Fiscal Year 2012

Summary of Performance

and Financial Information

150th Anniversary

United States Department of Agriculture
 Fiscal Year 2012 | Summary of Performance and Financial Information i

Non-Discrimination Statement 

The U.S. Department of Agriculture (USDA) prohibits discrimination against its customers. If 

you believe you experienced discrimination when obtaining services from USDA, participating 

in a USDA program, or participating in a program that receives financial assistance from USDA, 

you may file a complaint with USDA. Information about how to file a discrimination complaint 

is available from the Office of the Assistant Secretary for Civil Rights.

To file a complaint of discrimination, complete, sign, and mail a program discrimination 

complaint form, available at any USDA office location or online at http://www.ascr.usda.gov or 

write to the following address:

USDA

Office of the Assistant Secretary for Civil Rights

1400 Independence Avenue, S.W.

Washington, D.C. 20250-9410

Or, call toll free at (866) 632-9992 (voice) to obtain additional information, the appropriate 

office, or to request documents. Individuals who are deaf, hard of hearing, or have speech 

disabilities may contact USDA through the Federal Relay service at (800) 877-8339 or 

(800) 845-6136 (in Spanish).

USDA is an equal opportunity provider, employer, and lender.

Persons with disabilities who require alternative means for communication of program 

information (e.g., Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at 

(202) 720-2600 (voice and TDD).

Only Federal employees participated in the preparation of the performance and financial 

information contained in this report.
ii 150th Anniversary | United States Department of Agriculture

About This Report

Historically, the U.S. Department of Agriculture (USDA) has published consolidated financial 

and performance information in the Performance and Accountability Report (PAR). In fiscal year 

(FY) 2012, the Department issued an Agency Financial Report (AFR), an alternative approach 

to the PAR. The Office of Management and Budget (OMB) Circular No. A136, “Financial 

Reporting Requirements,” Section II, “Performance and Accountability Report or Agency 

Financial Report,” describes this alternative. This circular states that agencies may choose either 

to produce a consolidated PAR, or a separate AFR and Annual Performance Report (APR) and a 

Summary of Performance and Financial Information (SPFI).

The AFR is a report on the Department’s end-of-fiscal-year financial position that includes, 

but is not limited to, financial statements, notes to the financial statements, and a report of the 

independent auditors. The AFR also includes a performance summary. The AFR was issued on 

November 15, 2012.

The APR is a detailed report on USDA’s progress toward achieving the strategic goals and 

objectives described in the Department’s strategic plan and annual performance plan, including 

progress on agency priority goals.

This report, the SPFI, includes the most relevant performance and financial information in a 

brief, user-friendly format that is easily understood by a reader with little technical background 

in these areas. This report was previously known as the Citizen’s Report. The goal of this 

summary is to increase accountability of agency heads and program managers. It will make the 

financial and performance information more transparent and accessible to Congress, the public, 

and other key constituencies. 

All plans and reports are available at

http://www.usda.gov/wps/portal/usda/usdahome?navid=PERFORMANCE_IMP and at

http://www.performance.gov.
 Fiscal Year 2012 | Summary of Performance and Financial Information iii

Table of Contents

Message from the Secretary........................................................................................................ iv

Section 1: Agency and Mission Information...............................................................................1

Introduction............................................................................................................................. 1

Mission and Vision.................................................................................................................. 1

Organization Chart.................................................................................................................. 2

Organizational Structure ......................................................................................................... 3

Section 2: Summary of Performance Results and Financial Information...............................6

Cross-Agency Priority Goals.................................................................................................. 6

Strategic Goals........................................................................................................................ 7

Strategic Objectives................................................................................................................ 7

Agency Priority Goals............................................................................................................. 8

Strategic Plan Framework....................................................................................................... 9

Performance Progress Update and Results........................................................................... 10

Challenges to Performance and Progress...............................................................................17

Financial Statement Highlights............................................................................................. 20

Section 3: Other Information.....................................................................................................27

Management Challenges....................................................................................................... 27

Eliminating Improper Payments........................................................................................... 27

Debt Management................................................................................................................. 27

Web Links............................................................................................................................. 28

Acronyms......................................................................................................................................29
iv 150th Anniversary | United States Department of Agriculture

Message from the Secretary

In fulfillment of its duty to the people, the President, and Congress, the 

U.S. Department of Agriculture (USDA) respectfully submits the Fiscal 

Year (FY) 2012 Summary of Performance and Financial Information 

report.

This year, we had an opportunity to remember the rich history of the 

Department, which celebrated its 150th anniversary in 2012. On May 15, 1862, President 

Abraham Lincoln signed into law an Act of Congress establishing USDA. Two and a half years 

after he established the Department, in what would be his final annual message to Congress, 

Lincoln called USDA “The People’s Department.”

President Lincoln knew the importance of agriculture to our prosperity — particularly at a time 

when about half of all Americans lived on farms. We believe that the values shared by folks in 

our small towns and rural communities are at the heart of our American values.

As the United States has changed and evolved over the years, at USDA, we have not lost sight 

of Lincoln’s vision. Through our work on food, agriculture, economic development, science, 

natural resource conservation, and a host of other issues, the Department has affected the lives of 

generations of Americans.

Like any organization, it is an imperative that USDA always ensures that we are serving our 

customers to the greatest possible extent. This fiscal year, the Department of Agriculture has 

been defined by the efforts of our hardworking employees to continue delivering services 

to Americans at a record pace — even in a time of reduced operating budgets and staffing 

constraints in many agencies.

This year, we had to take a hard look at the ways in which we do business because, like any 

American family or business, USDA must ensure that we are executing our mission while 

balancing our checkbook. This year, the Department continues our efforts to look forward to the 

future, ensuring that USDA is a 21st century service provider and employer, while managing a 

Department of nearly 100,000 employees who deliver services to Americans across the country.

In January 2011, USDA responded to these needs by announcing a “Blueprint for Stronger 

Service” to modernize the Department, reduce paperwork, improve the experience of USDA

customers, and help bring the Department’s operating costs within the budget and staffing 

constraints predicated by decreasing congressional appropriations.

Meanwhile, USDA’s employees have worked hard to manage the challenges we face, always 

sharing a commitment to provide the best possible service for producers, communities, and 

American families. Our employees have achieved historic results since 2009, and this year has 

been no different.

USDA implements safety net programs authorized by Congress to help keep American 

agriculture secure from the market and weather uncertainties that our farmers and ranchers face 
 Fiscal Year 2012 | Summary of Performance and Financial Information v

every day. This year, the Department’s response to the drought that is sweeping across much 

of America stands as one important example of our commitment. USDA implemented a number 

of administrative actions to help drought-stricken producers by expediting assistance for farmers 

and ranchers who were struggling. 

Through its network of more than 140 international offices, USDA continued its work to open 

markets for quality U.S. products abroad. USDA implemented new free trade agreements 

(FTAs) with South Korea and Columbia and has worked hard to help secure implementation of 

the Panama FTA. These three trade agreements will support 20,000 American jobs and create 

more than $2.3 billion in additional agricultural trade. Exports of U.S. food and agricultural 

products are expected to reach $145 billion in FY 2013, well above the record set in FY 2011 and 

$9.2 billion more than FY 2012 exports. Since 2009, U.S. agricultural exports have made gains 

of 50 percent.

Our farmers and ranchers are the leading stewards of our land and water. USDA has continued 

supporting their work through technical assistance and conservation programs — applying the 

most effective programs in the best places to achieve the best possible results. In 2012, USDA 

continued its work with more than 500,000 landowners around the United States, providing 

additional efforts for producers to enter into contracts under the Conservation Reserve Program, 

while reaching its 50 millionth acre enrolled under the Conservation Stewardship Program. 

In America’s National Forests, USDA is hard at work to reduce the risk of devastating wildfire 

and improve soil and water quality. In April 2012, the Department finalized its new Land 

Management Planning Rule to better organize the management of more than 193 million acres of 

National Forest lands, creating jobs in rural areas and ensuring the protection of our forests for 

years to come. 

USDA continued our record level of investment in rural America and the rural communities 

that millions call home by investing in community facilities, providing loans for rural small 

businesses, helping rural families buy or repair homes, and helping ensure communities have 

access to critical infrastructure.

The Department is leading the way for renewable energy, supporting the infrastructure 

we will need in a new energy economy. By working directly with farmers, ranchers, and 

rural homeowners, USDA is helping folks save money by implementing new energysaving 

technology. In 2012, for example, we reached an important goal of $250 million in Smart Grid 

electric investments to help rural electric cooperatives better serve their customers.

USDA also continues to lead the way in research, as USDA researchers have partnered with folks 

across the country to develop the next generation of renewable energy and find solutions to some of 

America’s greatest scientific challenges.

The Department ensures a safe food supply through its network of Federal inspectors in more 

than 6,000 locations nationwide. In June 2012, USDA finalized rules to adopt a zerotolerance 

policy for raw beef products containing six additional strains of shiga-toxin producing E. coli

O157:H7.
vi 150th Anniversary | United States Department of Agriculture

In February 2011, the Government Accountability Office reported in its High-Risk Series 

Update that food safety agencies have not developed a Government-wide performance plan that 

includes results-oriented performance measures, which would be a leap forward with regard 

to measuring our progress in preventing foodborne illness from meat, poultry, and processed 

egg products. In September 2011, the Food Safety and Inspection Service (FSIS) published its 

strategic plan, which includes results-oriented performance measures. For example, FSIS has 

made attribution estimates of the total number of illnesses from meat, poultry, and processed 

egg products, and developed a key corporate performance measure of our progress toward 

preventing these illnesses. FSIS’ strategic plan includes 30 distinct, quantifiable performance 

measures that support 8 larger goals. In support of this strategic plan and the core principles of 

President Barack Obama’s Food Safety Working Group, USDA’s FSIS has announced several 

new measures to prevent foodborne illness, empower people, strengthen infrastructure, and 

understand and influence the farm-to-table continuum.

USDA delivers critical nutrition assistance to Americans struggling to put food on the table 

by providing breakfast and lunch to nearly 32 million schoolchildren each day. This year, the 

Department fed these children nearly 44 million lunches and breakfasts per day, while providing 

food assistance to nearly 1 in 4 Americans, a record high proportion that will go down as the 

economy improves. FY 2012 marks the first of 3 years in which new, healthier school meals 

standards authorized under the Healthy, Hunger-Free Kids Act of 2010 are being implemented.

As we commemorate 150 years of accomplishments, USDA is looking to the future. In the years 

to come, we will help address the changing needs of agriculture and rural America. We will 

continue to help provide a safe, ample food supply for our Nation and the world. As we promote 

innovation, we will help create jobs and support economic growth; promote healthy families and 

communities; and contribute to a stronger Nation. To meet those goals, we are working to make 

USDA a more modern and effective service provider, delivering the best possible results for all 

Americans.

Thank you for your interest in the Department. I salute USDA employees for their outstanding 

work and am proud to share this information with our stakeholders. We will continue to serve the 

needs of the people every day.

Thomas J. Vilsack 

Secretary of Agriculture
USDA: Managing for Results in Performing Its Many Vital Public Functions

Fiscal Year 2012 | Summary of Performance and Financial Information 1

Section 1: Agency and Mission Information

Introduction

The U.S. Department of Agriculture (USDA) was founded by President Abraham Lincoln in 

1862, when more than half of the Nation’s population lived and worked on farms. The population 

has increased approximately tenfold and now exceeds 307 million people, the vast majority of 

whom do not live on farms or in rural areas.

Today, USDA improves the Nation’s economy and quality of life by touching the lives of almost 

every person in America, every day. Nearly 100,000 employees deliver more than $144 billion in 

public services through the Department’s more than 300 programs worldwide.

Because America’s food and fiber producers operate in a global, technologically advanced, 

rapidly diversifying, and highly competitive business environment, USDA is constantly helping 

agricultural producers meet the needs of the Nation.

Mission Statement

We provide leadership on food, agriculture, natural resources, rural development, nutrition, and 

related issues based on sound public policy, the best available science, and efficient management.

Vision Statement

To expand economic opportunity through innovation, helping rural America to thrive; to promote 

agriculture production sustainability that better nourishes Americans while also helping feed 

others throughout the world; and to preserve and conserve our Nation’s natural resources through 

restored forests, improved watersheds, and healthy private working lands.
Section 1: Agency and Mission Information

2 150th Anniversary | United States Department of Agriculture

U.S. Department of Agriculture Organization Chart

Exhibit 1: Organization Chart

Source: USDA’s Web site, September 29, 2012

This image displays the USDA’s Headquarters Organization, including the Secretary, Chief 

Officers, Under Secretaries, and Assistant Secretaries for various agencies within USDA. 

In addition to its Headquarters Organization, USDA has a network of offices, facilities, and 

laboratories across the country and overseas.
USDA: Managing for Results in Performing Its Many Vital Public Functions

Fiscal Year 2012 | Summary of Performance and Financial Information 3

Organizational Structure

The U.S. Department of Agriculture’s (USDA’s) work is organized by mission areas, which 

are collections of agencies that work together to achieve its strategic goals. Descriptions of the 

Department’s seven mission areas, Departmental Management, and Office of Inspector General 

follow.

Farm and Foreign Agricultural Services

The Farm and Foreign Agricultural Services (FFAS) mission area helps keep America’s farmers 

and ranchers in business as they face the uncertainties of weather and markets. FFAS delivers 

programs that support a sustainable and competitive U.S. agricultural system. This mission area 

is comprised of the Farm Service Agency (FSA), the Foreign Agricultural Service (FAS), and 

the Risk Management Agency (RMA). FSA administers and manages commodity, farm credit, 

conservation, and disaster programs through a network of Federal, State, and county offices. FSA

provides administrative support for the Commodity Credit Corporation (CCC). The CCC is a 

Government-owned entity, which funds most of the commodity, export, and some conservation 

programs of USDA. FAS works to improve international market access for U.S. products, build 

new markets, improve the competitive position of domestic agriculture in the global marketplace, 

and provide food aid and technical assistance to other countries. RMA helps producers manage 

their business risks through effective, marketbased, riskmanagement solutions. In addition, 

RMA manages the Federal Crop Insurance Corporation to improve the economic stability of 

agriculture through a sound system of crop insurance.

Food, Nutrition, and Consumer Services

The Food, Nutrition, and Consumer Services (FNCS) mission area works to harness the Nation’s 

agricultural abundance to reduce hunger and improve nutritional intake and health in the United 

States. FNCS is comprised of the Food and Nutrition Service (FNS) and the Center for Nutrition 

Policy and Promotion (CNPP). FNS administers USDA’s 15 Federal nutrition assistance 

programs. CNPP works to improve the health and well-being of Americans by developing and 

promoting dietary guidance that links scientific research to the nutrition needs of consumers.

Food Safety

The Food Safety mission area ensures that the Nation’s commercial supply of meat, poultry, and 

processed egg products is safe, wholesome, and properly labeled and packaged. It also plays 

a key role in the President’s Food Safety Working Group, a coordinated, Government-wide 

initiative to ensure a safe food supply for the American people for the 21st century. USDA’s 

partners in the working group include the U.S. Department of Health and Human Services, the 

U.S. Environmental Protection Agency, and a number of other Government agencies. The Food 

Safety mission area is comprised of a single agency, the Food Safety and Inspection Service.
Section 1: Agency and Mission Information

4 150th Anniversary | United States Department of Agriculture

Marketing and Regulatory Programs

The Marketing and Regulatory Programs (MRP) mission area facilitates the domestic and 

international marketing of U.S. agricultural products and ensures the health and care of animals 

and plants. MRP is made up of the Agricultural Marketing Service (AMS); the Animal and 

Plant Health Inspection Service (APHIS); and the Grain Inspection, Packers, and Stockyards 

Administration (GIPSA). AMS administers programs that facilitate the efficient, fair marketing 

of U.S. agricultural products, including food, fiber, and specialty crops. APHIS provides 

leadership in ensuring the health and care of animals and plants. GIPSA facilitates the marketing 

of livestock, poultry, meat, cereals, oilseeds, and related agricultural products.

Natural Resources and Environment

The Natural Resources and Environment (NRE) mission area ensures the health of the land 

through sustainable management. Its agencies work to conserve natural resources and prevent 

damage to the environment, restore ecosystems, and promote good land management. NRE 

consists of the Forest Service and the Natural Resources Conservation Service (NRCS). The 

Forest Service manages public lands in national forests and grasslands, which encompass 193 

million acres and assists States in managing State and private forestlands. NRCS provides 

leadership in a partnership effort to help America’s private landowners and managers conserve 

their soil, water, and other natural resources. Both agencies work in partnership with Tribal, 

Federal, State, and local governments, as well as community-related groups to protect soils, 

watersheds, and ecosystems.

Research, Education, and Economics

The Research, Education, and Economics (REE) mission area helps create a safe, sustainable, 

and competitive U.S. food and fiber system, as well as develop strong communities, families, and 

youth through integrated research, analysis, and education. REE is comprised of the Agricultural 

Research Service (ARS), the National Institute of Food and Agriculture, the Economic Research 

Service, and the National Agricultural Statistics Service. The National Agricultural Library is a 

component of ARS.

Rural Development

The Rural Development (RD) mission area helps improve the economy and quality of life in 

all of rural America. RD provides financial support for the development of essential public 

facilities and services such as water and sewer systems, housing, health clinics, emergency 

service facilities, and electric and telephone services. It also promotes economic development 

by providing direct loans and loan guarantees to businesses through private sector financial 

institutions. In addition, RD provides grants, loan guarantees, and payments to farmers, ranchers, 

and rural small businesses to develop renewable energy systems and make energy efficiency 

improvements. RD is comprised of the Rural Business and Cooperative Service, the Rural 

Housing Service, and the Rural Utilities Service.
USDA: Managing for Results in Performing Its Many Vital Public Functions

Fiscal Year 2012 | Summary of Performance and Financial Information 5

Departmental Management

Departmental Management’s (DM) mission ensures that USDA administrative programs, 

policies, advice, and counsel meet the needs of USDA program organizations, consistent with 

laws and mandates, and provide safe and efficient facilities and services to customers. DM is 

comprised of the following offices: Office of Administrative Law Judges; Office of Advocacy 

and Outreach; Office of the Chief Financial Officer; Office of the Chief Information Officer; 

Office of the Executive Secretariat; Office of Homeland Security and Emergency Coordination; 

Office of Human Resources Management; Office of the Judicial Officer; Office of Operations; 

Office of Procurement and Property Management; and Office of Small and Disadvantaged 

Business Utilization.

Office of Inspector General

The Office of Inspector General (OIG) was legislatively established in 1978 with the enactment 

of the Inspector General Act (Public Law 95-452). The act requires the Inspector General to 

independently and objectively: perform audits and investigations of the Department’s programs 

and operations; work with the Department’s management team in activities that promote 

economy, efficiency, and effectiveness or that prevent and detect fraud and abuse in programs 

and operations, both within USDA and in nonFederal entities that receive USDA assistance; and 

report OIG activities to the Secretary of Agriculture and the U.S. Congress semiannually as of 

March 31 and September 30 each year.

OIG accomplishes its mission by: investigating allegations of fraud and abuse; using preventive 

audit approaches, such as reviews of systems under development; conducting audits of the 

adequacy and vulnerability of management and program control systems; and auditing the 

adequacy of large USDA payments, such as insurance and deficiency payments, major loans, and 

retailer food stamp redemptions.

OIG is headquartered in Washington, D.C., and has regional offices located in Atlanta, Georgia; 

Chicago, Illinois; New York, New York; Oakland, California; and Temple, Texas. Our Financial 

and Automated Data Processing operations sub-office is located in Kansas City, Missouri.
Section 2: Summary of Performance Results and Financial Information

6 150th Anniversary | United States Department of Agriculture

Section 2: Summary of Performance Results 

and Financial Information

Cross-Agency Priority Goals

The Federal Government has adopted a limited number of Cross-Agency Priority (CAP) Goals to 

improve cross-agency coordination and best practice sharing. Per the Government Performance 

and Results Act Modernization Act of 2010, the Department is required to address CAP Goals 

in its strategic plan, annual performance plan, and annual performance report. Please refer to 

http://www.performance.gov for the U.S. Department of Agriculture (USDA) contributions to the 

interdepartmental CAP goals and progress, where applicable. USDA currently contributes to the 

following CAP Goals:

Exports: Double U.S. exports by the end of calendar year 2014;

Entrepreneurship and Small Business: Increase Federal services to entrepreneurs and small 

businesses with an emphasis on 1) startups and growing firms, and 2) underserved markets; 

Broadband: As part of expanding all broadband capabilities, ensure 4G broadband coverage for 

98 percent of Americans by 2016; 

Sustainability: By 2020, the Federal Government will reduce its direct greenhouse gas 

emissions by 28 percent and reduce its indirect greenhouse gas emissions by 13 percent (from 

2008 baseline); 

Real Property: The Federal Government will manage real property effectively to generate 

$3 billion in cost savings by the end of 2012; 

Improper Payments: The Federal Government will reduce the Government-wide improper 

payment rate by at least two percentage points by fiscal year (FY) 2014; 

Data Center Consolidation: Improve information technology service delivery, reduce waste, 

and save $3 billion in taxpayer dollars by closing at least 1,200 data centers by FY 2015; 

Strategic Sourcing: Reduce the costs of acquiring common products and services by agencies’

strategic sourcing of at least two new commodities or services in both 2013 and 2014, that yield 

at least a 10-percent savings; and

Closing Skill Gaps: Close critical skills gaps in the Federal workforce to improve mission 

performance. By September 30, 2013, close the skills gaps by 50 percent for 3 to 5 critical 

Federal Government occupations or competencies, and close additional agency-specific, highrisk 

occupation, and competency gaps.
USDA: Managing for Results in Performing Its Many Vital Public Functions

 Fiscal Year 2012 | Summary of Performance and Financial Information 7

Strategic Goals

The Department has established a variety of short and longterm performance goals to 

drive progress toward key outcomes. Long-term goals and objectives are outlined in the 

U.S. Department of Agriculture (USDA) Strategic Plan Fiscal Year (FY) 20102015. Annual 

performance goals are outlined in USDA’s FY 2013 Budget Summary and Annual Performance 

Plan. USDA has the following strategic goals:

Strategic Goal 1: Assist Rural Communities to Create Prosperity So They Are Self-Sustaining, 

Repopulating, and Economically Thriving.

Strategic Goal 2: Ensure Our National Forests and Private Working Lands Are Conserved, 

Restored, and Made More Resilient to Climate Change, While Enhancing 

Our Water Resources.

Strategic Goal 3: Help America Promote Agricultural Production and Biotechnology Exports 

as America Works to Increase Food Security.

Strategic Goal 4: Ensure That All of America’s Children Have Access to Safe, Nutritious, and 

Balanced Meals.

These four goals mirror USDA’s commitment to provide first-class service and state-of-the-art 

science through consistent management excellence across the Department. Although change 

has been a constant in the evolution of the United States farm and food sector, the current 

marketplace emphasizes the growing importance of consumer preferences and the reach of 

global markets. USDA’s objectives reflect this evolution. 

USDA is working to transform itself into a model organization. By strengthening management 

operations and engaging employees, the Department will improve customer service, increase 

employment satisfaction, and develop and implement strategies to enhance leadership, 

performance, diversity, and inclusion. The transformation will result in process improvements 

and increased performance.

Strategic Objectives

USDA’s strategic objectives break down broader strategic goals to a level that reflects the 

outcome or impact the Department is trying to achieve, as well as the specific results of 

contributing programs. Strategic objectives contribute to the broader impact described in the 

strategic goal statement while also expressing how an aspect of the strategic goals will be 

achieved by the Department and its delivery partners. 

Strategic objectives, in turn, cascade down to a set of performance goals and indicators 

established to help USDA monitor, evaluate, and understand its progress. Strategic objectives 

are the primary unit of analysis for assessing how USDA is achieving its mission and serving its 

customers.
Section 2: Summary of Performance Results and Financial Information

8 150th Anniversary | United States Department of Agriculture

Agency Priority Goals

The Department identified 2-year Agency Priority Goals (APG) in the FY 2013 budget, which 

align with the strategic goals and objectives. APGs target areas where agency leaders want to 

achieve near-term performance acceleration through focused senior leadership attention. USDA 

is pursuing 3 APGs for FYs 2012 and 2013. 

Agency Priority Goal 1: Further improve payment accuracy in the Supplemental Nutrition 

Assistance Program (SNAP).

Agency Priority Goal 2: Expand U.S. agricultural exports to at least $150 billion by 

September 2013. 

Agency Priority Goal 3: Accelerate the protection of clean, abundant water resources 

by advancing USDA’s capacity to measure the effectiveness of 

conservation investments in addressing water resource concerns.

To learn more about our APGs, visit http://goals.performance.gov/agency/usda. Once there, click 

on “Agency Goals,” and then click on any one of the strategic goals to view the objectives and 

see a full description of APGs listed.

Exhibit 2 illustrates the relationship of USDA’s mission, strategic goals and objectives, and 

agency priority goals.

For more information, access the USDA Strategic Plan at http://www.ocfo.usda.gov/sp2010/

sp2010.pdf
USDA: Managing for Results in Performing Its Many Vital Public Functions

 Fiscal Year 2012 | Summary of Performance and Financial Information 9

Exhibit 2: Strategic Plan Framework

Our Mission: We provide leadership on food, agriculture, natural resources, rural development, 

nutrition, and related issues based on sound public policy, the best available science,

and efficient management
Section 2: Summary of Performance Results and Financial Information

10 150th Anniversary | United States Department of Agriculture

Performance Progress Update and Results

The U.S. Department of Agriculture (USDA) has 42 performance goals. Each of these goals 

contains a measurable value (performance indicator), target, and timeframe to define the level of 

performance to be achieved. 

The key performance goal results described in Exhibits 3, 4, 5, and 6 are organized by strategic 

goal and strategic objective. Exhibit 7 describes USDA’s performance results on performance 

goals related to a selected management initiative. These exhibits provide a summary of the 

Department’s year end, actual performance results and trend data for the previous 5 years, 

if available. Some year-end results differed slightly from the projected results, which were 

published in the FY 2012 Agency Financial Report, which is available at http://www.usda.gov/

documents/USDA_AFR_2012.pdf. An asterisk (*) denotes those measures with changes in the 

“Result” column of Exhibits 3, 4, 5, 6, and 7. Footnotes explaining the differences between 

projected and actual results follow each of these exhibits.

Of the 42 performance measures contained in USDA’s FY 2013 Budget Summary and Annual 

Performance Plan (APR), 37 were met or exceeded, and 5 were unmet. When targets are 

established in the annual planning process, a statistical range is declared for determining an 

allowable variance in results. If results are within the allowable variance, the performance 

goal is met. If results are less than the allowable variance, the performance goal is unmet. The 

performance goal is exceeded if results are greater than the allowable variance.

The APR was released with the Department’s FY 2014 President’s Budget. It contains additional 

analysis of these results, including the historical performance trend data. USDA performance 

reports can be accessed at http://www.ocfo.usda.gov/usdarpt/usdarpt.htm. 
USDA: Managing for Results in Performing Its Many Vital Public Functions

 Fiscal Year 2012 | Summary of Performance and Financial Information 11

Strategic Goal 1: Assist Rural Communities to Create Prosperity So They Are SelfSustaining, Repopulating, and Economically Thriving.

Exhibit 3: Performance Summary Strategic Goal 1

Annual Performance 

Goals, Indicators, and 

Trends

2007 2008 2009 2010 2011

Fiscal Year 2012

Target Actual Result Range for 

Met

1.1.1 Number of jobs created 

or saved through USDA 

financing of businesses N/A N/A N/A N/A 66,824 42,288 52,468 Exceeded

+/– 5 percent 

or from 

40,174 to 

44,402

1.1.2 Number of borrowers/ 

subscribers receiving 

new or improved 

telecommunication 

services (millions)

0.36 0.78 0.18 0.14 0.18 0.22 0.06 Unmet

+/– 7 percent 

or from 0.20 

to 0.24

1.2.1 Number of borrowers/ 

subscribers receiving 

new or improved 

service from agencyfunded water facility 

(millions)

1.3 4.4 3.4 3.9 4.5 2.4 4.2 Exceeded

+/- 5 percent 

or from 2.28 

to 2.52

1.2.2 Homeownership 

opportunities provided 43,942 67,420 56,613 127,735 140,100 190,186 153,027 Met

+/- 20 percent

or from 

152,149 to 

228,223

1.2.3 Percentage of customers 

who are provided 

access to new and/

or improved essential 

community facilities:

+/- .2 percent

or from

5.3 to 5.7

Health Facilities 5.2 5.3 5.4 3.2 5.2 5.5 7.31 Exceeded*

Safety Facilities

2.7 2.8 5.0 3.2 4.3 4.7 3.71 Unmet*

+/- .2 percent 

or from 4.5 

to 4.9

Education

Facilities N/A N/A 3.5 3.8 3.8 4.5 6.41 Exceeded*

+/- .2 percent

or from : 4.3 

to 4.7

1.2.4 Number of borrowers/ 

subscribers receiving 

new and/or improved 

electric facilities 

(millions)

5.8 8.1 9.8 9.4 7.1 6.1 8.2 Exceeded*

+/- 5 percent 

or from 5.8 

to 6.4

1.3.1 Percentage of beginning 

farmers, racial and 

ethnic minority farmers, 

and women farmers 

financed by FSA

15.9 16.2 17.4 19.9 21.0 18.1 22.0 Exceeded

+/- 5 percent 

or from 17.6 

to 18.6

1.3.2 Maintain or increase 

percentage of FSA 

program delivery 

applications at USDA 

Service Centers that are 

Web enabled.

N/A 54 51 57 68 73 73 Met

+/- 5 percent 

or from 72.5 

to 73.5

*The target for measure 1.2.3 for the Safety Facilities was projected to be met; the final result was unmet. The results for the Health and Education Facilities measures changed from projections of met to actual results of exceeded.
Section 2: Summary of Performance Results and Financial Information

12 150th Anniversary | United States Department of Agriculture

Exhibit 3: Performance Summary Strategic Goal 1 (continued)

Annual Performance Goals, 

Indicators, and Trends 2007 2008 2009 2010 2011

Fiscal Year 2012

Target Actual Result Range for 

Met

1.3.3 Value of trade preserved 

annually through USDA 

staff interventions leading to 

resolution of barriers created 

by Sanitary and Phytosanitary 

or Technical Barriers to Trade 

measures ($billions). 

2.5 7.3 9.5 3.6 4.0 4.0 4.0 Met* 3.4-3.8

1.3.4 Value of Federal Crop 

Insurance Corporation (FCIC) 

risk protection coverage 

provided through FCICsponsored insurance ($billions)

67.3 89.9 79.6 78.1 113.5 105.9 116.2 Exceeded

+/- 4.4

or from 

101.2 to 

110.6

1.3.5 Normalized value of FCIC risk 

protection coverage provided 

through FCIC-sponsored 

insurance ($billions)

50.6 51.6 53.9 55.0 56.3 54.4 62.1 Exceeded

4.4

or from 52 

to 56.8

1.3.6 Percent of industry compliance 

with the Packers and 

Stockyards Act 75 80 80 80 76 81 87 Exceeded

+/- 

7 percent 

or from 75 

to 87

*The target for measure 1.2.4 target was projected to be met; the final result was exceeded. The result for measure 1.3.3 changed from a projection of exceeded to an actual result of met.
USDA: Managing for Results in Performing Its Many Vital Public Functions

 Fiscal Year 2012 | Summary of Performance and Financial Information 13

Strategic Goal 2: Ensure Our National Forests and Private Working Lands Are Conserved, 

Restored, and Made More Resilient to Climate Change, While Enhancing Our Water 

Resources

Exhibit 4: Performance Summary Strategic Goal 2

Annual Performance Goals, 

Indicators, and Trends 2007 2008 2009 2010 2011

Fiscal Year 2012

Target Actual Result Range for 

Met

2.1.1 Conservation Reserve Program: 

Restored wetland acreage (millions 

of acres)

2.08 1.98 2.04 2.05 2.23 2.23 2.29 Exceeded

+/-.05

or from 2.18 

to 2.28

2.1.2 Conservation Technical Assistance 

(CTA): Cropland with conservation 

applied to improve soil quality 

(millions of acres)

7.3 8.3 7.6 8.2 8.2 7.3 8.7 Exceeded*

+/- 10 percent 

or from 

6.6 to 8.0

2.1.3 Environmental Quality Incentives 

Program (EQIP): Cropland with 

conservation applied to improve 

soil quality (millions of acres)

5.3 5.6 4.8 4.8 4.6 4.8 4.6 Met

+/- 10 percent 

or from 

4.3 to 5.3.0

2.1.4 CTA: Grazing land and forest land 

with conservation applied to protect 

and improve the resource base 

(millions of acres)

12.2 16.0 16.0 17.6 17.1 15.1 17.1 Exceeded*

+/- 10 percent 

or from 

13.6 to 16.6

2.1.5 EQIP: Grazing land and forest land 

with conservation practices applied 

to protect and improve the resource 

base (millions of acres)

16.5 16.9 17.2 17.5 16.3 16.2 17.2 Met

+/- 10 percent 

or from 

14.6 to 17.8

2.1.6 Farm and Ranchlands Protection 

Program (FRPP): Prime, unique, 

or important farmland protected 

from conversion to nonagricultural 

uses by conservation easements 

(thousands of acres)

38.5 27.4 38.3 53.9 51.5 45.0 45.2 Met

+/- 10 percent 

or from 

40.6 to 49.5

2.1.6 Farm and Ranchlands Protection 

Program (FRPP): Prime, unique, 

or important farmland protected 

from conversion to nonagricultural 

uses by conservation easements 

(thousands of acres)

38.5 27.4 38.3 53.9 51.5 45.0 45.2 Met

+/- 10 percent 

or from 

40.6 to 49.5

2.1.6 Farm and Ranchlands Protection 

Program (FRPP): Prime, unique, 

or important farmland protected 

from conversion to nonagricultural 

uses by conservation easements 

(thousands of acres)

38.5 27.4 38.3 53.9 51.5 45.0 45.2 Met

+/- 10 percent 

or from 

40.6 to 49.5

2.1.7 Wildlife Habitat Incentive Program: 

Non-Federal land with conservation 

applied to improve fish and wildlife 

habitat quality (millions of acres)

0.4 0.3 0.3 0.9 1.3 0.7 0.9 Exceeded

+/- 10 percent 

or from 

.6 to .8

2.1.8 EQIP: Non-Federal land with 

conservation applied to improve 

fish and wildlife habitat quality 

(millions of acres)

1.3 4.8 5.2 6.0 4.8 5.0 6.2 Exceeded

+/- 10 percent 

or from 

4.5 to 5.5

*The targets for measures 2.1.2 and 2.1.4 were projected to be met; actual results exceeded the targets.
Section 2: Summary of Performance Results and Financial Information

14 150th Anniversary | United States Department of Agriculture

Exhibit 4: Performance Summary Strategic Goal 2 (continued)

Annual Performance 

Goals, Indicators, and 

Trends

2007 2008 2009 2010 2011

Fiscal Year 2012

Target Actual Result Range for 

Met

2.1.9 Acres protected from 

conversion through 

easements and feesimple purchases 

(thousands of acres)

1,574 1,727 1,924 2,225 2,494 2,828 2,549 Met +/- 

10 percent

2.2.1 CTA: Land with 

conservation applied to 

improve water quality 

(millions of acres) 

6.4 8.7 20.5 22.3 24.0 20.0 23.8 Exceeded*

+/- 

10 percent 

or from 

18.0 to 22.0

2.2.2 EQIP: Land with 

conservation applied to 

improve water quality 

(millions of acres)

13.6 14.8 14.5 14.2 14.5 16.0 13.6 Unmet

+/- 

10 percent 

or from 

14.4 to 17.6

2.2.3 Wetlands Reserve 

Program (WRP): 

Wetlands created, 

restored or enhanced 

(thousands of acres)

149.3 128.9 106.4 129.1 131.8 175.0 189.0 Met

+/- 

10 percent 

or from 

157.5 to 

192.5

2.3.1 Acres of WildlandUrban Interface (WUI) 

fuels treated to reduce 

the risk of catastrophic 

fire (millions of acres)

1.138 1.944 2.190 1.955 1.600 1.200 1.867 Exceeded*

+/- 

10 percent 

or from 

1.08 to 1.32

2.3.2 Percentage of acres 

treated in the WUI that 

have been identified in 

Community Wildfire 

Protection Plans

25% 36% 41% 45% 61% 75% 93% Exceeded +/- 

20 percent

2.3.3 Cumulative acres in the 

National Forest System 

that are in a desired 

condition relative to 

fire regime (millions of 

acres)

N/A 58.300 58.500 58.800 59.600 60.1 59.6 Met

+/- 1 percent 

or from 

59.5 to 60.7

Strategic Goal 3: Help America Promote Agricultural Production and Biotechnology 

Exports as America Works to Increase Food Security

Exhibit 5: Performance Summary Strategic Goal 3

Annual Performance Goals, 

Indicators, and Trends 2007 2008 2009 2010 2011

Fiscal Year 2012

Target Actual Result Range 

for Met

3.1.1 Cumulative number of genetically 

engineered plant lines reviewed 

by USDA and found safe for use 

in the environment

74 78 80 81 85 91 93 Exceeded 0
USDA: Managing for Results in Performing Its Many Vital Public Functions

 Fiscal Year 2012 | Summary of Performance and Financial Information 15

Strategic Goal 4: Ensure That All of America’s Children Have Access to Safe, Nutritious, 

and Balanced Meals 

Exhibit 6: Performance Summary Strategic Goal 4

Annual Performance Goals, 

Indicators, and Trends 2007 2008 2009 2010 2011

Fiscal Year 2012

Target Actual Result Range for 

Met

4.1.1 Participation levels for the 

major Federal nutrition 

assistance programs 

(millions per month): 

Supplemental Nutrition 

Assistance Program

26.5 28.4 33.5 40.3 44.7 47.1 46.3 Met

7.5 percent 

or from 

43.6 to 50.6

4.1.2 SNAP Payment Accuracy 

Rate Baseline: 2001 = 

91.34%

94.40 94.99 95.64 96.19 96.19 96.20 96.20 Met

+/- .33 or 

from 

95.9 to 96.5

4.1.3 Participation levels for the major Federal nutrition assistance programs (millions per day)

National School Lunch 

Program 30.5 30.9 31.2 31.6 31.8 32.0 32.0 Met

+/- 

5 percent 

or from 

30.4 to 33.6

School Breakfast Program 

10.1 8.7 11.7 11.6 12.1 12.7 12.8 Met

+/-5 percent 

or from 

12.1 to 13.3

4.1.4 Participation levels for the 

major Federal nutrition 

assistance programs 

(millions per month): The 

Special Supplemental 

Nutrition Program for 

Women, Infants, and 

Children (WIC) Program 

(average)

8.3 8.7 9.1 9.2 9.0 9.0 8.9 Met

+/- 

3 percent 

or from 

8.6 to 9.4

4.2.1 Application and usage 

level of nutrition guidance 

tools (billions of pieces 

of nutrition guidance 

distributed) Baseline: 2006 

= 1.5

2.6 3.2 3.5 1.5 3.0 4.0 6.6 Exceeded 3.5-4.5

4.3.1 4.3.1 Percent of broiler 

plants passing the carcass 

Salmonella Verification 

Testing Standard

N/A N/A N/A N/A 89% 90% 90% Met 0

4.3.2 Total illnesses for all FSIS 

products 423,126 457,797 428,280 470,137 491,353 405,178 479,621 Unmet 0

4.3.3 Increase percent of 

establishments with a food 

defense plan

39 46 62 74 75 76 77 Exceeded 0

4.4.1 Value of damage prevented 

and mitigated annually as a 

result of selected plant and 

animal health monitoring 

and surveillance efforts 

($billions)

1.37 1.38 1.05 1.07 1.11 1.15 1.19 Met* 1.07 to 1.23

*The target for measure 4.4.1 was projected to be deferred; actual results met the target.
Section 2: Summary of Performance Results and Financial Information

16 150th Anniversary | United States Department of Agriculture

Management Initiative: Enhance the USDA Human Resources Process to 

Recruit and Hire Skilled, Diverse Individuals to Meet the Program Needs of USDA

Management Initiatives are found in the USDA Strategic Plan on pages 34-37 and can be 

viewed at http://www.ocfo.usda.gov/sp2010/sp2010.pdf. The Department is reporting on this 

Management Initiative since it is a key performance measure in the Fiscal Year (FY) 2013 

Budget Summary and Annual Performance Plan. Additional information may be viewed at http://

www.obpa.usda.gov/budsum/FY13budsum.pdf.

Exhibit 7: Performance Summary Management Initiative

Annual Performance 

Goals, Indicators, and 

Trends

2007 2008 2009 2010 2011

Fiscal Year 2012

Target Actual Result Range for 

Met

Percent of all new hires that 

are veterans N/A N/A N/A N/A 7% 17 29.6 Exceeded*

+/- 5 percent 

or from 

16.2 to 17.9

Percent of all new hires that 

are minorities N/A N/A N/A N/A 21 35 19.49 Unmet*

+/- 5 percent 

or from 

33.3 to 36.8

*The target for the measure for veteran hiring was projected to be met; the actual results exceeded the target. The target for the measure for 

minority hiring was projected to be met; the actual result was unmet.
USDA: Managing for Results in Performing Its Many Vital Public Functions

 Fiscal Year 2012 | Summary of Performance and Financial Information 17

Challenges to Performance and Progress

Occasionally, diverse and unforeseeable circumstances impede USDA efforts to meet its goals. 

These circumstances are considered challenges to the Department’s performance progress or 

“unmet” measures. Each agency has provided a brief explanation, a “Description of Action for 

Unmet Measures,” to overcome these challenges.

Exhibit 8: Unmet Performance Goals for Strategic Goal 1

Annual Performance 

Goals, Indicators, and 

Trends

2007 2008 2009 2010 2011

Fiscal Year 2012

Target Actual Result Range for 

Met

1.1.2 Number of borrowers/ 

subscribers receiving 

new or improved 

telecommunication 

services (millions)

0.36 0.78 0.18 0.14 0.18 0.22 0.06 Unmet

+/– 

7 percent 

or from 

0.20 to 

0.24

1.2.3 Percentage of 

customers who are 

provided access to 

new and/or improved 

essential community 

facilities — Safety 

Facilities

2.7 2.8 5.0 3.2 4.3 4.7 3.7 Unmet

+/- 

.2 percent

or from

5.3 to 5.7

Description of Actions for Unmet Measures

Uncertainty caused by new Universal Service Fund and inter-carrier compensation revisions 

directly impacted the level of demand for the infrastructure loan program. Consequently, the 

program did not obligate all FY 2012 available funding. Despite the uncertainty, a level of 

investment is required annually by program borrowers and prospective borrowers. USDA

anticipates that loan demand for FY 2013 will be strong and on par with previous fiscal years.

The Department also believes that programs such as public safety/911 funding, which was 

expanded under the 2008 Farm Bill, will encourage new participation in the telecommunications 

infrastructure loan program. 

Despite the record breaking performance in total community facility (CF) obligations in 

FY 2012, the CF grant program was unable to meet the FY 2012 goal for safety facilities. 

Because many public safety projects rely heavily on grant funding to meet the needs of their 

community, there is a direct correlation between the available grant funding and the percentage 

of rural residents who are provided access to new and/or improved safety facilities. As a 

result of a significant decrease in overall CF grant funding from FY 2011 to 2012, increased 

targeted investments in community infrastructure, economic growth and quality jobs, and a 

shift in critical needs of rural communities toward investment in education and health care, the 

CF program fell short of meeting its performance goal for safety facilities. To learn more about 

Rural Development, visit http://www.rurdev.usda.gov/Home.html.
Section 2: Summary of Performance Results and Financial Information

18 150th Anniversary | United States Department of Agriculture

Exhibit 9: Unmet Performance Goal for Strategic Goal 2

Annual Performance Goals, 

Indicators, and Trends 2007 2008 2009 2010 2011

Fiscal Year 2012

Target Actual Result Range for 

Met

2.2.2 EQIP: Land with 

conservation applied to 

improve water quality 

(millions of acres)

13.6 14.8 14.5 14.2 14.5 16.0 13.6 Unmet

+/- 

10 percent 

or from 

14.4 to 17.6

Descriptions of Actions for Unmet Measures

In FY2012, USDA met its target for helping producers apply conservation practices to improve 

water quality for the CTA program, but did not meet the target for EQIP. While the Department 

did assist producers with implementing estimated 13.6 million EQIP conservation acres to 

improve water quality, it was short by 2.4 million acres.

Several factors contributed to the shortfall this year. Severe drought conditions and projected 

reduced income for producers impeded conservation practice implementation during the 2012 

crop season. EQIP is a voluntary program and since the drought created urgent operational 

needs, such as irrigation management, many producers chose to immediately implement only 

those practices which facilitated drought impact mitigation and to delay water quality related 

conservation practices. Many of the vegetative practices which were implemented did not 

establish due to lack of rainfall and will need to be reseeded in 2013, which will delay water 

quality benefits until subsequent years. Finally, the Water Quality Initiative was delivered late 

in the spring delaying associated conservation practice implementation until fiscal year 2013. 

Considerable improvement in the number of acres with improved water quality resulting from 

the Water Quality Initiative is thus anticipated for 2013. For additional information, visit the 

Natural Resources Conservation Service at http://www.nrcs.usda.gov/wps/portal/nrcs/site/

national/home/.

Exhibit 10: Unmet Performance Goal for Strategic Goal 4

Annual Performance 

Goals, Indicators, and 

Trends

2007 2008 2009 2010 2011

Fiscal Year 2012

Target Actual Result Range 

for Met

4.3.2 Total illnesses for 

all FSIS Products 423,126 457,797 428,280 470,137 491,353 405,178 479,621 Unmet 0

Descriptions of Actions for Unmet Measures

USDA achieves success when its estimate of actual illnesses is below the year-end target. 

Measure 4.3.2 is dominated by Salmonella-related illnesses. Thus, the Department’s efforts in 

that area will have the greatest impact on the measure. 

For Salmonella, USDA has tightened the performance standards for young chicken 

establishments. It is also testing all establishments over the next 2 years and gathering new data 

to update the performance standards for Salmonella in ground beef and ground poultry products. 

In addition, it is updating end-of-set letters, which go to establishments to inform them of the 
USDA: Managing for Results in Performing Its Many Vital Public Functions

 Fiscal Year 2012 | Summary of Performance and Financial Information 19

presence of Salmonella in their products. In addition, USDA recently set performance standards 

for Campylobacter in broilers and turkeys. Although this is a different pathogen than Salmonella,

it occurs in poultry products similar to the pathogen. Thus, the Department believes it will also 

help decrease illness numbers. 

USDA has changed its E. coli O157 sampling program so that it could increase the likelihood 

of detecting the pathogen in beef manufacturing trimmings. The Department also has 

developed new draft guidance to help very small meat and poultry plants meet initial validation 

requirements. In response to an outbreak investigation, USDA provided process guidance 

to in-plant personnel regarding critical operational parameters that should closely match 

more scientific methods. The Department has also begun analyzing certain samples of beef 

manufacturing trimmings collected under certain exiting E. coli O157:H7 verification sampling 

programs, analyzed for the six relevant Non-O157 Shiga-Toxin Producing Escherichia. For more 

information on Food Safety, visit http://www.fsis.usda.gov.

Exhibit 11: Unmet Performance Goal for Management Initiative

Annual Performance 

Goals, Indicators, and 

Trends

2007 2008 2009 2010 2011

Fiscal Year 2012

Target Actual Result Range for 

Met

Percent of all new hires that 

are minorities N/A N/A N/A N/A 21% 35% 19.49% Unmet

+/- 

5 percent 

or from 

33.3 to 36.8

Descriptions of Actions for Unmet Measures 

Despite the uncertainty with hiring and the budget for FY 2013, USDA anticipates continued 

improvement in the hiring of diverse individuals. Continued education and involvement with 

mission areas and agencies will provide a strong foundation for this next year. The Department 

believes that programs, such as the Diversity and Inclusion Plan, the cultural transformation 

officers’ quarterly meeting, and the continued monitoring of the cultural milestones and metrics, 

will encourage new participation in the hiring of diverse individuals. USDA is working to 

develop standardized models to help the agency better recruit and hire diverse individuals by 

targeting areas of recruitment to fit the Department’s needs. USDA will monitor the impact 

of the program changes on diversity and determine if adjustments are required for FY 2013 

performance targets. For more information on Departmental Management, visit http://www.

dm.usda.gov. 
Section 2: Summary of Performance Results and Financial Information

20 150th Anniversary | United States Department of Agriculture

Financial Statement Highlights

Budgetary Resources

The U.S. Department of Agriculture (USDA) receives most of its funding from appropriations 

authorized by Congress and administered by the U.S. Department of the Treasury. Total 

budgetary resources consist of the balance at the beginning of the year, appropriations received 

during the year, spending authority from offsetting collections, and other budgetary resources. 

The following exhibit presents fiscal year (FY) 2012 total budgetary resources by mission area.

Exhibit 12: FY 2012 Total Budgetary Resources by Mission Area ($billions)

Total budgetary resources were $225 billion for FY 2012 compared to $214 billion in FY 2011, 

an increase of $11 billion, or 5 percent.

Food Nutrition and Consumer Services $126

Rural Development $29

Research Education and Economics $4

Departmental Management $2

Farm and Foreign Agriculture Services $45

Natural Resources and Environment $15

Marketing and Regulatory Programs $3

Food Safety $1

20%

13%

0%

7%

1%

1% 1%

1%

56%
USDA: Managing for Results in Performing Its Many Vital Public Functions

 Fiscal Year 2012 | Summary of Performance and Financial Information 21

The following exhibit presents significant changes in total budgetary resources by mission area.

Exhibit 13: Significant Changes in Total Budgetary Resources by Mission Area ($billions)

Obligations Incurred

Obligations incurred were $187 billion for FY 2012, compared to $184 billion in FY 2011, 

an increase of $3 billion, or 2 percent. The following exhibit presents significant changes in 

obligations incurred.

Exhibit 14: Significant Changes in Obligations Incurred ($billions)

There were increases in obligations incurred at Food and Nutrition Service (FNS) for the 

Supplemental Nutrition Assistance (SNAP) and at Risk Management Agency (RMA) for Crop 

Insurance; the increases were offset by decreases at Farm Service Agency (FSA) for Disaster 

Relief Trust and Farm Loans and at the Commodity Credit Corporation (CCC) for Price Support.

12

10

8

6

4

2

-

(2)

(4)

Farm and Foreign Agriculture 

Services

-$3

$3

$11

Rural Development Food Nutrition and Consumer 

Services

4

3

2

1

0

-1

-2

-3

Commodity Credit 

Corporation

Farm Service Agency Risk Management 

Agency

Food and Nutrition 

Service

-$2

-$1

$3 $3
Section 2: Summary of Performance Results and Financial Information

22 150th Anniversary | United States Department of Agriculture

Net Outlays

Net Outlays were $144 billion for FY 2012, compared to $146 billion in FY 2011, a decrease of 

$2 billion or 1 percent. The following exhibit presents significant changes in net outlays.

Exhibit 15: Significant Changes in Net Outlays ($billions)

There were decreases in net outlays at RMA for Crop Insurance; at FSA for Disaster Relief Trust, 

Salaries and Expense, and Agriculture Disaster Transition Assistance; at CCC for Price Support; 

at Rural Development (RD) for Electric, Water, and Enviromental; these decreases were offset by 

an increase at FNS for SNAP.

Balance Sheet

Total Assets

Total assets for FY 2012 were $193 billion as of September 30, 2012, compared to $178 billion 

for FY 2011, an increase of $15 billion, or 8 percent. The following exhibit presents FY 2012 

total assets.

Exhibit 16: Total Assets ($billions)

5

4

3

2

1

0

-1

-2

-3

Risk Management 

Agency

Farm Service 

Agency

Rural 

Development

Food and 

Nutrition Service

Commodity 

Credit 

Corporation

-$2

-$1 -$1 -$1

$4

Direct Loan and Loan

Guarantees, Net $96

Fund Balance with Treasury $85

Accounts Receivable, Net $9

General Property, Plant

and Equipment, Net $3

44%

5% 1%

50%
USDA: Managing for Results in Performing Its Many Vital Public Functions

 Fiscal Year 2012 | Summary of Performance and Financial Information 23

Direct Loan and Loan Guarantees, Net, is the single largest asset on the USDA Balance 

Sheet. RD offers both direct and guaranteed loan products for rural housing and rural business 

infrastructure. These products represent 87 percent of the total Department loan programs. Loan 

programs administered by FSA represent 8 percent of the total. FSA supports farmers who are 

temporarily unable to obtain private commercial credit. The remaining 5 percent represents 

commodity loans and credit programs administered by the CCC. Their loans are used to improve 

economic stability and provide an adequate supply of agricultural commodities. CCC credit 

programs provide international food assistance, expand international markets, and provide 

domestic lowcost financing to protect farm income and prices. The following exhibit presents 

significant changes in total assets.

Exhibit 17: Significant Changes in Assets ($billions)

Total Liabilities

Total liabilities for FY 2012 were $153 billion as of September 30, 2012, compared to 

$136 billion for FY 2011, an increase of $17 billion, or 13 percent. The following exhibit 

presents total liabilities.

Exhibit 18: Total Liabilities ($billions)

$12

$10

$8

$6

$4

$2

$0

Accounts Receivable Direct Loan and Loan Guarantees Fund Balance with Treasury

$1

$3

$11

Debt $94

Other $49

Loan Guarantee Liability $4

Benefits Due and Payable $4

Accounts Payable $2

33%

3% 3%

0%

61%
Section 2: Summary of Performance Results and Financial Information

24 150th Anniversary | United States Department of Agriculture

Debt is the single largest liability on USDA’s balance sheet. It represents amounts owed 

primarily to the Treasury by CCC and RD. For CCC, the debt primarily represents financing 

to support direct and countercyclical, crop disaster, and loan deficiency programs. For RD, the 

debt primarily represents financing to support electric and housing loan programs. The following 

exhibit presents significant changes in total liabilities.

Exhibit 19: Significant Changes in Total Liabilities ($billions)

Loan Guarantee Liability Accounts Payable Debt Other Liabilities

$1 $1

$4

$10

$12

$10

$8

$6

$4

$2

$0
USDA: Managing for Results in Performing Its Many Vital Public Functions

 Fiscal Year 2012 | Summary of Performance and Financial Information 25

Net Cost of Operations

Net cost of operations for FY 2012 was $151 billion as of September 30, 2012, compared to 

$149 billion for FY 2011, an increase of $2 billion, or 1 percent. The following exhibit presents 

net cost of operations by strategic goal.

Exhibit 20: FY 2012 Net Cost of Operations by Strategic Goals ($billions)

Strategic Goal 1: Assist Rural Communities to Create Prosperity So They Are SelfSustaining, Repopulating, and Economically Thriving.

Strategic Goal 2: Ensure Our National Forests and Private Working Lands Are Conserved, 

Restored, and Made More Resilient to Climate Change, While Enhancing 

Our Water Resources.

Strategic Goal 3: Help America Promote Agricultural Production and Biotechnology Exports 

as America Works to Increase Food Security.

Strategic Goal 4: Ensure That All of America’s Children Have Access to Safe, Nutritious, and 

Balanced Meals.

Goal 4 $109

72%

Goal 1 $27

18%

Goal 2 $12

8%

Goal 3 $3

2%
Section 2: Summary of Performance Results and Financial Information

26 150th Anniversary | United States Department of Agriculture

The following exhibit presents significant changes in net cost of operations by strategic goal.

Exhibit 21: Significant Changes in FY 2012 Net Cost of Operations ($billions)

There were increases at FNS for SNAP and at RMA for Crop Insurance; these increases were 

offset by decreases at RD for Rural Electric; at AMS for Commodity Purchases; at CCC for 

Direct and Counter Cyclical Payments; and at FSA for Agriculture Disaster Transition Assistance 

and Disaster Relief Trust.

Stewardship Investments

Stewardship investments are substantial investments made by the Federal Government for 

the benefit of the Nation but are not physical assets owned by the Federal Government. When 

incurred, they are treated as expenses in determining the net cost of operations. However, 

these items merit special treatment so that users of Federal financial reports know the extent 

of investments that are made for long-term benefit. Such investments are measured in terms 

of expenses incurred for non-Federal physical property, human capital, and research and 

development. The following exhibit presents a comparison of stewardship investments.

Exhibit 22: Comparison of Stewardship Investments ($millions) 

5

4

3

2

1

0

-1

-2

Farm Service 

Agency

Commodity 

Credit 

Corporation

Agricultural 

Marketing 

Service

Rural 

Development

Risk 

Management 

Agency

Food and 

Nutrition 

Services

-$1 -$1 -$1 -$1

$3

$4

Non-Federal Physical Property Human Capital Research and Development

$71 $76

$623 $623

$2,128 $2,252

FY 2012

FY 2011

$2,500

$2,000

$1,500

$1,000

$500

$0
USDA: Managing for Results in Performing Its Many Vital Public Functions

 Fiscal Year 2012 | Summary of Performance and Financial Information 27

Section 3: Other Information

Management Challenges

The Reports Consolidation Act of 2000 requires the U.S. Department of Agriculture’s (USDA) 

Office of Inspector General (OIG) to report annually on the most serious management challenges 

USDA and its agencies face. To identify these Departmental challenges, OIG examined 

previously issued audit reports where corrective actions have yet to be taken. It also assessed 

ongoing investigative and audit work to ascertain significant vulnerabilities, and analyzed new 

programs and activities that could pose significant challenges due to their range and complexity. 

Nine challenges were included in OIG’s report this year. The challenges, and a discussion of how 

those challenges are being addressed, can be found on page 154 of the USDA FY 2012 Agency 

Financial Report, which is located at http://www.usda.gov/documents/USDA_AFR_2012.pdf.

Eliminating Improper Payments

In accordance with the Improper Payments Information Act of 2002, as amended by the 

Improper Payments Elimination and Recovery Act of 2010, and as implemented by the Office of 

Management and Budget (OMB) Circular No. A123, Appendix C, “Requirements for Effective 

Measurement and Remediation of Improper Payments,” USDA reviews its programs susceptible to 

significant improper payments and takes measures to reduce the amount and number of improper 

payments.

The Department’s goal is to continue to reduce improper payments and expand the implementation 

of the payment recapture/recovery auditing initiative during FY 2013. To learn more about how 

USDA is eliminating Improper Payments, see pages 33 and 172 of the USDA FY 2012 Agency 

Financial Report at http://www.usda.gov/documents/USDA_AFR_2012.pdf. 

Debt Management

USDA is one of the Federal Government’s largest providers of direct loans, with a receivables 

portfolio of approximately $117 billion. This represents about 13 percent of the nontax debt 

owed to the Federal Government. In fiscal year (FY) 1996, Congress passed the Debt Collection 

Improvement Act. As of June 30, 2012, USDA’s $4.5 billion in delinquent receivables represents 

a 49 percent decrease from the $8.8 billion in delinquencies reported for FY 1996. See Debt 

Management on page 34 of the USDA FY 2012 Agency Financial Report at http://www.usda.gov/

documents/USDA_AFR_2012.pdf.
Section 3: Other Information

28 150th Anniversary | United States Department of Agriculture

Web Links

Some of the topics included in this document are; information on USDA’s FY 2010-2015 

Strategic Plan, USDA’s FY 2013 Budget Summary and Annual Performance Plan, USDA’s FY 

2012 Agency Financial Report, and USDA’s FY 2012 Annual Performance Report. Additional 

information on these reports and Governmentwide performance-related information is located at 

the following Web sites:

Governmentwide performance information: http://www.performance.gov and http://www.usa.

gov/Contact/Engagement/Dashboards.shtml

USDA’s FY 2010-2015 Strategic Plan: http://www.ocfo.usda.gov/sp2010/sp2010.pdf

USDA’s FY 2013 Budget Summary and Annual Performance Plan: http://www.obpa.usda.gov/

budsum/FY13budsum.pdf.

USDA’s FY 2012 Agency Financial Report: http://www.usda.gov/documents/USDA_

AFR_2012.pdf.

USDA’s FY 2012 Annual Performance Report: http://www.usda.gov/wps/portal/usda/

usdahome?navid=PERFORMANCE_IMP
 Fiscal Year 2012 | Summary of Performance and Financial Information 29

Acronyms

A

AFR—Agency Financial Report 

AMS—Agricultural Marketing Service

APG—Agency Priority Goal

APHIS—Animal and Plant Health Inspection Service

APR—Annual Performance Report

ARS—Agricultural Research Service

C

CAP—Cross-Agency Priority 

CCC—Commodity Credit Corporation

CF—Community Facilites

CNPP—Center for Nutrition Policy and Promotion

CTA—Conservation Technical Assistance

D

DM—Departmental Management

E

EQIP—Environmental Quality Incentives Program

F

FAS—Foreign Agricultural Service

FCIC—Federal Crop Insurance Corporation

FFAS—Farm and Foreign Agricultural Services

FNCS—Food, Nutrition, and Consumer Services

FNS—Food and Nutrition Service

FRPP—Farm and Ranch Protection Program

FSA—Farm Service Agency

FSIS—Food Safety and Inspection Service

FTA—Free Trade Agreement

FY—Fiscal Year

G

GIPSA—Grain Inspection, Packers, and Stockyards Administration

M

MRP—Marketing and Regulatory Programs

N

NRCS—Natural Resources Conservation Service NRE—Natural Resources and Environment

O

OIG—Office of Inspector General OMB—Office of Management and Budget

P

PAR—Performance and Accountability Report

R

RD—Rural Development

REE—Research, Education, and Economics

RMA—Risk Management Agency

S

SNAP—Supplemental Nutrition Assistance Program SPFI—Summary of Performance and Financial Information

U

USDA—United States Department of Agriculture

W

WIC—Special Supplemental Nutrition Program for Women, 

Infants, and Children

WUI—Wildland-Urban Interface

WRP—Wetlands Reserve Program