department of agriculture - the white house · 2017-05-23 · department of agriculture office of...

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, $42,064,000 of which notto exceed $4,859,000 shall be available for the Immediate Office of the Secretary;not to exceed $501,000 shall be available for the Office of Tribal Relations; not toexceed $1,448,000 shall be available for the Office of Homeland Security andEmergency Coordination; not to exceed $1,171,000 shall be available for the Officeof Advocacy and Outreach; not to exceed $23,303,000 shall be available for theOffice of the Assistant Secretary for Administration, of which $22,501,000 shall beavailable for Departmental Administration to provide for necessary expenses formanagement support services to offices of the Department and for general adminis-tration, security, repairs and alterations, and other miscellaneous supplies and ex-penses not otherwise provided for and necessary for the practical and efficient workof the Department; not to exceed $3,521,000 shall be available for the Office ofAssistant 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 the Secretary of Agriculture is author-ized to transfer funds appropriated for any office of the Office of the Secretary toany other office of the Office of the Secretary: Provided further, That no appropri-ation for any office shall be increased or decreased by more than 5 percent: Providedfurther, That not to exceed $11,000 of the amount made available under this para-graph for the Immediate Office of the Secretary shall be available for official recep-tion and representation expenses, not otherwise provided for, as determined by theSecretary: Provided further, That the amount made available under this headingfor Departmental Administration shall be reimbursed from applicable appropriationsin this Act for travel expenses incident to the holding of hearings as required by 5U.S.C. 551–558: Provided further, That funds made available under this headingfor the Office of the Assistant Secretary for Congressional Relations may be trans-ferred to agencies of the Department of Agriculture funded by this Act to maintainpersonnel 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,$896,000.

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, $891,000.

OFFICE OF THE UNDER SECRETARY FOR MARKETING AND REGULATORY

PROGRAMS

For necessary expenses of the Office of the Under Secretary for Marketing andRegulatory Programs, $891,000.

OFFICE OF THE UNDER SECRETARY FOR FOOD SAFETY

For necessary expenses of the Office of the Under Secretary for Food Safety,$814,000.

OFFICE OF THE UNDER SECRETARY FOR FARM AND FOREIGN AGRICULTURAL

SERVICES

For necessary expenses of the Office of the Under Secretary for Farm and ForeignAgricultural Services, $896,000.

OFFICE OF THE UNDER SECRETARY FOR NATURAL RESOURCES AND

ENVIRONMENT

For necessary expenses of the Office of the Under Secretary for Natural Resourcesand Environment, $896,000.

OFFICE OF THE UNDER SECRETARY FOR RURAL DEVELOPMENT

For necessary expenses of the Office of the Under Secretary for Rural Development,$891,000.

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, $809,000.

Note.—A full-year 2017 appropriation for this account was not enacted at the time the budgetwas prepared; therefore, the budget assumes this account is operating under the Further Continu-ing Appropriations Act, 2017 (P.L. 114–254). The amounts included for 2017 reflect the annu-alized level provided by the continuing resolution.

Program and Financing (in millions of dollars)

2018 est.2017 est.2016 actualIdentification code 012–9913–0–1–352

Obligations by program activity:445Office of the Secretary ...............................................................0001

121211Under/Assistant Secretaries ......................................................0002111Trade negotiations and biotechnology resources .......................0003

232325Departmental Administration ....................................................0004777Office of Communications .........................................................0005111Office of Advocacy and Outreach ...............................................0006111Office of Homeland Security and Emergency Coordination ........0007

1099Outreach & Assistance for Socially Disadvantaged Farmers &

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

333Biobased Markets Program Sec 9001 ........................................0009

626163Total direct obligations ..................................................................0799565666Office of the Secretary (Reimbursable) ......................................0802

118117129Total new obligations, unexpired accounts ....................................0900

Budgetary resources:Unobligated balance:

1042Unobligated balance brought forward, Oct 1 .........................1000.................11Discretionary unobligated balance brought fwd, Oct 1 ......1001

112Recoveries of prior year unpaid obligations ...........................1021..................................2Recoveries of prior year paid obligations ...............................1033

1156Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, discretionary:495153Appropriation ....................................................................1100

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

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

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

131212Appropriations, mandatory (total) .........................................1260Spending authority from offsetting collections, discretionary:

595954Collected ...........................................................................1700..................................25Change in uncollected payments, Federal sources ............1701

595979Spending auth from offsetting collections, disc (total) .........1750121122144Budget authority (total) .............................................................1900132127150Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................–17Unobligated balance expiring ................................................1940

14104Unexpired unobligated balance, end of year ..........................1941

Change in obligated balance:Unpaid obligations:

73839Unpaid obligations, brought forward, Oct 1 ..........................3000118117129New obligations, unexpired accounts ....................................3010

..................................6Obligations ("upward adjustments"), expired accounts ........3011–122–147–128Outlays (gross) ......................................................................3020

–1–1–2Recoveries of prior year unpaid obligations, unexpired .........3040..................................–6Recoveries of prior year unpaid obligations, expired .............3041

2738Unpaid obligations, end of year .................................................3050Uncollected payments:

–33–33–31Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060..................................–25Change in uncollected pymts, Fed sources, unexpired ..........3070..................................23Change in uncollected pymts, Fed sources, expired ..............3071

–33–33–33Uncollected pymts, Fed sources, end of year .............................3090Memorandum (non-add) entries:

–2658Obligated balance, start of year ............................................3100–31–265Obligated balance, end of year ..............................................3200

Budget authority and outlays, net:Discretionary:

108110132Budget authority, gross .........................................................4000Outlays, gross:

10310497Outlays from new discretionary authority ..........................4010

57

OFFICE OF THE SECRETARY—Continued

Program and Financing—Continued


63017Outlays from discretionary balances .................................4011

109134114Outlays, gross (total) .............................................................4020Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–59–59–67Federal sources .................................................................4030

..................................–2Non-Federal sources .........................................................4033

–59–59–69Offsets against gross budget authority and outlays (total) ....4040Additional offsets against gross budget authority only:

..................................–25Change in uncollected pymts, Fed sources, unexpired .......4050

..................................13Offsetting collections credited to expired accounts ...........4052

..................................2Recoveries of prior year paid obligations, unexpired

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

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

495153Budget authority, net (discretionary) .........................................4070507545Outlays, net (discretionary) .......................................................4080

Mandatory:131212Budget authority, gross .........................................................4090

Outlays, gross:11102Outlays from new mandatory authority .............................41002312Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:..................................–1Non-Federal sources .........................................................4123

Additional offsets against gross budget authority only:..................................1Offsetting collections credited to expired accounts ...........4142

131212Budget authority, net (mandatory) ............................................4160131313Outlays, net (mandatory) ...........................................................4170626365Budget authority, net (total) ..........................................................4180638858Outlays, 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 2018 Budget requests $16.7 million for the Office of the Secretary.The Office of Homeland Security and Emergency Coordination formulates

emergency preparedness policies for USDA and directs and coordinatesDepartment activities that support USDA emergency programs and liaisonfunctions with Congress, the Department of Homeland Security, and otherFederal agencies involving homeland security, natural disasters, agriculture-related international civil emergency planning and intelligence activities.The 2018 Budget requests $1.4 million.

The Office of Advocacy and Outreach improves access to USDA pro-grams and enhances the viability and profitability of small farms andranches, beginning farmers and ranchers, and socially disadvantagedfarmers and ranchers. The Department is committed to ensuring that allUSDA constituents, including historically underserved groups, have theopportunity to participate in and benefit from the programs offered by theDepartment. The 2018 Budget requests $1.2 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 2018 Budget requests $22.5 million. This fundinglevel reflects a transfer of $2 million and the realignment of the Office ofAdministrative Law Judges and the Office of the Judicial Officer fromDepartmental Administration to the Office of Hearings and Appeals.

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 2018 Budget requests $7.3 million.

Object Classification (in millions of dollars)


Direct obligations:262626Personnel compensation: Full-time permanent .........................11.1888Civilian personnel benefits ........................................................12.1112Travel and transportation of persons .........................................21.0222Rental payments to GSA ............................................................23.1222Communications, utilities, and miscellaneous charges ............23.3666Other services from non-Federal sources ..................................25.2778Other goods and services from Federal sources ........................25.3

1099Grants, subsidies, and contributions ........................................41.0

626163Direct obligations ..................................................................99.0565666Reimbursable obligations .....................................................99.0

118117129Total new obligations, unexpired accounts ............................99.9

Employment Summary


215219224Direct civilian full-time equivalent employment ............................1001179179195Reimbursable civilian full-time equivalent employment ...............2001

✦

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

THE BUDGET FOR FISCAL YEAR 201858 Office of the Secretary—ContinuedFederal Funds—Continued

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, $17,211,000, ofwhich $4,000,000 shall be for grants or cooperative agreements for policy researchunder 7 U.S.C. 3155.




Obligations by program activity:171716Office of the Chief Economist ....................................................0001111Biodiesel Fuel Education Program .............................................0002

181817Total direct obligations ..................................................................0799222Office of the Chief Economist (Reimbursable) ...........................0801



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

Budget authority:Appropriations, discretionary:

171818Appropriation ....................................................................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


Memorandum (non-add) entries:.................11Unexpired unobligated balance, end of year ..........................1941



–19–32–19Outlays (gross) ......................................................................3020




11313Obligated balance, start of year ............................................31002113Obligated balance, end of year ..............................................3200



161710Outlays from new discretionary authority ..........................4010238Outlays from discretionary balances .................................4011

182018Outlays, gross (total) .............................................................4020

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

–1–1–1Federal sources .................................................................4030Additional offsets against gross budget authority only:





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

.................111Outlays from mandatory balances ....................................4101

1121Outlays, gross (total) .............................................................4110181919Budget authority, net (total) ..........................................................4180183118Outlays, net (total) ........................................................................4190

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 2018 Budget requests$17.2 million for the office.



Direct obligations:777Personnel compensation: Full-time permanent .........................11.1222Civilian personnel benefits ........................................................12.1998Other services from non-Federal sources ..................................25.2



Employment Summary


535351Direct civilian full-time equivalent employment ............................1001

✦

OFFICE OF HEARINGS AND APPEALS

For necessary expenses of the Office of Hearings and Appeals, $14,716,000.Note.—A full-year 2017 appropriation for this account was not enacted at the time the budget

was prepared; therefore, the budget assumes this account is operating under the Further Continu-ing Appropriations Act, 2017 (P.L. 114–254). The amounts included for 2017 reflect the annu-alized level provided by the continuing resolution.



Obligations by program activity:151513National Appeals Division .........................................................0001

Budgetary resources:Budget authority:

Appropriations, discretionary:151513Appropriation ....................................................................1100151513Total budgetary resources available ..............................................1930



–15–15–13Outlays (gross) ......................................................................3020..................................–1Recoveries of prior year unpaid obligations, expired .............3041

111Unpaid obligations, end of year .................................................3050

59DEPARTMENT OF AGRICULTUREExecutive Operations

Federal Funds

OFFICE OF HEARINGS AND APPEALS—Continued



Memorandum (non-add) entries:112Obligated balance, start of year ............................................3100111Obligated balance, end of year ..............................................3200





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 2018 Budget requests $14.7million and reflects this realignment.



Direct obligations:9109Personnel compensation: Full-time permanent .........................11.1332Civilian personnel benefits ........................................................12.1322Advisory and assistance services ..............................................25.1


Employment Summary



✦

OFFICE OF BUDGET AND PROGRAM ANALYSIS

For necessary expenses of the Office of Budget and Program Analysis, $9,093,000.Note.—A full-year 2017 appropriation for this account was not enacted at the time the budget




Obligations by program activity:998Office of Budget and Program Analysis (Direct) ........................0005





998New obligations, unexpired accounts ....................................3010

–9–9–8Outlays (gross) ......................................................................3020



998Outlays from new discretionary authority ..........................4010999Budget authority, net (total) ..........................................................4180998Outlays, 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 2018 Budget requests $9.1 million.



Direct obligations:665Personnel compensation: Full-time permanent .........................11.1222Civilian personnel benefits ........................................................12.1111Other goods and services from Federal sources ........................25.3


Employment Summary



✦

COMMON COMPUTING ENVIRONMENT




111Unobligated balance brought forward, Oct 1 .........................1000111Total budgetary resources available ..............................................1930


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

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

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:454649Administration ..........................................................................0801966Communications .......................................................................0802

324346355Finance and management .........................................................0803445467478Information technology ..............................................................0804

343Executive secretariat .................................................................0805

826869891Reimbursable program activities, subtotal ...................................0809203315Capital Funding Availability ......................................................081510146Proceeds from Purchase Card Rebate Programs .......................0816

304721Reimbursable program activities - Purchase of Equipment (Capital),

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


THE BUDGET FOR FISCAL YEAR 201860 Executive Operations—ContinuedFederal Funds—Continued



Spending authority from offsetting collections, discretionary:856869943Collected ...........................................................................1700

..................................–24Change in uncollected payments, Federal sources ............1701

856869919Spending auth from offsetting collections, disc (total) .........17509601,0201,063Total budgetary resources available ..............................................1930




–932–927–922Outlays (gross) ......................................................................3020


–210–210–234Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060..................................24Change in uncollected pymts, Fed sources, unexpired ..........3070


728369Obligated balance, start of year ............................................3100–47283Obligated balance, end of year ..............................................3200








..................................24Change in uncollected pymts, Fed sources, unexpired .......40507658–21Outlays, net (discretionary) .......................................................4080

...................................................Budget authority, net (total) ..........................................................41807658–21Outlays, 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:

128126117Full-time permanent - OCFO .................................................11.1919184Full-time permanent - OCIO ..................................................11.1181816Full-time permanent - DA OES OC .........................................11.1

..................................1Other than full-time permanent ............................................11.3778Other personnel compensation - OCFO ..................................11.5222Other personnel compensation - OCIO ...................................11.5111Other personnel compensation - DA OES OC .........................11.5

247245229Total personnel compensation ...........................................11.9474643Civilian personnel benefits OCFO ..............................................12.1303128Civilian personnel benefits OCIO ...............................................12.1665Civilian personnel benefits - DA OES OC ...................................12.1222Travel and transportation of persons OCFO ...............................21.0332Travel and transportation of persons - OCIO .............................21.0111Transportation of things - DA OES OC .......................................22.0222Rental payments to GSA - OCFO ................................................23.1545Rental payments to GSA - OCIO .................................................23.1111Rental payments to GSA - DA OES OC .......................................23.1879Rental payments to others - OCFO ............................................23.2

..................................15Rental payments to others - OCIO .............................................23.2

..................................1Rental payments to others - DA OES OC ....................................23.2

785Communications, utilities, and miscellaneous charges -

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

919081Communications, utilities, and miscellaneous charges -

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

331Communications, utilities, and miscellaneous charges - DA OES

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

.................11Advisory and assistance services ..............................................25.1

..................................89Other services from non-Federal sources - OCFO ......................25.2

..................................143Other services from non-Federal sources - OCIO .......................25.2

..................................13Other services from non-Federal sources - DA OES OC ..............25.210311658Other goods and services from Federal sources - OCFO ............25.315417927Other goods and services from Federal sources - OCIO .............25.3222113Other goods and services from Federal sources - DA OES OC .....25.3323Operation and maintenance of facilities ...................................25.4

162825Operation and maintenance of equipment - OCFO ....................25.7625858Operation and maintenance of equipment - OCIO .....................25.7211Operation and maintenance of equipment - DA OES OC ............25.7111Supplies and materials - OCFO .................................................26.0112Supplies and materials - OCIO ..................................................26.0223Supplies and materials - DA OES OC .........................................26.02310Equipment - OCFO .....................................................................31.05730Equipment - OCIO .....................................................................31.0

3047.................Equipment - Availability ............................................................31.0..................................5Land and structures ..................................................................32.0


Employment Summary


2,9272,9112,601Reimbursable civilian full-time equivalent employment ...............2001

✦

OFFICE OF CHIEF INFORMATION OFFICERFederal Funds

OFFICE OF THE CHIEF INFORMATION OFFICER

For necessary expenses of the Office of the Chief Information Officer, $58,950,000.Note.—A full-year 2017 appropriation for this account was not enacted at the time the budget




Obligations by program activity:311716Office of the Chief Information Officer ......................................0001282828Homeland Security ....................................................................0002

594544Total direct obligations ..................................................................0799363639Office of the Chief Information Officer (Reimbursable) .............0801





..................................13Change in uncollected payments, Federal sources ............1701





..................................–1Recoveries of prior year unpaid obligations, expired .............3041




–1518Obligated balance, start of year ............................................3100

61DEPARTMENT OF AGRICULTUREOffice of Chief Information Officer

Federal Funds

OFFICE OF THE CHIEF INFORMATION OFFICER—Continued



–14–151Obligated balance, end of year ..............................................3200






Additional offsets against gross budget authority only:..................................–13Change in uncollected pymts, Fed sources, unexpired .......4050..................................10Offsetting collections credited to expired accounts ...........4052


594545Budget authority, net (discretionary) .........................................4070586152Outlays, net (discretionary) .......................................................4080594545Budget authority, net (total) ..........................................................4180586152Outlays, 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 2018 Budget requests $59 million.



Direct obligations:151312Personnel compensation: Full-time permanent .........................11.1444Civilian personnel benefits ........................................................12.1111Rental payments to GSA ............................................................23.1

211411Other services from non-Federal sources ..................................25.2171215Other goods and services from Federal sources ........................25.3111Equipment .................................................................................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, $5,836,000.Note.—A full-year 2017 appropriation for this account was not enacted at the time the budget




Obligations by program activity:666Office of the Chief Financial Officer (Direct) .............................0001





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


..................................–2Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060

..................................2Change in uncollected pymts, Fed sources, expired ..............3071Memorandum (non-add) entries:

22.................Obligated balance, start of year ............................................3100222Obligated balance, end of year ..............................................3200





Offsetting collections (collected) from:..................................–1Federal sources .................................................................4030


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


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 2018 Budget requests $5.8 million.



Direct obligations:555Personnel compensation: Full-time permanent .........................11.1111Other services from non-Federal sources ..................................25.2

666Direct obligations ..................................................................99.0


Employment Summary



✦

OFFICE OF CIVIL RIGHTSFederal Funds

OFFICE OF CIVIL RIGHTS

For necessary expenses of the Office of Civil Rights, $23,304,000.Note.—A full-year 2017 appropriation for this account was not enacted at the time the budget

was prepared; therefore, the budget assumes this account is operating under the Further Continu-

THE BUDGET FOR FISCAL YEAR 201862 Office of Chief Information Officer—ContinuedFederal Funds—Continued

ing Appropriations Act, 2017 (P.L. 114–254). The amounts included for 2017 reflect the annu-alized level provided by the continuing resolution.



Obligations by program activity:232424Office of Civil Rights (Direct) ....................................................0001555Office of Civil Rights (Reimbursable) ........................................0801









–28–34–27Outlays (gross) ......................................................................3020




–23–1Obligated balance, start of year ............................................3100–2–23Obligated balance, end of year ..............................................3200



282924Outlays from new discretionary authority ..........................4010.................53Outlays from discretionary balances .................................4011



Additional offsets against gross budget authority only:..................................–2Change in uncollected pymts, Fed sources, unexpired .......4050.................53Offsetting collections credited to expired accounts ...........4052

.................51Additional offsets against budget authority only (total) ........4060


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 2018 Budgetrequests $23.3 million.



Direct obligations:121312Personnel compensation: Full-time permanent .........................11.1444Civilian personnel benefits ........................................................12.1222Rental payments to GSA ............................................................23.1113Other services from non-Federal sources ..................................25.2333Other goods and services from Federal sources ........................25.3


111Adjustment for rounding ...........................................................99.5


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.), $3,503,000, 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:449Hazardous materials management ...........................................0001


11.................Unobligated balance brought forward, Oct 1 .........................1000..................................2Recoveries of prior year unpaid obligations ...........................1021..................................4Recoveries of prior year paid obligations ...............................1033






–6–11–5Outlays (gross) ......................................................................3020..................................–2Recoveries of prior year unpaid obligations, unexpired .........3040








Additional offsets against gross budget authority only:


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

444Budget authority, net (discretionary) .........................................40706111Outlays, net (discretionary) .......................................................4080444Budget authority, net (total) ..........................................................4180

63DEPARTMENT OF AGRICULTUREHazardous Materials Management

Federal Funds

HAZARDOUS MATERIALS MANAGEMENT—Continued



6111Outlays, net (total) ........................................................................4190

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 2018 Budget requests $3.5 million.



Direct obligations:111Personnel compensation: Full-time permanent .........................11.1338Other goods and services from Federal sources ........................25.3


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, $62,145,000, toremain available until expended, for buildings operations and maintenance expenses.




Obligations by program activity:506945Building Operations and Maintenance ......................................0002121212Homeland Security Database ....................................................0003

628157Total direct obligations ..................................................................0799

886Agriculture Buildings and Facilities and Rental Payments

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



102216Unobligated balance brought forward, Oct 1 .........................1000..................................1Recoveries of prior year unpaid obligations ...........................1021

102217Unobligated balance (total) ......................................................1050


626464Appropriation ....................................................................1100.................5.................Reappropriation ................................................................1105

626964Appropriation, discretionary (total) .......................................1160Spending authority from offsetting collections, discretionary:

887Collected ...........................................................................1700..................................–3Change in uncollected payments, Federal sources ............1701















Additional offsets against gross budget authority only:..................................3Change in uncollected pymts, Fed sources, unexpired .......4050


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 2018 Budgetrequests $62.1 million for operations and maintenance.



Direct obligations:999Personnel compensation: Full-time permanent .........................11.1333Civilian personnel benefits ........................................................12.1886Communications, utilities, and miscellaneous charges ............23.3

182617Other services from non-Federal sources ..................................25.2343Other goods and services from Federal sources ........................25.3

213018Operation and maintenance of facilities ...................................25.4..................................1Supplies and materials .............................................................26.0


.................1.................Adjustment for rounding ...........................................................99.5


Employment Summary



✦

THE BUDGET FOR FISCAL YEAR 201864 Hazardous Materials Management—ContinuedFederal Funds—Continued

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, $92,689,000, 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:939693Office of the Inspector General ..................................................0001333Office of Inspector General (Reimbursable) ...............................0801







445Spending auth from offsetting collections, disc (total) .........175097100101Budget authority (total) .............................................................1900

109111110Total budgetary resources available ..............................................1930Memorandum (non-add) entries:

..................................–3Unobligated balance expiring ................................................1940131211Unexpired unobligated balance, end of year ..........................1941


121615Unpaid obligations, brought forward, Oct 1 ..........................3000969996New obligations, unexpired accounts ....................................3010112Obligations ("upward adjustments"), expired accounts ........3011



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








Additional offsets against gross budget authority only:..................................–3Change in uncollected pymts, Fed sources, unexpired .......4050


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 2018 Budget requests $92.7 million.



Direct obligations:515353Personnel compensation: Full-time permanent .........................11.1212121Civilian personnel benefits ........................................................12.1333Travel and transportation of persons .........................................21.0776Communications, utilities, and miscellaneous charges ............23.3665Other services from non-Federal sources ..................................25.2342Other goods and services from Federal sources ........................25.3111Supplies and materials .............................................................26.0112Equipment .................................................................................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, $42,970,000.

OFFICE OF ETHICS

For necessary expenses of the Office of Ethics, $3,538,000.Note.—A full-year 2017 appropriation for this account was not enacted at the time the budget




Obligations by program activity:474848Office of the General Counsel ....................................................0001444Office of the General Counsel (Reimbursable) ...........................0801





515252Budget authority (total) .............................................................1900515252Total budgetary resources available ..............................................1930





65DEPARTMENT OF AGRICULTUREOffice of the General Counsel

Federal Funds

OFFICE OF THE GENERAL COUNSEL—Continued




..................................–1Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060

..................................1Change in uncollected pymts, Fed sources, expired ..............3071Memorandum (non-add) entries:






Offsetting collections (collected) from:–4–4–4Federal sources .................................................................4030474848Budget authority, net (total) ..........................................................4180485348Outlays, net (total) ........................................................................4190

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 2018 Budget requests $43 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 2018 Budgetrequests $3.5 million.



Direct obligations:323333Personnel compensation: Full-time permanent .........................11.11099Civilian personnel benefits ........................................................12.1222Communications, utilities, and miscellaneous charges ............23.3133Other services from non-Federal sources ..................................25.2111Supplies and materials .............................................................26.0

464848Direct obligations ..................................................................99.0444Reimbursable obligations .....................................................99.01..................................Adjustment for rounding ...........................................................99.5


Employment Summary


222236227Direct civilian full-time equivalent employment ............................1001181917Direct civilian full-time equivalent employment ............................1001292927Reimbursable 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, $76,690,000.




Obligations by program activity:778585Economic Research Service .......................................................0001555Economic Research Service (Reimbursable) ..............................0801




Spending authority from offsetting collections, discretionary:11.................Collected ...........................................................................1700545Change in uncollected payments, Federal sources ............1701


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






–16–12–11Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060–5–4–5Change in uncollected pymts, Fed sources, unexpired ..........3070

..................................4Change in uncollected pymts, Fed sources, expired ..............3071


82332Obligated balance, start of year ............................................3100.................823Obligated balance, end of year ..............................................3200






Additional offsets against gross budget authority only:–5–4–5Change in uncollected pymts, Fed sources, unexpired .......4050


–5–4–2Additional offsets against budget authority only (total) ........4060


The Economic Research Service provides economic and other socialscience research and analysis to inform public and private decision makingon food, agriculture, natural resources, and rural America. The Agency'smission is to anticipate issues that are on the horizon, and to conduct sound,peer-reviewed economic research. ERS is also the primary source of stat-istical indicators that, among other things, gauge the health of the farmsector (including farm income estimates and projections), assess the currentand expected performance of the agricultural sector (including trade), andprovide measures of food security here and abroad. Most of the Agency'sresearch is conducted by a highly trained staff of economists and socialscientists through an intramural program of research, market outlook, andanalysis.

THE BUDGET FOR FISCAL YEAR 201866 Office of the General Counsel—ContinuedFederal Funds—Continued

Five principles characterize ERS' core program: (1) Research that buildson unique or confidential data sources at the Federal level and is inherentin the role of a Federal Statistical Agency, including the Agricultural Re-source Management Survey (ARMS) and associated farm and farmhousehold finance estimates, consumer data and related research on foodconsumption, and development of USDA's commodity market outlook;(2) Research that provides coordination for a national perspective orframework, setting a single standard; (3) Research that requires a sustainedinvestment and large teams; (4) Research that directly services the U.S.Government or USDA's long-term national goals such as the cost to theeconomy of sickness and premature death due to foodborne illnesses forFSIS, rural definition analysis for Rural development, and conservationprogram options for FSA and NCRS; and (5) Research that addressesquestions with short-run payoff or has immediate policy implications.

The 2018 budget request of $76.7 million continues to fund ERS' highestpriority core programs, including research, data, and market outlook onthe following: How investments in rural people, businesses, and communit-ies affect the capacity of rural economies to prosper in a changing globalmarketplace; economic issues related to developing natural resource policiesand programs that respond to the need to protect the environment whileenhancing agricultural competitiveness; production agriculture, domesticand international markets, and Federal farm policies, to understand theU.S. food and agriculture sector's performance; the Nation's food and nu-trition assistance programs, to study the relationships among factors thatinfluence food choices and health outcomes and to enhance methodologiesfor valuing societal benefits associated with reducing food safety risks.



Direct obligations:Personnel compensation:

343736Full-time permanent .............................................................11.1111Other than full-time permanent ............................................11.3111Other personnel compensation ..............................................11.5

363938Total personnel compensation ...........................................11.9111111Civilian personnel benefits ........................................................12.1111Travel and transportation of persons .........................................21.0777Communications, utilities, and miscellaneous charges ............23.3467Other services from non-Federal sources ..................................25.2

111414Other goods and services from Federal sources ........................25.3555Research and development contracts .......................................25.5111Supplies and materials .............................................................26.0111Grants, subsidies, and contributions ........................................41.0



Employment Summary



✦

NATIONAL AGRICULTURAL STATISTICS SERVICEFederal Funds

NATIONAL AGRICULTURAL STATISTICS SERVICE

For necessary expenses of the National Agricultural Statistics Service,$185,677,000, of which up to $63,900,000 shall be available until expended for theCensus of Agriculture: Provided, That amounts made available for the Census ofAgriculture may be used to conduct Current Industrial Report surveys subject to 7U.S.C. 2204g(d) and (f).




Obligations by program activity:113117117Agricultural estimates ...............................................................0001

999Statistical research and service ................................................0002644253Census of agriculture ................................................................0003

186168179Total direct obligations ..................................................................0799252534National Agricultural Statistics Service (Reimbursable) ...........0801



..................................11Recoveries of prior year unpaid obligations ...........................1021Budget authority:








..................................–11Recoveries of prior year unpaid obligations, unexpired .........3040










Offsetting collections (collected) from:–23–23–43Federal sources .................................................................4030–2–2–4Non-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, 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.C

67DEPARTMENT OF AGRICULTURENational Agricultural Statistics Service

Federal Funds

NATIONAL AGRICULTURAL STATISTICS SERVICE—Continued

1621–1627) 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 fora wide range of people. Users of these data include but are not limited tofarmers, ranchers and growers. Agricultural commodity markets in theU.S. and around the world, Federal, State and local policy makers, andpeople involved in planning, investment, price discovery mechanisms, re-search, and marketing decisions. Billions of dollars could be put at riskwithout these essential Agricultural Estimates statistical reports. Staff in12 Regional offices and 34 State offices serving all 50 States conduct thework to produce these commodity estimates. Cooperative arrangementswith State agencies provide additional State and county data. In order tosupport Administration priorities and improve efficiency, NASS has care-fully completed a comprehensive review of existing programs to determinewhere reductions could be taken, evaluating with the following priorities:1) Federal Principal Economic Indicator data; 2) data which directly impactcommodity markets; 3) data necessary to implement the USDA programswhich provide payments to farmers and are used to administer the farmsafety net for producers; and 4) data for which there are no other publiclyavailable sources of information. In 2016, NASS achieved several accom-plishments: 1) published the regular schedule of Agricultural EstimatesFederal Principal Economic Indicators; 2) released the first-ever Cost ofHoney bee Pollination report from operators with five or more colonies;3) conducted the Vegetable Chemical Use Survey; 4) closed the NASSdata center and migrated to the USDA Enterprise Data Center; and 5) im-plemented two-factor secure connectivity to the NASS virtual desktop en-vironment.

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 2018 Budget request includes an increase to reflect the normalactivity levels related to the cyclical nature of the 5-year Census of Agri-culture program. This represents the highest level of funding during thefive year Census cycle. NASS will also use field enumeration to collectinformation from minority and underserved populations, such as AmericanIndians and Hispanic producers. Historically, these groups have been hardto reach. In 2016, NASS achieved several accomplishments: 1) conductedLocal Foods Marketing Practices survey; 2) published four Current Agri-cultural Industrial Reports previously suspended by the Department ofCommerce; and 3) released results of the 2015 Certified Organic Survey.

The 2018 total request is $185.7 million for NASS, including $121.8million for Agricultural Estimates to: 1) conduct the essential FederalPrincipal Economic Indicator surveys; and 2) conduct other Core IntegratedSurveys and Estimates to support USDA programs.

The 2018 NASS request includes $63.9 million for the Census of Agri-culture. NASS will: 1) continue planning and preparing for the FY 2017Census of Agriculture; 2) finalize the census mail list by mailing the Na-tional Agricultural Classifications Survey to more than 1,000,000 potentialoperations to determine if they meet the farm definition.

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.





757473Total personnel compensation ...........................................11.9262524Civilian personnel benefits ........................................................12.1222Travel and transportation of persons .........................................21.0111Transportation of things ............................................................22.0

101010Communications, utilities, and miscellaneous charges ............23.3404038Other services from non-Federal sources ..................................25.2261024Other goods and services from Federal sources ........................25.3112Operation and maintenance of equipment ................................25.7111Supplies and materials .............................................................26.0444Equipment .................................................................................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,$993,144,000: Provided, That appropriations hereunder shall be available for theoperation and maintenance of aircraft and the purchase of not to exceed one forreplacement only: Provided further, That appropriations hereunder shall be availablepursuant to 7 U.S.C. 2250 for the construction, alteration, and repair of buildingsand improvements, but unless otherwise provided, the cost of constructing any onebuilding shall not exceed $500,000, except for headhouses or greenhouses whichshall each be limited to $1,500,0000, except for 10 buildings to be constructed orimproved at a cost not to exceed $1,100,000 each, and except for 2 buildings to beconstructed at a cost not to exceed $3,000,000 each, and the cost of altering anyone building during the fiscal year shall not exceed 10 percent of the current replace-ment value of the building or $500,000, whichever is greater: Provided further, Thatthe limitations on alterations contained in this Act shall not apply to modernizationor replacement of existing facilities at Beltsville, Maryland: Provided further, Thatappropriations hereunder shall be available for granting easements at the BeltsvilleAgricultural Research Center: Provided further, That the foregoing limitations shallnot apply to replacement of buildings needed to carry out the Act of April 24, 1948(21 U.S.C. 113a): Provided further, That appropriations hereunder shall be availablefor granting easements at any Agricultural Research Service location for the con-struction of a research facility by a non-Federal entity for use by, and acceptableto, the Agricultural Research Service and a condition of the easements shall be thatupon completion the facility shall be accepted by the Secretary, subject to theavailability of funds herein, if the Secretary finds that acceptance of the facility isin the interest of the United States: Provided further, That funds may be receivedfrom any State, other political subdivision, organization, or individual for the purposeof establishing or operating any research facility or research project of the Agricul-tural Research Service, as authorized by law.


THE BUDGET FOR FISCAL YEAR 201868 National Agricultural Statistics Service—ContinuedFederal Funds—Continued



66.................Balance, start of year ....................................................................0100..................................6Unavailable balance adjustment ...................................................0198

666Balance, start of year ................................................................0199

666Total: Balances and receipts .....................................................2000

666Balance, end of year ..................................................................5099



Obligations by program activity:71101101Product quality/value added .....................................................0001758787Livestock production .................................................................0002

210217218Crop production .........................................................................000393102102Food safety ................................................................................0004737373Livestock protection ..................................................................0005

159186187Crop protection ..........................................................................0006458787Human nutrition research .........................................................0007

189202203Environmental stewardship .......................................................0008222423National Agricultural Library .....................................................0009202020Repair and maintenance of facilities ........................................0010

.................55Decentralized GSA and Security Payments ................................0011363838Homeland security .....................................................................0012

.................15.................Miscellaneous Fees/Supplementals ...........................................0014

9931,1571,144Total direct obligations ..................................................................0799156156148Salaries and Expenses (Reimbursable) .....................................0881

156156148Reimbursable program activities, subtotal ...................................0889

1,1491,3131,292Total new obligations, unexpired accounts ....................................0900


.................1514Unobligated balance brought forward, Oct 1 .........................1000Budget authority:

Appropriations, discretionary:9931,1421,144Appropriation ....................................................................1100



156156156Spending auth from offsetting collections, disc (total) .........17501,1491,2981,300Budget authority (total) .............................................................19001,1491,3131,314Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................–7Unobligated balance expiring ................................................1940..................................15Unexpired unobligated balance, end of year ..........................1941


474459460Unpaid obligations, brought forward, Oct 1 ..........................30001,1491,3131,292New obligations, unexpired accounts ....................................3010

..................................15Obligations ("upward adjustments"), expired accounts ........3011–1,331–1,298–1,286Outlays (gross) ......................................................................3020







1,1491,2981,300Budget authority, gross .........................................................4000Outlays, gross:


1,3311,2981,286Outlays, gross (total) .............................................................4020Offsets against gross budget authority and outlays:


–156–156–168Offsets against gross budget authority and outlays (total) ....4040



9931,1421,144Budget authority, net (discretionary) .........................................40701,1751,1421,118Outlays, net (discretionary) .......................................................40809931,1421,144Budget authority, net (total) ..........................................................4180

1,1751,1421,118Outlays, 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 2018 Salaries and Expenses budget for ARS requests $993.1 millionwhich supports ongoing intramural research conducted by ARS. It alsoincludes proposed terminations of projects and closures of labs and researchunits.

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-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 genomic

69DEPARTMENT OF AGRICULTUREAgricultural Research Service—Continued

Federal Funds—Continued

SALARIES AND EXPENSES—Continued

databases, 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 avianimmunology; 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, and

handling 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-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.





412480481Total personnel compensation ...........................................11.9146170170Civilian personnel benefits ........................................................12.1111212Travel and transportation of persons .........................................21.0555Rental payments to GSA ............................................................23.1111Rental payments to others ........................................................23.2

394545Communications, utilities, and miscellaneous charges ............23.3222Printing and reproduction .........................................................24.0111Advisory and assistance services ..............................................25.1

THE BUDGET FOR FISCAL YEAR 201870 Agricultural Research Service—ContinuedFederal Funds—Continued


384343Operation and maintenance of facilities ...................................25.4176213199Research and development contracts .......................................25.5161819Operation and maintenance of equipment ................................25.7667575Supplies and materials .............................................................26.0445050Equipment .................................................................................31.0677Land and structures ..................................................................32.0


9931,1571,144Direct obligations ..................................................................99.0156156148Reimbursable obligations .....................................................99.0

1,1491,3131,292Total new obligations, unexpired accounts ............................99.9

Employment Summary


5,2965,9705,970Direct civilian full-time equivalent employment ............................1001532532532Reimbursable civilian full-time equivalent employment ...............2001

✦

BUILDINGS AND FACILITIES




Obligations by program activity:791568Building and facilities projects .................................................0001




Appropriations, discretionary:.................212212Appropriation ....................................................................1100

–212..................................Unobligated balance of appropriations permanently

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

–212212212Appropriation, discretionary (total) .......................................116092460256Total budgetary resources available ..............................................1930




–73–21–5Outlays (gross) ......................................................................3020




–212212212Budget authority, gross .........................................................4000Outlays, gross:

–1919.................Outlays from new discretionary authority ..........................40109225Outlays from discretionary balances .................................4011

73215Outlays, gross (total) .............................................................4020–212212212Budget authority, net (total) ..........................................................4180


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 review

of 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 2018 Budget request does not include fundingfor this account and proposes to cancel $212 million in unobligated balancesthat are no longer needed for capital improvements.

✦

Trust Funds

MISCELLANEOUS CONTRIBUTED FUNDS




Current law:

242424Deposits of Miscellaneous Contributed Funds, Science and

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


Current law:–24–24–24Miscellaneous Contributed Funds .........................................2101




Obligations by program activity:262626Miscellaneous contributed funds ..............................................0001


272728Unobligated balance brought forward, Oct 1 .........................1000221Recoveries of prior year unpaid obligations ...........................1021






–24–24–26Outlays (gross) ......................................................................3020–2–2–1Recoveries of prior year unpaid obligations, unexpired .........3040





17179Outlays from new mandatory authority .............................41007717Outlays from mandatory balances ....................................4101


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




444Full-time permanent .............................................................11.1222Other than full-time permanent ............................................11.3

71DEPARTMENT OF AGRICULTUREAgricultural Research Service—Continued

Trust Funds

MISCELLANEOUS CONTRIBUTED FUNDS—Continued

Object Classification—Continued


111Other personnel compensation ..............................................11.5

777Total personnel compensation ...........................................11.9222Civilian personnel benefits ........................................................12.1111Travel and transportation of persons .........................................21.0111Other services from non-Federal sources ..................................25.2555Research and development contracts .......................................25.5555Supplies and materials .............................................................26.0222Equipment .................................................................................31.0333Grants, 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, $20,276,000: Provided, That funds for the Foodand Agriculture Defense Initiative shall remain available until September 30, 2019:Provided further, That notwithstanding any other provision of law, indirect costsshall not be charged against any Extension Implementation Program Area grantawarded under the Crop Protection/Pest Management Program (7 U.S.C. 7626).




Obligations by program activity:141717Crop Protection/Pest Management ............................................0050

.................22Methyl bromide transition program ...........................................0070677Homeland Security ....................................................................0071

254822Emergency Citrus Research and Extension Program .................0085555151Specialty Crop Research Initiative .............................................0086

.................11Regional Rural development centers .........................................0087

.................44Organic transition .....................................................................0088201919Organic Research and Extension Initiative ................................0089








1009393Appropriations, mandatory (total) .........................................1260120124124Budget authority (total) .............................................................1900120149148Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................25Unexpired unobligated balance, end of year ..........................1941









334433Outlays, gross (total) .............................................................4020Mandatory:




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 2018 Budget includes $14.6 million for thisprogram.

Food and agriculture defense initiative (homeland security).—The pro-gram provides support and enhancement of nationally-coordinated plantand animal disease diagnostic networks and supports activities to identifyand respond to high risk biological pathogens in the food and agriculturalsystem. The 2018 Budget includes $5.7 million. Additional funding forthese laboratories is included in the Animal and Plant Health InspectionService.

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 2018, mandatory funding for the program is $20 million.

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 methodsto prevent, detect, monitor, control, and respond to potential food safetyhazards in the production and processing of specialty crops. In 2018,mandatory funding for the program is $80 million. Of the monies availablefor this program, $25 million is reserved to carry out the Emergency CitrusDisease Research and Extension Program.



Direct obligations:..................................1Personnel compensation: Full-time permanent .........................11.1.................1.................Advisory and assistance services ..............................................25.1

45.................Other services from non-Federal sources ..................................25.2..................................5Research and development contracts .......................................25.5



THE BUDGET FOR FISCAL YEAR 201872 Agricultural Research Service—ContinuedTrust Funds—Continued

Employment Summary



✦

BIOMASS RESEARCH AND DEVELOPMENT



Obligations by program activity:.................88Biomass research and development ..........................................0001

.................88Total new obligations (object class 41.0) ......................................0900


.................59Unobligated balance brought forward, Oct 1 .........................1000

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

.................510Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, mandatory:.................33Appropriations transferred from other acct [012–4336] ....1221.................813Total budgetary resources available ..............................................1930



111826Unpaid obligations, brought forward, Oct 1 ..........................3000.................88New obligations, unexpired accounts ....................................3010





.................33Budget authority, gross .........................................................4090Outlays, gross:

81515Outlays from mandatory balances ....................................4101.................33Budget 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 2018, 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, $769,613,000: 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. 450i(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.




213201184Balance, start of year ....................................................................0100..................................5Prior year receipt reconciliation .....................................................0198

213201189Balance, start of year ................................................................0199Receipts:

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




Obligations by program activity:243243244Payments under the Hatch Act ..................................................0001293434Cooperative forestry research ....................................................0002

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

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

334846Special research grants ............................................................0004349753280Agriculture Food and Research Initiative ...................................0005

.................44Animal health and disease research .........................................0006192417Federal Administration ..............................................................0007377430Higher education .......................................................................0008567Native American Institutions Endowment Fund .........................0009592Veterinary 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

.................105Capacity Building for Non-Land Grant Colleges of

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

7741,267732Total direct obligations ..................................................................0799141413Research and Education Activities (Reimbursable) ...................0801

7881,281745Total new obligations, unexpired accounts ....................................0900



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




555Appropriation (Native American Endowment Interest) ........1101

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

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


..................................1Collected ...........................................................................1700141412Change in uncollected payments, Federal sources ............1701

141413Spending auth from offsetting collections, disc (total) .........1750788837838Budget authority (total) .............................................................19007881,2811,190Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................–1Unobligated balance expiring ................................................1940..................................444Unexpired unobligated balance, end of year ..........................1941

73DEPARTMENT OF AGRICULTURENational Institute of Food and Agriculture—Continued


RESEARCH AND EDUCATION ACTIVITIES—Continued




1,5249931,029Unpaid obligations, brought forward, Oct 1 ..........................30007881,281745New obligations, unexpired accounts ....................................3010




1,5621,524993Unpaid obligations, end of year .................................................3050Uncollected payments:




1,4879701,004Obligated balance, start of year ............................................31001,5111,487970Obligated balance, end of year ..............................................3200







–14–14–12Change in uncollected pymts, Fed sources, unexpired .......4050141416Offsetting collections credited to expired accounts ...........4052



Memorandum (non-add) entries:206194182Total investments, SOY: Federal securities: Par value ...............5000218206194Total 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 2018 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 2018 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 2018 Budgetincludes $54.1million.

Special grants and other research programs.—This program addressesresearch areas of national interest. The 2018 Budget includes $11.9 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 2018 Budget also includesfunding for sustainable agriculture at $19 million. The 2018 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. The2018 Budget includes $349.3 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, NIFA proposes the AFRI to include investments onthree major foci: Sustainable Agricultural Systems, Foundational and Ap-plied Science, and Education and Workforce Development. These comple-mentary foci will support the creation, delivery, and application of theknowledge, tools, and innovations needed to tackle the broad range ofglobal agricultural challenges impacting America. Addressing these chal-lenges will engage scientists and educators with expertise in plant healthand production and plant products; animal health and production and animalproducts; food safety, nutrition, and health; bioenergy, natural resources,and environment; agricultural systems and technology; and agricultureeconomics and rural communities. AFRI allows greater flexibility in thetypes of projects funded to include: single function projects in research,education, and extension, and integrated research, education and/or exten-sion 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 2018 Budgetincludes $19.3 million.

Higher education.—The 2018 Budget proposes $19.3 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 2018 Budgetfunding is proposed for Hispanic-serving institutions education grantsprogram at $9.2 million. Funding is also proposed for Native Americaninstitutions 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 2018 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 2018 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 on

THE BUDGET FOR FISCAL YEAR 201874 National Institute of Food and Agriculture—ContinuedFederal Funds—Continued

a formula basis to the 1994 land-grant institutions. An estimated $4.7 mil-lion in interest earned in 2017 will be available to the program in 2018.

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



Direct obligations:242421Personnel compensation: Full-time permanent .........................11.1777Civilian personnel benefits ........................................................12.1231Travel and transportation of persons .........................................21.058.................Rental payments to GSA ............................................................23.1112Communications, utilities, and miscellaneous charges ............23.311.................Advisory and assistance services ..............................................25.1367Other services from non-Federal sources ..................................25.211.................Other goods and services from Federal sources ........................25.3

..................................1Operation and maintenance of facilities ...................................25.4475Research and development contracts .......................................25.5

7261,209688Grants, subsidies, and contributions ........................................41.0

7741,267732Direct obligations ..................................................................99.0141413Reimbursable obligations .....................................................99.0

7881,281745Total new obligations, unexpired accounts ............................99.9

Employment Summary



✦








.................22Unpaid obligations, brought forward, Oct 1 ..........................3000

.................–2.................Outlays (gross) ......................................................................3020

..................................2Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

.................22Obligated balance, start of year ............................................3100

..................................2Obligated balance, end of year ..............................................3200


Outlays, gross:.................2.................Outlays from discretionary balances .................................4011...................................................Budget authority, net (total) ..........................................................4180.................2.................Outlays, 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, $462,890,000: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:299299300Smith-Lever Act, 3(b) and 3(c) ..................................................0001

888Youth at risk ..............................................................................0002686868Expanded food and nutrition education program (EFNEP) .........0004

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

464646Payments to 1890 colleges and Tuskegee Univ. and West Virginia

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

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

2034421890 facilities (section 1447) ...................................................00194441994 institutions activities .......................................................0022

.................22Rural health and safety education ............................................0024555Risk management education .....................................................0026

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

202020Beginning Farmers and Ranchers Program ...............................0031555Food Safety Outreach Program ..................................................0032

251919Food Insecurity Nutrition Incentive Program ..............................0033

513533542Total direct obligations ..................................................................0799161614Extension Activities (Reimbursable) ..........................................0801




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





454040Appropriations transferred from other acct [012–4336] ....1221

















479491490Budget authority, gross .........................................................4000

75DEPARTMENT OF AGRICULTURENational Institute of Food and Agriculture—Continued


EXTENSION ACTIVITIES—Continued



Outlays, gross:293301152Outlays from new discretionary authority ..........................4010346179314Outlays from discretionary balances .................................4011










Outlays, gross:773Outlays from new mandatory authority .............................4100

563925Outlays 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 2018 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 2018 Budget includes $45.5 millionand provides funds to support the Extension's infrastructure.

1890 Facilities.—The 2018 Budget includes $19.7 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 Tribes

Extension Program. The 2018 Budget includes $79.2 million for theseprograms.

Other Extension Programs.—Other Extension programs supported in the2018 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 2018 Budget includes $8.3 million,which includes $0.6 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 2018, mandatory funding for the program is$20 million.

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 2018, 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 2018, mandatory funding for the program is $25 million.

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



Direct obligations:111110Personnel compensation: Full-time permanent .........................11.1442Civilian personnel benefits ........................................................12.122.................Travel and transportation of persons .........................................21.0

..................................5Communications, utilities, and miscellaneous charges ............23.31111.................Other services from non-Federal sources ..................................25.2118Research and development contracts .......................................25.5




Employment Summary



✦

THE BUDGET FOR FISCAL YEAR 201876 National Institute of Food and Agriculture—ContinuedFederal Funds—Continued

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), $810,000,000, 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 for cost share purposes or for debt retirement for active eradication zones;of which $35,272,000, to remain available until expended, shall be for Animal HealthTechnical Services; of which $696,000 shall be for activities under the authority ofthe Horse Protection Act of 1970, as amended (15 U.S.C. 1831); of which$55,235,000, 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 $148,033,000, to remain available untilexpended, shall be for specialty crop pests; of which, $8,809,000, to remain availableuntil expended, shall be for field crop and rangeland ecosystem pests; of which$30,000,000, to remain available until expended, shall be for tree and wood pests;of which $3,965,000, to remain available until expended, shall be for the NationalVeterinary Stockpile; of which up to $1,500,000, to remain available until expended,shall be for the scrapie program for indemnities; of which $2,500,000, to remainavailable until expended, shall be for the wildlife damage management program foraviation safety: Provided, That of amounts available under this heading for wildlifeservices methods development, $1,000,000 shall remain available until expended:Provided further, That of amounts available under this heading for the screwwormprogram, $4,990,000 shall remain available until expended: Provided further, Thatno funds shall be used to formulate or administer a brucellosis eradication programfor the current fiscal year that does not require minimum matching by the States ofat least 40 percent: Provided further, That this appropriation shall be available forthe operation and maintenance of aircraft and the purchase of not to exceed five,of which two shall be for replacement only: Provided further, That in addition, inemergencies which threaten any segment of the agricultural production industry ofthis country, the Secretary may transfer from other appropriations or funds availableto the agencies or corporations of the Department such sums as may be deemednecessary, to be available only in such emergencies for the arrest and eradicationof contagious or infectious disease or pests of animals, poultry, or plants, and forexpenses in accordance with sections 10411 and 10417 of the Animal Health Pro-tection Act (7 U.S.C. 8310 and 8316) and sections 431 and 442 of the Plant Protec-tion Act (7 U.S.C. 7751 and 7772), and any unexpended balances of funds transferredfor such emergency purposes in the preceding fiscal year shall be merged with suchtransferred amounts: Provided further, That appropriations hereunder shall beavailable pursuant to law (7 U.S.C. 2250) for the repair and alteration of leasedbuildings and improvements, but unless otherwise provided the cost of altering anyone building during the fiscal year shall not exceed 10 percent of the current replace-ment value of the building.

In fiscal year 2018, 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.




342828Balance, start of year ....................................................................0100Receipts:

Current law:7457456861990 Food, Agricultural Quarantine Inspection Fees .............1110


Current law:–745–745–686Salaries and Expenses ..........................................................2101

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

.................5145Salaries and Expenses ..........................................................2132

–745–739–686Total current law appropriations .......................................2199

–745–739–686Total appropriations ..................................................................2999




Obligations by program activity:298297289Animal Health ...........................................................................0001267315321Plant Health ..............................................................................000276120120Wildlife Services ........................................................................0003353535Regulatory Management ...........................................................0004181819Emergency Management ...........................................................0005373737Safe Trade and International Technical Assistance ...................0006292929Animal Welfare ..........................................................................0007525252Agency-Wide Programs ..............................................................00084045120Emergency Program Funding .....................................................0010

240240227Agricultural Quarantine Inspection User Fees ...........................0011.................23H1N1 Transfer From HHS ...........................................................0012.................51Citrus Greening - GP 764 ..........................................................0013

755855Farm Bill, Section 10007 ...........................................................0014

1,1671,2531,308Total direct program ......................................................................0100

1,1671,2531,308Total direct obligations ..................................................................0799189188186Salaries and Expenses (Reimbursable) .....................................0801



384476581Unobligated balance brought forward, Oct 1 .........................1000.................341458Discretionary unobligated balance brought fwd, Oct 1 ......1001..................................43Recoveries of prior year unpaid obligations ...........................1021



Appropriations, mandatory:745745686Appropriation (AQI User Fees) ...........................................1201

.................4545Appropriation (previously unavailable) .............................1203–535–535–450Appropriations transferred to other accts [070–0530] .......1220





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















77DEPARTMENT OF AGRICULTUREAnimal and Plant Health Inspection Service

Federal Funds





9991,0861,076Budget authority, gross .........................................................4000Outlays, gross:




–141–140–139Non-Federal sources .........................................................4033





810898900Budget authority, net (discretionary) .........................................40708671,1451,174Outlays, net (discretionary) .......................................................4080


Outlays, gross:226215175Outlays from new mandatory authority .............................4100486597Outlays from mandatory balances ....................................4101

274280272Outlays, gross (total) .............................................................41101,0951,1611,195Budget authority, net (total) ..........................................................41801,1411,4251,446Outlays, 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 protect the health and value of U.S. agricultural and otheranimal and plant 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 enterthe United States, APHIS works cooperatively with other Federal, State,Tribal and industry partners to rapidly diagnose them and determine ifthere is a need to establish new pest or disease management programs.APHIS, in conjunction with States, Tribes, industry, and other stakeholders,protects American agriculture by eradicating harmful pests and diseasesor, where eradication is not feasible, by minimizing their economic impact.The Agency monitors endemic pests and diseases through surveys to detecttheir locations and works with States, Tribes, and other programs to imple-ment controls and conduct outreach to prevent the spread of pests and dis-eases into non-infested parts of the country. The Agency maintains a cadreof trained professionals prepared to respond immediately to potential animaland plant health emergencies. Program personnel investigate reports ofsuspected presence of foreign and exotic pests and diseases and work withpartners to determine an appropriate course of action, including emergencyaction if necessary. APHIS conducts diagnostic laboratory activities thatsupport the Agency's animal disease and plant pest prevention, detection,control, and eradication programs. The Agency also provides and directstechnology development to support animal and plant protection programsof the Agency and its cooperators at the State, Tribal, national, and interna-tional levels. APHIS provides technical and some operational assistanceto States, Tribes, and local entities in reducing wildlife damage to naturaland agricultural resources. Finally, the Agency's regulations allow the be-nefits of genetic research to safely enter the marketplace, while protectingagainst the release of potentially harmful organisms into the environment.

Safe Trade and International Technical Assistance.—Sanitary (animal)and phytosanitary (plant) (SPS) regulations can have a significant impact

on market access for the United States as an exporter of agriculturalproducts. APHIS plays a central role in resolving technical trade issues toensure 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. APHIS developsand implements programs designed to identify and reduce agricultural pestand disease threats while they are still outside of U.S. borders, to enhancesafe agricultural trade, and to strengthen emergency response preparedness.

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' 2018 budget request is $810 million, a reduction of approximately$83 million from 2017. The Agency has made progress towards eradicationof the pink bollworm and requires less resources for its Cotton Pests pro-gram. We will continue to address the boll weevil in affected areas. TheAgency also proposes a decrease where Congress provided additionalfunding for specific non-recurring investments. Additionally, APHIS pro-poses decreases to reduce the Federal share of funding for certain planthealth and wildlife services programs, resulting in a more equitable Federalcost-share for efforts that provide local benefits. APHIS works as a partnerwith its cooperators at the State, local, and industry levels to achieveoverall program goals; it is expected that cooperators contribute their shareof responsibility by devoting appropriate resources towards the effort. TheAgency proposes to maintain funding for its other programs and functions.





453468461Total personnel compensation ...........................................11.9158161154Civilian personnel benefits ........................................................12.1

111Benefits for former personnel ....................................................13.0343637Travel and transportation of persons .........................................21.0122Transportation of things ............................................................22.0

848585Rent, Communications, and Utilities .........................................23.1111Printing and reproduction .........................................................24.0

367417438Other services from non-Federal sources ..................................25.2404666Supplies and materials .............................................................26.0233133Equipment .................................................................................31.0112Other grants, subsidies, and contributions ...............................41.03327Other insurance claims and indemnities ...................................42.0111Interest and dividends ..............................................................43.0

1,1671,2531,308Direct obligations ..................................................................99.0189188186Reimbursable obligations .....................................................99.0


Employment Summary


5,7836,1195,834Direct civilian full-time equivalent employment ............................10011,7551,7301,710Reimbursable 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.

THE BUDGET FOR FISCAL YEAR 201878 Animal and Plant Health Inspection Service—ContinuedFederal Funds—Continued




Obligations by program activity:338Buildings and facilities .............................................................0001
















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 2018 Budget proposes about $2.9 million whichincludes funding to address safety issues with several facilities.

✦

Trust Funds

MISCELLANEOUS TRUST FUNDS




Current law:997Deposits of Miscellaneous Contributed Funds, APHIS ............1130

..................................1Foreign Service National Separation Liability Trust Fund,

APHIS ................................................................................1140

998Total current law receipts ..................................................1199

998Total receipts .............................................................................1999


Current law:–9–9–8Miscellaneous Trust Funds ....................................................2101




Obligations by program activity:9109Miscellaneous trust funds .........................................................0001



Appropriations, mandatory:998Appropriation (special or trust fund) .................................1201





–9–12–8Outlays (gross) ......................................................................3020







Trust funds are deposited in this account and used to cover the costs as-sociated with inspecting and preclearing certain fruits, vegetables, flowerbulbs, and other products in foreign countries before they are shipped tothe United States. Funds are received from grower or exporting associationsor foreign government entities to cover the Agency's inspection and pre-clearance activities and must be deposited in advance of the service.



Direct obligations:565Personnel compensation: Full-time permanent .........................11.1111Civilian personnel benefits ........................................................12.1222Travel and transportation of persons .........................................21.0111Supplies 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),$1,038,069,000; 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-

79DEPARTMENT OF AGRICULTUREFood Safety and Inspection Service

Federal Funds

FOOD SAFETY AND INSPECTION SERVICE—Continued

structure system shall remain available until expended: Provided further, That nofewer than 148 full-time equivalent positions shall be employed during fiscal year2018 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:1,0381,0131,023Salaries and expenses ...............................................................0001201246247Salaries and Expenses (Reimbursable) .....................................0801





Appropriations, discretionary:1,0381,0131,015Appropriation ....................................................................1100

Spending authority from offsetting collections, discretionary:188180201Collected ...........................................................................170010.................8Change in uncollected payments, Federal sources ............1701









–45–45–39Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060–10.................–8Change in uncollected pymts, Fed sources, unexpired ..........3070






1,0551,0191,041Outlays from new discretionary authority ..........................4010180177195Outlays from discretionary balances .................................4011





–10.................–8Change in uncollected pymts, Fed sources, unexpired .......4050113.................Offsetting collections credited to expired accounts ...........4052

13–8Additional offsets against budget authority only (total) ........4060

1,0381,0131,015Budget authority, net (discretionary) .........................................40701,0361,0131,035Outlays, net (discretionary) .......................................................40801,0381,0131,015Budget authority, net (total) ..........................................................41801,0361,0131,035Outlays, net (total) ........................................................................4190

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 2018 Budget proposes $1.04 billion for inspec-tion of meat, poultry and egg products, which is a $25 million increaseabove 2017. With these funds, FSIS will support Federal, in-plant andother frontline personnel, the Federal share of State inspection programs,its data infrastructure, and 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.

FEDERALLY FUNDED INSPECTION ACTIVITIES2018 est.2017 est.2016

ACTUALFEDERALLY INSPECTED ESTABLISHMENTS:

999Slaughter only Establishments .................................................................3,9203,9203,919Processing only Establishments ...............................................................970970966Combination Slaughter and Processing Establishments ..........................340340340Talmadge-Aiken Plants .............................................................................130130128Import Establishments .............................................................................909092Egg Plants ................................................................................................

840840838Other Establishments ...............................................................................

FEDERALLY INSPECTED and PASSED PRODUCTION (millions ofpounds):

47,59847,59847,598Meat Slaughter .........................................................................................60,17060,17060,170Poultry Slaughter ......................................................................................2,3002,3002,303Egg Products ............................................................................................

IMPORT/EXPORT ACTIVITY (millions of pounds):

5,0605,0605,060Meat and Poultry Imported .......................................................................15,92515,92515,925Meat and Poultry Exported ........................................................................

STATES AND TERRITORIES with COOPERATIVE PROGRAMS:

272727Intrastate Inspection1 ...............................................................................999Talmadge-Aiken Inspection ......................................................................

1,7001,7001,649Number of Slaughter and/or Processing Plants (excludes exemptplants) ......................................................................................................

COMPLIANCE ACTIVITIES:

16,75016,75016,750Investigations and Surveillance Activities: ...............................................1,4501,4501,450Enforcement Actions Completed ...............................................................

LABORATORY SAMPLING:

72,90072,90072,900Microbiology (Samples Analyzed) ..............................................................188,580188,580188,580Microbiology (Tests Performed) .................................................................256,332256,332256,332Microbiology (Analytes Analyzed) ..............................................................12,91012,91012,910Chemistry (Samples Analyzed) .................................................................37,72637,72637,726Chemistry (Tests Performed) .....................................................................

1,500,6581,500,6581,500,658Chemistry (Analytes Analyzed) ..................................................................4,9594,9594,959Pathology Samples (Samples Analyzed) ...................................................

CONSUMER EDUCATION and PUBLIC OUTREACH:

54,00052,00052,000Meat and Poultry Hotline Calls Received ..................................................18,000,00017,500,00017,000,000Website Visits ...........................................................................................

17,00016,50016,500Electronic Messages Received ..................................................................443,000443,000443,000Publications Distributed ...........................................................................299,000259,912222,533E-mail Alert Service Subscribers ..............................................................

EPIDEMIOLOGICAL INVESTIGATIONS:

303028Cooperative Efforts with State and Public Health Offices .........................

1,5001,5001,543Illnesses Reported and Treated2 ...............................................................

1States with cooperative agreements which are operating programs.2Data must be collected over a number of years to chart national trends and estimate the incidence of foodborne illnessand treatment.

THE BUDGET FOR FISCAL YEAR 201880 Food Safety and Inspection Service—ContinuedFederal Funds—Continued






111Benefits for former personnel ....................................................13.0383939Travel and transportation of persons .........................................21.0333Transportation of things ............................................................22.0

101010Rental payments to GSA ............................................................23.1101013Communications, utilities, and miscellaneous charges ............23.3111Printing and reproduction .........................................................24.0333Advisory and assistance services ..............................................25.1

343440Other services from non-Federal sources ..................................25.2444444Other goods and services from Federal sources ........................25.3111Operation and maintenance of facilities ...................................25.4111Operation and maintenance of equipment ................................25.7

131212Supplies and materials .............................................................26.0444Equipment .................................................................................31.0

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



Employment Summary



✦

Trust Funds

EXPENSES AND REFUNDS, INSPECTION AND GRADING OF FARM PRODUCTS



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

Current law:

131313Deposits of Fees, Inspection and Grading of Farm Products,

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


Current law:

–11–11–13Expenses and Refunds, Inspection and Grading of Farm

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

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



Obligations by program activity:

111111Expenses and refunds, inspection and grading of farm

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






111111New obligations, unexpired accounts ....................................3010–11–11–11Outlays (gross) ......................................................................3020



111110Outlays from new mandatory authority .............................4100..................................1Outlays 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.




555Full-time permanent .............................................................11.1444Other personnel compensation ..............................................11.5



Employment Summary



✦

GRAIN INSPECTION, PACKERS AND STOCKYARDSADMINISTRATION

Federal Funds


For necessary expenses of the Grain Inspection, Packers and Stockyards Admin-istration, $42,975,000: Provided, That this appropriation shall be available pursuantto law (7 U.S.C. 2250) for the alteration and repair of buildings and improvements,but the cost of altering any one building during the fiscal year shall not exceed 10percent of the current replacement value of the building.




Obligations by program activity:232343Packers and stockyards program ..............................................00012020.................Grain regulatory program ..........................................................0002



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


Spending authority from offsetting collections, discretionary:33.................Collected ...........................................................................1700


Memorandum (non-add) entries:63.................Unexpired unobligated balance, end of year ..........................1941

81DEPARTMENT OF AGRICULTUREGrain Inspection, Packers and Stockyards Administration

Federal Funds














Offsetting collections (collected) from:–3–3.................Federal sources .................................................................4030434343Budget authority, net (total) ..........................................................4180434343Outlays, net (total) ........................................................................4190

The Grain Inspection, Packers and Stockyards Administration's (GIPSA)Federal Grain Inspection Service promotes and enforces the accurate anduniform application of the United States Grain Standards Act (USGSA)and applicable provisions of the Agricultural Marketing Act of 1946. GIPSAidentifies, evaluates, and implements new or improved techniques formeasuring grain quality. GIPSA also establishes and updates testing andgrading standards to facilitate the marketing of U.S. grain, oilseeds, andrelated products. GIPSA briefs foreign buyers, assesses foreign inspectionand weighing techniques, and responds to foreign quality and quantitycomplaints.

GIPSA's Packers and Stockyards Program (P&SP) promotes fair businesspractices, financial integrity, and competitive environments to marketlivestock, meat, and poultry. Through its oversight activities, includingmonitoring programs, reviews, and investigations, P&SP fosters fair com-petition, provides payment protection, and guards against deceptive andfraudulent trade practices that affect the movement and price of meat anim-als and their products. P&SP's work protects consumers and members ofthe livestock, meat, and poultry industries. P&SP enforces the Packers andStockyards (P&S) Act, which prohibits unfair, deceptive, and unjust dis-criminatory practices by market agencies, dealers, stockyards, packers,swine contractors, and live poultry dealers in the livestock, meat packing,and poultry industries. The P&S Act provides an important safety net forlivestock producers and poultry growers in rural America. P&SP conductsroutine and ongoing regulatory inspections and audits to assess whethersubject entities are operating in compliance with the Act, and conducts in-vestigations of potential P&S Act violations identified by either industrycomplaints or previous GIPSA regulatory inspections.

MAIN WORKLOAD FACTORS2018 est.2017 est.2016 actualFederal Grain Inspection Service, Grain Regulatory Program:

129129129U.S. standards and factors (attribute tests) in effect at end of year .....81010Standards reviews and factors in progress ..........................................5610Standards reviews and factors completed ...........................................776On-site investigations ..........................................................................

141418Designations renewed ..........................................................................10010099Registration certificates issued ...........................................................

Packers and Stockyards Program:2,3002,3002,295Investigations ......................................................................................2,2002,2002,192Regulatory Activities ............................................................................5,8805,8805,881Livestock market agencies/dealers registered ......................................1,2601,2601,261Stockyards subject to the Act ...............................................................4,1904,1944,451Slaughtering and processing packers subject to the Act (estimated) ...

2,7602,7602,783Meat distributors, brokers, and dealers subject to the Act

(estimated) ......................................................................................132132133Poultry operations subject to the Act ....................................................



Direct obligations:262524Personnel compensation: Full-time permanent .........................11.1888Civilian personnel benefits ........................................................12.1111Travel and transportation of persons .........................................21.0333Rental payments to GSA ............................................................23.1

.................11Other services from non-Federal sources ..................................25.2445Other goods and services from Federal sources ........................25.3111Supplies and materials .............................................................26.0


Employment Summary



✦

LIMITATION ON INSPECTION AND WEIGHING SERVICES EXPENSES




Obligations by program activity:605551Limitation on inspection and weighing services ........................0801




Spending authority from offsetting collections, mandatory:585858Collected ...........................................................................1800

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

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

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

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

585854Spending auth from offsetting collections, mand (total) .......1850939083Total budgetary resources available ..............................................1930








–5–2–3Obligated balance, start of year ............................................3100–3–5–2Obligated balance, end of year ..............................................3200



585346Outlays from new mandatory authority .............................4100.................54Outlays from mandatory balances ....................................4101





THE BUDGET FOR FISCAL YEAR 201882 Grain Inspection, Packers and Stockyards Administration—ContinuedFederal Funds—Continued


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

..................................–8Outlays, net (mandatory) ...........................................................4170

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

..................................–8Outlays, net (total) ........................................................................4190


The Grain Inspection, Packers and Stockyards Administration (GIPSA)provides a uniform system for the inspection and weighing of grain formarketing and trade purposes. Services provided under this system accur-ately 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 GIPSAemployees at certain export ports as well as the inspection of U.S. grainshipped through Canada. GIPSA supervises the inspection and weighingactivities performed by its own employees. FGIS 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. GIPSA provides an appeal service of originalgrain inspections and a registration system for the grain exporting firms.Through support from the Association of American Railroads and userfees, GIPSA conducts a railroad track scale testing program. In addition,GIPSA provides grading services, on request, for rice and grain relatedproducts under the authority of the Agricultural Marketing Act of 1946.

The Budget proposes eliminating the obligation limitation on fees collec-ted from inspection and weighing services in order to allow GIPSA 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 beeliminated. The elimination of the cap will provide GIPSA with the flexib-ility needed to respond to market needs.

2018 est.2017 est.2016 actualExport grain inspected and/or weighed (million metric tons):

86.08885.7By Federal personnel ............................................................................48.05047.3By delegated states/official agencies ..................................................

188.0190188.9Quantity of grain inspected (official inspections) domestically (millionmetric tons) ..............................................................................................Number of official grain inspections and reinspections:

105,000105,000116,725By Federal personnel ............................................................................3,300,0003,500,0003,310,209By delegated states/official agencies ..................................................

3,2003,5003,032Number of appeals (Grain, Rice, and Pulses) ...........................................

410420401Number of appeals to the Board of Appeals and Review (Grain, Rice, andPulses) .....................................................................................................

3.33.33.3Quantity of rice inspected (million metric tons) ........................................5.04.94.3Quantity of rice exports (million metric tons) ............................................



343332Reimbursable obligations: Personnel compensation: Full-time

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

343332Total personnel compensation ...........................................11.910109Civilian personnel benefits ........................................................12.1222Travel and transportation of persons .........................................21.0111Rental payments to others ........................................................23.2211Communications, utilities, and miscellaneous charges ............23.3324Other services from non-Federal sources ..................................25.2862Other goods and services from Federal sources ........................25.3


Employment Summary


411411411Reimbursable civilian full-time equivalent employment ...............2001

✦

AGRICULTURAL MARKETING SERVICEFederal Funds

MARKETING SERVICES

For necessary expenses of the Agricultural Marketing Service, $77,462,000: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:323333Market news service ..................................................................0001777Inspection and standardization .................................................0002

586160Market protection and promotion ..............................................0003788Transportation and market development ...................................000411.................National Bioengineered Food Disclosure Standard ....................0005

105110108Total direct obligations ..................................................................0799666699Marketing Services (Reimbursable) ...........................................0801






.................1.................Appropriations transferred from other acct [012–2501] ....1121

778281Appropriation, discretionary (total) .......................................1160Appropriations, mandatory:












83DEPARTMENT OF AGRICULTUREAgricultural Marketing Service

Federal Funds

MARKETING SERVICES—Continued













Offsetting collections (collected) from:–4.................–55Federal sources .................................................................4030








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



Summary of Budget Authority and Outlays (in millions of dollars)

2018 est.2017 est.2016 actual

Enacted/requested:107110109Budget Authority .......................................................................109121118Outlays ......................................................................................

Legislative proposal, subject to PAYGO:–30..................................Budget Authority .......................................................................

Total:77110109Budget Authority .......................................................................

109121118Outlays ......................................................................................

Agricultural Marketing Service activities assist producers and handlersof agricultural commodities by providing a variety of marketing-relatedservices. These services continue to become more complex as the volumeof agricultural commodities increases, as greater numbers of new processedcommodities are developed, and as the agricultural market structure under-goes extensive changes. Marketing changes include increased concentrationin food retailing, direct buying, decentralization of processing, growth ofinterregional competition, vertical integration, and contract farming.

The 2018 Budget requests about $77.5 million for Marketing Services,approximately $3.6 million below 2017 . The individual Marketing Servicesactivities 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 PROGRAM2018 est.2017 est.2016 actual

98%96%95%Percentage of reports released on time ....................................................

COTTON AND TOBACCO USER FEE PROGRAM2018 est.2017 est.2016 actual

16.016.513.0Cotton classed (bales in millions) ............................................................140.0160.1166.1Domestic tobacco graded (million pounds) ..............................................45.050.060.9Imported tobacco inspected (million kilograms) .......................................

FEDERALLY FUNDED INSPECTION AND MARKETING ACTIVITIES2018 est.2017 est.2016 actual

97%97%95%Percent of firms complying with EPIA and the Shell Egg Surveillanceprogram ....................................................................................................

STANDARDIZATION ACTIVITIES2018 est.2017 est.2016 actual

693693691U.S. and international standards in effect, end of fiscal year ..................245245245Number of commodities covered ...............................................................

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 ACTIVITIES2018 est.2017 est.2016 actual

Pesticide data program (PDP):242323Number of children's food commodities included in PDP .....................

530520509Number of compounds reported by PDP labs ........................................Seed Act:Interstate investigations:

340340337Completed ........................................................................................131131131Pending ............................................................................................

2,1022,1022,081Seed samples tested ............................................................................95%95%95%Percentage of cases submitted that are completed .............................

Plant Variety Protection Act:425425413Number of applications received ..........................................................400400467Certificates of protection issued or abandoned ....................................

100%100%100%Percentage of board budgets and marketing plans approved within timeframe goal ................................................................................................

THE BUDGET FOR FISCAL YEAR 201884 Agricultural Marketing Service—ContinuedFederal Funds—Continued

Country of Origin Labeling:3,5003,5003,087Retail compliance reviews ................................................................

101013Complaints investigated ..................................................................474747State 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 ACTIVITIES2018 est.2017 est.2016 actual

125150125Number of projects completed ..................................................................

TRANSPORTATION SERVICES ACTIVITIES2018 est.2017 est.2016 actual

261918Number of projects completed ..................................................................





343435Total personnel compensation ...........................................11.9121212Civilian personnel benefits ........................................................12.1111Travel and transportation of persons .........................................21.0222Rental payments to GSA ............................................................23.1111Communications, utilities, and miscellaneous charges ............23.3

152022Other services from non-Federal sources ..................................25.2996Other goods and services from Federal sources ........................25.3111Operation and maintenance of equipment ................................25.7111Supplies and materials .............................................................26.0111Equipment .................................................................................31.0




Employment Summary



MARKETING SERVICES

(Legislative proposal, subject to PAYGO)



Obligations by program activity:–30..................................Market protection and promotion ..............................................0003

–30..................................Total direct obligations ..................................................................0799

–30..................................Total new obligations, unexpired accounts (object class 41.0) .......0900


Appropriations, mandatory:–30..................................Appropriations transferred from other acct [012–4336] ....1221–30..................................Total budgetary resources available ..............................................1930


–30..................................New obligations, unexpired accounts ....................................3010

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

–30..................................Obligated balance, end of year ..............................................3200


–30..................................Budget authority, gross .........................................................4090

–30..................................Budget authority, net (total) ..........................................................4180...................................................Outlays, net (total) ........................................................................4190

The Budget eliminates funding for the Farmers Market and Local FoodPromotion Program, for which there is no Federal purpose.

✦

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

796869Specialty crop block grants .......................................................0002





111Appropriation ....................................................................1100Appropriations, mandatory:

.................–1.................Appropriations transferred to other acct [012–2500] ........1220

857373Transferred from other accounts for the Specialty Crop Block

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













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


..................................1Outlays from new mandatory authority .............................4100687062Outlays from mandatory balances ....................................4101





Legislative proposal, subject to PAYGO:–85..................................Budget Authority .......................................................................

85DEPARTMENT OF AGRICULTUREAgricultural Marketing Service—Continued


PAYMENTS TO STATES AND POSSESSIONS—Continued

Summary of Budget Authority and Outlays—Continued


Total:16869Budget Authority .......................................................................

697164Outlays ......................................................................................

The Budget eliminates funding for the Specialty Crop Block Grants,for which there is no Federal purpose.



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



Employment Summary



PAYMENTS TO STATES AND POSSESSIONS




Obligations by program activity:–85..................................Specialty crop block grants .......................................................0002





–85..................................New obligations, unexpired accounts ....................................3010




–85..................................Budget authority, gross .........................................................4090–85..................................Budget authority, net (total) ..........................................................4180


✦

PERISHABLE AGRICULTURAL COMMODITIES ACT FUND




Current law:

121211License Fees and Defaults, Perishable Agricultural

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


Current law:–11–11–11Perishable Agricultural Commodities Act Fund .....................2101–1–1–1Perishable Agricultural Commodities Act Fund .....................2103111Perishable Agricultural Commodities Act Fund .....................2132






Obligations by program activity:101010Perishable Agricultural Commodities Act ..................................0001



Appropriations, mandatory:111111Appropriation (special or trust fund) .................................1201111Appropriation (previously unavailable) .............................1203

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


111111Appropriations, mandatory (total) .........................................1260262524Total budgetary resources available ..............................................1930




–10–10–10Outlays (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 ACTIVITIES2018 est.2017 est.2016 actual

90%90%91%Percentage of informal reparation complaints completed within time framegoal ..........................................................................................................




Direct obligations:666Personnel compensation: Full-time permanent .........................11.1222Civilian personnel benefits ........................................................12.1222Other 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.




21,08821,20520,764Balance, start of year ....................................................................0100..................................11Unavailable balance adjustment ...................................................0198

21,08821,20520,775Balance, start of year ................................................................0199Receipts:

Current law:

10,78610,54110,51030 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

10,78710,54210,510Total current law receipts ..................................................1199

10,78710,54210,510Total receipts .............................................................................1999

31,87531,74731,285Total: Balances and receipts .....................................................2000Appropriations:

Current law:

–10,371–10,930–10,317Funds for Strengthening Markets, Income, and Supply (section

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

–125–166–223Funds for Strengthening Markets, Income, and Supply (section

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

263232.................Funds for Strengthening Markets, Income, and Supply (section

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

7880293Funds for Strengthening Markets, Income, and Supply (section

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

.................125166Funds for Strengthening Markets, Income, and Supply (section

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

–10,155–10,659–10,081Total current law appropriations .......................................2199

–10,155–10,659–10,081Total appropriations ..................................................................2999..................................1Rounding adjustment ....................................................................5098

21,72021,08821,205Balance, end of year ..................................................................5099



Obligations by program activity:465465465Child nutrition program purchases ...........................................000198104299Emergency surplus removal ......................................................000255.................State option contract .................................................................000433.................Removal of defective commodities ............................................000555.................Disaster Relief ...........................................................................0006

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

782788764Subtotal, Commodity program payments .......................................0091565453Administrative expenses ...........................................................0101

838842817Total direct program ......................................................................0192

838842817Total direct obligations ..................................................................0799

445Funds for Strengthening Markets, Income, and Supply (section

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



11.................Unobligated balance brought forward, Oct 1 .........................1000..................................1Recoveries of prior year unpaid obligations ...........................1021..................................12Recoveries of prior year paid obligations ...............................1033


Appropriations, discretionary:–263–232.................Appropriations temporarily reduced ..................................1132

Appropriations, mandatory:10,37110,93010,317Appropriation (special or trust fund) .................................1201

125166223Appropriation (previously unavailable) .............................1203–9,158–9,672–9,130Transferred to Food and Nutrition Service [012–3539] .......1220–155–145–146Transferred to Department of Commerce [013–5139] ........1220



.................–125–166Appropriations precluded from obligation .........................1234

1,1051,074805Appropriations, mandatory (total) .........................................1260Spending authority from offsetting collections, mandatory:


445Spending auth from offsetting collections, mand (total) .......1850846846810Budget authority (total) .............................................................1900847847823Total budgetary resources available ..............................................1930






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




–263–232.................Budget authority, gross .........................................................4000Outlays, gross:

–263–232.................Outlays from new discretionary authority ..........................4010Mandatory:

1,1091,078810Budget authority, gross .........................................................4090Outlays, gross:


9941,000817Outlays, gross (total) .............................................................4110Offsets against gross budget authority and outlays:


Additional offsets against gross budget authority only:..................................–1Change in uncollected pymts, Fed sources, unexpired .......4140


accounts .......................................................................4143


1,1051,074805Budget authority, net (mandatory) ............................................4160990996801Outlays, net (mandatory) ...........................................................4170842842805Budget authority, net (total) ..........................................................4180727764801Outlays, 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 the

87DEPARTMENT OF AGRICULTUREAgricultural Marketing Service—Continued


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

Department 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. Program funds are alsoused to purchase commodities that are distributed to schools as part ofChild Nutrition Programs entitlements. Furthermore, funds are transferredto the Food and Nutrition Service for commodity purchases under section6 of the National School Lunch Act and other authorities specified in theChild Nutrition Programs statutes.



Direct obligations:171715Personnel compensation: Full-time permanent .........................11.1665Civilian personnel benefits ........................................................12.1111Travel and transportation of persons .........................................21.0222Transportation of things ............................................................22.0111Communications, utilities, and miscellaneous charges ............23.311.................Printing and reproduction .........................................................24.0777Other services from non-Federal sources ..................................25.2

292925Other goods and services from Federal sources ........................25.311.................Operation and maintenance of equipment ................................25.7

773777760Supplies 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:

166161162Deposits 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


169164164Total receipts .............................................................................1999


Current law:

–161–158–164Expenses and Refunds, Inspection and Grading of Farm

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




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

656568Specialty Crops .........................................................................0002212122Meat grading .............................................................................0003474748Poultry products ........................................................................0004232043Miscellaneous agricultural commodities ...................................0005






2215Appropriations Farm Bill (AMA SPM,and NOCS) transferred

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

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













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.





121112Other personnel compensation ..............................................11.5

878593Total personnel compensation ...........................................11.9282831Civilian personnel benefits ........................................................12.1111Benefits for former personnel ....................................................13.0


101011Travel and transportation of persons .........................................21.0111Rental payments to GSA ............................................................23.1222Rental payments to others ........................................................23.2223Communications, utilities, and miscellaneous charges ............23.3999Other services from non-Federal sources ..................................25.2656Other goods and services from Federal sources ........................25.3111Operation and maintenance of equipment ................................25.7111Supplies and materials .............................................................26.0111Equipment .................................................................................31.0



Employment Summary


1,3531,3531,287Direct civilian full-time equivalent employment ............................1001

✦

MILK MARKET ORDERS ASSESSMENT FUND



Obligations by program activity:534946Administration ..........................................................................0801888Marketing service ......................................................................0802



Spending authority from offsetting collections, mandatory:615754Collected ...........................................................................1800615754Total budgetary resources available ..............................................1930





615754Outlays from new mandatory authority .............................4100Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–61–57–54Non-Federal sources .........................................................4123



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 invested

in 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.





363432Total personnel compensation ...........................................11.9121110Civilian personnel benefits ........................................................12.1333Travel and transportation of persons .........................................21.0544Rental payments to others ........................................................23.2222Communications, utilities, and miscellaneous charges ............23.3111Other services from non-Federal sources ..................................25.2111Supplies and materials .............................................................26.0111Equipment .................................................................................31.0


Employment Summary



✦

RISK MANAGEMENT AGENCYFederal Funds


For necessary expenses of the Risk Management Agency, $55,000,000: Provided,That not to exceed $1,000 shall be available for official reception and representationexpenses, as authorized by 7 U.S.C. 1506(i).




Obligations by program activity:648482Salaries & Expenses ..................................................................0001



..................................8Appropriations transferred from other acct [012–4085] ....1121

557583Appropriation, discretionary (total): ......................................1160Appropriations, mandatory:

99.................Appropriations transferred from other acct [012–4085] ....1221648483Budget authority (total) .............................................................1900648483Total budgetary resources available ..............................................1930


89DEPARTMENT OF AGRICULTURERisk Management Agency

Federal Funds

















Mandatory:99.................Budget authority, gross .........................................................4090

Outlays, gross:77.................Outlays from new mandatory authority .............................410022.................Outlays from mandatory balances ....................................4101

99.................Outlays, gross (total) .............................................................4110648483Budget authority, net (total) ..........................................................4180688482Outlays, 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 2018 Budget requests $55 million in discretionaryfunds. In addition, RMA also plans to transfer $9 million from mandatoryFCIC funding for reviews, compliance and integrity under section516(b)(2)(C) to the S&E account in 2018. By transferring these funds intothe S&E account, RMA will be able to use these funds more efficientlyand flexibly to maintain operations.

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 $55 million in funding in this account appropriately coversadministrative activities for RMA. This funding is supplmented by $47million in additional mandatory funding that is authorized in the Farm Billand the Federal Crop Insurance Act for administrative and IT related costs.The $47 million in mandatory funds are spent directly out of the FCICfund.



494746Direct 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


.................55Other goods and services from Federal sources ........................25.3

.................88Operation and maintenance of equipment ................................25.7

648482Direct 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:5,7621,0611,519Indemnities ...............................................................................00011,3531,3521,460Delivery Expenses ......................................................................00021,0652,6341,833Underwriting Gains ...................................................................0003

474739Federal Crop Insurance Act Initiatives .......................................0004

8,2275,0944,851Total direct obligations ..................................................................07994,0263,7463,760Reimbursable program - indemnities ........................................0801

20203Reimbursable program - programs and activities .....................0802

4,0463,7663,763Total reimbursable obligations ......................................................0899





Appropriations, discretionary:–4..................................Appropriations permanently reduced ................................1130

Appropriations, mandatory:8,2455,1124,868Appropriation ....................................................................1200

–5–5–5Appropriations transferred to other acct [012–0502] ........1220–9–9–8Appropriations transferred to other acct [012–2707] ........1220444Appropriations transferred from other acct [012–4336] ....1221



8,2355,0984,855Appropriations, mandatory (total): ........................................1260Spending authority from offsetting collections, mandatory:

4,0463,7653,764Collected ...........................................................................1800

..................................–1New and/or unobligated balance of spending authority from


4,0463,7653,763Spending auth from offsetting collections, mand (total): ......185012,2778,8638,618Budget authority (total) .............................................................190012,8569,4399,190Total budgetary resources available ..............................................1930

THE BUDGET FOR FISCAL YEAR 201890 Risk Management Agency—ContinuedFederal Funds—Continued



3,7843,3982,707Unpaid obligations, brought forward, Oct 1 ..........................300012,2738,8608,614New obligations, unexpired accounts ....................................3010

–12,689–8,474–7,921Outlays (gross) ......................................................................3020..................................–2Recoveries of prior year unpaid obligations, unexpired .........3040

3,3683,7843,398Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

3,7843,3982,707Obligated balance, start of year ............................................31003,3683,7843,398Obligated balance, end of year ..............................................3200


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

–4..................................Outlays from new discretionary authority ..........................4010Mandatory:


12,2775,0765,101Outlays from new mandatory authority .............................41004163,3982,820Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:–4,046–3,765–3,764Non-Federal sources .........................................................41238,2315,0984,854Budget authority, net (total) ..........................................................41808,6434,7094,157Outlays, net (total) ........................................................................4190


17139Unexpired unavailable balance, SOY: Appropriations ................5096171713Unexpired unavailable balance, EOY: Appropriations ................5098

FCIC is administered by the Risk Management Agency (RMA), andprovides economic stability to agriculture through crop insurance. TheFederal crop insurance program includes products providing crop yieldand revenue insurance, pasture, rangeland forage, and livestock insurance,as well as other educational and risk mitigation initiatives/tools. The Fed-eral crop insurance program provides farmers with a risk managementprogram that protects against agricultural production losses due to unavoid-able causes such as drought, excessive moisture, hail, wind, lightning, andinsects. In addition to these causes, revenue insurance programs are avail-able to protect against loss of revenue. Federal crop insurance is availablefor more than 350 different commodities in over 3,066 counties coveringall 50 states, and Puerto Rico. For the 2016 Crop Year, there were 1 millionpolicies written with over $9.6 billion 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 (SRA). Therisk sharing is designed to be in favor of the companies, not one for onewith the government. In most years the companies realize underwritinggains. In bad years, the companies' underwriting losses are minimalizedbecause the government takes on more of the risk and ultimately back-stopsthe program after a certain level of loss. Currently, the government providescompanies, on average, $1.1 billion a year in underwriting gains. In addi-tion, the government pays the companies an Administrative and Operating(A&O) subsidy to offset the costs incurred to carry out the program. Theyare reimbursed on average for about 14 percent of the premiums sold. Thegovernment currently pays $1.4 billion annually for A&O. For the 2018Budget, the payments to the companies are projected to be $2.5 billion incombined subsidies.

The 2018 Budget requests funding to support $12.3 billion in obligations.Funding estimates for 2017 are based on an estimated .52 loss ratio and2018 as well as the outyears are based on a 1.0 loss ratio, which is thestatutory target loss ratio used for estimating future 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 Average Production History (APH) is updated to incorporatethat year. If the producer does not plant a second crop, they get their fullprevented planting claim, and their APH is not affected in subsequent yearsfor premium calculation purposes.

The 2018 the Budget proposes to permanently cancel to AgriculturalManagement Assistance Program (AMA) and rescind the $4 million infunds. This program is authorized by section 524(b) of the Federal CropInsurance Act (7 U.S.C. 1524(b)), as amended. It authorizes $10 millionannually for the program, of which RMA receives 40 percent. This programis implemented by RMA, the Agricultural marketing Service, and theNatural Resources Conservation Service. The RMA activities are carriedout in 16 states in which participation in the Federal Crop Insurance Pro-gram is historically low. The program provides assistance to producers toreduce their costs for crop insurance.

The following table illustrates Crop Year statistics as of September 30,2015. Crop Year is generally all activity for crops from July 1-June 30 ofa given year.

2017 est.2016 est.2015 est.505050Number of States ......................................................................................

3,0663,0663,066Number of counties ..................................................................................102,61699,688101,294Insurance in force (millions) .....................................................................

289289297Insured acreage (millions) ........................................................................

3,6064,0463,763Producer premium (millions) ....................................................................5,9955,7666,087Premium subsidy (millions) ......................................................................

91DEPARTMENT OF AGRICULTURERisk Management Agency—Continued


FEDERAL CROP INSURANCE CORPORATION FUND—Continued

9,6019,8129,850Total premium (millions) ..............................................................

9,6019,8125,265Indemnities (millions) ..............................................................................1.000.52.39Loss 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 2017 and 2018.

PREMIUM AND SUBSIDY

[In millions of dollars]2018 est.2017 est.

Premiums:5,6565,748Additional coverage premium subsidy .........................................................................110110Catastrophic coverage premium subsidy ....................................................................

5,7665,858Subtotal, premium subsidy .....................................................................................4,0463,766Producer premium .......................................................................................................

9,8129,624Total premiums ...................................................................................................

Indemnities:9,6164,730Additional coverage .....................................................................................................19697Catastrophic coverage ................................................................................................

9,8124,827Total indemnities ................................................................................................

NET INCOME OR LOSS (-) ON INSURANCE OPERATIONS

[In millions of dollars]2018 est.2017 est.

–5,766–1,061Producer premium less indemnities1 ...............................................................................00Interest expense, net .......................................................................................................

–1,353–1,352Delivery expenses ............................................................................................................4546Other income or expense, net (CAT fees) ..........................................................................

–47–47Federal Crop Insurance Act Initiatives .............................................................................–1,065–2,634Reinsurance underwriting gain (+) or loss (-) .................................................................

–8,186–5,048Net income or loss (-) ......................................................................................................

1Totals have been adjusted to account for CAT fees, which are specifically itemized in net later in the table.



Direct obligations:

474739Other services-Agriculture Reisk Protection Act of 2000

Initiative ................................................................................25.2

2,4183,9863,293Other services from non-Federal sources ..................................25.25,7621,0611,519Insurance claims and indemnities ............................................42.0

8,2275,0944,851Direct obligations ..................................................................99.0Reimbursable obligations:

2..................................Travel and transportation of persons .........................................21.03..................................Rental payments to GSA ............................................................23.11..................................Communications, utilities, and miscellaneous charges ............23.33..................................Advisory and assistance services ..............................................25.14..................................Other goods and services from Federal sources ........................25.37..................................Operation and maintenance of equipment ................................25.7

4,0263,7463,763Insurance claims and indemnities ............................................42.0.................20.................Programs and Activities ............................................................42.0

4,0463,7663,763Reimbursable obligations .....................................................99.0


FEDERAL CROP INSURANCE CORPORATION FUND


The 2018 Budget includes two 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. Limit Premium Subsidies for Crop Insurance. The 2018 Budget pro-poses to establish a limit of $40,000 for the premium subsidies an individualor entity may receive. It would reduce the generous subsidies that are argu-ably no longer necessary to encourage participation, as crop insurance isnow an established part of the farm industry's business plans. The $40,000limit in premium subsidy would apply to all levels of coverage, includingcatastrophic coverage.

2. Eliminate Subsidized Harvest Price Revenue Coverage. The 2018Budget also proposes to eliminate the ability for producers to insure theircrops at the higher of the price projected at planting or the harvest price.Crop insurance was not designed to reduce risk in forward selling, and theGovernment should not bear the risk of such losses. Producers that wantto hedge their risk can do so using futures and options on commodity ex-changes as they did before this type of insurance coverage was available.Private sector insurance companies could offer harvest price protection asan addendum to the Federal crop insurance policy; however, the premiumfor such an addendum would not receive a premium subsidy nor would thepremium be included in the A&O or underwriting gain/loss calculationsfor payments to the companies. This proposal maintains the crop insuranceprogram as a tool for farmers to use as protection in times of low yieldsand low prices.

In addition to these proposals, the 2018 Budget proposes to target com-modity assistance, crop insurance subsidies, and conservation funding tothose producers that have an Adjusted Gross Income (AGI) of $500,000or less. It is hard to justify providing assistance to farmers with incomesover half a million dollars. Doing so undermines the credibility and thepurpose of farm programs. Strengthening the income test for commodity,crop insurance, and conservation programs will improve their integrity.Collectively, the changes are expected to save $29 billion over 10 years.

✦

FARM SERVICE AGENCYFederal Funds



For necessary expenses of the Farm Service Agency, $1,130,163,000: 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:1,1301,1981,207Agricultural Sector Support .......................................................0001

1,1301,1981,207Subtotal, direct program ...............................................................0300297306307Farm loans ................................................................................0801485693Other programs .........................................................................0802133Other Credit Programs ...............................................................0803

346365403Total reimbursable obligations ......................................................0899

THE BUDGET FOR FISCAL YEAR 201892 Risk Management Agency—ContinuedFederal Funds—Continued



161938Unobligated balance brought forward, Oct 1 .........................1000

..................................10Unobligated balance transfers between expired and unexpired

accounts ...........................................................................1012




..................................–5Appropriations transferred to other acct [012–1140] ........1120

1,1301,1981,195Appropriation, discretionary (total) .......................................1160Spending authority from offsetting collections, discretionary:
























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. FSA

also assists in the administration of several conservation cost-share programsfinanced by the Commodity Credit Corporation (CCC), including theGrasslands Reserve Program (GRP). In addition, FSA currently providescertain administrative support services to the Foreign Agricultural Service(FAS) and to the Risk Management Agency (RMA). The authority formost FSA programs is continued in the Agricultural Act of 2014 (the 2014Farm Bill).

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. The2018 Budget requests a total of $1.43 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-

93DEPARTMENT OF AGRICULTUREFarm Service Agency—Continued



ring funds to the Natural Resources Conservation Service and other agenciesfor other conservation programs.

Commodity operations.—This activity includes: (a) overall managementof CCC-owned commodities; (b) purchasing commodities; (c) donatingcommodities; (d) selling commodities; (e) accounting for loans and com-modities; and (f) commercial warehouse activities, which include improvingthe effectiveness and efficiency of FSA's commodity acquisition, procure-ment, storage, and distribution activities to support domestic and interna-tional food assistance programs and administering the U.S. Warehouse Act(USWA). FSA provides for the examination of warehouses licensed underthe USWA and non-licensed warehouses storing CCC-owned or pledgedcommodities. Examiners perform periodic examinations of the facilitiesand the warehouse records to ensure protection of depositors against poten-tial losses of the stored commodities and to ensure compliance with theUSWA and any CCC storage agreements.

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,and others, including certain administrative support services for RMA andFAS, and for county office services provided to Federal and non-Federalentities, including a variety of services to producers.



Direct obligations:150180166Personnel compensation: Full-time permanent .........................11.1616056Civilian personnel benefits ........................................................12.1168Travel and transportation of persons .........................................21.0111Transportation of things ............................................................22.0

262632Communications, utilities, and miscellaneous charges ............23.3111Printing and reproduction .........................................................24.0

245282294Other services from non-Federal sources ..................................25.2111Supplies and materials .............................................................26.0111Equipment .................................................................................31.0




Employment Summary


1,6231,7083,382Direct civilian full-time equivalent employment ............................10012,1622,403716Reimbursable 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), $3,398,000.




Obligations by program activity:333State mediation grants .............................................................0001






–3–3–3Outlays (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 CropInsurance 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 2018 Budget requests$3.4 million for the program.

GRANT OBLIGATIONS2018 est.2017 est.2016 actual

404040Number of States receiving grants ...........................................................333Amount 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-

THE BUDGET FOR FISCAL YEAR 201894 Farm Service Agency—ContinuedFederal Funds—Continued

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





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 2016began on July 18, 2016, and ended on September 09, 2016. Payments forFY 2016 signup will be disbursed in FY 2017. No funding is requested inthe 2018 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. The2018 Budget proposes no funding for this program.

✦

EMERGENCY CONSERVATION PROGRAM



Obligations by program activity:609071Emergency conservation program .............................................0001















.................21.................Outlays from new discretionary authority ..........................40101052428Outlays from discretionary balances .................................4011

1054528Outlays, gross (total) .............................................................4020.................103108Budget authority, net (total) ..........................................................4180


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 2016, 33 States participated in ECP, with new or continued activityfrom the previous year, involving approximately $28.1 million in cost-share and technical assistance funds outlays. The Further Continuing and



EMERGENCY CONSERVATION PROGRAM—Continued

Security Assistance Appropriations Act, 2017 provided $103 million fordisasters declared pursuant to section 251(b)(2)(A)(i) of the BalancedBudget and Emergency Deficit Control Act of 1985. The 2018 Budgetdoes not propose funding for this program.

✦

EMERGENCY FOREST RESTORATION PROGRAM



Obligations by program activity:24243EFRP ..........................................................................................0001





Appropriations, discretionary:..................................6Appropriation ....................................................................1100




131218Unpaid obligations, brought forward, Oct 1 ..........................300024243New obligations, unexpired accounts ....................................3010–4–23–5Outlays (gross) ......................................................................3020





..................................6Budget authority, gross .........................................................4000Outlays, gross:

4235Outlays from discretionary balances .................................4011..................................6Budget authority, net (total) ..........................................................4180


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. During2016, 5 States participated in EFRP with new or continued activity fromthe previous year, involving approximately $4.7 million in cost-share andtechnical assistance fund outlays. The 2018 Budget does not includefunding for EFRP.

✦

GRASSROOTS SOURCE WATER PROTECTION PROGRAM




Obligations by program activity:.................77Grassroots source water payments ............................................0001




.................77Total budgetary resources available ..............................................1930



.................–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 2018 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:$2,500,000,000 for guaranteed farm ownership loans and $1,500,000,000 for farmownership direct loans; $1,393,423,000 for unsubsidized guaranteed operatingloans and $1,304,851,000 for direct operating loans; emergency loans, $25,610,000;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, $52,716,000 for direct operating loans, $15,467,000for unsubsidized guaranteed operating loans, and emergency loans, $1,260,000, toremain available until expended.

In addition, for administrative expenses necessary to carry out the direct andguaranteed loan programs, $305,291,000, of which $297,386,000 shall be transferredto and merged with the appropriation for "Farm Service Agency, Salaries and Ex-penses".

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:888Administrative expenses - PLCE ................................................001011.................Dairy Indemnity .........................................................................0011

998Direct program activities, subtotal ................................................0091Credit program obligations:

555659Direct loan subsidy ................................................................0701151415Loan guarantee subsidy ........................................................0702

.................141226Reestimates of direct loan subsidy .......................................0705

.................3957Interest on reestimates of direct loan subsidy .......................0706

.................2526Reestimates of loan guarantee subsidy ................................0707

.................2726Interest on reestimates of loan guarantee subsidy ................0708297306307Administrative expenses .......................................................0709

367608716Direct program activities, subtotal ................................................0791





375383384Appropriation ....................................................................1100..................................5Appropriations transferred from other acct [012–0600] ....1121


1233335Appropriation ....................................................................1200376616724Budget authority (total) .............................................................1900378619727Total budgetary resources available ..............................................1930












1233334Outlays from new mandatory authority .............................4100376616724Budget authority, net (total) ..........................................................4180376620721Outlays, 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:1,5001,5001,017Farm Ownership ........................................................................1150011,3051,2641,339Farm Operating .........................................................................115002

524543Emergency Disaster ...................................................................115003202.................IndianTribe Land Acquisition .....................................................1150046060.................Boll Weevil Eradication ..............................................................115005

..................................10Indian Highly Fractionated Land ...............................................115010

2,9372,8712,409Total direct loan levels ..............................................................115999Direct loan subsidy (in percent):

–3.80–1.62–2.73Farm Ownership ........................................................................1320014.044.264.31Farm Operating .........................................................................1320024.925.593.64Emergency Disaster ...................................................................132003

–26.34–21.54.................IndianTribe Land Acquisition .....................................................132004-.69-.66.................Boll Weevil Eradication ..............................................................132005

.................25.50–4.58Indian Highly Fractionated Land ...............................................132010

-.251.091.29Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

–57–24–28Farm Ownership ........................................................................133001535458Farm Operating .........................................................................133002332Emergency Disaster ...................................................................133003

–5..................................IndianTribe Land Acquisition .....................................................133004

–63332Total subsidy budget authority ..................................................133999Direct loan subsidy outlays:

–42–29–24Farm Ownership ........................................................................134001515255Farm Operating .........................................................................134002221Emergency Disaster ...................................................................134003

112532Total subsidy outlays .................................................................134999Direct loan reestimates:

.................–7147Farm Ownership ........................................................................135001

.................–2929Farm Operating .........................................................................135002

.................111Emergency Disaster ...................................................................135003

.................–12Credit Sales of Acquired Property ..............................................135008

..................................–6Farm Operating - ARRA .............................................................135012

.................–36183Total direct loan reestimates .....................................................135999

Guaranteed loan levels supportable by subsidy budget authority:2,5002,0002,471Farm Ownership—Unsubsidized ...............................................2150011,3931,3391,493Farm Operating—Unsubsidized ................................................2150021501501Conservation - Guaranteed .......................................................215005

4,0433,4893,965Total loan guarantee levels .......................................................215999Guaranteed loan subsidy (in percent):

-.18-.06-.14Farm Ownership—Unsubsidized ...............................................2320011.111.071.03Farm Operating—Unsubsidized ................................................232002-.34-.32-.33Conservation - Guaranteed .......................................................232005

0.260.360.30Weighted average subsidy rate ..................................................232999Guaranteed loan subsidy budget authority:

–4–1–3Farm Ownership—Unsubsidized ...............................................233001151415Farm Operating—Unsubsidized ................................................233002

111312Total subsidy budget authority ..................................................233999Guaranteed loan subsidy outlays:

–4–2–3Farm Ownership—Unsubsidized ...............................................234001151416Farm Operating—Unsubsidized ................................................234002–1..................................Conservation - Guaranteed .......................................................234005

101213Total subsidy outlays .................................................................234999Guaranteed loan reestimates:

.................–20–5Farm Ownership—Unsubsidized ...............................................235001

.................–12–12Farm Operating—Unsubsidized ................................................235002

.................13Farm Operating—Subsidized ....................................................235003

.................–31–14Total guaranteed loan reestimates ............................................235999

Administrative expense data:305314315Budget authority .......................................................................3510305314314Outlays from new authority .......................................................3590

The Agricultural Credit Insurance Fund program account's loans are au-thorized by Title III of the Consolidated 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 2018 Budget requests $69.4 million for loan subsidies.The 2018 Budget requests a program level increase of $616.3 million over2017 loan levels. Per the Federal Credit Reform Act of 1990, this accountrecords 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, 2018 Budget requests $305.3 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 of



AGRICULTURAL CREDIT INSURANCE FUND PROGRAM ACCOUNT—Continued

chemicals 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 2016, $238,000 waspaid to producers who filed claims under the program. The 2018 Budgetrequests such sums as may be necessary, which are estimated to be $500,000for this program in both 2017 and 2018.



Direct obligations:305314315Other goods and services from Federal sources ........................25.371303409Grants, subsidies, and contributions ........................................41.0


✦

AGRICULTURAL CREDIT INSURANCE FUND DIRECT LOAN FINANCING ACCOUNT



Obligations by program activity:775Capitalized costs .......................................................................000311.................Civil rights settlements .............................................................0005

885Direct program by activities - subtotal (1 level) ............................0091Credit program obligations:

2,9362,8722,409Direct loan obligations ..........................................................0710357357331Payment of interest to Treasury .............................................0713622428Negative subsidy obligations ................................................0740

.................16470Downward reestimates paid to receipt accounts ...................0742

.................4929Interest on downward reestimates ........................................0743

3,3553,4662,867Direct program activities, subtotal ................................................0791



5306141,924Unobligated balance brought forward, Oct 1 .........................100067118102Recoveries of prior year unpaid obligations ...........................1021

–368–642–1,924Unobligated balances applied to repay debt .........................1023..................................–98Unobligated balance of borrowing authority withdrawn ........1024

229904Unobligated balance (total) ......................................................1050Financing authority:

Borrowing authority, mandatory:3,2673,4992,819Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:2,1502,4152,027Collected ...........................................................................1800

–1,700–2,000–1,364Spending authority from offsetting collections applied to

repay debt .....................................................................1825

450415663Spending auth from offsetting collections, mand (total) .......18503,7173,9143,482Budget authority (total) .............................................................19003,9464,0043,486Total budgetary resources available ..............................................1930




–3,444–3,687–2,755Outlays (gross) ......................................................................3020–67–118–102Recoveries of prior year unpaid obligations, unexpired .........3040


–10–10–10Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060



Financing authority and disbursements, net:Mandatory:

3,7173,9143,482Budget authority, gross .........................................................4090Financing disbursements:

3,4443,6872,755Outlays, gross (total) .............................................................4110

Offsets against gross financing authority and disbursements:Offsetting collections (collected) from:

.................–177–283Federal Sources: Reestimate payment from program

account .........................................................................4120

–53–54–56Federal Sources: Subsidy payment from program

account .........................................................................4120

–50–52–84Federal Sources: Interest on uninvested funds ..................4122–1,620–1,737–1,375Repayments of principal ...................................................4123–427–395–222Repayments of interest .....................................................4123

..................................–7Sale of Foreclosed Property/Other ......................................4123

–2,150–2,415–2,027Offsets against gross budget authority and outlays (total) ....4130

1,5671,4991,455Budget authority, net (mandatory) ............................................41601,2941,272728Outlays, net (mandatory) ...........................................................41701,5671,4991,455Budget authority, net (total) ..........................................................41801,2941,272728Outlays, net (total) ........................................................................4190

Status of Direct Loans (in millions of dollars)


Position with respect to appropriations act limitation on obligations:2,9112,8592,401Direct loan obligations from current-year authority ...................1111

254675Limitation available from carry-forward ....................................1121.................–33–67Unobligated direct loan limitation (-) ........................................1142

2,9362,8722,409Total direct loan obligations ..................................................1150

Cumulative balance of direct loans outstanding:10,6099,4298,531Outstanding, start of year .........................................................12102,9062,9622,409Disbursements: Direct loan disbursements ...............................1231

–1,620–1,737–1,375Repayments: Repayments and prepayments .............................1251Write-offs for default:

–51–45–41Direct loans ...........................................................................1263..................................–95Other adjustments, net (+ or -) .............................................1264

11,84410,6099,429Outstanding, 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)

2016 actual2015 actualIdentification code 012–4212–0–3–351

ASSETS:Federal assets:

6131,924Fund balances with Treasury .....................................................1101Investments in US securities:

176285Receivables, net ....................................................................1106Net value of assets related to post-1991 direct loans receivable:

9,4298,531Direct loans receivable, gross ....................................................1401243228Interest receivable .....................................................................1402

68Accounts receivable from foreclosed property ............................1403–382–434Allowance for subsidy cost (-) ....................................................1405–92–87Allowance for Interest Receivable (-) .........................................1405

9,2048,246Net present value of assets related to direct loans ................1499

9,99310,455Total assets ...............................................................................1999LIABILITIES:

9,77410,357Federal liabilities: Resources payable to Treasury ..........................210421998Non-Federal liabilities: Other .........................................................2207

9,99310,455Total liabilities ...........................................................................2999

9,99310,455Total 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:

525234Default claim payments on principal ....................................0711111Payment of interest to Treasury .............................................0713523Negative subsidy obligations ................................................0740







–1–1–9Unobligated balances applied to repay debt .........................1023


Borrowing authority, mandatory:303013Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:67111124Collected ...........................................................................180097141137Budget authority (total) .............................................................1900











97141137Budget authority, gross .........................................................4090Financing disbursements:

55132106Outlays, gross (total) .............................................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:.................–52–67Payments from program account upward reestimate ........4120

–15–15.................Payments from program account subsidy .........................4120–4–4–4Interest on uninvested funds ............................................4122

–45–37–53Fees and premiums ...........................................................4123–3–3.................Loss recoveries and repayments .......................................4123


303013Budget authority, net (mandatory) ............................................4160–1221–18Outlays, net (mandatory) ...........................................................4170303013Budget authority, net (total) ..........................................................4180

–1221–18Outlays, net (total) ........................................................................4190

Status of Guaranteed Loans (in millions of dollars)


Position with respect to appropriations act limitation oncommitments:

4,0433,4893,965Guaranteed loan commitments from current-year authority .......2111

4,0433,4893,965Total guaranteed loan commitments .....................................21503,1893,1893,569Guaranteed amount of guaranteed loan commitments .................2199

Cumulative balance of guaranteed loans outstanding:15,84815,05713,856Outstanding, start of year .........................................................22103,5433,5433,863Disbursements of new guaranteed loans ..................................2231

–2,674–2,674–2,591Repayments and prepayments ..................................................2251Adjustments:

–13–13–13Terminations for default that result in loans receivable ........2261–65–65–58Terminations for default that result in claim payments ........2263


Memorandum:

13,45013,45013,551Guaranteed amount of guaranteed loans outstanding, end of

year .......................................................................................2299

Addendum:Cumulative balance of defaulted guaranteed loans that result

in loans receivable:163150136Outstanding, start of year .....................................................2310242430Disbursements for guaranteed loan claims ...........................2331–1–1–2Repayments of loans receivable ............................................2351

–10–10–14Write-offs of loans receivable ................................................2361

176163150Outstanding, 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:249227Federal assets: Fund balances with Treasury .................................11015251Non-Federal assets: Receivables, net ............................................1206

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

150136Defaulted guaranteed loans receivable, gross ...........................1501–148–134Allowance for subsidy cost (-) ....................................................1505

22Net present value of assets related to defaulted guaranteedloans .................................................................................

1599

303280Total assets ...............................................................................1999LIABILITIES:

Federal liabilities:2622Resources payable to Treasury ...................................................21048169Other ..........................................................................................2105

196189Non-Federal liabilities: Liabilities for loan guarantees ..................2204

303280Total liabilities ...........................................................................2999

303280Total liabilities and net position .....................................................4999

✦

AGRICULTURAL CREDIT INSURANCE FUND LIQUIDATING ACCOUNT



Obligations by program activity:221Loan recoverable costs ..............................................................000811.................Costs incidental to acquisition of real property .........................010911.................Civil rights settlements .............................................................0118

22.................Total operating expenses ...............................................................0191





.................–11–10Capital transfer of unobligated balances to general fund ......1022

..................................1Unobligated balance (total) ......................................................1050Budget authority:


–77–77–64Capital transfer of spending authority from offsetting

collections to general fund ...........................................1820




AGRICULTURAL CREDIT INSURANCE FUND LIQUIDATING ACCOUNT—Continued






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





23.................Outlays from new mandatory authority .............................410011.................Outlays from mandatory balances ....................................4101

34.................Outlays, gross (total) .............................................................4110Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–65–65–75Non-Federal sources Principal Repayments ......................4123–16–16.................Non-Federal sources Interest Repayments ........................4123


–77–77–64Budget authority, net (mandatory) ............................................4160–78–77–75Outlays, net (mandatory) ...........................................................4170–77–77–64Budget authority, net (total) ..........................................................4180–78–77–75Outlays, net (total) ........................................................................4190



Cumulative balance of direct loans outstanding:251318378Outstanding, start of year .........................................................1210–65–65–56Repayments: Repayments and prepayments .............................1251

22.................Adjustments: Capitalized interest .............................................1261–4–4–4Write-offs for default: Direct loans ............................................1263

184251318Outstanding, end of year .......................................................1290



Cumulative balance of guaranteed loans outstanding:345Outstanding, start of year .........................................................2210

–1–1–1Repayments and prepayments ..................................................2251


Memorandum:

113Guaranteed amount of guaranteed loans outstanding, end of

year .......................................................................................2299



ASSETS:1110Federal assets: Fund balances with Treasury .................................1101

318378Loans Receivable ...........................................................................1601117124Interest receivable .........................................................................1602

–119–119Allowance for estimated uncollectible loans and interest (-) .........1603

316383Direct loans and interest receivable, net ...................................160455Foreclosed property ........................................................................1606

321388Value of assets related to direct loans .......................................1699


332398Federal 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 Corporationunder section 11 of the Commodity Credit Corporation Charter Act (15 U.S.C. 714i)for the conduct of its business with the Foreign Agricultural Service, up to $5,000,000may 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).




Obligations by program activity:2,9593,0525,841Price Loss Coverage ..................................................................00011,1632,97017,907Agriculture Risk Coverage .........................................................0002

..................................1Cotton Transition Assistance Program .......................................0003232420Marketing Loans — Recourse ...................................................0004

..................................3Direct, Countercyclical an ACRE Payments ................................00057,9068,2466,960Marketing Loans — Non-Recourse ...........................................0006

97213213Loan Deficiency Payments .........................................................0007504747Economic Adjustment Assistance for Upland Cotton .................0008313443Livestock Indemnity Program ....................................................0009

423312430Livestock Forage Program .........................................................0010201717ELAP ..........................................................................................0011202130Tree Assistance Program ...........................................................0012333Biomass Crop Assistance Program ............................................0013

968885Storage, Transportation and Other ............................................0015199179186Market Access Program .............................................................0016

777Technical Assistance for Specialty Crops ..................................0018989Emerging Markets Program .......................................................0019

343132Foreign Market Development Program .......................................0021331Quality Samples Program ..........................................................0022

164154137Non-Insured assistance program ..............................................00232,2362,1332,120Conservation Reserve Program Financial Assistance ................0026

141512Conservation Reserve Program Technical Assistance ................0027265Emergency Forestry Conservation Reserve Program ..................0028

1235966Treasury Interest ........................................................................0029222Other Interest ............................................................................0030

504747Reimbursable Agreements with State and Federal Agencies ......0031166155166Food for Progress .......................................................................00321096Section 4 Contracts ...................................................................0034

..................................35Farm Bill Implementation ..........................................................0035

..................................330Cotton Ginning Cost Share ........................................................0037111Electronic Warehouse Receipts ..................................................0038777Graze Out ..................................................................................0039222Noninsured Assistance Program Loss Adjuster ..........................0040

201612Margin Protection Program ........................................................00413826269All other Programs .....................................................................0047

15,87817,88735,052Total support and related programs ..............................................0192

15,87817,88735,052Total direct obligations ..................................................................0799544236Commodities procured - PL480 Titles II / III Commodity costs ....0802

544236Reimbursable program activities, subtotal ...................................0809




1,860398436Unobligated balance brought forward, Oct 1 .........................1000.................1,375205Recoveries of prior year unpaid obligations ...........................1021.................136119Recoveries of prior year paid obligations ...............................1033

1,8601,909760Unobligated balance (total) ......................................................1050Budget authority:


–21–21–20Appropriations transferred to other accts [012–3507] .......1220–3,655–3,775–3,622Appropriations transferred to other accts [012–1004] .......1220

–15–15–15Appropriations transferred to other accts [012–2073] .......1220–13–13–13Appropriations transferred to other accts [012–9913] .......1220–2–2–15Appropriations transferred to other accts [012–8015] .......1220

–85–73–73Appropriations 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] .......1220–75–63–63Appropriations transferred to other accts [012–1600] .......1220–3–3–3Appropriations transferred to other accts [012–1955] .......1220–1–1–1Appropriations transferred to other accts [012–0123] .......1220

–20.................–46Appropriations transferred to other accts [012–3106] .......1220–45–40–40Appropriations transferred to other accts [012–0502] .......1220

–100–100–100Appropriations transferred to other accts [012–1502] .......1220.................–3–3Appropriations transferred to other accts [012–1003] .......1220

–30–30–30Appropriations transferred to other accts [012–2500] .......1220–16–16–16Appropriations transferred to other accts [012–5635] .......1220–30–30–30Appropriations transferred to other accts [012–5636] .......1220

–13,318–17,052–2,727Appropriations applied to repay debt ................................1236Borrowing authority, discretionary:

–20–20.................Borrowing authority precluded from obligation (limitation

on obligations) ..............................................................1323

Borrowing authority, mandatory:15,83817,8173,895,070Borrowing authority ...........................................................1400

..................................–2,026Borrowing authority temporarily reduced ..........................1421

..................................–3,858,369Borrowing authority applied to repay debt ........................1422

..................................–20Borrowing authority precluded from obligation (limitation

on obligations) ..............................................................1423

15,83817,81734,655Borrowing authority, mandatory (total) .................................1440Spending authority from offsetting collections, mandatory:

7,3537,6536,669Collected ...........................................................................1800..................................136Change in uncollected payments, Federal sources ............1801


repay debt .....................................................................1825


Memorandum (non-add) entries:1,8421,860398Unexpired unobligated balance, end of year ..........................1941


19,41622,4903,959Unpaid obligations, brought forward, Oct 1 ..........................3000

..................................–1Adjustments to unpaid obligations, brought forward, Oct

1 .......................................................................................3001

15,93217,92935,088New obligations, unexpired accounts ....................................3010–21,579–19,628–16,351Outlays (gross) ......................................................................3020

.................–1,375–205Recoveries of prior year unpaid obligations, unexpired .........3040

13,76919,41622,490Unpaid obligations, end of year .................................................3050Uncollected payments:

–137–137–1Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060..................................–136Change in uncollected pymts, Fed sources, unexpired ..........3070







9,8059,44613,988Outlays from new mandatory authority .............................410011,79410,2022,363Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:.................–136–36Federal sources .................................................................4120

–7,257–7,570–6,752Commodity Loans Repaid ..................................................4123–20–20.................Assessments and Fees ......................................................4123–22–21.................Sales and Other Proceeds .................................................4123

–54–42.................Interest Revenue ...............................................................4123

–7,353–7,789–6,788Offsets against gross budget authority and outlays (total) ....4130Additional offsets against gross budget authority only:


.................136119Recoveries of prior year paid obligations, unexpired

accounts .......................................................................4143

.................136–17Additional offsets against budget authority only (total) ........4150

8,58110,24727,921Budget authority, net (mandatory) ............................................416014,24611,8599,563Outlays, net (mandatory) ...........................................................41708,56110,22727,921Budget authority, net (total) ..........................................................4180


Memorandum (non-add) entries:.................4,1132,067Unexpired unavailable balance, SOY: Borrowing authority ........5101..................................4,113Unexpired unavailable balance, EOY: Borrowing authority ........5102



Enacted/requested:8,56110,22727,921Budget Authority .......................................................................

14,22611,8399,563Outlays ......................................................................................Legislative proposal, subject to PAYGO:

–211..................................Budget Authority .......................................................................–211..................................Outlays ......................................................................................

Total:8,35010,22727,921Budget Authority .......................................................................

14,01511,8399,563Outlays ......................................................................................



Cumulative balance of direct loans outstanding:1,165465126Outstanding, start of year .........................................................12107,9298,2707,306Disbursements: Direct loan disbursements ...............................1231

–7,257–7,570–6,740Repayments: Repayments and prepayments .............................1251..................................–227Write-offs for default: Other adjustments, net (+ or -) ..............1264

1,8371,165465Outstanding, end of year .......................................................1290

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 2017 and 2018 budget estimates are primarily driven by ample worldgrain supplies and modest demand growth that keep prices from returningto pre-2014 Farm Bill levels. Lower acreage coupled with modest increasesin use is expected to stabilize or support small price increases in marketingyears 2016/2017 and 2018/2019. Nonetheless, there will be significantPrice Loss Coverage and Agriculture Risk Coverage payments. Outlayprojections are subject to complex and unpredictable factors such asweather, U.S. and world consumer income growth, factors which affectthe volume of production crops not yet planted, demands for feed, food,and bio-energy here and overseas, and foreign currency exchange ratesand 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. Price



COMMODITY CREDIT CORPORATION FUND—Continued

support 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 ofAugust 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, dry

peas, 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, grain


sorghum, 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.

Bio-Based Fuel Production.—Section 5(e) of the CCC Charter Act au-thorizes CCC to take action to increase the consumption of agricultural

commodities by "...aiding in the development of new and additional mar-kets, marketing facilities, and uses for such commodities." Under this au-thority, CCC will make available up to $170 million in total to subsidizethe production of bio-based jet fuel. Because there is no existing viablecommercial source for the large-scale production of such fuel, CCC hasentered into an agreement with the Department of Energy and the Navy toassist in the development of this product.

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 and extended indefinitely (beyondthe horizon of the 2014 Farm Bill). The programs are made retroactive toOctober 1, 2011. Producers are no longer required to purchase crop insur-ance or NAP coverage to be eligible for these programs (the risk manage-ment purchase requirement) as mandated by the 2008 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 upto 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 the



COMMODITY CREDIT CORPORATION FUND—Continued

Trust 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 FarmBill and other Corporation programs. Once transferred the expenses arerecorded in the receiving agencies accounts.



Direct obligations:555536Transportation of things ............................................................22.0

7,8758,2246,980Investments and loans ..............................................................33.07,9489,60828,036Grants, subsidies, and contributions ........................................41.0

15,87817,88735,052Direct obligations ..................................................................99.0

544236Reimbursable obligations: Other goods and services from Federal

sources ......................................................................................25.3

544236Reimbursable obligations .....................................................99.0


COMMODITY CREDIT CORPORATION FUND




Obligations by program activity:–199..................................Market Access Program .............................................................0016–34..................................Foreign Market Development Program .......................................0021–82..................................Conservation Reserve Program Financial Assistance ................0026

–315..................................Total support and related programs ..............................................0192

–315..................................Total direct obligations ..................................................................0799



Appropriations, mandatory:16..................................Appropriations transferred to other acct [012–5635] ........122030..................................Appropriations transferred to other acct [012–5636] ........122030..................................Appropriations transferred to other acct [012–2500] ........122085..................................Appropriations transferred to other acct [012–2501] ........122050..................................Appropriations transferred to other acct [012–1908] ........1220

–420..................................Appropriations transferred to other acct [012–1004] ........1220209..................................Appropriations applied to repay debt ................................1236

Borrowing authority, mandatory:–211..................................Borrowing authority ...........................................................1400–211..................................Budget authority (total) .............................................................1900–211..................................Total budgetary resources available ..............................................1930




–315..................................New obligations, unexpired accounts ....................................3010211..................................Outlays (gross) ......................................................................3020





–211..................................Outlays from new mandatory authority .............................4100–211..................................Budget authority, net (total) ..........................................................4180–211..................................Outlays, net (total) ........................................................................4190

The 2018 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. The Budget also eliminatesfunding for a number of programs for which there is no Federal purpose,those programs include the Market Access Program, the Foreign MarketDevelopment Cooperator Program, and the Biomass Crop AssistanceProgram. In a time of belt tightening, the Government should not be sub-sidizing the advertising and promotion of commodities, or providing sub-sidies for the manufacturing of biobased products. Lastly, the Budget targetsconservation funding to the most sensitive agricultural land, by maintainingacreage in the Conservation Reserve Program at the current statutory capof 24 million acres, eliminating distortionary signing and practice incentivepayments, and focusing near-term enrollment on higher-value continuousacreage.

✦

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, $6,735,000; 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 $353,000 shall betransferred to and merged with the appropriation for "Farm Service Agency,Salaries and Expenses".




Obligations by program activity:Credit program obligations:

562Loan guarantee subsidy ........................................................0702.................1223Reestimates of loan guarantee subsidy ................................0707.................25Interest on reestimates of loan guarantee subsidy ................0708

777Administrative expenses .......................................................0709




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


Appropriations, mandatory:51534Appropriation ....................................................................1200





–13–28–34Outlays (gross) ......................................................................3020





774Outlays from new discretionary authority ..........................401022.................Outlays from discretionary balances .................................4011



41530Outlays from new mandatory authority .............................4100.................4.................Outlays from mandatory balances ....................................4101




Guaranteed loan levels supportable by subsidy budget authority:5,0005,0002,150GSM 102 ....................................................................................215001500500.................Export guarantee program—Facilities ......................................215003


-.19-.24-.46GSM 102 ....................................................................................232001–2.86–3.96.................Export guarantee program—Facilities ......................................232003

-.43-.58-.46Weighted average subsidy rate ..................................................232999Guaranteed loan subsidy budget authority:

–9–12–10GSM 102 ....................................................................................233001–14–20.................Export guarantee program—Facilities ......................................233003

–23–32–10Total subsidy budget authority ..................................................233999Guaranteed loan subsidy outlays:

–9–13–10GSM 102 ....................................................................................234001–14–20.................Export guarantee program—Facilities ......................................234003

–23–33–10Total subsidy outlays .................................................................234999Guaranteed loan reestimates:

.................–14GSM 102 ....................................................................................235001

.................–2–1Supplier Credit ..........................................................................235002

.................–33Total 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.



COMMODITY CREDIT CORPORATION EXPORT (LOANS) CREDIT GUARANTEE PROGRAM

ACCOUNT—Continued

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 2018 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 2018 Budget includes $6.7 million for administrative ex-penses.



Direct obligations:777Other goods and services from Federal sources ........................25.352030Grants, subsidies, and contributions ........................................41.0


✦

COMMODITY CREDIT CORPORATION EXPORT GUARANTEE FINANCING ACCOUNT




195.................Default claim payments on principal ....................................0711151515Payment of interest to Treasury .............................................071333.................Pro Rate Share of Claims paid to banks ................................0715

233812Negative subsidy obligations ................................................0740.................1018Downward reestimates paid to receipt accounts ...................0742.................77Interest on downward reestimates ........................................0743



631830Unobligated balance brought forward, Oct 1 .........................1000–20–14–3Unobligated balances applied to repay debt .........................1023


Borrowing authority, mandatory:6660.................Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:8811071Collected ...........................................................................1800111Change in uncollected payments, Federal sources ............1801

–36–34–29Spending authority from offsetting collections applied to

repay debt .....................................................................1825





–60–78–52Outlays (gross) ......................................................................3020


Uncollected payments:–2–1.................Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060–1–1–1Change in uncollected pymts, Fed sources, unexpired ..........3070


–1.................1Obligated balance, start of year ............................................3100–2–1.................Obligated balance, end of year ..............................................3200




Offsetting collections (collected) from:.................–14–28Payments from Prograrm Account Upward Reestimate ......4120

–5–5–2Payments from Program Account Positive Subsidy ............4120–5–1.................Interest on uninvested funds ............................................4122

–43–54–11Loan origination fee ..........................................................4123–21–21–13Recoveries of Principal ......................................................4123–14–15–17Recoveries of Interest ........................................................4123

–88–110–71Offsets against gross budget authority and outlays (total) ....4130Additional offsets against financing authority only (total):

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

3026–29Budget authority, net (mandatory) ............................................4160–28–32–19Outlays, net (mandatory) ...........................................................41703026–29Budget authority, net (total) ..........................................................4180

–28–32–19Outlays, net (total) ........................................................................4190




5,5005,5002,150Guaranteed loan commitments from current-year authority .......2111



–5,198–5,198–2,789Repayments and prepayments ..................................................2251

–36–36.................Adjustments: Terminations for default that result in claim

payments ..............................................................................2263


Memorandum:


year .......................................................................................2299


in loans receivable:547586599Outstanding, start of year .....................................................2310–39–39–13Repayments of loans receivable ............................................2351





1931Fund balances with Treasury .....................................................11012337Accounts Receivable, net ...........................................................1101


586599Defaulted guaranteed loans receivable, gross ...........................15013433Interest receivable .....................................................................1502

–368–361Allowance for subsidy cost (-) ....................................................1505


1599


Federal liabilities:1...........................Accounts payable .......................................................................2101

264297Resources payable to Treasury ...................................................2104Non-Federal liabilities:

611Liabilities for loan guarantees ...................................................22042331Other ..........................................................................................2207




✦

COMMODITY CREDIT CORPORATION GUARANTEED LOANS LIQUIDATING ACCOUNT



Obligations by program activity:111Operating Expenses ...................................................................0001









.................87Unpaid obligations, brought forward, Oct 1 ..........................3000111New obligations, unexpired accounts ....................................3010

–1–9.................Outlays (gross) ......................................................................3020

..................................8Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

.................87Obligated balance, start of year ............................................3100

..................................8Obligated balance, end of year ..............................................3200



11.................Outlays from new mandatory authority .............................4100.................8.................Outlays from mandatory balances ....................................4101

19.................Outlays, gross (total) .............................................................4110Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–8–8–12Non-Federal sources .........................................................4123–7–7–11Budget authority, net (total) ..........................................................4180–71–12Outlays, net (total) ........................................................................4190




in loans receivable:637183Outstanding, start of year .....................................................2310–2–8–12Repayments of loans receivable ............................................2351





7183Defaulted guaranteed loans, gross ................................................1701220217Interest receivable .........................................................................1702


930Value of assets related to loan guarantees ................................1799


Federal liabilities:88Accounts payable .......................................................................2101924Resources payable to Treasury ...................................................2104

...........................6Non-Federal liabilities: Other .........................................................2207



✦

FARM STORAGE FACILITY LOANS PROGRAM ACCOUNT








Appropriations, mandatory:.................1127Appropriation ....................................................................1200.................1127Total budgetary resources available ..............................................1930



.................–11–27Outlays (gross) ......................................................................3020



.................1127Outlays from new mandatory authority .............................4100





Direct loan levels supportable by subsidy budget authority:300300159Farm Storage Facility Loans ......................................................115001

99.................Sugar Storage Facility Loans .....................................................115002

309309159Total direct loan levels ..............................................................115999Direct loan subsidy (in percent):

–1.27–1.30–1.64Farm Storage Facility Loans ......................................................132001–2.35–2.20.................Sugar Storage Facility Loans .....................................................132002

–1.30–1.33–1.64Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

–5–4–2Farm Storage Facility Loans ......................................................133001

–5–4–2Total subsidy budget authority ..................................................133999Direct loan subsidy outlays:

–5–5–4Farm Storage Facility Loans ......................................................134001

–5–5–4Total subsidy outlays .................................................................134999Direct loan reestimates:

.................222Farm Storage Facility Loans ......................................................135001

.................222Total 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.



FARM STORAGE FACILITY LOANS PROGRAM ACCOUNT—Continued

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




309309159Direct loan obligations ..........................................................0710252518Payment of interest to Treasury .............................................0713442Negative subsidy obligations ................................................0740






–57–18–54Unobligated balances applied to repay debt .........................1023..................................2Recoveries of prior year paid obligations ...............................1033

..................................7Unobligated balance (total) ......................................................1050Financing authority:


..................................–106Borrowing authority applied to repay debt ........................1422

350348168Borrowing authority, mandatory (total) .................................1440Spending authority from offsetting collections, mandatory:

.................1127Payments from program account (Upward Reestimate) .....1800166166164Principal repayments ........................................................1800202018Interest repayments ..........................................................180088.................Interest on Uninvested Funds ............................................180011.................Fees and Other Collections ................................................1800



repay debt .....................................................................1825












348348183Outlays, gross (total) .............................................................4110


.................–11–27Payment from program account Upward Reestimate ........4120–8–8.................Interest on uninvested funds ............................................4122

–166–166–164Principal collections ..........................................................4123–20–20–18Interest collections ............................................................4123–1–1–2Fees and Other Collections ................................................4123




accounts .......................................................................4143


200198–21Budget authority, net (mandatory) ............................................4160153142–28Outlays, net (mandatory) ...........................................................4170200198–21Budget authority, net (total) ..........................................................4180153142–28Outlays, net (total) ........................................................................4190



Position with respect to appropriations act limitation on obligations:309309159Direct loan obligations from current-year authority ...................1111

309309159Total direct loan obligations ..................................................1150

Cumulative balance of direct loans outstanding:886734750Outstanding, start of year .........................................................1210318318151Disbursements: Direct loan disbursements ...............................1231

–166–166–167Repayments: Repayments and prepayments .............................1251

1,038886734Outstanding, end of year .......................................................1290




127179Fund balances with Treasury .....................................................1101Investments in US securities:

......................................................Receivables, net ....................................................................1106Net value of assets related to post-1991 direct loans receivable:

734750Direct loans receivable, gross ....................................................14011010Interest receivable .....................................................................1402728Allowance for subsidy cost (-) ....................................................1405

751788Net present value of assets related to direct loans ................1499


Federal liabilities:878960Debt payable to Treasury ............................................................2103

...........................7Other 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:111Principal repayments ........................................................1800


repay debt .....................................................................1825



–1–1–1Principal repayments ........................................................4123–1–1–1Budget authority, net (total) ..........................................................4180–1–1–1Outlays, net (total) ........................................................................4190



Cumulative balance of direct loans outstanding:456Outstanding, start of year .........................................................1210





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

56Direct loans receivable, gross ....................................................1401–1–1Allowance for subsidy cost (-) ....................................................1405



45Federal liabilities: Accounts payable ..............................................2101


✦

AGRICULTURAL DISASTER RELIEF FUND



161616Balance, start of year ....................................................................0100

161616Total: Balances and receipts .....................................................2000




Obligations by program activity:.................21Agricultural Disaster Relief Fund (Direct) ..................................0001



141617Unobligated balance brought forward, Oct 1 .........................1000..................................21Recoveries of prior year unpaid obligations ...........................1021..................................–22Unobligated balances applied to repay debt .........................1023..................................1Recoveries of prior year paid obligations ...............................1033

141617Unobligated balance (total) ......................................................1050141617Total budgetary resources available ..............................................1930



..................................22Unpaid obligations, brought forward, Oct 1 ..........................3000


.................–2–2Outlays (gross) ......................................................................3020

..................................–21Recoveries of prior year unpaid obligations, unexpired .........3040Memorandum (non-add) entries:

..................................22Obligated balance, start of year ............................................3100


Outlays, gross:.................22Outlays from mandatory balances ....................................4101


..................................–1Non-Federal sources .........................................................4123Additional offsets against gross budget authority only:


accounts .......................................................................4143

.................21Outlays, net (mandatory) ...........................................................4170



Memorandum (non-add) entries:–2,612–2,612–2,634Outstanding 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 2016, the outlaysare due to residual payments, corrections and/or appeals to obligations in-curred during crop years 2008–2011. Obligations in 2017 will be still berequired to make residual payments for disaster programs under the DisasterTrust authority.

✦

PIMA AGRICULTURE COTTON TRUST FUND



Obligations by program activity:161515Pima Cotton Agreements ...........................................................0001











1615.................Outlays from new mandatory authority .............................4100..................................15Outlays from mandatory balances ....................................4101

161515Outlays, gross (total) .............................................................4110161515Budget authority, net (total) ..........................................................4180



PIMA AGRICULTURE COTTON TRUST FUND—Continued







Legislative proposal, subject to PAYGO:–16..................................Budget Authority .......................................................................–16..................................Outlays ......................................................................................

Total:.................1515Budget Authority ........................................................................................1515Outlays ......................................................................................

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.

PIMA AGRICULTURE COTTON TRUST FUND




Obligations by program activity:–16..................................Pima Cotton Agreements ...........................................................0001

–16..................................Total new obligations (object class 41.0) ......................................0900








The 2018 President's Budget eliminates funding for a number of pro-grams, including the Pima Cotton Trust Fund. In a time of belt tightening,the Government should not be singling out select commodities for specialassistance. Furthermore, there is no reason the Federal government shouldbe providing the majority of the $8 million that is made available formanufacturers of cotton shirts to one manufacturer.✦

AGRICULTURE WOOL APPAREL MANUFACTURERS TRUST FUND



Obligations by program activity:302828Wool Manufacturers Payments ..................................................0001













3028.................Outlays from new mandatory authority .............................4100..................................28Outlays from mandatory balances ....................................4101






Total:.................2828Budget Authority ........................................................................................2828Outlays ......................................................................................

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




Obligations by program activity:–30..................................Wool Manufacturers Payments ..................................................0001







–30..................................Budget authority, gross .........................................................4090


Outlays, gross:–30..................................Outlays from new mandatory authority .............................4100–30..................................Budget authority, net (total) ..........................................................4180–30..................................Outlays, net (total) ........................................................................4190

The 2018 President's Budget eliminates funding for a number of programs,including the Agriculture Wool Apparel Manufacturers Trust Fund. In atime of belt tightening, the Government should not be singling out selectcommodities for special assistance.

✦

Trust Funds

TOBACCO TRUST FUND



..................................21Balance, start of year ....................................................................0100

..................................–1Rounding adjustment ....................................................................0198

..................................20Balance, start of year ................................................................0199Receipts:

Current law:

..................................4Excise Taxes for Tobacco Assessments, Tobacco Trust

Fund ..................................................................................1110

..................................24Total: Balances and receipts .....................................................2000Appropriations:

Current law:..................................–4Tobacco Trust Fund ................................................................2101..................................–20Tobacco Trust Fund ................................................................2103

..................................–24Total current law appropriations .......................................2199

..................................–24Total appropriations ..................................................................2999




Obligations by program activity:..................................7Tobacco Buyout Cost Reimbursement to CCC ............................0001

..................................7Total new obligations (object class 41.0) ......................................0900


1717.................Unobligated balance brought forward, Oct 1 .........................1000Budget authority:

Appropriations, mandatory:..................................4Appropriation (special or trust fund) .................................1201..................................20Appropriation (previously unavailable) .............................1203

..................................24Appropriations, mandatory (total) .........................................1260171724Total budgetary resources available ..............................................1930



111Unpaid obligations, brought forward, Oct 1 ..........................3000..................................7New obligations, unexpired accounts ....................................3010..................................–7Outlays (gross) ......................................................................3020





..................................7Outlays from mandatory balances ....................................4101

..................................24Budget authority, net (total) ..........................................................4180

..................................7Outlays, net (total) ........................................................................4190

✦

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, $766,000,000,to remain available until September 30, 2019: 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, $985,050,000, 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.




Obligations by program activity:668844738Conservation Technical Assistance ...........................................0001808479Soil surveys ...............................................................................00029109Snow survey and water forecasting ...........................................00039129Plant materials centers .............................................................0004

..................................5Watershed Projects ....................................................................0005

..................................5Watershed Protection .................................................................0006985..................................Technical Assistance from 12–1004 .........................................0007

1,751950845Total direct obligations ..................................................................0799.................54EPA Great Lakes - Reimbursable ...............................................0801

161718Reimbursable Agency Activity ...................................................0802

162222Total reimbursable obligations ......................................................0899





Appropriations, discretionary:766849851Appropriation ....................................................................1100985..................................Appropriations transferred from other acct [012–1004] ....1121

1,751849851Appropriation, discretionary (total) .......................................1160Spending authority from offsetting collections, discretionary:


162122Spending auth from offsetting collections, disc (total) .........17501,767870873Budget authority (total) .............................................................1900

111DEPARTMENT OF AGRICULTURENatural Resources Conservation Service

Federal Funds

PRIVATE LANDS CONSERVATION OPERATIONS—Continued



1,7849891,007Total budgetary resources available ..............................................1930Memorandum (non-add) entries:

..................................–21Unobligated balance expiring ................................................19401717119Unexpired unobligated balance, end of year ..........................1941


448286214Unpaid obligations, brought forward, Oct 1 ..........................30001,767972867New obligations, unexpired accounts ....................................3010

..................................5Obligations ("upward adjustments"), expired accounts ........3011–1,374–810–778Outlays (gross) ......................................................................3020








1,767870873Budget authority, gross .........................................................4000Outlays, gross:

1,097527585Outlays from new discretionary authority ..........................4010277283193Outlays from discretionary balances .................................4011

1,374810778Outlays, gross (total) .............................................................4020Offsets against gross budget authority and outlays:


.................–5–10Non-Federal sources .........................................................4033





1,751849851Budget authority, net (discretionary) .........................................40701,358789749Outlays, net (discretionary) .......................................................40801,751849851Budget authority, net (total) ..........................................................41801,358789749Outlays, 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 by providing technical assistance to farmers,ranchers and other private landowners to support the development of con-servation plans, and by providing financial assistance to partially offsetthe cost to install practices necessary to safeguard natural resources andimprove wildlife habitat. NRCS provides additional science-based supportfor conservation efforts through soil surveys, snow survey and water supplyforecasting, and plant materials centers. These activities are supported byappropriated funding, including funding requested in the Private LandsConservation Operations account, and by mandatory funding in the FarmSecurity and Rural Investment account. NRCS comprises over 10,000employees across a wide range of natural resource backgrounds such assoil and rangeland conservation, wildlife biology, forestry and engineering.Through this collective conservationist workforce, the Administrationstrives to protect the natural resource base on private lands. The 2018Budget requests a total of $766 million for Private Lands ConservationOperations.

Technical assistance.—Through the Conservation Technical Assistance(CTA) Program, NRCS provides agricultural producers, private landowners,conservation districts, Tribes, and other organizations with the knowledgeand conservation tools they need to conserve, maintain, and improve ournatural resources. This assistance comes in the form of both individual andlandscape-scale conservation plans which contain optimal strategies tailored

to protect the resources on the land they manage. Actions described in theplans help land managers reduce erosion; protect water quality and quantity;address air quality; enhance the quality of fish and wildlife habitat; improvelong-term sustainability of all lands; and facilitate land use changes whileprotecting and sustaining our natural resources. The CTA Program alsoprovides the science-based tools that support conservation planning.

MAIN WORKLOAD FACTORS2018 est.2017 est.2016 actual

50,00055,00056,208Customers receiving technical assistance for planning & application,

number .............................................................................................18.020.020.3Conservation systems planned, million acres ......................................

5.35.96.0Cropland with conservation applied to improve soil quality, million

acres ................................................................................................

9.310.310.3Grazing 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 a keycomponent to the vitality of the Nation's rural economies. Scientists andpolicy makers use soil survey information in evaluating the sustainabilityand environmental impacts of land use and management practices. Soilsurveys are used by planners, engineers, farmers, ranchers, developers, andhome owners to evaluate soil suitability and make management decisionsfor farms, home sites, subdivisions, commercial and industrial sites, andwildlife and recreational areas. NRCS is the lead Federal agency for theNational Cooperative Soil Survey (NCSS), a partnership of Federal landmanagement agencies, State agricultural experiment stations, private con-sultants, and State and local governments. NRCS provides the scientificexpertise to enable the NCSS to develop and maintain a uniform systemfor mapping and assessing soil resources.

MAIN WORKLOAD FACTORS2018 est.2017 est.2016 actual

383842Acres mapped annually (millions) ............................................................

Snow survey and water supply forecasting.—NRCS field staff and cooper-ators collect and analyze data on snow depth, snow water equivalent, andother climate parameters at approximately 2,000 remote, high elevationdata collection sites. The water supply forecasts are used by individualfarmers and ranchers; water resource managers; Federal, State, and localgovernment agencies; municipal and industrial water providers; hydroelec-tric power generation utilities; irrigation districts; fish and wildlife manage-ment agencies; reservoir project managers; recreationists; Tribal Nations;and the countries of Canada and Mexico.

Operation of Plant Material Centers (PMCs). NRCS's network of 25PMCs identify, evaluate, and demonstrate the performance of plants andplant 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 BUDGET FOR FISCAL YEAR 2018112 Natural Resources Conservation Service—ContinuedFederal Funds—Continued

The studies conducted by PMCs help 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 as well as Federal and Stateland managing agencies.




297363323Full-time permanent .............................................................11.1408..................................Full-time permanent .............................................................11.1

232Other than full-time permanent ............................................11.33..................................Other than full-time permanent ............................................11.3798Other personnel compensation ..............................................11.56..................................Other personnel compensation ..............................................11.5

723375333Total personnel compensation ...........................................11.9114139124Civilian personnel benefits ........................................................12.1159..................................Civilian personnel benefits ........................................................12.1202522Travel and transportation of persons .........................................21.016..................................Travel and transportation of persons .........................................21.0222Transportation of things ............................................................22.0

181717Rental payments to GSA ............................................................23.113..................................Rental payments to GSA ............................................................23.1334336Rental payments to others ........................................................23.250..................................Rental payments to others ........................................................23.2222Communications, utilities, and miscellaneous charges ............23.33..................................Communications, utilities, and miscellaneous charges ............23.3111Printing and reproduction .........................................................24.01..................................Printing and reproduction .........................................................24.0

146195174Other services from non-Federal sources ..................................25.2174..................................Other services from non-Federal sources ..................................25.2

222Other goods and services from Federal sources ........................25.31..................................Other goods and services from Federal sources ........................25.3

9211399Operation and maintenance of facilities ...................................25.4114..................................Operation and maintenance of facilities ...................................25.4

..................................2Research and development contracts .......................................25.59119Supplies and materials .............................................................26.09..................................Supplies and materials .............................................................26.0

212522Equipment .................................................................................31.028..................................Equipment .................................................................................31.0

.................1.................Land and structures ..................................................................32.0

1,751951845Direct obligations ..................................................................99.0162222Reimbursable obligations .....................................................99.0

.................–1.................Adjustment for rounding ...........................................................99.5


Employment Summary


5,4005,9205,085Direct civilian full-time equivalent employment ............................10014,848..................................Direct civilian full-time equivalent employment ............................1001


✦

FARM SECURITY AND RURAL INVESTMENT PROGRAMS



Obligations by program activity:13616654Wetlands Reserve Program ........................................................0001

1,1311,8381,441Environmental Quality Incentives Program ................................0002.................144Agricultural Water Enhancement Program .................................0004

8139Wildlife Habitat Incentives Program ..........................................000596593Farm and Ranch Lands Protection Program ..............................0006

.................92Conservation Security Program .................................................000714242Grassland Reserve Program ......................................................0008

1,0911,5211,129Conservation Stewardship Program ..........................................0009.................55Agricultural Management Assistance Program .........................0010.................152Chesapeake Bay Watershed Initiative ........................................0011

.................71Healthy Forests Reserve Program ..............................................0012

.................12580Conservation Reserve Program - Direct .....................................0013108718346Agricultural Conservation Easement Program ...........................00146727059Regional Conservation Partnership Program .............................0015

..................................20Voluntary Public Access and Habitat Incentive Program ...........0016

.................10.................Mitigation Banking ....................................................................0017

2,6514,7943,157Total direct obligations ..................................................................0799.................1411Reimbursable program activities ..............................................0801

.................51Reimbursable EPA Great Lakes Environmental Quality Incentives

Program ................................................................................0802

.................1912Total reimbursable obligations ......................................................0899



2691,5681,278Unobligated balance brought forward, Oct 1 .........................1000..................................149Recoveries of prior year unpaid obligations ...........................1021

2691,5681,427Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, discretionary:–985..................................Appropriations transferred to other acct [012–1000] ........1120–214..................................Appropriations permanently reduced ................................1130

.................–207.................Appropriations precluded from obligation .........................1134

–1,199–207.................Appropriation, discretionary (total) .......................................1160Appropriations, mandatory:

207209136Appropriation (previously unavailable) .............................12033,6553,7753,622Appropriations transferred from other acct [012–4336] ....1221



..................................–209Appropriations precluded from obligation .........................1234

3,6073,7023,288Appropriations, mandatory (total) .........................................1260Spending authority from offsetting collections, mandatory:

.................149Offsetting Collections .......................................................1800

.................51Offsetting collections EPA Great Lakes, Other ...................1800


.................1922Spending auth from offsetting collections, mand (total) .......18502,4083,5143,310Budget authority (total) .............................................................19002,6775,0824,737Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:262691,568Unexpired unobligated balance, end of year ..........................1941











–1,199–207.................Budget authority, gross .........................................................4000Outlays, gross:

–684–60.................Outlays from new discretionary authority ..........................4010–68..................................Outlays from discretionary balances .................................4011

–752–60.................Outlays, gross (total) .............................................................4020Mandatory:


822882697Outlays from new mandatory authority .............................41002,6172,0242,121Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:.................–1–20Federal sources .................................................................4120.................–18.................Federal sources .................................................................4120..................................–2Non-Federal sources .........................................................4123

.................–19–22Offsets against gross budget authority and outlays (total) ....4130

113DEPARTMENT OF AGRICULTURENatural Resources Conservation Service—Continued


FARM SECURITY AND RURAL INVESTMENT PROGRAMS—Continued




3,6073,7023,288Budget authority, net (mandatory) ............................................41603,4392,8872,796Outlays, net (mandatory) ...........................................................41702,4083,4953,288Budget authority, net (total) ..........................................................41802,6872,8272,796Outlays, net (total) ........................................................................4190



Enacted/requested:2,4083,4953,288Budget Authority .......................................................................2,6872,8272,796Outlays ......................................................................................

Legislative proposal, subject to PAYGO:420..................................Budget Authority .......................................................................–2..................................Outlays ......................................................................................

Total:2,8283,4953,288Budget Authority .......................................................................2,6852,8272,796Outlays ......................................................................................

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 2018Budget's baseline beyond 2018 based upon scorekeeping conventions.

In 2018, 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 2018 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 2018, the Budget pro-poses $1.4 billion for this program and proposes to permanently cancelfunds exceeding this amount for the program in 2018.

Conservation Stewardship Program (CSP).—This program is authorizedby Section 1238D of the Food Security Act of 1985, as amended. The

Agricultural Act of 2014 reauthorized the program through 2018, and the2018 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 2018 Budget proposes $1.5 billion forthis program to enroll the authorized level of 10,000,000 acres. This pro-gram is the successor to the Conservation Security Program, which wasnot continued in the Food, Conservation and Energy Act of 2008 exceptas necessary to support contracts entered into before September 30, 2008.The 2018 Budget does not propose funding for the Conservation SecurityProgram.

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 2018 Budget assumes $50 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 2018 Budget assumes that the program extends beyond 2018in the baseline for scorekeeping purposes. For 2018, 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 2018 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 Management


Agency. 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. The2018 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 2018, 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 Federalpartners 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.




.................587373Full-time permanent .............................................................11.1

.................32Other than full-time permanent ............................................11.3

.................85Other personnel compensation ..............................................11.5

.................598380Total personnel compensation ...........................................11.9

.................222142Civilian personnel benefits ........................................................12.1

.................2514Travel and transportation of persons .........................................21.0

.................11Transportation of things ............................................................22.0

.................1312Rental payments to GSA ............................................................23.1

.................4331Rental payments to others ........................................................23.2

.................43Communications, utilities, and miscellaneous charges ............23.3

.................11Printing and reproduction .........................................................24.0

.................439162Other services from non-Federal sources ..................................25.2

.................11Other goods and services from Federal sources ........................25.3

.................42.................Operation and maintenance of facilities ...................................25.4111Research and development contracts .......................................25.5

.................86Supplies and materials .............................................................26.0

.................2316Equipment .................................................................................31.0100427184Land and structures ..................................................................32.0

2,5502,9462,203Grants, subsidies, and contributions ........................................41.0

2,6514,7943,157Direct obligations ..................................................................99.0.................1913Reimbursable obligations .....................................................99.0..................................–1Adjustment for rounding ...........................................................99.5


Employment Summary


.................4,7644,832Direct civilian full-time equivalent employment ............................1001


FARM SECURITY AND RURAL INVESTMENT PROGRAMS





Appropriations, mandatory:420..................................Appropriations transferred from other acct [012–4336] ....1221420..................................Budget authority (total) .............................................................1900420..................................Total budgetary resources available ..............................................1930



2..................................Outlays (gross) ......................................................................3020

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

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


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

–2..................................Outlays from new mandatory authority .............................4100420..................................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 increaseworking agricultural land and easement programs by providing an additional$250 million per year for the Environmental Quality Incentives Programand an additional $450 million per year for the Agricultural ConservationEasement Program. The Budget proposes to offset these program increasesby eliminating new enrollment in the Conservation Stewardship Programand the funding for the Regional Conservation Partnership Program (RCPP).The Administration supports the goals of the RCPP and will evaluate al-ternative mechanisms such as regulatory reform or legislative flexibilitythat would support a similar public-private partnership-based approach toconservation work.

✦

WATERSHED AND FLOOD PREVENTION OPERATIONS



Obligations by program activity:.................264115Emergency watershed protection operations .............................0003.................1.................Small watershed operations (P.L. 566) ......................................0004

141254EWP (SANDY) .............................................................................0006

14390119Total direct obligations ..................................................................0799474722Watershed and Flood Prevention Operations (Reimbursable) .....0802



31349330Unobligated balance brought forward, Oct 1 .........................1000..................................17Recoveries of prior year unpaid obligations ...........................1021..................................1Recoveries of prior year paid obligations ...............................1033



.................–1–20Unobligated balance of appropriations permanently

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

.................102137Appropriation, discretionary (total) .......................................1160Spending authority from offsetting collections, discretionary:

474733Collected ...........................................................................1700



WATERSHED AND FLOOD PREVENTION OPERATIONS—Continued



–17–30–28Change in uncollected payments, Federal sources ............1701







–46–76–104Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060173028Change in uncollected pymts, Fed sources, unexpired ..........3070










173028Change in uncollected pymts, Fed sources, unexpired .......4050


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

173029Additional offsets against budget authority only (total) ........4060

.................102137Budget authority, net (discretionary) .........................................407018316454Outlays, net (discretionary) .......................................................4080

.................102137Budget authority, net (total) ..........................................................418018316454Outlays, 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. The Further Continuing and SecurityAssistance Appropriations Act, 2017, provides $103.1 million for theEmergency Watershed Protection Program. Funding for the EmergencyWatershed Protection Program is typically provided through emergencysupplemental appropriations. The 2018 Budget does not request fundingfor this program.

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 2018 budget does not re-

quest funding for this program. NRCS is closing out watershed operationsprojects started prior to 2011 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 isclosing out small watershed operations projects started prior to 2011 withunobligated balances from prior years. The 2018 budget does not requestfunding 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 ofPublic Law 83–566 or 78–534 projects. No funding for these loans is as-sumed in 2018.



.................54Direct obligations: Personnel compensation: Full-time

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

.................54Total personnel compensation ...........................................11.9

.................22Civilian personnel benefits ........................................................12.1


.................378Other services from non-Federal sources ..................................25.2

.................51Operation and maintenance of facilities ...................................25.4

.................41Equipment .................................................................................31.014124Land and structures ..................................................................32.0

.................28487Grants, subsidies, and contributions ........................................41.0


..................................1Adjustment for rounding ...........................................................99.5


Employment Summary


.................5151Direct civilian full-time equivalent employment ............................1001242424Reimbursable civilian full-time equivalent employment ...............2001

✦

WATERSHED REHABILITATION PROGRAM




Obligations by program activity:.................1517Watershed Rhabilitation Program ..............................................0001

8..................................Small Watershed Rehabilitation Program ..................................0002

81517Total direct obligations ..................................................................0799181711Reimbursable program activity .................................................0801



82222Unobligated balance brought forward, Oct 1 .........................1000.................35Discretionary unobligated balance brought fwd, Oct 1 ......1001.................62Recoveries of prior year unpaid obligations ...........................1021



–61..................................Appropriations permanently reduced ................................1130.................–66.................Appropriations precluded from obligation .........................1134

–61–5412Appropriation, discretionary (total) .......................................1160Appropriations, mandatory:

667173Appropriation (previously unavailable) .............................1203




..................................–71Appropriations precluded from obligation .........................1234

6266–3Appropriations, mandatory (total) .........................................1260Spending authority from offsetting collections, discretionary:

18.................17Collected ...........................................................................1700191226Budget authority (total) .............................................................1900274050Total budgetary resources available ..............................................1930




–93–110–89Outlays (gross) ......................................................................3020.................–6–2Recoveries of prior year unpaid obligations, unexpired .........3040




–43–5429Budget authority, gross .........................................................4000Outlays, gross:

–6–211Outlays from new discretionary authority ..........................4010–41726Outlays from discretionary balances .................................4011

–10–427Outlays, gross (total) .............................................................4020Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–18.................–17Non-Federal sources .........................................................4033

Mandatory:6266–3Budget authority, gross .........................................................4090



10311462Outlays, gross (total) .............................................................41101129Budget authority, net (total) ..........................................................4180


Memorandum (non-add) entries:.................66.................Unexpired unavailable balance, SOY: Appropriations ................5096.................66.................Unexpired unavailable balance, EOY: Appropriations ................5098

Under the authorities of Section 14 of the Watershed Protection and FloodPrevention Act, assistance is provided to communities to address the rehab-ilitation of aging local dams. No funding is requested in the 2018 Budget,reflecting the Administration's position that the maintenance, repair, andoperation of these dams are the responsibility of local project sponsors.The Budget proposes to permanently cancel $61 million of mandatoryfunds provided prior to 2010 (see General Provisions for the Departmentof Agriculture).



Direct obligations:..................................1Personnel compensation: Full-time permanent .........................11.1

293Advisory and assistance services ..............................................25.1..................................1Other services from non-Federal sources ..................................25.2..................................1Research and development contracts .......................................25.5



.................–1–1Adjustment for rounding ...........................................................99.5


Employment Summary



✦

HEALTHY FORESTS RESERVE PROGRAM

Title V of the Healthy Forests Restoration Act of 2003 (Public Law108–148) authorized the establishment of the Healthy Forests ReserveProgram (HFRP). This program assists landowners in restoring, enhancingand protecting forest ecosystems to: 1) promote the recovery of threatenedand endangered species; 2) improve biodiversity; and 3) enhance carbonsequestration.

Administered by NRCS, HFRP is a voluntary program with enrollmenteligible only to privately-held land. Land enrolled in HFRP must have arestoration plan that includes practices necessary to restore and enhancehabitat for species listed as threatened or endangered, or are candidates forthe threatened or endangered species list. Technical assistance is providedby USDA to assist owners in complying with the terms of restoration plansunder HFRP.

The 2018 Budget does not request funding for HFRP.✦

WATER BANK PROGRAM



Obligations by program activity:.................54Water Bank Program ..................................................................0001

.................54Total new obligations, unexpired accounts (object class 41.0) .......0900



Appropriations, discretionary:.................44Appropriation ....................................................................1100.................55Total budgetary resources available ..............................................1930




–5–3–2Outlays (gross) ......................................................................3020








The Water Bank Program was authorized by the Water Bank Act of 1970(16 U.S.C. 1301–1311), as amended by Public Law 96–182, approvedJanuary 2, 1980. The objectives of the Water Bank Program are to conservewater; to preserve, maintain, and improve the Nation's wetlands; to increasewaterfowl habitat in migratory waterfowl nesting, breeding, and feedingareas in the United States; and to secure recreational and environmentalbenefits for the Nation. No funding is requested in the 2018 Budget forthis program.

Employment Summary


.................11Direct civilian full-time equivalent employment ............................1001

✦



DAMAGE ASSESSMENT AND RESTORATION REVOLVING FUND





Spending authority from offsetting collections, discretionary:..................................2Collected ...........................................................................1700




..................................2Budget authority, gross .........................................................4000Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:..................................–2Non-Federal sources .........................................................4033...................................................Budget authority, net (total) ..........................................................4180..................................–2Outlays, 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; $186,076,000: 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:186226231Salaries and expenses ...............................................................0001

438477468Reimbursable program - Program Transfers and Reimbursable

Obligations ............................................................................0801




.................2123Unobligated balance transfers between expired and unexpired

accounts ...........................................................................1012


























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.






99117121Total personnel compensation ...........................................11.9314042Civilian personnel benefits ........................................................12.1454Travel and transportation of persons .........................................21.0777Rental payments to GSA ............................................................23.1667Rental payments to others ........................................................23.2111Communications, utilities, and miscellaneous charges ............23.3111Printing and reproduction .........................................................24.0554Advisory and assistance services ..............................................25.111.................Other services from non-Federal sources ..................................25.2

..................................1Other goods and services from Federal sources ........................25.3151717Operation and maintenance of facilities ...................................25.4142425Research and development contracts .......................................25.5111Supplies and materials .............................................................26.011.................Equipment .................................................................................31.0



Employment Summary


1,1631,5951,602Direct civilian full-time equivalent employment ............................10012,7373,2303,245Reimbursable civilian full-time equivalent employment ...............2001

✦

RURAL ECONOMIC INFRASTRUCTURE GRANTS


For grants for very low-income housing repair made by the Rural Housing Service,as authorized by 42 U.S.C. 1474; for grants for rural community facilities, as au-thorized by section 306 and described in section 381E(d)(1) of the ConsolidatedFarm and Rural Development Act; for grants for telemedicine distance learningservices in rural areas, as authorized by 7 U.S.C. 950aaa et seq.; and for grants tofinance broadband transmission in rural areas eligible for Distance Learning andTelemedicine Program benefits, as authorized by 7 U.S.C. 950aaa; $161,893,000,to remain available until expended: Provided, That sections 381E-H and 381N ofthe Consolidated Farm and Rural Development Act are not applicable to the fundsmade available under this heading: Provided further, That for the purposes of de-termining eligibility or level of program assistance the Secretary shall not includeincarcerated prison populations: Provided further, That any balances available forthe very low-income housing repair grants in the "Rural Housing Assistance Grants"account; the rural community facilities grants in the "Rural Community FacilitiesProgram Account"; and the telemedicine and distance learning grants and thebroadband grants in the "Distance Learning, Telemedicine, and Broadband Pro-gram" account shall be transferred to and merged with funds made available underthis heading: Provided further, That of the amounts provided under this heading,not more than $80,000,000 shall be made available through June 30, 2018, forjurisdictions in the Appalachian region, as defined by 40 U.S.C. 14102(a)(1).



Obligations by program activity:162..................................Rural Economic Infrastructure ..................................................0001

162..................................Total new obligations, unexpired accounts (object class 41.0) .......0900


Appropriations, discretionary:162..................................Appropriation ....................................................................1100162..................................Total budgetary resources available ..............................................1930


162..................................New obligations, unexpired accounts ....................................3010




162..................................Budget authority, gross .........................................................4000162..................................Budget authority, net (total) ..........................................................4180


The 2018 Budget requests a new consolidated Rural Economic Infrastruc-ture Grants account. The following programs are part of this account:

The Distance Learning and Telemedicine (DLT) grant program is spe-cifically designed to meet the educational and health care needs of ruralAmerica through the use of advanced telecommunications technologies.Advanced telecommunications services play a vital role in the economicdevelopment, education, and health care of rural Americans. The DLTprogram provides grants for the deployment of equipment utilized inproviding distance learning and telemedicine services to rural schools,educational institutions and health care providers. The DLT program assistsrural schools and learning centers in gaining access to improved educationalresources, and assists rural hospitals and health care centers in gaining ac-cess to improved medical resources. Projects funded under the programare providing new and improved health care services and benefits to ruralresidents, many in medically underserved areas, by linking to urban med-ical centers for clinical interactive video consultation, distance training ofrural health care providers, and access to medical expertise and library re-sources. Distance learning projects provide funding for internet-basededucational services in schools and libraries and promote confidence in,and understanding of, the internet and its benefits to students and youngentrepreneurs.

The Community Connect grant program provides financial assistance inthe form of grants to eligible applicants that will provide, on a "community-oriented connectivity" basis, broadband service that fosters economicgrowth and delivers enhanced educational, health care, and public safetybenefits. The provision of broadband service is vital to the economic devel-opment, education, health, and safety of rural Americans. Priority is givento the most rural and economically challenged communities. Specific areasbeing addressed currently include communities and areas that are unservedby broadband. One major goal of the program is to provide all criticalcommunity facilities in a service area with free access to broadband internetfor two years.

The Section 504 Housing Repair grant program funds home repairs andimprovements with grants of up to $7,500 that resolve health and safetyhazards for very low-income elderly rural homeowners.

The Community Facility (CF) grant program offers competitive grantsto help rural communities build or improve community infrastructure andessential community facilities for public use in rural communities of 20,000or less. CF programs have the flexibility to finance more than 100 separatetypes of essential community facilities. Strengthening investment in ruralcommunity infrastructure is critical for spurring economic growth, creatingjobs and improving access to healthcare, education, public safety and othercritical facilities and services.

This consolidation of these grants into one account will provide the Ad-ministration with the flexibility to place resources where the maximumimpact can be made for economic infrastructure development. The 2018Budget proposes $162 million for this account, with $80 million of thefunds specifically targeted to communities located in Appalachia.

✦

RURAL HOUSING SERVICEFederal Funds

RURAL HOUSING ASSISTANCE GRANTS

Note.—A full-year 2017 appropriation for this account was not enacted at the time the budgetwas prepared; therefore, the budget assumes this account is operating under the Further Continu-

119DEPARTMENT OF AGRICULTURERural Housing Service

Federal Funds

RURAL HOUSING ASSISTANCE GRANTS—Continued




Obligations by program activity:.................2931Very Low-Income Housing Repair Grants ...................................0012.................44Rural Housing Preservation Grants ...........................................0016















.................2727Outlays from new discretionary authority ..........................4010898Outlays from discretionary balances .................................4011



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. Funding in the 2018 Budget is beingrequested under the Rural Economic Infrastructure Grants account.

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 2018 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, $1,345,293,000; and in addition such sums as may be neces-sary, as authorized by section 521(c) of the Act, to liquidate debt incurred prior tofiscal year 1992 to carry out the rental assistance program under section 521(a)(2)of the Act: Provided, That rental assistance agreements entered into or renewedduring the current fiscal year shall be funded for a one-year period: Provided further,That any unexpended balances remaining at the end of such one-year agreementsmay be transferred and used for purposes of any debt reduction; maintenance, repair,or rehabilitation of any existing projects; preservation; and rental assistanceactivities authorized under title V of the Act: Provided further, That rental assistanceprovided under agreements entered into prior to fiscal year 2018 for a farm labormulti-family housing project financed under section 514 or 516 of the Act may not

be recaptured for use in another project until such assistance has remained unusedfor a period of 12 consecutive months, if such project has a waiting list of tenantsseeking such assistance or the project has rental assistance eligible tenants who arenot receiving such assistance: Provided further, That such recaptured rental assist-ance shall, to the extent practicable, be applied to another farm labor multi-familyhousing project financed under section 514 or 516 of the Act: Provided further,That except as provided in the third proviso under this heading and notwithstandingany other provision of the Act, the Secretary may recapture rental assistance providedunder agreements entered into prior to fiscal year 2018 for a project that the Secret-ary determines no longer needs rental assistance and use such recaptured funds forcurrent needs.




Obligations by program activity:1,3451,3871,390Rental assistance program .......................................................0001

1,3451,3871,390Total new obligations (object class 41.0) ......................................0900



9910Appropriation ....................................................................1100–9–9–10Appropriations substituted for borrowing authority ...........1139

1,3451,3871,390Appropriation, discretionary (total) .......................................11601,3451,3871,390Total budgetary resources available ..............................................1930



–1,624–1,216–1,197Outlays (gross) ......................................................................3020










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. Funding under this ac-count is provided for renewals of existing rental assistance contracts. For2018, the request for rental assistance grants is for contracts for up to oneyear, with one-year availability, with a total funding level of $1.35 billion.Rural Development is committed to maintaining a sustainable rental assist-ance program.

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.

THE BUDGET FOR FISCAL YEAR 2018120 Rural Housing Service—ContinuedFederal Funds—Continued

Prior year obligations are funded with "such sums" amounts to cover thosepre-credit reform contracts in RHIF.

✦

MULTI-FAMILY HOUSING REVITALIZATION PROGRAM ACCOUNT

For the rural housing voucher program as authorized under section 542 of theHousing Act of 1949, but notwithstanding subsection (b) of such section, $20,000,000,to remain available until expended: Provided, That the funds made available underthis heading shall be available for rural housing vouchers to any low-incomehousehold (including those not receiving rental assistance) residing in a propertyfinanced with a section 515 loan which has been prepaid after September 30, 2005:Provided further, That the amount of such voucher shall be the difference betweencomparable market rent for the section 515 unit and the tenant paid rent for suchunit: Provided further, That funds made available for such vouchers shall be subjectto the availability of annual appropriations: Provided further, That the Secretaryshall, to the maximum extent practicable, administer such vouchers with currentregulations and administrative guidance applicable to section 8 housing vouchersadministered by the Secretary of the Department of Housing and Urban Development:Provided further, That in addition to any other available funds, the Secretary mayexpend not more than $1,000,000 total, from the program funds made availableunder this heading, for administrative expenses for activities funded under thisheading.




Obligations by program activity:202020Grants .......................................................................................0010

Credit program obligations:.................1837Direct loan subsidy ................................................................0701..................................2Subsidy for modifications of direct loans ..............................0703.................11Reestimates of direct loan subsidy .......................................0705






333Recoveries of prior year unpaid obligations ...........................1021




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


.................11Appropriation ....................................................................1200163838Budget authority (total) .............................................................1900234465Total budgetary resources available ..............................................1930









2612Outlays from new discretionary authority ..........................4010




.................11Outlays from new mandatory authority .............................4100163838Budget authority, net (total) ..........................................................4180404743Outlays, net (total) ........................................................................4190



Direct loan levels supportable by subsidy budget authority:..................................2Multi-Family Housing Relending Demo ......................................115001.................1256Multi-Family Housing Revitalization Seconds ............................115002.................2012Multi-Family Revitalization Zero ................................................115003

.................3270Total direct loan levels ..............................................................115999Direct loan subsidy (in percent):

.................32.3831.26Multi-Family Housing Relending Demo ......................................132001

.................57.0154.12Multi-Family Housing Revitalization Seconds ............................132002

.................51.2952.68Multi-Family Revitalization Zero ................................................132003

.................53.4453.22Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

..................................1Multi-Family Housing Relending Demo ......................................133001

.................730Multi-Family Housing Revitalization Seconds ............................133002

.................106Multi-Family Revitalization Zero ................................................133003

.................1737Total subsidy budget authority ..................................................133999Direct loan subsidy outlays:

111Multi-Family Housing Relending Demo ......................................13400112169Multi-Family Housing Revitalization Seconds ............................1340029810Multi-Family Revitalization Zero ................................................134003224Multi-Family Housing Revitalization Modifications ...................134006


..................................–1Multi-Family Housing Relending Demo ......................................135001

.................1–1Multi-Family Housing Revitalization Seconds ............................135002

..................................–1Multi-Family Revitalization Zero ................................................135003

.................–5.................Multi-Family Housing Revitalization Modifications ...................135006

.................–4–3Total direct loan reestimates .....................................................135999

USDA's portfolio of multi-family housing projects provides housing fornearly half a million low-income families, many of whom are elderly.Projects that received their financing prior to 1989 are allowed to prepayand leave the program. USDA may assist families displaced by sponsors'prepayments by providing them with letters of priority and vouchers, whichwere newly funded in 2006. The Budget requests $20 million in 2018 forhousing vouchers for residents of projects whose sponsors prepay theiroutstanding indebtedness on USDA loans and leave the program. Thevouchers related to prepayments will be awarded based on prioritizationof need as determined by the Secretary. No funding is requested in the2018 Budget for the multi-family housing revitalization pilot program. The2018 Budget also includes language to permanently cancel $4 million inunobligated balances from this account.

✦

MULTIFAMILY HOUSING REVITALIZATION DIRECT LOAN FINANCING ACCOUNT




.................3370Direct loan obligations ..........................................................0710151413Payment of interest to Treasury .............................................0713



..................................27Adjusting payments to liquidating accounts .........................0744



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


.................–10–1Unobligated balances applied to repay debt .........................1023

121DEPARTMENT OF AGRICULTURERural Housing Service—Continued


MULTIFAMILY HOUSING REVITALIZATION DIRECT LOAN FINANCING

ACCOUNT—Continued



..................................–8Unobligated balance of borrowing authority withdrawn ........1024Financing authority:


Spending authority from offsetting collections, mandatory:303456Collected ...........................................................................1800–61213Change in uncollected payments, Federal sources ............1801


repay debt .....................................................................1825

..................................38Spending auth from offsetting collections, mand (total) .......18501553125Budget authority (total) .............................................................19001553125Total budgetary resources available ..............................................1930






–70–58–45Uncollected pymts, Fed sources, brought forward, Oct 1 ........30606–12–13Change in uncollected pymts, Fed sources, unexpired ..........3070






Offsetting collections (collected) from:

–24–28–25Federal sources - subsidy outlays from program

account .........................................................................4120

..................................–25Modification Costs ............................................................4120–3–3–3Interest on uninvested funds ............................................4122–2–2–2Repayments of Principal ...................................................4123–1–1–1Interest receivable on loans ..............................................4123


6–12–13Change in uncollected pymts, Fed sources, unexpired .......4140

–9756Budget authority, net (mandatory) ............................................4160405944Outlays, net (mandatory) ...........................................................4170–9756Budget authority, net (total) ..........................................................4180405944Outlays, net (total) ........................................................................4190



Position with respect to appropriations act limitation on obligations:.................3232Direct loan obligations from current-year authority ...................1111.................138Limitation available from carry-forward ....................................1121

.................3370Total direct loan obligations ..................................................1150


Disbursements:434638Direct loan disbursements ....................................................1231122745Purchase of loans assets from a liquidating account ...........1233–2–2–2Repayments: Repayments and prepayments .............................1251





Net value of assets related to post-1991 direct loans receivable:642561Direct loans receivable, gross ....................................................14014839Interest receivable .....................................................................1402






✦

MUTUAL AND SELF-HELP HOUSING GRANTS




Obligations by program activity:.................2829Mutual and self-help housing grants ........................................0001



11109Unobligated balance brought forward, Oct 1 .........................1000..................................9Discretionary unobligated balance brought fwd, Oct 1 ......1001





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

–112828Appropriation, discretionary (total) .......................................116013939Total budgetary resources available ..............................................1930









–1146Outlays from new discretionary authority ..........................4010243026Outlays from discretionary balances .................................4011

133432Outlays, gross (total) .............................................................4020–112828Budget authority, net (total) ..........................................................4180133432Outlays, net (total) ........................................................................4190

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 2018 Budget for this program. The 2018 Budget alsoincludes language to permanently cancel $11 million in unobligated bal-ances from this account.

✦


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, $3,000,000,000 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:.................2931CF Grants ..................................................................................0010.................49Rural Community Development Initiative Grants .......................0012.................66Economic Impact Initiative Grants ............................................0013

.................3946Direct program activities, subtotal ................................................0091Credit program obligations:

.................46Loan guarantee subsidy ........................................................0702




.................54Interest on reestimates of loan guarantee subsidy ................0708148..................................Administrative expenses .......................................................0709








Appropriations, mandatory:.................246112Appropriation ....................................................................1200
















Direct loan levels supportable by subsidy budget authority:1,7982,1961,808Community Facility Loans .........................................................115002

.................4402Direct loan levels .......................................................................115005


–8.10–2.56–8.04Community Facility Loans .........................................................132002.................–3.83–1.79Subsidy rate ..............................................................................132005


–146–56–145Community Facility Loans .........................................................133002..................................–7Subsidy budget authority ..........................................................133005

–146–56–152Total subsidy budget authority ..................................................133999Direct loan subsidy outlays:

–103–150–92Community Facility Loans .........................................................134002–2..................................Net subsidy outlays ...................................................................134005


.................17692Community Facility Loans .........................................................135002

.................17692Total direct loan reestimates .....................................................135999

Guaranteed loan levels supportable by subsidy budget authority:.................157237Community Facility Loan Guarantees ........................................215002

.................157237Total loan guarantee levels .......................................................215999Guaranteed loan subsidy (in percent):

.................2.242.36Community Facility Loan Guarantees ........................................232002

.................2.242.36Weighted average subsidy rate ..................................................232999Guaranteed loan subsidy budget authority:

.................46Community Facility Loan Guarantees ........................................233002

.................46Total subsidy budget authority ..................................................233999Guaranteed loan subsidy outlays:

454Community Facility Loan Guarantees ........................................234002


.................138Community Facility Loan Guarantees ........................................235002

.................138Total guaranteed loan reestimates ............................................235999

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 billionfor direct loans. The 2018 Budget proposes no guaranteed loans or fundingfor place-based community projects, Rural Community Development Ini-tiative, and Tribal College Grants. Funding in the 2018 Budget for theCommunity Facilities Grants program is being requested under the RuralEconomic Infrastructure Grants 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 2018 Budget requests $147.6 million.

✦



RURAL COMMUNITY FACILITY DIRECT LOANS FINANCING ACCOUNT




1,7982,2002,210Direct loan obligations ..........................................................0710301292284Payment of interest to Treasury .............................................071314656153Negative subsidy obligations ................................................0740









Borrowing authority, mandatory:1,2961,5842,356Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:9491,015806Collected ...........................................................................1800

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

..................................–171Spending authority from offsetting collections applied to

repay debt .....................................................................1825

9491,016634Spending auth from offsetting collections, mand (total) .......18502,2452,6002,990Budget authority (total) .............................................................19002,2452,6002,990Total budgetary resources available ..............................................1930






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

–1–1.................Uncollected pymts, Fed sources, end of year .............................3090Memorandum (non-add) entries:




2,1652,3441,610Outlays, gross (total) .............................................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:.................–228–96Federal sources .................................................................4120

–114–95–63Interest on uninvested funds ............................................4122–513–425–417Repayment of principal .....................................................4123–322–267–223Interest received on loans .................................................4123


–949–1,015–806Offsets against gross budget authority and outlays (total) ....4130Additional offsets against financing authority only (total):

.................–11Change in uncollected pymts, Fed sources, unexpired .......4140

1,2961,5842,185Budget authority, net (mandatory) ............................................41601,2161,329804Outlays, net (mandatory) ...........................................................41701,2961,5842,185Budget authority, net (total) ..........................................................41801,2161,329804Outlays, net (total) ........................................................................4190






–513–425–417Repayments: Repayments and prepayments .............................1251Write-offs for default:

–11–10–39Direct loans ...........................................................................1263..................................–10Other 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.










Federal liabilities:7,2076,386Accounts payable .......................................................................2101

524Other ..........................................................................................2105


7,2596,390Total liabilities and net position .....................................................4999

✦

RURAL COMMUNITY FACILITY GUARANTEED LOANS FINANCING ACCOUNT




999Default claim payments on principal ....................................0711111Payment of interest to Treasury .............................................0713





556146Unobligated balance brought forward, Oct 1 .........................1000.................–19–6Unobligated balances applied to repay debt .........................1023


Borrowing authority, mandatory:..................................14Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:82625Collected ...........................................................................1800421Change in uncollected payments, Federal sources ............1801





Uncollected payments:–16–14–13Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060–4–2–1Change in uncollected pymts, Fed sources, unexpired ..........3070

–20–16–14Uncollected pymts, Fed sources, end of year .............................3090


Memorandum (non-add) entries:–16–14–13Obligated balance, start of year ............................................3100–20–16–14Obligated balance, end of year ..............................................3200




Offsetting collections (collected) from:–4–22–21Federal sources .................................................................4120–2–2–1Interest on uninvested funds ............................................4122–1–1–1Guarantee Fees .................................................................4123–1–1–2Repayment of loan principal .............................................4123


–4–2–1Change in uncollected pymts, Fed sources, unexpired .......4140

..................................14Budget authority, net (mandatory) ............................................41602–11–6Outlays, net (mandatory) ...........................................................4170

..................................14Budget authority, net (total) ..........................................................41802–11–6Outlays, net (total) ........................................................................4190




.................156148Guaranteed loan commitments from current-year authority .......2111

.................4101Limitation available from carry-forward ....................................2121

.................–3–12Uncommitted loan guarantee limitation ....................................2142

.................157237Total guaranteed loan commitments .....................................2150

..................................190Guaranteed amount of guaranteed loan commitments .................2199

Cumulative balance of guaranteed loans outstanding:1,2661,2161,285Outstanding, start of year .........................................................221015514985Disbursements of new guaranteed loans ..................................2231–94–90–137Repayments and prepayments ..................................................2251

Adjustments:–9–9–8Terminations for default that result in loans receivable ........2261

..................................–1Terminations for default that result in claim payments ........2263

..................................–8Other adjustments, net .........................................................2264


Memorandum:


year .......................................................................................2299


in loans receivable:131315Outstanding, start of year .....................................................2310138Disbursements for guaranteed loan claims ...........................2331

–2–2–8Repayments of loans receivable ............................................2351–1–1–1Write-offs of loans receivable ................................................2361



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.





1315Defaulted guaranteed loans receivable, gross ...........................1501...........................–1Allowance for subsidy cost (-) ....................................................1505


1599


2012Federal liabilities: Resources payable to Treasury ..........................21044035Non-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.

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:.................1216Farm labor housing grants ........................................................0011

Credit program obligations:.................8084Direct loan subsidy ................................................................0701.................3431Reestimates of direct loan subsidy .......................................0705.................4222Interest on reestimates of direct loan subsidy .......................0706.................2772,822Reestimates of loan guarantee subsidy ................................0707.................131251Interest on reestimates of loan guarantee subsidy ................0708


2449813,628Direct program activities, subtotal ................................................0791




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




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


.................4843,125Appropriation ....................................................................12002409883,631Budget authority (total) .............................................................19002479993,653Total budgetary resources available ..............................................1930





–286–1,010–3,635Outlays (gross) ......................................................................3020–1–3.................Recoveries of prior year unpaid obligations, unexpired .........3040






RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT—Continued







.................4843,125Budget authority, gross .........................................................4090Outlays, gross:

.................4843,125Outlays from new mandatory authority .............................41002409883,631Budget authority, net (total) ..........................................................41802861,0103,635Outlays, net (total) ........................................................................4190



Direct loan levels supportable by subsidy budget authority:.................896958Section 502 Single-Family Housing ...........................................115001.................2829Section 515 Multi-Family Housing .............................................115004.................2518Section 504 Housing Repair ......................................................115007.................2832Section 514 Farm Labor Housing ...............................................115011..................................5Section 524 Site Development ...................................................115012

222Single-Family Housing Credit Sales ..........................................115014

29791,044Total direct loan levels ..............................................................115999Direct loan subsidy (in percent):

.................6.776.75Section 502 Single-Family Housing ...........................................132001

.................29.6029.63Section 515 Multi-Family Housing .............................................132004

.................13.9413.03Section 504 Housing Repair ......................................................132007

.................29.5628.46Section 514 Farm Labor Housing ...............................................132011

.................2.22–1.53Section 524 Site Development ...................................................1320120.008.34-.30Section 523 Self-Help Housing ..................................................132013

–5.45–2.36–4.87Single-Family Housing Credit Sales ..........................................132014

–5.458.248.10Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

.................6165Section 502 Single-Family Housing ...........................................133001

.................89Section 515 Multi-Family Housing .............................................133004

.................32Section 504 Housing Repair ......................................................133007

.................89Section 514 Farm Labor Housing ...............................................133011


137257Section 502 Single-Family Housing ...........................................13400191214Section 515 Multi-Family Housing .............................................134004152Section 504 Housing Repair ......................................................134007885Section 514 Farm Labor Housing ...............................................134011


.................–76–24Section 502 Single-Family Housing ...........................................135001

.................1–14Section 515 Multi-Family Housing .............................................135004

.................33Section 504 Housing Repair ......................................................135007

.................–1–1Section 514 Farm Labor Housing ...............................................135011

.................1.................Section 524 Site Development ...................................................135012

.................1–5Single-Family Housing Credit Sales ..........................................135014


Guaranteed loan levels supportable by subsidy budget authority:187188187Guaranteed 538 Multi-Family Housing ......................................215003

16,35721,20016,357Guaranteed 502 Single Family Housing .....................................215011


–3.62–3.53–2.97Guaranteed 538 Multi-Family Housing ......................................232003-.71-.76-.15Guaranteed 502 Single Family Housing .....................................232011

-.74-.78-.18Weighted average subsidy rate ..................................................232999Guaranteed loan subsidy budget authority:

–7–7–6Guaranteed 538 Multi-Family Housing ......................................233003–116–161–25Guaranteed 502 Single Family Housing .....................................233011

–123–168–31Total subsidy budget authority ..................................................233999Guaranteed loan subsidy outlays:

–5–3–1Guaranteed 538 Multi-Family Housing ......................................234003–142–137–33Guaranteed 502 Single Family Housing .....................................234011

–147–140–34Total subsidy outlays .................................................................234999Guaranteed loan reestimates:

..................................818Guaranteed 502 Single Family Housing, Purchase ....................235001

.................–7–12Guaranteed 502, Refinance .......................................................235002

.................–15–11Guaranteed 538 Multi-Family Housing ......................................235003

.................–6,4872,254Guaranteed 502 Single Family Housing .....................................235011

.................–6,5093,049Total 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 2018, the Section 502 single family housing guarantees are requestedat a $24 billion loan level. The subsidy rate for 2018 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 2018 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, which removes the main subsidy cost drivers inthis program.

No funding is requested in the 2018 Budget for the farm labor housingloans and grants. In addition, the 2018 Budget includes language to perman-ently cancel $4 million in unobligated farm labor housing program balancesfrom 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 2018 Budget requests $244.2 million.



Direct obligations:244417418Other goods and services from Federal sources ........................25.3

.................5763,226Grants, subsidies, and contributions ........................................41.0


✦

RURAL HOUSING INSURANCE FUND DIRECT LOAN FINANCING ACCOUNT



Obligations by program activity:126124124Advances on behalf of borrowers ...............................................0005

Credit program obligations:29791,044Direct loan obligations ..........................................................0710

729732735Payment of interest to Treasury .............................................0713.................12875Downward reestimates paid to receipt accounts ...................0742.................1818Interest on downward reestimates ........................................0743

7311,8571,872Direct program activities, subtotal ................................................0791


8571,9811,996Total new obligations, unexpired accounts ....................................0900


5754542Unobligated balance brought forward, Oct 1 .........................1000..................................74Recoveries of prior year unpaid obligations ...........................1021.................–754–555Unobligated balances applied to repay debt .........................1023..................................–61Unobligated balance of borrowing authority withdrawn ........1024

5..................................Unobligated balance (total) ......................................................1050Financing authority:

Borrowing authority, mandatory:.................1861,410Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:1,6741,8061,741Collected ...........................................................................1800–31–6–1Change in uncollected payments, Federal sources ............1801

–786.................–400Spending authority from offsetting collections applied to

repay debt .....................................................................1825

8571,8001,340Spending auth from offsetting collections, mand (total) .......18508571,9862,750Budget authority (total) .............................................................19008621,9862,750Total budgetary resources available ..............................................1930



513587577Unpaid obligations, brought forward, Oct 1 ..........................30008571,9811,996New obligations, unexpired accounts ....................................3010







8571,9862,750Budget authority, gross .........................................................4090Financing disbursements:


Offsetting collections (collected) from:–30–173–130Federal sources: payments from program account ............4120–80–80–76Interest on uninvested funds ............................................4122

–920–913–905Non-Federal sources: Repayments of principal .................4123–540–543–537Interest received on loans .................................................4123–11–11–10Payments on judgments ....................................................4123–56–54–52Proceeds on sale of acquired property ...............................4123–22–21–20Recaptured income ...........................................................4123–11–11–10Fees ..................................................................................4123–4.................–1Miscellaneous collections .................................................4123

–1,674–1,806–1,741Offsets against gross budget authority and outlays (total) ....4130Additional offsets against financing authority only (total):


–7861861,010Budget authority, net (mandatory) ............................................4160–555249171Outlays, net (mandatory) ...........................................................4170–7861861,010Budget authority, net (total) ..........................................................4180–555249171Outlays, net (total) ........................................................................4190



Position with respect to appropriations act limitation on obligations:29811,025Direct loan obligations from current-year authority ...................1111


.................–13–18Unobligated direct loan limitation (-) ........................................1142

29791,044Total direct loan obligations ..................................................1150

Cumulative balance of direct loans outstanding:17,58417,41517,511Outstanding, start of year .........................................................1210

2621,1451,138Disbursements: Direct loan disbursements ...............................1231Repayments:

–920–913–906Repayments and prepayments ..............................................1251

–58–58–58Proceeds from loan asset sales to the public or

discounted ........................................................................1252

Adjustments:282828Capitalized interest ...............................................................1261–2–2–2Discount on loan asset sales to the public or discounted .......1262

Write-offs for default:–26–26–51Direct loans ...........................................................................1263–5–5–245Other 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.




1,0521,018Fund balances with Treasury .....................................................1101Investments in US securities:


17,41517,511Direct loans receivable, gross ....................................................14016534Interest receivable .....................................................................14025875Foreclosed property ....................................................................1404

–1,905–2,200Allowance for subsidy cost (-) ....................................................1405



Federal liabilities:16,58316,378Debt ...........................................................................................2103

15194Other ..........................................................................................21051916Non-Federal liabilities: Accounts payable ......................................2201



✦

RURAL HOUSING INSURANCE FUND GUARANTEED LOAN FINANCING ACCOUNT



Obligations by program activity:999Interest assistance paid to lenders ...........................................0003

Credit program obligations:654614690Default claim payments on principal ....................................071112316830Negative subsidy obligations ................................................0740

.................6,37918Downward reestimates paid to receipt accounts ...................0742


7777,700744Direct program activities, subtotal ................................................0791



5216,9293,701Unobligated balance brought forward, Oct 1 .........................1000..................................2Recoveries of prior year unpaid obligations ...........................1021.................–2–2Unobligated balances applied to repay debt .........................1023..................................–1Unobligated balance of borrowing authority withdrawn ........1024

5216,9273,700Unobligated balance (total) ......................................................1050Financing authority:

Spending authority from offsetting collections, mandatory:7331,3033,982Collected ...........................................................................18007331,3033,982Budget authority (total) .............................................................1900

1,2548,2307,682Total budgetary resources available ..............................................1930Memorandum (non-add) entries:

4685216,929Unexpired unobligated balance, end of year ..........................1941



–786–7,263–756Outlays (gross) ......................................................................3020..................................–2Recoveries of prior year unpaid obligations, unexpired .........3040




RURAL HOUSING INSURANCE FUND GUARANTEED LOAN FINANCING

ACCOUNT—Continued






7867,263756Outlays, gross (total) .............................................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:.................–408–3,073Federal sources .................................................................4120

–149–141–170Interest on uninvested funds ............................................4122–582–752–732Non-Federal sources: guarantee fees ................................4123

–1–1–1Repayments of Principal ...................................................4123–1–1–1Interest Received on Loans ...............................................4123

..................................–5Offsetts-Non-Federal sources ...........................................4123

–733–1,303–3,982Offsets against gross budget authority and outlays (total) ....4130535,960–3,226Outlays, net (mandatory) ...........................................................4170

...................................................Budget authority, net (total) ..........................................................4180535,960–3,226Outlays, net (total) ........................................................................4190




16,54424,18824,187Guaranteed loan commitments from current-year authority .......2111.................–2,800–7,643Uncommitted loan guarantee limitation ....................................2142



–11,836–11,109–11,499Repayments and prepayments ..................................................2251Adjustments:

–654–614–881Terminations for default that result in claim payments ........2263..................................78Other adjustments, net .........................................................2264


Memorandum:


year .......................................................................................2299


in loans receivable:191511,163Outstanding, start of year .....................................................2310298293.................Disbursements for guaranteed loan claims ...........................2331–13–13–1Repayments of loans receivable ............................................2351

–142–140–749Write-offs of loans receivable ................................................2361..................................–362Other 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.





4761,064Receivables, net ....................................................................1106Net value of assets related to post-1991 acquired defaulted

guaranteed loans receivable:511,163Defaulted guaranteed loans receivable, gross ...........................1501

22Interest receivable .....................................................................1502–17–1,130Allowance for subsidy cost (-) ....................................................1505–1–1Currently not collectible (-) ........................................................1505


1599


Federal liabilities:22Debt ...........................................................................................2103

......................................................Resources payable to Treasury ...................................................21046,261...........................Other ..........................................................................................21051,1744,797Non-Federal liabilities: Liabilities for loan guarantees ..................2204



✦

RURAL HOUSING INSURANCE FUND LIQUIDATING ACCOUNT



Obligations by program activity:283032Other costs incident to loans .....................................................0107





.................–103–90Capital transfer of unobligated balances to general fund ......1022Budget authority:













242619Outlays from new mandatory authority .............................410063.................Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:..................................–25Federal sources .................................................................4120






Cumulative balance of direct loans outstanding:6,6166,9937,414Outstanding, start of year .........................................................1210–296–301–306Repayments: Repayments and prepayments .............................1251

Write-offs for default:–12–13–35Direct loans ...........................................................................1263


–57–63–80Other adjustments, net (+ or -) .............................................1264





.................–1.................Repayments and prepayments ..................................................2251


Memorandum:


year .......................................................................................2299




6,9937,414Direct loans, gross .........................................................................1601825807Interest receivable .........................................................................1602


7,0917,525Direct loans and interest receivable, net ...................................16041417Foreclosed property ........................................................................1606

7,1057,542Value of assets related to direct loans .......................................169933Other Federal assets: Other assets ................................................1901


7,2837,694Federal liabilities: Resources payable to Treasury ..........................2104–2–4Non-Federal liabilities: Other .........................................................2207



✦

RURAL BUSINESS—COOPERATIVE SERVICEFederal Funds

ENERGY ASSISTANCE PAYMENTS



Obligations by program activity:161514Bioenergy Program for Advanced Biofuels Payments .................0010

.................2.................Repowering Assistance Payments .............................................0011



















The purpose of the Bioenergy Program for Advanced Biofuels is toprovide payments to eligible agricultural producers to support and ensurean 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. For 2018, the Agri-cultural Act of 2014 provides $15 million in mandatory funds for this ac-count.

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. TheBudget does not request discretionary funding in 2018 for either program.

✦

RURAL COOPERATIVE DEVELOPMENT GRANTS




Obligations by program activity:.................99Rural Cooperative Development Grants .....................................0001.................1214Value Added Agricultural Producer Grants (discretionary) .........0011.................23Appropriate Technology Transfer for Rural Areas .......................0012.................1131Value Addeded Agricultural Product Marketing (mandatory) ......0013






Appropriations, discretionary:.................2222Appropriation ....................................................................1100.................2222Budget authority (total) .............................................................1900











129DEPARTMENT OF AGRICULTURERural Business—Cooperative Service

Federal Funds

RURAL COOPERATIVE DEVELOPMENT GRANTS—Continued





Outlays, gross:21207Outlays 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 2018 Budget eliminates these programs because they havenot been able to show evidence of improved outcomes; such as economicgrowth and decreasing out-migration.

✦

RURAL ECONOMIC DEVELOPMENT GRANTS



Obligations by program activity:.................1111Rural economic development grants .........................................0001.................44Subsidy .....................................................................................0002



189185206Unobligated balance brought forward, Oct 1 .........................100011.................Recoveries of prior year unpaid obligations ...........................1021


Appropriations, discretionary:

–176–162.................Unobligated balance of appropriations permanently

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

Appropriations, mandatory:




..................................14Change in uncollected payments, Federal sources ............1801111Offsetting collections (previously unavailable) .................1802

.................–1–1New and/or unobligated balance of spending authority from


172180173Spending auth from offsetting collections, mand (total) .......1850–418–6Budget authority (total) .............................................................1900186204200Total budgetary resources available ..............................................1930




–9–15–14Outlays (gross) ......................................................................3020–1–1.................Recoveries of prior year unpaid obligations, unexpired .........3040


Uncollected payments:–14–14.................Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060

..................................–14Change in uncollected pymts, Fed sources, unexpired ..........3070


–3–211Obligated balance, start of year ............................................3100–13–3–2Obligated balance, end of year ..............................................3200


–176–162.................Budget authority, gross .........................................................4000Mandatory:

172180–6Budget authority, gross .........................................................4090Outlays, gross:

.................7.................Outlays from new mandatory authority .............................41009814Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:–156–165–144Cushion of Credit Payments ..............................................4120–15–15–15Guaranteed Underwiter Fees .............................................4123



1.................–179Budget authority, net (mandatory) ............................................4160–162–165–145Outlays, net (mandatory) ...........................................................4170–175–162–179Budget authority, net (total) ..........................................................4180–162–165–145Outlays, net (total) ........................................................................4190

Memorandum (non-add) entries:111Unexpired unavailable balance, SOY: Offsetting collections .......5090

.................11Unexpired unavailable balance, EOY: Offsetting collections .......5092



Enacted/requested:–175–162–179Budget Authority .......................................................................–162–165–145Outlays ......................................................................................


Total:–181–162–179Budget Authority .......................................................................–168–165–145Outlays ......................................................................................

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 2018Budget eliminates this program because it has not been able to show evid-ence of improved outcomes; such as economic growth and decreasing out-migration. The 2018 Budget also includes language to permanently cancel$176 million in unobligated balances from this account.

RURAL ECONOMIC DEVELOPMENT GRANTS





Spending authority from offsetting collections, mandatory:–6..................................Collected ...........................................................................1800–6..................................Budget authority (total) .............................................................1900–6..................................Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:–6..................................Unexpired unobligated balance, end of year ..........................1941


6..................................Outlays (gross) ......................................................................3020

THE BUDGET FOR FISCAL YEAR 2018130 Rural Business—Cooperative Service—ContinuedFederal Funds—Continued





–6..................................Outlays from mandatory balances ....................................4101–6..................................Budget authority, net (total) ..........................................................4180–6..................................Outlays, net (total) ........................................................................4190

✦

RURAL MICROENTERPRISE INVESTMENT PROGRAM ACCOUNT




Credit program obligations:111Direct loan subsidy ................................................................0701






Appropriations, mandatory:333Appropriations transferred from other acct [012–4336] ....1221333Budget authority (total) .............................................................1900346Total budgetary resources available ..............................................1930









533Outlays from mandatory balances ....................................4101333Budget authority, net (total) ..........................................................4180533Outlays, net (total) ........................................................................4190



Direct loan levels supportable by subsidy budget authority:888Rural Microenterprise Direct Loans ...........................................115001

Direct loan subsidy (in percent):9.9812.4011.33Rural Microenterprise Direct Loans ...........................................132001

9.9812.4011.33Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

111Rural Microenterprise Direct Loans ...........................................133001Direct loan subsidy outlays:

11.................Rural Microenterprise Direct Loans ...........................................134001Direct loan reestimates:

.................–1.................Rural 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 Farm

and Rural Development Act, as amended by the Agricultural Act of 2014,provides $3 million in mandatory funds for the program for 2018. The2018 Budget does not provide discretionary funding for this program.

✦

RURAL MICROENTERPRISE INVESTMENT DIRECT LOAN FINANCING ACCOUNT




888Direct loan obligations ..........................................................0710111Payment of interest to Treasury .............................................0713

.................1.................Downward reestimates paid to receipt accounts ...................0742








Spending authority from offsetting collections, mandatory:333Collected ...........................................................................180011.................Change in uncollected payments, Federal sources ............1801


repay debt .....................................................................1825







–2–1–1Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060–1–1.................Change in uncollected pymts, Fed sources, unexpired ..........3070






Offsetting collections (collected) from:–1–1.................Federal sources .................................................................4120–2–2–3Repayments of Loan Principal ...........................................4123


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






131DEPARTMENT OF AGRICULTURERural Business—Cooperative Service—Continued


RURAL MICROENTERPRISE INVESTMENT DIRECT LOAN FINANCING ACCOUNT—Continued

Status of Direct Loans—Continued





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:3230Direct loans receivable, gross ....................................................1401–4–4Allowance for subsidy cost (-) ....................................................1405



3129Federal liabilities: Debt ..................................................................2103


✦

RURAL BUSINESS PROGRAM ACCOUNT




Obligations by program activity:.................3428Rural Business Development Grants .........................................0013.................33Delta Regional Authority Grants ................................................0015


.................4249Loan guarantee subsidy ........................................................0702




.................73Interest on reestimates of loan guarantee subsidy ................0708

.................9071Direct program activities, subtotal ................................................0791








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

–256363Appropriation, discretionary (total) .......................................1160Appropriations, mandatory:

.................4822Appropriation ....................................................................1200–2511185Budget authority (total) .............................................................1900













.................4822Outlays from new mandatory authority .............................4100–2511185Budget authority, net (total) ..........................................................418031126100Outlays, net (total) ........................................................................4190



Direct loan reestimates:.................79Business and Industry Loans ....................................................135004

Guaranteed loan levels supportable by subsidy budget authority:.................1,0991,285Business and Industry Loan Guarantees ...................................215007

..................................8Business and Industry Emergency Supplemental Loan

Guarantees ............................................................................215008

.................1,0991,293Total loan guarantee levels .......................................................215999Guaranteed loan subsidy (in percent):

.................3.843.88Business and Industry Loan Guarantees ...................................232007

..................................3.88Business and Industry Emergency Supplemental Loan

Guarantees ............................................................................232008

.................3.843.88Weighted average subsidy rate ..................................................232999Guaranteed loan subsidy budget authority:

.................4250Business and Industry Loan Guarantees ...................................233007

.................4250Total subsidy budget authority ..................................................233999Guaranteed loan subsidy outlays:

254846Business and Industry Loan Guarantees ...................................234007


..................................–1North American Development Bank Loan Guarantees ................235005

.................–22–6Guaranteed Business and Industry Loans - ARRA .....................235006

.................7–101Business and Industry Loan Guarantees ...................................235007

.................–15–108Total 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 2018 Budget eliminates these programs because theyhave not been able to show evidence of improved outcomes; such as eco-nomic growth and decreasing out-migration. The Budget also proposes tocancel $25 million in unobligated balances from this account.

✦

RURAL BUSINESS AND INDUSTRY DIRECT LOANS FINANCING ACCOUNT




222Payment of interest to Treasury .............................................0713





.................–9–18Unobligated balances applied to repay debt .........................1023Financing authority:


.................–7.................Spending authority from offsetting collections applied to

repay debt .....................................................................1825








Offsetting collections (collected) from:.................–7–9Federal sources .................................................................4120..................................–1Interest on uninvested funds ............................................4122

–2–2–1Repayments of principal ...................................................4123


.................–7.................Budget authority, net (mandatory) ............................................4160

.................–7–9Outlays, net (mandatory) ...........................................................4170

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

.................–7–9Outlays, net (total) ........................................................................4190




–1–2–1Repayments: Repayments and prepayments .............................1251Write-offs for default:

..................................–2Direct loans ...........................................................................1263

..................................3Other adjustments, net (+ or -) .............................................1264


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:1010Direct loans receivable, gross ....................................................1401414Allowance for subsidy cost (-) ....................................................1405


1...........................Net value of assets related to post-1991 acquired defaultedguaranteed loans receivable: Interest receivable .......................

1502




✦

RURAL BUSINESS AND INDUSTRY GUARANTEED LOANS FINANCING ACCOUNT




147139114Default claim payments on principal ....................................0711112Payment of interest to Treasury .............................................0713





309366439Unobligated balance brought forward, Oct 1 .........................1000.................–48–19Unobligated balances applied to repay debt .........................1023



Spending authority from offsetting collections, mandatory:117192153Collected ...........................................................................1800–25–4–9Change in uncollected payments, Federal sources ............1801

92188144Spending auth from offsetting collections, mand (total) .......185092188183Budget authority (total) .............................................................1900





Uncollected payments:–36–40–49Uncollected pymts, Fed sources, brought forward, Oct 1 ........30602549Change in uncollected pymts, Fed sources, unexpired ..........3070






Offsetting collections (collected) from:–25–89–59Federal sources .................................................................4120–9–8–8Interest on uninvested funds ............................................4122

–63–60–51Repayments of principal ...................................................4123..................................–4Interest received on loans .................................................4123

–20–35–30Guarantee Fees .................................................................4123..................................–1Other collections ...............................................................4123



..................................39Budget authority, net (mandatory) ............................................416031584Outlays, net (mandatory) ...........................................................4170

..................................39Budget authority, net (total) ..........................................................418031584Outlays, net (total) ........................................................................4190




.................888964Guaranteed loan commitments from current-year authority .......2111


..................................–485Uncommitted limitation carried forward ...................................2143

.................1,0991,293Total guaranteed loan commitments .....................................2150

Cumulative balance of guaranteed loans outstanding:6,0155,7605,896Outstanding, start of year .........................................................22106421,1401,017Disbursements of new guaranteed loans ..................................2231

–779–746–912Repayments and prepayments ..................................................2251Adjustments:

–85–81–76Terminations for default that result in loans receivable ........2261



RURAL BUSINESS AND INDUSTRY GUARANTEED LOANS FINANCING

ACCOUNT—Continued

Status of Guaranteed Loans—Continued


–62–58–38Terminations for default that result in claim payments ........2263..................................–127Other adjustments, net .........................................................2264


Memorandum:


year .......................................................................................2299


in loans receivable:295247295Outstanding, start of year .....................................................2310120115185Disbursements for guaranteed loan claims ...........................2331–30–25–51Repayments of loans receivable ............................................2351–50–42–123Write-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.





4311Receivables, net ....................................................................1106Net value of assets related to post-1991 acquired defaulted

guaranteed loans receivable:247295Defaulted guaranteed loans receivable, gross ...........................1501

42Interest receivable .....................................................................1502–52–53Allowance for subsidy cost (-) ....................................................1505


1599


Federal liabilities:4828Resources payable to Treasury ...................................................210432114Other ..........................................................................................2105




✦

INTERMEDIARY RELENDING PROGRAM FUND ACCOUNT





.................65Direct loan subsidy ................................................................0701

..................................1Reestimates of direct loan subsidy .......................................0705

..................................1Interest on reestimates of direct loan subsidy .......................0706

.................44Administrative expenses .......................................................0709

.................1011Total new obligations, unexpired accounts ....................................0900



Appropriations, mandatory:..................................1Appropriation ....................................................................1200.................1011Budget authority (total) .............................................................1900.................1011Total budgetary resources available ..............................................1930











..................................1Outlays from new mandatory authority .............................4100




Direct loan levels supportable by subsidy budget authority:.................1819Intermediary Relending Program ...............................................115001

Direct loan subsidy (in percent):.................28.9927.62Intermediary Relending Program ...............................................132001


.................55Intermediary Relending Program ...............................................133001Direct loan subsidy outlays:

666Intermediary Relending Program ...............................................134001Direct loan reestimates:

.................–10–1Intermediary Relending Program ...............................................135001

Administrative expense data:.................54Budget 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 2018 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:.................54Other goods and services from Federal sources ........................25.3.................57Grants, subsidies, and contributions ........................................41.0


.................1011Total new obligations, unexpired accounts ............................99.9

✦

RURAL DEVELOPMENT LOAN FUND DIRECT LOAN FINANCING ACCOUNT













Borrowing authority, mandatory:.................615Borrowing authority ...........................................................1400


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


repay debt .....................................................................1825







–16–17–18Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060.................11Change in uncollected pymts, Fed sources, unexpired ..........3070






Offsetting collections (collected) from:–6–6–6Payments from program account ......................................4120–1–3–2Interest on uninvested funds ............................................4122

–27–27–27Non-Federal sources - repayment of principal ..................4123–4–4–5Non-Federal sources - repayments of interest ...................4123


.................11Change in uncollected pymts, Fed sources, unexpired .......4140

–2067Budget authority, net (mandatory) ............................................4160–27–6Outlays, net (mandatory) ...........................................................4170

–2067Budget authority, net (total) ..........................................................4180–27–6Outlays, net (total) ........................................................................4190



Position with respect to appropriations act limitation on obligations:.................1819Direct loan obligations from current-year authority ...................1111



–27–28–27Repayments: Repayments and prepayments .............................1251..................................–1Write-offs for default: Direct loans ............................................1263





Net value of assets related to post-1991 direct loans receivable:383394Direct loans receivable, gross ....................................................1401






✦

RURAL DEVELOPMENT LOAN FUND LIQUIDATING ACCOUNT




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

..................................–1Capital transfer of unobligated balances to general fund ......1022Budget authority:






–2–2–2Non-Federal sources .........................................................4123–2–2–2Budget authority, net (total) ..........................................................4180–2–2–2Outlays, net (total) ........................................................................4190




..................................–1Write-offs for default: Other adjustments, net (+ or -) ..............1264




ASSETS:1215Direct loans, gross .........................................................................1601




✦

RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT




RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT—Continued





.................1.................Reestimates of direct loan subsidy .......................................0705



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

.................11Recoveries of prior year unpaid obligations ...........................1021


Appropriations, mandatory:.................1.................Appropriation ....................................................................1200

Spending authority from offsetting collections, mandatory:.................44Collected ...........................................................................1800.................54Budget authority (total) .............................................................1900.................66Total budgetary resources available ..............................................1930



–3–7–5Outlays (gross) ......................................................................3020.................–1–1Recoveries of prior year unpaid obligations, unexpired .........3040





.................2.................Outlays from new mandatory authority .............................4100355Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:.................–4–4Federal sources .................................................................4120.................1.................Budget authority, net (total) ..........................................................4180




Direct loan levels supportable by subsidy budget authority:.................3743Rural Economic Development Loans ..........................................115001

Direct loan subsidy (in percent):.................14.2313.39Rural Economic Development Loans ..........................................132001


.................56Rural Economic Development Loans ..........................................133001Direct loan subsidy outlays:

365Rural Economic Development Loans ..........................................134001Direct loan reestimates:

..................................–4Rural 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. The2018 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 loans

obligated in 1992 and beyond. The subsidy amounts are estimated on apresent value basis.

✦

RURAL ECONOMIC DEVELOPMENT DIRECT LOAN FINANCING ACCOUNT















repay debt .....................................................................1825













Offsetting collections (collected) from:–4–8–5Federal Funds: Program Account .......................................4120

..................................–2Interest on uninvested funds ............................................4122–38–36–33Non-Federal sources: Repayment of Principal ...................4123


–31253Budget authority, net (mandatory) ............................................4160–4119Outlays, net (mandatory) ...........................................................4170

–31253Budget authority, net (total) ..........................................................4180–4119Outlays, net (total) ........................................................................4190



Position with respect to appropriations act limitation on obligations:.................3133Direct loan obligations from current-year authority ...................1111.................813Limitation available from carry-forward ....................................1121.................–2–3Unobligated limitation carried forward .....................................1143









Net value of assets related to post-1991 direct loans receivable:189183Direct loans receivable, gross ....................................................1401–13–15Allowance for subsidy cost (-) ....................................................1405




247210Total upward reestimate subsidy BA [12–3108] ............................4999

✦

RURAL BUSINESS INVESTMENT PROGRAM ACCOUNT




.................1.................Reestimates of loan guarantee subsidy ................................0707

.................1.................Direct program activities, subtotal ................................................0791

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


22.................Unobligated balance brought forward, Oct 1 .........................1000..................................2Recoveries of prior year unpaid obligations ...........................1021


Appropriations, mandatory:.................1.................Appropriation ....................................................................1200.................1.................Budget authority (total) .............................................................1900




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

.................1.................New obligations, unexpired accounts ....................................3010

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

..................................–2Recoveries of prior year unpaid obligations, unexpired .........3040Memorandum (non-add) entries:

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


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

.................1.................Outlays from new mandatory authority .............................4100

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

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



Guaranteed loan subsidy (in percent):0.0012.510.00Rural Business Investment Program .........................................232001

Guaranteed loan reestimates:.................1.................Rural Business Investment Program .........................................235001

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 2018 Budget eliminates this program

because 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




443Unobligated balance brought forward, Oct 1 .........................1000Financing authority:

Spending authority from offsetting collections, mandatory:..................................1Collected ...........................................................................1800




..................................1Budget authority, gross .........................................................4090Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:..................................–1Federal sources .................................................................4120...................................................Budget authority, net (total) ..........................................................4180..................................–1Outlays, net (total) ........................................................................4190




...................................................Guaranteed loan commitments from current-year authority .......2111

...................................................Total guaranteed loan commitments .....................................2150


...................................................Disbursements of new guaranteed loans ..................................2231–1..................................Repayments and prepayments ..................................................2251


Memorandum:


year .......................................................................................2299







✦

RURAL ENERGY FOR AMERICA PROGRAM





Credit program obligations:161917Loan guarantee subsidy ........................................................0702

.................2.................Reestimates of loan guarantee subsidy ................................0707




RURAL ENERGY FOR AMERICA PROGRAM—Continued








Appropriations, mandatory:.................2.................Appropriation ....................................................................1200














.................12Outlays from discretionary balances .................................4011Mandatory:








Total:.................5048Budget Authority .......................................................................

585969Outlays ......................................................................................



Guaranteed loan levels supportable by subsidy budget authority:415409258Renewable Energy Loan Guarantees ..........................................215001

Guaranteed loan subsidy (in percent):3.874.646.60Renewable Energy Loan Guarantees ..........................................232001


161917Renewable Energy Loan Guarantees ..........................................233001Guaranteed loan subsidy outlays:

171015Renewable Energy Loan Guarantees ..........................................234001Guaranteed loan reestimates:

.................–24–5Renewable 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:–36..................................Grants .......................................................................................0011

Credit program obligations:–16..................................Loan guarantee subsidy ........................................................0702



–8..................................Recoveries of prior year unpaid obligations ...........................1021Budget authority:




–52..................................New obligations, unexpired accounts ....................................30108..................................Outlays (gross) ......................................................................30208..................................Recoveries of prior year unpaid obligations, unexpired .........3040








Guaranteed loan levels supportable by subsidy budget authority:–415..................................Renewable Energy Loan Guarantees ..........................................215001

Guaranteed loan subsidy (in percent):3.87..................................Renewable Energy Loan Guarantees ..........................................232001


–16..................................Renewable Energy Loan Guarantees ..........................................233001Guaranteed loan subsidy outlays:

–1..................................Renewable Energy Loan Guarantees ..........................................234001

✦

RURAL ENERGY FOR AMERICA GUARANTEED LOAN FINANCING ACCOUNT




113Default claim payments on principal ....................................0711.................254Downward reestimates paid to receipt accounts ...................0742.................1.................Interest on downward reestimates ........................................0743






.................91Change in uncollected payments, Federal sources ............1801





Uncollected payments:–30–21–20Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060

.................–9–1Change in uncollected pymts, Fed sources, unexpired ..........3070






Offsetting collections (collected) from:–17–12–15Federal sources .................................................................4120–2–1–1Interest on uninvested funds ............................................4122–3–2–1Guarantee fees ..................................................................4123


.................–9–1Change in uncollected pymts, Fed sources, unexpired .......4140–2112–10Outlays, net (mandatory) ...........................................................4170

...................................................Budget authority, net (total) ..........................................................4180–2112–10Outlays, net (total) ........................................................................4190




388312159Guaranteed loan commitments from current-year authority .......21112797152Limitation available from carry-forward ....................................2121

..................................–53Uncommitted limitation carried forward ...................................2143

415409258Total guaranteed loan commitments .....................................2150333335199Guaranteed amount of guaranteed loan commitments .................2199

Cumulative balance of guaranteed loans outstanding:344237122Outstanding, start of year .........................................................2210300151140Disbursements of new guaranteed loans ..................................2231–71–43–22Repayments and prepayments ..................................................2251

–1–1–3Adjustments: Terminations for default that result in loans

receivable ..............................................................................2261


Memorandum:


year .......................................................................................2299


in loans receivable:32.................Outstanding, start of year .....................................................2310112Disbursements 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.




2...........................

Net value of assets related to post-1991 acquired defaultedguaranteed loans receivable: Defaulted guaranteed loansreceivable, gross ........................................................................

1501


4...........................Federal liabilities: Debt ..................................................................21033422Non-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

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

–17..................................Spending auth from offsetting collections, mand (total) .......1850–17..................................Total budgetary resources available ..............................................1930


Change in obligated balance:Uncollected payments:

16..................................Change in uncollected pymts, Fed sources, unexpired ..........3070

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



–17..................................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):16..................................Change in uncollected pymts, Fed sources, unexpired .......41401..................................Outlays, net (mandatory) ...........................................................4170

...................................................Budget authority, net (total) ..........................................................41801..................................Outlays, net (total) ........................................................................4190




–388..................................Guaranteed loan commitments from current-year authority .......2111–27..................................Limitation available from carry-forward ....................................2121

–415..................................Total guaranteed loan commitments .....................................2150–415..................................Guaranteed amount of guaranteed loan commitments .................2199

Cumulative balance of guaranteed loans outstanding:...................................................Outstanding, start of year .........................................................2210

–13..................................Disbursements of new guaranteed loans ..................................22312..................................Repayments and prepayments ..................................................2251

...................................................Adjustments: Terminations for default that result in loans

receivable ..............................................................................2261

–11..................................Outstanding, end of year .......................................................2290

Memorandum:

–9..................................Guaranteed amount of guaranteed loans outstanding, end of

year .......................................................................................2299


in loans receivable:...................................................Outstanding, start of year .....................................................2310...................................................Disbursements for guaranteed loan claims ...........................2331



RURAL ENERGY FOR AMERICA GUARANTEED LOAN FINANCING ACCOUNT—Continued

Status of Guaranteed Loans—Continued


...................................................Outstanding, end of year ...................................................2390

✦

BIOREFINERY ASSISTANCE PROGRAM ACCOUNT




.................19.................Loan guarantee subsidy ........................................................0702

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




Appropriations, discretionary:


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

Appropriations, mandatory:20.................46Appropriations transferred from other acct [012–4336] ....1221



20.................43Appropriations, mandatory (total) .........................................1260–155.................43Budget authority (total) .............................................................1900

.................174174Total budgetary resources available ..............................................1930Memorandum (non-add) entries:

.................155174Unexpired unobligated balance, end of year ..........................1941


215202209Unpaid obligations, brought forward, Oct 1 ..........................3000.................19.................New obligations, unexpired accounts ....................................3010

–65–6.................Outlays (gross) ......................................................................3020..................................–7Recoveries of prior year unpaid obligations, unexpired .........3040




–175..................................Budget authority, gross .........................................................4000Mandatory:

20.................43Budget authority, gross .........................................................4090Outlays, gross:

656.................Outlays from mandatory balances ....................................4101–155.................43Budget authority, net (total) ..........................................................4180

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



Guaranteed loan levels supportable by subsidy budget authority:.................90.................Section 9003 Loan Guarantees ..................................................215001

Guaranteed loan subsidy (in percent):.................20.81.................Section 9003 Loan Guarantees ..................................................232001


.................19.................Section 9003 Loan Guarantees ..................................................233001Guaranteed loan subsidy outlays:

656.................Section 9003 Loan Guarantees ..................................................234001Guaranteed loan reestimates:

.................–4–10Section 9003 Loan Guarantees ..................................................235001

The Biorefinery Assistance Program provides loan guarantees to fundthe development, construction, and retrofitting of commercial-scale ad-vanced biorefineries. The 2018 Budget does not request discretionary

funding 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. The 2018 Budget includes language topermanently cancel $175 million from mandatory unobligated balances.

✦

BIOREFINERY ASSISTANCE GUARANTEED LOAN FINANCING ACCOUNT




113Default claim payments on principal ....................................0711.................49Downward reestimates paid to receipt accounts ...................0742..................................1Interest on downward reestimates ........................................0743






–6513–7Change in uncollected payments, Federal sources ............1801

621–6Spending auth from offsetting collections, mand (total) .......18506211Budget authority (total) .............................................................1900





Uncollected payments:–210–197–204Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060

65–137Change in uncollected pymts, Fed sources, unexpired ..........3070






Offsetting collections (collected) from:–65–6.................Federal sources .................................................................4120–2–1.................Interest on uninvested funds ............................................4122–4–1–1Guaranteed Fees ...............................................................4123


65–137Change in uncollected pymts, Fed sources, unexpired .......4140

..................................7Budget authority, net (mandatory) ............................................4160–70–312Outlays, net (mandatory) ...........................................................4170

..................................7Budget authority, net (total) ..........................................................4180–70–312Outlays, net (total) ........................................................................4190





.................90.................Limitation available from carry-forward ....................................2121

.................90.................Total guaranteed loan commitments .....................................2150


.................81.................Guaranteed amount of guaranteed loan commitments .................2199


28230.................Disbursements of new guaranteed loans ..................................2231–15–12–3Repayments and prepayments ..................................................2251

Adjustments:...................................................Terminations for default that result in loans receivable ........2261

–1–1–3Terminations for default that result in claim payments ........2263..................................–113Other adjustments, net .........................................................2264


Memorandum:


year .......................................................................................2299


in loans receivable:1..................................Outstanding, start of year .....................................................231011.................Disbursements for guaranteed loan claims ...........................2331

21.................Outstanding, end of year ...................................................2390

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.





Non-Federal liabilities:3...........................Debt ...........................................................................................2203

1621Liabilities for loan guarantees ...................................................2204



✦

ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION CORPORATION

REVOLVING FUND








✦

RURAL UTILITIES SERVICEFederal Funds

HIGH ENERGY COST GRANTS



Obligations by program activity:.................209High energy cost grants ............................................................0001




.................2019Discretionary unobligated balance brought fwd, Oct 1 ......1001Budget authority:

Appropriations, discretionary:.................1010Appropriations transferred from other acct [012–1980] ....1121





–5–31–17Outlays (gross) ......................................................................3020

.................516Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

51624Obligated balance, start of year ............................................3100.................516Obligated balance, end of year ..............................................3200






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 2018 for these grants.

✦

RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT




Obligations by program activity:.................492530Water and waste disposal systems grants ................................0010..................................1Water and waste disposal systems grants supplemental ..........0011.................44Solid waste management grants ...............................................0012.................114Emergency Community Water Assistance Grants ......................0013

.................1010Emergency Community Water Assistance Grants,

appropriated .........................................................................0015





.................5673Direct program activities, subtotal ................................................0791






Appropriations, discretionary:.................521522Appropriation ....................................................................1100.................–10–10Appropriations transferred to other accts [012–2042] .......1120..................................–13Appropriations permanently reduced ................................1130

141DEPARTMENT OF AGRICULTURERural Utilities Service

Federal Funds

RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT—Continued



–64–13.................Unobligated balance of appropriations permanently

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

–64498499Appropriation, discretionary (total) .......................................1160Appropriations, mandatory:

.................2542Appropriation ....................................................................1200–64523541Budget authority (total) .............................................................190047637687Total budgetary resources available ..............................................1930



2,0571,9851,989Unpaid obligations, brought forward, Oct 1 ..........................3000.................573622New obligations, unexpired accounts ....................................3010









.................2542Outlays from new mandatory authority .............................410030321Outlays from mandatory balances ....................................4101

305743Outlays, gross (total) .............................................................4110–64523541Budget authority, net (total) ..........................................................4180556452572Outlays, net (total) ........................................................................4190



Direct loan levels supportable by subsidy budget authority:.................7321,200Water and Waste Disposal Loans ...............................................115001..................................4Water and Waste Disposal Emergency Supplemental Loans .......115002

.................7321,204Total direct loan levels ..............................................................115999Direct loan subsidy (in percent):

.................4.342.61Water and Waste Disposal Loans ...............................................132001

..................................2.61Water and Waste Disposal Emergency Supplemental Loans .......132002

.................4.342.61Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

.................3231Water and Waste Disposal Loans ...............................................133001


292744Water and Waste Disposal Loans ...............................................134001


.................–78–133Water and Waste Disposal Loans ...............................................135001


Guaranteed loan levels supportable by subsidy budget authority:.................167Water and Waste Disposal Loan Guarantees .............................215001

Guaranteed loan subsidy (in percent):.................0.480.55Water and Waste Disposal Loan Guarantees .............................232001

0.000.480.55Weighted average subsidy rate ..................................................232999

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 develop

water 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.

✦

RURAL WATER AND WASTE DISPOSAL DIRECT LOANS FINANCING ACCOUNT




.................7321,204Direct loan obligations ..........................................................0710601572545Payment of interest to Treasury .............................................0713



6011,4081,924Total new obligations, unexpired accounts ....................................0900






Borrowing authority, mandatory:.................3081,348Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:1,3511,3491,356Collected ...........................................................................1800–266–22Change in uncollected payments, Federal sources ............1801


repay debt .....................................................................1825

6011,100813Spending auth from offsetting collections, mand (total) .......18506011,4082,161Budget authority (total) .............................................................19006011,4082,161Total budgetary resources available ..............................................1930



3,0213,3073,083Unpaid obligations, brought forward, Oct 1 ..........................30006011,4081,924New obligations, unexpired accounts ....................................3010



–94–88–110Uncollected pymts, Fed sources, brought forward, Oct 1 ........306026–622Change in uncollected pymts, Fed sources, unexpired ..........3070


2,9273,2192,973Obligated balance, start of year ............................................3100

THE BUDGET FOR FISCAL YEAR 2018142 Rural Utilities Service—ContinuedFederal Funds—Continued

1,9162,9273,219Obligated balance, end of year ..............................................3200





–799–784–794Repayment of principal .....................................................4123–458–449–428Interest Received on Loans ...............................................4123

..................................23Other .................................................................................4123


26–622Change in uncollected pymts, Fed sources, unexpired .......4140

–72453827Budget authority, net (mandatory) ............................................4160287345221Outlays, net (mandatory) ...........................................................4170

–72453827Budget authority, net (total) ..........................................................4180287345221Outlays, net (total) ........................................................................4190



Position with respect to appropriations act limitation on obligations:.................7201,200Direct loan obligations from current-year authority ...................1111.................124Limitation available from carry-forward ....................................1121

.................7321,204Total direct loan obligations ..................................................1150

Cumulative balance of direct loans outstanding:12,38812,15412,082Outstanding, start of year .........................................................12101,0371,018854Disbursements: Direct loan disbursements ...............................1231–799–784–794Repayments: Repayments and prepayments .............................1251

Write-offs for default:..................................–2Direct loans ...........................................................................1263..................................14Other 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.




1,200988Fund balances with Treasury .....................................................1101Investments in US securities:



......................................................Foreclosed property ....................................................................1404–225–308Allowance for subsidy cost (-) ....................................................1405




103175Other ..........................................................................................2105



✦

RURAL WATER AND WASTE WATER DISPOSAL GUARANTEED LOANS FINANCING

ACCOUNT













.................167Total guaranteed loan commitments .....................................2150

.................156Guaranteed amount of guaranteed loan commitments .................2199


6313Disbursements of new guaranteed loans ..................................2231–9–9–6Repayments and prepayments ..................................................2251


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, $345,000,000; and for loans made pursuant tosection 306 of that Act, rural telecommunications loans, $345,000,000.

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".


143DEPARTMENT OF AGRICULTURERural Utilities Service—Continued


RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM

ACCOUNT—Continued




.................9.................Direct loan subsidy ................................................................0701


.................39582Interest on reestimates of direct loan subsidy .......................0706383535Administrative expenses .......................................................0709



88.................Unobligated balance brought forward, Oct 1 .........................1000.................8.................Discretionary unobligated balance brought fwd, Oct 1 ......1001


394343Appropriation ....................................................................1100.................1.................Appropriations transferred from other acct [012–1232] ....1121






–42–969–532Outlays (gross) ......................................................................3020





383535Outlays from new discretionary authority ..........................401042.................Outlays from discretionary balances .................................4011






Direct loan levels supportable by subsidy budget authority:3,1664,0003,166FFB Electric Loans .....................................................................11500415513698Treasury Telecommunications Loans .........................................1150069616096FFB Telecommunications Loans .................................................115007

.................750750FFB Guaranteed Underwriting ...................................................115008

.................55.................Rural Energy Savings Program ..................................................115012


–5.17–4.92–4.97FFB Electric Loans .....................................................................1320040.250.890.03Treasury Telecommunications Loans .........................................132006

–2.49–2.53–2.74FFB Telecommunications Loans .................................................132007.................–3.780.00FFB Guaranteed Underwriting ...................................................132008

13.3314.44.................Rural Energy Savings Program ..................................................132012


.................–1.................Electric Hardship Loans ............................................................133001–164–197–157FFB Electric Loans .....................................................................133004

.................1.................Treasury Telecommunications Loans .........................................133006–2–3–3FFB Telecommunications Loans .................................................133007

.................–28.................FFB Guaranteed Underwriting ...................................................133008

.................8.................Rural Energy Savings Program ..................................................133012

–166–220–160Total subsidy budget authority ..................................................133999

Direct loan subsidy outlays:–1–1.................Electric Hardship Loans ............................................................134001

–190–156–130FFB Electric Loans .....................................................................134004–1–2–1Telecommunication Hardship Loans ..........................................134005–1–1–2Treasury Telecommunications Loans .........................................134006–3–3–5FFB Telecommunications Loans .................................................134007

–27–25–20FFB Guaranteed Underwriting ...................................................13400821.................Rural Energy Savings Program ..................................................134012


.................1911Electric Hardship Loans ............................................................135001

.................–91–18Municipal Electric Loans ...........................................................135002

.................2–11Treasury Electric Loans ..............................................................135003

.................–16–237FFB Electric Loans .....................................................................135004

.................–152Telecommunication Hardship Loans ..........................................135005

.................–2213Treasury Telecommunications Loans .........................................135006

.................–37FFB Telecommunications Loans .................................................135007

.................29179FFB Guaranteed Underwriting ...................................................135008

.................442Electric Loan Modifications .......................................................135011

.................209–152Total direct loan reestimates .....................................................135999


The Rural Utilities Service (RUS) conducts the rural electrification andthe rural telecommunications loan programs. The rural electrification loanprogram 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, $345 million for the tele-communications Treasury loan program, and $345 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.






✦

RURAL ELECTRIFICATION AND TELECOMMUNICATIONS DIRECT LOAN FINANCING

ACCOUNT



Obligations by program activity:1,5461,5161,451Interest on FFB Loans ................................................................0003

Credit program obligations:3,4175,1014,110Direct loan obligations ..........................................................0710544561506Payment of interest to Treasury .............................................0713166229160Negative subsidy obligations ................................................0740



4,1276,6145,426Direct program activities, subtotal ................................................0791



.................5,2084,991Unobligated balance brought forward, Oct 1 .........................1000



.................–5,208–2,856Unobligated balances applied to repay debt .........................1023

..................................–543Unobligated balance of borrowing authority withdrawn ........1024

..................................2,135Unobligated balance (total) ......................................................1050Financing authority:

Borrowing authority, mandatory:4432,3604,674Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:7,0927,5766,619Collected ...........................................................................1800

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


repay debt .....................................................................1825

5,2305,7705,276Spending auth from offsetting collections, mand (total) .......18505,6738,1309,950Budget authority (total) .............................................................19005,6738,13012,085Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................5,208Unexpired unobligated balance, end of year ..........................1941





–9–2–2Uncollected pymts, Fed sources, brought forward, Oct 1 ........30602–7.................Change in uncollected pymts, Fed sources, unexpired ..........3070






Offsetting collections (collected) from:–2–933–497Payment from program account ........................................4120

–325–322–318Interest on uninvested funds ............................................4122–4,120–3,746–3,278Repayment of principal .....................................................4123–852–860–820Interest received on loans .................................................4123–965–877–865Repayment of principal Cushion of Credit .........................4123–828–838–841Repayment of interest Cushion of Credit ...........................4123


2–7.................Change in uncollected pymts, Fed sources, unexpired .......4140

–1,4175473,331Budget authority, net (mandatory) ............................................4160294230–81Outlays, net (mandatory) ...........................................................4170

–1,4175473,331Budget authority, net (total) ..........................................................4180294230–81Outlays, net (total) ........................................................................4190




.................–1,561–2,832Unobligated direct loan limitation (-) ........................................1142



Repayments:–4,120–3,746–3,278Repayments and prepayments - Cash ...................................1251–852–860–865Repayments and prepayments - CoC ....................................1251







44,85545,199Direct loans receivable, gross ....................................................1401





41,63039,446FFB ............................................................................................2103Non-Federal liabilities:

2525Interest payable .........................................................................2202664617Other ..........................................................................................2207






3,0463,073Direct loans receivable, gross ....................................................1401...........................1Interest receivable .....................................................................1402

11–16Allowance for subsidy cost (-) ....................................................1405



Federal liabilities:......................................................Interest payable .........................................................................2102

2,5432,509Debt ...........................................................................................21031,004946FFB ............................................................................................2103

4117Non-Federal liabilities: Other .........................................................2207



✦

RURAL ELECTRIFICATION AND TELECOMMUNICATIONS GUARANTEED LOANS FINANCING

ACCOUNT



Cumulative balance of guaranteed loans outstanding:167172178Outstanding, start of year .........................................................2210–5–5–6Repayments and prepayments ..................................................2251


Memorandum:


year .......................................................................................2299

✦

RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LIQUIDATING ACCOUNT



Obligations by program activity:233651Interest Expense, FFB direct ......................................................0002

156165158Other: cushion of credit .............................................................0005

179201209Direct program activities, subtotal ................................................0091Credit program obligations:

1,7341,7321,565CoC for Financing ..................................................................0739



5,9006,0795,244Unobligated balance brought forward, Oct 1 .........................1000.................–179–9Capital transfer of unobligated balances to general fund ......1022

5,9005,9005,235Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, mandatory:369373289Appropriation for CoC Borrower Interest ............................1200



RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LIQUIDATING

ACCOUNT—Continued



..................................347Appropriation for CBOs .....................................................1200156165168Appropriation for RED Grants ............................................1200

525538804Appropriations, mandatory (total) .........................................1260Spending authority from offsetting collections, mandatory:

2,0572,1002,556Collected ...........................................................................1800




repay debt .....................................................................1825

1,3871,3951,814Spending auth from offsetting collections, mand (total) .......18501,9121,9332,618Budget authority (total) .............................................................19007,8127,8337,853Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:5,8995,9006,079Unexpired unobligated balance, end of year ..........................1941


.................14.................Unpaid obligations, brought forward, Oct 1 ..........................30001,9131,9331,774New obligations, unexpired accounts ....................................3010

–1,912–1,947–1,760Outlays (gross) ......................................................................3020

1.................14Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

.................14.................Obligated balance, start of year ............................................31001.................14Obligated balance, end of year ..............................................3200



1,9121,9331,760Outlays from new mandatory authority .............................4100.................14.................Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:–105–124–204Loans Repaid - Cash .........................................................4123–42–47–56Interest Repaid - Cash ......................................................4123

–1,809–1,814–2,129Cushion of Credit Deposits ................................................4123–89–102–145Loans Repaid - CoC ..........................................................4123–12–13–22Interest Repaid - CoC ........................................................4123

–2,057–2,100–2,556Offsets against gross budget authority and outlays (total) ....4130

–145–16762Budget authority, net (mandatory) ............................................4160–145–153–796Outlays, net (mandatory) ...........................................................4170–145–16762Budget authority, net (total) ..........................................................4180–145–153–796Outlays, net (total) ........................................................................4190



Enacted/requested:–145–16762Budget Authority .......................................................................–145–153–796Outlays ......................................................................................


Total:–276–16762Budget Authority .......................................................................–276–153–796Outlays ......................................................................................



Cumulative balance of direct loans outstanding:2,4732,6402,871Outstanding, start of year .........................................................1210

Repayments:–105–124–204Repayments and prepayments - Cash ...................................1251–89–102–145Repayments and prepayments - CoC ....................................12516259118Adjustments: Capitalized interest .............................................1261





–1–1–31Repayments and prepayments ..................................................2251


Memorandum:


year .......................................................................................2299

STATUS OF AGENCY DEBT

[In millions of dollars]2018 est.2017 est.2016 actual

Agency debt held by FFB:356570801Outstanding FFB direct, start of year ...................................................

135135482Outstanding Certificate of Beneficial Ownership (CBO's), start of

year ..................................................................................................000New agency borrowing, FFB direct ........................................................

–134–214–231Repayments and prepayments, FFB Direct ...........................................00–347Repayments, CBO's-344 ......................................................................

222356570Outstanding 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 liquidatingaccount 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]2018 est.2017 est.2016 actual

21,83221,83221,832Cumulative RUS financed direct loans .....................................................26,59826,59826,598Cumulative FFB financed direct loans ......................................................21,83221,83221,832Cumulative RUS funds advanced .............................................................

000Unadvanced RUS funds, end of year .........................................................21,15220,99120,931Cumulative RUS principal repaid .............................................................13,68613,68013,672Cumulative RUS interest paid ..................................................................

000Cumulative loan guarantee commitments ................................................566577Number 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 .....................................................

5,7985,7855,755Cumulative RUS principal repaid .............................................................3,5453,5423,538Cumulative RUS interest paid ..................................................................

000Cumulative loan guarantee commitments ................................................156179205Number 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 ........................................................2,4692,4672,465Cumulative principal repaid .....................................................................2,4642,4632,462Cumulative interest paid ..........................................................................

141618Number of borrowers ................................................................................





–1,457–1,339Allowance for estimated uncollectible loans and interest (-) .........1603

1,1871,537Value of assets related to direct loans .......................................1699


Federal liabilities:7051,283Debt ...........................................................................................2103766547Resources payable to Treasury ...................................................210414...........................Other ..........................................................................................2105

1,4851,830Total liabilities ...........................................................................2999NET POSITION:

–119–119Cumulative results of operations ...................................................3300




Direct obligations:156165161Other services from non-Federal sources ..................................25.2233651Interest and dividends ..............................................................43.0

1,7341,7321,562Financial transfers ....................................................................94.0


RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LIQUIDATING ACCOUNT





Appropriations, mandatory:

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


–131..................................Budget authority (total) .............................................................1900–131..................................Total budgetary resources available ..............................................1930



131..................................Outlays (gross) ......................................................................3020





–131..................................Outlays from mandatory balances ....................................4101–131..................................Budget authority, net (total) ..........................................................4180–131..................................Outlays, net (total) ........................................................................4190

The 2018 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 and

loans. This change is consistent with the President's Budget request, whicheliminates rural business programs.

✦

RURAL TELEPHONE BANK PROGRAM ACCOUNT








Appropriations, mandatory:.................23Appropriation ....................................................................1200.................23Total budgetary resources available ..............................................1930


111Unpaid obligations, brought forward, Oct 1 ..........................3000.................23New obligations, unexpired accounts ....................................3010.................–2–3Outlays (gross) ......................................................................3020










Direct loan reestimates:.................–12Rural 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




7910Payment of interest to Treasury .............................................0713.................1.................Downward reestimates paid to receipt accounts ...................0742.................1.................Interest on downward reestimates ........................................0743










RURAL TELEPHONE BANK DIRECT LOAN FINANCING ACCOUNT—Continued





repay debt .....................................................................1825













Offsetting collections (collected) from:.................–2–3Federal sources .................................................................4120.................–1–2Interest on uninvested funds ............................................4122

–17–17–36Principal received on loans ...............................................4123–7–7–7Interest received on loans .................................................4123


–17–16–17Budget authority, net (mandatory) ............................................4160–5–6–37Outlays, net (mandatory) ...........................................................4170

–17–16–17Budget authority, net (total) ..........................................................4180–5–6–37Outlays, net (total) ........................................................................4190



Cumulative balance of direct loans outstanding:119123159Outstanding, start of year .........................................................12101213.................Disbursements: Direct loan disbursements ...............................1231






Net value of assets related to post-1991 direct loans receivable:123159Direct loans receivable, gross ....................................................14015455Allowance for subsidy cost (-) ....................................................1405



213247Federal liabilities: Debt ..................................................................2103


✦

DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND PROGRAM

For the principal amount of broadband telecommunication loans, $26,991,000.

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.

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:.................4146Grants .......................................................................................0010

Credit program obligations:751Direct loan subsidy ................................................................0701


.................315Interest on reestimates of direct loan subsidy .......................07068..................................Administrative expenses .......................................................0709


1514162Total new obligations .....................................................................0900






.................–1.................Appropriations transferred to other acct [012–1230] ........1120

















Direct loan levels supportable by subsidy budget authority:41314Broadband Treasury Rate Loans ................................................115003

41314Total direct loan levels ..............................................................115999Direct loan subsidy (in percent):

16.7516.6422.80Broadband Treasury Rate Loans ................................................132003



751Broadband Treasury Rate Loans ................................................133003

751Total subsidy budget authority ..................................................133999Direct loan subsidy outlays:

432Broadband Treasury Rate Loans ................................................134003


.................–13Distance Learning and Telemedicine Loans ...............................135001

.................50–117Broadband Treasury Rate Loans ................................................135003

.................49–114Total direct loan reestimates .....................................................135999

Administrative expense data:8..................................Budget authority .......................................................................35108..................................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.

Since there is little demand for the Distance Learning, Telemedicine(DLT) loans, the Budget proposes no funding for DLT loans in 2018. TheBudget proposes $4.5 million to support $27 million in Broadband loans.Funding in the 2018 Budget for DLT and Broadband grants is being reques-ted under the Rural Economic Infrastructure Grants account.



Direct obligations:8..................................Other goods and services from Federal sources ........................25.3714162Grants, subsidies, and contributions ........................................41.0


✦

DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND DIRECT LOAN FINANCING

ACCOUNT




42314Direct loan obligations ..........................................................0710424140Payment of interest to Treasury .............................................0713





1138285Unobligated balance brought forward, Oct 1 .........................1000..................................13Recoveries of prior year unpaid obligations ...........................1021.................–138–261Unobligated balances applied to repay debt .........................1023..................................–12Unobligated balance of borrowing authority withdrawn ........1024

1.................25Unobligated balance (total) ......................................................1050Financing authority:


Spending authority from offsetting collections, mandatory:96194156Collected ...........................................................................1800–3–2–2Change in uncollected payments, Federal sources ............1801

–9–72.................Spending authority from offsetting collections applied to

repay debt .....................................................................1825














–83–88–95Repayment of principal .....................................................4123–5–5–34Interest received on loans .................................................4123



–9–72132Budget authority, net (mandatory) ............................................4160–22–7034Outlays, net (mandatory) ...........................................................4170–9–72132Budget authority, net (total) ..........................................................4180

–22–7034Outlays, net (total) ........................................................................4190





Cumulative balance of direct loans outstanding:9771,0291,118Outstanding, start of year .........................................................1210323622Disbursements: Direct loan disbursements ...............................1231


..................................–16Write-offs for default: Charge Off - Misc and Assn Loans,

net .........................................................................................1264

9269771,029Outstanding, end of year .......................................................1290




Net value of assets related to post-1991 direct loans receivable:1,0291,118Direct loans receivable, gross ....................................................1401

12Interest receivable .....................................................................1402–51–176Allowance for subsidy cost (-) ....................................................1405–1–1Allowance for loss on interest receivable (-) ..............................1405



1,1571,201Federal liabilities: Debt ..................................................................2103


✦

RURAL DEVELOPMENT INSURANCE FUND LIQUIDATING ACCOUNT







RURAL DEVELOPMENT INSURANCE FUND LIQUIDATING ACCOUNT—Continued







..................................13Spending auth from offsetting collections, mand (total) .......1850

..................................13Total budgetary resources available ..............................................1930Memorandum (non-add) entries:

..................................13Unexpired unobligated balance, end of year ..........................1941


..................................13Budget authority, gross .........................................................4090Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–77–93–126Non-Federal sources .........................................................4123–77–93–113Budget authority, net (total) ..........................................................4180–77–93–126Outlays, net (total) ........................................................................4190




..................................2Write-offs for default: Other adjustments, net (+ or -) ..............1264





–1.................–1Repayments 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:1327Federal assets: Fund balances with Treasury .................................11013434Non-Federal assets: Investments in non-Federal securities, net .....1201

421510Direct loans, gross .........................................................................160144Interest receivable .........................................................................1602


424513Value 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), $188,167,000, of which no morethan 6 percent shall remain available until September 30, 2019, 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:686981Trade Promotion ........................................................................0001798069Trade Policy ...............................................................................0002414242Capacity Building\Food Security ................................................0003

188191192Total direct obligations ..................................................................0799134161119Salaries and Expenses (Reimbursable) .....................................0801



43538Unobligated balance brought forward, Oct 1 .........................1000.................6.................Discretionary unobligated balance brought fwd, Oct 1 ......1001..................................1Unobligated balance transfer from other acct [072–1037] ....1011..................................–2Adjustment of unobligated bal brought forward, Oct 1 .........1020..................................1Recoveries of prior year unpaid obligations ...........................1021





11.................Appropriation ....................................................................1200Spending authority from offsetting collections, discretionary:

636360Collected ...........................................................................1700666674Change in uncollected payments, Federal sources ............1701


Memorandum (non-add) entries:..................................–19Unobligated balance expiring ................................................1940.................435Unexpired unobligated balance, end of year ..........................1941




.................7116Obligations ("upward adjustments"), expired accounts ........3011–281–391–313Outlays (gross) ......................................................................3020















–66–66–74Change in uncollected pymts, Fed sources, unexpired .......4050..................................56Offsetting collections credited to expired accounts ...........4052

–66–66–18Additional offsets against budget authority only (total) ........4060


Mandatory:11.................Budget authority, gross .........................................................4090


189192193Budget authority, net (total) ..........................................................4180218328197Outlays, 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 2018 Budget includes $188 million forFAS. For more information on FAS's mission and program topic areas,please visit http://www.fas.usda.gov/topics.





909188Total personnel compensation ...........................................11.9343232Civilian personnel benefits ........................................................12.1788Travel and transportation of persons .........................................21.0211Transportation of things ............................................................22.0444Rental payments to others ........................................................23.2223Communications, utilities, and miscellaneous charges ............23.3

475154Other services from non-Federal sources ..................................25.2111Supplies 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 2018 Budget does not requestfunding for the program.

✦

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]2018 est.2017 est.2016-

actual

020112021McGovern-Dole International Food for Education and Child Nutrition (budgetauthority) ..................................................................................................P.L. 480:

01,71321,7162Title II Grants (budget authority) ..........................................................

Food for Progress:166166185CCC Funded .........................................................................................

0300Bill Emerson Humanitarian Trust ..............................................................

1The Consolidated Appropriations Act of 2016 and the Further Continuing Appropriations Act, 2017, provided $5 millionwithin McGovern-Dole that can be used for Local and Regional Food Aid Procurement.2Includes $250 million provided through section 748 of the Consolidated Appropriations Act of 2016 and the FurtherContinuing Appropriations Act, 2017.3Assets 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 2018 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).

151DEPARTMENT OF AGRICULTUREForeign Agricultural Service—Continued


FOREIGN ASSISTANCE PROGRAMS—Continued

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 2018 Budget proposes to eliminate the pro-gram.

✦

MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD

NUTRITION PROGRAM GRANTS





.................201506McGovern-Dole International Food for Education & Child Nutrition

Program ................................................................................0001

.................201506Total new obligations, unexpired accounts (object class 41.0) .......0900


6161228Unobligated balance brought forward, Oct 1 .........................1000..................................63Recoveries of prior year unpaid obligations ...........................1021..................................74Recoveries of prior year paid obligations ...............................1033


Appropriations, discretionary:.................201202Appropriation ....................................................................1100.................201202Budget authority (total) .............................................................1900












Offsetting collections (collected) from:..................................–69Federal sources .................................................................4030..................................–5Non-Federal sources: ........................................................4033

..................................–74Offsets against gross budget authority and outlays (total) ....4040Additional offsets against gross budget authority only:


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

.................201202Budget authority, net (discretionary) .........................................407011913034Outlays, net (discretionary) .......................................................4080


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 107–171). 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 2018 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.

✦

PUBLIC LAW 480 TITLE I OCEAN FREIGHT DIFFERENTIAL GRANTS

This account funds the title I ocean freight differential program. Nofunding is requested for 2018.

✦

FOOD FOR PEACE TITLE II GRANTS




Obligations by program activity:.................1,4631,858Title II Grants .............................................................................0002..................................20Reimbursement to CCC for Bill Emerson Trust ..........................0003

.................1,4631,878Total new obligations (object class 41.0) ......................................0900




Appropriations, discretionary:.................1,7131,716Appropriation ....................................................................1100.................1,7131,716Budget authority (total) .............................................................1900

3221,7851,950Total budgetary resources available ..............................................1930Memorandum (non-add) entries:



1,5141,3921,345Unpaid obligations, brought forward, Oct 1 ..........................3000.................1,4631,878New obligations, unexpired accounts ....................................3010

–801–1,341–1,695Outlays (gross) ......................................................................3020..................................–136Recoveries of prior year unpaid obligations, unexpired .........3040

7131,5141,392Unpaid obligations, end of year .................................................3050Memorandum (non-add) entries:

1,5141,3921,345Obligated balance, start of year ............................................31007131,5141,392Obligated balance, end of year ..............................................3200

THE BUDGET FOR FISCAL YEAR 2018152 Foreign Agricultural Service—ContinuedFederal Funds—Continued


.................1,7131,716Budget authority, gross .........................................................4000Outlays, gross:

.................514410Outlays from new discretionary authority ..........................40108018271,285Outlays from discretionary balances .................................4011

8011,3411,695Outlays, gross (total) .............................................................4020.................1,7131,716Budget authority, net (total) ..........................................................4180

8011,3411,695Outlays, 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 2018 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, $149,000shall be transferred to and merged with the appropriation for "Farm Service Agency,Salaries and Expenses".







.................33Administrative expenses .......................................................0709

.................1715Total new obligations, unexpired accounts ....................................0900




.................33Appropriation ....................................................................1100Appropriations, mandatory:

.................1412Appropriation ....................................................................1200

.................1715Budget authority (total) .............................................................190011816Total budgetary resources available ..............................................1930




.................–17–15Outlays (gross) ......................................................................3020



.................33Outlays from new discretionary authority ..........................4010Mandatory:







Direct loan reestimates:..................................–1P. L. 480 title I loans ..................................................................135001

Administrative expense data:..................................3Budget authority .......................................................................3510..................................3Outlays from new authority .......................................................3590

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 $3.4 billion. No additional funding is requested for new Title I creditfinancing in 2018. The 2018 Budget includes $149,000 for administrativeexpenses.



Direct obligations:.................33Other goods and services from Federal sources ........................25.3.................1412Grants, subsidies, and contributions ........................................41.0

.................1715Total new obligations, unexpired accounts ............................99.9

✦

P.L. 480 DIRECT CREDIT FINANCING ACCOUNT




353536Payment of interest to Treasury .............................................0713.................22Downward reestimates paid to receipt accounts ...................0742.................1212Interest on downward reestimates ........................................0743




Financing authority:Borrowing authority, mandatory:

3535.................Borrowing authority ...........................................................1400Spending authority from offsetting collections, mandatory:



repay debt .....................................................................1825




11.................Unpaid obligations, brought forward, Oct 1 ..........................3000354950New obligations, unexpired accounts ....................................3010

–32–49–49Outlays (gross) ......................................................................3020




–1–1.................Obligated balance, start of year ............................................31002–1–1Obligated balance, end of year ..............................................3200

153DEPARTMENT OF AGRICULTUREForeign Agricultural Service—Continued


P.L. 480 DIRECT CREDIT FINANCING ACCOUNT—Continued






Offsetting collections (collected) from:.................–14–12Payments from program account - Upward Reestimate .....4120

–2–2.................Interest on uninvested funds ............................................4122–10–12–16Interest received on loans .................................................4123–65–67–69Principal received on loans ...............................................4123



5–1–34Budget authority, net (mandatory) ............................................4160–45–46–48Outlays, net (mandatory) ...........................................................4170

5–1–34Budget authority, net (total) ..........................................................4180–45–46–48Outlays, net (total) ........................................................................4190








Net value of assets related to post-1991 direct loans receivable:725794Direct loans receivable, gross ....................................................14014945Interest receivable .....................................................................1402


555604Net present value of assets related to direct loans ................14992824Other Federal assets: Accounts Receivable ....................................1901


Federal liabilities:569618Debt ...........................................................................................21032826Other ..........................................................................................2105



✦

DEBT REDUCTION FINANCING ACCOUNT




444Payment of interest to Treasury .............................................0713









repay debt .....................................................................1825





Uncollected payments:–4–4.................Uncollected pymts, Fed sources, brought forward, Oct 1 ........3060

..................................–4Change in uncollected pymts, Fed sources, unexpired ..........3070


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




Offsetting collections (collected) from:–2–2.................Interest on uninvested funds ............................................4122–8–8–7Loan Repayments - Principal ............................................4123–3–3–3Loan Repayments- Interest ...............................................4123


..................................–4Change in uncollected pymts, Fed sources, unexpired .......4140–9–9–6Outlays, net (mandatory) ...........................................................4170

...................................................Budget authority, net (total) ..........................................................4180–9–9–6Outlays, net (total) ........................................................................4190




..................................–2Write-offs for default: Direct loans ............................................1263





Net value of assets related to post-1991 direct loans receivable:121133Direct loans receivable, gross ....................................................1401


......................................................Net present value of assets related to direct loans ................1499

......................................................Other Federal assets: Accounts Receivable ....................................1901


6779Federal liabilities: Resources payable to Treasury ..........................210421...........................Non-Federal liabilities: Accounts payable ......................................2201



✦

EXPENSES, PUBLIC LAW 480, FOREIGN ASSISTANCE PROGRAMS, AGRICULTURE

LIQUIDATING ACCOUNT




111Vietnam Education Fund .......................................................0715

THE BUDGET FOR FISCAL YEAR 2018154 Foreign Agricultural Service—ContinuedFederal Funds—Continued





Spending authority from offsetting collections, mandatory:227238285Offsetting collections (cash) (Principal and interest) ........1800









111Outlays from new mandatory authority .............................4100Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–196–201–240Principal repayments ........................................................4123–31–37–45Interest repayments ..........................................................4123





Cumulative balance of direct loans outstanding:1,9562,1572,397Outstanding, start of year .........................................................1210–196–201–240Repayments: Repayments and prepayments .............................1251






–1,072–1,198Allowance for estimated uncollectible loans and interest (-) .........1603

1,0971,211Value of assets related to direct loans .......................................1699


1,1051,224Federal liabilities: Resources payable to Treasury ..........................21041914Non-Federal liabilities: Other .........................................................2207



✦

Trust Funds

FOREIGN SERVICE NATIONAL SEPARATION LIABILITY TRUST FUND




Current law:..................................4Foreign Service National Separation Liability Trust Fund ........1140

..................................4Total: Balances and receipts .....................................................2000

Appropriations:Current law:

..................................–4Foreign Service National Separation Liability Trust Fund ........2101






Appropriations, mandatory:..................................4Appropriation (special or trust fund) .................................1201




111Unpaid obligations, brought forward, Oct 1 ..........................3000




..................................4Budget authority, gross .........................................................4090

..................................4Budget authority, net (total) ..........................................................4180


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, $148,541,000.




Obligations by program activity:149148148Nutrition programs administration ............................................0001

.................22Congressional hunger center fellowship ....................................0003

.................11Dietary Guidelines Study ...........................................................0005










323332Obligated balance, start of year ............................................3100

155DEPARTMENT OF AGRICULTUREFood and Nutrition Service

Federal Funds

NUTRITION PROGRAMS ADMINISTRATION—Continued



213233Obligated balance, end of year ..............................................3200





This account funds the majority of the Federal operating expenses of theFood and Nutrition Service and the Center for Nutrition Policy and Promo-tion (CNPP).





858683Total personnel compensation ...........................................11.9272728Civilian personnel benefits ........................................................12.1222Travel and transportation of persons .........................................21.0

171513Rental payments to GSA ............................................................23.1111Communications, utilities, and miscellaneous charges ............23.3

101017Other services from non-Federal sources ..................................25.2663Other goods and services from Federal sources ........................25.3111Supplies and materials .............................................................26.0



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.), $73,612,500,000, of which $3,000,000,000, to remain available throughDecember 31, 2019, 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 of the funds made availableunder this heading, $996,000 may be used to provide nutrition education servicesto State agencies and Federally Recognized Tribes participating in the Food Distri-bution Program on Indian Reservations: Provided further, That this appropriationshall be subject to any work registration or workfare requirements as may be requiredby law: Provided further, That funds made available for Employment and Trainingunder this heading shall remain available through September 30, 2019: 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, 2019: 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:62,63967,75566,477Benefits issued .........................................................................00014,4834,2303,771State administration .................................................................0002477456427Employment and training program ............................................0003186182158Other program costs ..................................................................0004

1,9291,9491,959Nutrition Assistance for Puerto Rico ..........................................0005

10510398Food Distribution Program on Indian Reservations (Commodities

in lieu of food stamps) ..........................................................0006

484847Food Distribution Program on Indian Reservations (Cooperator

administrative expense) ........................................................0007

289318320The Emergency Food Assistance Program (commodities) ..........0008888American Samoa .......................................................................0009999Community Food Projects ..........................................................0010

121226Commonwealth of the Northern Mariana Islands ......................0011421411420Nutrition Education Grant Program ...........................................0012

555Program access .........................................................................0013

70,61175,48673,725Direct program activities, subtotal ................................................0091753Direct Funds for Program Integrity ............................................0501

70,61875,49173,728Total direct obligations ..................................................................0799858075Supplemental Nutrition Assistance Program (Reimbursable) .....0801



6,0266,0303,059Unobligated balance brought forward, Oct 1 .........................1000..................................37Recoveries of prior year unpaid obligations ...........................1021






73,61278,48680,838Appropriations, mandatory (total) .........................................1260Spending authority from offsetting collections, mandatory:



Memorandum (non-add) entries:–3,000–3,000–4,178Unobligated balance expiring ................................................19406,0216,0266,030Unexpired unobligated balance, end of year ..........................1941












117Outlays from discretionary balances .................................4011Mandatory:




THE BUDGET FOR FISCAL YEAR 2018156 Food and Nutrition Service—ContinuedFederal Funds—Continued


..................................–1Federal sources .................................................................4120–85–80–75State Option Plans ............................................................4123




73,61278,48680,838Budget authority, net (mandatory) ............................................416071,35971,85373,074Outlays, net (mandatory) ...........................................................417073,61378,48780,839Budget authority, net (total) ..........................................................418071,36071,85473,081Outlays, net (total) ........................................................................4190



Enacted/requested:73,61378,48780,839Budget Authority .......................................................................71,36071,85473,081Outlays ......................................................................................

Legislative proposal, subject to PAYGO:–4,895..................................Budget Authority .......................................................................–4,895..................................Outlays ......................................................................................

Total:68,71878,48780,839Budget Authority .......................................................................66,46571,85473,081Outlays ......................................................................................

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 theEmergency 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:393233Personnel compensation: Full-time permanent .........................11.112109Civilian personnel benefits ........................................................12.1444Travel and transportation of persons .........................................21.0111Printing and reproduction .........................................................24.0

103103103Other services from non-Federal sources ..................................25.2387387387Supplies and materials .............................................................26.0

111Equipment .................................................................................31.070,07174,95373,190Grants, subsidies, and contributions ........................................41.0



Employment Summary



SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM




Obligations by program activity:–4,643..................................Benefits issued .........................................................................0001

–4,643..................................Direct program activities, subtotal ................................................0091

–4,643..................................Total direct obligations ..................................................................0799

–4,643..................................Total new obligations, unexpired accounts (object class 41.0) .......0900


Appropriations, mandatory:–4,895..................................Appropriation ....................................................................1200

Spending authority from offsetting collections, mandatory:252..................................Collected ...........................................................................1800

–4,643..................................Budget authority (total) .............................................................1900–4,643..................................Total budgetary resources available ..............................................1930


–4,643..................................New obligations, unexpired accounts ....................................30104,643..................................Outlays (gross) ......................................................................3020


–4,643..................................Budget authority, gross .........................................................4090Outlays, gross:

–4,643..................................Outlays from new mandatory authority .............................4100Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–252..................................Retailer Authorization Fee .................................................4123

–4,895..................................Budget authority, net (total) ..........................................................4180–4,895..................................Outlays, net (total) ........................................................................4190

The President's Budget includes a number of legislative proposals thatare designed to target benefits to those who need them while ensuringcareful stewardship of taxpayers' money. This suite of proposals includesstandardizing how States account for utility costs and aligning the treatmentof actual out-of-pocket expenses for low income households. The Budgetalso seeks to ensure that those who can work, do work by limiting the useof waivers that exempt able-bodied adults without dependents from workrequirements. The Budget improves consistency across safety net programsby aligning income and asset limits and eliminating loopholes. The Budgetalso proposes to alter the program's funding structure by requiring Statesto cover, on average, 25 percent of SNAP benefits, phased in between 2020and 2023, offering new flexibilities and creating an incentive for States tomanage benefit costs as they make operational choices available to themunder the law. The President's Budget includes proposals to manage thecost of the program by eliminating the minimum benefit now provided tothose who would otherwise qualify for less, and by setting an overall limitfor a household's benefit at the current maximum for a household of six.Finally, the President's Budget includes a proposal to collect a modestcertification fee from retailers who also benefit from participating in SNAP.These fees would be scaled by retailer size and would help offset theoverall cost of the program.

✦

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; $24,256,266,000, toremain available through September 30, 2019, 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, $16,972,000 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 2018":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 "foreach of fiscal years 2011 through 2015" and inserting "for fiscal year 2018":Provided further, That section 9(h)(4) of the Richard B. Russell National SchoolLunch Act (42 U.S.C. 1758(h)(4)) is amended in the first sentence by striking "foreach of fiscal years 2011 through 2015" and inserting "for fiscal year 2018".Note.—A full-year 2017 appropriation for this account was not enacted at the time the budget

was prepared; therefore, the budget assumes this account is operating under the Further Continu-

157DEPARTMENT OF AGRICULTUREFood and Nutrition Service—Continued


CHILD NUTRITION PROGRAMS—Continued




Obligations by program activity:501496483Above 185 of poverty .................................................................0001985986983130–185 of poverty ...................................................................0002

11,58710,93210,794Below 130 of poverty .................................................................0003

13,07312,41412,260Subtotal, National School Lunch Program .....................................0091118110107Above 185 of poverty .................................................................0101225219262130–185 of poverty ...................................................................0102

4,4334,1603,873Below 130 of poverty .................................................................0103

4,7764,4894,242Subtotal, School Breakfast Program ..............................................0191204193193Above 185 of poverty .................................................................0201170158154130–185 of poverty ...................................................................0202

3,5463,3083,105Below 130 of poverty .................................................................0203

3,9203,6593,452Subtotal, Child and Adult Care Feeding Program ..........................0291640590540Summer Food Service Program ..................................................0301

999Special Milk Program ................................................................0302299282268State Administrative Expenses ..................................................0303

1,4891,3981,312Commodity Procurement ...........................................................0304101110Coordinated Review Effort .........................................................0310342Food Safety Education ...............................................................0315

213517CN Studies and Evaluations ......................................................0320121111Computer Support and Processing ............................................0325284020Other Mandatory Program Costs ................................................0340

2,5112,3802,189Subtotal, Other mandatory activities .............................................0391172016Team Nutrition and HealthierUS Schools Challenge ..................0401232325Summer EBT Demonstration ......................................................0405

.................55School Meal Equipment Grants x year .......................................0414

.................2723School Meals Equipment Grants 2 year .....................................0415

407569Subtotal, discretionary activities ...................................................0491297168167Fresh Fruit and Vegetable Program ...........................................0501

884Tech. Assist. Program Integrity/Administrative Reviews ............0502

555National Food Service Management Inst./Information

Clearinghouse .......................................................................0504

..................................4Direct Certification Technical Assistance (Sect. 749) ................05076620Other Permanent Programs .......................................................0520

316187200Subtotal, Permanent Programs ......................................................0591

24,63623,20422,412Total direct obligations ..................................................................0799




5378971,070Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, discretionary:–85–5570Appropriation ....................................................................1100


191919Appropriation- Permanent Appropriation ..........................12009,1589,6729,130Appropriations transferred from other acct [012–5209] ....1221



24,53222,89922,268Appropriations, mandatory (total) .........................................126024,44722,84422,338Budget authority (total) .............................................................190024,98423,74123,408Total budgetary resources available ..............................................1930









3,2603,8203,735Obligated balance, start of year ............................................3100

3,9223,2603,820Obligated balance, end of year ..............................................3200


–85–5570Budget authority, gross .........................................................4000Outlays, gross:

–120–11721Outlays from new discretionary authority ..........................4010624543Outlays from discretionary balances .................................4011

–58–7264Outlays, gross (total) .............................................................4020Mandatory:



24,03223,83621,914Outlays, gross (total) .............................................................411024,44722,84422,338Budget authority, net (total) ..........................................................418023,97423,76421,978Outlays, 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 FoodProgram (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 2018 Budget will supportalmost 5.4 billion lunches and snacks served to 31 million children in theNSLP, almost 2.6 billion breakfasts served to more than 15 million childrenin the SBP, and over 2.2 billion meals and snacks served in day care facil-ities.



Direct obligations:333221Personnel compensation: Full-time permanent .........................11.110106Civilian personnel benefits ........................................................12.1222Travel and transportation of persons .........................................21.0111Printing and reproduction .........................................................24.0

595840Other services from non-Federal sources ..................................25.21,4891,3981,029Supplies and materials (Commodities) .....................................26.0

111Equipment .................................................................................31.023,04121,70221,312Grants, subsidies, and contributions ........................................41.0

24,63623,20422,412Direct obligations ..................................................................99.0


Employment Summary



✦

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),$6,150,000,000, to remain available through September 30, 2019: 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 a


federally 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:6,8016,7166,730Grants to States ........................................................................0001

2020045WIC EBT/MIS ..............................................................................0004141410Infrastructure Grants and Technical Assistance ........................0010596060Breastfeeding Peer Counselors and Bonuses ............................0020161618Program Initiatives and Evaluations .........................................0030

6,9107,0066,863Direct program activities (discretionary), subtotal ........................0091111UPC Database (mandatory) .......................................................0101



1,203999795Unobligated balance brought forward, Oct 1 .........................1000.................1459Discretionary unobligated balance brought fwd, Oct 1 ......1001




–1,000.................–220Unobligated balance of appropriations permanently

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

5,1506,5586,350Appropriation, discretionary (total) .......................................1160Appropriations, mandatory:

111Appropriation - Permanent Appropriation .........................12005,1516,5596,351Budget authority (total) .............................................................19006,9128,2107,863Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:11,203999Unexpired unobligated balance, end of year ..........................1941


2,3751,6101,422Unpaid obligations, brought forward, Oct 1 ..........................30006,9117,0076,864New obligations, unexpired accounts ....................................30102282289Obligations ("upward adjustments"), expired accounts ........3011

–6,005–5,818–5,964Outlays (gross) ......................................................................3020–558–652–717Recoveries of prior year unpaid obligations, unexpired .........3040






4,2504,4924,331Outlays from new discretionary authority ..........................40101,7541,3261,632Outlays from discretionary balances .................................4011

6,0045,8185,963Outlays, gross (total) .............................................................4020Mandatory:


1.................1Outlays from mandatory balances ....................................41015,1516,5596,351Budget authority, net (total) ..........................................................41806,0055,8185,964Outlays, 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. The2018 Budget supports nutrition benefits for the 7.2 million individuals ex-pected to participate in the program each month.



Direct obligations:654Personnel compensation: Full-time permanent .........................11.122.................Civilian personnel benefits ........................................................12.1

141411Other services from non-Federal sources ..................................25.2112Supplies and materials .............................................................26.0

6,8886,9856,847Grants, subsidies, and contributions ........................................41.0


Employment Summary



✦

COMMODITY ASSISTANCE PROGRAM

For necessary expenses to carry out disaster assistance and the Commodity Sup-plemental Food Program as authorized by section 4(a) of the Agriculture andConsumer Protection Act of 1973 (7 U.S.C. 612c note); the Emergency Food Assist-ance Act of 1983; and special assistance for the nuclear affected islands, as author-ized by section 103(f)(2) of the Compact of Free Association Amendments Act of2003 (Public Law 108–188), $293,591,000, to remain available through September30, 2019: Provided, That none of these funds shall be available to reimburse theCommodity Credit Corporation for commodities donated to the program: Providedfurther, That notwithstanding any other provision of law, effective with funds madeavailable in fiscal year 2018 to support the Seniors Farmers' Market NutritionProgram, as authorized by section 4402 of the Farm Security and Rural InvestmentAct of 2002, such funds shall remain available through September 30, 2019: Providedfurther, That of the funds made available under section 27(a) of the Food and Nutri-tion Act of 2008 (7 U.S.C. 2036(a)), the Secretary may use up to 10 percent for costsassociated with the distribution of commodities.




Obligations by program activity:185233176Commodity procurement ...........................................................0001535147Administrative costs .................................................................0002

238284223Subtotal, commodity supplemental food program .........................0091545454TEFAP Administrative ................................................................0105212020Senior farmers' market ..............................................................0110

.................1919Farmers' market nutrition program ...........................................0115111Pacific island and disaster assistance .....................................0120

..................................2NSIP (Transfer Funds) ................................................................0130





.................4742Discretionary unobligated balance brought fwd, Oct 1 ......1001










159DEPARTMENT OF AGRICULTUREFood and Nutrition Service—Continued


COMMODITY ASSISTANCE PROGRAM—Continued




1.................47Unexpired unobligated balance, end of year ..........................1941



–321–330–268Outlays (gross) ......................................................................3020..................................–6Recoveries of prior year unpaid obligations, unexpired .........3040..................................–1Recoveries of prior year unpaid obligations, expired .............3041








1212.................Outlays from new mandatory authority .............................41009157Outlays from mandatory balances ....................................4101


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 forsome low-income women, infants and children. It also funds State admin-istrative expenses. TEFAP provides cash to support State administrativeactivities and to maintain the storage and distribution pipeline for USDAand privately-donated commodities (TEFAP commodities are separatelyfunded through the Supplemental Nutrition Assistance Program (SNAP)account). The account also funds the SFMNP, which provides low-incomeelderly participants with vouchers to purchase produce at farmers' markets.The Senior Farmers' Market Nutrition Program is funded by a transfer fromthe Commodity Credit Corporation.




207270176Supplies and materials (commodities) ......................................26.0104105141Grants, 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,$99,693,000, to remain available until expended, for construction, capital improve-ment, maintenance and acquisition of buildings and other facilities and infrastruc-ture; and for construction, reconstruction, decommissioning of roads that are nolonger needed, including unauthorized roads that are not part of the transportationsystem, and maintenance of forest roads and trails by the Forest Service as authorizedby 16 U.S.C. 532–538 and 23 U.S.C. 101 and 205: Provided, That funds becomingavailable in fiscal year 2018 under the Act of March 4, 1913 (16 U.S.C. 501) shallbe transferred to the General Fund of the Treasury and shall not be available fortransfer or obligation for any other purpose unless the funds are appropriated.




Obligations by program activity:146378378Capital improvement and maintenance ....................................0001212828Capital Improvement and Maintenance (Reimbursable) ...........0801






..................................–15Appropriations transferred to other accts [012–1106] .......1120




3030.................Spending auth from offsetting collections, disc (total) .........1750130393367Budget authority (total) .............................................................1900167443456Total budgetary resources available ..............................................1930



















The 2018 Budget requests $99,693,000 for Capital Improvement andMaintenance. Funding provides for capital improvement and maintenanceof Forest Service assets including facilities, roads, and trails. The programemphasizes an efficient and effective reinvestment and maintenance ofNational Forest System infrastructure that supports public and administrat-ive uses and quality recreation experiences with minimal impact to ecosys-tem stability and conditions.

Facilities.—Provides for capital improvement and maintenance of recre-ation developed sites, fire, administrative, and other facilities, includingvisitor centers, research facilities, telecommunication sites and towers, anddams, and acquisition of buildings, and other facilities necessary to carryout 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. Theagency continues to address the growing road system maintenance backlog.Funding priorities are ecosystem health and driver safety and resourceprotection, including clean water, 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.





77128128Total personnel compensation ...........................................11.9154848Civilian personnel benefits ........................................................12.1333Benefits for former personnel ....................................................13.0777Travel and transportation of persons .........................................21.0222Transportation of things ............................................................22.0333Rental payments to GSA ............................................................23.1444Rental payments to others ........................................................23.2577Communications, utilities, and miscellaneous charges ............23.358585Other services from non-Federal sources ..................................25.255252Other goods and services from Federal sources ........................25.3466Operation and maintenance of facilities ...................................25.4111Research and development contracts .......................................25.5122Operation and maintenance of equipment ................................25.7688Supplies and materials .............................................................26.0244Equipment .................................................................................31.0333Land and structures ..................................................................32.031515Grants, subsidies, and contributions ........................................41.0



Employment Summary


1,6621,9451,945Direct civilian full-time equivalent employment ............................1001212212212Reimbursable civilian full-time equivalent employment ...............2001252525Allocation account civilian full-time equivalent employment ........3001

✦

FOREST AND RANGELAND RESEARCH

For necessary expenses of forest and rangeland research as authorized by law,$259,000,000, to remain available until expended: Provided, That of the fundsprovided, $77,000,000 is for the forest inventory and analysis program.




Obligations by program activity:298306335Forest and rangeland research ..................................................0006161921Forest and Rangeland Research (Reimbursable) ......................0801






..................................–3Appropriations transferred to other acct [014–1125] ........112018.................43Appropriations transferred from other acct [012–1115] ....1121


















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


The 2018 Budget requests $259,000,000 for Forest and Rangeland Re-search (Forest Service R&D). Funding requested maintains an essentiallevel of basic research associated with the Priority Research Areas andStrategic Program Areas, while also providing $77 million for the ForestInventory and Analysis program to continue to implement the annualizedinventory program in all 50 States (including interior Alaska), the affiliatedPacific Islands, Puerto Rico, and the U.S. Virgin Islands.

161DEPARTMENT OF AGRICULTUREForest Service—ContinuedFederal Funds—Continued

FOREST AND RANGELAND RESEARCH—Continued

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 econom-ic benefits including healthy watersheds, forest products, wildlife protection,outdoor recreation , and other benefits , across all U.S. territories and States.Forest Service R&D accomplishes this mandate through ecological andsocial science research to understand ecosystems, how humans influencethose ecosystems, and how forests can be managed sustainably to supportboth environmental conservation and economic opportunities. These re-search products and services increase the basic biological and physicalknowledge base of the composition, structure, and function of forest andgrassland ecosystems. Research is conducted at five Research Stations, theForest Products Laboratory, and the International Institute of TropicalForestry located in Puerto Rico. The Forest Service R&D structure has twocomponents: Priority Research Areas and Strategic Program Areas. ThePriority Research Areas address national needs in seven areas: Forest In-ventory and Analysis, Forest Disturbances, Watershed Management andRestoration, Bioenergy and Biobased Products, Urban Natural ResourcesStewardship, Nanotechnology, and Localized Needs Research. StrategicProgram Areas include Wildland Fire and Fuels; Invasive Species; Recre-ation; Resource Management and Use; Water, Air, and Soil; Wildlife andFish; and Inventory and Monitoring. The 2018 Budget sustains the outputsand products on which land managers depend for developing managementoptions, strategies, and systems for addressing current issues.





145149149Total personnel compensation ...........................................11.9505151Civilian personnel benefits ........................................................12.1111Benefits for former personnel ....................................................13.0888Travel and transportation of persons .........................................21.0222Transportation of things ............................................................22.0444Rental payments to GSA ............................................................23.1444Rental payments to others ........................................................23.2777Communications, utilities, and miscellaneous charges ............23.3111Printing and reproduction .........................................................24.0

162021Other services from non-Federal sources ..................................25.2182020Other goods and services from Federal sources ........................25.3111Operation and maintenance of facilities ...................................25.4

182141Research and development contracts .......................................25.5111Operation and maintenance of equipment ................................25.7777Supplies and materials .............................................................26.0666Equipment .................................................................................31.09311Grants, subsidies, and contributions ........................................41.0



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, $1,747,442,000,to remain available until expended: Provided, That of the funds provided, up to$162,000,000 may be used to support the Integrated Resource Restoration pilot

program for Region 1, Region 3 and Region 4: Provided further, That of the fundsprovided, $359,121,000 shall be for forest products: Provided further, That of thefunds provided, $354,288,000 shall be for hazardous fuels management activities,of which not to exceed $15,000,000 may be used to make grants, using any author-ities available to the Forest Service under the "State and Private Forestry" appro-priation, for the purpose of creating incentives for increased use of biomass fromNational Forest System lands: Provided further, That of the funds provided, up to$15,000,000 may be used by the Secretary of Agriculture to enter into procurementcontracts or cooperative agreements or to issue grants for hazardous fuels manage-ment activities, and for training or monitoring associated with such hazardous fuelsmanagement activities on Federal land, or on non-Federal land if the Secretarydetermines such activities benefit resources on Federal land.

In addition, $4,500,000, to remain available until expended, from communicationsite rental fees established by the Forest Service for the cost of administering com-munication site activities.

GIFTS, DONATIONS AND BEQUESTS FOR FOREST AND RANGELAND RESEARCH

For expenses authorized by 16 U.S.C. 1643(b), $45,000, to remain available untilexpended, to be derived from the fund established pursuant to the above Act.




Obligations by program activity:1,4961,4401,628National forest system ..............................................................0001

616160National Forest System (Reimbursable) ....................................0801
























THE BUDGET FOR FISCAL YEAR 2018162 Forest Service—ContinuedFederal Funds—Continued


–37–37–36Federal sources .................................................................4030–23–23–29Non-Federal sources .........................................................4033




The 2018 Budget requests $1,747,442,000 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 2018 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. In doing so, the Hazardous Fuels program has beenmoved from the Wildland Fire Management appropriation to the NationalForest System. Most hazardous fuels work takes place on National ForestSystem lands, and the Forest Service will be able to administer this programmore efficiently and effectively as a part of the National Forest System.

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. The Hazardous Fuelsprogram restores forest health and reduces wildfire risks. Hazardous fuelreduction modifies the arrangement of or reduces the volume of naturallyoccurring flammable vegetation and forest litter. The program includesprescribed burning, mechanical treatments, and other methods. Treatmentswill be focused on the most strategic acres, which are often the most ex-pensive because they require mechanical treatment or a combination ofmechanical treatment with prescribed fire. Projects completed using haz-ardous fuels funds will focus on: strategically protecting communities (andassociated lives, property, and public infrastructure) which are at the highestrisk from wildfire; providing a safer environment for wildland fire manage-ment operations; and supporting communities that are working to achieveFirewise standards and have identified acres to be treated in CommunityWildfire Protection Plans or equivalent plans, and have made an investmentin implementing local solutions to protect against wildland fire. Treatmentsare designed to alter fire behavior and reduce negative impacts of wildlandfires such as erosion or soils that, due to high fire temperatures, shed waterrather than absorbing it. Healthy, resilient landscapes have greater capacityto adapt to and withstand natural disturbances and large scale threats tosustainability, especially under changing and uncertain future environmentalconditions.

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 2018, this in-cludes additional Budget support for Law Enforcement Operations to cleanup and reclaim illegal marijuana grow sites on NFS lands.

The 2018 Budget reflects an emphasis on Forest Service program per-formance and accountability agency-wide and delivering critical servicesmore efficiently. The Forest Service business rules for accomplishmentreporting incorporate not only directly funded work, but also accomplish-ments achieved through integration between program areas or partnershipswith external groups. This effort improves performance and accountabilityby shifting focus to accomplishments that naturally align other programsand partner organizations to achieve multiple goals.






777Benefits for former personnel ....................................................13.0454545Travel and transportation of persons .........................................21.0101010Transportation of things ............................................................22.0141414Rental payments to GSA ............................................................23.1212121Rental payments to others ........................................................23.2403333Communications, utilities, and miscellaneous charges ............23.3333Printing and reproduction .........................................................24.0222Advisory and assistance services ..............................................25.1

11589178Other services from non-Federal sources ..................................25.28763163Other goods and services from Federal sources ........................25.3222Operation and maintenance of facilities ...................................25.4555Operation and maintenance of equipment ................................25.7

343434Supplies and materials .............................................................26.0242424Equipment .................................................................................31.0656565Grants, subsidies, and contributions ........................................41.0111Insurance claims and indemnities ............................................42.0

1,4961,4391,628Direct obligations ..................................................................99.0606060Reimbursable obligations .....................................................99.012.................Adjustment for rounding ...........................................................99.5


Employment Summary



1,3221,3221,322Allocation account civilian full-time equivalent employment ........3001

✦

STATE AND PRIVATE FORESTRY

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 and conductingan international program as authorized, $118,010,000, to remain available untilexpended, as authorized by law.




Obligations by program activity:188188190State and private forestry ..........................................................0001366868Forest Legacy ............................................................................0002

224256258Total direct obligations ..................................................................0799565653State and Private Forestry (Reimbursable) ................................0801



112137111Unobligated balance brought forward, Oct 1 .........................1000..................................1Unobligated balance transfer from other acct [072–1037] ....1011..................................22Recoveries of prior year unpaid obligations ...........................1021



.................6262Appropriation (Legacy) ......................................................1101




STATE AND PRIVATE FORESTRY—Continued






















Memorandum (non-add) entries:33.................Unexpired unavailable balance, SOY: Appropriations ................509633.................Unexpired unavailable balance, EOY: Appropriations ................5098

The 2018 Budget requests $118,010,000 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 protect 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 Federal and cooperative lands tomaintain healthy, productive ecosystems by preventing, detecting, andsuppressing damaging native and invasive insect infestations and tree dis-eases across all land ownership jurisdictions, and invasive plants on cooper-ative lands. Based on a science-based forest health risk map, the 2018Budget allocates funding to address national priorities and reduce risk forlandscape damage in the most effective and efficient manner. The agencywill document changes in insect, disease, and invasive plant geographicrange, population dynamics of host preferences of pests, and other changesin pest activity and will explore gene conservation efforts. Funding of thisprogram is a critical part of the Forest Service's capacity to continue to re-

duce the risk of catastrophic wildfires, improve water quality and quantityand increase carbon sequestration.

Cooperative Forestry.—Funds the Forest Stewardship Program, whichprovides professional forestry assistance to landowners to encourage soundenvironmental management of non-industrial private forest lands. Cooper-ative forestry activities help maintain the integrity of our Nation's valuableforested landscapes and supports the Federal interest in obtaining and pre-serving for the public an array of social, economic, and environmental be-nefits from privately owned forests. The Forest Service will track how co-operative funds are targeted to priority areas and themes identified in StateForest Action Plans.

International Forestry.—Assists agencies whose missions are centrallyfocused on international issues with natural resource conservation.





474747Total personnel compensation ...........................................11.9161616Civilian personnel benefits ........................................................12.1444Travel and transportation of persons .........................................21.0222Rental payments to GSA ............................................................23.1111Rental payments to others ........................................................23.2222Communications, utilities, and miscellaneous charges ............23.3

181818Other services from non-Federal sources ..................................25.2121212Other goods and services from Federal sources ........................25.3222Supplies and materials .............................................................26.0222Equipment .................................................................................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), $2,225,000, to remain available until expended.




Obligations by program activity:223Management of national forest lands for subsistence uses .......0001





–1–2–3Outlays (gross) ......................................................................3020








The 2018 Budget requests $2,225,000 for Management of National ForestLands for Subsistence Uses . Funding under this program primarily supportsfisheries and wildlife habitat management activities for population assess-ments and forecasts and the enforcement of harvest laws and regulationsto ensure that the subsistence needs of qualified rural Alaskans are metunder the Alaska National Interest Lands Conservation Act (Public Law96–487).



Direct obligations:111Personnel compensation: Full-time permanent .........................11.1111Civilian personnel benefits ........................................................12.1111Other services from non-Federal sources ..................................25.2

333Direct obligations ..................................................................99.0–1–1.................Adjustment for rounding ...........................................................99.5


Employment Summary



✦

WILDLAND FIRE MANAGEMENT


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, and for State and volunteer fire assist-ance, $2,495,038,000, to remain available until expended: Provided, That suchfunds including unobligated balances under this heading, are available for repaymentof advances from other appropriations accounts previously transferred for suchpurposes: Provided further, That any unobligated funds appropriated in a previousfiscal year for hazardous fuels management may be transferred to the "NationalForest System" account: Provided further, That such funds shall be available toreimburse State and other cooperating entities for services provided in response towildfire and other emergencies or disasters to the extent such reimbursements bythe Forest Service for non-fire emergencies are fully repaid by the responsibleemergency management agency: Provided further, That of the funds provided,$17,600,000 is for research activities and to make competitive research grantspursuant to the Forest and Rangeland Renewable Resources Research Act, (16U.S.C. 1641 et seq.), $69,400,000 is for State fire assistance, and $11,600,000 isfor volunteer fire assistance under section 10 of the Cooperative Forestry AssistanceAct of 1978 (16 U.S.C. 2106): Provided further, That amounts in this paragraphmay be transferred to the "Forest and Rangeland Research" account to fund forestand rangeland research: Provided further, That the costs of implementing any co-operative agreement between the Federal Government and any non-Federal entitymay be shared, as mutually agreed on by the affected parties: Provided further,That funds made available to implement the Community Forest Restoration Act,Public Law 106–393, title VI, shall be available for use on non-Federal lands inaccordance with authorities made available to the Forest Service under the "Stateand Private Forestry" appropriation: Provided further, That the Secretary of theInterior and the Secretary of Agriculture may authorize the transfer of funds appro-priated for wildland fire management, in an aggregate amount not to exceed

$50,000,000, between the Departments when such transfers would facilitate andexpedite wildland fire management programs and projects: Provided further, Thatfunds designated for wildfire suppression, shall be assessed for cost pools on thesame basis as such assessments are calculated against other agency programs.




Obligations by program activity:2,7932,4723,469Wildland fire management ........................................................0001

535354Wildland Fire Management (Reimbursable) ..............................0801





Appropriations, discretionary:1,4381,5733,086Appropriation - Preparedness and Other Operations .........11001,057809.................Appropriation - Suppression .............................................1100

..................................–3Appropriations transferred to other accts [014–1125] .......1120–18.................–43Appropriations transferred to other accts [012–1104] .......1120













8971,1191,228Unpaid obligations, brought forward, Oct 1 ..........................30002,8462,5253,523New obligations, unexpired accounts ....................................3010


1,0528971,119Unpaid obligations, end of year .................................................3050Uncollected payments:



7911,0131,095Obligated balance, start of year ............................................31009467911,013Obligated balance, end of year ..............................................3200









2,4772,3823,228Budget authority, net (discretionary) .........................................40702,5162,5723,298Outlays, net (discretionary) .......................................................40802,4772,3823,228Budget authority, net (total) ..........................................................4180


WILDLAND FIRE MANAGEMENT—Continued




The 2018 Budget requests $2,495,038,000 for Wildland Fire Management(WFM) for Forest Service fire preparedness, fire suppression operations,fire research and development, and cooperative fire programs on NationalForest System lands, adjacent State and private lands, and other lands underfire protection agreements.

Preparedness.—To ensure agency capability to protect life, property,and natural resources while assuring an appropriate, risk informed, andeffective initial attack response to wildfires that is consistent with land andresource management objectives. Firefighter and public safety are theprimary considerations for all 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 Cohesive Strategy. Key components of the wildlandfire response mission delivery are readiness capability and program leader-ship necessary to ensure appropriate, risk informed, and effective operations.Preparedness also supports other vital elements of a comprehensive wildlandfire management program including modernization of the large airtankerfleet, planning, prevention, development of information technology anddecision support systems, training and education, development and advance-ment of firefighting technology, and organizational learning through pro-gram analysis and review. Starting in FY 2018, Forest Service firefighterswill use the same business rule as the Department of the Interior and chargeall base hours (the first eight hours of each day) to Preparedness and, whenfighting fires, and charge any hours over eight per day to Suppression.

Through this program the Forest Service also assists other Federal agen-cies and States with planning assistance, sharing joint equipment use con-tracts, 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, implementation of optimized dispatching analysis,and streamlining of information technology investments.

Hazardous Fuels.— The hazardous fuels program has been moved fromthe Wildland Fire Management request to the National Forest System re-quest. Most hazardous fuels work takes place on National Forest Systemlands, and the Forest Service will be able to administer this program moreefficiently and effectively as a part of the National Forest System.

Suppression.—Risk-informed extended attack suppression operations atwildland fires on or threatening NFS lands, other Federal lands, and 20million acres of non-Federal lands under fire protection agreements. The2018 Budget proposes funding 100 percent of the 10-year average of sup-pression expenditures, which is $1,056,818,000 .

Wildfires continue to be larger and more difficult to suppress due to theeffects of persistent drought, hazardous fuels conditions, and the increasedsize and complexity of housing and commercial development adjacent tothe wildland-urban interface (WUI). The Forest Service recognizes thecosts of WUI suppression activities and will continue to aggressively pursuemanagement improvements, including:

— using risk-informed, performance-based suppression strategies,— clarifying roles and responsibilities in the WUI,— using appropriate cost-share agreements, and— deploying decision support tools.

Development of necessary governance and risk management protocolsthat will guide program management and incident response with the applic-ation of resources to reduce unnecessary risk to firefighter safety in theshort-term and to the long-term resiliency of fire-adapted ecosystems willcontinue to be a focus. The Forest Service will also continue efforts to allow

fire to return to the landscape when these fires will improve the health ofthe forest and when risks to safety and communities make it appropriateto do so.

Forest Service Suppression Obligations 2007–2016

(dollars in thousands)Rolling10-yearAverage

AdjustedObligations[2016 =1.00]

Net NominalSuppressionObligations

Year

$1,101,011$941,3812007 .........................................................................................................1,132,3191,101,0832008 .........................................................................................................590,218523,3832009 .........................................................................................................458,060412,3232010 .........................................................................................................949,745873,4422011 .........................................................................................................

1,324,1741,243,7402012 .........................................................................................................1,196,2311,140,1162013 .........................................................................................................997,327964,3392014 .........................................................................................................

1,471,9541,443,3692015 .........................................................................................................1,056,8181,347,1361,347,1362016 .........................................................................................................

Note: The 10-year average has been rebaselined for 2018. That is, perthe Preparedness narrative above, Base 8 expenditures are proposed tobe accounted for in Preparedness and not in Suppression. Based on thischange and adherence to established business rules, actual obligations for2007–2016 have been adjusted and the Base 8 expenditures over the past10 years were removed from the 10-year average suppression expenditurecalculation.

Fire Operations, Other.—The Other Fire Operations programs includeNational Fire Plan Research and Development, State Fire Assistance, andVolunteer Fire Assistance. Funding will focus on research and technologytransfer activities, and providing vital support to assist local communitiesand State foresters to develop firefighting capacity to provide critical pre-paredness and response actions for communities at risk.

State and Volunteer Fire Assistance programs include funding to enhancethe capacity of States to increase the fire adaptability of communities byproviding funding and technical assistance to: (1) increase their initial attackcapabilities, and (2) purchase and maintain firefighting equipment. Fundingalso supports training, planning, and fire prevention, and education pro-grams.





250271271Other personnel compensation ..............................................11.5494949Special personal services payments ......................................11.8

878963963Total personnel compensation ...........................................11.9300324324Civilian personnel benefits ........................................................12.1343434Benefits for former personnel ....................................................13.0929292Travel and transportation of persons .........................................21.0131313Transportation of things ............................................................22.0151515Rental payments to GSA ............................................................23.1323232Rental payments to others ........................................................23.2464646Communications, utilities, and miscellaneous charges ............23.3111Printing and reproduction .........................................................24.0666Advisory and assistance services ..............................................25.1

8402101,011Other services from non-Federal sources ..................................25.2173173172Other goods and services from Federal sources ........................25.3

111Operation and maintenance of facilities ...................................25.4111Research and development contracts .......................................25.5666Operation and maintenance of equipment ................................25.7

124124124Supplies and materials .............................................................26.0202020Equipment .................................................................................31.0111Land and structures ..................................................................32.0

209409606Grants, subsidies, and contributions ........................................41.0111Insurance claims and indemnities ............................................42.0




Employment Summary



✦

FLAME WILDFIRE SUPPRESSION RESERVE FUND






Appropriations, discretionary:.................821823Appropriation [PL 114–113] ..............................................1100..................................–675Appropriations transferred to other accts [012–1115] .......1120

.................821148Appropriation, discretionary (total) .......................................1160969969148Total budgetary resources available ..............................................1930



.................821148Budget authority, gross .........................................................4000



In 2010 through 2016, amounts in the FLAME Fund included the portionof the ten-year average of suppression obligations, adjusted for inflation,intended to support the most severe, complex, and threatening fires. TheSecretary may permit transfers from this account to cover these extremefire events. The Secretary may also transfer funds in the event the ForestService has exhausted its suppression resources due to an active fire season.In 2018, the Budget proposes to discontinue funding requests in the FLAMEaccount. Funding for all wildfire suppression activities is requested in theWildland Fire Management account. The FLAME account will be closedout when the current balance is drawn down.

✦

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 until expended, ofwhich not to exceed 6 percent shall be available for administrative expenses associ-ated with on-the-ground range rehabilitation, protection, and improvements.





Current law:333Receipts, Cooperative Range Improvements .........................1130


Current law:–2–3–3Range Betterment Fund ........................................................2101

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



Obligations by program activity:233Range betterment fund .............................................................0001




Appropriations, discretionary:233Appropriation (special or trust fund) .................................1101344Total budgetary resources available ..............................................1930




–3–2–3Outlays (gross) ......................................................................3020







The 2018 Budget requests $2,065,000 for the Range Betterment Fundand 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 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,such as fencing for proper livestock management and vegetation manage-ment for restoring rangelands to healthy conditions.



222Direct obligations: Supplies and materials ....................................26.0.................11Adjustment for rounding ...........................................................99.5


Employment Summary



✦


STEWARDSHIP CONTRACTING PRODUCT SALES



Obligations by program activity:131313Stewardship contracting ...........................................................0001





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















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

For expenses necessary to carry out the provisions of chapter 2003 of title 54,United States Code, including administrative expenses, and for acquisition of land

or waters, or interest therein, in accordance with statutory authority applicable tothe Forest Service, $7,000,000, to be derived from the Land and Water ConservationFund and to remain available until expended.

ACQUISITION OF LANDS FOR NATIONAL FORESTS SPECIAL ACTS

For acquisition of lands within the exterior boundaries of the Cache, Uinta, 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, $850,000, 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 until expended (16 U.S.C. 516–617a,555a; Public Law 96–586; Public Law 76–589, 76–591; and Public Law 78–310).





Current law:

11.................Deposits, Acquisitions of Lands for National Forests, Special

Acts ...................................................................................1130

2917Land 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


41117Total receipts .............................................................................1999


Current law:–1–1.................Land Acquisition ...................................................................2101–2–9–17Land Acquisition ...................................................................2101






Obligations by program activity:565651Land Acquisition (12X5004 LALW) Discretionary .......................0001

8812Land Facilities Enchancement (12X5216 EXSC/SL)

Mandatory .............................................................................0002

11.................Land Acquisition - Special Acts (12Y5208) Discretionary ..........0003





Appropriations, discretionary:76364Appropriation: Land Acquisition (12X5004) ......................110111.................Appropriation: Special Acts (12Y5208) .............................1101



2917Appropriation (12X5216 EXSC EXSL) .................................1201..................................13Appropriations transferred from other acct [012–1115] ....1221



2829Appropriations, mandatory (total) .........................................1260




106558Unexpired unobligated balance, end of year ..........................1941Special and non-revolving trust funds:

..................................1Unobligated balance expiring ................................................1951221Expired unobligated balance, start of year ............................1952221Expired unobligated balance, end of year ..............................1953











.................23Outlays from new mandatory authority .............................41008235Outlays from mandatory balances ....................................4101


The 2018 Budget requests $8,042,000 for the Land Acquisition accounts.This heading consolidates land acquisition authorities for acquisition oflands, waters, or interest therein, as authorized by law. The Budget willprovide funding for land acquisition through the Land and Water Conser-vation Fund to manage the acquisition of high-priority forests and grasslandsusing prior-year funds.

Land Acquisition.—Lands and other interests are acquired adjacent toareas of the National Forest System for such purposes as outdoor recreation,wilderness management, wildlife habitat conservation, watershed protectionand enhancement, resource management, and land consolidation.

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; and the Angeles, Cleveland,San Bernardino, and Sequoia, in California. Appropriations are made fromreceipts 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.

Land Facilities Enhancement Fund.—This fund includes the Conveyanceof Administrative Sites Program and the Sites Specific Lands Acts Program.These programs enable specific national forests and grasslands to conveyland or facilities and use the proceeds to acquire, construct, or improveland and facilities within the same national forest or State. They also providefor the realignment of the agency's facility portfolio by providing an incent-ive for local managers to liquidate obsolete or underutilized assets and re-invest in assets that best support the agency's mission (U.S.C. 590d note).



Direct obligations:444Personnel compensation: Full-time permanent .........................11.1

111Civilian personnel benefits ........................................................12.1333Other services from non-Federal sources ..................................25.2

222220Other goods and services from Federal sources ........................25.3343434Land and structures ..................................................................32.0

646462Direct obligations ..................................................................99.0111Adjustment for rounding ...........................................................99.5


Employment Summary


525252Direct civilian full-time equivalent employment ............................1001525252Allocation account civilian full-time equivalent employment ........3001

✦

FOREST SERVICE PERMANENT APPROPRIATIONS



182189143Balance, start of year ....................................................................0100..................................150Unavailable balance adjustment ...................................................0198

182189293Balance, start of year ................................................................0199Receipts:

Current law:..................................–51National Forests Fund ...........................................................1130

5656189National Forests Fund, Payments to States ...........................113022.................Timber Roads, Purchaser Elections .......................................1130

1717.................National Forests Fund, Roads and Trails for States ...............1130292636Timber Salvage Sales ............................................................1130888Deposits, Brush Disposal ......................................................1130

1099Rents and Charges for Quarters, Forest Service ....................1130777Timber Sales Pipeline Restoration Fund ................................1130

696886Recreational Fee Demonstration Program, Forest Service ......1130111Midewin 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 .........1130141416Funds Retained, Stewardship Contracting Product Sales .......11302121–27National Grasslands ..............................................................1130112011Miscellaneous Special Funds, Forest Service .........................1130


252256292Total receipts .............................................................................1999


Current law:–14–14–16Stewardship Contracting Product Sales ................................2101

–227–243–381Forest Service Permanent Appropriations ..............................2101.................–1–1Stewardship Contracting Product Sales ................................2103.................–13–10Forest Service Permanent Appropriations ..............................2103

111Stewardship Contracting Product Sales ................................2132.................713Forest Service Permanent Appropriations ..............................2132


–240–263–394Total appropriations ..................................................................2999..................................–2Rounding adjustment ....................................................................5098




Obligations by program activity:92012Brush disposal (5206) ...............................................................0001

868667Restoration of Forest Lands and Improvements (5215) .............0002

646470Recreation fee demonstration / enhancement programs

(5268) ...................................................................................0003

111Timber Roads - Purchaser Election program (5202) ..................0004304527Timber Salvage Sale program (5204) ........................................0005

8128Timber Pipeline Restoration fund (includes forest botanical

products) (5264) ...................................................................0006

555Operation 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

5050114Secure Rural Schools - National Forest Fund (5201) .................0013..................................145Secure Rural Schools - transfers from Treasury (1117) .............0014


FOREST SERVICE PERMANENT APPROPRIATIONS—Continued



666Payments to Minnesota (5213) ..................................................0015212127Payments to Counties - National Grasslands (5896) .................0016

286316488Total direct obligations ..................................................................0799445Admin rights of way - Reimbursable program (5361 - URMJ) ....0801



636725340Unobligated balance brought forward, Oct 1 .........................1000..................................2Unobligated balance transfer from other acct [014–1618] ....1011..................................3Recoveries of prior year unpaid obligations ...........................1021


Appropriations, discretionary:–15–16.................Appropriations permanently reduced ................................1130

Appropriations, mandatory:..................................145Appropriation ....................................................................1200

227243381Appropriation (special or trust fund) .................................1201.................1310Appropriation (previously unavailable) .............................1203..................................342Appropriations transferred from other acct [012–1115] ....1221

.................–6.................

Appropriations and/or unobligated balance ofappropriations permanently reduced [12x5896 nopopup] ..........................................................................

1230

–1..................................

Appropriations and/or unobligated balance ofappropriations permanently reduced [CHIMP, nopop-up] .........................................................................

1230




448Collected ...........................................................................1800215231873Budget authority (total) .............................................................19008519561,218Total budgetary resources available ..............................................1930













Offsetting collections (collected) from:–4–4–8Non-Federal sources .........................................................4123211227865Budget authority, net (total) ..........................................................4180239247451Outlays, net (total) ........................................................................4190

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, 2018.

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 to the United States of eco-system restoration, prairie improvements, and administrative activitiesdirectly related to those activities at the Midewin National TallgrassPrairie.

Midewin National Tallgrass Prairie Restoration Fund.—Receipts fromgrazing fees, agricultural leases for row crops, sales of surplus equipment,and the salvage value proceeds from the sale of any facilities and improve-ments can be used to cover the cost of restoration of ecosystems; construc-tion of a visitor center, recreational facilities, trails, and administrative of-fice; prairie improvement; 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 payments,salaries, and expenses (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 Payments to States Act of 1908, as amended (16 U.S.C.500) which requires, with a few exceptions, that 25 percent of all moniesreceived from the national forests during a fiscal year from timber, grazing,special-use permits, power and mineral leases, and admission and user feesbe deposited into the National Forest Fund and be paid to the States forpublic schools and public roads in the counties in which the national forestsare 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).





616161Total personnel compensation ...........................................11.9202020Civilian personnel benefits ........................................................12.1222Benefits for former personnel ....................................................13.0222Travel and transportation of persons .........................................21.0111Rental payments to others ........................................................23.2222Communications, utilities, and miscellaneous charges ............23.3111Printing and reproduction .........................................................24.0

596858Other services from non-Federal sources ..................................25.27157Other goods and services from Federal sources ........................25.3111Operation and maintenance of equipment ................................25.7

10149Supplies and materials .............................................................26.0..................................2Equipment .................................................................................31.0




Employment Summary



✦

WORKING CAPITAL FUND



Obligations by program activity:264264264Working capital fund .................................................................0801




Spending authority from offsetting collections, discretionary:250248277Collected ...........................................................................1700401415431Total budgetary resources available ..............................................1930













–250–248–277Offsets against gross budget authority and outlays (total) ....4040.................26–23Outlays, net (discretionary) .......................................................4080...................................................Budget authority, net (total) ..........................................................4180.................26–23Outlays, net (total) ........................................................................4190

The Working Capital Fund is a self-sustaining revolving fund thatprovides services to national forests, to research experiment stations, toother Federal agencies when necessary, to State and private agencies asprovided by law, and to persons who cooperate with the Forest Service infire control and other authorized programs. Forestry-related supply andsupport services include:

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 also includean increment which, when added to depreciation cost recovery and the re-sidual value of equipment, provides sufficient funds to replace the equip-ment. The Budget includes Forest Service implementation, in conjunctionwith the General Services Administration, of a vehicle allocation method-ology that analyzes fleet vehicle effectiveness, life cycle costs, vehiclepooling, procurement practices, and reduction of operating costs.


WORKING CAPITAL FUND—Continued

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 servicesand 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 that manufacture andsupply special signs for the national forests for use in regulating traffic andas information to the public and other users of the national forests. Signsare sold to 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.





404040Total personnel compensation ...........................................11.9141414Civilian personnel benefits ........................................................12.1111Benefits for former personnel ....................................................13.0444Travel and transportation of persons .........................................21.0111Transportation of things ............................................................22.0111Rental payments to others ........................................................23.2111Printing and reproduction .........................................................24.0


373737Operation and maintenance of equipment ................................25.7373737Supplies and materials .............................................................26.0919191Equipment .................................................................................31.0


Employment Summary



✦

Trust Funds

FOREST SERVICE TRUST FUNDS




Current law:

303030Transfers from General Fund of Amounts Equal to Certain

Customs Duties, Reforestation Trust Fund ........................1110

7069274Forest Service Cooperative Fund ............................................1130


10099304Total receipts .............................................................................1999


Current law:–84–84–304Forest Service Trust Funds .....................................................2101–3–8–6Forest Service Trust Funds .....................................................2103

.................55Forest Service Trust Funds .....................................................2132






Obligations by program activity:717558Cooperative work trust fund (8028 - CWKV/K2) .........................0001151515Cooperative work advance payments (8028 - CWF2) .................0002273232Reforestation trust fund (8046 - RTRT) .....................................0003

113122105Total direct obligations ..................................................................0799292929Reimbursable program-coop work other (8028 - CWFS) ............0801





Appropriations, mandatory:8484304Appropriation (special or trust fund) .................................1201386Appropriation (previously unavailable) .............................1203




151520Collected (CWFS) ...............................................................1800..................................–2Change in uncollected payments, Federal sources ............1801














Offsetting collections (collected) from:–15–15–20Non-Federal sources .........................................................4123



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 specified


work in forest investigations, protection, and improvement of the NationalForest System, including protection, reforestation, and administration ofprivate lands adjacent to National Forests (7 U.S.C. 2269; 16 U.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).





363636Total personnel compensation ...........................................11.9131313Civilian personnel benefits ........................................................12.1222Travel and transportation of persons .........................................21.0111Rental payments to GSA ............................................................23.1111Rental payments to others ........................................................23.2111Communications, utilities, and miscellaneous charges ............23.3

374232Other services from non-Federal sources ..................................25.210118Other goods and services from Federal sources ........................25.38117Supplies and materials .............................................................26.0111Equipment .................................................................................31.0222Grants, subsidies, and contributions ........................................41.0

112121104Direct obligations ..................................................................99.0292929Reimbursable obligations .....................................................99.0111Adjustment for rounding ...........................................................99.5


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, with

proceeds 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.

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 limitthe 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 regard

173DEPARTMENT OF AGRICULTURE ADMINISTRATIVE PROVISIONS, FOREST SERVICE

to 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)).

Funds available to the Forest Service, not to exceed $65,000,000, shall be assessedfor the purpose of performing fire, administrative and other facilities maintenanceand decommissioning. Such assessments shall occur using a square foot rate chargedon the same basis the agency uses to assess programs for payment of rent, utilities,and other support services.

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.

✦

Federal Funds

MARKETING ORDERS AND AGREEMENTS FEES

The Administration proposes establishing an Agricultural MarketingService (AMS) user fee to cover the full costs of the agency's oversight ofMarketing Orders and Agreements. Marketing Orders and Agreements areinitiated by industry to help provide stable markets, and are tailored to thespecific industry's needs. For example, milk marketing orders help assurea minimum price for dairy products, while Marketing Orders and Agree-ments for fruits, vegetables and other specialty crops help control supplyand ensure that produce on the market maintains high quality standards.AMS is authorized only to provide oversight of Marketing Orders andAgreements. AMS's oversight responsibilities range from reviewing applic-ations for new orders and holding hearings on proposals to publishingFederal Register notices establishing new agreements. The industries thatsubstantially benefit from Marketing Orders and Agreements should payfor the oversight of these programs. The proposal would result in approx-imately $20 million in receipts.

✦

FOOD SAFETY INSPECTION FEES

The Administration proposes establishing a Food Safety and InspectionService (FSIS) user fee to cover the costs of all domestic inspection activityand import re-inspection and most of the central operations costs for Fed-eral, State, and International inspection programs for meat, poultry, andeggs. FSIS inspections benefit the meat, poultry, and egg industries. FSISpersonnel are continuously present for all egg processing and domesticslaughter operations, inspect each livestock and poultry carcass, and inspectoperations at meat and poultry processing establishments at least once pershift. The inspections cover microbiological and chemical testing as wellas cleanliness and cosmetic product defects. The "inspected by USDA"stamp on meat and poultry labels increases consumer confidence in theproduct which may increase sales. The user fee would not cover federalfunctions such as investigation, enforcement, risk analysis, and emergency

response. We estimate this fee would increase the cost of meat, poultry,and eggs for consumers by less than one cent per pound. The proposalwould result in approximately $660 million in receipts starting in fiscalyear 2019.

✦

GRAIN INSPECTION, PACKERS, AND STOCKYARDS FEES

The Administration proposes establishing two Grain Inspection, Packersand Stockyards Administration (GIPSA) user fees. The first would recoverthe costs for the development, review, and maintenance of official U.S.grain standards. Entities that receive marketing benefits from grain standardsshould pay for the costs of standardization. The second would recover thecosts of GIPSA's Packers and Stockyards Program (P&SP) through a li-censing fee. The P&SP benefits the livestock, meat, and poultry industriesby promoting fair business practices and competitive market environments.The proposal would result in approximately $30 million in receipts ($6million and $24 million, respectively).

✦

ANIMAL AND PLANT HEALTH INSPECTION FEES

The Administration proposes establishing three new Animal and PlantHealth Inspection Service (APHIS) user fees to offset costs related to 1)enforcement of the Animal Welfare Act, 2) regulation of biotechnologyderived products, and 3) regulation of veterinary biologics products. Thefees would result in approximately $20 million in receipts including $9million for animal care, $7 million for veterinary biologics, and $4 millionfor Biotechnology Regulatory Services. 1) Under the authority of the An-imal Welfare Act (AWA), APHIS conducts activities designed to ensurethe humane care and treatment of certain animals bred for commercial sale,used in research, transported commercially or exhibited to the public. Theseactivities include licensing, registering, and inspecting certain establish-ments to ensure compliance with the AWA. APHIS would charge entitiesfor the costs associated with licensing and registration. 2) Under the author-ity of the Plant Protection Act, APHIS regulates the introduction—meaningthe importation, interstate movement, and field-testing—of organisms de-rived through biotechnology that may pose a plant pest risk. After carefulreview, APHIS may issue a permit or notification to allow entities to con-duct these specific activities, and conduct the necessary oversight to ensurecompliance. APHIS would charge an application fee from entities seekingauthorization for the introduction of biotechnology derived products. 3)Under the authority of the Virus-Serum-Toxin Act, APHIS regulatesveterinary biologics (vaccines, bacterins, antisera, diagnostic kits, andother products of biological origin) to ensure that those products producedin or imported into the United States are not "worthless, contaminated,dangerous, or harmful." APHIS' licensing activities allow manufacturersto market their products. APHIS would charge a licensing fee to manufac-turers of veterinary biologics.

✦

GENERAL FUND RECEIPT ACCOUNTS(in millions of dollars)


Offsetting receipts from the public:636393National Grasslands .......................................................012–181100759219National Forest Fund ......................................................012–22210020..................................Marketing Orders and Agreements Fees .........................012–24930030..................................Grain Inspection, Packers, and Stockyards Fees .............012–24950020..................................Animal and Plant Health Inspection Fees .......................012–249600

.................410Biorefinery Assistance, Downward Reestimates of

Subsidies ...................................................................012–267530

463028Agriculture Credit Insurance, Negative Subsidies ..........012–270110

.................298165Agriculture Credit Insurance, Downward Reestimates of

Subsidies ...................................................................012–270130

223187158Rural Electrification and Telephone Loans, Negative

Subsidies ...................................................................012–270210

.................723650Rural Electrification and Telephone Loans, Downward

Reestimates of Subsidies ...........................................012–270230

THE BUDGET FOR FISCAL YEAR 2018174 ADMINISTRATIVE PROVISIONS, FOREST SERVICE—Continued

232Rural Water and Waste Disposal, Negative Subsidies .....012–270310

.................104175Rural Water and Waste Disposal, Downward Reestimates

of Subsidies ...............................................................012–270330

10515092Rural Community Facility, Negative Subsidies ...............012–270510

.................5713Rural Community Facility, Downward Reestimates of

Subsidies ...................................................................012–270530

14714034Rural Housing Insurance, Negative Subsidies ................012–270610

.................7,064117Rural Housing Insurance, Downward Reestimates of

Subsidies ...................................................................012–270630

.................57121Rural Business and Industry, Downward Reestimates of

Subsidies ...................................................................012–270730

.................1413P.L. 480 Loan Program, Downward Reestimates of

Subsidies ...................................................................012–270830

.................102Rural Development Loans, Downward Reestimates of

Subsidies ...................................................................012–271030

.................21Rural Telephone Bank Loans, Downward Reestimates of

Subsidies ...................................................................012–271130

.................14Economic Development Loans, Downward Reestimates of

Subsidies ...................................................................012–271330

.................47129Downward Reestimates, Distance Learning, Telemedicine,

and Broadband Program ............................................012–274630

444Negative Subsidies, Farm Storage Facility Loans ...........012–275610

.................95Farm Storage Facility Loans, Downward Reestimate of

Subsidies ...................................................................012–275630

.................1625Commodity Credit Corporation Export Guarantee

Financing, Downward Reestimate of Subsidies ..........012–275730

.................65Multifamily Housing Revitalization Fund, Downward

Reestimates of Subsidies ...........................................012–277930

.................265Rural Energy for America Program, Downward Reestimates

of Subsidies ...............................................................012–278630

293811Commodity Credit Corporation Export Guarantee

Financing, Negative Subsidies ...................................012–279310

5513All Other General Fund Proprietary Receipts Including

Budget Clearing Accounts ..........................................012–322000

7699,1501,894General Fund Offsetting receipts from the public .....................................

Intragovernmental payments:

..................................27Undistributed Intragovernmental Payments and

Receivables from Cancelled Accounts ........................012–388500

..................................27General Fund Intragovernmental payments ..............................................

✦

TITLE VII—GENERAL PROVISIONS

GENERAL PROVISIONS

(INCLUDINGCANCELLATIONS AND TRANSFERS OF FUNDS)SEC. 701. Within the unit limit of cost fixed by law, appropriations and authoriza-

tions made for the Department of Agriculture for the current fiscal year under thisAct shall be available for the purchase, in addition to those specifically providedfor, of not to exceed 71 passenger motor vehicles of which 68 shall be for replacementonly, and for the hire of such vehicles.

SEC. 702. Notwithstanding sections 1535(b) or 1535(d) of Title 31, United StatesCode, 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 2018 may be retainedin the Fund for fiscal year 2018, 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. 703. No part of any appropriation contained in this Act shall remain availablefor obligation beyond the current fiscal year unless expressly so provided herein.

SEC. 704. 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. 705. 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. 706. 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. 707. 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. 708. 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. 709. 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. 710. 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 30 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. 711. None of the funds appropriated or otherwise made available by this orany other Act shall be used to pay the salaries and expenses of personnel to carryout the following:

(1) The Environmental Quality Incentives Program as authorized by sections1240–1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa-3839aa-8) in

175DEPARTMENT OF AGRICULTURE TITLE VII—GENERAL PROVISIONS

excess of $1,425,500,000: Provided, That this limitation shall apply only to fundsprovided by section 1241(a)(5)(E) of the Food Security Act of 1985 (16 U.S.C.3841(a)(5)(E)): Provided further, That of the funds provided by such section1241(a)(5)(E), $209,000,000 are hereby permanently cancelled; and

(2) The Biomass Crop Assistance Program authorized by section 9011 of theFarm Security and Rural Investment Act of 2002 (7 U.S.C. 8111) in excess of$3,000,000 in new obligational authority.

SEC. 712. None of the funds appropriated or otherwise made available by this orany other Act shall be used to pay the salaries and expenses of personnel to carryout a program under subsection (b)(2)(A)(x) of section 14222 of Public Law 110–246in excess of $888,529,000, as follows: Child Nutrition Programs Entitlement Com-modities—$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 none of the funds made available in this Actor any other Act shall be used for salaries and expenses to carry out in this fiscalyear section 19(i)(1)(E) of the Richard B. Russell National School Lunch Act, asamended, except in an amount that excludes the transfer of $125,000,000 of thefunds to be transferred under subsection (c) of section 14222 of Public Law 110–246,until October 1, 2018: Provided further, That $125,000,000 made available onOctober 1, 2018, to carry out section 19(i)(1)(E) of the Richard B. Russell NationalSchool Lunch Act, as amended, shall be excluded from the limitation described insubsection (b)(2)(A)(x) of section 14222 of Public Law 110–246: Provided further,That none of the funds appropriated or otherwise made available by this or anyother Act shall be used to pay the salaries or expenses of any employee of the De-partment of Agriculture or officer of the Commodity Credit Corporation to carryout clause 3 of section 32 of the Agricultural Adjustment Act of 1935 (Public Law74–320, 7 U.S.C. 612c, as amended), or for any surplus removal activities or pricesupport activities under section 5 of the Commodity Credit Corporation CharterAct: Provided further, That the available unobligated balances under (b)(2)(A)(ix)of section 14222 of Public Law 110–246 in excess of the limitation set forth in thissection, except for the amounts to be transferred pursuant to the first proviso, arehereby permanently cancelled.

SEC. 713. 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. 714. 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. 715. (a) For the period beginning on the date of enactment of this Act throughschool year 2016–2017, with respect to the school lunch program established underthe Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.) or theschool breakfast program established under the Child Nutrition Act of 1966 (42U.S.C. 1771 et seq.) and final regulations published by the Department of Agriculturein the Federal Register on January 26, 2012 (77 Fed. Reg. 4088 et seq.), the Secret-ary shall allow States to grant an exemption from the whole grain requirements thattook effect on or after July 1, 2014, and the States shall establish a process forevaluating and responding, in a reasonable amount of time, to requests for an ex-emption: Provided, That school food authorities demonstrate hardship, includingfinancial hardship, in procuring specific whole grain products which are acceptableto the students and compliant with the whole grain-rich requirements: Providedfurther, That school food authorities shall comply with the applicable grain compon-ent or standard with respect to the school lunch or school breakfast program thatwas in effect prior to July 1, 2014.

(b) None of the funds appropriated or otherwise made available by this or anyother Act shall be used to pay the salaries and expenses of personnel to implementany regulations under the Richard B. Russell National School Lunch Act (42 U.S.C.1751 et seq.), the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), the Healthy,Hunger-Free Kids Act of 2010 (Public Law 111–296), or any other law that wouldrequire a reduction in the quantity of sodium contained in federally reimbursedmeals, foods, and snacks sold in schools below Target 1 (as described in section220.8(f)(3) of title 7, Code of Federal Regulations (or successor regulations)) untilthe latest scientific research establishes the reduction is beneficial for children.

SEC. 716. In carrying out subsection (h) of section 502 of the Housing Act of 1949(42 U.S.C. 1472), the Secretary of Agriculture shall have the same authority withrespect to loans guaranteed under such section and eligible lenders for such loansas the Secretary has under subsections (h) and (j) of section 538 of such Act (42

U.S.C. 1490p-2) with respect to loans guaranteed under such section 538 and eligiblelenders for such loans.

SEC. 717. 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. 718. 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. 719. The Secretary may charge a fee for lenders to access Department loanguarantee systems in connection with such lenders' participation in loan guaranteeprograms of the Rural Housing Service: Provided, That the funds collected fromsuch fees shall be made available to the Secretary without further appropriationand such funds shall be deposited into the Rural Development Salaries and Ex-pensesaccount and shall remain available until expended for obligation and expendit-ure by the Secretary for administrative expenses of the Rural Housing Service LoanGuarantee Program in addition to other available funds: Provided further, Thatsuch fees collected shall not exceed $50 per loan.

SEC. 720. 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. 721. Except as otherwise specifically provided by law, unobligated balancesfrom appropriations made available for salaries and expenses in this Act for theFarm Service Agency and the Rural Development mission area shall remain availablethrough September 30, 2019, for information technology expenses.

SEC. 722. Of the unobligated balances available in the ''Agricultural ResearchService, Buildings and Facilities'' account, $211,697,000 are hereby permanentlycancelled.

SEC. 723. Of the unobligated balances of amounts made available in fiscal year2017 for the supplemental nutrition program as authorized by section 17 of theChild Nutrition Act of 1966 (42 U.S.C. 1786), $1,000,000,000 are hereby permanentlycancelled.

SEC. 724. Of the unobligated balances identified by the Treasury AppropriationFund Symbols 12X1902, 12X1980, 12X2006, 12X2002, and 12X2081, $108,000,000are hereby permanently cancelled: Provided, That no amounts may be cancelledfrom amounts that were designated by the Congress as an emergency or disasterrelief requirement pursuant to the Concurrent Resolution on the Budget or the Bal-anced Budget and Emergency Deficit Control Act of 1985, as amended.

SEC. 725. For fiscal year 2018, 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. 726. Of the funds derived from interest on the cushion of credit payments,as authorized by section 313 of the Rural Electrification Act of 1936, $176,000,000shall not be obligated and $176,000,000 are hereby permanently cancelled.

SEC. 727. 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 2018, $61,000,000 are hereby permanently cancelled.

SEC. 728. Of the funds available under sections 9003(g)(1)(A)(i) and9003(g)(1)(A)(ii) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.8103(g)(1)(A)) for the Biorefinery, Renewable Chemical and Biobased ProductManufacturing Assistance program, $175,000,000 are hereby permanently cancelled.

SEC. 729. 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 2018, $9,340,000are hereby permanently cancelled.

SEC. 730. 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—

THE BUDGET FOR FISCAL YEAR 2018176 TITLE VII—GENERAL PROVISIONS—Continued

(a) in subparagraph (B) by striking "but shall not exceed $175 for each certi-fication" 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 2018; and(ii) for each subsequent fiscal year, the prior fiscal year maximum amount

multiplied by the inflation adjustment under section738(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. 731. (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 of

other 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 2018for "Department of Health and Human Services - Food and Drug Administration -Salaries and Expenses", not to exceed $5,000,000 of available amounts as ofSeptember 30 may be transferred to and merged with the Fund established undersubsection (a), notwithstanding 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.

177DEPARTMENT OF AGRICULTURE TITLE VII—GENERAL PROVISIONS—Continued

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