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Release No. 0040.03

Alisa Harrison (202) 720-4623

**AGRICULTURE BUDGET PROPOSES RECORD SPENDING FOR CONSERVATION, FOOD
SAFETY, NUTRITION AND FOOD ASSISTANCE PROGRAMS**

***\$74 Billion is 2% Increase Over FY2003 -- 8% Growth Since President
Bush Took Office***

WASHINGTON, Feb. 3, 2002\-\--Agriculture Secretary Ann M. Veneman today
released details of the Bush Administration's proposed FY 2004 budget
for USDA programs and services, which includes record spending for
important farm conservation measures, food safety protections, and
nutrition and food assistance programs. The \$74 billion request is 2%
higher (\$1.4 billion) than the previous year and \$5.4 billion higher
(or 8% growth) since FY2001.

"This budget reflects this Administration's continued commitment to
strong conservation practices to help farmers, protection of our food
supply and ensuring strong nutrition programs for a healthier America,"
said Veneman. "We have seen USDA's budget grow by 8 percent since this
Administration came to office, representing a strong record and
commitment to farmers and ranchers, trade expansion and rural
development."

At the beginning of her briefing, Secretary Veneman was joined by
Interior Secretary Gale Norton and Environmental Protection Agency
Administrator Christine Todd Whitman to highlight the Bush
Administration's conservation and environmental budgets, which are
funded at \$30 billion, up more than \$1 billion from FY 2003. Veneman
said, "Many of these programs are providing incentives for our nation's
farmers and ranchers, the best stewards of the land, to better protect
and conserve working farmlands. This is not only good news for
agriculture, but for communities throughout the country."

In a detailed briefing on USDA's budget proposal, the Secretary said
that the FY2004 budget supports the goals outlined in the
Administration's policy book, *Food and Agriculture Policy: Taking Stock
for a New Century,* and the Department's 5-year strategic plan. Key
aspects of the budget includes the following:

**[Safeguarding America's homeland and Protecting the Food
Supply:]{.underline}** The budget seeks record-level support for USDA's
Food Safety Inspection System (FSIS) meat and poultry food safety
programs as well as increases to strengthen agricultural protection
systems. FSIS funding will increase to a program level of \$899 million,
an increase of nearly \$42 million over the FY2003 and represents a
\$117 million (or 15%) increase in food safety programs since FY2001.

The \$899 million for FSIS is comprised of \$797 million in appropriated
funds and new fees for inspection services provided beyond an approved
shift. In addition, existing user fees are expected to generate \$102
million. Funding for FSIS will support 7,680 food safety inspectors,

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an increase of 80 inspectors, and provide specialized training for the
inspection workforce, increase microbiological testing and sampling,
strengthen foreign surveillance programs and increase public education
efforts.

Regarding homeland security and agricultural protection programs, the
budget includes nearly \$47 million in new funding to strengthen
laboratory security measures; conduct research on emerging animal
diseases; develop new vaccines; create new bio-security database
systems; and continue development of the unified Federal-State
Diagnostic Network for identifying and responding to high risk
pathogens. The Animal Plant Health Inspection Service (APHIS) would
receive a \$30 million increase for inspection services; expanding the
availability of foot-and-mouth disease vaccines; providing protection
against chronic wasting disease and poultry diseases; and expanding
diagnostic and other scientific/technical services. In addition, \$200
million is requested for the National Research Initiative.

**[Continued Implementation and Administration of the 2002 Farm
Bill:]{.underline}** The budget supports the continued implementation of
the 2002 Farm Bill, which includes providing historic increases for
conservation funding and protecting natural resources. Total program
level funding for Farm Bill conservation programs increases by \$1.7
billion, from \$2.2 billion in FY2001 to almost \$3.9 billion in FY2004.
This includes \$432 million for conservation technical assistance in
support of Farm Bill implementation.

Specifically, the budget request includes \$2 billion for the
Conservation Reserve Program (+\$139 million); \$850 million for the
EQIP program (+\$255 million); \$250 million for the Wetlands Reserve
Program to enroll an additional 200,000 acres; \$112 million for the
Farmland Protection Program (+\$27 million); \$85 million for the
Grassland Reserve Program (+\$13 million): \$51 million for Ground and
Surface Water Conservation (+\$13 million); \$42 million for the
Wildlife Habitat Incentives Program (+\$16 million); \$19 million for
the new Conservation Security Program; and \$8 million for water
conservation and water quality enhancements in the Klamath Basin of
Oregon and California.

**[Unprecedented Funding for a Food and Nutrition Safety
Net:]{.underline}** The FY2004 budget reflects the Bush Administration's
continued commitment to the nutrition safety net by including a record
of \$42.9 billion for domestic food assistance programs, a \$1.7 billion
increase over FY2003. The budget request supports an estimated 21.6
million food stamp participants; a record level of 7.8 million
low-income, nutritionally at risk, Women Infants and Children (WIC)
participants; and, an average of 29 million school children each day in
the School Lunch program. The budget also includes a \$2 billion
contingency reserve for food stamps and a \$150 million contingency
reserve for WIC to be available to cover unanticipated increases in
participation on these programs.

**[Expanding Agricultural Trade and Supporting International Food
Assistance Programs:]{.underline}** The FY2004 budget continues a strong
commitment to export promotion and foreign market development efforts by
proposing \$6.2 billion in spending. This represents an 18 percent
increase since the Administration came into office, or \$961 million in
additional spending since FY2001. Included is funding for USDA's market
development programs, including the Market Access and Cooperator
Programs, which are increased by \$15 million. The budget establishes a

new, centralized fund of \$6.6 million to support important,
cross-cutting trade issues, compliance

monitoring, dispute resolution, and biotechnology activities within the
Department. A program

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level of \$4.2 billion is provided for CCC export credit guarantee
activities. Nearly \$1.6 billion is requested for U.S. foreign food
assistance activities, including \$50 million for the new McGovern-Dole
International Food for Education and Child Nutrition Program.

Increasing Housing Opportunities and Investment in Rural America: The
Administration proposes spending \$11.9 billion for rural development
programs. The budget supports the President's homeownership initiative,
particularly for minority families with a 50 percent increase for single
family housing. Nearly \$4.1 billion is requested for direct and
guaranteed Section 502 single family housing loans, compared to a
current estimate of \$2.8 billion for FY2003. The President's budget
will provide 49,000 new homeownership opportunities for low- and
moderate-income families in rural areas. The water and waste disposal
program is maintained at its FY2003 level of \$1.5 billion. The budget
proposes \$196 million for broadband loans and loan guarantees to rural
telecommunications providers in FY2004, building upon a \$1.4 billion
program developed over the past two years.

Strengthening Forest Health and Firefighting Capabilities: The FY2004
budget proposes \$4.9 billion for U.S. Forest Service programs. The
budget includes the highest level ever requested for fire suppression
and dramatically increases efforts to improve forest health through the
President's Healthy Forests Initiative. Approximately \$1.57 billion is
requested for the National Fire Plan, an increase of \$173 million over
FY 2003. The Forest Legacy Program is funded at \$91 million, a \$21
million increase over 2003, and represents a \$61 million increase since
FY2000.

Improving Departmental Services and Systems: The budget supports the
Department's strategic plan and supports several management initiatives
to better integrate computer systems and technology to provide employees
and customers the necessary tools to efficiently operate and deliver
services. The budget includes \$178 million in FY2004, an increase of
\$45 million, to upgrade technology in its County Service Centers. Most
of the increase in funding will be used to provide Geographic
Information System (GIS) technologies to these offices, allowing farmers
and ranchers more access to satellite mapping and planting information.
County Service Centers are located throughout the U.S. and utilized by
producers and other constituents to receive vital programs and services
administered by USDA. In addition, the budget supports funding of
\$800,000 for the new Assistant Secretary for Civil Rights.

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**[Note to Reporters:]{.underline}** A complete guide to the FY2004 USDA
budget is available at <http://www.usda.gov/>. Resource materials
include a complete budget summary, fact sheets, camera-ready graphics,
transcripts, audio feeds and press releases. For additional information,
please contact USDA Communications at 202-720-4623.