections, mandatory:615753Collected ...........................................................................1800615753Total budgetary resources available ..............................................1930





615753Outlays from new mandatory authority .............................4100Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–61–57–53Non-Federal sources .........................................................4123

...................................................Budget authority, net (total) ..........................................................4180

...................................................Outlays, net (total) ........................................................................4190

The Milk Market Orders Assessment Fund displays the non-Federal costsof administrating Federal milk marketing orders, and includes salaries andexpenses, travel, and rent for office space. The Agricultural MarketingService reports this account in the President's Budget because milk market-ing administration staff are excepted service. Salaries, health insurance,TSP contributions and all other federal benefits are paid by the marketingorder funds and as a result there are no costs to the Federal government.As a result, corresponding dollars are reported for presentation purposesonly. For Federal funds for the Secretary's oversight responsibilities ofMarketing Orders, please see AMS's Section 32 account.

The Secretary of Agriculture is authorized by the Agricultural MarketingAgreement Act of 1937, as amended under certain conditions to issueFederal milk marketing orders establishing minimum prices which handlersare required to pay for milk purchased from producers. There are currently10 Federally-sanctioned milk market orders in operation. Market adminis-trators are appointed by the Secretary and are responsible for carrying outthe terms of specific marketing orders. Their operating expenses are fin-anced by assessments on regulated handlers and partly by deductions fromproducers, which are reported to the Agricultural Marketing Service. Themajority of these funds are collected and deposited in checking and savingsaccounts in local banks, and disbursed directly for direct disbursement bythe market administrator. A portion of the funds collected may be investedin securities such as certificates of deposit. Expenses of local offices aremet from an administrative fund and a marketing service fund, which areprescribed in each order. The administrative fund is derived from proratedhandler assessments. The marketing service fund of the individual orderdisseminates market information to producers who are not members of aqualified cooperative. It also provides for the verification of the weights,sampling, and testing of milk from these producers. The cost of these ser-vices is borne by such producers. The maximum rates for administrativeassessment and for marketing services are set forth in each order and ad-justments below these rates are made from time to time upon recommend-ations by the market administrator and upon approval of the AgriculturalMarketing Service to provide reserves at about a six month operating level.Upon termination of any order, the statute provides for distributing theproceeds from net assets pro rata to contributing handlers or producers, asthe case may be.





353331Total personnel compensation ...........................................11.9121110Civilian personnel benefits ........................................................12.1333Travel and transportation of persons .........................................21.0554Rental payments to others ........................................................23.2222Communications, utilities, and miscellaneous charges ............23.3111Other services from non-Federal sources ..................................25.2111Supplies and materials .............................................................26.0211Equipment .................................................................................31.0


Employment Summary



✦


Trust Funds—Continued

FARM PRODUCTION AND CONSERVATIONFederal Funds

FARM PRODUCTION AND CONSERVATION BUSINESS CENTER


For necessary expenses of the Farm Production and Conservation Business Center,$196,402,000, to remain available until expended: Provided, That $60,228,000 ofamounts appropriated for the current fiscal year pursuant to section 1241(a) of theFarm Security and Rural Investment Act of 1985 (16 U.S.C. 3841(a)) shall betransferred to and merged with this account.



Obligations by program activity:256..................................Direct program activity ..............................................................000116..................................Reimbursable program activity .................................................0801

272..................................Total new obligations, unexpired accounts ....................................0900


Appropriations, discretionary:196..................................Appropriation ....................................................................1100

Appropriations, mandatory:60..................................Appropriations transferred from other acct [012–1004] ....1221

Spending authority from offsetting collections, discretionary:16..................................Collected ...........................................................................1700

272..................................Budget authority (total) .............................................................1900272..................................Total budgetary resources available ..............................................1930


272..................................New obligations, unexpired accounts ....................................3010–221..................................Outlays (gross) ......................................................................3020

51..................................Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

51..................................Obligated balance, end of year ..............................................3200


212..................................Budget authority, gross .........................................................4000Outlays, gross:

173..................................Outlays from new discretionary authority ..........................4010Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–16..................................Federal sources .................................................................4030

Mandatory:60..................................Budget authority, gross .........................................................4090

Outlays, gross:48..................................Outlays from new mandatory authority .............................4100

256..................................Budget authority, net (total) ..........................................................4180205..................................Outlays, net (total) ........................................................................4190

The FPAC Business Center (FBC) is a centralized operations officewithin the FPAC Mission Area and headed by the Chief Operating Officer(COO), who is also the Executive Vice President, Commodity CreditCorporation (CCC). The FBC is responsible for financial management,budgeting, human resources, information technology, acquisitions/procure-ment, customer experience, internal controls, risk management, strategicand annual planning, and other similar activities for the FPAC Missionarea and component agencies, including the Farm Service Agency (FSA),the Natural Resources Conservation Service (NRCS), and Risk ManagementAgency (RMA). The FBC ensures that systems, policies, procedures, andpractices are developed that provide a consistent enterprise-wide view thatencompasses FSA, NRCS, and RMA and the services they require fromthose functions to effectively and efficiently deliver programs to FPACcustomers. The COO has the responsibility to ensure that FPAC adminis-trative services are provided efficiently, effectively, and professionally andwith a commitment to excellent customer service for FPAC, its customers,including farmers, ranchers, and forest landowners. The 2019 Budget pro-poses total funding of $272.7 million for FBC, of which $212.5 million isfrom discretionary sources and $60.2 million is from mandatory sources.



Direct obligations:152..................................Personnel compensation: Full-time permanent .........................11.159..................................Civilian personnel benefits ........................................................12.15..................................Travel and transportation of persons .........................................21.01..................................Transportation of things ............................................................22.01..................................Communications, utilities, and miscellaneous charges ............23.3

30..................................Other services from non-Federal sources ..................................25.22..................................Supplies and materials .............................................................26.06..................................Equipment .................................................................................31.0

256..................................Direct obligations ..................................................................99.016..................................Reimbursable obligations .....................................................99.0

272..................................Total new obligations, unexpired accounts ............................99.9

Employment Summary


1,750..................................Direct civilian full-time equivalent employment ............................1001

✦

RISK MANAGEMENT AGENCYFederal Funds


For necessary expenses of the Risk Management Agency, $37,942,000: Provided,That not to exceed $1,000 shall be available for official reception and representationexpenses, as authorized by 7 U.S.C. 1506(i).

In addition, $20,000,000 is appropriated for purposes under this heading:Provided, That, notwithstanding 7 U.S.C. 1508(b)(5)(D) and 7 U.S.C. 1508(c)(10)(B),the first $20,000,000 of the amounts collected in fiscal year 2019 pursuant to 7U.S.C. 1508(b)(5) and 7 U.S.C. 1508(c)(10) shall be credited to this account:Provided further, That the sum herein appropriated in this paragraph from thegeneral fund shall be reduced as such collections are received during fiscal year2019 so as to result in a fiscal year 2019 appropriation from the general fund estim-ated at $0.




Obligations by program activity:478483Salaries & Expenses ..................................................................000120..................................Reimbursable program activity .................................................0801





387584Appropriation, discretionary (total): ......................................1160Appropriations, mandatory:

99.................Appropriations transferred from other acct [012–4085] ....1221Spending authority from offsetting collections, discretionary:

20..................................Collected ...........................................................................1700678484Budget authority (total) .............................................................1900678484Total budgetary resources available ..............................................1930







THE BUDGET FOR FISCAL YEAR 201990 Farm Production and ConservationFederal Funds






Offsetting collections (collected) from:–20..................................Non-Federal sources .........................................................4033

Mandatory:99.................Budget authority, gross .........................................................4090

Outlays, gross:77.................Outlays from new mandatory authority .............................410029.................Outlays from mandatory balances ....................................4101

916.................Outlays, gross (total) .............................................................4110478484Budget authority, net (total) ..........................................................4180507987Outlays, net (total) ........................................................................4190

The Risk Management Agency (RMA) was established under provisionsof the Federal Agriculture Improvement and Reform Act of 1996 (1996Act), P.L. 104–127, approved April 4, 1996. RMA is responsible for ad-ministration and oversight of the crop insurance program as authorizedunder the Federal Crop Insurance Act (7 U.S.C.1501 et seq.). This accountincludes resources to maintain ongoing operations of the Federal crop in-surance program and other functions assigned to RMA such as risk man-agement education. The 2019 Budget requests $38 million in discretionaryfunds. In addition, this funding is enhanced by the requested appropriationsof $20 million to be offset with the first $20 million in fees collected fromthe sale of crop insurance policies. RMA also plans to transfer $9 millionfrom mandatory FCIC funding for reviews, compliance and integrity undersection 516(b)(2)(C) to the S&E account in 2019. By having the offsettingcollections from the fees and transferring the additional mandatory fundsinto the S&E account, RMA will be able to use the full $67 million in fundsmore efficiently and flexibly to maintain operations.

The request for the direct appropriation for RMA S&E is reduced startingin 2019 to reflect the activities of the new Farm Production and Conserva-tion (FPAC) Business Center, which has centralized a number of adminis-trative and information technology operations for RMA, NRCS and FSAthat were formerly performed within each of those individual agencies.

The Federal crop insurance program is delivered through private insurancecompanies. Certain administrative expenses incurred by the companies arereimbursed through mandatory funding that is reflected in the FCIC Fundaccount. The funding in this account appropriately covers administrativeactivities for RMA. RMA is also provided approximately $27 million inadditional mandatory funding that is authorized in the Farm Bill for specificadministrative and IT related costs, and spent directly out of the FCIC fund.



354747Direct obligations: Personnel compensation: Full-time

permanent .............................................................................11.1


.................22Travel and transportation of persons .........................................21.0

.................33Rental payments to GSA ............................................................23.1

.................11Communications, utilities, and miscellaneous charges ............23.3

.................23Advisory and assistance services ..............................................25.1

.................65Other goods and services from Federal sources ........................25.3

.................77Operation and maintenance of equipment ................................25.7

458483Direct obligations ..................................................................99.022..................................Reimbursable obligations .....................................................99.0


Employment Summary



✦

CORPORATIONS

The following corporations and agencies are hereby authorized to make expendit-ures, within the limits of funds and borrowing authority available to each suchcorporation or agency and in accord with law, and to make contracts and commit-ments without regard to fiscal year limitations as provided by section 104 of theGovernment Corporation Control Act as may be necessary in carrying out the pro-grams set forth in the budget for the current fiscal year for such corporation oragency, except as hereinafter provided.


✦

FEDERAL CROP INSURANCE CORPORATION FUND

For payments as authorized by section 516 of the Federal Crop Insurance Act (7U.S.C. 1516), such sums as may be necessary, to remain available until expended.




Obligations by program activity:6,1446,362939Indemnities ...............................................................................00011,3551,3551,489Delivery Expenses ......................................................................00021,1211,1012,594Underwriting Gains ...................................................................0003

647261Federal Crop Insurance Act Initiatives .......................................0004.................43AMA ...........................................................................................0005

8,6848,8945,086Total direct obligations ..................................................................07993,6393,7663,657Reimbursable program - indemnities ........................................0801

.................2020Reimbursable program - programs and activities .....................0802

3,6393,7863,677Total reimbursable obligations ......................................................0899





Appropriations, discretionary:–4..................................Appropriations permanently reduced ................................1130

Appropriations, mandatory:8,7018,9135,101Appropriation ....................................................................1200

–5–5–5Appropriations transferred to other acct [012–0502] ........1220–9–9–9Appropriations transferred to other acct [012–2707] ........1220444Appropriations transferred from other acct [012–4336] ....1221



8,6918,8995,088Appropriations, mandatory (total): ........................................1260Spending authority from offsetting collections, mandatory:

3,6603,7863,677Collected ...........................................................................1800

.................–1–1New and/or unobligated balance of spending authority from


3,6603,7853,676Spending auth from offsetting collections, mand (total): ......185012,34712,6848,764Budget authority (total) .............................................................190012,92813,2619,340Total budgetary resources available ..............................................1930



2,6654,2773,398Unpaid obligations, brought forward, Oct 1 ..........................300012,32312,6808,763New obligations, unexpired accounts ....................................3010

91DEPARTMENT OF AGRICULTURERisk Management Agency—Continued


FEDERAL CROP INSURANCE CORPORATION FUND—Continued



–12,355–14,292–7,883Outlays (gross) ......................................................................3020..................................–1Recoveries of prior year unpaid obligations, unexpired .........3040

2,6332,6654,277Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

2,6654,2773,398Obligated balance, start of year ............................................31002,6332,6654,277Obligated balance, end of year ..............................................3200


–4..................................Budget authority, gross .........................................................4000Outlays, gross:

–4..................................Outlays from new discretionary authority ..........................4010Mandatory:


6,5289,4384,655Outlays from new mandatory authority .............................41005,8314,8543,228Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:–3,660–3,786–3,677Non-Federal sources .........................................................41238,6878,8985,087Budget authority, net (total) ..........................................................41808,69510,5064,206Outlays, net (total) ........................................................................4190


201613Unexpired unavailable balance, SOY: Appropriations ................5096202016Unexpired unavailable balance, EOY: Appropriations ................5098

The Federal Crop Insurance Corporation (FCIC) is administered by theRisk Management Agency (RMA), and provides economic stability to ag-riculture through crop insurance. The Federal crop insurance program in-cludes products providing crop yield and revenue insurance, pasture, ran-geland forage, and livestock insurance, as well as other educational andrisk mitigation initiatives/tools. The Federal crop insurance programprovides farmers with a risk management program that protects againstagricultural production losses due to natural disasters such as drought, ex-cessive moisture, hail, wind, lightning, and insects. In addition to thesecauses, revenue insurance programs are available to protect against loss ofrevenue. Federal crop insurance is available for more than 350 differentcommodities in over 3,066 counties covering all 50 states, and Puerto Rico.For the 2017 Crop Year, there were 1.12 million policies written with $10.1billion in premiums.

Federal crop insurance policies are sold and serviced by 16 private cropinsurance companies that share in the risk on the policies they sell underterms set out by USDA's Standard Reinsurance Agreement. The risk sharingis designed to be in favor of the companies, not one for one with the gov-ernment. In most years the companies realize underwriting gains. In badyears, the companies' underwriting losses are minimalized because thegovernment takes on more of the risk and ultimately back-stops the programafter a certain level of loss. Currently, the government provides companies,on average, $1.1 billion a year in underwriting gains. In addition, the gov-ernment pays the companies an Administrative and Operating (A&O)subsidy to offset the costs incurred to carry out the program. They are re-imbursed on average for about 14.5 percent of the premiums sold. Thegovernment currently pays $1.4 billion annually for A&O. For the 2019Budget, the payments to the companies are projected to be $2.6 billion incombined subsidies.

The 2019 Budget requests funding to support $12.3 billion in obligations.Funding estimates for 2018 and 2019 as well as the outyears are based ona 1.0 loss ratio, which is the statutory target loss ratio used for estimatingfuture crop insurance costs.

The minimum level of coverage is Catastrophic (CAT) crop insurance,which compensates the farmer for losses exceeding 50 percent of the indi-vidual's average yield at 55 percent of the expected market price; the

premium is entirely subsidized. The cost to the producer for CAT coverageis an annual administrative fee of $300 per crop per county.

Additional coverage is available to producers and is commonly referredto as "buy-up" coverage. Policyholders can elect to be paid up to 100 per-cent of the market price established by FCIC for each unit of productiontheir actual yield is less than the individual yield guarantee. Premium ratesfor additional coverage depend on the level of protection selected and varyfrom crop to crop and county to county. They also depend on the producer'saverage production history (APH). Producers are assessed a fee of $30 percrop, per county, in addition to a share of the premium. The additionallevels of insurance coverage are more attractive to farmers due to availab-ility of optional units, other policy provisions not available with CATcoverage, and the ability to obtain a level of protection that permits themto use crop insurance as loan collateral and to achieve greater financialsecurity.

Revenue protection for specified products is provided by extending tradi-tional crop insurance protection, based on actual production history, to in-clude price variability based on futures market prices. Producers have achoice of revenue protection (protection against loss of revenue caused bylow prices, low yields, or a combination of both) or yield protection (pro-tection for production losses only) within one Basic Provision and the ap-plicable Crop Provision.

Currently for revenue protection, the farmer can opt to cover the projectedor the harvest price. Traditional revenue insurance only protects against aprojected price, where the farmer is guaranteed a price at the time ofplanting. Revenue coverage that protects the price at the time of harvestguarantees the price to the farmer for the higher of the projected price orthe harvest price. This additional revenue protection allows farmers tohedge against low prices at harvest. The harvest price protection policiesare more costly than traditional revenue coverage and therefore moreheavily subsidized by the government. Almost all farmers choose the harvestprice option because taxpayers pay such a large portion of the extrapremium.

A crop insurance policy also contains coverage for when a producer isprevented from planting their crop due to weather and other perils. Whenan insured producer is unable to plant their crop within the planting timeperiod because of excessive drought or moisture, they may file a preventedplanting claim, which pays a portion of their full coverage level. It is op-tional for the producer to plant a second crop on the acres. If the producerdoes, the prevented planting claim on the first crop is reduced and theproducer's APH is updated to incorporate that year. If the producer doesnot plant a second crop, they get their full prevented planting claim, andtheir APH is not affected in subsequent years for premium calculationpurposes.

The 2019 Budget proposes to permanently cancel $4 million in funds inthis account from the Agricultural Management Assistance Program (AMA).This program is authorized by section 524(b) of the Federal Crop InsuranceAct (7 U.S.C. 1524(b)), as amended. It authorizes $10 million annually forthe program, of which RMA receives 40 percent. This program is imple-mented by RMA, the Agricultural marketing Service, and the Natural Re-sources Conservation Service. The RMA activities are carried out in 16states in which participation in the Federal Crop Insurance Program ishistorically low. The program provides assistance to producers to reducetheir costs for crop insurance.

The following table illustrates Crop Year statistics used to prepare the2019 Budget. Crop Year is generally all activity for crops from July 1-June30 of a given year.

2018 est.2017 est.2016 est.505050Number of States ......................................................................................

3,0663,0663,066Number of counties ..................................................................................102,451105,941100,527Insurance in force (millions) .....................................................................

312311290Insured acreage (millions) ........................................................................

3,6393,7663,657Producer premium (millions) ....................................................................6,1446,3627,397Premium subsidy (millions) ......................................................................

THE BUDGET FOR FISCAL YEAR 201992 Risk Management Agency—ContinuedFederal Funds—Continued

9,78310,12811,053Total premium (millions) ..............................................................

9,78310,1284,569Indemnities (millions) ..............................................................................1.001.00.42Loss ratio ..................................................................................................

Financing.—The Corporation is authorized under the Federal Crop Insur-ance Act, as amended, to use funds from the issuance of capital stock whichprovides working capital for the Corporation.

Receipts, which are for deposit to this fund, mainly come from premiumspaid by farmers. The principal payments from this fund are for indemnitiesto insured farmers, and administrative expenses for approved insuranceproviders.

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

The following table illustrates premium subsidies and indemnities for allcrop years as expected to occur during the period of October 1- September30 for fiscal years 2018 and 2019.

PREMIUM AND SUBSIDY

[In millions of dollars]2019 est.2018 est.

Premiums:6,0346,259Additional coverage premium subsidy .........................................................................110103Catastrophic coverage premium subsidy ....................................................................

6,1446,362Subtotal, premium subsidy .....................................................................................3,6393,766Producer premium .......................................................................................................

9,81210,128Total premiums ...................................................................................................

Indemnities:9,68010,025Additional coverage .....................................................................................................103103Catastrophic coverage ................................................................................................

9,78310,128Total indemnities ................................................................................................

NET INCOME OR LOSS (-) ON INSURANCE OPERATIONS

[In millions of dollars]2019 est.2018 est.

–6,144–6,362Producer premium less indemnities ................................................................................00Interest expense, net .......................................................................................................

–1,355–1,355Delivery expenses ............................................................................................................2444Other income or expense, net (CAT fees) ..........................................................................

–64–76Federal Crop Insurance Act Initiatives .............................................................................1,1211,101Reinsurance underwriting gain (+) or loss (-) .................................................................

—6,418–6,648Net income or loss (-) ......................................................................................................



Direct obligations:

647664Other services-Agriculture Risk Protection Act of 2000

Initiative ................................................................................25.2

2,4762,4564,083Other services from non-Federal sources ..................................25.26,1446,362939Insurance claims and indemnities ............................................42.0

8,6848,8945,086Direct obligations ..................................................................99.0Reimbursable obligations:

3,6393,7663,657Insurance claims and indemnities ............................................42.0.................2020Programs and Activities ............................................................42.0

3,6393,7863,677Reimbursable obligations .....................................................99.0


FEDERAL CROP INSURANCE CORPORATION FUND

(Legislative proposal, subject to PAYGO)

The 2019 Budget includes three proposals that are designed to optimizethe current crop insurance program so that it will continue to provide aquality safety net at a lower cost, as well as introduce a measure of meanstesting to the beneficiaries of the crop insurance subsidies:

1. Reduce Premium Subsidies for Crop Insurance: The 2019 Budgetproposes to reduce the percent premium subsidy provided under the Federalcrop insurance program. Specifically, the premium subsidy for policieswith harvest price coverage will be reduced by 15 percentage points,

policies without harvest price coverage would be reduced by 10 percentagepoints. The proposal would not impact premium subsidy associated withcatastrophic coverage. It would reduce the generous subsidies that are ar-guably no longer necessary to encourage participation, as crop insuranceis now an established part of the farm industry's business plans. (Saves$22.4 billion over 10 years)

2. Better Control Underwriting Gains to Insurance Companies: TheBudget proposes to reduce the generous subsidies provided to participatinginsurance companies by placing a "cap" on underwriting gains at 12 percent.A USDA commissioned study found that when compared to other privatecompanies, crop insurance companies rate of return should be around 12percent, but that it is currently expected to be 14 percent. The proposal willensure that participating crop insurance companies receive a reasonablerate of return given the risks associated with their participation in the cropinsurance program. (Saves $3 billion over 10 years)

3. In addition to these proposals, the 2019 Budget proposes to target cropinsurance subsidies to those producers that have an Adjusted Gross Income(AGI) of $500,000 or less. It is hard to justify providing assistance tofarmers with incomes over half a million dollars. Doing so undermines thecredibility and the purpose of farm programs. The current AGI limitationof $900,000 is overly generous and does not apply to crop insurance sub-sidies. Strengthening the income test for crop insurance will improve pro-gram integrity. (Saves $724 million over 10 years)

Collectively, the changes are expected to save $26 billion over 10 years.✦

FARM SERVICE AGENCYFederal Funds



For necessary expenses of the Farm Service Agency, $920,490,000: Provided,That the Secretary is authorized to use the services, facilities, and authorities (butnot the funds) of the Commodity Credit Corporation to make program payments forall programs administered by the Agency: Provided further, That other funds madeavailable to the Agency for authorized activities may be advanced to and mergedwith this account: Provided further, That funds made available to county committeesshall remain available until expended.




Obligations by program activity:9201,1981,172Agricultural Sector Support .......................................................0001

9201,1981,172Subtotal, direct program ...............................................................0300262305307Farm loans ................................................................................0801

43755Other programs .........................................................................0802133Other Credit Programs ...............................................................0803

267345365Total reimbursable obligations ......................................................0899



452918Unobligated balance brought forward, Oct 1 .........................1000

..................................10Unobligated balance transfers between expired and unexpired

accounts ...........................................................................1012



Appropriations, discretionary:9201,1981,206Appropriation ....................................................................1100



335361367Spending auth from offsetting collections, disc (total) .........1750

93DEPARTMENT OF AGRICULTUREFarm Service Agency

Federal Funds




1,2551,5591,573Budget authority (total) .............................................................19001,3001,5881,602Total budgetary resources available ..............................................1930






















9201,1981,206Budget authority, net (discretionary) .........................................40709761,2151,180Outlays, net (discretionary) .......................................................40809201,1981,206Budget authority, net (total) ..........................................................41809761,2151,180Outlays, net (total) ........................................................................4190

The Farm Service Agency (FSA) was established October 3, 1994, pur-suant to the Federal Crop Insurance Reform and Department of AgricultureReorganization Act of 1994, P.L. 103–354. The Department of AgricultureReorganization Act of 1994 was amended on April 4, 1996, by the FederalAgriculture Improvement and Reform Act of 1996 (1996 Act), P.L.104–127. FSA administers a variety of activities, such as farm incomesupport programs through various loans and payments; the ConservationReserve Program (CRP); the Emergency Conservation Program; the Haz-ardous Waste Management Program; the Commodity Operation Programsincluding the warehouse examination function; farm ownership, farm op-erating, emergency disaster, and other loan programs; and the NoninsuredCrop Disaster Assistance Program, which provides crop loss protectionfor growers of many crops for which crop insurance is not available. FSAalso assists in the administration of several conservation cost-share programsfinanced by the Commodity Credit Corporation (CCC), including theGrasslands Reserve Program (GRP).

This consolidated administrative expenses account includes funds tocover expenses of programs administered by, and functions assigned to,FSA. The funds consist of a direct appropriation, transfers from programloan accounts under credit reform procedures, user fees, and advances andreimbursements from other sources. This is a consolidated account for ad-ministrative expenses of national, regional, State, and county offices. The2019 Budget requests a total of $1.19 billion for administrative expenses.

USDA's Service Center Agencies comprise FSA, Natural ResourcesConservation Service, and Rural Development offices that act as separatefranchises, with offices often located adjacent to each other. Prior effortsto improve the efficiency of USDA's county-based offices have resultedin significant co-location and introduction of new information technologyto simplify customer transactions.

Farm programs.—These programs provide an economic safety netthrough farm income support to eligible producers, cooperatives, and asso-ciations to help improve the economic stability and viability of the agricul-tural sector and to ensure the production of an adequate and reasonablypriced supply of food and fiber. Activities of the Agency include providingprice loss coverage and agriculture risk coverage, providing marketing as-sistance loans and loan deficiency payments enabling recipients to continuefarming operations without marketing their product immediately afterharvest, and providing a financial safety net to eligible producers whennatural disasters adversely affect their farming operation. These programsrange from covering losses of grazing under the Livestock Forage DisasterProgram; orchard trees and nursery to help replant or rehabilitate treesunder the Tree Assistance Program; production under the Noninsured CropDisaster Assistance Program; livestock under the Livestock IndemnityProgram; and livestock, honeybees and farm raised fish for losses that arenot covered under the previously listed programs under the EmergencyAssistance for Livestock, Honeybees, and Farm Raised Fish.

Farm program activities include the following functions dealing with theadministration of programs carried out through the farmer committee systemof the FSA: (a) developing program regulations and procedures; (b) collect-ing and compiling basic data for individual farms; (c) establishing individualfarm base acres for farm planting history; (d) notifying producers of estab-lished base acres and farm planting histories; (e) conducting referendumsand certifying results; (f) accepting farmer certifications and checkingcompliance for specific purposes; (g) processing commodity loan documentsand issuing checks; (h) processing price loss coverage and agricultural riskcoverage payments and issuing checks; (i) certifying payment eligibilityand monitoring payment limitations; and (j) processing farm storage facilityloans and issuing checks.

Conservation and environment.—These programs assist agriculturalproducers and landowners in implementing practices to conserve soil, water,air, and wildlife resources on America's farmland and ranches to help protectthe human and natural environment. Objectives of the Agency includeimproving environmental quality, protecting natural resources, and enhan-cing habitat for fish and wildlife, including threatened and endangeredspecies; providing Emergency Conservation Program funding for farmersand ranchers to rehabilitate damaged farmland and for carrying out emer-gency conservation measures during periods of severe drought or flooding;protecting the public health of communities through implementation of theHazardous Waste Management Program; and implementing contracting,financial reporting, and other administrative operations processes. Theseactivities include: (a) processing producer requests for conservation cost-sharing and issuing conservation reserve rental payments; and (b) transfer-ring funds to the Natural Resources Conservation Service and other agenciesfor other conservation programs.

Farm loans (reimbursable).—Provides for administering the direct andguaranteed loan programs covered under the Agricultural Credit InsuranceFund (ACIF). Objectives of the Agency include improving the economicviability of farmers and ranchers, reducing losses in direct loan programs,responding to loan making and servicing requests, and maximizing financialand technical assistance to underserved groups. Activities include reviewingapplications, servicing the loan portfolio, and providing technical assistanceand guidance to borrowers. Funding for farm loan administrative expensesis transferred to this consolidated account from the ACIF. Appropriationsrepresenting subsidy amounts necessary to support the individual programloan levels under Federal Credit Reform are made to the ACIF account.

Other reimbursable activities.—FSA collects a fee or is reimbursed forperforming a variety of services for other Federal agencies, CCC, industry,

THE BUDGET FOR FISCAL YEAR 201994 Farm Service Agency—ContinuedFederal Funds—Continued

and others, including certain administrative support services for countyoffice services provided to Federal and non-Federal entities, including avariety of services to producers.



Direct obligations:82164160Personnel compensation: Full-time permanent .........................11.1296064Civilian personnel benefits ........................................................12.13115Travel and transportation of persons .........................................21.0121Transportation of things ............................................................22.0

203133Communications, utilities, and miscellaneous charges ............23.3111Printing and reproduction .........................................................24.0

235248262Other services from non-Federal sources ..................................25.2111Supplies and materials .............................................................26.0112Equipment .................................................................................31.0


9201,1981,173Direct obligations ..................................................................99.0267345364Reimbursable obligations .....................................................99.0


Employment Summary


7001,7823,929Direct civilian full-time equivalent employment ............................10012,1022,329189Reimbursable civilian full-time equivalent employment ...............2001

✦

STATE MEDIATION GRANTS

For grants pursuant to section 502(b) of the Agricultural Credit Act of 1987, asamended (7 U.S.C. 5101–5106), $3,228,000.




Obligations by program activity:344State mediation grants .............................................................0001






–3–2–4Outlays (gross) ......................................................................3020







This grant program is authorized by Title V of the Agricultural CreditAct of 1987, P.L. 100–233, as amended. Originally designed to addressagricultural credit disputes, the program was expanded by the Federal Crop

Insurance Reform and Department of Agriculture Reorganization Act of1994 (P.L. 103–354) to include other agricultural issues such as wetlanddeterminations, conservation compliance, rural water loan programs,grazing on National Forest System lands, and pesticide use. Grants aremade to States whose agricultural mediation programs have been certifiedby the Farm Service Agency. A grant will not exceed 79 percent of thetotal fiscal year funds that a qualifying State requires to operate and admin-ister its agricultural mediation program. In no case will the total amountof a grant exceed $500,000 annually. Current authority for the programunder P.L. 113–079 expires September 30, 2018. The 2019 Budget requests$ 3.2 million for the program.

GRANT OBLIGATIONS2018 est.2017 actual2016 actual

404140Number of States receiving grants ...........................................................343Amount of grants (in millions of dollars) ..................................................

✦

DISCRIMINATION CLAIMS SETTLEMENT








The Claims Resolution Act of 2010, P.L. 111–291 that was signed intolaw on December 8, 2010, provides funding to settle claims of prior dis-crimination brought by black farmers against the Department of Agriculture.These funds supplement funding previously provided to USDA for thispurpose by section 14012 of P.L. 110–246. Claimants that suffered discrim-ination between 1989 and 1997 and submitted a late-filing request can seekfast-track payments of up to $50,000 plus debt relief, or choose a longer,more rigorous review and documentation process for damages of up to$250,000. The actual value of awards may be reduced based on the totalamount of funds made available and the number of successful claims.

✦

USDA SUPPLEMENTAL ASSISTANCE




.................22Geographically disadvantaged farmers and ranchers

program ................................................................................0001









–2–2–2Outlays (gross) ......................................................................3020



95DEPARTMENT OF AGRICULTUREFarm Service Agency—Continued


USDA SUPPLEMENTAL ASSISTANCE—Continued






222Outlays from discretionary balances .................................4011.................22Budget authority, net (total) ..........................................................4180


The Agricultural Act of 2014 re-authorized the Reimbursement Trans-portation Cost Payment Program for Geographically DisadvantagedFarmers and Ranchers (RTCP) program for FY 2012 and each succeedingfiscal year subject to appropriated funding. The purpose of RTCP is tooffset a portion of the higher cost of transporting agricultural inputs andcommodities over long distances. This program assists farmers and ranchersresiding outside the 48 contiguous states that are at a competitive disadvant-age when transporting agriculture products to the market. RTCP benefitsare calculated based on the costs incurred by the producer for transportationof the agricultural commodity or inputs during a fiscal year, subject to an$8,000 per producer cap per fiscal year. RTCP enrollments for FY 2017began on July 17, 2017, and ended on September 08, 2017. Payments forFY 2017 signup will be disbursed in FY 2018. No funding is requested inthe 2019 Budget for this program.

✦

REFORESTATION PILOT PROGRAM



Obligations by program activity:.................11Reforestation pilot program ......................................................0001



Appropriations, discretionary:.................11Appropriation ....................................................................1100.................11Total budgetary resources available ..............................................1930


.................11New obligations, unexpired accounts ....................................3010

.................–1–1Outlays (gross) ......................................................................3020



.................11Outlays from new discretionary authority ..........................4010

.................11Budget authority, net (total) ..........................................................4180

.................11Outlays, net (total) ........................................................................4190

The Reforestation Pilot Program's purpose is to demonstrate the use ofnew technologies that increase the rate of growth of re-forested hardwoodtrees on private non-industrial forest lands, enrolling lands on the coast ofthe Gulf of Mexico that were damaged by Hurricane Katrina in 2005. The2019 Budget proposes no funding for this program.

✦

EMERGENCY CONSERVATION PROGRAM



Obligations by program activity:70200104Emergency conservation program .............................................0001







.................70241Unexpired unobligated balance, end of year ..........................1941








.................12.................Outlays from new discretionary authority ..........................40106411557Outlays from discretionary balances .................................4011



The Emergency Conservation Program (ECP) was authorized by theAgricultural Credit Act of 1978 (16 U.S.C. 2201–05). It provides fundsfor sharing the cost of emergency measures to deal with cases of severedamage to farmlands and rangelands resulting from natural disasters.During 2017, 41 States participated in ECP, with new or continued activityfrom the previous year, involving approximately $57 million in cost-shareand technical assistance funds outlays. The Further Continuing and SecurityAssistance Appropriations Act, 2017 provided $103 million for disastersdeclared pursuant to section 251(b)(2)(A)(i) of the Balanced Budget andEmergency Deficit Control Act of 1985. The 2019 Budget does not proposefunding for this program.

✦

EMERGENCY FOREST RESTORATION PROGRAM



Obligations by program activity:15155EFRP ..........................................................................................0001




466166Unobligated balance (total) ......................................................1050466166Total budgetary resources available ..............................................1930




161013Unpaid obligations, brought forward, Oct 1 ..........................300015155New obligations, unexpired accounts ....................................3010–9–9–2Outlays (gross) ......................................................................3020





Outlays, gross:992Outlays from discretionary balances .................................4011

...................................................Budget authority, net (total) ..........................................................4180992Outlays, net (total) ........................................................................4190

The Emergency Forest Restoration Program (EFRP) provides paymentsto eligible owners of non-industrial private forest for implementation ofemergency measures to restore land damaged by a natural disaster. During2017, 14 States participated in EFRP with new or continued activity fromthe previous year, involving approximately $2.3 million in cost-share andtechnical assistance fund outlays. The 2019 Budget does not includefunding for EFRP.

✦

GRASSROOTS SOURCE WATER PROTECTION PROGRAM




Obligations by program activity:.................77Grassroots source water payments ............................................0001






.................–7–7Outlays (gross) ......................................................................3020






The Grassroots Source Water Protection Program (GSWPP) is a jointproject by USDA's Farm Service Agency and the nonprofit National RuralWater Association. It is designed to help prevent source water pollution inStates through voluntary practices installed by producers at the local level.GSWPP uses onsite technical assistance capabilities of each State ruralwater association that operates a wellhead or groundwater protection pro-gram in the State. State rural water associations can deliver assistance indeveloping source water protection plans within priority watersheds forthe common goal of preventing the contamination of drinking water sup-plies. The Agricultural Act of 2014, the 2014 Farm Bill, continues the au-thority for this program. The 2019 Budget proposes no funding for thisprogram.

✦

AGRICULTURAL CREDIT INSURANCE FUND PROGRAM ACCOUNT


For gross obligations for the principal amount of direct and guaranteed farmownership (7 U.S.C. 1922 et seq.) and operating (7 U.S.C. 1941 et seq.) loans,emergency loans (7 U.S.C. 1961 et seq.), Indian tribe land acquisition loans (25U.S.C. 488), boll weevil loans (7 U.S.C. 1989), guaranteed conservation loans (7U.S.C. 1924 et seq.), and Indian highly fractionated land loans (25 U.S.C. 488) tobe available from funds in the Agricultural Credit Insurance Fund, as follows:$2,750,000,000 for guaranteed farm ownership loans and $1,500,000,000 for farmownership direct loans; $1,600,000,000 for unsubsidized guaranteed operatingloans and $1,500,000,000 for direct operating loans; emergency loans, $37,668,000;Indian tribe land acquisition loans, $20,000,000; guaranteed conservation loans,$150,000,000; and for boll weevil eradication program loans, $60,000,000: Provided,That the Secretary shall deem the pink bollworm to be a boll weevil for the purposeof boll weevil eradication program loans.

For the cost of direct and guaranteed loans and grants, including the cost ofmodifying loans as defined in section 502 of the Congressional Budget Act of 1974,as follows: farm operating loans, $58,500,000 for direct operating loans, $17,280,000for unsubsidized guaranteed operating loans, and emergency loans, $1,567,000, toremain available until expended.

In addition, for administrative expenses necessary to carry out the direct andguaranteed loan programs, $292,587,000; of which $266,436,000 shall be transferredto and merged with the appropriation for "Farm Service Agency, Salaries and Ex-penses", and of which $16,081,000 shall be transferred to and merged with the ap-propriation for "Farm Production and Conservation Business Center, Salaries andExpenses".

Funds appropriated by this Act to the Agricultural Credit Insurance ProgramAccount for farm ownership, operating and conservation direct loans and guaranteedloans may be transferred among these programs: Provided, That the Committeeson Appropriations of both Houses of Congress are notified at least 15 days in ad-vance of any transfer.


DAIRY INDEMNITY PROGRAM

(INCLUDING TRANSFER OF FUNDS)

For necessary expenses involved in making indemnity payments to dairy farmersand manufacturers of dairy products under a dairy indemnity program, such sumsas may be necessary, to remain available until expended: Provided, That such pro-gram is carried out by the Secretary in the same manner as the dairy indemnityprogram described in the Agriculture, Rural Development, Food and Drug Admin-istration, and Related Agencies Appropriations Act, 2001 (Public Law 106–387,114 Stat. 1549A-12).




Obligations by program activity:101010Administrative expenses - PLCE ................................................001011.................Dairy Indemnity .........................................................................0011

111110Direct program activities, subtotal ................................................0091Credit program obligations:

627058Direct loan subsidy ................................................................0701172115Loan guarantee subsidy ........................................................0702

.................133141Reestimates of direct loan subsidy .......................................0705

.................2739Interest on reestimates of direct loan subsidy .......................0706

.................1325Reestimates of loan guarantee subsidy ................................0707

.................227Interest on reestimates of loan guarantee subsidy ................0708282305307Administrative expenses .......................................................0709

361571612Direct program activities, subtotal ................................................0791






AGRICULTURAL CREDIT INSURANCE FUND PROGRAM ACCOUNT—Continued




370404407Appropriation ....................................................................1100..................................–15Appropriations transferred to other acct [012–4609] ........1120


1176232Appropriation ....................................................................1200371580624Budget authority (total) .............................................................1900372583627Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................–2Unobligated balance expiring ................................................1940.................13Unexpired unobligated balance, end of year ..........................1941











1176232Outlays from new mandatory authority .............................4100371580624Budget authority, net (total) ..........................................................4180378575613Outlays, net (total) ........................................................................4190

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


Direct loan levels supportable by subsidy budget authority:1,5001,5001,044Farm Ownership ........................................................................1150011,5001,6021,284Farm Operating .........................................................................115002

725515Emergency Disaster ...................................................................1150032020.................IndianTribe Land Acquisition .....................................................1150046060.................Boll Weevil Eradication ..............................................................115005

.................1110Indian Highly Fractionated Land ...............................................115010

3,1523,2482,353Total direct loan levels ..............................................................115999Direct loan subsidy (in percent):

–1.31–3.80–1.62Farm Ownership ........................................................................1320013.904.044.26Farm Operating .........................................................................1320024.164.925.59Emergency Disaster ...................................................................132003

–29.87–26.34–21.54IndianTribe Land Acquisition .....................................................132004-.21-.69-.66Boll Weevil Eradication ..............................................................132005

.................22.7225.50Indian Highly Fractionated Land ...............................................132010

1.130.221.75Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

–20–57–17Farm Ownership ........................................................................133001596555Farm Operating .........................................................................133002331Emergency Disaster ...................................................................133003

–6–5.................IndianTribe Land Acquisition .....................................................133004.................23Indian Highly Fractionated Land ...............................................133010

36842Total subsidy budget authority ..................................................133999Direct loan subsidy outlays:

–17–18–19Farm Ownership ........................................................................134001605951Farm Operating .........................................................................134002321Emergency Disaster ...................................................................134003

.................5.................Indian Highly Fractionated Land ...............................................134010

464833Total subsidy outlays .................................................................134999Direct loan reestimates:

.................30–6Farm Ownership ........................................................................135001

.................15–29Farm Operating .........................................................................135002

.................102Emergency Disaster ...................................................................135003

..................................–1Credit Sales of Acquired Property ..............................................135008

.................55–34Total direct loan reestimates .....................................................135999

Guaranteed loan levels supportable by subsidy budget authority:2,7502,7502,279Farm Ownership—Unsubsidized ...............................................2150011,6001,8771,367Farm Operating—Unsubsidized ................................................215002150150.................Conservation - Guaranteed .......................................................215005

4,5004,7773,646Total loan guarantee levels .......................................................215999Guaranteed loan subsidy (in percent):

-.25-.18-.06Farm Ownership—Unsubsidized ...............................................2320011.081.111.07Farm Operating—Unsubsidized ................................................232002-.40-.34-.32Conservation - Guaranteed .......................................................232005

0.220.320.36Weighted average subsidy rate ..................................................232999Guaranteed loan subsidy budget authority:

–7–5–1Farm Ownership—Unsubsidized ...............................................233001172115Farm Operating—Unsubsidized ................................................233002

101614Total subsidy budget authority ..................................................233999Guaranteed loan subsidy outlays:

–6–5–1Farm Ownership—Unsubsidized ...............................................234001191515Farm Operating—Unsubsidized ................................................234002

131014Total subsidy outlays .................................................................234999Guaranteed loan reestimates:

.................–24–20Farm Ownership—Unsubsidized ...............................................235001

.................8–12Farm Operating—Unsubsidized ................................................235002

.................–11Farm Operating—Subsidized ....................................................235003

.................–17–31Total guaranteed loan reestimates ............................................235999

Administrative expense data:293315317Budget authority .......................................................................3510293315314Outlays from new authority .......................................................3590

Insurance Fund program account's loans are authorized by Title III of theConsolidated Farm and Rural Development Act, as amended.

This program account includes subsidies to provide direct and guaranteedloans for farm ownership, farm operating, conservation, and emergencyloans to individuals. Indian tribes and tribal corporations are eligible forIndian land acquisition loans, while individual Native Americans are eligiblefor loans for the purchase of highly fractionated Indian lands. Boll weevileradication loans are available to eliminate the cotton boll weevil pest frominfested areas. The 2019 Budget requests $77.3 million for loan subsidies.The 2019 Budget requests a program level of $7.618 billion . Per the Fed-eral Credit Reform Act of 1990, this account records for this program thesubsidy costs associated with the direct loans obligated and loan guaranteescommitted in 1992 and beyond (including credit sales of acquired property),as well as administrative expenses of this program. The subsidy amountsare estimated on a present value basis; the administrative expenses are es-timated on a cash basis. For administrative costs, the 2019 Budget requests$292.6 million.

Under the Dairy Indemnity Program, payments are made to farmers andmanufacturers of dairy products who are directed to remove their milk ormilk products from commercial markets because they contain residues ofchemicals that have been registered and approved by the Federal Govern-ment, other chemicals, nuclear radiation, or nuclear fallout. Indemnificationmay also be paid for cows producing such milk. In 2017, $217,760 waspaid to producers who filed claims under the program. The 2019 Budgetrequests such sums as may be necessary, which are estimated to be $500,000for this program in 2019.



Direct obligations:292315317Other goods and services from Federal sources ........................25.380267305Grants, subsidies, and contributions ........................................41.0


✦


AGRICULTURAL CREDIT INSURANCE FUND DIRECT LOAN FINANCING ACCOUNT



Obligations by program activity:10107Capitalized costs .......................................................................000311.................Civil rights settlements .............................................................0005

11117Direct program by activities - subtotal (1 level) ............................0091Credit program obligations:

3,1523,2482,353Direct loan obligations ..........................................................0710406357320Payment of interest to Treasury .............................................0713266217Negative subsidy obligations ................................................0740

.................104164Downward reestimates paid to receipt accounts ...................0742

.................249Interest on downward reestimates ........................................0743

3,5843,7732,903Direct program activities, subtotal ................................................0791



271454613Unobligated balance brought forward, Oct 1 .........................1000130119113Recoveries of prior year unpaid obligations ...........................1021

–100–525–613Unobligated balances applied to repay debt .........................1023..................................–109Unobligated balance of borrowing authority withdrawn ........1024

301484Unobligated balance (total) ......................................................1050Financing authority:

Borrowing authority, mandatory:3,6503,2652,458Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:2,2772,2421,947Collected ...........................................................................1800


–2,000–1,500–1,048Spending authority from offsetting collections applied to

repay debt .....................................................................1825

277742902Spending auth from offsetting collections, mand (total) .......18503,9274,0073,360Budget authority (total) .............................................................19004,2284,0553,364Total budgetary resources available ..............................................1930




–3,759–3,466–2,781Outlays (gross) ......................................................................3020–130–119–113Recoveries of prior year unpaid obligations, unexpired .........3040





Financing authority and disbursements, net:Mandatory:

3,9274,0073,360Budget authority, gross .........................................................4090Financing disbursements:

3,7593,4662,781Outlays, gross (total) .............................................................4110Offsets against gross financing authority and disbursements:


.................–160–180Federal Sources: Reestimate payment from program

account .........................................................................4120

–63–66–52Federal Sources: Subsidy payment from program

account .........................................................................4120

–76–78–54Federal Sources: Interest on uninvested funds ..................4122–1,800–1,632–1,415Repayments of principal ...................................................4123–338–306–242Repayments of interest .....................................................4123

..................................–4Sale of Foreclosed Property/Other ......................................4123

–2,277–2,242–1,947Offsets against gross budget authority and outlays (total) ....4130Additional offsets against financing authority only (total):


1,6501,7651,410Budget authority, net (mandatory) ............................................41601,4821,224834Outlays, net (mandatory) ...........................................................41701,6501,7651,410Budget authority, net (total) ..........................................................41801,4821,224834Outlays, net (total) ........................................................................4190

Status of Direct Loans (in millions of dollars)


Position with respect to appropriations act limitation on obligations:3,1183,2192,361Direct loan obligations from current-year authority ...................1111

342946Limitation available from carry-forward ....................................1121..................................–54Unobligated direct loan limitation (-) ........................................1142

3,1523,2482,353Total direct loan obligations ..................................................1150

Cumulative balance of direct loans outstanding:11,49310,1989,429Outstanding, start of year .........................................................12103,1782,9762,780Disbursements: Direct loan disbursements ...............................1231

–1,838–1,632–1,415Repayments: Repayments and prepayments .............................1251Write-offs for default:

–55–49–47Direct loans ...........................................................................1263..................................–549Other adjustments, net (+ or -) .............................................1264

12,77811,49310,198Outstanding, end of year .......................................................1290

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

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

Balance Sheet (in millions of dollars)

2017 actual2016 actualIdentification code 012–4212–0–3–351

ASSETS:Federal assets:

453613Fund balances with Treasury .....................................................1101Investments in US securities:

162176Receivables, net ....................................................................1106Net value of assets related to post–1991 direct loans receivable:

10,1989,429Direct loans receivable, gross ....................................................1401250243Interest receivable .....................................................................1402116Accounts receivable from foreclosed property ............................1403

–431–382Allowance for subsidy cost (-) ....................................................1405–91–92Allowance for Interest Receivable (-) .........................................1405

9,9379,204Net present value of assets related to direct loans ................1499

10,5529,993Total assets ...............................................................................1999LIABILITIES:

10,4489,774Federal liabilities: Resources payable to Treasury ..........................2104104219Non-Federal liabilities: Other .........................................................2207

10,5529,993Total liabilities ...........................................................................2999

10,5529,993Total upward reestimate subsidy BA [12–1140] ............................4999

✦

AGRICULTURAL CREDIT INSURANCE FUND GUARANTEED LOAN FINANCING ACCOUNT



Obligations by program activity:11.................Purchase of guaranteed loans ...................................................0003

11.................Direct program by activities - subtotal (1 level) ............................0091Credit program obligations:

514745Default claim payments on principal ....................................0711111Payment of interest to Treasury .............................................0713641Negative subsidy obligations ................................................0740







–16–16–22Unobligated balances applied to repay debt .........................1023



AGRICULTURAL CREDIT INSURANCE FUND GUARANTEED LOAN FINANCING

ACCOUNT—Continued




Borrowing authority, mandatory:30308Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:6879121Collected ...........................................................................180098109129Budget authority (total) .............................................................1900







–1–1–1Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060




98109129Budget authority, gross .........................................................4090Financing disbursements:

5984133Outlays, gross (total) .............................................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:.................–15–67Payments from program account upward reestimate ........4120

–19–15.................Payments from program account subsidy .........................4120–4–4–4Interest on uninvested funds ............................................4122

–42–42–50Fees and premiums ...........................................................4123–3–3.................Loss recoveries and repayments .......................................4123

–68–79–121Offsets against gross budget authority and outlays (total) ....4130

30308Budget authority, net (mandatory) ............................................4160–9512Outlays, net (mandatory) ...........................................................417030308Budget authority, net (total) ..........................................................4180–9512Outlays, net (total) ........................................................................4190

Status of Guaranteed Loans (in millions of dollars)


Position with respect to appropriations act limitation oncommitments:

4,5004,7773,645Guaranteed loan commitments from current-year authority .......2111

4,5004,7773,645Total guaranteed loan commitments .....................................21503,1894,3003,281Guaranteed amount of guaranteed loan commitments .................2199

Cumulative balance of guaranteed loans outstanding:17,16216,37115,057Outstanding, start of year .........................................................22103,5433,5433,640Disbursements of new guaranteed loans ..................................2231

–2,674–2,674–2,259Repayments and prepayments ..................................................2251Adjustments:

–13–13–5Terminations for default that result in loans receivable ........2261–65–65–62Terminations for default that result in claim payments ........2263


Memorandum:

13,45013,45014,734Guaranteed amount of guaranteed loans outstanding, end of

year .......................................................................................2299

Addendum:Cumulative balance of defaulted guaranteed loans that result

in loans receivable:179166150Outstanding, start of year .....................................................2310242430Disbursements for guaranteed loan claims ...........................2331–1–1–2Repayments of loans receivable ............................................2351

–10–10–12Write-offs of loans receivable ................................................2361

192179166Outstanding, end of year ...................................................2390

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

This account finances commitments made for farm ownership, operatingand conservation guaranteed loan programs.



ASSETS:224249Federal assets: Fund balances with Treasury .................................11011552Non-Federal assets: Receivables, net ............................................1206

Net value of assets related to post–1991 acquired defaultedguaranteed loans receivable:

166150Defaulted guaranteed loans receivable, gross ...........................1501–164–148Allowance for subsidy cost (-) ....................................................1505

22Net present value of assets related to defaulted guaranteedloans .................................................................................

1599

241303Total assets ...............................................................................1999LIABILITIES:

Federal liabilities:1326Resources payable to Treasury ...................................................21042281Other ..........................................................................................2105

206196Non-Federal liabilities: Liabilities for loan guarantees ..................2204

241303Total liabilities ...........................................................................2999

241303Total liabilities and net position .....................................................4999

✦

AGRICULTURAL CREDIT INSURANCE FUND LIQUIDATING ACCOUNT



Obligations by program activity:121Loan recoverable costs ..............................................................000811.................Costs incidental to acquisition of real property .........................010911.................Civil rights settlements .............................................................0118

22.................Total operating expenses ...............................................................0191




.................–6–11Capital transfer of unobligated balances to general fund ......1022Budget authority:

Spending authority from offsetting collections, mandatory:818164Collected ...........................................................................1800

–78–77–57Capital transfer of spending authority from offsetting

collections to general fund ...........................................1820

347Spending auth from offsetting collections, mand (total) .......1850347Total budgetary resources available ..............................................1930



1..................................Unpaid obligations, brought forward, Oct 1 ..........................3000341New obligations, unexpired accounts ....................................3010

–3–3–1Outlays (gross) ......................................................................3020

11.................Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

1..................................Obligated balance, start of year ............................................310011.................Obligated balance, end of year ..............................................3200



221Outlays from new mandatory authority .............................410011.................Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:–65–65–64Non-Federal sources Principal Repayments ......................4123


–16–16.................Non-Federal sources Interest Repayments ........................4123


–78–77–57Budget authority, net (mandatory) ............................................4160–78–78–63Outlays, net (mandatory) ...........................................................4170–78–77–57Budget authority, net (total) ..........................................................4180–78–78–63Outlays, net (total) ........................................................................4190



Cumulative balance of direct loans outstanding:201268318Outstanding, start of year .........................................................1210–65–65–48Repayments: Repayments and prepayments .............................1251

22.................Adjustments: Capitalized interest .............................................1261–4–4–2Write-offs for default: Direct loans ............................................1263

134201268Outstanding, end of year .......................................................1290



Cumulative balance of guaranteed loans outstanding:234Outstanding, start of year .........................................................2210

–1–1–1Repayments and prepayments ..................................................2251


Memorandum:

112Guaranteed amount of guaranteed loans outstanding, end of

year .......................................................................................2299



ASSETS:611Federal assets: Fund balances with Treasury .................................1101

268318Loans Receivable ...........................................................................1601115117Interest receivable .........................................................................1602

–115–119Allowance for estimated uncollectible loans and interest (-) .........1603

268316Direct loans and interest receivable, net ...................................160455Foreclosed property ........................................................................1606

273321Value of assets related to direct loans .......................................1699


279332Federal liabilities: Resources payable to Treasury ..........................2104


✦

COMMODITY CREDIT CORPORATION FUND

REIMBURSEMENT FOR NET REALIZED LOSSES


For the current fiscal year, such sums as may be necessary to reimburse theCommodity Credit Corporation for net realized losses sustained, but not previouslyreimbursed, 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 undersection 11 of the Commodity Credit Corporation Charter Act (15 U.S.C. 714i) forthe conduct of its business with the Foreign Agricultural Service, up to $5,000,000may be transferred to and used by the Foreign Agricultural Service for informationresource management activities of the Foreign Agricultural Service that are notrelated to Commodity Credit Corporation business.

HAZARDOUS WASTE MANAGEMENT

(LIMITATION ON EXPENSES)

For the current fiscal year, the Commodity Credit Corporation shall not expendmore than $5,000,000 for site investigation and cleanup expenses, and operationsand maintenance expenses to comply with the requirement of section 107(g) of theComprehensive Environmental Response, Compensation, and Liability Act (42U.S.C. 9607(g)), and section 6001 of the Resource Conservation and Recovery Act(42 U.S.C. 6961).

Note.—A full-year 2018 appropriation for this account was not enacted at the time the budgetwas prepared; therefore, the budget assumes this account is operating under the Continuing

Appropriations Act, 2018 (Division D of P.L. 115–56, as amended). The amounts included for2018 reflect the annualized level provided by the continuing resolution.



Obligations by program activity:7,1202,3242,923Price Loss Coverage ..................................................................00011311,0372,364Agriculture Risk Coverage .........................................................0002212218Marketing Loans — Recourse ...................................................0004

8,1518,4887,146Marketing Loans — Non-Recourse ...........................................000622746Loan Deficiency Payments .........................................................0007505044Economic Adjustment Assistance for Upland Cotton .................0008313124Livestock Indemnity Program ....................................................0009

416394356Livestock Forage Program .........................................................0010202024ELAP ..........................................................................................0011202016Tree Assistance Program ...........................................................0012

..................................2Biomass Crop Assistance Program ............................................001313413881Storage, Transportation and Other ............................................0015200200187Market Access Program .............................................................0016

.................94Technical Assistance for Specialty Crops ..................................0018

.................108Emerging Markets Program .......................................................0019

.................3533Foreign Market Development Program .......................................0021332Quality Samples Program ..........................................................0022

131131157Non-Insured assistance program ..............................................00232,6233,5144,515Conservation Reserve Program Financial Assistance ................0026

141712Conservation Reserve Program Technical Assistance ................0027222Emergency Forestry Conservation Reserve Program ..................0028

17315279Treasury Interest ........................................................................0029..................................2Other Interest ............................................................................0030

565649Reimbursable Agreements with State and Federal Agencies ......0031166161154Food for Progress .......................................................................0032

..................................3Biofuels Infrastructure Program ................................................003311117Section 4 Contracts ...................................................................0034

..................................2Farm Bill Implementation ..........................................................0035111Electronic Warehouse Receipts ..................................................0038

..................................3Graze Out ..................................................................................0039222Noninsured Assistance Program Loss Adjuster ..........................0040

5024.................Margin Protection Program ........................................................00412525.................All other Programs .....................................................................0047

19,57316,88418,266Total support and related programs ..............................................0192

19,57316,88418,266Total direct obligations ..................................................................0799420420.................Commodities procured - PL480 Titles II / III Commodity costs ....0802180136.................Offsetting collections ................................................................0803

600556.................Reimbursable program activities, subtotal ...................................0809

600556.................Total reimbursable obligations ......................................................0899



433444397Unobligated balance brought forward, Oct 1 .........................1000..................................5Discretionary unobligated balance brought fwd, Oct 1 ......1001..................................23Unobligated balance transfer from other acct [012–3106] ....1011..................................3,725Recoveries of prior year unpaid obligations ...........................1021..................................–24Unobligated balances applied to repay debt .........................1023..................................133Recoveries of prior year paid obligations ...............................1033

4334444,254Unobligated balance (total) ......................................................1050Budget authority:



–21–21–21Appropriations transferred to other accts [012–3507] .......1220–4,014–3,628–3,613Appropriations transferred to other accts [012–1004] .......1220

.................–15–15Appropriations transferred to other accts [012–2073] .......1220–13–13–13Appropriations transferred to other accts [012–9913] .......1220–2–2–2Appropriations transferred to other accts [012–8015] .......1220

–85–85–73Appropriations transferred to other accts [012–2501] .......1220–4–4–4Appropriations transferred to other accts [012–4085] .......1220

–50–50–50Appropriations transferred to other accts [012–1908] .......1220–75–75–87Appropriations transferred to other accts [012–1600] .......1220

.................–3–3Appropriations transferred to other accts [012–1955] .......1220–1–1–1Appropriations transferred to other accts [012–0123] .......1220

.................–43.................Appropriations transferred to other accts [012–3106] .......1220


..................................–3Appropriations transferred to other accts [012–1003] .......1220

.................–30–30Appropriations transferred to other accts [012–2500] .......1220


–8,639–11,250–17,190Appropriations applied to repay debt ................................1236



COMMODITY CREDIT CORPORATION FUND—Continued



Borrowing authority, discretionary:

.................–20.................Borrowing authority precluded from obligation (limitation

on obligations) ..............................................................1323

Borrowing authority, mandatory:19,57316,8843,146,373Borrowing authority ...........................................................1400

..................................–1,022Borrowing authority temporarily reduced ..........................1421

..................................–3,130,880Borrowing authority applied to repay debt ........................1422

..................................–20Borrowing authority precluded from obligation (limitation

on obligations) ..............................................................1423

19,57316,88414,451Borrowing authority, mandatory (total) .................................1440Spending authority from offsetting collections, mandatory:

8,8318,9797,408Collected ...........................................................................1800..................................–14Change in uncollected payments, Federal sources ............1801


repay debt .....................................................................1825

607560.................Spending auth from offsetting collections, mand (total) .......185020,18017,42914,456Budget authority (total) .............................................................190020,61317,87318,710Total budgetary resources available ..............................................1930



24,56727,33722,489Unpaid obligations, brought forward, Oct 1 ..........................3000

..................................8,626Adjustments to unpaid obligations, brought forward, Oct

1 .......................................................................................3001

20,17317,44018,266New obligations, unexpired accounts ....................................3010–17,475–20,210–18,319Outlays (gross) ......................................................................3020

..................................–3,725Recoveries of prior year unpaid obligations, unexpired .........3040






.................–155Budget authority, gross .........................................................4000Outlays, gross:

.................–20.................Outlays from new discretionary authority ..........................40105..................................Outlays from discretionary balances .................................4011

5–20.................Outlays, gross (total) .............................................................4020Mandatory:




Offsetting collections (collected) from:..................................–12Federal sources .................................................................4120

–8,224–8,419–7,305Commodity Loans Repaid ..................................................4123–28–27–91Assessments and Fees ......................................................4123

–420–420.................Sales and Other Proceeds .................................................4123–159–113.................Interest Revenue ...............................................................4123

..................................–133Downward adjustments ....................................................4123

–8,831–8,979–7,541Offsets against gross budget authority and outlays (total) ....4130Additional offsets against gross budget authority only:



accounts .......................................................................4143


11,3498,4657,057Budget authority, net (mandatory) ............................................41608,63911,25110,778Outlays, net (mandatory) ...........................................................4170

11,3498,4507,062Budget authority, net (total) ..........................................................41808,64411,23110,778Outlays, net (total) ........................................................................4190

Memorandum (non-add) entries:.................3,9302,888Unexpired unavailable balance, SOY: Borrowing authority ........5101..................................3,930Unexpired unavailable balance, EOY: Borrowing authority ........5102

Summary of Budget Authority and Outlays (in millions of dollars)

2019 est.2018 est.2017 actual

Enacted/requested:11,3498,4507,062Budget Authority .......................................................................8,64411,23110,778Outlays ......................................................................................

Legislative proposal, subject to PAYGO:–1,031..................................Budget Authority .......................................................................–1,031..................................Outlays ......................................................................................

Total:10,3188,4507,062Budget Authority .......................................................................7,61311,23110,778Outlays ......................................................................................



Cumulative balance of direct loans outstanding:441237465Outstanding, start of year .........................................................1210

8,3308,6237,385Disbursements: Direct loan disbursements ...............................1231–8,224–8,419–7,305Repayments: Repayments and prepayments .............................1251

..................................–308Write-offs for default: Other adjustments, net (+ or -) ..............1264


The Commodity Credit Corporation (CCC) was created to stabilize,support, and protect farm income and prices; help maintain balanced andadequate 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 theU.S. Treasury to finance operations. Current, indefinite appropriation au-thority is requested to cover all net realized losses. Appropriations to theCorporation for net realized losses have no effect on budget authority, asthey are used to repay debt directly with the Treasury.

The Agricultural Act of 2014 (the 2014 Farm Bill) repeals certain pro-grams, continues some programs with modifications, and authorizes severalnew programs. Most of these programs are authorized and funded through2018.

BUDGET ASSUMPTIONS

The 2018 and 2019 budget estimates are primarily driven by ample worldgrain supplies and modest demand growth that keep prices from returningto pre–2014 Farm Bill levels for major crops. Lower acreage coupled withmodest increases in use and exports are expected to stabilize or supportsmall price increases in marketing years 2018/2019 and 2019/2020. Non-etheless, there will be significant Price Loss Coverage and AgricultureRisk Coverage payments. Outlay projections are subject to complex andunpredictable factors such as weather, U.S. and world consumer incomegrowth, factors which affect the volume of production crops not yet planted,demands for feed, food, and bio-energy here and overseas, and foreigncurrency exchange rates and the value of the U.S. dollar overall.

PROGRAMS OF THE CORPORATION

Price support, marketing assistance loans, and related stabilizationprograms.—The Corporation conducts programs to support farm incomeand prices and stabilize the market for agricultural commodities. Pricesupport is provided to producers of agricultural commodities through loans,purchases, payments, and other means.

Price support is mandatory for sugar. Marketing assistance loans aremandatory for wheat, feed grains, oilseeds, upland cotton, peanuts, rice,and pulse crops. Loans are also required to be made for sugar, honey, wool,mohair, and extra-long staple cotton.

One method of providing support is loans to and purchases from produ-cers. With limited exceptions, loans made on commodities are nonrecourse.The commodities serve as collateral for the loan and on maturity the pro-ducer may deliver or forfeit such collateral to satisfy the loan obligationwithout further payment.

Direct purchases may be made from processors as well as producers,depending on the commodity involved. Also, special purchases are madeunder various laws for the removal of surpluses; for example, the Act of


August 19, 1958, as amended, and section 416 of the Agricultural Act of1949, as amended.

Commodity Payment Programs.—The 2014 Farm Bill repealed DirectPayments, Counter-Cyclical Payments and Average Crop Revenue ElectionPayments and established two new programs, Price Loss Coverage andAgriculture Risk Coverage.

Price Loss Coverage (PLC).—Payments are issued when the effectiveprice of a covered commodity is less than the respective reference pricefor that commodity established in the statute. The payment is equal to 85percent of the base acres of the covered commodity times the differencebetween the reference price and the effective price times the programpayment yield for the covered commodity.

Agriculture Risk Coverage (ARC).—There are two types: County ARCand Individual ARC.

County ARC: Payments are issued when the actual county crop revenueof a covered commodity is less than the ARC county guarantee for thecovered commodity and are based on county data, not farm data. The ARCcounty guarantee equals 86 percent of the previous 5-year average nationalfarm price, excluding the years with the highest and lowest price (the ARCguarantee price), times the 5-year average county yield, excluding the yearswith the highest and lowest yield (the ARC county guarantee yield). Boththe guarantee and actual revenue are computed using base acres, not plantedacres. The payment is equal to 85 percent of the base acres of the coveredcommodity times the difference between the county guarantee and the ac-tual county crop revenue for the covered commodity. Payments may notexceed 10 percent of the benchmark county revenue (the ARC guaranteeprice times the ARC county guarantee yield).

Individual ARC: Payments are issued when the actual individual croprevenues, summed across all covered commodities on the farm, are lessthan ARC individual guarantees summed across those covered commoditieson the farm. The farm for individual ARC purposes is the sum of the pro-ducer's interest in all ARC farms in the State. The farm's ARC individualguarantee equals 86 percent of the farm's individual benchmark guarantee,which is defined as the ARC guarantee price times the 5-year average indi-vidual yield, excluding the years with the highest and lowest yields, andsumming across all crops on the farm. The actual revenue is computed ina similar fashion, with both the guarantee and actual revenue computedusing planted acreage on the farm. The individual ARC payment equals:a) 65 percent of the sum of the base acres of all covered commodities onthe farm, times b) the difference between the individual guarantee revenueand the actual individual crop revenue across all covered commoditiesplanted on the farm. Payments may not exceed 10 percent of the individualbenchmark revenue.

Base Reallocation and Yield Updates.—Owners of farms that participatein PLC or ARC programs for the 2014–2018 crops have a one-time oppor-tunity to: 1) maintain the farm's 2013 bases through 2018; or 2) reallocatebase acres (excluding cotton bases). Covered commodities include wheat,oats, barley, corn, grain sorghum, rice, soybeans, sunflower seed, rapeseed,canola, safflower, flaxseed, mustard seed, crambe and sesame seed, drypeas, lentils, small chickpeas, and large chickpeas. Upland cotton is nolonger considered a covered commodity, but the upland cotton base acreson the farm are renamed "generic" base acres. Producers may receivepayments on generic base acres if those acres are planted to a coveredcommodity.

A producer also has the opportunity to update the counter-cyclical pay-ment yield for each covered commodity based on 90 percent of the farm's2008–2012 average yield per planted acre, excluding any year when noacreage was planted to the covered commodity. Program payment yieldsare used to determine payment amounts for the Price Loss Coverage pro-gram.

Election Required.—All of the producers on a farm must make a one-time, unanimous election of: 1) PLC/County ARC on a covered-commodity-by-covered-commodity basis; or 2) Individual ARC for all covered com-modities on the farm. If the producers on the farm elect PLC/County ARC,

the producers must also make a one-time election to select which baseacres on the farm are enrolled in PLC and which base acres are enrolledin County ARC. Alternatively, if Individual ARC is selected, then everycovered commodity on the farm must participate in Individual ARC.

The election between ARC and PLC is made in 2014 and a producercannot switch to ARC (from PLC), or vice versa, in subsequent years. Ifan election is not made in 2014, the farm may not participate in either PLCor ARC for the 2014 crop year and the producers on the farm are deemedto have elected PLC for subsequent crop years, but must still enroll theirfarm to receive coverage. If the sum of the base acres on a farm is 10 acresor less, the producer on that farm may not receive PLC or ARC payments,unless the producer is a socially disadvantaged farmer or rancher or is alimited resource farmer or rancher. Payments for PLC and ARC are issuedafter the end of the respective crop year, but not before October 1.

Producers enrolling in PLC, and who also participate in the Federal cropinsurance program, may, beginning with the 2015 crop, make the annualchoice whether to purchase additional crop insurance coverage called theSupplemental Coverage Option (SCO). SCO provides the producer theoption of covering a portion of his or her crop insurance deductible and isbased on expected county yields or revenue. The cost of SCO is subsidizedand indemnities are determined by the yield or revenue loss for the countyor area. SCO is not available to producers who enroll in ARC.

Adjusted Gross Income.—Adjusted gross income (AGI) provisions havebeen simplified and modified. Producers whose average AGI exceeds$900,000 during a crop, fiscal, or program year are not eligible to participatein most programs administered by FSA and the Natural Resources Conser-vation Service (NRCS). Previous AGI provisions distinguished betweenfarm and nonfarm AGI.

Payment Limitations.—The total amount of payments received, directlyand indirectly, by a person or legal entity (except joint ventures or generalpartnerships) for Price Loss Coverage, Agriculture Risk Coverage, market-ing loan gains, and loan deficiency payments (other than for peanuts), maynot exceed $125,000 per crop year. A person or legal entity that receivespayments for peanuts has a separate $125,000 payment limitation.

Cotton transition payments are limited to $40,000 per year. For the live-stock disaster programs, a total $125,000 annual limitation applies forpayments under the Livestock Indemnity Program, the Livestock ForageProgram, and the Emergency Assistance for Livestock, Honey Bees andFarm-Raised Fish program. A separate $125,000 annual limitation appliesto payments under the Tree Assistance Program.

Cotton Transition.—Upland cotton is the only "covered commodity" thatis no longer eligible to participate in these programs, but rather, becameeligible for the new Stacked Income Protection Plan (STAX) offered bythe Risk Management Agency (RMA). Upland cotton was eligible fortransition payments made by FSA only for the 2014 and 2015 crops.

Marketing Assistance Loans (MALs) and Sugar Loans.—The 2014 FarmBill extends the authority for sugar loans for the 2014 through 2018 cropyears and nonrecourse marketing assistance loans (MALs) and loan defi-ciency payment (LDPs) for the 2014–2018 crops of wheat, corn, grainsorghum, barley, oats, upland cotton, extra-long staple cotton (eligible forloans only), long grain rice, medium grain rice, soybeans, other oilseeds(including sunflower seed, rapeseed, canola, safflower, flaxseed, mustardseed, crambe and sesame seed), dry peas, lentils, small chickpeas, largechickpeas, graded and nongraded wool, mohair, honey, unshorn pelts, andpeanuts. Availability of loans for some commodities may be affected byappropriations language. Provisions are mostly unchanged from the 2008Farm Bill, except marketing loan gains and loan deficiency payments aresubject to payment limitations. The Consolidated Appropriations Act, 2016(Public Law 114–113) amended the Federal Agriculture Improvement andReform Act of 1996, allowing producers to receive certificates in lieu ofmarketing loan gains or loan deficiency payments starting with the 2015crop marketing year.




DAIRY PROGRAMS

The Dairy Margin Protection Program. This program replaced the MilkIncome Loss Contract program and will be effective from September 1,2014, through December 31, 2018. The margin protection program offersdairy producers: (1) catastrophic coverage, at no cost to the producer, otherthan an annual $100 administrative fee; and (2) various levels of buy-upcoverage. Catastrophic coverage provides payments to participating produ-cers when the national dairy production margin is less than $4.00 perhundredweight (cwt). The national dairy production margin is the differencebetween the all-milk price and average feed costs. Producers may purchasebuy-up coverage that provides payments when margins are between $4.00and $8.00 per cwt. To participate in buy-up coverage, a producer must paya premium that varies with the level of protection the producer elects. Inaddition, the 2014 Farm Bill creates the Dairy Product Donation Program.This program is triggered in times of low operating margins for dairy pro-ducers, and requires USDA to purchase dairy products for donation to foodbanks and other feeding programs.

Dairy Indemnity Payment Program (DIPP).—The program providespayments to dairy producers when a public regulatory agency directs themto remove their raw milk from the commercial market because it has beencontaminated by pesticides and other residues.

OTHER PROGRAMS

Noninsured Crop Disaster Assistance Program (NAP).—NAP has beenexpanded to include buy-up protection, similar to buy-up provisions offeredunder the federal crop insurance program. Producers may elect coveragefor each individual crop between 50 and 65 percent, in 5 percent increments,at 100 percent of the average market price. Producers also pay a fixedpremium equal to 5.25 percent of the liability. The waiver of service feeshas been expanded from just limited resource farmers to also include be-ginning farmers and socially disadvantaged farmers. The premiums forbuy-up coverage are reduced by 50 percent for those same farmers. NAPcoverage is expanded to include crops grown expressly for the purpose ofproducing a feedstock for renewable biofuel, renewable electricity, orbiobased products. NAP is also made available to producers that suffereda loss to a 2012 annual fruit crop grown on a bush or tree in a county de-clared a disaster by the Secretary due to a freeze or frost. Grazing land isnot eligible for buy-up coverage.

Biomass Crop Assistance Program (BCAP).—BCAP provides incentivesto farmers, ranchers and forest landowners to establish, cultivate and harvesteligible biomass for heat, power, bio-based products, research and advancedbiofuels. Crop producers and bioenergy facilities can team together tosubmit proposals to USDA for selection as a BCAP project area. BCAPhas been extended through 2018 and is authorized at $25 million per fiscalyear. The program is capped at $3 million.

Feedstock Flexibility Program (FFP).—FFP is continued through fiscalyear 2018. Congress authorized the FFP in the 2008 Farm Bill, allowingfor the purchase of sugar to be sold for the production of bioenergy in orderto avoid forfeitures of sugar loan collateral under the Sugar Program.

DISASTER PROGRAMS

The following four disaster programs were authorized by the 2008 FarmBill under the USDA Supplemental Disaster Assistance program. Theseprograms were re-authorized under CCC in the 2014 Farm Bill and extendedindefinitely (beyond the horizon of the 2014 Farm Bill). The programswere made retroactive to October 1, 2011. Producers are no longer requiredto purchase crop insurance or NAP coverage to be eligible for these pro-grams (the risk management purchase requirement) as mandated by the2008 Farm Bill.

Livestock Forage Disaster Program (LFP).—LFP provides compensationto eligible livestock producers that have suffered grazing losses due todrought or fire on land that is native or improved pastureland with perman-ent vegetative cover or that is planted specifically for grazing. LFP pay-ments for drought are equal to 60 percent of the monthly feed cost for up

to 5 months, depending upon the severity of the drought. LFP paymentsfor fire on federally managed rangeland are equal to 50 percent of themonthly feed cost for the number of days the producer is prohibited fromgrazing the managed rangeland, not to exceed 180 calendar days.

Livestock Indemnity Program (LIP).—LIP provides benefits to livestockproducers for livestock deaths in excess of normal mortality caused byadverse weather or by attacks by animals reintroduced into the wild by theFederal Government. LIP payments are equal to 75 percent of the averagefair market value of the livestock.

Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish(ELAP).—ELAP provides emergency assistance to eligible producers oflivestock, honeybees and farm-raised fish for losses due to disease (includ-ing cattle tick fever), adverse weather, or other conditions, such as blizzardsand wildfires, not covered by LFP and LIP. Total payments are capped at$20 million in a fiscal year.

Tree Assistance Program (TAP).—TAP provides financial assistance toqualifying orchardists and nursery tree growers to replant or rehabilitateeligible trees, bushes, and vines damaged by natural disasters.

FOREIGN ASSISTANCE PROGRAMS

Market Access Program (MAP).—Under the MAP, CCC Funds are usedto reimburse participating organizations for a portion of the costs of carryingout overseas marketing and promotional activities. The 2014 Farm Billcontinues the authority for the MAP program with annual funding of $200million for 2014–2018.

Foreign Market Development Cooperator Program (FMD) and QualitySamples Program.—Under the FMD program, cost-share assistance isprovided to nonprofit commodity and agricultural trade associations tosupport overseas market development activities that are designed to removelong-term impediments to increased U.S. trade. CCC will fund the QualitySamples Program at an authorized annual level of $2.5 million. Under thisinitiative, samples of U.S. agricultural products will be provided to foreignimporters to promote a better understanding and appreciation for the highquality of U.S. products.

Technical Assistance for Specialty Crops and Emerging Markets.—Emer-ging Markets is extended through 2018. Technical Assistance for SpecialtyCrops is extended through 2018 with annual funding of $9 million for eachfiscal year.

The Bill Emerson Humanitarian Trust.—The Bill Emerson HumanitarianTrust (BEHT) is a commodity and/or monetary reserve designed to ensurethat the United States can meet its international food aid commitments.Assets of the Trust can be released any time the Administrator of the U.S.Agency for International Development determines that PL 480 Title II isinadequate to meet those needs in any fiscal year. When a release from theTrust is authorized, the Trust's assets cover all commodity costs associatedwith the release. All non-commodity costs, including ocean freight charges;internal transportation, handling, and storage overseas; and certain admin-istrative costs are paid by CCC. The 2014 Farm Bill extends the authoriz-ation to replenish the BEHT through 2018.

CONSERVATION PROGRAMS

Conservation Reserve Program (CRP).—The 2014 Farm Bill extendsthe authorization of CRP with modifications. The acreage cap is graduallylowered to 24 million acres for fiscal years 2017 and 2018. The requirementto reduce rental payments under emergency haying and grazing is elimin-ated. Rental payment reductions of not less than 25 percent are requiredfor managed haying and grazing. Producers are also given the opportunityfor an "early-out" from their CRP contracts, but only in fiscal year 2015.The rental payment portion of the Grassland Reserve Program enrollmenthas been incorporated into the CRP.

The Transition Incentive Program (TIP).—The 2014 Farm Bill allowsfor the transition of CRP land to a beginning or socially disadvantagedfarmer or rancher so land can be returned to sustainable grazing or cropproduction. TIP now includes eligibility for military veterans (i.e., "veteranfarmers").


OPERATING EXPENSES

The Corporation carries out its functions through utilization of employeesand facilities of other Government agencies. Administrative expenses areincurred by: the Farm Service Agency (FSA); the Foreign AgriculturalService; the Natural Resources Conservation Service; RMA; other agenciesof the Department engaged in the Corporation's activities; and the Officeof Inspector General for audit functions. Additional expenses are incurredby FSA county offices for work related to programs of the Corporation,other FSA expenses offset by revenue, custodian, and agency expenses ofthe Federal Reserve banks and lending agencies, and miscellaneous costs.

Expenses are incurred for acquisition, operation, maintenance, improve-ment, or disposition of existing property that the Corporation owns or inwhich it has an interest. These expenses are treated as program expenses.Such program expenses include inspection, classing, and grading workperformed on a fee basis by Federal employees or Federal- or State-licensedinspectors; and special services performed by Federal agencies within andoutside this Department. Most of these general expenses, including storageand handling, transportation, inspection, classing and grading, and producerstorage payments, are included in program costs. They are shown in theprogram and financing schedule in the entries entitled "Storage, transport-ation, and other obligations not included above.''

Section 161 of the 1996 Act amended Section 11 of the CCC Charter Actto limit the use of CCC funds for the transfer and allotment of funds toState and Federal agencies. The Section 11 cap of $56 million remains in2017 and 2018.

The Corporation receives reimbursement for grain requisitioned pursuantto Public Law 87–152 by the States from Corporation stocks to feed residentwildlife threatened with starvation through the appropriation reimbursementfor net realized losses. There have been no requisitions in recent years,however. The Corporation receives reimbursement for the commodity costsand other costs, including administrative costs, for commodities suppliedto domestic nutrition programs and international food aid programs.

FINANCING

Appropriations.—Reimbursement for Net Realized Losses. Under Section2 of Public Law 87 155, the Act of August 17 1961 (15 U.S.C. 713a 11),annual appropriations are authorized for each fiscal year, commencing with1961, to reimburse the Corporation for net realized losses. The OmnibusBudget Reconciliation Act of 1987 amended Public Law 87–155 to author-ize that the Corporation is reimbursed for its net realized losses by meansof a current, indefinite appropriation as provided in annual appropriationsacts.

Borrowing authority.—The Corporation has an authorized capital stockof $100 million held by the U.S. Treasury and, effective in 1988, authorityto have outstanding borrowings up to $30 billion at any one time. Fundsare borrowed from the Treasury and may also be borrowed from privatelending agencies and others. The Corporation reserves a sufficient amountof its borrowing authority to purchase at any time all notes and other oblig-ations evidencing loans made to the Corporation by such agencies andothers. All bonds, notes, debentures, and similar obligations issued by theCorporation are subject to approval by the Secretary of the Treasury asrequired by the Act of March 8, 1938.

Interest on borrowings from the Treasury (and on capital stock) is paidat a rate based upon the average interest rate of all outstanding marketableobligations (of comparable maturity date) of the United States as of thepreceding month. Interest is also paid on other notes and obligations at arate prescribed by the Corporation and approved by the Secretary of theTreasury. The Department of Agriculture and Related Agencies Appropri-ation Act, 1966, made provision for terminating interest after June 30, 1964on the portion of the Corporation's borrowings from the Treasury equal tothe unreimbursed realized losses recorded on the books of the Corporationafter the end of the fiscal year in which such losses are realized.

Non-Expenditure Transfers.—The Commodity Credit Corporationtransfers CCC funds to several agencies responsible for administering Farm

Bill and other Corporation programs. Once transferred the expenses arerecorded in the receiving agencies accounts.



Direct obligations:404081Transportation of things ............................................................22.0

7,7248,0637,210Investments and loans ..............................................................33.011,8098,78110,975Grants, subsidies, and contributions ........................................41.0

19,57316,88418,266Direct obligations ..................................................................99.0Reimbursable obligations:

180136.................Other services from non-Federal sources ..................................25.2420420.................Other goods and services from Federal sources ........................25.3

600556.................Reimbursable obligations .....................................................99.0


COMMODITY CREDIT CORPORATION FUND




Obligations by program activity:–184..................................Price Loss Coverage ..................................................................0001–79..................................Marketing Loans — Non-Recourse ...........................................0006–50..................................Economic Adjustment Assistance for Upland Cotton .................0008

–416..................................Livestock Forage Program .........................................................0010–136..................................Conservation Reserve Program Technical Assistance ................0027–166..................................Food for Progress .......................................................................0032

–1,031..................................Total support and related programs ..............................................0192

–1,031..................................Total direct obligations ..................................................................0799

–1,031..................................Total new obligations, unexpired accounts (object class 41.0) .......0900


Appropriations, mandatory:40..................................Appropriations transferred to other acct [012–1004] ........1220

–40..................................Appropriations applied to repay debt ................................1236Borrowing authority, mandatory:

–1,031..................................Borrowing authority ...........................................................1400–1,031..................................Budget authority (total) .............................................................1900–1,031..................................Total budgetary resources available ..............................................1930


–1,031..................................New obligations, unexpired accounts ....................................30101,031..................................Outlays (gross) ......................................................................3020


–1,031..................................Budget authority, gross .........................................................4090Outlays, gross:

–216..................................Outlays from new mandatory authority .............................4100–815..................................Outlays from mandatory balances ....................................4101

–1,031..................................Outlays, gross (total) .............................................................4110–1,031..................................Budget authority, net (total) ..........................................................4180–1,031..................................Outlays, net (total) ........................................................................4190

The 2019 President's Budget targets commodity assistance, crop insurancesubsidies, and conservation assistance to producers that have an AdjustedGross Income (AGI) of $500,000 or less. It is hard to justify to hardworkingtaxpayers why the Federal government should provide assistance to wealthyfarmers with incomes over a half a million dollars. Doing so underminesthe credibility and purpose of farm programs. Additionally, it closes pay-ment limit loopholes by eliminating commodity certificates, includingmarket loan forfeitures in the $125,000 payment limit, eliminating separatepayment limit for peanut producers, and limiting all farms to one manager.The Budget also eliminates funding for a number of programs for whichthere is no Federal purpose or to avoid duplication, those programs includethe Market Access Program, the Agricultural Wool Apparel Trust Fund,Economic Adjustment Assistance for Upland Cotton Users, and Food for




Progress. The Livestock Forage Program was eliminated to avoid duplica-tion with crop insurance programs. Lastly, the Budget changes the focusof the Conservation Reserve Program away from temporarily removinglarge tracts of land from production to one where the payment would helppreserve sensitive agricultural corridors, increase soil health, and reformthe program's use of distortionary signing and incentive payments.

✦

COMMODITY CREDIT CORPORATION EXPORT (LOANS) CREDIT GUARANTEE

PROGRAM ACCOUNT


For administrative expenses to carry out the Commodity Credit Corporation'sExport Guarantee Program, GSM 102 and GSM 103, $6,717,000; to cover commonoverhead expenses as permitted by section 11 of the Commodity Credit CorporationCharter Act and in conformity with the Federal Credit Reform Act of 1990, of which$6,382,000 shall be transferred to and merged with the appropriation for "ForeignAgricultural Service, Salaries and Expenses", and of which $335,000 shall betransferred to and merged with the appropriation for "Farm Service Agency,Salaries and Expenses".




Obligations by program activity:Credit program obligations:

552Loan guarantee subsidy ........................................................0702.................912Reestimates of loan guarantee subsidy ................................0707.................12Interest on reestimates of loan guarantee subsidy ................0708

796Administrative expenses .......................................................0709





Appropriations, mandatory:51515Appropriation ....................................................................1200

122424Budget authority (total) .............................................................1900172929Total budgetary resources available ..............................................1930





–12–25–23Outlays (gross) ......................................................................3020








41415Outlays from new mandatory authority .............................41001..................................Outlays from mandatory balances ....................................4101




Guaranteed loan levels supportable by subsidy budget authority:5,0005,0001,582GSM 102 ....................................................................................215001500500.................Export guarantee program—Facilities ......................................215003


-.22-.19-.24GSM 102 ....................................................................................232001–2.52–2.86–3.96Export guarantee program—Facilities ......................................232003

-.43-.43-.24Weighted average subsidy rate ..................................................232999Guaranteed loan subsidy budget authority:

–11–9–4GSM 102 ....................................................................................233001–13–14.................Export guarantee program—Facilities ......................................233003

–24–23–4Total subsidy budget authority ..................................................233999Guaranteed loan subsidy outlays:

–9–11–5GSM 102 ....................................................................................234001–14–14.................Export guarantee program—Facilities ......................................234003

–23–25–5Total subsidy outlays .................................................................234999Guaranteed loan reestimates:

.................8–1GSM 102 ....................................................................................235001

.................–1–2Supplier Credit ..........................................................................235002

.................7–3Total guaranteed loan reestimates ............................................235999


This is the program account for the GSM-102 CCC Export Credit Guar-antee Program. The GSM-102 Export Credit Guarantee Program coverscredit terms of up to 18 months. Under this program, CCC does not providefinancing, but guarantees payments due from foreign banks and buyers.Because payment is guaranteed, financial institutions in the United Statescan offer competitive credit terms to foreign banks, usually with interestrates based on the London Inter-Bank Offered Rate (LIBOR). If the foreignbank fails to make any payment as agreed, the exporter or assignee mustsubmit a notice of default to the CCC. A claim for loss must be filed, andthe CCC will promptly pay claims found to be in good order. CCC usuallyguarantees 98 percent of the principal payment due and interest based ona percentage of the one-year Treasury rate.

A portion of the GSM-102 guarantees is also made available as FacilitiesGuarantees. Under this activity, CCC guarantees export financing forcapital goods and services to improve handling, marketing, processing,storage, or distribution of imported agricultural commodities and products.

The subsidy estimates for the GSM-102 program are determined in largepart by the obligor's sovereign or non-sovereign country risk grade. Thesegrades are developed annually by the International Credit Risk AssessmentSystem Committee (ICRAS). In unusual circumstances, an ICRAS gradefor a country may change during the fiscal year. The default estimates forGSM-102 guarantees still use the ICRAS grades, but are now based onprogrammatic experience and country-specific assumptions rather than thegovernment-wide risk premia used previously.

As required by the Federal Credit Reform Act of 1990, this account re-cords, for this program, the subsidy costs associated with the credit guaran-tees committed in 1992 and beyond (including modifications of creditguarantees that resulted from obligations or commitments in any year), aswell as administrative expenses of this program. The subsidy amounts areestimated on a present value basis; the administrative expenses are estimatedon a cash basis. The 2019 Budget displays the GSM loan guarantee volume,the subsidy level that can be justified by forecast economic conditions, andthe expected supply/demand conditions of countries requesting GSM loanguarantees. The 2019 Budget includes $6.7 million for administrative ex-penses.



Direct obligations:756Other goods and services from Federal sources ........................25.3




✦

COMMODITY CREDIT CORPORATION EXPORT GUARANTEE FINANCING ACCOUNT




141812Default claim payments on principal ....................................0711141414Payment of interest to Treasury .............................................0713331Pro Rate Share of Claims paid to banks ................................0715

28235Negative subsidy obligations ................................................0740.................310Downward reestimates paid to receipt accounts ...................0742..................................7Interest on downward reestimates ........................................0743



651418Unobligated balance brought forward, Oct 1 .........................1000–20–14–4Unobligated balances applied to repay debt .........................1023

45.................14Unobligated balance (total) ......................................................1050Financing authority:


Spending authority from offsetting collections, mandatory:889559Collected ...........................................................................180011–1Change in uncollected payments, Federal sources ............1801

–36–36–21Spending authority from offsetting collections applied to

repay debt .....................................................................1825





–60–58–50Outlays (gross) ......................................................................3020


–1.................–1Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060–1–11Change in uncollected pymts, Fed sources, unexpired ..........3070

–2–1.................Uncollected pymts, Fed sources, end of year .............................3090Memorandum (non-add) entries:





Offsetting collections (collected) from:.................–10–14Payments from Prograrm Account Upward Reestimate ......4120

–5–4–2Payments from Program Account Positive Subsidy ............4120–3–3–2Interest on uninvested funds ............................................4122

–43–43–8Loan origination fee ..........................................................4123–24–21–16Recoveries of Principal ......................................................4123–13–14–17Recoveries of Interest ........................................................4123

–88–95–59Offsets against gross budget authority and outlays (total) ....4130Additional offsets against financing authority only (total):

–1–11Change in uncollected pymts, Fed sources, unexpired .......4140

3030–9Budget authority, net (mandatory) ............................................4160–28–37–9Outlays, net (mandatory) ...........................................................41703030–9Budget authority, net (total) ..........................................................4180

–28–37–9Outlays, net (total) ........................................................................4190




5,5005,5001,582Guaranteed loan commitments from current-year authority .......2111



–5,202–5,198–2,139Repayments and prepayments ..................................................2251

–14–18–12Adjustments: Terminations for default that result in claim

payments ..............................................................................2263


Memorandum:


year .......................................................................................2299


in loans receivable:432471586Outstanding, start of year .....................................................2310–38–39–115Repayments of loans receivable ............................................2351





1519Fund balances with Treasury .....................................................11011623Accounts Receivable, net ...........................................................1101


471586Defaulted guaranteed loans receivable, gross ...........................15011634Interest receivable .....................................................................1502

–246–368Allowance for subsidy cost (-) ....................................................1505


1599


Federal liabilities:11Accounts payable .......................................................................2101

251264Resources payable to Treasury ...................................................2104Non-Federal liabilities:

136Liabilities for loan guarantees ...................................................2204723Other ..........................................................................................2207



✦

COMMODITY CREDIT CORPORATION GUARANTEED LOANS LIQUIDATING ACCOUNT



Obligations by program activity:.................11Operating Expenses ...................................................................0001

.................11Direct program activities, subtotal ................................................0100



Spending authority from offsetting collections, mandatory:.................29Collected ...........................................................................1800

.................–1–8Capital transfer of spending authority from offsetting


.................11Spending auth from offsetting collections, mand (total) .......1850

.................11Total budgetary resources available ..............................................1930



COMMODITY CREDIT CORPORATION GUARANTEED LOANS LIQUIDATING

ACCOUNT—Continued





–4–4–1Outlays (gross) ......................................................................3020





..................................1Outlays from new mandatory authority .............................410044.................Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:.................–2–9Non-Federal sources .........................................................4123.................–1–8Budget authority, net (total) ..........................................................4180

42–8Outlays, net (total) ........................................................................4190




in loans receivable:.................271Outstanding, start of year .....................................................2310.................–2–69Repayments of loans receivable ............................................2351

..................................2Outstanding, end of year ...................................................2390



ASSETS:98Federal assets: Fund balances with Treasury .................................1101271Defaulted guaranteed loans, gross ................................................1701

...........................220Interest receivable .........................................................................1702

...........................–282Allowance for estimated uncollectible loans and interest (-) .........1703

29Value of assets related to loan guarantees ................................1799


Federal liabilities:98Accounts payable .......................................................................210129Resources payable to Treasury ...................................................2104

......................................................Non-Federal liabilities: Other .........................................................2207



✦

FARM STORAGE FACILITY LOANS PROGRAM ACCOUNT








Appropriations, mandatory:.................1111Appropriation ....................................................................1200




.................–11–11Outlays (gross) ......................................................................3020



.................1111Outlays from new mandatory authority .............................4100





Direct loan levels supportable by subsidy budget authority:300300215Farm Storage Facility Loans ......................................................115001

99.................Sugar Storage Facility Loans .....................................................115002

309309215Total direct loan levels ..............................................................115999Direct loan subsidy (in percent):

-.52–1.27–1.30Farm Storage Facility Loans ......................................................132001-.96–2.35–2.20Sugar Storage Facility Loans .....................................................132002

-.53–1.30–1.30Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

–2–4–3Farm Storage Facility Loans ......................................................133001

–2–4–3Total subsidy budget authority ..................................................133999Direct loan subsidy outlays:

–5–4–3Farm Storage Facility Loans ......................................................134001

–5–4–3Total subsidy outlays .................................................................134999Direct loan reestimates:

.................82Farm Storage Facility Loans ......................................................135001

.................82Total direct loan reestimates .....................................................135999

Farm Storage Facility Loan (FSFL) Program.—The FSFL program wasestablished by the Commodity Credit Corporation (CCC) in 1949 to offerlow-cost financing to producers for the construction or upgrade of on-farmstorage facilities—the program was discontinued in the early 1980s whenstudies showed sufficient storage space was available. The FSFL was re-established in 2000 due to a severe shortage of available storage. The pro-gram was implemented in 2000 by CCC under Section 504(c) of the Fed-eral Credit Reform Act of 1990. The Agricultural Act of 2014 (the 2014Farm Bill) continues the authority for this program. The program nowprovides producers financing with seven, ten, or twelve-year repaymentterms and low interest rates. The program also offers a micro-loan optionfor loans under $50,000 with three, five, or seven year repayment terms.The program gives producers greater marketing flexibility when farmstorage 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, as amended by the2008 Farm Bill and extended in the 2014 Farm Bill, directs that CCC es-tablish a sugar storage facility loan program to provide financing for pro-cessors of domestically produced sugarcane and sugar beets to constructor upgrade storage and handling facilities for raw sugars and refined sugars.The loan term is a minimum of seven years with the amount and termsbeing determined as any other commercial loan.

As required by the Federal Credit Reform Act of 1990, this account re-cords the subsidy costs associated with the direct loans obligated in 1992and beyond, as well as administrative expenses of this program. The subsidyamounts are estimated on a present value basis, and the administrative ex-penses are estimated on a cash basis.

✦


FARM STORAGE FACILITY DIRECT LOAN FINANCING ACCOUNT




309309215Direct loan obligations ..........................................................0710242422Payment of interest to Treasury .............................................0713244Negative subsidy obligations ................................................0740


..................................3Interest on downward reestimates ........................................0743




–32–38–17Unobligated balances applied to repay debt .........................1023

11.................7Unobligated balance (total) ......................................................1050Financing authority:


..................................–69Borrowing authority applied to repay debt ........................1422

335339259Borrowing authority, mandatory (total) .................................1440Spending authority from offsetting collections, mandatory:

.................1112Payments from program account (Upward Reestimate) .....1800164156161Principal repayments ........................................................1800191717Interest repayments ..........................................................18008816Interest on Uninvested Funds ............................................180011.................Fees and Other Collections ................................................1800



repay debt .....................................................................1825







..................................–7Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060

..................................7Change in uncollected pymts, Fed sources, unexpired ..........3070Memorandum (non-add) entries:





Offsetting collections (collected) from:.................–11–12Payment from program account Upward Reestimate ........4120

–8–8–16Interest on uninvested funds ............................................4122–164–156–178Principal collections ..........................................................4123–19–17.................Interest collections ............................................................4123–1–1.................Fees and Other Collections ................................................4123



18518982Budget authority, net (mandatory) ............................................41601391082Outlays, net (mandatory) ...........................................................417018518982Budget authority, net (total) ..........................................................41801391082Outlays, net (total) ........................................................................4190



Position with respect to appropriations act limitation on obligations:309309215Direct loan obligations from current-year authority ...................1111

309309215Total direct loan obligations ..................................................1150

Cumulative balance of direct loans outstanding:863748734Outstanding, start of year .........................................................1210309271208Disbursements: Direct loan disbursements ...............................1231

–164–156–161Repayments: Repayments and prepayments .............................1251..................................–33Write-offs for default: Other adjustments, net (+ or -) ..............1264

1,008863748Outstanding, end of year .......................................................1290





5...........................Receivables, net ....................................................................1106Net value of assets related to post–1991 direct loans receivable:

748734Direct loans receivable, gross ....................................................14011010Interest receivable .....................................................................1402–47Allowance for subsidy cost (-) ....................................................1405

754751Net present value of assets related to direct loans ................1499


Federal liabilities:948878Debt payable to Treasury ............................................................2103

......................................................Other Federal Liabilities .............................................................2105



✦

APPLE LOANS PROGRAM ACCOUNT

The Agricultural Risk Protection Act of 2000 authorized up to $5 millionfor the cost to provide loans to producers of apples for economic losses asthe result of low prices. Although the program is funded through theCommodity Credit Corporation, program management is performed throughfarm loan programs. No further funding is requested for this program.

As required by the Federal Credit Reform Act of 1990, this account re-cords, for this program, the subsidy costs associated with the direct loansobligated in 1992 and beyond (including modifications of direct loans orloan guarantees that resulted from obligations or commitments in any year),as well as administrative expenses of this program. The subsidy amountsare estimated on a present value basis.

✦

EMERGENCY BOLL WEEVIL DIRECT LOAN FINANCING ACCOUNT



Budgetary resources:Financing authority:

Spending authority from offsetting collections, mandatory:11.................Principal repayments ........................................................1800

–1–1.................Spending authority from offsetting collections applied to

repay debt .....................................................................1825


Offsets against gross financing authority and disbursements:Offsetting collections (collected) from:

–1–1.................Principal repayments ........................................................4123–1–1.................Budget authority, net (total) ..........................................................4180–1–1.................Outlays, net (total) ........................................................................4190



EMERGENCY BOLL WEEVIL DIRECT LOAN FINANCING ACCOUNT—Continued




–1–1.................Repayments: Repayments and prepayments .............................1251




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

55Direct loans receivable, gross ....................................................1401–1–1Allowance for subsidy cost (-) ....................................................1405



44Federal liabilities: Accounts payable ..............................................2101


✦

AGRICULTURAL DISASTER RELIEF FUND



..................................16Balance, start of year ....................................................................0100

..................................–16Reconciliation adjustment .............................................................0198

...................................................Balance, start of year ................................................................0199

...................................................Total: Balances and receipts .....................................................2000




Obligations by program activity:..................................1Agricultural Disaster Relief Fund (Direct) ..................................0001

..................................1Total new obligations (object class 41.0) ......................................0900


161616Unobligated balance brought forward, Oct 1 .........................1000..................................1Recoveries of prior year unpaid obligations ...........................1021..................................–1Unobligated balances applied to repay debt .........................1023..................................1Recoveries of prior year paid obligations ...............................1033

161617Unobligated balance (total) ......................................................1050161617Total budgetary resources available ..............................................1930



..................................1Unpaid obligations, brought forward, Oct 1 ..........................3000

..................................1New obligations, unexpired accounts ....................................3010

..................................–1Outlays (gross) ......................................................................3020

..................................–1Recoveries of prior year unpaid obligations, unexpired .........3040Memorandum (non-add) entries:



Outlays, gross:..................................1Outlays from mandatory balances ....................................4101


..................................–1Non-Federal sources .........................................................4123Additional offsets against gross budget authority only:


accounts .......................................................................4143



Memorandum (non-add) entries:–2,612–2,612–2,612Outstanding debt, SOY ..............................................................5080–2,612–2,612–2,612Outstanding debt, EOY ..............................................................5081

The Agricultural Disaster Relief Trust Fund, established under Section902 of the Food, Conservation, and Energy Act of 2008, administered byUSDA Farm Service Agency, used to execute payments to farmers andranchers under the following five disaster assistance programs: Supplement-al Revenue Assistance Payments (SURE) Program, Livestock ForageDisaster Program (LFP), Livestock Indemnity Program (LIP), Tree Assist-ance Program (TAP), and Emergency Assistance for Livestock, HoneyBees, and Farm-Raised Fish (ELAP) Program. The Agricultural Act of2014, the 2014 Farm Bill, extended all but SURE and shifted the fundingauthority for these disaster programs from the Agriculture Disaster ReliefTrust Fund to the Commodity Credit Corporation. In FY 2017, the outlaysare due to residual payments, corrections and/or appeals to obligations in-curred during crop years 2008–2011. Obligations in 2018 will be still berequired to make residual payments for disaster programs under the DisasterTrust authority.

✦

PIMA AGRICULTURE COTTON TRUST FUND



Obligations by program activity:.................1615Pima Cotton Agreements ...........................................................0001



Appropriations, mandatory:.................1616Appropriations transferred from other acct [012–4336] ....1221







.................–16–15Outlays (gross) ......................................................................3020



.................16.................Outlays from new mandatory authority .............................4100

..................................15Outlays from mandatory balances ....................................4101

.................1615Outlays, gross (total) .............................................................4110



The Pima Agriculture Cotton Trust Fund was authorized under Section12314 of the Agricultural Act of 2014, the 2014 Farm Bill, to reduce theeconomic injury to domestic manufacturers resulting from tariffs on cottonfabric that are higher than tariffs on certain apparel articles made of cottonfabric. Mandatory funding as established in the Farm Bill is $16 millionannually from 2014 to 2018, to be transferred from funds of the CommodityCredit Corporation. This program expires in 2018 at the conclusion of the2014 Farm Bill.

✦


AGRICULTURE WOOL APPAREL MANUFACTURERS TRUST FUND



Obligations by program activity:303027Wool Manufacturers Payments ..................................................0001










2..................................Unpaid obligations, brought forward, Oct 1 ..........................3000303027New obligations, unexpired accounts ....................................3010

–30–28–27Outlays (gross) ......................................................................3020





3028.................Outlays from new mandatory authority .............................4100..................................27Outlays from mandatory balances ....................................4101


The Agriculture Wool Apparel Manufacturers Trust Fund was authorizedunder Section 12315 of the Agricultural Act of 2014, the 2014 Farm Bill,to reduce the economic injury to domestic manufacturers resulting fromtariffs on wool fabric that are higher than tariffs on certain apparel articlesmade of wool fabric. Mandatory funding as established in the Farm Bill isthe lesser of the amount the Secretary determines to be necessary to makepayments in that year or $30 million each year from 2014 to 2019, to betransferred from funds of the Commodity Credit Corporation.

AGRICULTURE WOOL APPAREL MANUFACTURERS TRUST FUND


The 2019 President's Budget proposes to eliminate this program in 2019with savings achieved in 2020.

✦

Trust Funds

TOBACCO TRUST FUND




Current law:

..................................3Excise Taxes for Tobacco Assessments, Tobacco Trust

Fund ..................................................................................1110

..................................3Total: Balances and receipts .....................................................2000Appropriations:

Current law:..................................–3Tobacco Trust Fund ................................................................2101






Appropriations, mandatory:..................................3Appropriation (special or trust fund) .................................1201




111Unpaid obligations, brought forward, Oct 1 ..........................3000




..................................3Budget authority, gross .........................................................4090



✦

NATURAL RESOURCES CONSERVATION SERVICEFederal Funds

PRIVATE LANDS 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 establishmentof measures to conserve soil and water (including farm irrigation and land drainageand such special measures for soil and water management as may be necessary toprevent floods and the siltation of reservoirs and to control agricultural relatedpollutants); operation of conservation plant materials centers; classification andmapping of soil; dissemination of information; acquisition of lands, water, and in-terests therein for use in the plant materials program by donation, exchange, orpurchase 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 permanentand temporary buildings; and operation and maintenance of aircraft, $669,033,000to remain available until September 30, 2020: Provided, That appropriations here-under shall be available pursuant to 7 U.S.C. 2250 for construction and improvementof buildings and public improvements at plant materials centers, except that the costof alterations and improvements to other buildings and other public improvementsshall not exceed $250,000: Provided further, That when buildings or other structuresare erected on non-Federal land, that the right to use such land is obtained asprovided in 7 U.S.C. 2250a.

In addition, $850,200,000, to be available for the same time period and for thesame purposes as the appropriation from which transferred, shall be derived bytransfer from the Farm Security and Rural Investment Program for technical assist-ance in support of conservation programs authorized by title XII of the Food SecurityAct of 1985, as amended (16 U.S.C. 3801–3862); section 524(b) of the Federal CropInsurance Act, as amended (7 U.S.C. 1524(b)); and section 502 of the HealthyForests Restoration Act of 2003, as amended (16 U.S.C. 6572): Provided, That,upon a determination that additional funding is necessary for technical assistancefor the purposes provided herein, additional such amounts may be derived bytransfer from the Farm Security and Rural Investment Program: Provided further,That any portion of the funding derived by transfer deemed not necessary for thepurposes provided herein may be transferred to the Farm Security and Rural Invest-ment Program: Provided further, That the transfer authority provided under thisheading is in addition to any other transfer authority provided elsewhere in this Act.


111DEPARTMENT OF AGRICULTURENatural Resources Conservation Service

Federal Funds

PRIVATE LANDS CONSERVATION OPERATIONS—Continued



Obligations by program activity:576839754Conservation Technical Assistance ...........................................0001758577Soil surveys ...............................................................................00029108Snow survey and water forecasting ...........................................000391012Plant materials centers .............................................................0004

.................66Watershed Projects ....................................................................0005850..................................Technical Assistance from 12–1004 .........................................0007

1,519950857Total direct obligations ..................................................................0799..................................4EPA Great Lakes - Reimbursable ...............................................0801

131310Reimbursable Agency Activity ...................................................0802







Appropriations, discretionary:669858864Appropriation ....................................................................1100850..................................Appropriations transferred from other acct [012–1004] ....1121

1,519858864Appropriation, discretionary (total) .......................................1160Spending authority from offsetting collections, discretionary:

13.................7Collected ...........................................................................1700..................................7Change in uncollected payments, Federal sources ............1701

13.................14Spending auth from offsetting collections, disc (total) .........17501,532858878Budget authority (total) .............................................................19001,5329631,001Total budgetary resources available ..............................................1930



549381287Unpaid obligations, brought forward, Oct 1 ..........................30001,532963871New obligations, unexpired accounts ....................................3010

..................................7Obligations ("upward adjustments"), expired accounts ........3011–1,225–795–769Outlays (gross) ......................................................................3020








1,532858878Budget authority, gross .........................................................4000Outlays, gross:


1,225795769Outlays, gross (total) .............................................................4020Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–13.................–14Federal sources .................................................................4030


–13.................–16Offsets against gross budget authority and outlays (total) ....4040Additional offsets against gross budget authority only:




1,519858864Budget authority, net (discretionary) .........................................40701,212795753Outlays, net (discretionary) .......................................................40801,519858864Budget authority, net (total) ..........................................................41801,212795753Outlays, net (total) ........................................................................4190

The Natural Resources Conservation Service (NRCS) supports the ruraleconomy and helps private landowners and producers protect the naturalresource base on private lands. NRCS provides technical assistance tofarmers, ranchers and other private landowners to support the developmentof conservation plans that are designed to safeguard natural resources andimprove wildlife habitat, and provide financial assistance through mandatoryFarm Bill conservation programs to partially offset the cost to installpractices included in those plans. NRCS provides additional science-basedsupport for conservation efforts through soil surveys, snow survey andwater supply forecasting, and plant materials centers. These activities aresupported by appropriated funding, including funding requested in thePrivate Lands Conservation Operations account, and by mandatory fundingin the Farm Security and Rural Investment account. NRCS comprises over10,000 employees with a wide range of natural resource backgrounds, in-cluding soil and rangeland conservation, wildlife biology, forestry andengineering. Through this collective conservationist workforce, the Admin-istration strives to protect the natural resource base on private lands. The2019 Budget requests a total of $669 million for Private Lands ConservationOperations.

Technical assistance.—Through the Conservation Technical Assistance(CTA) Program, NRCS provides its customers and partners - agriculturalproducers, private landowners, conservation districts, Tribes, and otherorganizations - the knowledge and conservation tools they need to conserve,maintain, and improve our private-land natural resources. This assistancecenters around individual and landscape-scale conservation plans thatcontain optimal strategies tailored to protect the resources on the land theymanage. Actions described in the plans help land managers reduce erosion;protect water quality and quantity; improve air quality; enhance the qualityof fish and wildlife habitat; improve long-term sustainability of all lands;and facilitate land use changes while protecting and sustaining our naturalresources. The CTA Program also provides the science-based tools thatsupport conservation planning.

MAIN WORKLOAD FACTORS2019 est.2018 est.2017 actual

50,00055,00047,020Customers receiving technical assistance for planning & application,

number .............................................................................................18.020.020.9Conservation systems planned, million acres ......................................

5.35.95.6Cropland with conservation applied to improve soil quality, million

acres ................................................................................................

9.310.310.9Grazing land with conservation applied to protect the resource base,

million acres ....................................................................................

In addition to technical assistance for conservation planning providedthrough the CTA Program, NRCS also offers technical assistance for thedesign, implementation, and management of cost-shared conservationpractices through mandatory Farm Bill conservation programs under theFarm Security and Rural Investment Programs. This combined technicalassistance funding provides for the salaries and expenses of conservationprofessionals, including NRCS's extensive field staff and a growing numberof technical service providers and other cooperators who work with landmanagers in assessing and applying conservation strategies.

Soil surveys.—The primary focus of the Soil Survey Program is to providecurrent and consistent map interpretations and data sets of the soil resourcesof the United States. Managing soil as a strategic natural resource is keyto the vitality of the Nation's rural economy. Scientists and policy makersuse soil survey information to help evaluate the sustainability and environ-mental effects of land use and management practices. Soil surveys are usedby planners, engineers, farmers, ranchers, developers, and home ownersto evaluate soil suitability and make management decisions for farms, homesites, subdivisions, commercial and industrial sites, and wildlife and recre-ational areas. NRCS is the lead Federal agency for the National CooperativeSoil Survey (NCSS), a partnership of Federal land management agencies,State agricultural experiment stations, private consultants, and State andlocal governments that works to cooperatively investigate, inventory,document, classify, interpret, disseminate, and publish information aboutsoils. NRCS provides the scientific expertise to enable the NCSS to developand maintain a uniform system for mapping and assessing soil resources.

THE BUDGET FOR FISCAL YEAR 2019112 Natural Resources Conservation Service—ContinuedFederal Funds—Continued

MAIN WORKLOAD FACTORS2019 est.2018 est.2017 actual

414330.5Acres mapped annually (millions) ............................................................

Snow survey and water supply forecasting.—The purpose of the programis to provide western States and Alaska with information on future watersupplies for decisions relating to agricultural production, fish and wildlifemanagement, municipal and industrial water supply, urban development,flood control, recreation power generation, and water quality management.NRCS field staff and cooperators collect and analyze data on snow depth,snow water equivalent, and other climate parameters at approximately2,000 remote, high elevation data collection sites. The water supply fore-casts are used by individual farmers and ranchers; water resource man-agers; Federal, State, and local government agencies; municipal and in-dustrial water providers; hydroelectric power generation utilities; irrigationdistricts; fish and wildlife management agencies; reservoir project man-agers; recreationists; Tribal Nations; and the countries of Canada andMexico.

Plant Material Centers (PMCs).— NRCS operates 25 PMCs, each basedin ecologically distinct areas, to evaluate plants and vegetative technologiesto support USDA conservation programs and practices. NRCS's networkof 25 PMCs identify, evaluate, and demonstrate the performance of plantsand plant technologies to help solve natural resource problems and improvethe utilization of our nation's natural resources. PMCs continue to buildon their long and successful history of releasing plants for resource conser-vation, which has been instrumental in increasing the commercial availab-ility of appropriate plant materials for the public. PMC plants and planttechnologies contribute to reducing soil erosion; increasing cropland soilhealth and productivity; restoring wetlands, improving water quality, im-proving wildlife habitat (including pollinators); protecting streambank andriparian areas; stabilizing coastal dunes; producing forage; improving airquality; and addressing other conservation treatment needs.

The studies conducted by PMCs provide a basis for NRCS vegetativerecommendations and conservation practices. The work performed by thePMC staff ensures that NRCS conservation practices are scientifically-based, improves the knowledge of NRCS field staff through PMC-ledtraining sessions and demonstrations, and results in recommendations tomeet new and emerging natural resource issues. The work at PMCs iscarried out cooperatively with State and Federal agencies, universities,Tribes, commercial businesses, and seed and nursery associations. PMCactivities directly benefit private landowners and Federal and State landmanaging agencies.

In 2019 the Farm Production and Conservation (FPAC) Business Centeris expected to be fully implemented with a separate appropriation. TheFPAC Business Center is a centralized operations office within the FPACMission Area responsible for financial management, budgeting, humanresources, information technology, acquisitions/procurement, customerexperience, internal controls, risk management, strategic and annual plan-ning, and other similar activities for the FPAC Mission area and its com-ponent agencies, including the Farm Service Agency (FSA), the NaturalResources Conservation Service (NRCS), and the Risk Management Agency(RMA). This account includes a funding reduction that offsets, in part, therequest for the FPAC Business Center. The funding requested for the FPACBusiness Center is an estimate based on current staffing in the FPACagencies, including NRCS, FSA, and RMA, and the estimated costs forimplementing the Business Center. The final design for the FPAC BusinessCenter is expected to be completed during FY 2018, and that design mayaffect the estimated cost and staff years for the Business Center.




305327308Full-time permanent .............................................................11.1392..................................Full-time permanent .............................................................11.1

232Other than full-time permanent ............................................11.32..................................Other than full-time permanent ............................................11.3

101010Other personnel compensation ..............................................11.56..................................Other personnel compensation ..............................................11.5

717340320Total personnel compensation ...........................................11.9124132124Civilian personnel benefits ........................................................12.1155..................................Civilian personnel benefits ........................................................12.1131414Travel and transportation of persons .........................................21.05..................................Travel and transportation of persons .........................................21.0233Transportation of things ............................................................22.01..................................Transportation of things ............................................................22.0

151515Rental payments to GSA ............................................................23.116..................................Rental payments to GSA ............................................................23.1393837Rental payments to others ........................................................23.228..................................Rental payments to others ........................................................23.2144Communications, utilities, and miscellaneous charges ............23.32..................................Communications, utilities, and miscellaneous charges ............23.3111Printing and reproduction .........................................................24.01..................................Printing and reproduction .........................................................24.0

88257201Other services from non-Federal sources ..................................25.2199..................................Other services from non-Federal sources ..................................25.2

112Other goods and services from Federal sources ........................25.32..................................Other goods and services from Federal sources ........................25.3

39109102Operation and maintenance of facilities ...................................25.421..................................Operation and maintenance of facilities ...................................25.4111Operation and maintenance of equipment ................................25.74109Supplies and materials .............................................................26.04..................................Supplies and materials .............................................................26.0

242221Equipment .................................................................................31.016..................................Equipment .................................................................................31.0111Land and structures ..................................................................32.0

.................11Insurance claims and indemnities ............................................42.0

1,520949856Direct obligations ..................................................................99.0131413Reimbursable obligations .....................................................99.0–1.................2Adjustment for rounding ...........................................................99.5


Employment Summary


4,8475,1914,849Direct civilian full-time equivalent employment ............................10015,056..................................Direct civilian full-time equivalent employment ............................1001


✦

FARM SECURITY AND RURAL INVESTMENT PROGRAMS



Obligations by program activity:.................176127Wetlands Reserve Program ........................................................0001

1,3541,9031,658Environmental Quality Incentives Program ................................0002.................76Agricultural Water Enhancement Program .................................0004.................156Wildlife Habitat Incentives Program ..........................................0005.................1488Farm and Ranch Lands Protection Program ..............................0006.................72Conservation Security Program .................................................0007.................335Grassland Reserve Program ......................................................0008

1,2211,5781,135Conservation Stewardship Program ..........................................0009.................33Agricultural Management Assistance Program .........................0010.................115Chesapeake Bay Watershed Initiative ........................................0011.................8.................Healthy Forests Reserve Program ..............................................0012.................89110Conservation Reserve Program - Direct .....................................0013

156452536Agricultural Conservation Easement Program ...........................0014759753Regional Conservation Partnership Program .............................0015

.................28Mitigation Banking ....................................................................0017

2,8064,5293,662Total direct obligations ..................................................................0799222Reimbursable program activities ..............................................0801

..................................14Reimbursable EPA Great Lakes Environmental Quality Incentives

Program ................................................................................0802




2181,4701,568Unobligated balance brought forward, Oct 1 .........................1000..................................183Recoveries of prior year unpaid obligations ...........................1021

2181,4701,751Unobligated balance (total) ......................................................1050

113DEPARTMENT OF AGRICULTURENatural Resources Conservation Service—Continued


FARM SECURITY AND RURAL INVESTMENT PROGRAMS—Continued




–850..................................Appropriations transferred to other acct [012–1000] ........1120–310..................................Appropriations permanently reduced ................................1130

.................–279.................Appropriations precluded from obligation .........................1134

–1,160–279.................Appropriation, discretionary (total) .......................................1160Appropriations, mandatory:

278179209Appropriation (previously unavailable) .............................1203–60..................................Appropriations transferred to other acct [012–0180] ........1220

4,0143,6283,613Appropriations transferred from other acct [012–4336] ....1221



..................................–179Appropriations precluded from obligation .........................1234

3,9663,5563,379Appropriations, mandatory (total) .........................................1260Spending authority from offsetting collections, mandatory:

.................211Offsetting Collections .......................................................1800


.................218Spending auth from offsetting collections, mand (total) .......18502,8063,2793,397Budget authority (total) .............................................................19003,0244,7495,148Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:2162181,470Unexpired unobligated balance, end of year ..........................1941











–1,160–279.................Budget authority, gross .........................................................4000Outlays, gross:

–602–81.................Outlays from new discretionary authority ..........................4010–92..................................Outlays from discretionary balances .................................4011

–694–81.................Outlays, gross (total) .............................................................4020Mandatory:


879836657Outlays from new mandatory authority .............................41003,3641,2612,225Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:.................–2–14Federal sources .................................................................4120..................................–1Non-Federal sources .........................................................4123

.................–2–15Offsets against gross budget authority and outlays (total) ....4130Additional offsets against gross budget authority only:




3,9663,5563,379Budget authority, net (mandatory) ............................................41604,2432,0952,867Outlays, net (mandatory) ...........................................................41702,8063,2773,379Budget authority, net (total) ..........................................................41803,5492,0142,867Outlays, net (total) ........................................................................4190



Enacted/requested:2,8063,2773,379Budget Authority .......................................................................

3,5492,0142,867Outlays ......................................................................................Legislative proposal, subject to PAYGO:

–40..................................Budget Authority .......................................................................–2..................................Outlays ......................................................................................


Title XII of the Food Security Act of 1985 provides mandatory fundingfor critical conservation efforts on private lands, including critical wetlands,grasslands, forests, and farm and ranch lands. For conservation programswhere NRCS is the lead implementation agency, funds are transferred fromthe Commodity Credit Corporation (CCC) to the Farm Security and RuralInvestment Programs account. This mandatory funding supports NRCS'sefforts to protect the natural resource base on private lands by providingtechnical assistance to farmers, ranchers and other private landowners tosupport the development of conservation plans, and by providing financialassistance to partially offset the cost to install practices necessary to safe-guard natural resources and improve wildlife habitat.

The Agricultural Act of 2014 amended Title XII of the Food SecurityAct of 1985, reauthorizing some programs, repealing some programs (al-though the purposes of these programs are included in other programs),and creating two new conservation programs that are administered byNRCS. A number of conservation programs were extended in the 2019Budget's baseline beyond 2018 based upon scorekeeping conventions.

In 2019, the Administration proposes to show the total staff resourcesnecessary to implement its private lands conservation program in the PrivateLands Conservation Operations account. Importantly, this new display willnot alter the current authorities under which staff resources are providedthrough mandatory and discretionary funding. This account will continueto show the funding provided for the financial assistance costs necessaryfor delivering the following programs:

Environmental Quality Incentives Program (EQIP).—This program isauthorized under section 1240 of the Food Security Act of 1985, asamended. The Agricultural Act of 2014 reauthorizes the program through2018, and the 2019 Budget assumes that the program extends beyond thatdate in the baseline for scorekeeping purposes. The purpose of the programis to promote agricultural production and environmental quality as compat-ible national goals. EQIP promotes the voluntary application of land-basedconservation practices and activities that maintain or improve the conditionof the soil, water, plants, and air; conserve energy; and address other naturalresource concerns. Eligible land includes cropland, rangeland, pastureland,private nonindustrial forestland, tribal land, and other farm or ranch lands.The land must have an identified natural resource concern that poses aserious threat to soil, water, air, or related resources by reason of land usepractices, soil type, terrain, climatic conditions, topography, flooding, salinecharacteristics, or other natural resource factors. In 2019, the Budget pro-poses $1.502 billion for this program and proposes to permanently cancelfunds exceeding this amount for the program in 2019.

Conservation Stewardship Program (CSP).—This program is authorizedby Section 1238D of the Food Security Act of 1985, as amended. TheAgricultural Act of 2014 reauthorized the program through 2018, and the2019 Budget assumes that the program extends beyond that date in thebaseline for scorekeeping purposes. The program encourages producers toaddress resource concerns in a comprehensive manner by undertaking ad-ditional conservation activities and improving, maintaining and managingexisting conservation activities. The 2019 Budget proposes $1.5 billion forthis program for existing contracts and reenrollments and proposes tocancel the enrollment of the authorized level of 10,000,000 acres.

Conservation Reserve Program (CRP) Technical Assistance.—CRP isauthorized by Sections 1231–1235A of the Food Security Act of 1985, asamended, and is administered by the Farm Service Agency. NRCS supportsthe program by providing technical assistance to producers to implementconservation practices on CRP land. The Agricultural Act of 2014 reauthor-ized the program, and the 2019 Budget assumes $95 million in technicalassistance for NRCS support of CRP.


Agricultural Conservation Easement Program (ACEP).—ACEP consistsof two components: 1) an agricultural land easement component underwhich NRCS assists eligible entities to protect agricultural land by limitingnon-agricultural uses of that land through the purchase of agricultural landeasements; and 2) a wetland reserve easement component under whichNRCS provides financial and technical assistance directly to landownersto restore, protect and enhance wetlands through the purchase of wetlandsreserve easements. The program is authorized through 2018 by the Agri-cultural Act of 2014 as a Title XII program under the Food Security Actof 1985. The 2019 Budget assumes that the program extends beyond 2018in the baseline for scorekeeping purposes. For 2019, the Budget includesthe authorized level of funding for ACEP at $250 million.

Regional Conservation Partnership Program (RCPP).—RCPP promotesthe implementation of conservation activities through agreements betweenNRCS and partners and through conservation program contracts andeasements with producers and landowners. The program is authorizedthrough 2018 by the Agricultural Act of 2014 as a Title XII program underthe Food Security Act of 1985. Through agreements between partners andconservation program contracts or easements directly with producers andlandowners, RCPP helps implement conservation projects that may focuson water quality and quantity, soil erosion, wildlife habitat, drought mitig-ation, and flood control, or other regional priorities. The 2019 Budget as-sumes that the program extends beyond 2018 in the baseline for scorekeep-ing purposes. The authorized level of funding for RCPP is $100 million.In addition, seven percent of the funds and acres in covered programs(ACEP, EQIP, CSP, and HFRP) are reserved to ensure additional resourcesare available to carry out this program (funds and acres not committed byApril 1 of each year revert back to the original program for use under thatprogram).

Voluntary Public Access and Habitat Incentive Program (VPA-HIP).—The program is authorized by Section 1240R of the Food SecurityAct of 1985, and Section 2503 of the Agricultural Act of 2014 reauthorizesthe program and provides $40 million for obligation between 2014 through2018 (this program was not extended in the baseline beyond 2018). VPA-HIP is a competitive grant program. Funding is limited to State and Tribalgovernments establishing new public access programs, expanding existingpublic access programs, and/or enhancing wildlife habitat on lands enrolledin public access programs.

In addition to the programs authorized under the Food Security Act of1985, NRCS implements the following conservation programs:

Agricultural Management Assistance Program (AMA).—This programis authorized by Section 524(b) of the Federal Crop Insurance Act (7 U.S.C.1524(b)), as amended. It authorizes $10 million annually for the program,of which NRCS is to receive 50 percent. This program is implemented byNRCS, the Agricultural Marketing Service, and the Risk ManagementAgency. The NRCS AMA activities are carried out in 16 States in whichparticipation in the Federal Crop Insurance Program is historically low.The program provides assistance to producers to mitigate financial risk byusing conservation to reduce soil erosion and improve water quality. The2019 Budget proposes to permanently cancel funding for this program.

NRCS works to deliver conservation programs using its technical fieldstaff and by partnering with public and private entities through the Tech-nical Service Provider (TSP) system. NRCS can contract with TSPs to helpdeliver the Farm Bill programs, or agricultural producers may select TSPsto help plan and implement conservation practices on their operations.

The U.S. has made great strides in improving water quality; however,nonpoint source pollution remains a significant challenge that requirespolicy attention and thoughtful new approaches. In 2019, the Budget con-tinues the agency's efforts to better coordinate conservation efforts amongkey Federal partners, along with agricultural producer organizations, con-servation districts, States, Tribes, non-governmental organizations andother local leaders to identify areas where a focused and coordinated ap-proach can achieve substantial improvements in water quality. The Budgetbuilds upon the collaborative process already underway among Federal

partners to demonstrate substantial improvements in water quality fromconservation programs by ensuring that USDA's key investments throughFarm Bill conservation programs and related efforts are appropriatelyleveraged by other Federal programs.

Finally, the Agricultural Act of 2014 repealed the Wetlands ReserveProgram, Grasslands Reserve Program and the Farmlands and RanchlandsProtection Program and included the purposes of those programs in thenew Agricultural Conservation Easement Program referred to above. TheAgricultural Act of 2014 also repealed the Agricultural Water EnhancementProgram, Chesapeake Bay Watershed Program, Great Lakes Basin Program,and the Cooperative Conservation Partnership Initiative and included thepurposes of those programs in the new Regional Conservation PartnershipProgram referred to above. The Wildlife Habitat Incentives Program hasalso been repealed, and its purposes are now included in the EnvironmentalQuality Incentives Program.

In 2019 the Farm Production and Conservation (FPAC) Business Centeris expected to be fully implemented with a separate appropriation. TheFPAC Business Center is a centralized operations office within the FPACMission Area responsible for financial management, budgeting, humanresources, information technology, acquisitions/procurement, customerexperience, internal controls, risk management, strategic and annual plan-ning, and other similar activities for the FPAC Mission area and its com-ponent agencies, including the Farm Service Agency (FSA), the NaturalResources Conservation Service (NRCS), and the Risk Management Agency(RMA). This account includes a transfer of $60,228,000 to offset fundsassociated with administration and oversight of mandatory conservationprograms. The funding requested for the FPAC Business Center is an es-timate based on current staffing in the FPAC agencies, including NRCS,FSA, and RMA, and the estimated costs for implementing the BusinessCenter. The final design for the FPAC Business Center is expected to becompleted during FY 2018, and that design may affect the estimated costand staff years for the Business Center.




.................424392Full-time permanent .............................................................11.1

.................22Other than full-time permanent ............................................11.3

.................76Other personnel compensation ..............................................11.5

.................433400Total personnel compensation ...........................................11.9

.................167155Civilian personnel benefits ........................................................12.1


.................11Transportation of things ............................................................22.0

.................1616Rental payments to GSA ............................................................23.1

.................3033Rental payments to others ........................................................23.2

.................2.................Communications, utilities, and miscellaneous charges ............23.3

.................11Printing and reproduction .........................................................24.0


.................497246Other services from non-Federal sources ..................................25.2

.................21Other goods and services from Federal sources ........................25.3

.................278Operation and maintenance of facilities ...................................25.4

.................65Supplies and materials .............................................................26.0

.................2118Equipment .................................................................................31.070344362Land and structures ..................................................................32.0

2,7362,9732,409Grants, subsidies, and contributions ........................................41.0


.................1.................Adjustment for rounding ...........................................................99.5


Employment Summary


.................5,4625,097Direct civilian full-time equivalent employment ............................1001



FARM SECURITY AND RURAL INVESTMENT PROGRAMS—Continued

Employment Summary—Continued



FARM SECURITY AND RURAL INVESTMENT PROGRAMS





Appropriations, mandatory:–40..................................Appropriations transferred from other acct [012–4336] ....1221–40..................................Budget authority (total) .............................................................1900–40..................................Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:–40..................................Unexpired unobligated balance, end of year ..........................1941


2..................................Outlays (gross) ......................................................................3020





–2..................................Outlays from new mandatory authority .............................4100–40..................................Budget authority, net (total) ..........................................................4180–2..................................Outlays, net (total) ........................................................................4190

In addition to targeting conservation payments to those farmers with anAdjusted Gross Income of $500,000 or less, the Budget proposes to providean additional $60 million per year for the Environmental Quality IncentivesProgram to address growing demand for conservation planning support.The Budget also proposes to eliminate the Conservation Stewardship Pro-gram and the funding for the Regional Conservation Partnership Program(RCPP). The Administration supports the goals of the RCPP and willevaluate alternative mechanisms such as regulatory reform or legislativeflexibility that would support a similar public-private partnership-basedapproach to conservation work.

✦

WATERSHED AND FLOOD PREVENTION OPERATIONS



Obligations by program activity:.................137137Emergency watershed protection operations .............................0003.................24260Small watershed operations (P.L. 566) ......................................0004.................10635EWP (SANDY) .............................................................................0006

.................485232Total direct obligations ..................................................................0799

.................427Watershed and Flood Prevention Operations (Reimbursable) .....0802







Spending authority from offsetting collections, discretionary:..................................27Collected ...........................................................................1700..................................–27Change in uncollected payments, Federal sources ............1701.................149253Budget authority (total) .............................................................1900

.................527617Total budgetary resources available ..............................................1930Memorandum (non-add) entries:

..................................378Unexpired unobligated balance, end of year ..........................1941












Offsetting collections (collected) from:..................................–26Federal sources .................................................................4030..................................–1Non-Federal sources .........................................................4033

..................................–27Offsets against gross budget authority and outlays (total) ....4040Additional offsets against gross budget authority only:



.................149253Budget authority, net (discretionary) .........................................407025524590Outlays, net (discretionary) .......................................................4080

.................149253Budget authority, net (total) ..........................................................418025524590Outlays, net (total) ........................................................................4190

NRCS watershed programs provide for cooperative actions between theFederal Government and States and their political subdivisions to reducedamage from floodwater, sediment, and erosion; for the conservation, de-velopment, utilization, and disposal of water; and for the conservation andproper utilization of land. Funds in Watershed and Flood Prevention Oper-ations can be used for either flood prevention projects or flood damagerehabilitation efforts, depending upon the needs and opportunities.

Emergency watershed protection program.—NRCS undertakes suchemergency measures for runoff retardation and soil erosion prevention asmay be needed to safeguard life and property from floods and the productsof erosion on any watershed whenever natural elements or forces cause asudden impairment of that watershed. Funding for the Emergency Water-shed Protection Program is typically provided through emergency supple-mental appropriations. The 2019 Budget does not request funding for thisprogram.

Watershed operations authorized by Public Law 78–534.—NRCS cooper-ates with soil conservation districts and other local organizations in planningand installing flood prevention improvements in 11 watersheds authorizedby the Flood Control Act of 1944. The Federal Government shares the costof improvements for flood prevention, agricultural water management, re-creation, and fish and wildlife development. The 2019 budget does not re-quest funding for this program. NRCS is closing out watershed operationsprojects with unobligated balances from prior years.

Small watershed operations authorized by Public Law 83–566.—NRCSprovides technical and financial assistance to local organizations to installmeasures for watershed protection, flood prevention, agricultural watermanagement, recreation, and fish and wildlife enhancement. NRCS is usingunobligated balances from prior years to support watershed operationsprojects. The 2019 budget does not request funding for this program.

Loans through the Agricultural Credit Insurance Fund have been madein 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 as-sumed in 2019.




.................65Full-time permanent .............................................................11.1

.................11Other personnel compensation ..............................................11.5

.................76Total personnel compensation ...........................................11.9

.................22Civilian personnel benefits ........................................................12.1



.................7517Other services from non-Federal sources ..................................25.2

.................1.................Operation and maintenance of facilities ...................................25.4

.................2.................Research and development contracts .......................................25.5

.................1.................Equipment .................................................................................31.0

.................1714Land and structures ..................................................................32.0


.................485232Direct obligations ..................................................................99.0

.................427Reimbursable obligations .....................................................99.0


Employment Summary



.................1018Reimbursable civilian full-time equivalent employment ...............2001

✦

WATERSHED REHABILITATION PROGRAM




Obligations by program activity:.................1413Watershed Rhabilitation Program ..............................................0001.................815Small Watershed Rehabilitation Program ..................................0002

.................2228Total direct obligations ..................................................................0799

.................236Reimbursable program activity .................................................0801








–46..................................Appropriations permanently reduced ................................1130.................–49.................Appropriations precluded from obligation .........................1134

–46–3712Appropriation, discretionary (total) .......................................1160Appropriations, mandatory:

495971Appropriation (previously unavailable) .............................1203



..................................–59Appropriations precluded from obligation .........................1234


..................................11Collected ...........................................................................1700

.................1830Budget authority (total) .............................................................1900









–46–3723Budget authority, gross .........................................................4000Outlays, gross:

–7..................................Outlays from new discretionary authority ..........................401061812Outlays from discretionary balances .................................4011

–11812Outlays, gross (total) .............................................................4020Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:..................................–11Non-Federal sources .........................................................4033


Outlays, gross:78.................Outlays from new mandatory authority .............................4100




Under the authorities of Section 14 of the Watershed Protection and FloodPrevention Act (16 U.S.C. 1012), assistance is provided to communitiesto support the rehabilitation of local dams originally constructed with fed-eral assistance and near or past their evaluated life expectancy. No fundingis requested in the 2019 Budget. The Budget proposes to permanentlycancel $46 million of mandatory funds available (see General Provisionsfor the Department of Agriculture).



Direct obligations:.................1.................Personnel compensation: Full-time permanent .........................11.1.................11Advisory and assistance services ..............................................25.1.................4.................Other services from non-Federal sources ..................................25.2.................1.................Operation and maintenance of facilities ...................................25.4.................1526Grants, subsidies, and contributions ........................................41.0

.................2227Direct obligations ..................................................................99.0

.................235Reimbursable obligations .....................................................99.0

..................................2Adjustment for rounding ...........................................................99.5


Employment Summary



..................................18Reimbursable civilian full-time equivalent employment ...............2001

✦

HEALTHY FORESTS RESERVE PROGRAM

The Healthy Forests Reserve Program (HFRP), which is authorized byTitle V of the Healthy Forests Restoration Act of 2003 (Public Law108–148), helps landowners restore, enhance, and protect forest resourceson private lands through easements and financial assistance. HFRP focuseson forest ecosystems to: 1) promote the recovery of threatened and en-dangered species; 2) improve biodiversity; and 3) enhance carbon sequest-ration.

Administered by NRCS, HFRP is a voluntary program with enrollmentlimited to land that is privately-held or owned by a Tribe. Land enrolledin HFRP must have a restoration plan that includes practices necessary torestore and enhance habitat for species listed as threatened or endangered,



HEALTHY FORESTS RESERVE PROGRAM—Continued

or are candidates for the threatened or endangered species list. Technicalassistance is provided by USDA to assist owners in complying with theterms of restoration plans under HFRP.

The 2019 Budget does not request funding for HFRP.✦

WATER BANK PROGRAM



Obligations by program activity:.................54Water Bank Program ..................................................................0001








–4–8–2Outlays (gross) ......................................................................3020








The Water Bank Program, which is authorized by the Water Bank Actof 1970 (16 U.S.C. 1301–1311), is designed to preserve, restore, and im-prove wetlands, to conserve surface waters, to preserve and improve habitatfor migratory waterfowl and other wildlife resources, and to promotecomprehensive and total water management planning. Through the WaterBank Program, NRCS enters into ten-year agreements with landownersand operators to conserve water; to preserve, maintain, and improve theNation's wetlands; to increase waterfowl habitat in migratory waterfowlnesting, breeding, and feeding areas in the United States; and to secure re-creational and environmental benefits for the Nation. No funding is reques-ted in the 2019 Budget for this program.



.................44Direct obligations: Grants, subsidies, and contributions ...............41.0



Employment Summary


.................1.................Direct civilian full-time equivalent employment ............................1001

✦

DAMAGE ASSESSMENT AND RESTORATION REVOLVING FUND



Obligations by program activity:14.................Damage Assessment & Restoration Revolving ..........................0001

14.................Total new obligations, unexpired accounts (object class 25.2) .......0900



Appropriations, mandatory:111Appropriations transferred from other acct [014–1618] ....1221111Budget authority (total) .............................................................1900143Total budgetary resources available ..............................................1930



1..................................Unpaid obligations, brought forward, Oct 1 ..........................300014.................New obligations, unexpired accounts ....................................3010

–2–3.................Outlays (gross) ......................................................................3020

.................1.................Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

1..................................Obligated balance, start of year ............................................3100.................1.................Obligated balance, end of year ..............................................3200



11.................Outlays from new mandatory authority .............................410012.................Outlays from mandatory balances ....................................4101

23.................Outlays, gross (total) .............................................................4110111Budget authority, net (total) ..........................................................418023.................Outlays, net (total) ........................................................................4190

✦

Trust Funds

MISCELLANEOUS CONTRIBUTED FUNDS




Current law:11.................Miscellaneous Contributed Funds .........................................1130

21.................Total: Balances and receipts .....................................................2000









Funds received in this account from State, local, and other organizationsare available for work under cooperative agreements for soil survey, water-shed protection, and resource conservation and development activities.

✦


RURAL DEVELOPMENTFederal Funds



For necessary expenses for carrying out the administration and implementationof programs in the Rural Development mission area, including activities with insti-tutions concerning the development and operation of agricultural cooperatives; andfor cooperative agreements; $156,054,000: Provided, That notwithstanding anyother provision of law, funds appropriated under this heading may be used for ad-vertising and promotional activities that support the Rural Development missionarea.




Obligations by program activity:156233235Salaries and expenses ...............................................................0001

456447457Reimbursable program - Program Transfers and Reimbursable

Obligations ............................................................................0801



16113Unobligated balance brought forward, Oct 1 .........................1000

.................521Unobligated balance transfers between expired and unexpired

accounts ...........................................................................1012



..................................–9Unobligated balance of appropriations permanently

reduced .........................................................................1131






















The Rural Development Salaries and Expenses (S&E) account is a con-solidated account to administer all Rural Development programs, includingprograms administered by the Rural Utilities Service (RUS), the RuralHousing Service (RHS), and the Rural Business-Cooperative Service (RBS).The 2018 Budget eliminates new program funding for programs admin-istered by RBS. For more information about the Rural Development missionarea go to www.rurdev.usda.gov/Home.html.





85122124Total personnel compensation ...........................................11.9254344Civilian personnel benefits ........................................................12.1454Travel and transportation of persons .........................................21.0577Rental payments to GSA ............................................................23.1577Rental payments to others ........................................................23.2

..................................1Communications, utilities, and miscellaneous charges ............23.3111Printing and reproduction .........................................................24.0455Advisory and assistance services ..............................................25.111.................Other services from non-Federal sources ..................................25.2121Other goods and services from Federal sources ........................25.3

101313Operation and maintenance of facilities ...................................25.4142627Research and development contracts .......................................25.5111Supplies and materials .............................................................26.0



Employment Summary


1,0061,6561,650Direct civilian full-time equivalent employment ............................10012,9393,1693,157Reimbursable civilian full-time equivalent employment ...............2001

✦

RURAL DEVELOPMENT DISASTER ASSISTANCE FUND




.................–1.................Unobligated balance transfer to other accts [012–1980] ......1010

.................1.................Unobligated balance transfer from other acct [012–1980] ....1011



✦

✦

RURAL HOUSING SERVICEFederal Funds

RURAL HOUSING ASSISTANCE GRANTS


119DEPARTMENT OF AGRICULTURERural Housing Service

Federal Funds

RURAL HOUSING ASSISTANCE GRANTS—Continued



Obligations by program activity:.................3029Very Low-Income Housing Repair Grants ...................................0012.................55Rural Housing Preservation Grants ...........................................0016




112Recoveries of prior year unpaid obligations ...........................1021




reduced .........................................................................1131

.................3431Appropriation, discretionary (total) .......................................116033736Total budgetary resources available ..............................................1930




–9–35–31Outlays (gross) ......................................................................3020–1–1–2Recoveries of prior year unpaid obligations, unexpired .........3040








The very low-income housing repair grant program is authorized undersection 504 of the Housing Act of 1949, as amended. This grant programenables very low-income elderly residents in rural areas to improve ormodernize their dwellings, to make the dwelling safer or more sanitary, orto remove health and safety hazards. No funding is requested in the 2019Budget.

For other housing assistance grants authorized for funding in this accountsuch as housing preservation grants and supervisory and technical assistancegrants as authorized by section 509(f) and 525 of the Housing Act of 1949,as amended, no funding is requested in the 2019 Budget.

✦

RENTAL ASSISTANCE PROGRAM


For rental assistance agreements entered into or renewed pursuant to the authorityunder section 521(a)(2) or agreements entered into in lieu of debt forgiveness orpayments for eligible households as authorized by section 502(c)(5)(D) of theHousing Act of 1949, and for the rural housing voucher program as authorized undersection 542 of the Housing Act of 1949, notwithstanding subsection (b) of suchsection, $1,351,400,000, of which $40,000,000 shall be available until September30, 2020; and in addition such sums as may be necessary, as authorized by section521(c) of the Act, to liquidate debt incurred prior to fiscal year 1992 to carry outthe rental assistance program under section 521(a)(2) of the Act: Provided, Thatof the amounts made available under this heading, $1,331,400,000 shall be availablefor rental assistance agreements: Provided further, That rental assistance agreementsentered into or renewed during the current fiscal year shall be funded for a one-

year period: Provided further, That tenants in projects financed under section 514or 515 shall contribute a minimum of $50 per month towards the rent, as determinedby the Secretary, unless the Secretary determines a lower amount because the tenantqualifies for a hardship exemption, which shall, to the extent practicable, be consist-ent with similar hardship exemption requirements and conditions established by theSecretary of Housing and Urban Development for similar programs: Provided fur-ther, That notwithstanding any other provision of the Act, the Secretary may recap-ture funds provided for rental assistance under agreements entered into prior tofiscal year 2019 for a project that the Secretary determines no longer needs rentalassistance: Provided further, That such recaptured funds shall remain available forobligation in fiscal year 2019 for the purposes specified under this heading: Providedfurther, That of the amounts made available under this heading, $20,000,000 shallbe available for rural housing vouchers to any low-income household, including ahousehold that does not receive rental assistance, residing in a property financedwith a section 515 loan that has been prepaid or otherwise paid off after September30, 2005: Provided further, That the amount of such vouchers shall be equal to thedifference between comparable market rent for the section 515 unit and the tenantpaid rent for such unit: Provided further, That such vouchers shall be subject to theavailability of annual appropriations: Provided further, That the Secretary shall,to the maximum extent practicable, administer such vouchers with current regulationsand administrative guidance applicable to section 8 housing vouchers administeredby the Secretary of the Department of Housing and Urban Development: Providedfurther, That any balances available for the rural housing voucher program in the"Multi-Family Housing Revitalization Program Account" shall be transferred toand merged with this account and available for the rural housing voucher program:Provided further, That if the Secretary determines that the amount made availablefor vouchers or rental assistance in this Act is not needed for vouchers or rentalassistance, the Secretary may use such funds for any of the programs describedunder this heading.




Obligations by program activity:1,3711,3951,365Rental assistance program .......................................................0001

20..................................Vouchers ....................................................................................0002

1,3911,3951,365Total new obligations (object class 41.0) ......................................0900


4040.................Unobligated balance brought forward, Oct 1 .........................10002..................................Unobligated balance transfer from other acct [012–2002] ....1011

4240.................Unobligated balance (total) ......................................................1050Budget authority:


678Appropriation ....................................................................1100–6–7–8Appropriations substituted for borrowing authority ...........1139

1,3511,3951,405Appropriation, discretionary (total) .......................................11601,3931,4351,405Total budgetary resources available ..............................................1930



1,174975784Unpaid obligations, brought forward, Oct 1 ..........................30001,3911,3951,365New obligations, unexpired accounts ....................................3010

–1,631–1,196–1,174Outlays (gross) ......................................................................3020

17..................................Unpaid obligations transferred from other accts

[012–2002] .......................................................................3031

9511,174975Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

1,174975784Obligated balance, start of year ............................................31009511,174975Obligated balance, end of year ..............................................3200



605628480Outlays from new discretionary authority ..........................40101,026568694Outlays from discretionary balances .................................4011

THE BUDGET FOR FISCAL YEAR 2019120 Rural Housing Service—ContinuedFederal Funds—Continued



Additional offsets against gross budget authority only:..................................1Offsetting collections credited to expired accounts ...........4052


The rental assistance program is authorized under section 521(a)(2) ofthe Housing Act of 1949, as amended, and is designed to reduce rent ex-penses for very low-income and low-income families living in RHS-fin-anced rural rental and farm labor housing projects. The rural housingvoucher program is authorized under section 542 of the Housing Act of1949 and may be used to assist families displaced when the mortgage onthe RHS-financed rural rental housing projects is prepaid or paid in full.A voucher can be used in lieu of rental assistance, which is no longeravailable once the property is paid-off in full. Beginning in 2019, the ap-propriations for rental assistance and vouchers is being combined to facil-itate funding flexibilities with like programs. A total of $1.35 billion isbeing requested, of which $1.33 billion is provided for renewals of existingrental assistance contract, maintaining a sustainable rental assistance pro-gram. In addition, the Budget requests that residents receiving rental assist-ance payments will be required to pay a minimum rent of $50 per month,unless the Department determines a lower amount because the tenantqualifies for a hardship exemption. Of the total amount provided, the Budgetrequests $20 million for housing vouchers. The vouchers related to prepay-ments will be awarded based on prioritization of need as determined bythe Secretary. In addition, all balances related to rural housing voucherprogram will be transferred and merged in to this account from the Multi-family Housing Revitalization Account.

From 1978 through 1991, the rental assistance program was funded underthe Rural Housing Insurance Fund (RHIF). Beginning in 1992, pursuantto Credit Reform, a separate grant account was established for this program.Prior year obligations are funded with "such sums" amounts to cover thosepre-credit reform contracts in RHIF.

✦

MULTI-FAMILY HOUSING REVITALIZATION PROGRAM ACCOUNT




Obligations by program activity:.................2322Grants .......................................................................................0010.................2.................MFH Pilot Program .....................................................................0011

.................2522Direct program activities, subtotal ................................................0091Credit program obligations:

.................2414Direct loan subsidy ................................................................0701

.................41Subsidy for modifications of direct loans ..............................0703


.................11Administrative expenses .......................................................0709





–2..................................Unobligated balance transfer to other accts [012–0137] ......1010–3..................................Unobligated balance transfer to other accts [012–2081] ......1010

.................56Recoveries of prior year unpaid obligations ...........................1021

.................179Unobligated balance (total) ......................................................1050


.................4241Appropriation ....................................................................1100Appropriations, mandatory:

.................21Appropriation ....................................................................1200



.................512Unexpired unobligated balance, end of year ..........................1941


655974Unpaid obligations, brought forward, Oct 1 ..........................3000.................5639New obligations, unexpired accounts ....................................3010.................–45–48Outlays (gross) ......................................................................3020

–17..................................Unpaid obligations transferred to other accts [012–0137] ....3030–48..................................Unpaid obligations transferred to other accts [012–2081] ....3030

.................–5–6Recoveries of prior year unpaid obligations, unexpired .........3040






.................3538Outlays from discretionary balances .................................4011

.................4347Outlays, gross (total) .............................................................4020Mandatory:







Direct loan levels supportable by subsidy budget authority:.................1.................Multi-Family Housing Relending Demo ......................................115001.................3225Multi-Family Housing Revitalization Seconds ............................115002.................13.................Multi-Family Revitalization Zero ................................................115003

.................4625Total direct loan levels ..............................................................115999Direct loan subsidy (in percent):

.................29.49.................Multi-Family Housing Relending Demo ......................................132001

.................54.6857.01Multi-Family Housing Revitalization Seconds ............................132002

.................48.9251.29Multi-Family Revitalization Zero ................................................132003

.................52.5057.01Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

.................1814Multi-Family Housing Revitalization Seconds ............................133002

.................6.................Multi-Family Revitalization Zero ................................................133003

.................2414Total subsidy budget authority ..................................................133999Direct loan subsidy outlays:

.................1.................Multi-Family Housing Relending Demo ......................................134001

.................1614Multi-Family Housing Revitalization Seconds ............................134002

.................210Multi-Family Revitalization Zero ................................................134003

..................................3Multi-Family Housing Revitalization Modifications ...................134006

.................1927Total subsidy outlays .................................................................134999Direct loan reestimates:

.................1.................Multi-Family Housing Relending Demo ......................................135001

..................................1Multi-Family Housing Revitalization Seconds ............................135002

.................–2.................Multi-Family Revitalization Zero ................................................135003

.................–18–5Multi-Family Housing Revitalization Modifications ...................135006

.................–19–4Total direct loan reestimates .....................................................135999

This account includes funding for vouchers as authorized in section 542of the Housing Act of 1949 to be used to assist families displaced whenthe mortgage on the RHS-financed rural rental housing projects is prepaidor paid in full. A voucher can be used in lieu of rental assistance, which isno longer available once the property is paid-off. This account also reflectsthe funding for pilot programs to repair and rehabilitate multifamily housingprojects financed under USDA's section 514 and 515 direct loan programs.These have included grants and direct loans (zero percent, soft-second,modifications, and the relending demonstration program) since 2006. Be-ginning in 2019, $20 million in funding for the rural housing voucher

121DEPARTMENT OF AGRICULTURERural Housing Service—Continued


MULTI-FAMILY HOUSING REVITALIZATION PROGRAM ACCOUNT—Continued

program is being requested in the Rental Assistance Program Account tofacilitate funding flexibilities with like programs. All balances in this ac-count associated with vouchers will be transferred and merged with theRental Assistance Program Account as well. No funding is requested inthe 2019 Budget for the multi-family housing revitalization pilot program.Consistent with facilitating funding flexibilities and to be able to modifypost credit reform section 515 multi-family housing loans in the future, allthe balances associated with the multi-family housing demonstration pro-grams in this account will be transferred and merged with the RuralHousing Insurance Fund Program Account.

✦

MULTIFAMILY HOUSING REVITALIZATION DIRECT LOAN FINANCING ACCOUNT




.................4625Direct loan obligations ..........................................................0710

.................1514Payment of interest to Treasury .............................................0713



..................................4Adjusting payments to liquidating accounts .........................0744





.................–4–14Unobligated balances applied to repay debt .........................1023

..................................–11Unobligated balance of borrowing authority withdrawn ........1024Financing authority:

Borrowing authority, mandatory:.................8130Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:.................2853Collected ...........................................................................1800.................9–16Change in uncollected payments, Federal sources ............1801

.................–37–14Spending authority from offsetting collections applied to

repay debt .....................................................................1825

..................................23Spending auth from offsetting collections, mand (total) .......1850






–92..................................Unpaid obligations transferred to other accts [012–4215] ....3030..................................–14Recoveries of prior year unpaid obligations, unexpired .........3040

.................9285Unpaid obligations, end of year .................................................3050Uncollected payments:

–51–42–58Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060.................–916Change in uncollected pymts, Fed sources, unexpired ..........3070

51..................................Uncollected pymts from Fed sources transferred to other

accounts ...........................................................................3080

.................–51–42Uncollected pymts, Fed sources, end of year .............................3090Memorandum (non-add) entries:



.................8153Budget authority, gross .........................................................4090Financing disbursements:

.................7497Outlays, gross (total) .............................................................4110Offsets against gross financing authority and disbursements:


.................–21–28Federal sources - subsidy outlays from program

account .........................................................................4120

..................................–19Modification Costs ............................................................4120

.................–4–3Interest on uninvested funds ............................................4122

.................–2–2Repayments of Principal ...................................................4123

.................–1–1Interest receivable on loans ..............................................4123

.................–28–53Offsets against gross budget authority and outlays (total) ....4130Additional offsets against financing authority only (total):

.................–916Change in uncollected pymts, Fed sources, unexpired .......4140

.................4416Budget authority, net (mandatory) ............................................4160

.................4644Outlays, net (mandatory) ...........................................................4170





Position with respect to appropriations act limitation on obligations:.................4033Direct loan obligations from current-year authority ...................1111.................71Limitation available from carry-forward ....................................1121.................–1–9Unobligated direct loan limitation (-) ........................................1142

.................4625Total direct loan obligations ..................................................1150


Disbursements:.................3644Direct loan disbursements ....................................................1231.................433Purchase of loans assets from a liquidating account ...........1233.................–2–2Repayments: Repayments and prepayments .............................1251

–755..................................Write-offs for default: Other adjustments, net (+ or -) ..............1264

.................755717Outstanding, end of year .......................................................1290

This account reflects the financing for the direct pilot program loans (zeropercent, soft-second, modifications, and the relending demonstration pro-gram) authorized in the Multifamily Housing Revitalization Program Ac-count. Beginning in 2019, this activity will be reflected in the RuralHousing Insurance Fund Direct Loan Financing Account. This transitionwill facilitate the modification of post credit reform section 515 multifamilyhousing direct loans going forward.




Net value of assets related to post–1991 direct loans receivable:717642Direct loans receivable, gross ....................................................14016148Interest receivable .....................................................................1402






✦

MUTUAL AND SELF-HELP HOUSING GRANTS




Obligations by program activity:.................3037Mutual and self-help housing grants ........................................0001





8713Unobligated balance (total) ......................................................1050



.................3030Appropriation ....................................................................110083743Total budgetary resources available ..............................................1930












This program is authorized under section 523 of the Housing Act of 1949,as amended. Grants and contracts are made for the purpose of providingtechnical and supervisory assistance to groups of families to enable themto build their own homes through the mutual exchange of labor. No fundingis requested in the 2019 Budget for this program.

✦

RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT


For gross obligations for the principal amount of direct loans as authorized bysection 306 and described in section 381E(d)(1) of the Consolidated Farm andRural Development Act, $3,500,000,000 for direct loans: Provided, That for thepurposes of determining eligibility or level of program assistance the Secretary shallnot include incarcerated prison populations.

In addition, for administrative expenses necessary to carry out the direct andguaranteed loan programs, $147,591,000 shall be paid to the appropriation for"Rural Development, Salaries and Expenses".




Obligations by program activity:.................3434CF Grants ..................................................................................0010.................54Rural Community Development Initiative Grants .......................0012.................76Economic Impact Initiative Grants ............................................0013


.................44Loan guarantee subsidy ........................................................0702




.................35Interest on reestimates of loan guarantee subsidy ................0708148..................................Administrative expenses .......................................................0709






141310Unobligated balance (total) ......................................................1050


1484747Appropriation ....................................................................1100

–3.................–1Unobligated balance of appropriations permanently

reduced .........................................................................1131


.................291246Appropriation ....................................................................1200145338292Budget authority (total) .............................................................1900159351302Total budgetary resources available ..............................................1930












.................291246Outlays from new mandatory authority .............................4100145338292Budget authority, net (total) ..........................................................4180195340287Outlays, net (total) ........................................................................4190



Direct loan levels supportable by subsidy budget authority:3,5002,6002,596Community Facility Loans .........................................................115002

..................................4Direct loan levels .......................................................................115005


–7.61–8.10–2.56Community Facility Loans .........................................................132002..................................–3.83Subsidy rate ..............................................................................132005

–7.61–8.10–2.56Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

–266–211–67Community Facility Loans .........................................................133002


–122–122–118Community Facility Loans .........................................................134002


.................61176Community Facility Loans .........................................................135002


Guaranteed loan levels supportable by subsidy budget authority:.................137150Community Facility Loan Guarantees ........................................215002

.................137150Total loan guarantee levels .......................................................215999Guaranteed loan subsidy (in percent):

.................3.272.24Community Facility Loan Guarantees ........................................232002

.................3.272.24Weighted average subsidy rate ..................................................232999Guaranteed loan subsidy budget authority:

.................43Community Facility Loan Guarantees ........................................233002

.................43Total subsidy budget authority ..................................................233999Guaranteed loan subsidy outlays:

563Community Facility Loan Guarantees ........................................234002


.................513Community Facility Loan Guarantees ........................................235002

.................513Total guaranteed loan reestimates ............................................235999



RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT—Continued

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program—Continued


Administrative expense data:148..................................Budget authority .......................................................................3510148..................................Outlays from new authority .......................................................3590

This account funds the direct community facility loans and communityfacility grants, which are authorized under sections 306(a)(1) and 306(a)(19)of the Consolidated Farm and Rural Development Act, as amended. Loansare provided to local governments and nonprofit organizations for theconstruction and improvement of community facilities providing essentialservices in rural areas of not more than 20,000 population, such as hospitalsand fire stations. Total program level in 2018 is projected to be $3.5 billionfor direct loans. The 2019 Budget proposes no guaranteed loans or fundingfor place-based community projects, Rural Community Development Ini-tiative, and Tribal College Grants. The Budget also proposes to permanentlycancel $3 million in unobligated balances from this account.

As required by the Federal Credit Reform Act of 1990, this account re-cords, for this program, the subsidy costs associated with the direct loansobligated and loan guarantees committed in 1992 and beyond (includingcredit sales of acquired property), as well as administrative expenses ofthis program. The subsidy amounts are estimated on a present value basis;the administrative expenses are estimated on a cash basis. For administrativecosts, the 2019 Budget requests $147.6 million.

✦

RURAL COMMUNITY FACILITY DIRECT LOANS FINANCING ACCOUNT




3,5002,6002,600Direct loan obligations ..........................................................0710313304295Payment of interest to Treasury .............................................071326621167Negative subsidy obligations ................................................0740










Spending authority from offsetting collections, mandatory:9731,130951Collected ...........................................................................1800

..................................–534Spending authority from offsetting collections applied to

repay debt .....................................................................1825

9731,130417Spending auth from offsetting collections, mand (total) .......18504,0793,3333,136Budget authority (total) .............................................................19004,0793,3333,136Total budgetary resources available ..............................................1930








6,3065,4154,721Obligated balance, start of year ............................................3100

8,2106,3065,415Obligated balance, end of year ..............................................3200




Offsetting collections (collected) from:.................–278–228Federal sources .................................................................4120

–67–65–63Interest on uninvested funds ............................................4122–578–502–420Repayment of principal .....................................................4123–328–285–240Interest received on loans .................................................4123

–973–1,130–951Offsets against gross budget authority and outlays (total) ....4130





..................................–400Unobligated direct loan limitation (-) ........................................1142


Cumulative balance of direct loans outstanding:8,6247,4976,290Outstanding, start of year .........................................................12101,6141,6401,637Disbursements: Direct loan disbursements ...............................1231–578–502–421Repayments: Repayments and prepayments .............................1251

Write-offs for default:–11–11–12Direct loans ...........................................................................1263

..................................3Other adjustments, net (+ or -) .............................................1264


This account reflects the funding from direct community facility loansto non-profit organizations and local governments for the construction andimprovement of community facilities providing essential services in ruralareas, such as hospitals, libraries, and fire/police stations. Loans madeprior to 1992 are recorded in the Rural Development Insurance Fund Li-quidating Account.




1,005888Fund balances with Treasury .....................................................1101Investments in US securities:


7,4976,290Direct loans receivable, gross ....................................................14015348Interest receivable .....................................................................1402




Federal liabilities:8,4767,207Accounts payable .......................................................................210121752Other ..........................................................................................2105


8,6937,259Total liabilities and net position .....................................................4999

✦

RURAL COMMUNITY FACILITY GUARANTEED LOANS FINANCING ACCOUNT




111110Default claim payments on principal ....................................0711111Payment of interest to Treasury .............................................0713






506361Unobligated balance brought forward, Oct 1 .........................1000.................–15–13Unobligated balances applied to repay debt .........................1023


Borrowing authority, mandatory:..................................8Borrowing authority ...........................................................1400


–6–1–1Change in uncollected payments, Federal sources ............1801






Uncollected payments:–12–13–14Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060

611Change in uncollected pymts, Fed sources, unexpired ..........3070


–12–13–14Obligated balance, start of year ............................................3100–6–12–13Obligated balance, end of year ..............................................3200




Offsetting collections (collected) from:–5–19–21Federal sources .................................................................4120–2–2–1Interest on uninvested funds ............................................4122–1–1–1Guarantee Fees .................................................................4123–1–1–1Repayment of loan principal .............................................4123


611Change in uncollected pymts, Fed sources, unexpired .......4140

..................................8Budget authority, net (mandatory) ............................................41603–3–8Outlays, net (mandatory) ...........................................................4170

..................................8Budget authority, net (total) ..........................................................41803–3–8Outlays, net (total) ........................................................................4190




.................137148Guaranteed loan commitments from current-year authority .......2111

..................................4Limitation available from carry-forward ....................................2121

..................................–3Uncommitted loan guarantee limitation ....................................2142

.................137149Total guaranteed loan commitments .....................................2150

.................112.................Guaranteed amount of guaranteed loan commitments .................2199

Cumulative balance of guaranteed loans outstanding:1,1221,1291,216Outstanding, start of year .........................................................221015415992Disbursements of new guaranteed loans ..................................2231

–154–155–166Repayments and prepayments ..................................................2251Adjustments:

–11–11–10Terminations for default that result in claim payments ........2263..................................–3Other adjustments, net .........................................................2264


Memorandum:


year .......................................................................................2299


in loans receivable:8713Outstanding, start of year .....................................................2310

22.................Disbursements for guaranteed loan claims ...........................2331–1..................................Repayments of loans receivable ............................................2351

.................–1–2Write-offs of loans receivable ................................................2361

..................................–4Other adjustments, net .........................................................2364


This account finances loan guarantee commitments for essential com-munity facilities in rural areas. Loans made prior to 1992 are recorded inthe Rural Development Insurance Fund Liquidating Account.





713Defaulted guaranteed loans receivable, gross ...........................1501......................................................Allowance for subsidy cost (-) ....................................................1505


1599


1520Federal liabilities: Resources payable to Treasury ..........................21044340Non-Federal liabilities: Liabilities for loan guarantees ..................2204



✦

RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT


For gross obligations for the principal amount of direct and guaranteed loans asauthorized by title V of the Housing Act of 1949, to be available from funds in therural housing insurance fund, as follows: $24,000,000,000 shall be for unsubsidizedguaranteed loans; $250,000,000 for section 538 guaranteed multi-family housingloans; and $10,000,000 for credit sales of single family housing acquired property:Provided, That to support the loan program level for section 538 guaranteed loansmade available under this heading the Secretary may charge or adjust any fees tocover the projected cost of such loan guarantees pursuant to the provisions of theCredit Reform Act of 1990 (2 U.S.C. 661 et seq.), and the interest on such loansmay not be subsidized: Provided further, That applicants in communities that havea current rural area waiver under section 541 of the Housing Act of 1949 (42 U.S.C.1490q) shall be treated as living in a rural area for purposes of section 502 guaran-teed loans provided under this heading: Provided further, That all balances, includingobligated balances, available for all demonstration programs for the preservationand revitalization of section 514, 515, and 516 multi-family rental housing propertiesin the "Multi-Family Housing Revitalization Program Account" shall be transferredto and merged with this account, and shall be available for the preservation andrevitalization of section 514, 515, and 516 multi-family rental housing properties,including the restructuring of existing USDA multi-family housing loans: Providedfurther, That following the transfer of balances described in the preceding proviso,any adjustments to obligations for demonstration programs for the preservationand revitalization of section 514, 515, and 516 multi-family rental housing propertiesincurred in the "Multi-Family Housing Revitalization Program Account" shall bemade in this account.

In addition, for administrative expenses necessary to carry out the direct andguaranteed loan programs, $244,249,000 shall be paid to the appropriation for"Rural Development, Salaries and Expenses".




Obligations by program activity:.................1114Farm labor housing grants ........................................................0011

Credit program obligations:.................6190Direct loan subsidy ................................................................0701.................6334Reestimates of direct loan subsidy .......................................0705.................4942Interest on reestimates of direct loan subsidy .......................0706



RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT—Continued




.................8131Interest on reestimates of loan guarantee subsidy ................0708244409412Administrative expenses .......................................................0709





3..................................Unobligated balance transfer from other acct [012–2002] ....10111617Recoveries of prior year unpaid obligations ...........................1021



..................................–1Appropriations transferred to other acct [012–4609] ........1120


.................162484Appropriation ....................................................................1200244668993Budget authority (total) .............................................................19002966911,018Total budgetary resources available ..............................................1930




64106120Unpaid obligations, brought forward, Oct 1 ..........................30002446431,000New obligations, unexpired accounts ....................................3010

–311–679–990Outlays (gross) ......................................................................3020


[012–2002] .......................................................................3031

–1–6–17Recoveries of prior year unpaid obligations, unexpired .........3040..................................–7Recoveries of prior year unpaid obligations, expired .............3041











Direct loan levels supportable by subsidy budget authority:.................1,0001,000Section 502 Single-Family Housing ...........................................115001.................3935Section 515 Multi-Family Housing .............................................115004.................3020Section 504 Housing Repair ......................................................115007.................2835Section 514 Farm Labor Housing ...............................................115011.................10.................Section 524 Site Development ...................................................115012.................6.................Section 523 Self-Help Housing ..................................................115013

22.................Single-Family Housing Credit Sales ..........................................115014..................................1Section 502 Single Family Housing - ARRA ...............................115019

21,1151,091Total direct loan levels ..............................................................115999Direct loan subsidy (in percent):

.................3.856.77Section 502 Single-Family Housing ...........................................132001

.................26.3129.60Section 515 Multi-Family Housing .............................................132004

.................12.3313.94Section 504 Housing Repair ......................................................132007

.................26.7229.56Section 514 Farm Labor Housing ...............................................132011

.................1.16.................Section 524 Site Development ...................................................132012

.................7.35.................Section 523 Self-Help Housing ..................................................132013–2.42–5.45–2.36Single-Family Housing Credit Sales ..........................................132014

..................................0.00Section 502 Single Family Housing - ARRA ...............................132019

–2.425.428.36Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

.................3967Section 502 Single-Family Housing ...........................................133001

.................1010Section 515 Multi-Family Housing .............................................133004

.................43Section 504 Housing Repair ......................................................133007

.................810Section 514 Farm Labor Housing ...............................................133011

.................6190Total subsidy budget authority ..................................................133999Direct loan subsidy outlays:

146851Section 502 Single-Family Housing ...........................................13400112108Section 515 Multi-Family Housing .............................................134004193Section 504 Housing Repair ......................................................134007886Section 514 Farm Labor Housing ...............................................134011

14..................................Multi-Family Housing Revitalization Seconds ............................1340173..................................Multi-Family Housing Revitalization Zero ..................................134020


.................23–76Section 502 Single-Family Housing ...........................................135001

.................–161Section 515 Multi-Family Housing .............................................135004

.................33Section 504 Housing Repair ......................................................135007

.................–1–1Section 514 Farm Labor Housing ...............................................135011

.................11Section 524 Site Development ...................................................135012

.................11Single-Family Housing Credit Sales ..........................................135014


Guaranteed loan levels supportable by subsidy budget authority:5039188Guaranteed 538 Multi-Family Housing ......................................215003

18,89517,27319,269Guaranteed 502 Single Family Housing .....................................215011


–4.79–3.62–3.53Guaranteed 538 Multi-Family Housing ......................................232003-.71-.71-.76Guaranteed 502 Single Family Housing .....................................232011

-.72-.72-.79Weighted average subsidy rate ..................................................232999Guaranteed loan subsidy budget authority:

–2–1–7Guaranteed 538 Multi-Family Housing ......................................233003–134–123–146Guaranteed 502 Single Family Housing .....................................233011

–136–124–153Total subsidy budget authority ..................................................233999Guaranteed loan subsidy outlays:

–3–3–3Guaranteed 538 Multi-Family Housing ......................................234003–133–133–134Guaranteed 502 Single Family Housing .....................................234011

–136–136–137Total subsidy outlays .................................................................234999Guaranteed loan reestimates:

.................–16.................Guaranteed 502 Single Family Housing, Purchase ....................235001

.................1–7Guaranteed 502, Refinance .......................................................235002

.................–13–15Guaranteed 538 Multi-Family Housing ......................................235003

.................–311–6,487Guaranteed 502 Single Family Housing .....................................235011

.................–339–6,509Total guaranteed loan reestimates ............................................235999


Rural Housing Insurance Fund.—This fund was established in 1965(Public Law 89–117) pursuant to section 517 of title V of the Housing Actof 1949, as amended. Loan programs are limited to rural areas that includetowns, villages, and other places which are not part of an urban area. Theseareas have a population not in excess of 2,500 inhabitants, or in excess of2,500, but not in excess of 10,000 if rural in character, or a population inexcess of 10,000 but not more than 20,000. Areas are within a standardmetropolitan statistical area and have a serious lack of mortgage credit forlow- and moderate-income borrowers.

For 2019, the Section 502 single family housing guarantees are requestedat a $24 billion loan level. The subsidy rate for 2019 continues to be negat-ive with the combination annual and up-front fee structure.

The Budget requests a loan level of $10 million for credit sales of acquiredproperty for single family housing loans. No funding is requested for Sec-tion 502 single family housing direct loans, Section 515 multi-familyhousing direct loans, Section 504 very low-income housing repair loans,Section 524 site development loans, Section 523 self-help housing landdevelopment loans, nor credit sales of acquired property for multi-familyhousing.

The 2019 Budget also requests a $250 million loan level for the multi-family housing guaranteed loan program and continues to include appro-


priations language that will allow the program to operate without interestsubsidy and with a fee.

No funding is requested in the 2019 Budget for the farm labor housingloans and grants.

As required by the Federal Credit Reform Act of 1990, this account re-cords, for this program, the subsidy costs associated with the direct loansobligated and loan guarantees committed in 1992 and beyond (includingcredit sales of acquired property), as well as administrative expenses ofthis program. The subsidy amounts are estimated on a present value basis;the administrative expenses are estimated on a cash basis. For administrativecosts, the 2019 Budget requests $244.2 million. No funding is requestedin the 2019 Budget for the multi-family housing revitalization pilot program.Consistent with facilitating funding flexibilities and to be able to modifypost credit reform section 515 multifamily housing loans in the future, allthe balances associated with the multifamily housing demonstration pro-grams in this account will be transferred and merged with the RuralHousing Insurance Fund Program Account.






✦

RURAL HOUSING INSURANCE FUND DIRECT LOAN FINANCING ACCOUNT



Obligations by program activity:114113113Advances on behalf of borrowers ...............................................0005

Credit program obligations:21,1151,091Direct loan obligations ..........................................................0710

715718721Payment of interest to Treasury .............................................0713.................81128Downward reestimates paid to receipt accounts ...................0742.................2018Interest on downward reestimates ........................................0743

7171,9341,958Direct program activities, subtotal ................................................0791

8312,0472,071Total new obligations, unexpired accounts ....................................0900






Borrowing authority, mandatory:.................401,247Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:1,8441,9931,901Collected ...........................................................................1800–4814–4Change in uncollected payments, Federal sources ............1801

–965.................–225Spending authority from offsetting collections applied to

repay debt .....................................................................1825

8312,0071,672Spending auth from offsetting collections, mand (total) .......18508312,0472,919Budget authority (total) .............................................................19008312,0472,919Total budgetary resources available ..............................................1930



466607586Unpaid obligations, brought forward, Oct 1 ..........................30008312,0472,071New obligations, unexpired accounts ....................................3010

–1,190–2,188–1,958Outlays (gross) ......................................................................3020


[012–4269] .......................................................................3031




48–144Change in uncollected pymts, Fed sources, unexpired ..........3070

–51..................................Uncollected pymts from Fed sources transferred from other

accounts ...........................................................................3081




8312,0472,919Budget authority, gross .........................................................4090Financing disbursements:


Offsetting collections (collected) from:–52–207–144Federal sources: payments from program account ............4120–88–88–79Interest on uninvested funds ............................................4122

–1,067–1,059–1,036Non-Federal sources: Repayments of principal .................4123–536–540–560Interest received on loans .................................................4123

–9–9–9Payments on judgments ....................................................4123–45–44–29Proceeds on sale of acquired property ...............................4123–36–35–34Recaptured income ...........................................................4123–11–11–10Fees ..................................................................................4123


48–144Change in uncollected pymts, Fed sources, unexpired .......4140

–965401,022Budget authority, net (mandatory) ............................................4160–65419557Outlays, net (mandatory) ...........................................................4170–965401,022Budget authority, net (total) ..........................................................4180–65419557Outlays, net (total) ........................................................................4190



Position with respect to appropriations act limitation on obligations:21,1151,091Direct loan obligations from current-year authority ...................1111


..................................–11Unobligated direct loan limitation (-) ........................................1142

21,1151,091Total direct loan obligations ..................................................1150

Cumulative balance of direct loans outstanding:17,34317,23417,415Outstanding, start of year .........................................................1210

Disbursements:3591,2321,166Direct loan disbursements ....................................................1231

1..................................Purchase of loans assets from a liquidating account ...........1233Repayments:

–1,067–1,059–1,042Repayments and prepayments ..............................................1251

–62–62–61Proceeds from loan asset sales to the public or

discounted ........................................................................1252

Adjustments:252626Capitalized interest ...............................................................1261–2–2–2Discount on loan asset sales to the public or discounted .......1262

Write-offs for default:–27–26–13Direct loans ...........................................................................1263755.................–255Other adjustments, net (+ or -) .............................................1264


This account reflects the financing for direct rural housing loans for sec-tion the 502 very low- and low-to-moderate-income home ownership loanprogram; section 504 very low-income housing repair loan program; section514 domestic farm labor housing loan program; section 515 rural rentalhousing loan program; sections 523 self-help housing loans, and 524 sitedevelopment loans; and single family and multi-family housing credit salesof acquired property. Beginning in FY2019 the financing for the Multifam-ily Housing Preservation demonstration loan programs (zero percent, soft-seconds, bullet loans and 515 loan modifications) will be reflected in thisaccount as well.




1,1321,052Fund balances with Treasury .....................................................1101Investments in US securities:


17,23417,415Direct loans receivable, gross ....................................................1401



RURAL HOUSING INSURANCE FUND DIRECT LOAN FINANCING ACCOUNT—Continued

Balance Sheet—Continued


8265Interest receivable .....................................................................14026258Foreclosed property ....................................................................1404

–1,770–1,905Allowance for subsidy cost (-) ....................................................1405



Federal liabilities:16,72216,583Debt ...........................................................................................2103

105151Other ..........................................................................................21051719Non-Federal liabilities: Accounts payable ......................................2201



✦

RURAL HOUSING INSURANCE FUND GUARANTEED LOAN FINANCING ACCOUNT



Obligations by program activity:998Interest assistance paid to lenders ...........................................0003

Credit program obligations:673636730Default claim payments on principal ....................................0711343434Payment of interest to Treasury .............................................0713

136125154Negative subsidy obligations ................................................0740.................3676,379Downward reestimates paid to receipt accounts ...................0742.................23539Interest on downward reestimates ........................................0743

8431,1857,836Direct program activities, subtotal ................................................0791

8521,1947,844Total new obligations, unexpired accounts ....................................0900


.................1,4906,929Unobligated balance brought forward, Oct 1 .........................1000


.................–1,490–1Unobligated balances applied to repay debt .........................1023

..................................6,930Unobligated balance (total) ......................................................1050Financing authority:

Borrowing authority, mandatory:.................3561,388Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:8618381,016Collected ...........................................................................1800

–9..................................Spending authority from offsetting collections applied to

repay debt .....................................................................1825

8528381,016Spending auth from offsetting collections, mand (total) .......18508521,1942,404Budget authority (total) .............................................................19008521,1949,334Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................1,490Unexpired unobligated balance, end of year ..........................1941


23238Unpaid obligations, brought forward, Oct 1 ..........................30008521,1947,844New obligations, unexpired accounts ....................................3010

–852–1,194–7,827Outlays (gross) ......................................................................3020..................................–2Recoveries of prior year unpaid obligations, unexpired .........3040




8521,1942,404Budget authority, gross .........................................................4090Financing disbursements:

8521,1947,827Outlays, gross (total) .............................................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:.................–50–408Federal sources .................................................................4120

–223–149–50Interest on uninvested funds ............................................4122–636–637–555Non-Federal sources: guarantee fees ................................4123

–1–1–1Repayments of Principal ...................................................4123

–1–1–1Interest Received on Loans ...............................................4123..................................–1Offsetts-Non-Federal sources ...........................................4123

–861–838–1,016Offsets against gross budget authority and outlays (total) ....4130

–93561,388Budget authority, net (mandatory) ............................................4160–93566,811Outlays, net (mandatory) ...........................................................4170–93561,388Budget authority, net (total) ..........................................................4180–93566,811Outlays, net (total) ........................................................................4190




18,94517,31224,230Guaranteed loan commitments from current-year authority .......2111..................................–4,773Uncommitted loan guarantee limitation ....................................2142



–12,182–11,509–13,890Repayments and prepayments ..................................................2251Adjustments:

–673–636–730Terminations for default that result in claim payments ........2263..................................–176Other adjustments, net .........................................................2264


Memorandum:


year .......................................................................................2299


in loans receivable:1007351Outstanding, start of year .....................................................2310312921Disbursements for guaranteed loan claims ...........................2331–1–1–1Repayments of loans receivable ............................................2351–1–1.................Write-offs of loans receivable ................................................2361

..................................2Other adjustments, net .........................................................2364


This account finances the guaranteed section 502 low-to-moderate-incomehome ownership loan program as well as the re-financings of those loansand the section 538 guaranteed multi-family housing loan program. Theguaranteed programs enable the Rural Housing Service to utilize privatesector resources for the making and servicing of loans while the Agencyprovides a financial guarantee to encourage private sector activity.





179476Receivables, net ....................................................................1106Net value of assets related to post–1991 acquired defaulted

guaranteed loans receivable:7351Defaulted guaranteed loans receivable, gross ...........................150112Interest receivable .....................................................................1502

–36–17Allowance for subsidy cost (-) ....................................................1505...........................–1Currently not collectible (-) ........................................................1505


1599


Federal liabilities:1,4002Debt ...........................................................................................2103

......................................................Resources payable to Treasury ...................................................21042156,261Other ..........................................................................................21051151,174Non-Federal liabilities: Liabilities for loan guarantees ..................2204



✦


RURAL HOUSING INSURANCE FUND LIQUIDATING ACCOUNT



Obligations by program activity:262729Other costs incident to loans .....................................................0107


















232317Outlays from new mandatory authority .............................410076.................Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:..................................–27Federal sources .................................................................4120






Cumulative balance of direct loans outstanding:6,2996,6426,993Outstanding, start of year .........................................................1210–280–284–282Repayments: Repayments and prepayments .............................1251

Write-offs for default:..................................–23Direct loans ...........................................................................1263

–54–59–46Other adjustments, net (+ or -) .............................................1264





..................................–1Repayments and prepayments ..................................................2251


Memorandum:


year .......................................................................................2299




6,6426,993Direct loans, gross .........................................................................1601697825Interest receivable .........................................................................1602


6,7287,091Direct loans and interest receivable, net ...................................16041214Foreclosed property ........................................................................1606

6,7407,105Value of assets related to direct loans .......................................169933Other Federal assets: Other assets ................................................1901


6,8317,283Federal liabilities: Resources payable to Treasury ..........................2104Non-Federal liabilities:

7...........................Accounts payable .......................................................................220149–2Other ..........................................................................................2207



✦

RURAL BUSINESS-COOPERATIVE SERVICEFederal Funds

ENERGY ASSISTANCE PAYMENTS



Obligations by program activity:111214Bioenergy Program for Advanced Biofuels Payments .................0010

.................5.................Repowering Assistance Payments .............................................0011





Appropriations, mandatory:.................1515Appropriations transferred from other acct [012–4336] ....1221




.................1414Budget authority (total) .............................................................1900112828Total budgetary resources available ..............................................1930



5.................3Unpaid obligations, brought forward, Oct 1 ..........................3000111714New obligations, unexpired accounts ....................................3010



5.................3Obligated balance, start of year ............................................310015.................Obligated balance, end of year ..............................................3200



.................75Outlays from new mandatory authority .............................41001559Outlays from mandatory balances ....................................4101



The purpose of the Bioenergy Program for Advanced Biofuels is toprovide payments to eligible agricultural producers to support and ensure

129DEPARTMENT OF AGRICULTURERural Business-Cooperative Service

Federal Funds

ENERGY ASSISTANCE PAYMENTS—Continued

an expanding production of advanced biofuels. This program is authorizedpursuant to section 9005 of the Farm Security and Rural Investment Actof 2002, as amended by the Agricultural Act of 2014.

The account also includes funding for Repowering Assistance payments.The purpose of this program is to encourage biorefineries to replace fossilfuel used to produce heat or power to operate the biorefineries. This programwas authorized pursuant to section 9004 of the Farm Security and RuralInvestment Act of 2002, as amended by the Agricultural Act of 2014.

The 2019 Budget does not include funding for these programs.✦

RURAL COOPERATIVE DEVELOPMENT GRANTS




Obligations by program activity:.................99Rural Cooperative Development Grants .....................................0001.................294Value Added Agricultural Producer Grants (discretionary) .........0011.................33Appropriate Technology Transfer for Rural Areas .......................0012.................82Value Addeded Agricultural Product Marketing (mandatory) ......0013






Appropriations, discretionary:.................2627Appropriation ....................................................................1100.................2627Budget authority (total) .............................................................1900












Outlays, gross:101816Outlays from mandatory balances ....................................4101


Grants for rural cooperative development were authorized under section310B(e) of the Consolidated Farm and Rural Development Act by PublicLaw 104–127, April 4, 1996. These grants are made available to nonprofitcorporations and institutions of higher education to fund the establishmentand operation of centers for rural cooperative development. The AppropriateTechnology Transfer to Rural Areas (ATTRA) program was first authorizedby the Food Security Act of 1985. The program provides information andtechnical assistance to agricultural producers to adopt sustainable agricul-

tural practices that are environmentally friendly and lower production costs.These grants provide assistance to small minority producers through co-operatives and associations of cooperatives.

Additionally, USDA provides Value-Added Marketing Grants for produ-cers of agricultural commodities. These grants can be used for planningactivities and for working capital for marketing value-added agriculturalproducts. The 2019 Budget eliminates these programs because they havenot been able to show evidence of improved outcomes; such as economicgrowth and decreasing out-migration.

✦

HEALTHY FOODS FINANCING INITIATIVE



Obligations by program activity:.................2.................Direct program activity ..............................................................0011

.................2.................Total new obligations, unexpired accounts (object class 41.0) .......0900


.................1.................Unobligated balance brought forward, Oct 1 .........................1000

.................1.................Discretionary unobligated balance brought fwd, Oct 1 ......1001Budget authority:




2..................................Unpaid obligations, brought forward, Oct 1 ..........................3000.................2.................New obligations, unexpired accounts ....................................3010

–1..................................Outlays (gross) ......................................................................3020





1..................................Outlays from discretionary balances .................................4011.................11Budget authority, net (total) ..........................................................4180

1..................................Outlays, net (total) ........................................................................4190

✦

RURAL ECONOMIC DEVELOPMENT GRANTS



Obligations by program activity:.................99Rural economic development grants .........................................0001.................56Subsidy .....................................................................................0002





Appropriations, discretionary:

–225–132.................Unobligated balance of appropriations permanently

reduced .........................................................................1131

Appropriations, mandatory:





THE BUDGET FOR FISCAL YEAR 2019130 Rural Business-Cooperative Service—ContinuedFederal Funds—Continued

111Offsetting collections (previously unavailable) .................1802

.................–1–1New and/or unobligated balance of spending authority from


185190202Spending auth from offsetting collections, mand (total) .......1850–405870Budget authority (total) .............................................................1900245299256Total budgetary resources available ..............................................1930










–225–132.................Budget authority, gross .........................................................4000Mandatory:




Offsetting collections (collected) from:–168–174–184Cushion of Credit Payments ..............................................4120–16–16–16Guaranteed Underwiter Fees .............................................4123



1.................–132Budget authority, net (mandatory) ............................................4160–177–176–184Outlays, net (mandatory) ...........................................................4170–224–132–132Budget authority, net (total) ..........................................................4180–177–176–184Outlays, net (total) ........................................................................4190

Memorandum (non-add) entries:111Unexpired unavailable balance, SOY: Offsetting collections .......5090

.................11Unexpired unavailable balance, EOY: Offsetting collections .......5092

This grant program is authorized under section 313 of the Rural Electri-fication Act, as amended, and provides funds for the purpose of promotingrural economic development and job creation projects, including fundingfor project feasibility studies, start-up costs, incubator projects and otherexpenses for the purpose of fostering rural development.

Funding for this program is provided from the interest differential onRural Utilities Service borrowers' "cushion of credit" accounts. The 2019Budget eliminates this program because it has not been able to show evid-ence of improved outcomes; such as economic growth and decreasing out-migration, and includes language to permanently cancel $225 million inunobligated balances from this account.

✦

RURAL MICROENTERPRISE INVESTMENT PROGRAM ACCOUNT



Obligations by program activity:.................23Grants .......................................................................................0011

Credit program obligations:.................11Direct loan subsidy ................................................................0701



..................................1Unobligated balance brought forward, Oct 1 .........................1000Budget authority:

Appropriations, mandatory:.................33Appropriations transferred from other acct [012–4336] ....1221.................33Budget authority (total) .............................................................1900.................34Total budgetary resources available ..............................................1930



–2–5–4Outlays (gross) ......................................................................3020





254Outlays from mandatory balances ....................................4101.................33Budget authority, net (total) ..........................................................4180




Direct loan levels supportable by subsidy budget authority:188Rural Microenterprise Direct Loans ...........................................115001

Direct loan subsidy (in percent):0.009.9812.40Rural Microenterprise Direct Loans ...........................................132001


.................11Rural Microenterprise Direct Loans ...........................................133001Direct loan subsidy outlays:

111Rural Microenterprise Direct Loans ...........................................134001Direct loan reestimates:

..................................–1Rural Microenterprise Direct Loans ...........................................135001

This program provides microentrepreneurs with the skills necessary toestablish new rural microenterprises, as well as support these types ofbusinesses with technical and financial assistance. The program providesloans and grants to intermediaries that assist microentrepreneurs. The pro-gram is authorized pursuant to section 379E(d) of the Consolidated Farmand Rural Development Act, as amended by the Agricultural Act of 2014.The 2019 Budget includes no funding for this program.

✦

RURAL MICROENTERPRISE INVESTMENT DIRECT LOAN FINANCING ACCOUNT




188Direct loan obligations ..........................................................0710111Payment of interest to Treasury .............................................0713

..................................1Downward reestimates paid to receipt accounts ...................0742









–1..................................Change in uncollected payments, Federal sources ............1801


repay debt .....................................................................1825

131DEPARTMENT OF AGRICULTURERural Business-Cooperative Service—Continued


RURAL MICROENTERPRISE INVESTMENT DIRECT LOAN FINANCING ACCOUNT—Continued









–2–2–2Uncollected pymts, Fed sources, brought forward, Oct 1 ........30601..................................Change in uncollected pymts, Fed sources, unexpired ..........3070






Offsetting collections (collected) from:–1–1–1Federal sources .................................................................4120–1–1–1Interest on uninvested funds ............................................4122–2–2–2Repayments of Loan Principal ...........................................4123


1..................................Change in uncollected pymts, Fed sources, unexpired .......4140

–157Budget authority, net (mandatory) ............................................4160654Outlays, net (mandatory) ...........................................................4170

–157Budget authority, net (total) ..........................................................4180654Outlays, net (total) ........................................................................4190






–2–2–2Repayments: Repayments and prepayments .............................1251


This account finances direct loan commitments for micro-business devel-opment in rural areas. The subsidy cost of this program is funded thoughthe Rural Microenterprise Investment Program Account.




Net value of assets related to post–1991 direct loans receivable:3532Direct loans receivable, gross ....................................................1401–2–4Allowance for subsidy cost (-) ....................................................1405



3631Federal liabilities: Debt ..................................................................2103


✦

RURAL BUSINESS PROGRAM ACCOUNT




Obligations by program activity:.................2830Rural Business Development Grants .........................................0013

.................72Delta Regional Authority and Appalchian Regional Commission

Grants ...................................................................................0015



..................................3Reestimates of direct loan subsidy .......................................0705

..................................4Interest on reestimates of direct loan subsidy .......................0706


.................37Interest on reestimates of loan guarantee subsidy ................0708









reduced .........................................................................1131

.................6564Appropriation, discretionary (total) .......................................1160Appropriations, mandatory:

.................649Appropriation ....................................................................1200

.................71113Budget authority (total) .............................................................190021101154Total budgetary resources available ..............................................1930
















Direct loan reestimates:..................................7Business and Industry Loans ....................................................135004


Guaranteed loan levels supportable by subsidy budget authority:.................1,1721,416Business and Industry Loan Guarantees ...................................215007

..................................1Business and Industry Emergency Supplemental Loan

Guarantees ............................................................................215008

.................1,1721,417Total loan guarantee levels .......................................................215999Guaranteed loan subsidy (in percent):

.................4.063.83Business and Industry Loan Guarantees ...................................232007

..................................0.00Business and Industry Emergency Supplemental Loan

Guarantees ............................................................................232008

.................4.063.83Weighted average subsidy rate ..................................................232999Guaranteed loan subsidy budget authority:

.................4854Business and Industry Loan Guarantees ...................................233007

.................4854Total subsidy budget authority ..................................................233999Guaranteed loan subsidy outlays:

265042Business and Industry Loan Guarantees ...................................234007


.................–5–22Guaranteed Business and Industry Loans - ARRA .....................235006

.................–1227Business and Industry Loan Guarantees ...................................235007

.................–127–15Total guaranteed loan reestimates ............................................235999

This account funds direct and guaranteed business and industry loans,and rural business development grants. Business and industry guaranteedloans are authorized under section 310B(a)(1) of the Consolidated Farmand Rural Development, as amended. These loans are made to public,private or cooperative organizations, Indian tribes or tribal groups, corporateentities, or individuals for the purpose of improving the economic climatein rural areas. The 2019 Budget eliminates these programs because theyhave not been able to show evidence of improved outcomes; such as eco-nomic growth and decreasing out-migration.

✦

RURAL BUSINESS AND INDUSTRY DIRECT LOANS FINANCING ACCOUNT




111Payment of interest to Treasury .............................................0713.................1.................Interest on downward reestimates ........................................0743




.................–8–9Unobligated balances applied to repay debt .........................1023Financing authority:


–1–1.................Spending authority from offsetting collections applied to

repay debt .....................................................................1825








Offsetting collections (collected) from:..................................–7Federal sources .................................................................4120.................–1–1Interest on uninvested funds ............................................4122

–2–2–1Repayments of principal ...................................................4123


–1–1.................Budget authority, net (mandatory) ............................................4160–1–1–8Outlays, net (mandatory) ...........................................................4170

–1–1.................Budget authority, net (total) ..........................................................4180–1–1–8Outlays, net (total) ........................................................................4190




–1–1–1Repayments: Repayments and prepayments .............................1251..................................–2Write-offs for default: Direct loans ............................................1263


The account finances direct loans for business development in rural areas.The subsidy cost of this program is funded through the Rural BusinessProgram Account. Loans made prior to 1992 are recorded in the RuralDevelopment Insurance Fund Liquidating Account.




Net value of assets related to post–1991 direct loans receivable:710Direct loans receivable, gross ....................................................1401

...........................4Allowance for subsidy cost (-) ....................................................1405


...........................1Net value of assets related to post–1991 acquired defaultedguaranteed loans receivable: Interest receivable .......................

1502




✦

RURAL BUSINESS AND INDUSTRY GUARANTEED LOANS FINANCING ACCOUNT




15014159Default claim payments on principal ....................................0711111Payment of interest to Treasury .............................................0713














Uncollected payments:–84–43–40Uncollected pymts, Fed sources, brought forward, Oct 1 ........306027–41–3Change in uncollected pymts, Fed sources, unexpired ..........3070


–84–43–40Obligated balance, start of year ............................................3100



RURAL BUSINESS AND INDUSTRY GUARANTEED LOANS FINANCING

ACCOUNT—Continued



–57–84–43Obligated balance, end of year ..............................................3200




Offsetting collections (collected) from:–27–57–84Federal sources .................................................................4120–8–8–7Interest on uninvested funds ............................................4122

–51–47–44Repayments of principal ...................................................4123–35–39.................Guarantee Fees .................................................................4123

..................................–36Other collections ...............................................................4123

..................................–2Other collections ...............................................................4123


27–41–3Change in uncollected pymts, Fed sources, unexpired .......4140

..................................9Budget authority, net (mandatory) ............................................416030124–56Outlays, net (mandatory) ...........................................................4170

..................................9Budget authority, net (total) ..........................................................418030124–56Outlays, net (total) ........................................................................4190




.................864917Guaranteed loan commitments from current-year authority .......2111

.................308500Limitation available from carry-forward ....................................2121

...................................................Uncommitted limitation carried forward ...................................2143

.................1,1721,417Total guaranteed loan commitments .....................................2150

Cumulative balance of guaranteed loans outstanding:6,2855,9095,760Outstanding, start of year .........................................................22106741,2831,075Disbursements of new guaranteed loans ..................................2231

–815–766–796Repayments and prepayments ..................................................2251Adjustments:

–87–82–38Terminations for default that result in loans receivable ........2261–63–59–21Terminations for default that result in claim payments ........2263



Memorandum:


year .......................................................................................2299


in loans receivable:259193247Outstanding, start of year .....................................................231012611882Disbursements for guaranteed loan claims ...........................2331–26–19–42Repayments of loans receivable ............................................2351–44–33–59Write-offs of loans receivable ................................................2361



The account finances loan guarantee commitments for business develop-ment in rural areas. The subsidy cost of this program is funded through theRural Business Program Account. Loans made prior to 1992 are recordedin the Rural Development Insurance Fund Liquidating Account.





643Receivables, net ....................................................................1106Net value of assets related to post–1991 acquired defaulted

guaranteed loans receivable:193247Defaulted guaranteed loans receivable, gross ...........................1501

44Interest receivable .....................................................................1502–37–52Allowance for subsidy cost (-) ....................................................1505


1599


Federal liabilities:2448Resources payable to Treasury ...................................................2104

12332Other ..........................................................................................2105377488Non-Federal liabilities: Liabilities for loan guarantees ..................2204



✦

INTERMEDIARY RELENDING PROGRAM FUND ACCOUNT






.................1.................Reestimates of direct loan subsidy .......................................0705

.................1.................Interest on reestimates of direct loan subsidy .......................0706

.................44Administrative expenses .......................................................0709




Appropriations, mandatory:.................2.................Appropriation ....................................................................1200.................1210Budget authority (total) .............................................................1900.................1210Total budgetary resources available ..............................................1930










.................2.................Budget authority, gross .........................................................4090Outlays, gross:

.................2.................Outlays from new mandatory authority .............................4100




Direct loan levels supportable by subsidy budget authority:.................2419Intermediary Relending Program ...............................................115001

Direct loan subsidy (in percent):.................23.0928.99Intermediary Relending Program ...............................................132001


.................66Intermediary Relending Program ...............................................133001


Direct loan subsidy outlays:654Intermediary Relending Program ...............................................134001

Direct loan reestimates:.................–1–10Intermediary Relending Program ...............................................135001

Administrative expense data:.................44Budget authority .......................................................................3510.................44Outlays from new authority .......................................................3590

This account finances loans to intermediary borrowers, who, in turn, re-lend the funds to small rural businesses, community development corpora-tions, and other organizations for the purpose of improving economic op-portunities in rural areas. Through the use of local intermediaries, thisprogram serves small-scale enterprises and gives preference to thosecommunities with the greatest need. The 2019 Budget eliminates this pro-gram because it has not been able to show evidence of improved outcomes;such as economic growth and decreasing out-migration.

As required by the Federal Credit Reform Act of 1990, this account re-cords, for this program, the subsidy costs associated with the direct loansobligated in 1992 and beyond, as well as administrative expenses of thisprogram. The subsidy amounts are estimated on a present value basis; theadministrative expenses are estimated on a cash basis.



Direct obligations:.................44Other goods and services from Federal sources ........................25.3.................86Grants, subsidies, and contributions ........................................41.0


✦

RURAL DEVELOPMENT LOAN FUND DIRECT LOAN FINANCING ACCOUNT




.................2419Direct loan obligations ..........................................................0710181615Payment of interest to Treasury .............................................0713


..................................4Interest on downward reestimates ........................................0743











repay debt .....................................................................1825








..................................2Change in uncollected pymts, Fed sources, unexpired ..........3070






Offsetting collections (collected) from:–6–5–5Payments from program account ......................................4120–1–1–2Interest on uninvested funds ............................................4122

–26–27–28Non-Federal sources - repayment of principal ..................4123–4–4–4Non-Federal sources - repayments of interest ...................4123



–19517Budget authority, net (mandatory) ............................................4160.................13Outlays, net (mandatory) ...........................................................4170

–19517Budget authority, net (total) ..........................................................4180.................13Outlays, net (total) ........................................................................4190



Position with respect to appropriations act limitation on obligations:.................2419Direct loan obligations from current-year authority ...................1111














✦

RURAL DEVELOPMENT LOAN FUND LIQUIDATING ACCOUNT









–2–2–3Non-Federal sources .........................................................4123–2–2–3Budget authority, net (total) ..........................................................4180–2–2–3Outlays, net (total) ........................................................................4190



RURAL DEVELOPMENT LOAN FUND LIQUIDATING ACCOUNT—Continued








ASSETS:912Direct loans, gross .........................................................................1601




✦

RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT






..................................1Reestimates of direct loan subsidy .......................................0705



12.................Unobligated balance brought forward, Oct 1 .........................1000111Recoveries of prior year unpaid obligations ...........................1021


Appropriations, mandatory:..................................1Appropriation ....................................................................1200

Spending authority from offsetting collections, mandatory:.................56Collected ...........................................................................1800.................57Budget authority (total) .............................................................1900












Offsetting collections (collected) from:.................–5–6Federal sources .................................................................4120..................................1Budget authority, net (total) ..........................................................4180

5.................–1Outlays, net (total) ........................................................................4190



Direct loan levels supportable by subsidy budget authority:.................5639Rural Economic Development Loans ..........................................115001

Direct loan subsidy (in percent):.................12.9214.23Rural Economic Development Loans ..........................................132001


.................76Rural Economic Development Loans ..........................................133001Direct loan subsidy outlays:

554Rural Economic Development Loans ..........................................134001Direct loan reestimates:

.................–2.................Rural Economic Development Loans ..........................................135001

Rural economic development loans are made for the purpose of promotingrural economic development and job creation projects. Loans are made toelectric and telecommunication borrowers, who, in turn, finance rural de-velopment projects in their service areas. Program costs are derived frominterest earnings on borrowers' "cushion of credit'' loan prepayments. The2019 Budget eliminates this program because it has not been able to showevidence of improved outcomes; such as economic growth and decreasingout-migration.

As required by the Federal Credit Reform Act of 1990, this account re-cords, for this program, the subsidy costs associated with the direct loansobligated in 1992 and beyond. The subsidy amounts are estimated on apresent value basis.

✦

RURAL ECONOMIC DEVELOPMENT DIRECT LOAN FINANCING ACCOUNT




.................5638Direct loan obligations ..........................................................0710655Payment of interest to Treasury .............................................0713












repay debt .....................................................................1825














Offsetting collections (collected) from:–5–5–5Federal Funds: Program Account .......................................4120–2–2–2Interest on uninvested funds ............................................4122

–36–34–33Non-Federal sources: Repayment of Principal ...................4123



–372213Budget authority, net (mandatory) ............................................4160212–5Outlays, net (mandatory) ...........................................................4170

–372213Budget authority, net (total) ..........................................................4180212–5Outlays, net (total) ........................................................................4190



Position with respect to appropriations act limitation on obligations:.................4241Direct loan obligations from current-year authority ...................1111.................149Limitation available from carry-forward ....................................1121..................................–12Unobligated limitation carried forward .....................................1143








Net value of assets related to post–1991 direct loans receivable:186186Direct loans receivable, gross ....................................................1401–14–10Allowance for subsidy cost (-) ....................................................1405




202247Total upward reestimate subsidy BA [12–3108] ............................4999

✦

RURAL BUSINESS INVESTMENT PROGRAM ACCOUNT








The Rural Business Investment Program was authorized by section 6029of the Farm Security and Rural Investment Act of 2002, Public Law107–171. As required by the Federal Credit Reform Act of 1990, this ac-count records, for this program, the subsidy costs associated with the loanguarantees committed in 1992 and beyond. The subsidy amounts are estim-ated on a present value basis. The 2019 Budget eliminates this programbecause it has not been able to show evidence of improved outcomes; suchas economic growth and decreasing out-migration.

✦

RURAL BUSINESS INVESTMENT PROGRAM GUARANTEE FINANCING ACCOUNT











...................................................Guaranteed loan commitments from current-year authority .......2111

...................................................Total guaranteed loan commitments .....................................2150


...................................................Disbursements of new guaranteed loans ..................................2231–1–1–1Repayments and prepayments ..................................................2251


Memorandum:


year .......................................................................................2299





44Non-Federal liabilities: Liabilities for loan guarantees ..................2204


✦

RURAL ENERGY FOR AMERICA PROGRAM




Obligations by program activity:343638Grants .......................................................................................0011

Credit program obligations:232317Loan guarantee subsidy ........................................................0702





7129Unobligated balance brought forward, Oct 1 .........................10006711Recoveries of prior year unpaid obligations ...........................1021


Appropriations, mandatory:.................12Appropriation ....................................................................1200

505050Appropriations transferred from other acct [012–4336] ....1221



504849Appropriations, mandatory (total) .........................................1260504849Budget authority (total) .............................................................1900



RURAL ENERGY FOR AMERICA PROGRAM—Continued
















Enacted/requested:504849Budget Authority .......................................................................545564Outlays ......................................................................................

Legislative proposal, subject to PAYGO:–50..................................Budget Authority .......................................................................–4..................................Outlays ......................................................................................

Total:.................4849Budget Authority .......................................................................

505564Outlays ......................................................................................



Guaranteed loan levels supportable by subsidy budget authority:508601372Renewable Energy Loan Guarantees ..........................................215001

Guaranteed loan subsidy (in percent):4.463.874.64Renewable Energy Loan Guarantees ..........................................232001


232317Renewable Energy Loan Guarantees ..........................................233001Guaranteed loan subsidy outlays:

16920Renewable Energy Loan Guarantees ..........................................234001Guaranteed loan reestimates:

.................–7–24Renewable Energy Loan Guarantees ..........................................235001

The Rural Energy for America Program was formerly the RenewableEnergy Systems and Energy Efficiency Improvements, and is authorizedunder 7 U.S.C. 8107. This program provides loan guarantees and grantsto farmers, ranchers, and small rural businesses to purchase renewable en-ergy systems and make energy efficiency improvements. This program isauthorized pursuant to Section 9007 of the Farm Security and Rural Invest-ment Act of 2002, as amended by the Food, Conservation and Energy Actof 2008, as amended by the American Taxpayer Relief Act of 2012; andas amended by the Agricultural Act of 2014.

RURAL ENERGY FOR AMERICA PROGRAM




Obligations by program activity:–34..................................Grants .......................................................................................0011

Credit program obligations:–23..................................Loan guarantee subsidy ........................................................0702

–23..................................Direct program activities, subtotal ................................................0791

–57..................................Total new obligations (object class 41.0) ......................................0900


–6..................................Recoveries of prior year unpaid obligations ...........................1021Budget authority:

Appropriations, mandatory:–50..................................Appropriation ....................................................................1200–56..................................Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:1..................................Unexpired unobligated balance, end of year ..........................1941


–57..................................New obligations, unexpired accounts ....................................30104..................................Outlays (gross) ......................................................................30206..................................Recoveries of prior year unpaid obligations, unexpired .........3040

–47..................................Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

–47..................................Obligated balance, end of year ..............................................3200






Guaranteed loan levels supportable by subsidy budget authority:–508..................................Renewable Energy Loan Guarantees ..........................................215001

Guaranteed loan subsidy (in percent):4.46..................................Renewable Energy Loan Guarantees ..........................................232001


–23..................................Renewable Energy Loan Guarantees ..........................................233001Guaranteed loan subsidy outlays:

–2..................................Renewable Energy Loan Guarantees ..........................................234001

✦

RURAL ENERGY FOR AMERICA GUARANTEED LOAN FINANCING ACCOUNT




211Default claim payments on principal ....................................0711.................825Downward reestimates paid to receipt accounts ...................0742..................................1Interest on downward reestimates ........................................0743











Uncollected payments:–31–17–21Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060–6–144Change in uncollected pymts, Fed sources, unexpired ..........3070






Offsetting collections (collected) from:–16–10–23Federal sources .................................................................4120–3–2.................Interest on uninvested funds ............................................4122–4–3–3Guarantee fees ..................................................................4123


–6–144Change in uncollected pymts, Fed sources, unexpired .......4140–21–61Outlays, net (mandatory) ...........................................................4170

...................................................Budget authority, net (total) ..........................................................4180–21–61Outlays, net (total) ........................................................................4190




487533331Guaranteed loan commitments from current-year authority .......2111216897Limitation available from carry-forward ....................................2121

..................................–56Uncommitted limitation carried forward ...................................2143

508601372Total guaranteed loan commitments .....................................2150410485301Guaranteed amount of guaranteed loan commitments .................2199

Cumulative balance of guaranteed loans outstanding:639549237Outstanding, start of year .........................................................2210378170328Disbursements of new guaranteed loans ..................................2231

–112–79–15Repayments and prepayments ..................................................2251

–2–1–1Adjustments: Terminations for default that result in loans

receivable ..............................................................................2261


Memorandum:


year .......................................................................................2299


in loans receivable:322Outstanding, start of year .....................................................231021.................Disbursements for guaranteed loan claims ...........................2331


This account finances loan guarantee commitments to farmers, ranchers,and small businesses to purchase renewable energy systems and make en-ergy efficiency improvements in rural areas. The subsidy cost of this pro-gram is funded through the Rural Energy for American Program Account.




22

Net value of assets related to post–1991 acquired defaultedguaranteed loans receivable: Defaulted guaranteed loansreceivable, gross ........................................................................

1501


34Federal liabilities: Debt ..................................................................21033334Non-Federal liabilities: Liability for loan guarnatees .....................2204



RURAL ENERGY FOR AMERICA GUARANTEED LOAN FINANCING ACCOUNT




Budgetary resources:Financing authority:

Spending authority from offsetting collections, mandatory:–1..................................Collected ...........................................................................1800

–22..................................Change in uncollected payments, Federal sources ............1801

–23..................................Spending auth from offsetting collections, mand (total) .......1850–23..................................Total budgetary resources available ..............................................1930


Change in obligated balance:Uncollected payments:

22..................................Change in uncollected pymts, Fed sources, unexpired ..........3070

22..................................Uncollected pymts, Fed sources, end of year .............................3090Memorandum (non-add) entries:



–23..................................Budget authority, gross .........................................................4090Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:1..................................Federal sources .................................................................4120

Additional offsets against financing authority only (total):22..................................Change in uncollected pymts, Fed sources, unexpired .......41401..................................Outlays, net (mandatory) ...........................................................4170

...................................................Budget authority, net (total) ..........................................................41801..................................Outlays, net (total) ........................................................................4190




–487..................................Guaranteed loan commitments from current-year authority .......2111–21..................................Limitation available from carry-forward ....................................2121

...................................................Uncommitted limitation carried forward ...................................2143

–508..................................Total guaranteed loan commitments .....................................2150–508..................................Guaranteed amount of guaranteed loan commitments .................2199

Cumulative balance of guaranteed loans outstanding:...................................................Outstanding, start of year .........................................................2210

–15..................................Disbursements of new guaranteed loans ..................................22312..................................Repayments and prepayments ..................................................2251

...................................................Adjustments: Terminations for default that result in loans

receivable ..............................................................................2261

–13..................................Outstanding, end of year .......................................................2290

Memorandum:

–10..................................Guaranteed amount of guaranteed loans outstanding, end of

year .......................................................................................2299


in loans receivable:...................................................Outstanding, start of year .....................................................2310...................................................Disbursements for guaranteed loan claims ...........................2331

...................................................Outstanding, end of year ...................................................2390

✦

BIOREFINERY ASSISTANCE PROGRAM ACCOUNT







BIOREFINERY ASSISTANCE PROGRAM ACCOUNT—Continued



.................34.................Reestimates of loan guarantee subsidy ................................0707

.................5.................Interest on reestimates of loan guarantee subsidy ................0708

.................10359Total new obligations .....................................................................0900


7192174Unobligated balance brought forward, Oct 1 .........................1000..................................–23Unobligated balance transfer to other accts [012–4336] ......1010


Appropriations, mandatory:.................39.................Appropriation ....................................................................1200.................43.................Appropriations transferred from other acct [012–4336] ....1221

.................82.................Appropriations, mandatory (total) .........................................1260

.................82.................Budget authority (total) .............................................................190071174151Total budgetary resources available ..............................................1930




–107–64.................Outlays (gross) ......................................................................3020




.................82.................Budget authority, gross .........................................................4090Outlays, gross:

.................41.................Outlays from new mandatory authority .............................410010723.................Outlays from mandatory balances ....................................4101

10764.................Outlays, gross (total) .............................................................4110.................82.................Budget authority, net (total) ..........................................................4180

10764.................Outlays, net (total) ........................................................................4190



Guaranteed loan levels supportable by subsidy budget authority:.................300322Section 9003 Loan Guarantees ..................................................215001

Guaranteed loan subsidy (in percent):.................21.2418.46Section 9003 Loan Guarantees ..................................................232001


.................6459Section 9003 Loan Guarantees ..................................................233001Guaranteed loan subsidy outlays:

9722.................Section 9003 Loan Guarantees ..................................................234001Guaranteed loan reestimates:

.................39–4Section 9003 Loan Guarantees ..................................................235001

The Biorefinery Assistance Program provides loan guarantees to fundthe development, construction, and retrofitting of commercial-scale ad-vanced biorefineries. The 2019 Budget does not request discretionaryfunding for this program. The Biorefinery Assistance Program is authorizedunder section 9003 of the Farm Security and Rural Investment Act of 2002;as amended by the Food, Conservation, and Energy Act of 2008, asamended by the American Taxpayers Relief Act of 2012, and as amendedby the Agricultural Act of 2014. Loan assumptions reflect an illustrativeexample for informational purposes only. The assumptions will be determ-ined at the time of execution and will reflect the actual terms and conditionsof the loan guarantee contracts.



Direct obligations:.................39.................Other goods and services from Federal sources ........................25.3.................6459Grants, subsidies, and contributions ........................................41.0


✦

BIOREFINERY ASSISTANCE GUARANTEED LOAN FINANCING ACCOUNT




..................................53Default claim payments on principal ....................................0711

.................11Payment of interest to Treasury .............................................0713

..................................4Downward reestimates paid to receipt accounts ...................0742












.................–1–58Outlays (gross) ......................................................................3020Uncollected payments:

–298–256–197Uncollected pymts, Fed sources, brought forward, Oct 1 ........306097–42–59Change in uncollected pymts, Fed sources, unexpired ..........3070





.................158Outlays, gross (total) .............................................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:–97–61.................Federal sources .................................................................4120–2–1–1Interest on uninvested funds ............................................4122–5–1.................Guaranteed Fees ...............................................................4123



..................................53Budget authority, net (mandatory) ............................................4160–104–6257Outlays, net (mandatory) ...........................................................4170

..................................53Budget authority, net (total) ..........................................................4180–104–6257Outlays, net (total) ........................................................................4190








.................270289Guaranteed amount of guaranteed loan commitments .................2199

Cumulative balance of guaranteed loans outstanding:1726572Outstanding, start of year .........................................................2210378118.................Disbursements of new guaranteed loans ..................................2231–29–11–2Repayments and prepayments ..................................................2251

Adjustments:..................................–53Terminations for default that result in loans receivable ........2261...................................................Terminations for default that result in claim payments ........2263..................................48Other adjustments, net .........................................................2264


Memorandum:


year .......................................................................................2299


in loans receivable:5252.................Outstanding, start of year .....................................................2310

..................................52Disbursements for guaranteed loan claims ...........................2331


The account finances loan guarantee commitments for bioenergy, renew-able chemical, and biobased product manufacturing development. Thesubsidy cost of this program is funded through the Biorefinery AssistanceProgram Account.





52...........................Defaulted guaranteed loans receivable, gross ...........................1501–11...........................Allowance for subsidy cost (-) ....................................................1505

41...........................Net present value of assets related to defaulted guaranteed

loans .................................................................................

1599


Non-Federal liabilities:5317Debt ...........................................................................................2203

......................................................Liabilities for loan guarantees ...................................................2204



✦

ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION CORPORATION

REVOLVING FUND








✦

RURAL UTILITIES SERVICEFederal Funds

HIGH ENERGY COST GRANTS



Obligations by program activity:.................1317High energy cost grants ............................................................0001





.................1010Appropriations transferred from other acct [012–1980] ....1121102330Total budgetary resources available ..............................................1930




–8–22–6Outlays (gross) ......................................................................3020








High energy costs grants can be made to eligible entities or the DenaliCommission to construct, extend, upgrade, and otherwise improve energygeneration, transmission, or distribution facilities serving communities inwhich the average residential expenditure for home energy is at least 275percent of the national average residential expenditure for home energy(as determined by the Energy Information Agency using the most recentdata available). Grants are also available to establish and support a revolvingfund to provide a more cost-effective means of purchasing fuel where thefuel cannot be shipped by means of surface transportation. The Budgetproposes no funding in 2019 for these grants.

✦

RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT

For gross obligations for the principal amount of direct loans as authorized bysection 306 and described in section 381E(d)(2) of the Consolidated Farm andRural Development Act, $1,200,000,000.

In addition, for administrative expenses necessary to carry out the direct loanprogram, $18,149,000 shall be paid to the appropriation for "Rural Development,Salaries and Expenses".




Obligations by program activity:.................498576Water and waste disposal systems grants ................................0010.................1.................Water and waste disposal systems grants supplemental ..........0011.................44Solid waste management grants ...............................................0012

141DEPARTMENT OF AGRICULTURERural Utilities Service

Federal Funds

RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT—Continued



.................14.................Emergency Community Water Assistance Grants ......................0013

.................1110Emergency Community Water Assistance Grants,

appropriated .........................................................................0015




.................1510Interest on reestimates of direct loan subsidy .......................070618..................................Administrative expenses .......................................................0709




1144265Unobligated balance brought forward, Oct 1 .........................1000.................4264Discretionary unobligated balance brought fwd, Oct 1 ......1001.................–1.................Unobligated balance transfer to other accts [012–0405] ......1010.................1.................Unobligated balance transfer from other acct [012–0405] ....1011






reduced .........................................................................1131

–33557561Appropriation, discretionary (total) .......................................1160Appropriations, mandatory:

.................7426Appropriation ....................................................................1200–33631587Budget authority (total) .............................................................1900124718714Total budgetary resources available ..............................................1930



2,0182,0341,985Unpaid obligations, brought forward, Oct 1 ..........................300018604672New obligations, unexpired accounts ....................................3010













Direct loan levels supportable by subsidy budget authority:1,2001,3341,311Water and Waste Disposal Loans ...............................................115001


-.270.174.34Water and Waste Disposal Loans ...............................................132001

-.270.174.34Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

–3257Water and Waste Disposal Loans ...............................................133001

–3257Total subsidy budget authority ..................................................133999Direct loan subsidy outlays:

293327Water and Waste Disposal Loans ...............................................134001


.................44–78Water and Waste Disposal Loans ...............................................135001


Guaranteed loan levels supportable by subsidy budget authority:.................165Water and Waste Disposal Loan Guarantees .............................215001

Guaranteed loan subsidy (in percent):.................0.460.48Water and Waste Disposal Loan Guarantees .............................232001

0.000.460.48Weighted average subsidy rate ..................................................232999

Administrative expense data:16..................................Budget authority .......................................................................351016..................................Outlays from new authority .......................................................3590

This account funds the direct and guaranteed water and waste disposalloans, water and waste disposal grants, emergency community water assist-ance grants, and solid waste management grants.

Water and waste disposal loans are authorized under 7 U.S.C. 1926. Theprogram provides direct loans to municipalities, counties, special purposedistricts, certain Indian Tribes, and non-profit corporations to developwater and waste disposal systems in rural areas and towns with populationsof less than 10,000. The program also guarantees water and waste disposalloans made by banks and other eligible lenders.

Water and waste disposal grants are authorized under Section 306(a)(2)of the Consolidated Farm and Rural Development Act, as amended. Grantsare authorized to be made to associations, including nonprofit corporations,municipalities, counties, public and quasi-public agencies, and certain In-dian tribes. The grants can be used to finance development, storage, treat-ment, purification, or distribution of water or the collection, treatment, ordisposal of waste in rural areas and cities or towns with populations of lessthan 10,000. The amount of any development grant may not exceed 75percent of the eligible development cost of the project.

Emergency community water assistance grants are authorized underSection 306A of the Consolidated Farm and Rural Development Act, asamended. Grants are made to public bodies and nonprofit organizationsfor construction or extension of water lines, repair or maintenance of exist-ing systems, replacement of equipment, and payment of costs to correctemergency situations. These grants are funded on an as needed basis usingflexibility of funds authority.

Solid waste management grants are authorized under Section 310B(b) ofthe Consolidated Farm and Rural Development Act, as amended. Grantsare made to non-profit organizations to provide regional technical assistanceto local and regional governments and related agencies for the purpose ofreducing or eliminating pollution of water resources, and for improvingthe planning and management of solid waste disposal facilities.

The 2019 Budget requests $1.2 billion in direct loans and no funding forguaranteed loans or grants. In addition, the 2019 Budget cancels $51 millionin unobligated balances from this account. The Budget also includes a le-gislative proposal to increase the population limit to 20,000 for both guar-anteed and direct loans. Increasing the population limit will help additionalcommunities to get funding from this program, it will improve customerservice and lower rates for these communities. As required by the FederalCredit Reform Act of 1990, this account records, for this program, thesubsidy costs associated with the direct loans obligated and loan guaranteescommitted in 1992 and beyond (including credit sales of acquired property),as well as administrative expenses of this program. The subsidy amountsare estimated on a present value basis; the administrative expenses are es-timated on a cash basis. For administrative costs, the 2019 Budget requests$18.1 million.

✦

THE BUDGET FOR FISCAL YEAR 2019142 Rural Utilities Service—ContinuedFederal Funds—Continued

RURAL WATER AND WASTE DISPOSAL DIRECT LOANS FINANCING ACCOUNT




1,2001,3341,310Direct loan obligations ..........................................................0710579552525Payment of interest to Treasury .............................................0713

3..................................Negative subsidy obligations ................................................0740.................2996Downward reestimates paid to receipt accounts ...................0742.................28Interest on downward reestimates ........................................0743







Borrowing authority, mandatory:6727821,944Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:1,3821,4161,265Collected ...........................................................................1800–22–3123Change in uncollected payments, Federal sources ............1801


repay debt .....................................................................1825

1,1101,135341Spending auth from offsetting collections, mand (total) .......18501,7821,9172,285Budget authority (total) .............................................................19001,7821,9172,285Total budgetary resources available ..............................................1930






–80–111–88Uncollected pymts, Fed sources, brought forward, Oct 1 ........30602231–23Change in uncollected pymts, Fed sources, unexpired ..........3070







–818–791–739Repayment of principal .....................................................4123–469–454–410Interest Received on Loans ...............................................4123


2231–23Change in uncollected pymts, Fed sources, unexpired .......4140

422532997Budget authority, net (mandatory) ............................................4160464371217Outlays, net (mandatory) ...........................................................4170422532997Budget authority, net (total) ..........................................................4180464371217Outlays, net (total) ........................................................................4190






Cumulative balance of direct loans outstanding:12,68012,26612,154Outstanding, start of year .........................................................12101,2641,205851Disbursements: Direct loan disbursements ...............................1231

–818–791–745Repayments: Repayments and prepayments .............................1251Write-offs for default:

..................................–1Direct loans ...........................................................................1263

..................................7Other adjustments, net (+ or -) .............................................1264


The subsidy cost of these loans is provided through the Rural Water andWaste Disposal Program Account. Loans made prior to 1992 are recordedin the Rural Development Insurance Fund Liquidating Account.




7731,200Fund balances with Treasury .....................................................1101Investments in US securities:



......................................................Foreclosed property ....................................................................1404–228–225Allowance for subsidy cost (-) ....................................................1405



Federal liabilities:12,94313,153Debt ...........................................................................................2103

32103Other ..........................................................................................2105



✦

RURAL WATER AND WASTE WATER DISPOSAL GUARANTEED LOANS FINANCING

ACCOUNT






Change in obligated balance:Uncollected payments:












.................165Guaranteed amount of guaranteed loan commitments .................2199


638Disbursements of new guaranteed loans ..................................2231–9–10–13Repayments and prepayments ..................................................2251


143DEPARTMENT OF AGRICULTURERural Utilities Service—Continued


RURAL WATER AND WASTE WATER DISPOSAL GUARANTEED LOANS FINANCING

ACCOUNT—Continued

Status of Guaranteed Loans—Continued


Memorandum:


year .......................................................................................2299

This account finances loan guarantee commitments for water systemsand waste disposal facilities in rural areas.

Loans made prior to 1992 are recorded in the Rural Development Insur-ance Fund Liquidating Account.





11Federal liabilities: Other .................................................................2105


✦

RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM

ACCOUNT


The principal amount of direct and guaranteed loans as authorized by sections305, 306, and 317 of the Rural Electrification Act of 1936 (7 U.S.C. 935, 936, and940g) shall be made as follows: loans made pursuant to sections 305, 306, and 317,notwithstanding 317(c), of that Act, rural electric, $5,500,000,000; cost of moneyrural telecommunications loans, $172,600,000; and for loans made pursuant tosection 306 of that Act, rural telecommunications loans, $517,400,000.

For the cost of direct loans as authorized by section 305 of the Rural ElectrificationAct of 1936 (7 U.S.C. 935), including the cost of modifying loans, as defined insection 502 of the Congressional Budget Act of 1974, cost of money rural telecom-munications loans, $863,000.

In addition, for administrative expenses necessary to carry out the direct andguaranteed loan programs, $38,027,000, which shall be paid to the appropriationfor "Rural Development, Salaries and Expenses".





1107Direct loan subsidy ................................................................0701.................312537Reestimates of direct loan subsidy .......................................0705.................75395Interest on reestimates of direct loan subsidy .......................0706

383333Administrative expenses .......................................................0709





395858Appropriation ....................................................................1100..................................–1Appropriations transferred to other acct [012–4609] ........1120


.................387933Appropriation ....................................................................120039445990Budget authority (total) .............................................................190080471998Total budgetary resources available ..............................................1930




–44–424–966Outlays (gross) ......................................................................3020





383433Outlays from new discretionary authority ..........................401063.................Outlays from discretionary balances .................................4011






Direct loan levels supportable by subsidy budget authority:3,6673,5603,456FFB Electric Loans .....................................................................115004173169245Treasury Telecommunications Loans .........................................115006194188183FFB Telecommunications Loans .................................................115007

.................750750FFB Guaranteed Underwriting ...................................................115008

.................600.................Electric Loan Modifications .......................................................115011

.................7224Rural Energy Savings Program ..................................................115012


–4.38–5.17–4.92FFB Electric Loans .....................................................................1320040.500.250.89Treasury Telecommunications Loans .........................................132006

–2.71–2.49–2.53FFB Telecommunications Loans .................................................132007.................–3.86–3.78FFB Guaranteed Underwriting ...................................................132008.................0.00.................Electric Loan Modifications .......................................................132011.................13.3314.44Rural Energy Savings Program ..................................................132012

–4.09–3.89–4.24Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

–161–184–170FFB Electric Loans .....................................................................1330041.................2Treasury Telecommunications Loans .........................................133006

–5–5–5FFB Telecommunications Loans .................................................133007.................–29–28FFB Guaranteed Underwriting ...................................................133008..................................–1Telecommunication Treasury Plus ..............................................133010.................104Rural Energy Savings Program ..................................................133012


–128–128–136FFB Electric Loans .....................................................................134004.................1.................Telecommunication Hardship Loans ..........................................134005..................................–1Treasury Telecommunications Loans .........................................134006

–2–2–2FFB Telecommunications Loans .................................................134007–9–9–11FFB Guaranteed Underwriting ...................................................13400821.................Rural Energy Savings Program ..................................................134012


.................119Electric Hardship Loans ............................................................135001

.................2–91Municipal Electric Loans ...........................................................135002

.................312Treasury Electric Loans ..............................................................135003

.................75–16FFB Electric Loans .....................................................................135004

.................4–15Telecommunication Hardship Loans ..........................................135005

.................4–22Treasury Telecommunications Loans .........................................135006

.................–14–3FFB Telecommunications Loans .................................................135007

.................8291FFB Guaranteed Underwriting ...................................................135008

.................–644Electric Loan Modifications .......................................................135011


Administrative expense data:383833Budget authority .......................................................................351038.................33Outlays from new authority .......................................................3590

The Rural Utilities Service (RUS) conducts the rural electrification andthe rural telecommunications loan programs. The rural electrification loan


program finances the operation of generating plants, electric transmission,and distribution lines or systems. The rural telecommunications loan pro-gram provides funding for construction, expansion, and operation of tele-communications lines and facilities or systems. The Budget requests $5.5billion for the electric direct FFB loan program, $173 million for the tele-communications Treasury loan program, and $517 million for the telecom-munications FFB loan program.

As required by the Federal Credit Reform Act of 1990, this account re-cords, for rural electrification and telecommunications programs, the sub-sidy costs associated with the direct and guaranteed loans obligated in 1992and beyond (including modifications of direct loans or loan guarantees thatresulted from obligations or commitments in any year), as well as adminis-trative expenses of this program. The subsidy amounts are estimated on apresent value basis; the administrative expenses are estimated on a cashbasis. For administrative costs, the 2019 Budget requests $38 million.



Direct obligations:383333Other goods and services from Federal sources ........................25.31397939Grants, subsidies, and contributions ........................................41.0


✦

RURAL ELECTRIFICATION AND TELECOMMUNICATIONS DIRECT LOAN FINANCING

ACCOUNT



Obligations by program activity:1,5901,5621,597Interest on FFB Loans ................................................................0003

Credit program obligations:4,0345,3394,658Direct loan obligations ..........................................................0710491508380Payment of interest to Treasury .............................................0713165217203Negative subsidy obligations ................................................0740



4,6906,3465,964Direct program activities, subtotal ................................................0791



.................3,7885,208Unobligated balance brought forward, Oct 1 .........................1000


.................–3,788–2,800Unobligated balances applied to repay debt .........................1023

..................................–487Unobligated balance of borrowing authority withdrawn ........1024

..................................2,409Unobligated balance (total) ......................................................1050Financing authority:


Spending authority from offsetting collections, mandatory:4,0464,2665,075Collected ...........................................................................1800

–365Change in uncollected payments, Federal sources ............1801


repay debt .....................................................................1825

1,9942,2373,765Spending auth from offsetting collections, mand (total) .......18506,2807,9088,940Budget authority (total) .............................................................19006,2807,90811,349Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................3,788Unexpired unobligated balance, end of year ..........................1941






3–6–5Change in uncollected pymts, Fed sources, unexpired ..........3070






Offsetting collections (collected) from:–4–391–933Payment from program account ........................................4120

–286–283–280Interest on uninvested funds ............................................4122–1,595–1,502–1,022Repayment of principal .....................................................4123–908–825–1,417Interest received on loans .................................................4123–668–674–673Repayment of principal Cushion of Credit .........................4123–585–591–750Repayment of interest Cushion of Credit ...........................4123



2,2373,6363,860Budget authority, net (mandatory) ............................................41601,9911,919676Outlays, net (mandatory) ...........................................................41702,2373,6363,860Budget authority, net (total) ..........................................................41801,9911,919676Outlays, net (total) ........................................................................4190




..................................–1,332Unobligated direct loan limitation (-) ........................................1142


Cumulative balance of direct loans outstanding:50,12248,61747,901Outstanding, start of year .........................................................12103,8033,6823,220Disbursements: Direct loan disbursements ...............................1231

Repayments:–1,595–1,502–1,816Repayments and prepayments - Cash ...................................1251–668–675–678Repayments and prepayments - CoC ....................................1251

..................................–10Write-offs for default: Other adjustments, Reclassifed, net .......1264











Federal liabilities:34025Interest payable .........................................................................2102

5,4447,518Debt ...........................................................................................210343,51441,630FFB ............................................................................................2103

297664Non-Federal liabilities: Other .........................................................2207






2,7873,046Direct loans receivable, gross ....................................................14012...........................Interest receivable .....................................................................1402

4111Allowance for subsidy cost (-) ....................................................1405




RURAL ELECTRIFICATION AND TELECOMMUNICATIONS DIRECT LOAN FINANCING

ACCOUNT—Continued

Balance Sheet—Continued



Federal liabilities:6...........................Interest payable .........................................................................2102

2,3422,543Debt ...........................................................................................21039661,004FFB ............................................................................................2103

841Non-Federal liabilities: Other .........................................................2207



✦

RURAL ELECTRIFICATION AND TELECOMMUNICATIONS GUARANTEED LOANS FINANCING

ACCOUNT



Cumulative balance of guaranteed loans outstanding:161166172Outstanding, start of year .........................................................2210–5–5–6Repayments and prepayments ..................................................2251


Memorandum:


year .......................................................................................2299

✦

RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LIQUIDATING ACCOUNT



Obligations by program activity:2429266Interest Expense, FFB direct ......................................................0002

168174190Other: cushion of credit .............................................................0005

192203456Direct program activities, subtotal ................................................0091Credit program obligations:

1,8781,8621,035CoC for Financing ..................................................................0739



6,8156,9566,078Unobligated balance brought forward, Oct 1 .........................1000.................–140–164Capital transfer of unobligated balances to general fund ......1022

6,8156,8165,914Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, mandatory:366369266Appropriation for CoC Borrower Interest ............................1200168174190Appropriation for RED Grants ............................................1200

534543456Appropriations, mandatory (total) .........................................1260Spending authority from offsetting collections, mandatory:

2,1882,2262,196Collected ...........................................................................1800




repay debt .....................................................................1825

1,5361,5212,077Spending auth from offsetting collections, mand (total) .......18502,0702,0642,533Budget authority (total) .............................................................19008,8858,8808,447Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:6,8156,8156,956Unexpired unobligated balance, end of year ..........................1941



–2,070–2,088–1,481Outlays (gross) ......................................................................3020





2,0702,0641,481Outlays from new mandatory authority .............................4100.................24.................Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:–71–84–156Loans Repaid - Cash .........................................................4123–31–35–133Interest Repaid - Cash ......................................................4123

–2,009–2,019–1,808Cushion of Credit Deposits ................................................4123–68–78–88Loans Repaid - CoC ..........................................................4123–9–10–11Interest Repaid - CoC ........................................................4123

–2,188–2,226–2,196Offsets against gross budget authority and outlays (total) ....4130

–118–162337Budget authority, net (mandatory) ............................................4160–118–138–715Outlays, net (mandatory) ...........................................................4170–118–162337Budget authority, net (total) ..........................................................4180–118–138–715Outlays, net (total) ........................................................................4190



Enacted/requested:–118–162337Budget Authority .......................................................................–118–138–715Outlays ......................................................................................


Total:–247–162337Budget Authority .......................................................................–247–138–715Outlays ......................................................................................



Cumulative balance of direct loans outstanding:2,3412,4722,640Outstanding, start of year .........................................................1210

Repayments:–72–84–157Repayments and prepayments - Cash ...................................1251–68–78–88Repayments and prepayments - CoC ....................................1251293177Adjustments: Capitalized interest .............................................1261





–1.................–4Repayments and prepayments ..................................................2251


Memorandum:


year .......................................................................................2299

STATUS OF AGENCY DEBT

[In millions of dollars]2019 est.2018 est.2017 actual

Agency debt held by FFB:379465570Outstanding FFB direct, start of year ...................................................

135135135Outstanding Certificate of Beneficial Ownership (CBO's), start of

year ..................................................................................................000New agency borrowing, FFB direct ........................................................

–70–86–105Repayments and prepayments, FFB Direct ...........................................000Repayments, CBO's–344 ......................................................................

309379465Outstanding FFB direct, end of year .....................................................135135135Outstanding CBO's, end of year ...........................................................

The Rural Telephone Bank was dissolved in 2006. To accomplish this,the Rural Telephone Bank liquidating account loans were used to redeema portion of the Government's stock. The Rural Telephone Bank liquidating


account loans were transferred to the Rural Electrification and Telecommu-nications liquidating account in 2006.

The Rural Utilities Service (RUS) continues to service all loans in thisaccount, providing business management and technical assistance to theborrowers on a regular basis over the life of the loans.

Rural electric.—This program is financed through RUS direct loans forthe construction and operation of generating plants, electric transmission,and distribution lines or systems.

As required by the Federal Credit Reform Act of 1990, this account re-cords, for rural electrification and telecommunications programs, all cashflows to and from the Government resulting from direct loans obligatedand loan guarantees committed prior to 1992. All new activity in RETRFin 1992 and beyond is recorded in corresponding program and financingaccounts.

The following tables reflect statistics on loans made through the liquidat-ing account only. Since 1992 new electric and telephone loans have beenmade through a separate program account.

ELECTRIC PROGRAM STATISTICS

[dollars in millions]2019 est.2018 est.2017 actual

21,87921,87921,879Cumulative RUS financed direct loans .....................................................26,59826,59826,598Cumulative FFB financed direct loans ......................................................21,87921,87921,879Cumulative RUS funds advanced .............................................................

000Unadvanced RUS funds, end of year .........................................................21,19721,08520,956Cumulative RUS principal repaid .............................................................13,74913,71413,675Cumulative RUS interest paid ..................................................................

000Cumulative loan guarantee commitments ................................................314356Number of borrowers ................................................................................

Rural telecommunications.—This loan program is financed through RUSdirect loans for the construction, expansion, and operation of telecommu-nications lines and facilities or systems.

TELECOMMUNICATIONS PROGRAM STATISTICS


5,9165,9165,916Cumulative RUS financed direct loans .....................................................562562562Cumulative FFB financed direct loans ......................................................

5,9165,9165,916Cumulative RUS funds advanced .............................................................000Unadvanced RUS funds, end of period .....................................................

5,8505,8245,791Cumulative RUS principal repaid .............................................................3,5553,5503,544Cumulative RUS interest paid ..................................................................

000Cumulative loan guarantee commitments ................................................125153173Number of borrowers ................................................................................

RURAL TELEPHONE BANK PROGRAM STATISTICS


2,4712,4712,471Cumulative net loans ...............................................................................2,4712,4712,471Cumulative loan funds, advanced ............................................................

000Unadvanced loan funds, end of year ........................................................2,4702,4692,468Cumulative principal repaid .....................................................................2,4662,4642,463Cumulative interest paid ..........................................................................

91215Number of borrowers ................................................................................





–1,460–1,457Allowance for estimated uncollectible loans and interest (-) .........1603

1,0241,187Value of assets related to direct loans .......................................1699


Federal liabilities:8...........................Interest payable .........................................................................2102

600705Debt ...........................................................................................2103657766Resources payable to Treasury ...................................................21041714Other ..........................................................................................2105

1,2821,485Total liabilities ...........................................................................2999NET POSITION:

–119–119Cumulative results of operations ...................................................3300




Direct obligations:168174190Other services from non-Federal sources ..................................25.22429266Interest and dividends ..............................................................43.0

1,8781,8621,035Financial transfers ....................................................................94.0


RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LIQUIDATING ACCOUNT





Appropriations, mandatory:

–129..................................Appropriations and/or unobligated balance of


–129..................................Budget authority (total) .............................................................1900–129..................................Total budgetary resources available ..............................................1930



129..................................Outlays (gross) ......................................................................3020






The 2019 Budget request proposes to eliminate the interest accrual onfuture deposits in the Rural Utilities Service borrowers' "cushion of credit"accounts, as well as the interest that is paid to the Rural Economic Devel-opment Grant Account to pay for rural economic development grants andloans. This change is consistent with the President's Budget request, whicheliminates rural business programs.

✦

RURAL TELEPHONE BANK PROGRAM ACCOUNT





.................4.................Interest on reestimates of direct loan subsidy .......................0706



Appropriations, mandatory:.................71Appropriation ....................................................................1200.................71Total budgetary resources available ..............................................1930







RURAL TELEPHONE BANK PROGRAM ACCOUNT—Continued











Direct loan reestimates:.................7–1Rural Telephone Bank ................................................................135001

The Rural Telephone Bank (RTB) completed dissolution in 2006, there-fore no federally funded RTB loans are proposed.

As required by the Federal Credit Reform Act of 1990, this account re-cords, for the RTB, the subsidy costs associated with the direct loans oblig-ated in 1992 and beyond. The subsidy amounts are estimated on a presentvalue basis.

✦

RURAL TELEPHONE BANK DIRECT LOAN FINANCING ACCOUNT




379Payment of interest to Treasury .............................................0713..................................1Downward reestimates paid to receipt accounts ...................0742..................................1Interest on downward reestimates ........................................0743










repay debt .....................................................................1825












Financing disbursements:151711Outlays, gross (total) .............................................................4110

Offsets against gross financing authority and disbursements:Offsetting collections (collected) from:

.................–7–1Federal sources .................................................................4120–1–1–2Interest on uninvested funds ............................................4122

–12–12–36Principal received on loans ...............................................4123–4–5–5Interest received on loans .................................................4123


–14–18–16Budget authority, net (mandatory) ............................................4160–2–8–33Outlays, net (mandatory) ...........................................................4170

–14–18–16Budget authority, net (total) ..........................................................4180–2–8–33Outlays, net (total) ........................................................................4190



Cumulative balance of direct loans outstanding:8083123Outstanding, start of year .........................................................121099.................Disbursements: Direct loan disbursements ...............................1231






Net value of assets related to post–1991 direct loans receivable:83123Direct loans receivable, gross ....................................................14016154Allowance for subsidy cost (-) ....................................................1405



178213Federal liabilities: Debt ..................................................................2103


✦

DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND PROGRAM

For the principal amount of broadband telecommunication loans, $23,149,000.For grants for telemedicine and distance learning services in rural areas, as au-

thorized by 7 U.S.C. 950aaa et seq., $23,600,000, to remain available until expended.For the cost of broadband loans, as authorized by section 601 of the Rural Elec-

trification Act, $4,521,000, to remain available until expended: Provided, That thecost of direct loans shall be as defined in section 502 of the Congressional BudgetAct of 1974.

For a grant program to finance broadband transmission in rural areas eligiblefor Distance Learning and Telemedicine Program benefits, as authorized by 7 U.S.C.950aaa, $30,000,000, to remain available until expended.

In addition, for administrative expenses necessary to carry out the broadbandloan program, $8,057,000 shall be paid to the appropriation for "Rural Development,Salaries and Expenses".




Obligations by program activity:686956Grants .......................................................................................0010

Credit program obligations:974Direct loan subsidy ................................................................0701


.................231Interest on reestimates of direct loan subsidy .......................07068..................................Administrative expenses .......................................................0709


8580155Total new obligations .....................................................................0900








reduced .........................................................................1131


.................496Appropriation ....................................................................12006669161Budget authority (total) .............................................................1900










81.................Outlays from new discretionary authority ..........................4010594841Outlays from discretionary balances .................................4011






Direct loan levels supportable by subsidy budget authority:454124Broadband Treasury Rate Loans ................................................115003

454124Total direct loan levels ..............................................................115999Direct loan subsidy (in percent):

19.5316.7516.64Broadband Treasury Rate Loans ................................................132003


974Broadband Treasury Rate Loans ................................................133003

974Total subsidy budget authority ..................................................133999Direct loan subsidy outlays:

444Broadband Treasury Rate Loans ................................................134003


..................................–1Distance Learning and Telemedicine Loans ...............................135001

.................–5250Broadband Treasury Rate Loans ................................................135003

.................–5249Total direct loan reestimates .....................................................135999

Administrative expense data:88.................Budget authority .......................................................................351088.................Outlays from new authority .......................................................3590

The loan and grant program provides access to advanced telecommunic-ations services for improved education and health care in rural areasthroughout the country. The loans and grants help education and healthcare providers bring the most modern technology, level of care, and educa-tion to rural America so its citizens can compete regionally, nationally,and globally.

The Budget proposes $4.5 million to support $23 million in Broadbandloans. The 2019 Budget proposes $23.6 million for Distance Learning andTelemedicine grants and $30 million for Broadband grants.

As required by the Federal Credit Reform Act of 1990, this account re-cords, for this program, the subsidy costs associated with the direct loansobligated and loan guarantees committed in 1992 and beyond (includingcredit sales of acquired property), as well as administrative expenses ofthis program. The subsidy amounts are estimated on a present value basis;the administrative expenses are estimated on a cash basis. For administrativecosts, the 2019 Budget requests $8.1 million.



Direct obligations:8..................................Other goods and services from Federal sources ........................25.3



✦

DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND DIRECT LOAN FINANCING

ACCOUNT




454124Direct loan obligations ..........................................................0710363534Payment of interest to Treasury .............................................0713






.................–174–138Unobligated balances applied to repay debt .........................1023Financing authority:


Spending authority from offsetting collections, mandatory:126135254Collected ...........................................................................1800–5–2.................Change in uncollected payments, Federal sources ............1801


repay debt .....................................................................1825





–73–173–123Outlays (gross) ......................................................................3020


–8–10–10Uncollected pymts, Fed sources, brought forward, Oct 1 ........306052.................Change in uncollected pymts, Fed sources, unexpired ..........3070









DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND DIRECT LOAN FINANCING

ACCOUNT—Continued



–111–115–119Repayment of principal .....................................................4123–5–4–27Interest received on loans .................................................4123


52.................Change in uncollected pymts, Fed sources, unexpired .......4140

–40–125Budget authority, net (mandatory) ............................................4160–5338–131Outlays, net (mandatory) ...........................................................4170–40–125Budget authority, net (total) ..........................................................4180–5338–131Outlays, net (total) ........................................................................4190




..................................–3Unobligated limitation carried forward (P.L. xx) (-) ....................1143


Cumulative balance of direct loans outstanding:9229551,029Outstanding, start of year .........................................................1210378241Disbursements: Direct loan disbursements ...............................1231


..................................4Write-offs for default: Charge Off - Misc and Assn Loans,

net .........................................................................................1264





Net value of assets related to post–1991 direct loans receivable:9551,029Direct loans receivable, gross ....................................................1401

1...........................Interest receivable .....................................................................1402–109–51Allowance for subsidy cost (-) ....................................................1405



1,0331,157Federal liabilities: Debt ..................................................................2103


✦

RURAL DEVELOPMENT INSURANCE FUND LIQUIDATING ACCOUNT









..................................13Spending auth from offsetting collections, mand (total) .......1850

..................................13Total budgetary resources available ..............................................1930Memorandum (non-add) entries:



..................................13Budget authority, gross .........................................................4090Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–63–77–95Non-Federal sources .........................................................4123–63–77–82Budget authority, net (total) ..........................................................4180









.................–1.................Repayments and prepayments ..................................................2251


Memorandum:


year .......................................................................................2299

The Rural Development Insurance Fund (RDIF) was established on Oc-tober 1, 1972, pursuant to section 116 of the Rural Development Act of1972 (Public Law 92–419). Loans are no longer made through this account.



ASSETS:1313Federal assets: Fund balances with Treasury .................................11013434Non-Federal assets: Investments in non-Federal securities, net .....1201

345421Direct loans, gross .........................................................................160154Interest receivable .........................................................................1602


348424Value of assets related to direct loans .......................................1699......................................................Other Federal assets: Other assets ................................................1901




✦

FOREIGN AGRICULTURAL SERVICEFederal Funds



For necessary expenses of the Foreign Agricultural Service, including not to exceed$250,000 for representation allowances and for expenses pursuant to section 8 ofthe Act approved August 3, 1956 (7 U.S.C. 1766), $193,085,000, of which no morethan 6 percent shall remain available until September 30, 2020, for overseas oper-ations to include the payment of locally employed staff: Provided, That the Servicemay utilize advances of funds, or reimburse this appropriation for expendituresmade on behalf of Federal agencies, public and private organizations and institutionsunder agreements executed pursuant to the agricultural food production assistanceprograms (7 U.S.C. 1737) and the foreign assistance programs of the United StatesAgency for International Development: Provided further, That funds made availablefor middle-income country training programs, funds made available for the BorlaugInternational Agricultural Science and Technology Fellowship program, and up to$2,000,000 of the Foreign Agricultural Service appropriation solely for the purposeof offsetting fluctuations in international currency exchange rates, subject to docu-mentation by the Foreign Agricultural Service, shall remain available until expended.






Current law:

11.................Deposits of Miscellaneous Contributed Funds, Foreign

Agricultural Service. ..........................................................1130

21.................Total: Balances and receipts .....................................................2000




Obligations by program activity:958283Trade Promotion ........................................................................0001627071Trade Policy ...............................................................................0002364343Capacity Building\Food Security ................................................0003

193195197Total direct obligations ..................................................................0799132143126Salaries and Expenses (Reimbursable) .....................................0801



203035Unobligated balance brought forward, Oct 1 .........................1000..................................1Unobligated balance transfer from other acct [072–1037] ....1011..................................1Unobligated balance transfer from other acct [072–0306] ....1011..................................2Recoveries of prior year unpaid obligations ...........................1021




reduced .........................................................................1131


1..................................Appropriation ....................................................................1200Spending authority from offsetting collections, discretionary:

636362Collected ...........................................................................1700667091Change in uncollected payments, Federal sources ............1701


Memorandum (non-add) entries:..................................–36Unobligated balance expiring ................................................1940.................2030Unexpired unobligated balance, end of year ..........................1941


















–66–70–91Change in uncollected pymts, Fed sources, unexpired .......4050.................270Offsetting collections credited to expired accounts ...........4052

–66–68–21Additional offsets against budget authority only (total) ........4060


Mandatory:1..................................Budget authority, gross .........................................................4090

Outlays, gross:1..................................Outlays from new mandatory authority .............................4100

176195197Budget authority, net (total) ..........................................................4180240292179Outlays, net (total) ........................................................................4190

The Foreign Agricultural Service's (FAS) mission is linking U.S. agricul-ture to the world to enhance export opportunities and global food security.FAS helps to provide outlets for the wide variety of U.S. agriculturalproducts, thereby enhancing economic activity for U.S. workers. FASserves U.S. agriculture's interests by expanding and maintaining interna-tional export opportunities, supporting international economic developmentand trade and capacity building, and global food security. The outcomesenvisioned are exports that help U.S. agriculture prosper, the expansion ofU.S. exports of organics and crops produced using new technologies andfood that are globally available, accessible, and appropriately used. In ad-dition to its Washington-based staff, the agency maintains a network ofoverseas offices that serve as first responders in cases of market disruption.The overseas offices also provide the Department with critical market andpolicy intelligence, and they represent U.S. agriculture in consultationswith foreign governments. The 2019 Budget includes $193 million forFAS. For more information on FAS's mission and program topic areas,please visit http://www.fas.usda.gov/topics.





908780Total personnel compensation ...........................................11.9313028Civilian personnel benefits ........................................................12.1999Travel and transportation of persons .........................................21.0222Transportation of things ............................................................22.0444Rental payments to others ........................................................23.2444Communications, utilities, and miscellaneous charges ............23.3

515667Other services from non-Federal sources ..................................25.2122Supplies and materials .............................................................26.0111Equipment .................................................................................31.0



Employment Summary



✦

TRADE ADJUSTMENT ASSISTANCE FOR FARMERS

The Trade Adjustment Assistance (TAA) for Farmers Program wasreauthorized and modified by the American Recovery and ReinvestmentAct of 2009 as established by Subtitle C of Title I of the Trade Act of 2002,which amended the Trade Act of 1974. The 2019 Budget does not requestfunding for the program.

✦

151DEPARTMENT OF AGRICULTUREForeign Agricultural Service—Continued


FOREIGN ASSISTANCE PROGRAMS

Multiple food aid programs are appropriated to USDA and administeredby USDA or the U.S. Agency for International Development (USAID) toprovide U.S. commodities, technical and financial assistance to addresshunger and malnutrition needs worldwide. These programs address emer-gency needs and foster economic development activities to alleviate globalfood insecurity.

SUMMARY OF FOOD ASSISTANCE PROGRAMMING

[In millions of dollars]2019 est.2018 est.2017-

actual

020112021McGovern-Dole International Food for Education and Child Nutrition (budgetauthority) ..................................................................................................P.L. 480:

01,58921,6002Title II Grants (budget authority) ..........................................................

Food for Progress:0166166CCC Funded .........................................................................................

0300Bill Emerson Humanitarian Trust ..............................................................

1The Consolidated Appropriations Act of 2017 and the Further Continuing Appropriations Act, 2018, provided $5 millionwithin McGovern-Dole that can be used for Local and Regional Food Aid Procurement.2The total excludes $300 million in International Disaster Assistance account for Overseas Contingency Operationsfunding required to be transferred and merged with Title II funding in the Department of State, Foreign Operations,and Related Programs Appropriations Act, 2017 and in the Further Continuing Appropriations Act, 2018 (Division Dof P.L. 115–56, as amended).3Assets of the trust can be released any time the Administrator of the U.S. Agency for International Development de-termines that P.L. 480 Title II funding for emergency needs are inadequate to meet these needs in any fiscal year.

Included in this category are the following activities carried out underPublic Law 480 (P.L. 480):

Financing sales of agricultural commodities to developing countries fordollars on credit terms, or for local currencies (including for local curren-cies on credit terms) for use under sec 104; and for furnishing commoditiesto carry out the Food for Progress Act of 1985, as amended (TitleI).—Funds appropriated for P.L. 480 Title I since FY 2006 are used tofinance all sales made pursuant to agreements concluded under the authorityof Title I. No 2019 funding is requested for new direct credit under TitleI; however, funding for administrative expenses associated with managingthe existing loan portfolio is requested.

Commodities supplied in connection with dispositions abroad (TitleII).—Title II of the Food for Peace Act (P.L. 83–480), as amended, formerlythe Agricultural Trade Development and Assistance Act of 1954) authorizesthe provision of U.S. food assistance to meet emergency food needs aroundthe world, and funds development-oriented programs to help address theunderlying causes of food insecurity. P.L. 480 Title II is appropriated tothe U.S. Department of Agriculture and is administered by the U.S. Agencyfor International Development (USAID).

The Commodity Credit Corporation (the Corporation) is authorized topay the costs of acquisition, packaging, processing, enrichment, preserva-tion, fortification, transportation, handling, and other incidental costs in-curred up to the time of delivery at U.S. ports. The Corporation also paysocean freight charges, and pays transportation costs to points of entry otherthan ports in the case of landlocked countries, where carriers to a specificcountry are not available, where ports cannot be used effectively, or wherea substantial savings in costs or time can be effected, and pays general av-erage contributions arising from ocean transport. In addition, transportationcosts from designated points of entry or ports of entry abroad to storageand distribution sites and associated storage and distribution costs may bepaid for commodities made available to meet urgent and extraordinary reliefrequirements. P.L. 480 funds reimburse the Corporation for all of the costitems authorized above. The 2019 Budget proposes to eliminate the pro-gram.

✦

MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD

NUTRITION PROGRAM GRANTS

Note.—A full-year 2018 appropriation for this account was not enacted at the time the budgetwas prepared; therefore, the budget assumes this account is operating under the Continuing

Appropriations Act, 2018 (Division D of P.L. 115–56, as amended). The amounts included for2018 reflect the annualized level provided by the continuing resolution.




.................200260McGovern-Dole International Food for Education & Child Nutrition

Program ................................................................................0001

.................200260Total new obligations, unexpired accounts (object class 41.0) .......0900




Appropriations, discretionary:.................201202Appropriation ....................................................................1100.................201202Budget authority (total) .............................................................1900













The McGovern-Dole International Food for Education and Child NutritionProgram, as amended, is authorized under the Farm Security and RuralInvestment Act of 2002 (Public Law 107171). The program provides forthe donation of U.S. agricultural commodities and associated technical andfinancial assistance to carry out preschool and school feeding programs inforeign countries . Maternal, infant, and child nutrition programs also areauthorized. The 2019 Budget proposes to eliminate the program becauseit is duplicative of U.S. Agency for International Development (USAID)programs, lacks evidence that it is being effectively implemented, and hasunaddressed oversight and performance monitoring challenges. During the15-year operation of McGovern-Dole, auditors have found oversightweaknesses as reported by the Government Accountability Office (GAO),independent consultants, and the Department of Agriculture's Office ofInspector General. In the most recent GAO report in 2011, the GAO foundweaknesses in performance monitoring, program evaluations, and promptcloseouts of agreements. Weak performance monitoring cannot accuratelyshow whether program objectives are achieved and ensure that sustainab-ility is ultimately reached in the communities served once agreements close.While the GAO recommendations have technically been addressed, USDAis not able to provide evidence of substantive impacts on the nutrition ofrecipients.

✦

THE BUDGET FOR FISCAL YEAR 2019152 Foreign Agricultural Service—ContinuedFederal Funds—Continued

PUBLIC LAW 480 TITLE I OCEAN FREIGHT DIFFERENTIAL GRANTS

This account funds the Title I ocean freight differential program. Nofunding is requested for 2019.

✦

FOOD FOR PEACE TITLE II GRANTS




Obligations by program activity:.................1,7501,887Title II Grants .............................................................................0002

.................1,7501,887Total new obligations (object class 41.0) ......................................0900


34820973Unobligated balance brought forward, Oct 1 .........................1000.................20973Discretionary unobligated balance brought fwd, Oct 1 ......1001..................................120Recoveries of prior year unpaid obligations ...........................1021..................................3Recoveries of prior year paid obligations ...............................1033


Appropriations, discretionary:.................1,5891,600Appropriation ....................................................................1100.................300300Appropriations transferred from other acct [072–1035] ....1121

.................1,8891,900Appropriation, discretionary (total) .......................................1160

.................1,8891,900Budget authority (total) .............................................................19003482,0982,096Total budgetary resources available ..............................................1930



2,0421,6371,392Unpaid obligations, brought forward, Oct 1 ..........................3000.................1,7501,887New obligations, unexpired accounts ....................................3010

–735–1,345–1,522Outlays (gross) ......................................................................3020..................................–120Recoveries of prior year unpaid obligations, unexpired .........3040




.................1,8891,900Budget authority, gross .........................................................4000Outlays, gross:

.................567265Outlays from new discretionary authority ..........................40107357781,257Outlays from discretionary balances .................................4011



Additional offsets against gross budget authority only:


accounts .......................................................................4053

.................1,8891,900Budget authority, net (discretionary) .........................................40707351,3451,519Outlays, net (discretionary) .......................................................4080

.................1,8891,900Budget authority, net (total) ..........................................................41807351,3451,519Outlays, net (total) ........................................................................4190

P.L. 480 II grants fund emergency and development food aid programsauthorized under Title II of the Food for Peace Act (P.L. 83–480). Fundingfor Title II is appropriated to the U.S. Department of Agriculture and isadministered by the U.S. Agency for International Development (USAID).There is no request for P.L. 480 Title II, as part of an Administration effortto streamline foreign assistance, prioritize funding, and use funding as ef-fectively and efficiently as possible.

The 2019 request includes funding for emergency food needs within themore efficient International Disaster Assistance account.

✦

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

ACCOUNT


For administrative expenses to carry out the credit program of title I, Food forPeace Act (Public Law 83–480) and the Food for Progress Act of 1985, $142,000shall be transferred to and merged with the appropriation for "Farm Service Agency,Salaries and Expenses".







.................4114Total new obligations, unexpired accounts (object class 41.0) .......0900



Appropriations, mandatory:.................4114Appropriation ....................................................................1200.................4114Budget authority (total) .............................................................1900





.................–41–14Outlays (gross) ......................................................................3020








Direct loan reestimates:.................25.................P. L. 480 title I loans ..................................................................135001

As required by the Federal Credit Reform Act of 1990, this account re-cords, for the P.L. 480 Program, the subsidy costs associated with the directcredit obligated in 1992 and beyond (including modifications of directcredit agreements that resulted from obligation in any year), as well asadministrative expenses of this program. The subsidy amounts are estimatedon a present value basis; and the administrative expenses and grants areestimated on a cash basis. The current balance of Title I debt owed to USDAis $3.1 billion. No additional funding is requested for new Title I creditfinancing in 2019. The 2019 Budget includes $142,000 for administrativeexpenses.

✦



P.L. 480 DIRECT CREDIT FINANCING ACCOUNT




293234Payment of interest to Treasury .............................................0713.................42Downward reestimates paid to receipt accounts ...................0742.................1212Interest on downward reestimates ........................................0743




..................................5Unobligated balance (total) ......................................................1050Financing authority:





repay debt .....................................................................1825




11.................Unpaid obligations, brought forward, Oct 1 ..........................3000294848New obligations, unexpired accounts ....................................3010

–29–48–47Outlays (gross) ......................................................................3020




11–2Obligated balance, start of year ............................................3100111Obligated balance, end of year ..............................................3200




Offsetting collections (collected) from:.................–41–14Payments from program account - Upward Reestimate .....4120

–2–2–5Interest on uninvested funds ............................................4122–8–10–14Interest received on loans .................................................4123

–61–63–66Principal received on loans ...............................................4123



–1–43–20Budget authority, net (mandatory) ............................................4160–42–68–52Outlays, net (mandatory) ...........................................................4170–1–43–20Budget authority, net (total) ..........................................................4180





..................................–86Write-offs for default: Direct loans ............................................1263







480555Net present value of assets related to direct loans ................14994028Other Federal assets: Accounts Receivable ....................................1901


Federal liabilities:537569Debt ...........................................................................................21031628Other ..........................................................................................2105



✦

DEBT REDUCTION FINANCING ACCOUNT




444Payment of interest to Treasury .............................................0713








..................................–3Spending authority from offsetting collections applied to

repay debt .....................................................................1825





Uncollected payments:..................................–4Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060..................................4Change in uncollected pymts, Fed sources, unexpired ..........3070

Memorandum (non-add) entries:..................................–4Obligated balance, start of year ............................................3100




Offsetting collections (collected) from:–2–2–8Interest on uninvested funds ............................................4122–8–8–8Loan Repayments - Principal ............................................4123–3–3–3Loan Repayments- Interest ...............................................4123



..................................–1Budget authority, net (mandatory) ............................................4160–9–9–15Outlays, net (mandatory) ...........................................................4170

..................................–1Budget authority, net (total) ..........................................................4180–9–9–15Outlays, net (total) ........................................................................4190

THE BUDGET FOR FISCAL YEAR 2019154 Foreign Agricultural Service—ContinuedFederal Funds—Continued









14Interest receivable .....................................................................140210–125Allowance for subsidy cost (-) ....................................................1405

123...........................Net present value of assets related to direct loans ................1499......................................................Other Federal assets: Accounts Receivable ....................................1901


...........................67Federal liabilities: Resources payable to Treasury ..........................210422421Non-Federal liabilities: Accounts payable ......................................2201



✦

EXPENSES, PUBLIC LAW 480, FOREIGN ASSISTANCE PROGRAMS, AGRICULTURE

LIQUIDATING ACCOUNT




111Vietnam Education Fund .......................................................0715





Spending authority from offsetting collections, mandatory:216227270Offsetting collections (cash) (Principal and interest) ........1800









111Outlays from new mandatory authority .............................4100Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–191–196–233Principal repayments ........................................................4123–25–31–37Interest repayments ..........................................................4123





Cumulative balance of direct loans outstanding:1,3851,5812,157Outstanding, start of year .........................................................1210–191–196–233Repayments: Repayments and prepayments .............................1251

..................................–343Write-offs for default: Other adjustments, net (+ or -) ..............1264






–1,235–1,072Allowance for estimated uncollectible loans and interest (-) .........1603

8381,097Direct loans and interest receivable, net ...................................16049...........................Accounts receivable .......................................................................1605

8471,097Value of assets related to direct loans .......................................1699

8691,124Total assets ...............................................................................1999LIABILITIES:

...........................1,105Federal liabilities: Resources payable to Treasury ..........................2104Non-Federal liabilities:

864...........................Liabilities for loan guarantees ...................................................2204519Other ..........................................................................................2207

8691,124Total liabilities ...........................................................................2999

8691,124Total liabilities and net position .....................................................4999

✦

Trust Funds

FOREIGN SERVICE NATIONAL SEPARATION LIABILITY TRUST FUND




Current law:..................................3Foreign Service National Separation Liability Trust Fund ........1140

..................................3Total: Balances and receipts .....................................................2000Appropriations:

Current law:..................................–3Foreign Service National Separation Liability Trust Fund ........2101




Obligations by program activity:..................................18Direct program activity ..............................................................0001

..................................18Total new obligations, unexpired accounts (object class 11.5) .......0900


..................................15Unobligated balance brought forward, Oct 1 .........................1000Budget authority:

Appropriations, mandatory:..................................3Appropriation (special or trust fund) .................................1201..................................18Total budgetary resources available ..............................................1930


1181Unpaid obligations, brought forward, Oct 1 ..........................3000..................................18New obligations, unexpired accounts ....................................3010.................–17–1Outlays (gross) ......................................................................3020




Trust Funds

FOREIGN SERVICE NATIONAL SEPARATION LIABILITY TRUST FUND—Continued




..................................3Budget authority, gross .........................................................4090Outlays, gross:

.................171Outlays from mandatory balances ....................................4101



This fund is maintained to pay separation costs for locally-employed staffin those countries in which such pay is legally authorized. The fund willbe maintained by annual government contributions which are appropriatedto the Foreign Agricultural Service Salaries and Expenses account.

✦

FOOD AND NUTRITION SERVICEFederal Funds

NUTRITION PROGRAMS ADMINISTRATION

For necessary administrative expenses of the Food and Nutrition Service for car-rying out any domestic nutrition assistance program, $160,838,000.




Obligations by program activity:161170149Nutrition programs administration ............................................0001

..................................2Congressional hunger center fellowship ....................................0003

..................................1Child Nutrition Study .................................................................0005



1717.................Unobligated balance brought forward, Oct 1 .........................1000Budget authority:














This account funds the majority of the Federal operating expenses of theFood and Nutrition Service , including the Center for Nutrition Policy andPromotion (CNPP).





858586Total personnel compensation ...........................................11.9262729Civilian personnel benefits ........................................................12.1222Travel and transportation of persons .........................................21.0

171713Rental payments to GSA ............................................................23.111.................Communications, utilities, and miscellaneous charges ............23.3

26143Other services from non-Federal sources ..................................25.23315Other goods and services from Federal sources ........................25.3111Supplies and materials .............................................................26.0

.................18.................Land and structures ..................................................................32.0



Employment Summary



✦

SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

For necessary expenses to carry out the Food and Nutrition Act of 2008 (7 U.S.C.2011 et seq.), $73,218,276,000, of which $3,000,000,000, to remain available throughDecember 31, 2020, shall be placed in reserve for use only in such amounts and atsuch times as may become necessary to carry out program operations: Provided,That funds provided herein shall be expended in accordance with section 16 of theFood and Nutrition Act of 2008: Provided further, That this appropriation shall besubject to any work registration or workfare requirements as may be required bylaw: Provided further, That funds made available for Employment and Trainingunder this heading shall remain available through September 30, 2020: Providedfurther, That funds made available under this heading for section 28(d)(1) andsection 27(a) of the Food and Nutrition Act of 2008 shall remain available throughSeptember 30, 2020: Provided further, That funds made available under this headingmay be used to enter into contracts and employ staff to conduct studies, evaluations,or to conduct activities related to program integrity provided that such activitiesare authorized by the Food and Nutrition Act of 2008.




Obligations by program activity:62,06662,63963,563Benefits issued .........................................................................00014,6044,4833,796State administration .................................................................0002487477437Employment and training program ............................................0003190176186Other program costs ..................................................................0004

1,9621,9291,949Nutrition Assistance for Puerto Rico ..........................................0005

10310591Food Distribution Program on Indian Reservations (Commodities

in lieu of food stamps) ..........................................................0006

504854Food Distribution Program on Indian Reservations (Cooperator

administrative expense) ........................................................0007

294289186The Emergency Food Assistance Program (commodities) ..........0008888American Samoa .......................................................................0009999Community Food Projects ..........................................................0010

121221Commonwealth of the Northern Mariana Islands ......................0011428421411Nutrition Education Grant Program ...........................................0012

555Program access .........................................................................0013.................3,000.................Contingency ..............................................................................0014

70,21873,60170,716Direct program activities, subtotal ................................................0091.................3.................Direct Funds for Program Integrity ............................................0501

70,21873,60470,716Total direct obligations ..................................................................0799858558Supplemental Nutrition Assistance Program (Reimbursable) .....0801


THE BUDGET FOR FISCAL YEAR 2019156 Foreign Agricultural Service—ContinuedTrust Funds—Continued


3,0856,0676,032Unobligated balance brought forward, Oct 1 .........................1000..................................16Recoveries of prior year unpaid obligations ...........................1021






73,21873,60278,488Appropriations, mandatory (total) .........................................1260Spending authority from offsetting collections, mandatory:


858559Spending auth from offsetting collections, mand (total) .......185073,30373,70778,548Budget authority (total) .............................................................190076,38879,77484,596Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:–3,000–3,000–7,755Unobligated balance expiring ................................................19403,0853,0856,067Unexpired unobligated balance, end of year ..........................1941












1.................5Outlays from discretionary balances .................................4011Mandatory:




Offsetting collections (collected) from:–85–85–58State Option Plans ............................................................4123






Legislative proposal, subject to PAYGO:–17,011..................................Budget Authority .......................................................................–17,011..................................Outlays ......................................................................................


The Supplemental Nutrition Assistance Program (SNAP) is the primarysource of nutrition assistance for low-income Americans. This accountalso includes funds for a grant to Puerto Rico to administer a low-incomenutrition assistance program, in lieu of SNAP; funds to carry out the

Emergency Food Assistance Act of 1983; and funds for food distributionand administrative expenses for Native Americans under section 4(b) ofthe Food and Nutrition Act.

The SNAP contingency fund holds benefits in reserve to cover unforeseenevents, such as natural disasters and fluctuations in food prices.



Direct obligations:414132Personnel compensation: Full-time permanent .........................11.1131310Civilian personnel benefits ........................................................12.1224Travel and transportation of persons .........................................21.0

81811Printing and reproduction .........................................................24.08282103Other services from non-Federal sources ..................................25.2





Employment Summary



SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM




Obligations by program activity:–16,535..................................Benefits issued .........................................................................0001

–476..................................State administration .................................................................0002

–17,011..................................Direct program activities, subtotal ................................................0091

–17,011..................................Total direct obligations ..................................................................0799

–17,011..................................Total new obligations, unexpired accounts (object class 41.0) .......0900


Appropriations, mandatory:–17,011..................................Appropriation ....................................................................1200–17,011..................................Budget authority (total) .............................................................1900–17,011..................................Total budgetary resources available ..............................................1930


–17,011..................................New obligations, unexpired accounts ....................................301017,011..................................Outlays (gross) ......................................................................3020


–17,011..................................Budget authority, gross .........................................................4090Outlays, gross:

–17,011..................................Outlays from new mandatory authority .............................4100–17,011..................................Budget authority, net (total) ..........................................................4180–17,011..................................Outlays, net (total) ........................................................................4190

The President's Budget includes a number of legislative proposals thatare designed to improve nutrition and target benefits to those who needthem while ensuring careful stewardship of taxpayers' money. This suiteof proposals includes a new approach to nutrition assistance that combinesretail-based SNAP benefits with a package of nutritious, 100 percentAmerican-grown food. The Budget also encourages States to innovate inhelping participants move to self-sufficiency and improving employmentoutcomes. The Budget encourages States to serve recipients more efficientlyby capping the federal match of general administrative costs at the averagecosts per case. The Budget streamlines age requirements in the programand mandates the use of a real-time database to prevent duplicate particip-ation across State lines. Proposals are also included to eliminate funding

157DEPARTMENT OF AGRICULTUREFood and Nutrition Service—Continued


SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM—Continued

for State performance bonuses and for SNAP nutrition education grants,which have not demonstrated success in measurable ways. Finally, theBudget continues a number of proposals included in the FY 2018 President'sBudget including standardizing how States account for utility costs andaligning the treatment of actual out-of-pocket expenses for low incomehouseholds; ensuring that those who can work, do work by limiting theuse of waivers that exempt able-bodied adults without dependents fromwork requirements ; improving consistency across safety net programs byaligning income and asset limits and eliminating loopholes ; eliminatingthe minimum benefit now provided to those who would otherwise qualifyfor less ; and setting an overall limit for a household's benefit at the currentmaximum for a household of six.

✦

CHILD NUTRITION PROGRAMS


For necessary expenses to carry out the Richard B. Russell National SchoolLunch Act (42 U.S.C. 1751 et seq.), except section 21, and the Child Nutrition Actof 1966 (42 U.S.C. 1771 et seq.), except sections 17 and 21; $23,146,940,000, toremain available through September 30, 2020, of which such sums as are madeavailable under section 14222(b)(1) of the Food, Conservation, and Energy Actof 2008 (Public Law 110–246), as amended by this Act, shall be merged with andavailable for the same time period and purposes as provided herein: Provided,That of the total amount available, $15,475,000 shall be available to carry outsection 19 of the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.): Providedfurther, That of the total amount available, $22,957,000 shall remain availableuntil expended to carry out section 749(g) of the Agriculture Appropriations Actof 2010 (Public Law 111–80): Provided further, That section 26(d) of the RichardB. Russell National School Lunch Act (42 U.S.C. 1769g(d)) is amended in the firstsentence by striking "2010 through 2017" and inserting "2010 through 2019":Provided further, That section 9(h)(3) of the Richard B. Russell National SchoolLunch Act (42 U.S.C. 1758(h)(3)) is amended in the first sentence by striking "Forfiscal year 2017" and inserting "For fiscal year 2019": Provided further, Thatsection 9(h)(4) of the Richard B. Russell National School Lunch Act (42 U.S.C.1758(h)(4)) is amended in the first sentence by striking "For fiscal year 2017"and inserting "For fiscal year 2019".Note.—A full-year 2018 appropriation for this account was not enacted at the time the budget




Obligations by program activity:490493473Above 185 of poverty .................................................................0001965980926130–185 of poverty ...................................................................0002

11,84911,44410,904Below 130 of poverty .................................................................0003

13,30412,91712,303Subtotal, National School Lunch Program .....................................0091125117108Above 185 of poverty .................................................................0101239234214130–185 of poverty ...................................................................0102

4,7184,4384,064Below 130 of poverty .................................................................0103

5,0824,7894,386Subtotal, School Breakfast Program ..............................................0191201191197Above 185 of poverty .................................................................0201167157157130–185 of poverty ...................................................................0202

3,5653,2903,293Below 130 of poverty .................................................................0203

3,9333,6383,647Subtotal, Child and Adult Care Feeding Program ..........................0291519502506Summer Food Service Program ..................................................0301

988Special Milk Program ................................................................0302303314296State Administrative Expenses ..................................................0303

1,4741,3861,376Commodity Procurement ...........................................................0304101110Coordinated Review Effort .........................................................0310333Food Safety Education ...............................................................0315

222828CN Studies and Evaluations ......................................................0320121312Computer Support and Processing ............................................0325294833Other Mandatory Program Costs ................................................0340

2,3812,3132,272Subtotal, Other mandatory activities .............................................0391152215Team Nutrition and HealthierUS Schools Challenge ..................0401232325Summer EBT Demonstration ......................................................0405

.................2923School Meals Equipment Grants 2 year .....................................0415

387463Subtotal, discretionary activities ...................................................0491174133184Fresh Fruit and Vegetable Program ...........................................0501

881Tech. Assist. Program Integrity/Administrative Reviews ............0502

555National Food Service Management Inst./Information

Clearinghouse .......................................................................0504

6610Other Permanent Programs .......................................................0520

193152200Subtotal, Permanent Programs ......................................................0591

24,93123,88322,871Total direct obligations ..................................................................0799



1,5911,169896Unobligated balance brought forward, Oct 1 .........................1000.................918Discretionary unobligated balance brought fwd, Oct 1 ......1001..................................280Recoveries of prior year unpaid obligations ...........................1021


Appropriations, discretionary:–87–6065Appropriation ....................................................................1100


191919Appropriation- Permanent Appropriation ..........................12009,3949,0449,672Appropriations transferred from other acct [012–5209] ....1221



23,42724,36522,912Appropriations, mandatory (total) .........................................126023,34024,30522,977Budget authority (total) .............................................................190024,93125,47424,153Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................–113Unobligated balance expiring ................................................1940.................1,5911,169Unexpired unobligated balance, end of year ..........................1941









–87–6065Budget authority, gross .........................................................4000Outlays, gross:

–121–11721Outlays from new discretionary authority ..........................4010575741Outlays from discretionary balances .................................4011

–64–6062Outlays, gross (total) .............................................................4020Mandatory:



23,73824,10422,409Outlays, gross (total) .............................................................411023,34024,30522,977Budget authority, net (total) ..........................................................418023,67424,04422,471Outlays, net (total) ........................................................................4190






The Child Nutrition Programs provide reimbursement to State agenciesfor cash and commodity meal subsidies through the National School LunchProgram (NSLP), School Breakfast Program (SBP), Special Milk Program,Summer Food Service Program (SFSP), and Child and Adult Care Food

THE BUDGET FOR FISCAL YEAR 2019158 Food and Nutrition Service—ContinuedFederal Funds—Continued

Program (CACFP). These programs provide nutritionally balanced, low-cost or free breakfasts and lunches to children every school day; providenutrition assistance to children when school is not in session during summermonths; and improve the quality of day care, making it more affordablefor low-income families by providing reimbursement for nutritious mealsand snacks. In addition, the Fresh Fruit and Vegetable program, targetedto low-income elementary schools, provides fresh fruits and vegetables atno charge to children during the school day. The 2019 Budget will supportmore than 5.2 billion lunches and snacks served to 31 million children inthe NSLP, over 2.6 billion breakfasts served to more than 15 million chil-dren in the SBP, and over 2.2 billion meals and snacks served in day carefacilities.



Direct obligations:333329Personnel compensation: Full-time permanent .........................11.110109Civilian personnel benefits ........................................................12.1222Travel and transportation of persons .........................................21.0111Printing and reproduction .........................................................24.0

434245Other services from non-Federal sources ..................................25.21,4741,3861,376Supplies and materials (Commodities) .....................................26.0

111Equipment .................................................................................31.023,36722,40821,408Grants, subsidies, and contributions ........................................41.0

24,93123,88322,871Direct obligations ..................................................................99.0


Employment Summary



CHILD NUTRITION PROGRAMS




Obligations by program activity:–149..................................Below 130 of poverty .................................................................0003

–149..................................Subtotal, National School Lunch Program .....................................0091–12..................................Below 130 of poverty .................................................................0103

–12..................................Subtotal, School Breakfast Program ..............................................0191

–161..................................Total direct obligations ..................................................................0799

–161..................................Total new obligations, unexpired accounts (object class 41.0) .......0900


Appropriations, mandatory:–161..................................Appropriation ....................................................................1200–161..................................Budget authority (total) .............................................................1900–161..................................Total budgetary resources available ..............................................1930


–161..................................New obligations, unexpired accounts ....................................3010161..................................Outlays (gross) ......................................................................3020




The Budget includes legislative proposals in the Supplemental NutritionAssistance Program that will reduce the number of children consideredautomatically eligible for free meals in the Child Nutrition Programs.

✦

SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND

CHILDREN (WIC)

For necessary expenses to carry out the special supplemental nutrition programas authorized by section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786),$5,750,000,000, to remain available through September 30, 2020: Provided, Thatnotwithstanding section 17(h)(10) of the Child Nutrition Act of 1966 (42 U.S.C.1786(h)(10)), not less than $60,000,000 shall be used for breastfeeding peer coun-selors and other related activities, and $13,600,000 shall be used for infrastructure:Provided further, That none of the funds provided in this account shall be availablefor the purchase of infant formula except in accordance with the cost containmentand competitive bidding requirements specified in section 17 of such Act: Providedfurther, That none of the funds provided shall be available for activities that are notfully reimbursed by other Federal Government departments or agencies unless au-thorized by section 17 of such Act: Provided further, That upon termination of afederally mandated vendor moratorium and subject to terms and conditions estab-lished by the Secretary, the Secretary may waive the requirement at 7 CFR246.12(g)(6) at the request of a State agency.




Obligations by program activity:6,0326,5016,524Grants to States ........................................................................0001

.................2063WIC EBT/MIS ..............................................................................000414148Infrastructure Grants and Technical Assistance ........................0010606060Breastfeeding Peer Counselors and Bonuses ............................0020162610Program Initiatives and Evaluations .........................................0030

6,1226,6216,665Direct program activities (discretionary), subtotal ........................009111.................UPC Database (mandatory) .......................................................0101




6901,456700Recoveries of prior year unpaid obligations ...........................1021



..................................–850Appropriations permanently reduced ................................1130

–215–850.................Unobligated balance of appropriations permanently

reduced .........................................................................1131

5,5355,4635,500Appropriation, discretionary (total) .......................................1160Appropriations, mandatory:

111Appropriation - Permanent Appropriation .........................12005,5365,4645,501Budget authority (total) .............................................................19007,0577,4537,200Total budgetary resources available ..............................................1930





404038Obligations ("upward adjustments"), expired accounts ........3011–5,523–5,803–5,699Outlays (gross) ......................................................................3020–690–1,456–700Recoveries of prior year unpaid obligations, unexpired .........3040




159DEPARTMENT OF AGRICULTUREFood and Nutrition Service—Continued


SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN

(WIC)—Continued





4,0924,0383,568Outlays from new discretionary authority ..........................40101,4301,7652,130Outlays from discretionary balances .................................4011

5,5225,8035,698Outlays, gross (total) .............................................................4020Mandatory:


1.................1Outlays from mandatory balances ....................................41015,5365,4645,501Budget authority, net (total) ..........................................................41805,5235,8035,699Outlays, net (total) ........................................................................4190

The Special Supplemental Nutrition Program for Women, Infants, andChildren (WIC) provides low-income at-risk pregnant and postpartumwomen, infants, and children nutritious supplemental food packages, nutri-tion education and counseling, and health and immunization referrals. The2019 Budget supports nutrition benefits for the 6.9 million individuals ex-pected to participate in the program each month.




141414Other services from non-Federal sources ..................................25.2111Supplies and materials .............................................................26.0



Employment Summary



✦

COMMODITY ASSISTANCE PROGRAM

For necessary expenses to carry out disaster assistance; the Emergency FoodAssistance Act of 1983; and special assistance for the nuclear affected islands, asauthorized by section 103(f)(2) of the Compact of Free Association AmendmentsAct of 2003 (Public Law 108–188), $55,471,000, to remain available throughSeptember 30, 2020: Provided, That none of these funds shall be available to reim-burse the Commodity Credit Corporation for commodities donated to the program:Provided further, That notwithstanding any other provision of law, effective withfunds made available in fiscal year 2019 to support the Seniors Farmers' MarketNutrition Program, as authorized by section 4402 of the Farm Security and RuralInvestment Act of 2002, such funds shall remain available through September 30,2020: Provided further, That of the funds made available under section 27(a) of theFood and Nutrition Act of 2008 (7 U.S.C. 2036(a)), the Secretary may use up to 10percent for costs associated with the distribution of commodities.




Obligations by program activity:.................260155Commodity procurement ...........................................................0001.................5351Administrative costs .................................................................0002

.................313206Subtotal, commodity supplemental food program .........................0091545959TEFAP Administrative ................................................................0105212121Senior farmers' market ..............................................................0110

.................1923Farmers' market nutrition program ...........................................0115121Pacific island and disaster assistance .....................................0120

.................33NSIP (Transfer Funds) ................................................................0130











212121Appropriations transferred from other acct [012–4336] ....1221




















This account funds the Commodity Supplemental Food Program (CSFP),The Emergency Food Assistance Program (TEFAP), The Senior Farmers'Market Nutrition Program (SFMNP), assistance for the nuclear- affectedislands, and disaster relief.

CSFP provides food packages for low-income elderly persons and fundsthe State administrative expenses required to operate the program. However,because CSFP is relatively small and is duplicative of other nutrition assist-ance programs, the Budget does not continue funding for this program.TEFAP provides cash to support State administrative activities and tomaintain the storage and distribution pipeline for USDA and privately-donated commodities (TEFAP commodities are separately funded throughthe Supplemental Nutrition Assistance Program (SNAP) account). Theaccount also funds the SFMNP, which provides low-income elderly parti-cipants with vouchers to purchase produce at farmers' markets. The SeniorFarmers' Market Nutrition Program is funded by a transfer from the Com-modity Credit Corporation.

THE BUDGET FOR FISCAL YEAR 2019160 Food and Nutrition Service—ContinuedFederal Funds—Continued




21317198Supplies and materials (commodities) ......................................26.05397112Grants, subsidies, and contributions ........................................41.0


Employment Summary



✦

FOREST SERVICEFederal Funds

CAPITAL IMPROVEMENT AND MAINTENANCE


For necessary expenses of the Forest Service, not otherwise provided for,$94,708,000, to remain available through September 30, 2022, for construction,capital improvement, maintenance and acquisition of buildings and other facilitiesand infrastructure; and for construction, reconstruction and maintenance of forestroads and trails, and for decommissioning of roads that are no longer needed, in-cluding unauthorized roads that are not part of the transportation system, as author-ized by 16 U.S.C. 532–538 and 23 U.S.C. 101 and 205: Provided, That funds becom-ing available in fiscal year 2019 under the Act of March 4, 1913 (16 U.S.C. 501)shall be transferred to the General Fund of the Treasury and shall not be availablefor transfer or obligation for any other purpose unless the funds are appropriated.




Obligations by program activity:151365365Capital improvement and maintenance ....................................0001282828Capital Improvement and Maintenance (Reimbursable) ...........0801



563849Unobligated balance brought forward, Oct 1 .........................1000..................................–5Unobligated balance transfer to other accts [012–1115] ......1010.................1313Recoveries of prior year unpaid obligations ...........................1021



..................................–15Appropriations transferred to other accts [012–1106] .......1120

.................6.................Appropriations transferred from other acct [012–1115] ....1121


303028Collected ...........................................................................1700..................................–3Change in uncollected payments, Federal sources ............1701





–227–393–366Outlays (gross) ......................................................................3020.................–13–13Recoveries of prior year unpaid obligations, unexpired .........3040

103151164Unpaid obligations, end of year .................................................3050

Uncollected payments:–59–59–62Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060

..................................3Change in uncollected pymts, Fed sources, unexpired ..........3070











95368349Budget authority, net (discretionary) .........................................4070197363338Outlays, net (discretionary) .......................................................408095368349Budget authority, net (total) ..........................................................4180


The 2019 Budget requests $94,708,000 for Capital Improvement andMaintenance. Funding provides for capital improvement and maintenanceof Forest Service assets, including facilities, roads, and trails. The programemphasizes efficient and effective reinvestment and maintenance of Nation-al Forest System infrastructure that supports public and administrativeuses, and quality recreation experiences with minimal impact to ecosystemstability and conditions.

Facilities.—Provides for capital improvement and maintenance of recre-ation sites; visitor centers; fire, research, administrative, and other facilities;telecommunication sites and towers, dams, and the acquisition of buildingsand other facilities necessary to carry out the mission of the Forest Service.

Roads.—Provides for capital improvement and maintenance of the Na-tional Forest road system, including bridges and terminal facilities such asparking lots, trailhead parking, camping spurs, and truck turnarounds.Funding priorities include driver safety and resource protection, ecosystemhealth including clean water and aquatic passage, and mission-criticalneeds.

Trails.—Provides for capital improvement and maintenance of NFS trails.Funding is used to keep trails open for access and to protect vegetation,soil, and water quality.





118124124Total personnel compensation ...........................................11.924848Civilian personnel benefits ........................................................12.1222Benefits for former personnel ....................................................13.0155Travel and transportation of persons .........................................21.0222Transportation of things ............................................................22.0333Rental payments to GSA ............................................................23.1444Rental payments to others ........................................................23.2166Communications, utilities, and miscellaneous charges ............23.328282Other services from non-Federal sources ..................................25.214646Other goods and services from Federal sources ........................25.3344Operation and maintenance of facilities ...................................25.4444Operation and maintenance of equipment ................................25.7199Supplies and materials .............................................................26.0444Equipment .................................................................................31.0266Land and structures ..................................................................32.011515Grants, subsidies, and contributions ........................................41.0


161DEPARTMENT OF AGRICULTUREForest ServiceFederal Funds

CAPITAL IMPROVEMENT AND MAINTENANCE—Continued

Object Classification—Continued


.................11Adjustment for rounding ...........................................................99.5


Employment Summary


1,0281,8921,892Direct civilian full-time equivalent employment ............................1001225225225Reimbursable civilian full-time equivalent employment ...............2001414141Allocation account civilian full-time equivalent employment ........3001

✦

FOREST AND RANGELAND RESEARCH

(INCLUDING CANCELLATION)

For necessary expenses of forest and rangeland research as authorized by law,$260,800,000, to remain available through September 30, 2022: Provided, That ofthe funds provided under this heading, $75,000,000 is for the forest inventory andanalysis program, and $14,750,000 is for research activities and to make competitiveresearch grants pursuant to the Forest and Rangeland Renewable Resources Re-search Act (16 U.S.C. 1641 et seq.).

Of the unobligated balances from prior year appropriations available under thisheading for the Joint Fire Science Program, $2,000,000 are hereby permanentlycancelled.




Obligations by program activity:262324322Forest and rangeland research ..................................................0006242424Forest and Rangeland Research (Reimbursable) ......................0801



72234Unobligated balance brought forward, Oct 1 .........................1000..................................–1Unobligated balance transfer to other accts [012–1115] ......1010.................66Recoveries of prior year unpaid obligations ...........................1021




–2–1–1Unobligated balance of appropriations permanently

reduced .........................................................................1131




















The 2019 Budget requests $260,800,000 for Forest and Rangeland Re-search (Forest Service R&D). Within this funding level, $14.8 million isrequested for National Fire Plan research and development and $75 millionis requested for Forest Inventory and Analysis to continue to implementthe annualized inventory program in all 50 States (including interiorAlaska), the affiliated Pacific Islands, Puerto Rico, and the U.S. Virgin Is-lands.

Funding requested maintains an essential level of basic research associatedassociated with two components: Priority Research Areas and StrategicProgram Areas. The Priority Research Areas address national needs in sixareas: Forest Inventory and Analysis, Forest Disturbances, WatershedManagement and Restoration, Bioenergy and Biobased Products, Nano-technology, and Localized Needs Research. Strategic Program Areas includeWildland Fire and Fuels; Invasive Species; Recreation; Resource Manage-ment and Use; Water, Air, and Soil; Wildlife and Fish; and Inventory andMonitoring.

Forest Service R&D is federally mandated to provide new knowledgeand technologies to support sustainable management of the Nation's forestsand rangelands, sustain jobs, and provide environmental, social and eco-nomic benefits including healthy watersheds, forest products, wildlifeprotection, outdoor recreation, and other benefits, across all U.S. territoriesand States. Forest Service R&D accomplishes this mandate through ecolo-gical and social science research to understand ecosystems, how humansinfluence those ecosystems, and how forests can be managed sustainablyto support both environmental conservation and economic opportunities.These research products and services increase the basic biological andphysical knowledge base of the composition, structure, and function offorest and grassland ecosystems. Research is conducted at five ResearchStations, the Forest Products Laboratory, and the International Institute ofTropical Forestry. The 2019 funds outputs and products on which landmanagers depend for developing management options, strategies, andsystems for addressing current issues.





149149147Total personnel compensation ...........................................11.9345151Civilian personnel benefits ........................................................12.1777Travel and transportation of persons .........................................21.0222Transportation of things ............................................................22.0444Rental payments to GSA ............................................................23.1444Rental payments to others ........................................................23.2777Communications, utilities, and miscellaneous charges ............23.3

THE BUDGET FOR FISCAL YEAR 2019162 Forest Service—ContinuedFederal Funds—Continued

111Printing and reproduction .........................................................24.0111818Other services from non-Federal sources ..................................25.2101818Other goods and services from Federal sources ........................25.3111Operation and maintenance of facilities ...................................25.4

104040Research and development contracts .......................................25.5111Operation and maintenance of equipment ................................25.7666Supplies and materials .............................................................26.0555Equipment .................................................................................31.0




Employment Summary



✦

NATIONAL FOREST SYSTEM


For necessary expenses of the Forest Service, not otherwise provided for, formanagement, protection, improvement, and utilization of the National Forest System,and for hazardous fuels management on or adjacent to such lands, $1,719,954,000,to remain available through September 30, 2022: Provided, That of the fundsprovided under this heading, $390,000,000 shall be available for hazardous fuelsmanagement activities, of which not to exceed $15,000,000 may be used to makegrants, using any authorities available to the Forest Service under the "State andPrivate Forestry" appropriation, for the purpose of creating incentives for increaseduse of biomass from National Forest System lands: Provided further, That of thefunds provided under this heading, up to $15,000,000 may be used by the Secretaryof Agriculture to enter into procurement contracts or cooperative agreements or toissue grants for hazardous fuels management activities, and for training or monitor-ing associated with such hazardous fuels management activities on Federal land,or on non-Federal land if the Secretary determines such activities benefit resourceson Federal land: Provided further, That funds made available to implement theCommunity Forest Restoration Act, Public Law 106–393, title VI, shall be availablefor use on non-Federal lands in accordance with authorities made available to theForest Service under the "State and Private Forestry" appropriation.

GIFTS, DONATIONS AND BEQUESTS FOR FOREST AND RANGELAND RESEARCH

For expenses authorized by 16 U.S.C. 1643(b), $45,000, to remain availablethrough September 30, 2022, to be derived from the fund established pursuant tothe above Act.




Obligations by program activity:1,6101,5901,610National forest system ..............................................................0001

646464National Forest System (Reimbursable) ....................................0801




..................................–10Unobligated balance transfer to other accts [012–1115] ......1010






.................–2–2Unobligated balance of appropriations permanently

reduced .........................................................................1131

1,7201,5111,550Appropriation, discretionary (total) .......................................1160




Memorandum (non-add) entries:106.................83Unexpired unobligated balance, end of year ..........................1941
















The 2019 Budget requests $1,719,954,000 for the National Forest System(NFS) for the stewardship and management of the system's 193 millionacres of national forests and grasslands. This includes the 154 nationalforests and 20 national grasslands, located in 44 States and Puerto Rico,and managed under multiple-use and sustained-yield principles. The naturalresources of timber, minerals, range, wildlife, outdoor recreation, watershed,and soil are used in a planned combination that best meets the needs of theNation without impairing productivity of the land or damaging the envir-onment.

The 2019 Budget prioritizes funding of programs designed to increasethe health and resilience of the national forests and grasslands, while alsomeeting the multiple use requirements for the resources on our Nation'sforests and grasslands.

The request for Hazardous Fuels provides funding for treatment of haz-ardous fuels within the wildland-urban interface and highest priority areasof NFS lands, and adjacent State and private lands through prescribedburning, mechanical treatments, and other methods in order to restore foresthealth and reduce wildfire risks.

The 2019 Budget requests $240.2 million for Recreation, Heritage andWilderness. Funds for this program will be used to provide public recre-ational access to over 193 million acres of scenic lands, with more than157,000 miles of trails, 27,000 developed recreation sites, 220,000 milesof fishable streams, 122 ski areas, 380,000 heritage sites. The Forest Servicewill prioritize permitting for outfitters and guides, maintaining and growingstrong collaborations with partners and volunteer groups, and working toaddress the recreational needs of today's public, who want year-roundactivities on National Forest System lands.

The 2019 Budget requests $341.2 million for Forest Products. Funds forthis program will be used to support timber harvesting in support of the

163DEPARTMENT OF AGRICULTUREForest Service—ContinuedFederal Funds—Continued

NATIONAL FOREST SYSTEM—Continued

2019 goal of 3.7 billion board feet of timber sold. This will build towardsthe agency's goal of achieving 4.0 billion board feet sold in 2020.

The overall objective of all NFS program activities is to reestablish andretain the resilience of NFS lands, to achieve sustainable management anduse, and to provide a broad range of ecosystem services. In 2019, this in-cludes additional Budget support for Law Enforcement Operations to cleanup and reclaim illegal marijuana grow sites on NFS lands.

The 2019 Budget continues the emphasis on Forest Service programperformance and accountability agency-wide, and on delivering criticalservices more efficiently. The Forest Service business rules for accomplish-ment reporting incorporate not only directly funded work, but also accom-plishments achieved through integration between program areas or partner-ships with external groups. This effort improves performance and account-ability by shifting focus to accomplishments that naturally align with otherprograms and partner organizations to achieve multiple goals.






555Benefits for former personnel ....................................................13.0292929Travel and transportation of persons .........................................21.0141414Transportation of things ............................................................22.0151515Rental payments to GSA ............................................................23.1222222Rental payments to others ........................................................23.2303030Communications, utilities, and miscellaneous charges ............23.3333Printing and reproduction .........................................................24.0


222Operation and maintenance of facilities ...................................25.4111Research and development contracts .......................................25.5888Operation and maintenance of equipment ................................25.7

424242Supplies and materials .............................................................26.0242424Equipment .................................................................................31.0111Land and structures ..................................................................32.0




Employment Summary



1,3181,3181,318Allocation account civilian full-time equivalent employment ........3001

✦

STATE AND PRIVATE FORESTRY

(INCLUDING CANCELLATIONS)

For necessary expenses of cooperating with and providing technical and financialassistance to States, territories, possessions, and others, and for forest health man-agement, including treatments of pests, pathogens, and invasive or noxious plants,and for restoring and rehabilitating forests damaged by pests or invasive plants,cooperative forestry, and education and land conservation activities as authorized,$182,296,000, to remain available through September 30, 2022, as authorized bylaw: Provided, That of the funds provided under this heading, $65,930,000 is forNational Fire Capacity, and $11,020,000 is for Rural Fire Capacity under section10 of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2106).

Of the unobligated balances from amounts available under this heading and derivedfrom the Land and Water Conservation Fund for the Forest Legacy Program fromprojects with cost savings or failed or partially failed projects for which funds weredeobligated, $4,000,000 are hereby permanently cancelled.

Of the unobligated balances from prior year appropriations available under thisheading, the following balances are hereby permanently cancelled: $1,000,000 fromappropropriations for Landscape Scale Restoration; $2,000,000 from appropriationsfor International Forestry; and $3,000,000 from appropriations for Urban andCommunity Forestry.




Obligations by program activity:100193198State and private forestry ..........................................................0001306262Forest Legacy ............................................................................0002

130255260Total direct obligations ..................................................................0799396969State and Private Forestry (Reimbursable) ................................0801



4182137Unobligated balance brought forward, Oct 1 .........................1000..................................–20Unobligated balance transfer to other accts [012–1115] ......1010..................................23Recoveries of prior year unpaid obligations ...........................1021



.................6262Appropriation (LWCF Forest Legacy) ..................................1101



–10–15–16Unobligated balance of appropriations permanently

reduced .........................................................................1131





















Memorandum (non-add) entries:33.................Unexpired unavailable balance, SOY: Appropriations ................509633.................Unexpired unavailable balance, EOY: Appropriations ................5098

The 2019 Budget requests $182,296,000 for State and Private Forestry.State and Private Forestry programs provide technical assistance tolandowners and resource managers to help sustain forests on State andprivate lands, in both rural and urban areas, and protects communities andthe natural environment from wildland fires, tree pests and diseases, andinvasive plants. These programs also help facilitate sound resource stew-ardship by providing tools to address forest health threats on a landscapescale, while maintaining the flexibility for individual forest landowners topursue their objectives.

Forest Health Management.—Funds activities on Federal and cooperativelands to maintain healthy, productive ecosystems by preventing, detecting,and suppressing damaging native and invasive insect infestations and treediseases across all land ownership jurisdictions, and invasive plants oncooperative lands. Based on a science-based forest health risk map, the2019 Budget allocates funding to address national priorities and reducerisk for landscape damage in the most effective and efficient manner. Theagency will document changes in insect, disease, and invasive plant geo-graphic range, population dynamics of host preferences of pests, and otherchanges in pest activity, and will explore gene conservation efforts. Fundingof this program is a critical part of the Forest Service's capacity to continueto reduce the risk of catastrophic wildfires, improve water quality andquantity, and increase carbon sequestration.

Cooperative Forestry.—Funds the Working Forest Lands Program (pre-viously the Forest Stewardship Program), which provides professionalforestry assistance to landowners to encourage sound environmental man-agement of non-industrial private forest lands. Cooperative forestry activ-ities help maintain the integrity of our Nation's valuable forested landscapes,and support the Federal interest in obtaining and preserving for the publican array of social, economic, and environmental benefits from privatelyowned forests. The Forest Service will track how cooperative funds aretargeted to priority areas and themes identified in State Forest Action Plans.

Cooperative Fire Programs.—In 2019, National Fire Capacity and RuralFire Capacity programs (previously the State and Volunteer Fire Assistanceprograms, respectively) have been moved from Wildland Fire Managementto State and Private Forestry. This request includes funding for these pro-grams to enhance the capacity of States to increase the fire adaptability ofcommunities by providing funding and technical assistance to: (1) increasetheir initial attack capabilities, and (2) purchase and maintain firefightingequipment. Funding also supports training, planning, and fire prevention,and education programs.






151515Other services from non-Federal sources ..................................25.2777Other goods and services from Federal sources ........................25.3222Supplies and materials .............................................................26.0111Equipment .................................................................................31.0





Employment Summary



✦

MANAGEMENT OF NATIONAL FOREST LANDS FOR SUBSISTENCE USES

For necessary expenses of the Forest Service to manage Federal lands in Alaskafor subsistence uses under title VIII of the Alaska National Interest Lands Conser-vation Act (Public Law 96–487), $1,850,000, to remain available through September30, 2022.




Obligations by program activity:223Management of national forest lands for subsistence uses .......0001





–2–2–2Outlays (gross) ......................................................................3020





112Outlays from new discretionary authority ..........................401011.................Outlays from discretionary balances .................................4011


The 2019 Budget requests $1,850,000 for Management of National ForestLands for Subsistence Uses. Funding under this program primarily supportsfisheries and wildlife population assessments and forecasts, and the enforce-ment of harvest laws and regulations to ensure that the subsistence needsof qualified rural Alaskans are met under the Alaska National InterestLands Conservation Act (Public Law 96–487).



Direct obligations:111Personnel compensation: Full-time permanent .........................11.1111Other services from non-Federal sources ..................................25.2

222Direct obligations ..................................................................99.0..................................1Adjustment for rounding ...........................................................99.5



MANAGEMENT OF NATIONAL FOREST LANDS FOR SUBSISTENCE USES—Continued

Employment Summary



✦

WILDLAND FIRE MANAGEMENT

(INCLUDING TRANSFERS AND CANCELLATION OF FUNDS)

For necessary expenses for forest fire presuppression activities on National ForestSystem lands, for emergency wildland fire suppression on or adjacent to such landsor other lands under fire protection agreement, emergency rehabilitation of burned-over National Forest System lands and water, $2,504,986,000, to remain availablethrough September 30, 2022: Provided, That such funds, including unobligatedbalances under this heading, are available for repayment of advances from otherappropriations accounts previously transferred for such purposes: Provided further,That any unobligated funds appropriated in a previous fiscal year for hazardousfuels management may be transferred to the "National Forest System" account:Provided further, That such funds shall be available to reimburse State and othercooperating entities for services provided in response to wildfire and other emergen-cies or disasters to the extent such reimbursements by the Forest Service for non-fire emergencies are fully repaid by the responsible emergency management agency:Provided further, That the costs of implementing any cooperative agreement betweenthe Federal Government and any non-Federal entity may be shared, as mutuallyagreed on by the affected parties: Provided further, That the Secretary of the Interiorand the Secretary of Agriculture may authorize the transfer of funds appropriatedfor wildland fire management, in an aggregate amount not to exceed $50,000,000,between the Departments when such transfers would facilitate and expedite wildlandfire management programs and projects: Provided further, That funds designatedfor wildfire suppression shall be assessed for cost pools on the same basis as suchassessments are calculated against other agency programs: Provided further, Thatof the amounts appropriated under this heading for acquiring aircraft for the next-generation airtanker fleet in title III of division F of Public Law 113–235,$65,000,000 are hereby permanently cancelled.




Obligations by program activity:2,7932,7933,983Wildland fire management ........................................................0001

535371Wildland Fire Management (Reimbursable) ..............................0801



681247164Unobligated balance brought forward, Oct 1 .........................1000..................................148Unobligated balance transfer from other acct [012–1120] ....1011..................................5Unobligated balance transfer from other acct [012–1103] ....1011..................................1Unobligated balance transfer from other acct [012–1104] ....1011..................................10Unobligated balance transfer from other acct [012–1106] ....1011..................................25Unobligated balance transfer from other acct [012–9923] ....1011..................................20Unobligated balance transfer from other acct [012–1105] ....1011..................................304Unobligated balance transfer from other acct [012–9921] ....1011.................150193Recoveries of prior year unpaid obligations ...........................1021


Appropriations, discretionary:1,3401,5752,833Appropriation - Preparedness and Other Operations .........11001,1651,240.................Appropriation - Suppression .............................................1100

.................185.................Appropriation [PL 115–72] ................................................1100



.................–6.................Appropriations transferred to other acct [012–1103] ........1120





reduced .........................................................................1131

2,4402,9553,181Appropriation, discretionary (total) .......................................1160






8711,3721,120Unpaid obligations, brought forward, Oct 1 ..........................30002,8462,8464,054New obligations, unexpired accounts ....................................3010

–2,935–3,197–3,609Outlays (gross) ......................................................................3020.................–150–193Recoveries of prior year unpaid obligations, unexpired .........3040

7828711,372Unpaid obligations, end of year .................................................3050Uncollected payments:



7661,2671,014Obligated balance, start of year ............................................31006777661,267Obligated balance, end of year ..............................................3200



2,3382,8132,495Outlays from new discretionary authority ..........................40105973841,114Outlays from discretionary balances .................................4011







The 2019 Budget requests $2,504,986,000 for Wildland Fire Management(WFM) for Forest Service fire preparedness and fire suppression operationson National Forest System (NFS) lands, adjacent State and private lands,and other lands under fire protection agreements.

Preparedness.—The purpose is to ensure agency capability to protectlife, property, and natural resources through an appropriate initial attackresponse to wildfires that is consistent with land and resource managementobjectives. Firefighter and public safety are the primary considerations forall operations.

Preparedness provides for fire management assets that protect NFS lands,and other Federal, State, and private lands from damaging wildfires, thusreducing threats to life and values at risk commensurate with land manage-ment objectives in the National Cohesive Wildland Fire ManagementStrategy. Key components of the wildland fire response mission deliveryare readiness capability and program leadership necessary to ensure appro-priate, risk informed, and effective operations. Preparedness also supportsother vital elements of a comprehensive wildland fire management program,including modernization of the large airtanker fleet, planning, prevention,development of information technology and decision support systems,training and education, development and advancement of firefightingtechnology, and organizational learning through program analysis and re-view.

Through this program, the Forest Service also assists other Federalagencies and States with planning assistance, sharing joint equipment usecontracts and interagency fire coordination centers. Readiness levels reflectimprovements in efficiencies and management controls, including predictiveservices analysis of fire season potential to strategically deploy firefightingresources, web-based wildfire decision support tools, centralized manage-


ment of aviation assets, optimizing dispatch analysis, and streamlining in-formation technology investments.

Suppression.—Provides for risk-informed extended attack suppressionand large fire support operations at wildland fires on or threatening NFSlands, other Federal lands, and 20 million acres of non-Federal lands underfire protection agreements. The 2019 Budget proposes funding 100 percentof the 10-year average of suppression expenditures. The Budget also pro-poses to amend the Balanced Budget and Emergency Deficit Control Actto establish a separate annual cap adjustment for wildfire suppression op-erations, similar to how unanticipated funding needs for other natural dis-asters are addressed. This cap adjustment will help ensure that adequateresources are available to the Departments of Agriculture and the Interiorto fight wildland fires, protect communities, and safeguard human lifeduring the most severe wildland fire seasons. The cap adjustment Budgetrequest is in a new account, the Wildfire Suppression Operations Fund, atthe end of the Federal Funds section in the Other Independent Agencieschapter.

Wildfires continue to be larger and more difficult to suppress due to theeffects of persistent drought, hazardous fuel conditions, and the ongoinggrowht of residential and commercial development adjacent to fire-proneareas in the wildland-urban interface (WUI). The Forest Service recognizesthe costs of WUI suppression activities, and will continue to aggressivelypursue management improvements, including:

— using risk-informed, performance-based suppression strategies,— clarifying roles and responsibilities in the WUI,— using appropriate cost-share agreements and pursuing 100 percent

cost recovery from Federal, State, and local entities, and— deploying decision support tools.

The Suppression program also funds Burned Area Emergency Response(BAER) activities, which address situations where life, property, waterquality, and deteriorated ecosystems may be further threatened from damagepost-fire. The BAER program provides for immediate emergency post-fireresponse to manage unacceptable risks to people and resources triggeredby the changed conditions to the landscape in the aftermath of a fire.

Development of necessary governance and risk management protocolsto guide program management and incident response with the applicationof resources to reduce unnecessary risk to firefighter safety in the short-term, and increase the long-term resilience of fire-adapted ecosystems, willcontinue to be a focus. The Forest Service will also continue efforts to allowfire to return to the landscape when it will improve the health of the forest,when risks to community safety make it appropriate to do so.

Forest Service Suppression Obligations 2008–2017

(dollars in thousands)Rolling10-yearAverage

AdjustedObligations[2017 =1.00]

Net NominalSuppressionObligations

Year

$1,170,838$1,101,0832008 .........................................................................................................591,994523,3832009 .........................................................................................................464,977412,3232010 .........................................................................................................970,328873,4422011 .........................................................................................................

1,352,3921,243,7402012 .........................................................................................................1,213,8491,140,1162013 .........................................................................................................1,011,802964,3392014 .........................................................................................................1,492,7431,443,3692015 .........................................................................................................1,373,8161,347,1362016 .........................................................................................................

1,165,3862,010,9202,010,9202017 .........................................................................................................

Note: The 10-year average was rebaselined in 2018 to account for theshift in "Base 8" salary hours from Suppression to Preparedness. Base 8is a short-hand term used to describe the first eight hours per day workedby a firefighter. Based on this change and adherence to established businessrules, actual obligations for 2008–2017 have been adjusted, and the base8 expenditures from those years were removed from the 10-year averagesuppression expenditure calculation.





319319319Other personnel compensation ..............................................11.5818181Special personal services payments ......................................11.8

1,0681,0681,068Total personnel compensation ...........................................11.9352352352Civilian personnel benefits ........................................................12.1292929Benefits for former personnel ....................................................13.0999999Travel and transportation of persons .........................................21.0191919Transportation of things ............................................................22.0171717Rental payments to GSA ............................................................23.1363636Rental payments to others ........................................................23.2464646Communications, utilities, and miscellaneous charges ............23.3111Printing and reproduction .........................................................24.0777Advisory and assistance services ..............................................25.1

5245241,524Other services from non-Federal sources ..................................25.2200200231Other goods and services from Federal sources ........................25.3

111Operation and maintenance of facilities ...................................25.4888Operation and maintenance of equipment ................................25.7


218218377Grants, subsidies, and contributions ........................................41.0111Insurance claims and indemnities ............................................42.0



Employment Summary



✦

FLAME WILDFIRE SUPPRESSION RESERVE FUND





..................................148Unobligated balance brought forward, Oct 1 .........................1000

..................................–148Unobligated balance transfer to other accts [012–1115] ......1010Budget authority:

Appropriations, discretionary:..................................342Appropriation [PL 114–113] ..............................................1100.................342.................Appropriation [PL 115–72] ................................................1100..................................–392Appropriations transferred to other accts [012–1115] .......1120.................–301.................Appropriations transferred to other acct [012–9921] ........1120.................–16.................Appropriations transferred to other acct [012–1105] ........1120.................–25.................Appropriations transferred to other acct [012–9923] ........1120..................................50Appropriations transferred from other acct [014–1127] ....1121...................................................Budget authority, net (total) ..........................................................4180...................................................Outlays, net (total) ........................................................................4190

From 2010 through 2017, amounts in the FLAME Fund included theportion of the ten-year average of suppression obligations, adjusted forinflation, intended to support the most severe, complex, and threateningfires. The Secretary is authorized to permit transfers from this account tocover these extreme fire events. The Secretary may also transfer funds inthe event the Forest Service has exhausted its suppression resources dueto an active fire season. In 2019, the Budget proposes to discontinuefunding requests in the FLAME account. The Budget proposed to fund thefull ten-year suppression average in the Wildland Fire Management account.The FLAME account will be closed out when the current balance is drawndown. The Budget also proposes to amend the Balanced Budget and


FLAME WILDFIRE SUPPRESSION RESERVE FUND—Continued

Emergency Deficit Control Act to establish a separate annual cap adjustmentfor wildfire suppression operations, similar to how unanticipated fundingneeds for other natural disasters are addressed. This cap adjustment willhelp ensure that adequate resources are available to the Departments ofAgriculture and the Interior to fight wildland fires, protect communities,and safeguard human life during the most severe wildland fire seasons.The cap adjustment Budget request is in a new account, the Wildfire Sup-pression Operations Fund, at the end of Federal Funds section of the OtherIndependent Agencies chapter.

✦

RANGE BETTERMENT FUND

For necessary expenses of range rehabilitation, protection, and improvement, 50percent of all moneys received during the prior fiscal year, as fees for grazing do-mestic livestock on lands in National Forests in the 16 Western States, pursuant tosection 401(b)(1) of Public Law 94–579, to remain available through September30, 2022, of which not to exceed 6 percent shall be available for administrative ex-penses associated with on-the-ground range rehabilitation, protection, and improve-ments.





Current law:334Receipts, Cooperative Range Improvements .........................1130


Current law:–2–2–4Range Betterment Fund ........................................................2101




Obligations by program activity:223Range betterment fund .............................................................0001



Appropriations, discretionary:224Appropriation (special or trust fund) .................................1101445Total budgetary resources available ..............................................1930



.................11Unpaid obligations, brought forward, Oct 1 ..........................3000223New obligations, unexpired accounts ....................................3010

–2–3–3Outlays (gross) ......................................................................3020

..................................1Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

.................11Obligated balance, start of year ............................................3100

..................................1Obligated balance, end of year ..............................................3200





The 2019 Budget request is $1,700,000 for the Range Betterment Fund,and is commensurate with expected grazing fee receipts. Fifty percent offees from permitted grazing on national forests in 16 western States, onceappropriated, are used to protect and improve rangeland productivity,primarily through revegetation, and construction, reconstruction, andmaintenance of rangeland improvements under the authority of the FederalLand Policy and Management Act of 1976 (43 U.S.C. 1751), as amended.This program emphasizes essential structural and non-structural improve-ments prescribed in grazing allotment management plans and other projectplans as developed according to the National Environmental Policy Act.Treatment of invasive plant species related to permitted livestock usecontinues to be a priority for non-structural rangeland improvement work.



Direct obligations:..................................1Other services from non-Federal sources ..................................25.2

222Supplies and materials .............................................................26.0

223Direct obligations ..................................................................99.0


Employment Summary



✦

STEWARDSHIP CONTRACTING PRODUCT SALES



Obligations by program activity:131313Stewardship contracting ...........................................................0001




..................................1Appropriation (previously unavailable) .............................1203







–19–18–12Outlays (gross) ......................................................................3020








Stewardship Contracting.—The Forest Service may enter into stewardshipagreements or contracts for projects to achieve land management goals andmeet local and rural community needs. Stewardship contracting productsales enable the Forest Service to apply the value of timber or other forestproducts from stewardship sales as an offset against the costs to accomplishland and resource management objectives. If the offset value of timber orother forest products exceeds the value of the resource improvementtreatments, those sales receipts are retained and deposited in the StewardshipContracting Fund, and are available until expended for other authorizedstewardship projects. This authority was reauthorized permanently, pursuantto P.L. 113–79, Agricultural Act of 2014.



Direct obligations:999Other services from non-Federal sources ..................................25.2333Grants, subsidies, and contributions ........................................41.0

121212Direct obligations ..................................................................99.0111Adjustment for rounding ...........................................................99.5


✦

LAND ACQUISITION

(CANCELLATION)

Of the unobligated balances available under this heading that were derived fromthe Land and Water Conservation Fund, $17,000,000 are hereby permanently can-celled.

ACQUISITION OF LANDS FOR NATIONAL FORESTS SPECIAL ACTS

For acquisition of lands within the exterior boundaries of the Cache, Uinta, andWasatch National Forests, Utah; the Toiyabe National Forest, Nevada; the Angeles,San Bernardino, Sequoia, and Cleveland National Forests, California; and the Ozarkand Ouachita National Forests, Arkansas, as authorized by law, $700,000, to bederived from forest receipts.

ACQUISITION OF LANDS TO COMPLETE LAND EXCHANGES

For acquisition of lands, such sums, to be derived from funds deposited by State,county, or municipal governments, public school districts, or other public schoolauthorities, and for authorized expenditures from funds deposited by non-Federalparties pursuant to Land Sale and Exchange Acts, pursuant to the Act of December4, 1967 (16 U.S.C. 484a), to remain available through September 30, 2022 (16U.S.C. 516–617a, 555a; Public Law 96–586; Public Law 76–589, 76–591; andPublic Law 78–310).




436Balance, start of year ....................................................................0100...................................................Rounding adjustment ....................................................................0198


Current law:

11–1Deposits, Acquisitions of Lands for National Forests, Special

Acts ...................................................................................1130

323Land Acquisition Proceeds for Exchanges, Acquisition of Lands

to Complete Land Exchanges ............................................1130

11.................Facility Realignment and Enhancement Receipts, Acquisition

of Lands to Complete Land Exchanges ..............................1130

..................................1Rounding adjustment ............................................................1198


543Total receipts .............................................................................1999


Current law:–1–1.................Land Acquisition ...................................................................2101

–2–2–4Land Acquisition ...................................................................2101..................................1Rounding adjustment ............................................................2198


–3–3–3Total appropriations ..................................................................2999..................................–3Reconciliation adjustment .............................................................5098




Obligations by program activity:77449Land Acquisition (12X5004 LALW) Discretionary .......................0001

444Land Facilities Enchancement (12X5216 EXSC/SL)

Mandatory .............................................................................0002

111Land Acquisition - Special Acts (12Y5208) Discretionary ..........0003



504659Unobligated balance brought forward, Oct 1 .........................1000.................1830Discretionary unobligated balance brought fwd, Oct 1 ......1001..................................–25Unobligated balance transfer to other accts [012–1115] ......1010..................................7Recoveries of prior year unpaid obligations ...........................1021


Appropriations, discretionary:

.................5555Appropriation: Land Acquisition (12X5004) and

(12–5216) ....................................................................1101

11.................Appropriation: Special Acts (12Y5208) .............................1101


reduced .........................................................................1131

–165655Appropriation, discretionary (total) .......................................1160Appropriations, mandatory:

224Appropriation (12X5216 EXSC EXSL) .................................1201.................25.................Appropriations transferred from other acct [012–1120] ....1221

2274Appropriations, mandatory (total) .........................................1260–148359Budget authority (total) .............................................................190036129100Total budgetary resources available ..............................................1930


Special and non-revolving trust funds:111Expired unobligated balance, start of year ............................1952111Expired unobligated balance, end of year ..............................1953








–164220Outlays from new discretionary authority ..........................4010221426Outlays from discretionary balances .................................4011



.................5.................Outlays from new mandatory authority .............................410014811Outlays from mandatory balances ....................................4101


The 2019 Budget requests $850,000 for the Land Acquisition accounts.This heading consolidates land acquisition authorities for acquisition oflands, waters, or interest therein, as authorized by law.

Land Acquisition.—The Budget does not request funding for land acquis-ition with funds derived from the Land and Water Conservation Fund.


LAND ACQUISITION—Continued

Acquisition of Lands for National Forests, Special Acts.—To acquirelands within critical watersheds to provide soil stabilization and restorationof vegetation. Public Laws 76–589, 76–591 and 78–310 (54 Stat. 297, 298,299, and 402; and 58 Stat. 227–228) authorize appropriations for the pur-chase of lands within the following national forests: the Cache, Uinta, andWasatch, in Utah; the Toiyabe, in Nevada; the Angeles, Cleveland, SanBernardino, and Sequoia, in California; and the Ozark and Ouachita, inArkansas. Appropriations are made from receipts on these national forests.

Acquisition of Lands to Complete Land Exchanges.—Deposits are madeby State, county, or municipal governments, public school authorities, ornon-Federal parties, and are used to acquire lands for the National ForestSystem or other authorized purposes.



Direct obligations:.................55Personnel compensation: Full-time permanent .........................11.1.................22Civilian personnel benefits ........................................................12.1

411Other services from non-Federal sources ..................................25.2411Other goods and services from Federal sources ........................25.336843Land and structures ..................................................................32.0111Grants, subsidies, and contributions ........................................41.0

127853Direct obligations ..................................................................99.0.................11Adjustment for rounding ...........................................................99.5


Employment Summary


.................6363Direct civilian full-time equivalent employment ............................1001333333Allocation account civilian full-time equivalent employment ........3001

✦

FOREST SERVICE PERMANENT APPROPRIATIONS



88136189Balance, start of year ....................................................................0100..................................–97Reconciliation adjustment .............................................................0198


Current law:..................................9National Forests Fund ...........................................................1130

565658National Forests Fund, Payments to States ...........................1130222Timber Roads, Purchaser Elections .......................................1130

1717.................National Forests Fund, Roads and Trails for States ...............1130382939Timber Salvage Sales ............................................................1130888Deposits, Brush Disposal ......................................................1130

10109Rents and Charges for Quarters, Forest Service ....................1130777Timber Sales Pipeline Restoration Fund ................................1130

6569100Recreational Fee Demonstration Program, Forest Service ......113011.................Midewin National Tallgrass Prairie Rental Fees .....................1130

555Charges, User Fees, and Natural Resource Utilization, Land

between the Lakes, Forest Service .....................................1130

222Administration of Rights-of-way and Other Land Uses .........1130171415Funds Retained, Stewardship Contracting Product Sales .......1130212133National Grasslands ..............................................................1130111138Miscellaneous Special Funds, Forest Service .........................1130


260252325Total receipts .............................................................................1999


Current law:–17–14–15Stewardship Contracting Product Sales ................................2101

–276–276–284Forest Service Permanent Appropriations ..............................2101..................................–1Stewardship Contracting Product Sales ................................2103

–9–11–10Forest Service Permanent Appropriations ..............................2103.................11Stewardship Contracting Product Sales ................................2132

1.................19Forest Service Permanent Appropriations ..............................2132


–301–300–290Total appropriations ..................................................................2999..................................9Reconciliation adjustment .............................................................5098




Obligations by program activity:212121Brush disposal (5206) ...............................................................0001585857Restoration of Forest Lands and Improvements (5215) .............0002

938993Recreation fee demonstration / enhancement programs

(5268) ...................................................................................0003

585853Timber Salvage Sale program (5204) ........................................0005

131718Timber Pipeline Restoration fund (includes forest botanical

products) (5264) ...................................................................0006

..................................1Midewin Tallgrass Prairie funds (5277) .....................................0008888Operation and maintenance of quarters (5219) ........................0009444Land between the lakes management fund (5360) ...................0010

222Administration of rights-of-way and other land uses (5361 -

URRF, URMN) .........................................................................0012

547676Secure Rural Schools - National Forest Fund (5201) .................0013666Payments to Minnesota (5213) ..................................................0015

282814Payments to Counties - National Grasslands (5896) .................0016

345367353Total direct obligations ..................................................................0799555Admin rights of way - Reimbursable program (5361 - URMJ) ....0801



566351726Unobligated balance brought forward, Oct 1 .........................1000..................................–304Unobligated balance transfer to other accts [012–1115] ......1010

111Unobligated balance transfer from other acct [014–1618] ....1011.................55Recoveries of prior year unpaid obligations ...........................1021


Appropriations, discretionary:–15–15.................Appropriations permanently reduced ................................1130


91110Appropriation (previously unavailable) .............................1203.................301.................Appropriations transferred from other acct [012–1120] ....1221.................4.................Appropriations transferred from other acct [012–1115] ....1221

–1.................–19Appropriations and/or unobligated balance of



446Collected ...........................................................................1800273581281Budget authority (total) .............................................................1900840938709Total budgetary resources available ..............................................1930








–15–15.................Budget authority, gross .........................................................4000Outlays, gross:

–15–15.................Outlays from new discretionary authority ..........................4010Mandatory:




Offsetting collections (collected) from:–4–4–6Non-Federal sources .........................................................4123269577275Budget authority, net (total) ..........................................................4180



Brush Disposal.—Funds from payments by purchasers of National Foresttimber are used to dispose of or treat slash and other debris resulting fromcutting operations (16 U.S.C. 490).

Restoration of Forest Lands and Improvements.—Funds from a) forfeitureof deposits and bonds by permittees or timber purchasers for failure tocomplete performance of improvement, protection, or rehabilitation workrequired under the permit or timber sale contract; or b) the result of ajudgment, compromise, or settlement of any claim, involving present orpotential damage to lands or improvements are used for the improvement,protection, or rehabilitation of lands under the administration of the ForestService (16 U.S.C. 579c).

Recreation Fees, Forest Service (also referred to as the Federal LandsRecreation Enhancement Fund).—Fees collected from users of recreationfacilities are used to pay for on-the-ground operation, maintenance, andimprovement of recreation sites and services to maintain and enhance re-creation opportunities, visitor experiences, and related habitat. (16 U.S.C.6806 et seq.). The Administration proposes a permanent extension of therecreation fee program under the Federal Lands Recreation EnhancementAct, which is set to expire on September 30, 2019.

Timber Purchaser Election Roads Construction.—Funds from timberreceipts are used to construct or reconstruct roads for purchasers of timberwho qualify as small businesses and elect to have the Forest Service con-struct the roads designated under the timber sale contract (16 U.S.C.472a(i)).

Timber Salvage Sales.—Funds are used for salvage of insect-infested,dead, damaged, or down timber, and to remove associated trees for standimprovement (16 U.S.C. 472a(h)).

Timber Sales Pipeline Restoration Fund.—Funds are used for the prepar-ation of timber sales and funding the backlog of recreation projects onNational Forest System lands (16 U.S.C 1611 note).

Forest Botanical Products.—Fees are based on the fair market value forthe sale of forest botanical products and cover the costs of analyzing,granting, modifying, or administering the authorization for harvesting, in-cluding the costs for environmental analyses (16 U.S.C. 528 note).

Midewin National Tallgrass Prairie funds.—Funds collected throughuser and rental fees (Public Law 104–106, Div. B, [Title XXIX, sec. 2915(b) through (f)], Feb. 10, 1996, 110 Stat. 601) can be used as follows:

Midewin National Tallgrass Prairie Rental Fees.—Available receiptsfrom rental fees may be used to cover the cost of ecosystem restoration,prairie improvements, and directly related administrative activities at theMidewin National Tallgrass Prairie.

Midewin National Tallgrass Prairie Restoration Fund.—Receipts fromgrazing fees, agricultural leases for row crops, sales of surplus equipment,and proceeds from the sale of any facilities and improvements can be usedto cover the cost of restoration of ecosystems; construction of a visitorcenter, recreational facilities, trails, and administrative office; prairie im-provement; and operation and maintenance.

Operation and Maintenance of Quarters.—Quarters rental deductionsare collected from employees occupying Forest Service housing facilitiesand are available for the maintenance and operation of employee-occupiedquarters (5 U.S.C. 5911).

Land Between the Lakes Management Fund.—Amounts received fromcharges, user fees and natural resource use on the Land Between the LakesNational Recreation Area (LBLNRA) are deposited into this fund and areavailable for the management of the LBLNRA, including salaries, and ex-penses (16 U.S.C. 460lll–24) (P.L. 105–277, div. A, Sec. 101(e) [title V,Sec. 524], Oct. 21, 1998, 112 Stat. 2681–315).

Administration of Rights-of-Way Program (Cost Recovery Lands MinorProjects), including the Reimbursable Program (Cost Recovery LandsMajor Projects).—Fees collected from applicants and holders of specialuse authorizations are available to pay for processing applications andmonitoring compliance with special use authorizations. (31 U.S.C. 9701;43 U.S.C. 1764(g); 30 U.S.C. 815(1); P.L. 82–137; P.L. 66–146; P.L.

94–579; 113 Stat. 1501A-196197 as amended by 118 Stat. 3105; 119 Stat.555 and P.L. 110–161; 16 U.S.C. 46016d; 117 Stat. 294–297). This fundalso includes:

Commercial Filming.—Collection of fees from commercial filming andstill photography permits for maintenance of the filming site. (16 U.S.C.460l–6d) (P.L. 106–206).

Organizational Camps.—Collection of land use fees from organizationalcamps located on National Forest System lands. (16 U.S.C. 6231 et seq.)(P.L. 108–7).

Secure Rural Schools and Community Self-Determination Act.—TheSecure Rural Schools act has expired; therefore, authority for payments toStates reverts to the original revenue sharing program under Twenty-fivePercent Fund Act of 1908, as amended (16 U.S.C. 500) which requires,with a few exceptions, that 25 percent of all monies received from the na-tional forests during a fiscal year from timber, grazing, special-use permits,power and mineral leases, and admission and user fees be deposited intothe National Forest Fund and be paid to the States for public schools andpublic roads in the counties in which the national forests are located.

Payment to Minnesota.—The State of Minnesota is paid 0.75 percent ofthe appraised value of certain Superior National Forest lands in the countiesof Cook Lake and St. Louis for distribution to these counties (16 U.S.C.577g).

Payments to Counties, National Grasslands.—This program annuallyprovides 25 percent of net revenues from the use of Title III-Bankhead-Jones Acquired Lands to counties in which Title III-Bankhead-Jones Ac-quired Lands are located for funding public schools and roads. (7 U.S.C.1012).

Roads and Trails (10 Percent) Fund.—10 percent of all National ForestFund receipts received by the Forest Service are used to repair or reconstructroads, bridges, and trails on NFS lands to correct road and trail deficienciesthat adversely affect ecosystems. Since FY 2008, Congress has directedthat funds becoming available be transferred to Treasury.

Licensee Program.—Funds from fees for the use of characters by privateenterprises are collected under regulations promulgated by the Secretary.The licensee program includes Smokey Bear to further the nationwideforest fire prevention campaign (16 U.S.C. 580p(2)) and Woodsy Owl topromote wise use of the environment (16 U.S.C. 580p(1)).

Quinault Special Management Area.—The Forest Service manages thenatural resources and distributes proceeds from the sale of forest productsin the Quinault Special Management Area of the Olympic National Forestbetween the State of Washington (45 percent), the Quinault Tribe (45 per-cent) and the Quinault Special Management Area fund (10 percent) for useby the Olympic National Forest to administer future timber sales. (P.L.100–638) (102 Stat. 3327).

Hardwood Technology Transfer and Applied Research Fund.—Fundscollected from leasing the Wood Education and Research Center (WERC)wood shop and rough mill under a special use permit are available for themanagement and operation of the WERC and the payment of salaries andexpenses (P.L. 106–113, div. B, 1000(a)(3) [Title III, 332], Nov. 29, 1999,113 Stat. 1535, 1501A197).

Site-specific Lands Acts.—This program enables the collection of receiptsfrom the sale of National Forest System land pursuant to special acts passedby Congress. The proceeds are used for specific improvements to landsand facilities within the same national forest or State. (16 U.S.C. 484a;P.L. 90–171).







FOREST SERVICE PERMANENT APPROPRIATIONS—Continued

Object Classification—Continued


111Benefits for former personnel ....................................................13.0222Travel and transportation of persons .........................................21.0111Transportation of things ............................................................22.0111Rental payments to others ........................................................23.2222Communications, utilities, and miscellaneous charges ............23.3111Printing and reproduction .........................................................24.0

939693Other services from non-Federal sources ..................................25.2141414Other goods and services from Federal sources ........................25.3111Operation and maintenance of equipment ................................25.7

131313Supplies and materials .............................................................26.0333Equipment .................................................................................31.0111Land and structures ..................................................................32.0




Employment Summary



✦

WORKING CAPITAL FUND



Obligations by program activity:255255255Working capital fund .................................................................0801




Spending authority from offsetting collections, discretionary:250250286Collected ...........................................................................1700450455460Total budgetary resources available ..............................................1930













–250–250–286Offsets against gross budget authority and outlays (total) ....40403533–45Outlays, net (discretionary) .......................................................4080

...................................................Budget authority, net (total) ..........................................................41803533–45Outlays, net (total) ........................................................................4190

The Working Capital Fund is a self-sustaining revolving fund thatprovides services to national forests, research experiment stations, otherFederal agencies when necessary, State and private agencies as providedby law, and to persons who cooperate with the Forest Service in fire controland other authorized programs. Forestry-related supply and support servicesinclude:

Equipment Services.—The Fund owns, operates, maintains, replaces, andrepairs common-use, motor-driven, and similar equipment. This equipmentis rented to administrative units including national forests, research exper-iment stations, other Forest Service units, and to other federal and non-federal agencies, at rates which recover the cost of operation, repair andmaintenance, management, and depreciation. The rental rates include anincremental charge which, when added to depreciation and residual value, provides sufficient funds to finance equipment replacement costs.

Aircraft Services.—The Fund operates, maintains, and repairs ForestService-owned aircraft used in fire surveillance and suppression, and inother Forest Service programs. Aircraft replacement costs are financedfrom either appropriated funds or the Forest Service Working Capital Fund,or a combination of both.

Supply Services.—The Fund operates the following common services,and provides for cost-recovery of Working Capital Fund Program Manage-ment: photo reproduction laboratories that store, reproduce, and supplyaerial photographs, aerial maps, and other photographs of national forestlands. Photographic reproductions are sold to national forests, researchexperiment stations, and others at cost. Sign shops manufacture specialsigns for the national forests for use in regulating traffic and as informationto the public and other users of the national forests. These signs are soldto national forests and research experiment stations at cost.

Nurseries.—The Fund operates seed supply services that provide treeseeds for direct seeding or sowing in nurseries for the production of trees.Activities include purchase or collection of cones, extraction of seeds,cleaning and testing, and storage and delivery. The fund operates in con-junction with forest tree nurseries and cold storage facilities for storage oftree seedlings. Tree seedlings are sold to national forests, State foresters,and other cooperators at cost.





424242Total personnel compensation ...........................................11.9171717Civilian personnel benefits ........................................................12.1222Travel and transportation of persons .........................................21.0888Transportation of things ............................................................22.0444Communications, utilities, and miscellaneous charges ............23.3111Printing and reproduction .........................................................24.0


343434Operation and maintenance of equipment ................................25.7414141Supplies and materials .............................................................26.0848484Equipment .................................................................................31.0111Grants, subsidies, and contributions ........................................41.0


Employment Summary



✦


Trust Funds

FOREST SERVICE TRUST FUNDS



.................610Balance, start of year ....................................................................0100Receipts:

Current law:

303030Transfers from General Fund of Amounts Equal to Certain

Customs Duties, Reforestation Trust Fund ........................1110

677085Forest Service Cooperative Fund ............................................1130


97100115Total receipts .............................................................................1999


Current law:–91–100–115Forest Service Trust Funds .....................................................2101–6–6–10Forest Service Trust Funds .....................................................2103

..................................6Forest Service Trust Funds .....................................................2132



..................................6Balance, end of year ..................................................................5099



Obligations by program activity:9393230Cooperative work trust fund (8028 - CWKV/K2) .........................0001151515Cooperative work advance payments (8028 - CWF2) .................0002272731Reforestation trust fund (8046 - RTRT) .....................................0003

135135276Total direct obligations ..................................................................0799282828Reimbursable program-coop work other (8028 - CWFS) ............0801



149183340Unobligated balance brought forward, Oct 1 .........................1000.................88Recoveries of prior year unpaid obligations ...........................1021


Appropriations, mandatory:91100115Appropriation (special or trust fund) .................................12016610Appropriation (previously unavailable) .............................1203




151521Collected (CWFS) ...............................................................1800..................................–1Change in uncollected payments, Federal sources ............1801












616535Outlays from new mandatory authority .............................4100



Offsetting collections (collected) from:–15–15–21Non-Federal sources .........................................................4123

Additional offsets against gross budget authority only:..................................1Change in uncollected pymts, Fed sources, unexpired .......4140

97106119Budget authority, net (mandatory) ............................................4160171177255Outlays, net (mandatory) ...........................................................417097106119Budget authority, net (total) ..........................................................4180


Memorandum (non-add) entries:666Total investments, SOY: Federal securities: Par value ...............5000666Total investments, EOY: Federal securities: Par value ...............5001

Cooperative Work Trust Fund-Knutson Vandenberg.—Funds, includingdeposits from purchasers of timber, are received and used for specifiedwork in forest investigations, and for protection, and improvement of theNational Forest System, including protection, reforestation, and adminis-tration of private lands adjacent to National Forests (7 U.S.C. 2269; 16U.S.C. 498, 535, 572, 572a, 576b, 1643; and 31 U.S.C. 1321).

Cooperative Work Trust Fund-Advanced Payments (Non-AgreementBased).—This fund is used to collect deposits received from partners andcooperators for protecting and improving resources of the National ForestSystem as authorized by permits or sale contracts. Within this fund, depositsfrom multiple contributors can be pooled to support a wide variety ofactivities that benefit programs in Forest and Rangeland Research, on Na-tional Forest System lands, and for other agency activities. There are mul-tiple statutes that authorize this fund including 16 U.S.C. 572 and 31 U.S.C.1321.

Reforestation Trust Fund.—Amounts from this account are used for re-forestation and timber stand improvement (16 U.S.C. 1606a(d)).

Cooperative Work Trust Fund-Reimbursable Program (AgreementBased).—This fund is used to collect deposits received from partners andcooperators for protecting and improving resources of the National ForestSystem as authorized by cooperative agreements. Deposited funds supporta wide variety of activities that benefit and support programs in Forest andRangeland Research, on National Forest System lands, and for other agencyactivities. There are multiple statutes that authorize this fund including 16U.S.C. 498, 16 U.S.C. 532–537, and 31 U.S.C. 1321.

Land Between the Lakes Trust Fund.—Interest earned from funds trans-ferred by the Tennessee Valley Authority is available for public education,grants, recreation internships, conservation and multiple-use managementof the Land Between the Lakes. Annual trust fund earnings and programexpenditures are less than $1 million (16 U.S.C. 460lll–31).







101010Supplies and materials .............................................................26.0111Equipment .................................................................................31.0777Grants, subsidies, and contributions ........................................41.0


..................................1Adjustment for rounding ...........................................................99.5


173DEPARTMENT OF AGRICULTUREForest Service—Continued

Trust Funds

FOREST SERVICE TRUST FUNDS—Continued

Employment Summary



✦

ADMINISTRATIVE PROVISIONS—FOREST SERVICE


Appropriations to the Forest Service for the current fiscal year shall be availablefor: (1) purchase of passenger motor vehicles; acquisition of passenger motorvehicles from excess sources, and hire of such vehicles; purchase, lease, operation,maintenance, and acquisition of aircraft to maintain the operable fleet for use inForest Service wildland fire programs and other Forest Service programs; notwith-standing other provisions of law, existing aircraft being replaced may be sold, withproceeds derived or trade-in value used to offset the purchase price for the replace-ment aircraft; (2) services pursuant to 7 U.S.C. 2225, and not to exceed $100,000for employment under 5 U.S.C. 3109; (3) purchase, erection, and alteration ofbuildings and other public improvements (7 U.S.C. 2250); (4) acquisition of land,waters, and interests therein pursuant to 7 U.S.C. 428a; (5) for expenses pursuantto the Volunteers in the National Forest Act of 1972 (16 U.S.C. 558a, 558d, and558a note); (6) the cost of uniforms as authorized by 5 U.S.C. 5901–5902; and (7)for debt collection contracts in accordance with 31 U.S.C. 3718(c).

Any appropriations or funds available to the Forest Service may be transferredto the Wildland Fire Management appropriation for forest firefighting, emergencyrehabilitation of burned-over or damaged lands or waters under its jurisdiction,and fire preparedness due to severe burning conditions upon the Secretary's notific-ation of the House and Senate Committees on Appropriations that all fire suppressionfunds appropriated under the heading "Wildland Fire Management" will be obligatedwithin 30 days.

Notwithstanding any other provision of this Act, the Forest Service may transferfunds appropriated to the Forest Service by this Act to or within the "National ForestSystem" account for the purposes of hazardous fuels management and emergencyrehabilitation of burned-over National Forest System lands and water: Provided,That such transferred funds shall remain available through September 30, 2022:Provided further, That none of the funds transferred pursuant to this section shallbe available for obligation without written notification to the Committees on Appro-priations of both Houses of Congress.

Funds appropriated to the Forest Service shall be available for assistance to orthrough the Agency for International Development in connection with forest andrangeland research, technical information, and assistance in foreign countries, andshall be available to support forestry and related natural resource activities outsidethe United States and its territories and possessions, including technical assistance,education and training, and cooperation with U.S., private, and international organ-izations. The Forest Service, acting for the International Program, may sign directfunding agreements with foreign governments and institutions as well as other do-mestic agencies (including the U.S. Agency for International Development, the De-partment of State, and the Millennium Challenge Corporation), U.S. private sectorfirms, institutions and organizations to provide technical assistance and trainingprograms overseas on forestry and rangeland management.

Funds appropriated to the Forest Service shall be available for expenditure ortransfer to the Department of the Interior, Bureau of Land Management, for removal,preparation, and adoption of excess wild horses and burros from National ForestSystem lands, and for the performance of cadastral surveys to designate theboundaries of such lands.

None of the funds made available to the Forest Service in this Act or any otherAct with respect to any fiscal year shall be subject to transfer under the provisionsof section 702(b) of the Department of Agriculture Organic Act of 1944 (7 U.S.C.2257), section 442 of Public Law 106–224 (7 U.S.C. 7772), or section 10417(b) ofPublic Law 107–171 (7 U.S.C. 8316(b)).

None of the funds available to the Forest Service may be reprogrammed withoutthe advance notification to the House and Senate Committees on Appropriations inaccordance with the reprogramming procedures contained in the explanatorystatement accompanying this Act.

Not more than $82,000,000 of funds available to the Forest Service shall betransferred to the Working Capital Fund of the Department of Agriculture and notmore than $14,500,000 of funds available to the Forest Service shall be transferredto the Department of Agriculture for Department Reimbursable Programs, commonlyreferred to as Greenbook charges. Nothing in this paragraph shall prohibit or limit

the use of reimbursable agreements requested by the Forest Service in order to obtainservices from the Department of Agriculture's National Information TechnologyCenter and the Department of Agriculture's International Technology Service.

Of the funds available to the Forest Service, up to $5,000,000 shall be availablefor priority projects within the scope of the approved budget, which shall be carriedout by the Youth Conservation Corps and shall be carried out under the authorityof the Public Lands Corps Act of 1993, Public Law 103–82, as amended by PublicLands Corps Healthy Forests Restoration Act of 2005, Public Law 109–154.

Of the funds available to the Forest Service, $4,000 is available to the Chief ofthe Forest Service for official reception and representation expenses.

Pursuant to sections 405(b) and 410(b) of Public Law 101–593, of the fundsavailable to the Forest Service, up to $3,000,000 may be advanced in a lump sumto the National Forest Foundation to aid conservation partnership projects in supportof the Forest Service mission, without regard to when the Foundation incurs ex-penses, for projects on or benefitting National Forest System lands or related toForest Service programs: Provided, That of the Federal funds made available tothe Foundation, no more than $300,000 shall be available for administrative ex-penses: Provided further, That the Foundation shall obtain, by the end of the periodof Federal financial assistance, private contributions to match funds made availableby the Forest Service on at least a one-for-one basis: Provided further, That theFoundation may transfer Federal funds to a Federal or a non-Federal recipient fora project at the same rate that the recipient has obtained the non-Federal matchingfunds.

Pursuant to section 2(b)(2) of Public Law 98–244, up to $3,000,000 of the fundsavailable to the Forest Service may be advanced to the National Fish and WildlifeFoundation in a lump sum to aid cost-share conservation projects, without regardto when expenses are incurred, on or benefitting National Forest System lands orrelated to Forest Service programs: Provided, That such funds shall be matched onat least a one-for-one basis by the Foundation or its sub-recipients: Provided further,That the Foundation may transfer Federal funds to a Federal or non-Federal recip-ient for a project at the same rate that the recipient has obtained the non-Federalmatching funds.

Funds appropriated to the Forest Service shall be available for interactions withand providing technical assistance to rural communities and natural resource-basedbusinesses for sustainable rural development purposes.

Funds appropriated to the Forest Service shall be available for payments tocounties within the Columbia River Gorge National Scenic Area, pursuant to section14(c)(1) and (2), and section 16(a)(2) of Public Law 99–663.

Any funds appropriated to the Forest Service may be used to meet the non-Federalshare requirement in section 502(c) of the Older Americans Act of 1965 (42 U.S.C.3056(c)(2)).

Notwithstanding any other provision of law, of any appropriations or fundsavailable to the Forest Service, not to exceed $500,000 may be used to reimbursethe Office of the General Counsel (OGC), Department of Agriculture, for travel andrelated expenses incurred as a result of OGC assistance or participation requestedby the Forest Service at meetings, training sessions, management reviews, landpurchase negotiations and similar matters unrelated to civil litigation. Future budgetjustifications for both the Forest Service and the Department of Agriculture shouldclearly display the sums previously transferred and the sums requested for transfer.

An eligible individual who is employed in any project funded under title V of theOlder Americans Act of 1965 (42 U.S.C. 3056 et seq.) and administered by theForest Service shall be considered to be a Federal employee for purposes of chapter171 of title 28, United States Code.

✦

GENERAL FUND RECEIPT ACCOUNTS(in millions of dollars)


Offsetting receipts from the public:636352National Grasslands .......................................................012–181100757599National Forest Fund ......................................................012–222100

20..................................Marketing Orders and Agreements Fees: Legislative

proposal, subject to PAYGO ........................................012–249300

23..................................Packers and Stockyards Fees: Legislative proposal, subject

to PAYGO ....................................................................012–249500

23..................................Animal and Plant Health Inspection Fees: Legislative

proposal, subject to PAYGO ........................................012–249600

..................................4Biorefinery Assistance, Downward Reestimates of

Subsidies ...................................................................012–267530

..................................1Rural Microenterprise Investment, Downward Reestimate

of Subsidy ..................................................................012–268030

232320Agriculture Credit Insurance, Negative Subsidies ..........012–270110

THE BUDGET FOR FISCAL YEAR 2019174 Forest Service—ContinuedTrust Funds—Continued

.................137298Agriculture Credit Insurance, Downward Reestimates of

Subsidies ...................................................................012–270130

140140150Rural Electrification and Telephone Loans, Negative

Subsidies ...................................................................012–270210

.................282723Rural Electrification and Telephone Loans, Downward

Reestimates of Subsidies ...........................................012–270230

333Rural Water and Waste Disposal, Negative Subsidies .....012–270310

.................32104Rural Water and Waste Disposal, Downward Reestimates

of Subsidies ...............................................................012–270330

122122118Rural Community Facility, Negative Subsidies ...............012–270510

.................22557Rural Community Facility, Downward Reestimates of

Subsidies ...................................................................012–270530

137137138Rural Housing Insurance, Negative Subsidies ................012–270610

.................4917,064Rural Housing Insurance, Downward Reestimates of

Subsidies ...................................................................012–270630

.................13457Rural Business and Industry, Downward Reestimates of

Subsidies ...................................................................012–270730

.................1614P.L. 480 Loan Program, Downward Reestimates of

Subsidies ...................................................................012–270830

.................210Rural Development Loans, Downward Reestimates of

Subsidies ...................................................................012–271030

..................................2Rural Telephone Bank Loans, Downward Reestimates of

Subsidies ...................................................................012–271130

.................21Economic Development Loans, Downward Reestimates of

Subsidies ...................................................................012–271330

.................5647Downward Reestimates, Distance Learning, Telemedicine,

and Broadband Program ............................................012–274630

443Negative Subsidies, Farm Storage Facility Loans ...........012–275610

.................39Farm Storage Facility Loans, Downward Reestimate of

Subsidies ...................................................................012–275630

.................316Commodity Credit Corporation Export Guarantee

Financing, Downward Reestimate of Subsidies ..........012–275730

.................216Multifamily Housing Revitalization Fund, Downward

Reestimates of Subsidies ...........................................012–277930

.................826Rural Energy for America Program, Downward Reestimates

of Subsidies ...............................................................012–278630

28287Commodity Credit Corporation Export Guarantee

Financing, Negative Subsidies ...................................012–279310

5526All Other General Fund Proprietary Receipts Including

Budget Clearing Accounts ..........................................012–322000

6662,0129,055General Fund Offsetting receipts from the public .....................................

Intragovernmental payments:

..................................–26Undistributed Intragovernmental Payments and

Receivables from Cancelled Accounts ........................012–388500

..................................–26General Fund Intragovernmental payments ..............................................

✦

TITLE VII—GENERAL PROVISIONS

GENERAL PROVISIONS

(INCLUDING CANCELLATIONS AND TRANSFERS OF FUNDS)SEC. 701. Notwithstanding sections 1535(b) or 1535(d) of Title 31, United States

Code, work performed by the Working Capital Fund for other Federal entities onan advance or reimbursable basis shall be charged at rates which will return in fullall expenses of operation of the Fund, including accrued leave, amortization of Fundplant and equipment, amortization of information technology (IT) software andsystems (either acquired or donated) and an amount necessary to maintain a reas-onable operating reserve, as determined by the Secretary: Provided, That notwith-standing any other provision of this Act, the Secretary of Agriculture may transferunobligated balances of discretionary funds appropriated by this Act or any otheravailable unobligated discretionary balances that are remaining available to theDepartment of Agriculture to the Working Capital Fund for the acquisition of plantand capital equipment necessary for the delivery of financial, administrative, andinformation technology services of primary benefit to the agencies of the Departmentof Agriculture, and such transferred funds shall remain available until expended:Providedfurther, That none of the funds made available by this Act or any other Actshall be transferred to the Working Capital Fund without the prior approval of theagency administrator: Provided further, That none of the funds transferred to theWorking Capital Fund pursuant to this section shall be available for obligationwithout the prior notification to the Committees on Appropriations of both Housesof Congress: Provided further, That an amount not to exceed four percent of thetotal annual income to the Working Capital Fund for fiscal year 2019 may be retainedin the Fund for fiscal year 2019, to remain available until expended, to be used forthe acquisition of capital equipment, and for the improvement and implementationof Department financial management, IT, and other support systems or to pay anyunforeseen, extraordinary cost of the National Finance Center: Provided further,That none of the amounts reserved shall be available for obligation unless the Sec-retary submits notification of the obligation to the Committees on Appropriations

of both Houses of Congress: Provided further, That the limitation on the obligationof funds pending notification to Congressional Committees shall not apply to anyobligation that, as determined by the Secretary, is necessary to respond to a declaredstate of emergency that significantly impacts the operations of the National FinanceCenter; or to evacuate employees of the National Finance Center to a safe havento continue operations of the National Finance Center.

SEC. 702. No part of any appropriation contained in this Act shall remain availablefor obligation beyond the current fiscal year unless expressly so provided herein.

SEC. 703. No funds appropriated by this Act may be used to pay negotiated indirectcost rates on cooperative agreements or similar arrangements between the UnitedStates Department of Agriculture and nonprofit institutions in excess of 10 percentof the total direct cost of the agreement when the purpose of such cooperative ar-rangements is to carry out programs of mutual interest between the two parties.This does not preclude appropriate payment of indirect costs on grants and contractswith such institutions when such indirect costs are computed on a similar basis forall agencies for which appropriations are provided in this Act.

SEC. 704. Appropriations to the Department of Agriculture for the cost of directand guaranteed loans made available in the current fiscal year shall remain availableuntil expended to disburse obligations made in the current fiscal year for the RuralElectrification and Telecommunication Loans program account.

SEC. 705. None of the funds made available to the Department of Agriculture bythis Act may be used to acquire new information technology systems or significantupgrades, as determined by the Office of the Chief Information Officer, without theapproval of the Chief Information Officer and the concurrence of the Executive In-formation Technology Investment Review Board: Provided, That notwithstandingany other provision of law, none of the funds appropriated or otherwise madeavailable by this Act may be transferred to the Office of the Chief Information Officerunless notification has been transmitted to the Committees on Appropriations ofboth Houses of Congress: Provided further, That, notwithstanding section 11319of title 40, United States Code, none of the funds available to the Department ofAgriculture for information technology shall be obligated for projects, contracts,or other agreements over $25,000 prior to receipt of written approval by the ChiefInformation Officer: Provided further, That the Chief Information Officer may au-thorize an agency to obligate funds without written approval from the Chief Inform-ation Officer for projects, contracts, or other agreements up to $250,000 based uponthe performance of an agency measured against the performance plan requirements.

SEC. 706. None of the funds appropriated or otherwise made available by this Actmay be used for first-class travel by the employees of agencies funded by this Actin contravention of sections 301–10.122 through 301–10.124 of title 41, Code ofFederal Regulations.

SEC. 707. In the case of each program established or amended by the AgriculturalAct of 2014 (Public Law 113–79), other than by title I or subtitle A of title III ofsuch Act, or programs for which indefinite amounts were provided in that Act, thatis authorized or required to be carried out using funds of the Commodity CreditCorporation—

(1) such funds shall be available for salaries and related administrative ex-penses, including technical assistance, associated with the implementation ofthe program, without regard to the limitation on the total amount of allotmentsand fund transfers contained in section 11 of the Commodity Credit CorporationCharter Act (15 U.S.C. 714i); and

(2) the use of such funds for such purpose shall not be considered to be a fundtransfer or allotment for purposes of applying the limitation on the total amountof allotments and fund transfers contained in such section.

SEC. 708. Of the funds made available by this Act, not more than $2,900,000 shallbe used to cover necessary expenses of activities related to all advisory committees,panels, commissions, and task forces of the Department of Agriculture, except forpanels used to comply with negotiated rule makings and panels used to evaluatecompetitively awarded grants.

SEC. 709. None of the funds in this Act shall be available to pay indirect costscharged against any agricultural research, education, or extension grant awardsissued by the National Institute of Food and Agriculture that exceed 10 percent oftotal Federal funds provided under each award: Provided, That notwithstandingsection 1462 of the National Agricultural Research, Extension, and Teaching PolicyAct of 1977 (7 U.S.C. 3310), funds provided by this Act for grants awarded compet-itively by the National Institute of Food and Agriculture shall be available to payfull allowable indirect costs for each grant awarded under section 9 of the SmallBusiness Act (15 U.S.C. 638).

SEC. 710. Of the funds available under section 1241(a)(5)(E) of the Food SecurityAct of 1985 (16 U.S.C. 3841(a)(5)(E)), $136,260,000 are hereby permanently can-celled.

SEC. 711. Notwithstanding subsection (b) of section 14222 of Public Law 110–246(7 U.S.C. 612c–6; in this section referred to as "section 14222"), none of the funds

175DEPARTMENT OF AGRICULTURE TITLE VII—GENERAL PROVISIONS

appropriated or otherwise made available by this or any other Act shall be used topay the salaries and expenses of personnel to carry out a program under section 32of the Act of August 24, 1935 (7 U.S.C. 612c; in this section referred to as "section32") in excess of $837,600,000 (excluding carryover appropriations from priorfiscal years), as follows: Child Nutrition Programs Entitlement Commodit-ies—$465,000,000; State Option Contracts—$5,000,000; Removal of DefectiveCommodities—$2,500,000; Administration of Section 32 Commodity Pur-chases—$35,853,000: Provided, That of the total funds made available in the matterpreceding this proviso that remain unobligated on October 1, 2019, such unobligatedbalances shall carryover into fiscal year 2020 and shall remain available until ex-pended for any of the purposes of section 32, except that such carryover funds usedin accordance with clause 3 of section 32 may not exceed $75,000,000 and may notbe obligated until the Secretary of Agriculture provides written notification of theexpenditures to the Committees on Appropriations of both Houses of Congress atleast two weeks in advance: Provided further, That none of the funds made availablein this Act or any other Act shall be used for salaries and expenses to carry out inthis fiscal year subsection (i)(1)(E) of section 19 of the Richard B. Russell NationalSchool Lunch Act (42 U.S.C. 1769a), except in an amount that excludes the transferof $125,000,000 of the funds to be transferred under subsection (c) of section 14222,until October 1, 2019: Provided further, That $125,000,000 made available onOctober 1, 2019, to carry out such section 19 shall be excluded from the limitationdescribed in subsection (b)(2)(A)(x) of section 14222: Provided further, That, withthe exception of any available carryover funds authorized in any prior appropriationsAct to be used for the purposes of clause 3 of section 32, none of the funds appropri-ated or otherwise made available by this or any other Act shall be used to pay thesalaries or expenses of any employee of the Department of Agriculture or officer ofthe Commodity Credit Corporation to carry out clause 3 of section 32, or for anysurplus removal activities or price support activities under section 5 of the Commod-ity Credit Corporation Charter Act (15 U.S.C. 714c): Provided further, That theavailable unobligated balances from amounts first made available for fiscal year2019 under (b)(2)(A)(x) of section 14222 in excess of the limitation set forth in thissection, excluding the amounts to be transferred pursuant to the second proviso ofthis section, are hereby permanently cancelled.

SEC. 712. For loans and loan guarantees that do not require budget authority andthe program level has been established in this Act, the Secretary of Agriculture mayincrease the program level for such loans and loan guarantees by not more than 25percent: Provided, That prior to the Secretary implementing such an increase, theSecretary notifies, in writing, the Committees on Appropriations of both Houses ofCongress at least 15 days in advance.

SEC. 713. Funds provided by this or any prior appropriations Act for the Agricul-ture and Food Research Initiative under 7 U.S.C. 450i(b) shall be made availablewithout regard to section 7128 of the Agricultural Act of 2014 (7 U.S.C. 3371 note),under the matching requirements in laws in effect on the date before the date ofenactment of such section: Provided, That the requirements of 7 U.S.C. 450i(b)(9)shall continue to apply.

SEC. 714. None of the funds made available by this Act may be used to notify asponsor or otherwise acknowledge receipt of a submission for an exemption for in-vestigational use of a drug or biological product under section 505(i) of the FederalFood, Drug, and Cosmetic Act (21 U.S.C. 355(i)) or section 351(a)(3) of the PublicHealth Service Act (42 U.S.C. 262(a)(3)) in research in which a human embryo isintentionally created or modified to include a heritable genetic modification. Anysuch submission shall be deemed to have not been received by the Secretary, andthe exemption may not go into effect.

SEC. 715. No partially hydrogenated oils as defined in the order published by theFood and Drug Administration in the Federal Register on June 17, 2015 (80 Fed.Reg. 34650 et seq.) shall be deemed unsafe within the meaning of section 409(a)and no food that is introduced or delivered for introduction into interstate commercethat bears or contains a partially hydrogenated oil shall be deemed adulteratedunder sections 402(a)(1) or 402(a)(2)(C)(i) by virtue of bearing or containing apartially hydrogenated oil until the compliance date as specified in such order (June18, 2018).

SEC. 716. None of the funds made available by this Act or any other Act may beused—

(1) in contravention of section 7606 of the Agricultural Act of 2014 (7 U.S.C.5940); or

(2) to prohibit the transportation, processing, sale, or use of industrial hempthat is grown or cultivated in accordance with subsection section 7606 of theAgricultural Act of 2014, within or outside the State in which the industrial hempis grown or cultivated.

SEC. 717. Except as otherwise specifically provided by law, unobligated balancesfrom appropriations made available for salaries and expenses in this Act for the

Farm Service Agency and the Rural Development mission area shall remain availablethrough September 30, 2020, for information technology expenses.

SEC. 718. Of the unobligated balances available in the ''Agricultural ResearchService, Buildings and Facilities'' account, $192,000,000 are hereby permanentlycancelled.

SEC. 719. Of the unobligated balances of amounts made available in fiscal year2018 for the supplemental nutrition program as authorized by section 17 of theChild Nutrition Act of 1966 (42 U.S.C. 1786), $215,000,000 are hereby permanentlycancelled.

SEC. 720. For fiscal year 2019, section 11016 of Public Law 110–246 and section12106 of Public Law 113–79 shall not apply, and inspection of all fish under theorder Siluriformes shall be done pursuant to the authority for such inspections inthe Federal Food, Drug, and Cosmetic Act.

SEC. 721. Of the funds derived from interest on the cushion of credit payments, asauthorized by section 313 of the Rural Electrification Act of 1936, $225,000,000shall not be obligated and $225,000,000 are hereby permanently cancelled.

SEC. 722. Of the funds available under sections 14(h)(1)(A) through 14(h)(1)(G)of the Watershed and Flood Prevention Act (16 U.S.C. 1012(h)(1)(A)-(G)) for fiscalyear 2019, $46,150,000 are hereby permanently cancelled.

SEC. 723. Of the funds made available under section 524(b)(4)(B)(i) of the FederalCrop Insurance Act (7 U.S.C. 1524(b)(4)(B)(i)) for fiscal year 2019, $9,380,000are hereby permanently cancelled.

SEC. 724. INCREASE IN EXPORT CERTIFICATION FEES.— Section 801(e)(4)of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 381(e)(4)) is amended—

(a) in subparagraph (B) by striking "but shall not exceed $175 for each certific-ation" and inserting "in an amount specified in subparagraph (E)"; and

(b) by adding at the end the following new subparagraphs:"(E) The fee for each written export certification issued by the Secretary under

this paragraph shall not exceed—(i) $600 for fiscal year 2019; and(ii) for each subsequent fiscal year, the prior fiscal year maximum amount

multiplied by the inflation adjustment under section 738(c)(2)(C), applied withoutregard to the limitation in clause (ii)(II) of such subparagraph.(F) The Secretary shall, for each fiscal year, publish in the Federal Register a

notice of the export certification fee under this paragraph for such year, not laterthan 60 days before such fee takes effect.".SEC. 725. (a) There is hereby established in the Treasury of the United States a

Working Capital Fund (the Fund) to be administered by the Food and Drug Admin-istration (FDA), without fiscal year limitation, for the payment of salaries, travel,and other expenses necessary to the maintenance and operation of (1) a supplyservice for the purchase, storage, handling, issuance, packing, or shipping of sta-tionery, supplies, materials, equipment, and blank forms, for which stocks may bemaintained to meet, in whole or in part, the needs of the FDA and requisitions ofother Government Offices, and (2) such other services as the Commissioner of theFDA, subject to review by the Secretary of Health and Human Services, determinesmay be performed more advantageously as central services. The Fund shall be re-imbursed from applicable discretionary resources, notwithstanding any otherwiseapplicable purpose limitations, available when services are performed or stockfurnished, or in advance, on a basis of rates which shall include estimated or actualcharges for personal services, materials, equipment, information technology, andother expenses. Charges for equipment and information technology shall includecosts associated with maintenance, repair, and depreciation (including improvementand replacement).

(b) Of any discretionary resources appropriated in this Act for fiscal year 2019for "Department of Health and Human Services - Food and Drug Administration -Salaries and Expenses", not to exceed $5,000,000 of available amounts may betransferred to and merged with the Fund established under subsection (a), notwith-standing any otherwise applicable purpose limitations.

(c) No amounts may be transferred pursuant to this section that are designatedby the Congress as an emergency requirement pursuant to a concurrent resolutionon the budget or the Balanced Budget and Emergency Deficit Control Act of 1985.

SEC. 726. Of the unobligated balances identified by the Treasury AppropriationFund Symbol 12X1980, $51,000,000 are hereby permanently cancelled: Provided,That no amounts may be cancelled from amounts that were designated by the Con-gress as an emergency or disaster relief requirement pursuant to the concurrentresolution on the budget or the Balanced Budget and Emergency Deficit ControlAct of 1985.

SEC. 727. Of the unobligated balances identified by the Treasury AppropriationFund Symbol 12X1951, $3,046,000 are hereby permanently cancelled: Provided,That no amounts may be cancelled from amounts that were designated by the Con-gress as an emergency or disaster relief requirement pursuant to the concurrent

THE BUDGET FOR FISCAL YEAR 2019176 TITLE VII—GENERAL PROVISIONS—Continued

resolution on the budget or the Balanced Budget and Emergency Deficit ControlAct of 1985.

SEC. 728. Notwithstanding section 343(a)(13)(C) of the Consolidated Farm andRural Development Act, for the purpose of water and waste disposal direct andguaranteed loans provided under paragraphs (1) and (24) of section 306(a) of suchAct, the terms "rural" and "rural areas" mean a city, town, or unincorporated areathat has a population of no more than 20,000 inhabitants.

SEC. 729. Of the unobligated balances identified by the Treasury AppropriationFund Symbol 12X2900, $18,000,000 are hereby permanently cancelled: Provided,That no amounts may be cancelled from amounts that were designated by the Con-gress as an emergency or disaster relief requirement pursuant to the concurrentresolution on the budget or the Balanced Budget and Emergency Deficit ControlAct of 1985.

SEC. 730. None of the funds appropriated to carry out the Conservation Steward-ship Program as authorized by Chapter 2 of subtitle D of title XII of the Food SecurityAct of 1985, as amended (16 U.S.C. 3838d–3838g), shall be available to enroll ad-ditional acres in fiscal year 2019: Provided, That such program shall be permanentlyreduced by 10,000,000 acres.

SEC. 731. The Secretary of Agriculture and the Secretary's designees are herebygranted the same access to information and subject to the same requirements applic-able to the Secretary of Housing and Urban Development as provided in section453 of the Social Security Act (42 U.S.C. 653) and section 6103(1)(7)(D)(ix) of theInternal Revenue Code of 1986 (26 U.S.C. 1603(1)(7)(D)(ix)) to verify the incomefor individuals participating in sections 502, 504, 521, and 524 of the Housing Actof 1949 (42 U.S.C. 1972, 1474, 1490a, and 1490r), notwithstanding section 453(l)(1)of the Social Security Act.

SEC. 732. Establishment of the Under Secretary of Agriculture for Farm Productionand Conservation.—

(a) The Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6931)is amended—

(1) by striking "Subtitle B—Farm and Foreign Agricultural Services" andinserting "Subtitle B—Farm Production and Conservation"; and

(2) by revising section 225 to read as follows:

"Sec. 225. Under Secretary of Agriculture for Farm Production and Conser-vation.

(a) AUTHORIZATION.—The Secretary is authorized to establish in the De-partment the position of Under Secretary of Agriculture for Farm Productionand Conservation.

(b) CONFIRMATION REQUIRED.—If the Secretary establishes the positionof Under Secretary of Agriculture for Farm Production and Conservation au-thorized under subsection (a), the Under Secretary shall be appointed by thePresident, by and with the advice and consent of the Senate.

(c) FUNCTIONS OF UNDER SECRETARY.—The Under Secretary of Agricul-ture for Farm Production and Conservation shall perform such functions andduties as the Secretary shall prescribe.

(d) SUCCESSION.—Any official who is serving as Under Secretary of Agri-culture for Farm and Foreign Agricultural Services on the date of the enactmentof this Act and who was appointed by the President, by and with the advice andconsent of the Senate, shall not be required to be reappointed under subsection(b) to the successor position authorized under subsection (a).".(b) Section 5314 of title 5, United States Code, is amended by striking "Under

Secretary of Agriculture for Farm and Foreign Agricultural Services." and inserting"Under Secretary of Agriculture for Farm Production and Conservation." and"Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs.".SEC. 733. In addition to amounts otherwise made available for Agricultural

Quarantine and Inspection activities, the Animal and Plant Health Inspection Serviceis authorized to collect fees for the Agricultural Quarantine and Inspection predepar-ture services for traveler baggage and means of conveyance (as defined in 7 U.S.C.7702) between Hawaii or Puerto Rico and the mainland United States: Provided,That such fees shall be credited to the "Animal and Plant Health Inspection Ser-vice—Salaries and Expenses" account, and shall remain available until expendedfor the Agricultural Quarantine and Inspection predeparture services described inthe matter preceding this proviso: Provided further, That funds made available tothe "Animal and Plant Health Inspection Service—Salaries and Expenses" accountin fiscal year 2019 shall also be available for such services.

177DEPARTMENT OF AGRICULTURE TITLE VII—GENERAL PROVISIONS—Continued

department of agriculture of agriculture office of the secretary federal funds production, pro...

Documents