68–117 PDF 

Calendar No. 155 

112TH CONGRESS REPORT " ! SENATE 1st Session 112–73 

AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG 

ADMINISTRATION, AND RELATED AGENCIES APPROPRIATIONS BILL, 2012 

SEPTEMBER 7, 2011.—Ordered to be printed 

Mr. KOHL, from the Committee on Appropriations, 

submitted the following 

R E P O R T 

[To accompany H.R. 2112] 

The Committee on Appropriations, to which was referred the bill 

(H.R. 2112) making appropriations for Agriculture, Rural Development, Food and Drug Administration, and Related Agencies programs for the fiscal year ending September 30, 2012, and for other 

purposes, reports the same with an amendment and recommends 

that the bill as amended do pass. 

New obligational authority 

Total of bill as reported to the Senate ....................$136,955,373,000 

Amount of 2011 appropriations ............................... 130,559,669,000 

Amount of 2012 budget estimate ............................ 132,278,780,000 

Amount of House allowance .................................... 125,359,837,000 

Bill as recommended to Senate compared to— 

2011 appropriations .......................................... ∂6,395,704,000 

2012 budget estimate ........................................ ∂4,676,593,000 

House allowance ................................................ ∂11,595,536,000 
(2) 

C O N T E N T S 

Page 

Breakdown by Title ................................................................................................. 4 

Summary of the Bill: 

Overview and Summary of the Bill ................................................................. 5 

Reports to Congress .......................................................................................... 6 

Title I: 

Agricultural Programs: 

Production, Processing, and Marketing: 

Office of the Secretary ....................................................................... 7 

Office of Tribal Relations ................................................................... 8 

Healthy Food Financing Initiative ................................................... 8 

Executive Operations ......................................................................... 9 

Office of the Chief Information Officer ............................................. 11 

Office of the Chief Financial Officer ................................................. 11 

Office of the Assistant Secretary for Civil Rights ........................... 12 

Office of Civil Rights .......................................................................... 12 

Office of the Assistant Secretary for Administration ...................... 13 

Agriculture Buildings and Facilities and Rental Payments ........... 13 

Hazardous Materials Management .................................................. 14 

Departmental Administration ........................................................... 14 

Office of the Assistant Secretary for Congressional Relations ....... 15 

Office of Communications .................................................................. 16 

Office of Inspector General ................................................................ 16 

Office of the General Counsel ........................................................... 17 

Office of the Under Secretary for Research, Education, and Economics .............................................................................................. 17 

Economic Research Service ............................................................... 18 

National Agricultural Statistics Service .......................................... 18 

Agricultural Research Service ........................................................... 19 

National Institute of Food and Agriculture ..................................... 21 

Office of the Under Secretary for Marketing and Regulatory Programs ............................................................................................... 28 

Animal and Plant Health Inspection Service .................................. 28 

Agricultural Marketing Service ........................................................ 33 

Grain Inspection, Packers and Stockyards Administration ............ 36 

Office of the Under Secretary for Food Safety ................................. 37 

Food Safety and Inspection Service .................................................. 37 

Office of the Under Secretary for Farm and Foreign Agricultural 

Services ............................................................................................ 38 

Farm Service Agency ......................................................................... 39 

Risk Management Agency ................................................................. 43 

Corporations: 

Federal Crop Insurance Corporation Fund ...................................... 43 

Commodity Credit Corporation Fund ............................................... 44 

Title II: 

Conservation Programs: 

Office of the Under Secretary for Natural Resources and Environment ........................................................................................................ 46 

Natural Resources Conservation Service ................................................ 46 

Title III: 

Rural Development Programs: 

Office of the Under Secretary for Rural Development ........................... 48 

Rural Housing Service .............................................................................. 49 

Rural Business—Cooperative Service ...................................................... 55 

Rural Energy for America Program ......................................................... 59 
Page

3 

Title III—Continued 

Rural Development Programs—Continued 

Rural Utilities Service .............................................................................. 60 

Title IV: 

Domestic Food Programs: 

Office of the Under Secretary for Food, Nutrition, and Consumer 

Services ................................................................................................... 64 

Food and Nutrition Service ...................................................................... 64 

Title V: Foreign Assistance and Related Programs: Foreign Agricultural Service .......................................................................................................................... 72 

Title VI: 

Related Agency and Food and Drug Administration: 

Food and Drug Administration ................................................................ 76 

Independent Agency: Farm Credit Administration ................................ 83 

Title VII: General Provisions .................................................................................. 85 

Program, Project, and Activity ............................................................................... 87 

Compliance With Paragraph 7, Rule XVI of the Standing Rules of the Senate .......................................................................................................................... 87 

Compliance With Paragraph 7(c), Rule XXVI of the Standing Rules of the 

Senate ................................................................................................................... 88 

Compliance With Paragraph 12, Rule XXVI of the Standing Rules of the 

Senate ................................................................................................................... 89 

Budgetary Impact of Bill ......................................................................................... 92 

Comparative Statement of Budget Authority ........................................................ 93 
(4) 

BREAKDOWN BY TITLE 

The amounts of obligational authority for each of the seven titles 

are shown in the following table. A detailed tabulation, showing 

comparisons, appears at the end of this report. Recommendations 

for individual appropriation items, projects and activities are carried in this report under the appropriate item headings. 

[In thousands of dollars] 

2011 2012 Committee 

recommendation 

Title I: Agricultural programs ..................................................................................... 29,490,110 24,959,852 

Title II: Conservation programs .................................................................................. 889,360 829,007 

Title III: Rural economic and community development programs ............................. 2,430,774 2,265,837 

Title IV: Domestic food programs ............................................................................... 95,065,478 105,519,631 

Title V: Foreign assistance and related programs ..................................................... 1,891,341 1,935,478 

Title VI: Related agencies and Food and Drug Administration ................................. 2,457,001 2,506,003 

Title VII: General provisions ........................................................................................ ¥1,664,395 ¥1,060,435 

Other appropriations (discretionary) ........................................................................... .............................. ..............................

Total, new budget (obligational) authority ................................................... 130,559,669 136,955,373 
(5) 

OVERVIEW AND SUMMARY OF THE BILL 

The Agriculture, Rural Development, Food and Drug Administration, and Related Agencies appropriations bill provides funding for 

a wide array of Federal programs, mostly in the U.S. Department 

of Agriculture [USDA]. These programs include agricultural research, education, and extension activities; natural resources conservation programs; farm income and support programs; marketing 

and inspection activities; domestic food assistance programs; rural 

housing, economic and community development, and telecommunication and electrification assistance; and various export and international activities of the USDA. 

The bill also provides funding for the Food and Drug Administration [FDA] and allows the use of collected fees for administrative 

expenses of the Farm Credit Administration [FCA]. 

Public Law 112–10, the Department of Defense and Full-Year 

Continuing Appropriations Act for 2011, included an across-theboard rescission in discretionary spending of 0.2 percent. This rescission is reflected in the fiscal year 2011 numbers included in 

this report. Additionally, H.R. 2112, the House Fiscal Year 2012 

Agriculture Appropriations Bill, included an across the board rescission in discretionary spending of 0.78 percent applied to titles 

I through VI. This rescission is reflected in the fiscal year 2012 

numbers included in this report. 

The discretionary programs and activities of USDA and FDA 

that are supported by this bill include high priority responsibilities 

entrusted to the Federal Government and its partners to protect 

human health and safety, contribute to economic recovery, and 

achieve policy objectives strongly supported by the American people. The ability to provide for these measures is made difficult by 

growing pressure on available levels of discretionary spending as a 

consequence of the overall public debate on Federal spending, revenues, and size of the Federal debt. 

Too often, the USDA programs funded by this bill are confused 

with farm subsidies and other mandatory spending more properly 

associated with multi-year farm bills. In contrast, this bill provides 

annual funding for programs familiar to all Americans such as protecting food safety through the Food Safety and Inspection Service 

and the Food and Drug Administration, which also plays a vital 

role in maintaining the safety of the Nation’s blood supply and 

availability of safe and effective medical products and other components of our health system. This bill also provides funding to fight 

against the introduction and spread of noxious or infectious and 

often invasive pests and disease that threaten our plant and animal health environments, as well as funding for many other missions of dire importance to the American people. 

As our economy witnesses increasing shifts of manufacturing capacity (and associated jobs) to foreign shores, we must never lose 
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sight that the one area of production which must be protected as 

inherently domestic is that of our food supply. That does not mean 

that certain foods need not appropriately rely on import and export 

markets, but it does mean that we must never surrender our ability to adequately and safely feed our own people. Without adequate 

levels of research, development, and regulatory resources, that 

threat of surrender will be ever present and our natural resource 

base will remain always at risk. Accordingly and in the context of 

overall pressures on spending and the competing priorities that the 

Committee faces, this bill as reported provides the proper amount 

of emphasis on agricultural, rural development, and other programs and activities funded by the bill. It is consistent with the 

subcommittee’s allocation for fiscal year 2012. 

All accounts in the bill have been closely examined to ensure 

that an appropriate level of funding is provided to carry out the 

programs of USDA, FDA, and FCA. Details on each of the accounts, the funding level, and the Committee’s justifications for the 

funding levels are included in the report. 

REPORTS TO CONGRESS 

The Committee has, throughout this report, requested agencies 

to provide studies and reports on various issues. The Committee 

utilizes these reports to evaluate program performance and make 

decisions on future appropriations. The Committee directs that all 

studies and reports be provided to the Committee on Appropriations as one electronic document per Department in an agreed 

upon format within 120 days after the date of enactment, unless 

an alternative submission schedule is specifically stated in the report request. 
(7) 

TITLE I 

AGRICULTURAL PROGRAMS 

PRODUCTION, PROCESSING, AND MARKETING

OFFICE OF THE SECRETARY

Appropriations, 2011 ............................................................................. $5,051,000 

Budget estimate, 2012 ........................................................................... 5,883,000 

House allowance .................................................................................... 4,260,000 

Committee recommendation ................................................................. 4,798,000 

The Secretary of Agriculture, assisted by the Deputy Secretary, 

Under Secretaries and Assistant Secretaries, Chief Information Officer, Chief Financial Officer, and members of their immediate 

staffs, directs and coordinates the work of the Department. This includes developing policy, maintaining relationships with agricultural organizations and others in the development of farm programs, and maintaining liaison with the Executive Office of the 

President and Members of Congress on all matters pertaining to 

agricultural policy. 

The general authority of the Secretary to supervise and control 

the work of the Department is contained in the Organic Act (7 

U.S.C. 2201–2202). The delegation of regulatory functions to Department employees and authorization of appropriations to carry 

out these functions is contained in 7 U.S.C. 450c–450g. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $4,798,000 for 

the Office of the Secretary. 

Animal Fighting.—The Committee is very concerned about reports of illegal animal fighting activities and directs the Secretary 

to work with relevant agencies on the most effective and proper 

means for investigating and enforcing laws and regulations regarding these activities. 

Food Safety Information Sharing.—The Committee urges the 

Secretary of Agriculture and the Secretary of Health and Human 

Services to enter into a memorandum of understanding between 

the relevant agencies within the Department of Health and Human 

Services, including the Food and Drug Administration and the Centers for Disease Control and Prevention, and the relevant agencies 

within the Department of Agriculture, including the Food Safety 

and Inspection Service, the Agricultural Research Service, and the 

Animal and Plant Health Inspection Service, to ensure the timely 

and efficient sharing of all information collected by such agencies 

related to foodborne pathogens, contaminants and illnesses. 

Zero Base Budgeting.—Anticipated constraints on Federal spending in the coming years will likely reduce the ability of this Committee to support increases for USDA activities beyond current lev-
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els, and may result in future reductions. The Committee believes 

it is necessary to carefully examine each agency’s budget requirements from a zero base, rather than by reviewing only incremental 

changes as they occur year to year. Such a change in method would 

both assist the Committee’s appropriating and oversight responsibilities and it will also require agencies to systematically examine 

all of their budgetary requirements on an annual basis to ensure 

they relate properly to their mission within the Department. Therefore, the Committee directs the Secretary to develop and present 

USDA’s fiscal year 2013 budget requirements from a zero base and 

such presentation should include an examination and justification 

of each program, project, and activity and allocation of FTEs and 

related items. The Secretary is further instructed to provide a report to the Committee on Appropriations of both Houses of Congress by November 1, 2011, on the status of this directive. 

OFFICE OF TRIBAL RELATIONS

Appropriations, 2011 ............................................................................. $498,000 

Budget estimate, 2012 ........................................................................... 1,015,000 

House allowance .................................................................................... 420,000 

Committee recommendation ................................................................. 473,000 

The Office of Tribal Relations will interact with USDA program 

agencies to understand pending actions that may affect Indian 

tribes. This interaction and programmatic knowledge will improve 

USDA’s ability to conduct consultation activities, thereby better addressing the needs of USDA tribal constituents and improving relationships. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $473,000 for the 

Office of Tribal Relations. 

HEALTHY FOOD FINANCING INITIATIVE

Appropriations, 2011 ............................................................................. ........................... 

Budget estimate, 2012 ........................................................................... $35,000,000 

House allowance .................................................................................... ........................... 

Committee recommendation ................................................................. ........................... 

The Healthy Food Financing Initiative is intended as a new program to help create opportunities to place grocery stores and other 

retail outlets in urban and rural areas where better access to items 

of high nutritional quality are needed. 

COMMITTEE RECOMMENDATIONS

The Committee does not recommend an appropriation for the 

Healthy Food Financing Initiative. While the Committee is unable 

to provide additional budget authority specifically for this new activity, loans and grants are made available under the Rural Development title of this bill which may, in part, be used toward the objectives of this initiative in rural areas where individuals may reside many miles from the nearest food outlet. Additionally, elsewhere in this bill resources are available for economic and policy 

analysis that can be used to determine and help develop policy objectives that can ultimately achieve a more efficient and effective 

distribution of nutritional resources to the American people. As the 
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Department moves forward in this effort, the Secretary is directed 

to establish a system of metrics to measure the outcomes of such 

activities and to report to the Committee in this regard. 

EXECUTIVE OPERATIONS

Executive operations were established as a result of the reorganization of the Department to provide a support team for USDA 

policy officials and selected departmentwide services. Activities 

under the executive operations include the Office of the Chief Economist, the National Appeals Division, the Office of Budget and Program Analysis, the Office of Homeland Security and Emergency 

Coordination and the Office of Advocacy and Outreach. 

OFFICE OF THE CHIEF ECONOMIST

Appropriations, 2011 ............................................................................. $12,008,000 

Budget estimate, 2012 ........................................................................... 15,196,000 

House allowance .................................................................................... 10,623,000 

Committee recommendation ................................................................. 11,408,000 

The Office of the Chief Economist advises the Secretary of Agriculture on the economic implications of Department policies and 

programs. The Office serves as the single focal point for the Nation’s economic intelligence and analysis, risk assessment, and costbenefit analysis related to domestic and international food and agriculture issues, provides policy direction for renewable energy development, conducts analyses of climate change impacts on agriculture and forestry, and is responsible for coordination and review 

of all commodity and aggregate agricultural and food-related data 

used to develop outlook and situation material within the Department. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $11,408,000 for 

the Office of the Chief Economist. 

NATIONAL APPEALS DIVISION

Appropriations, 2011 ............................................................................. $14,225,000 

Budget estimate, 2012 ........................................................................... 15,254,000 

House allowance .................................................................................... 11,997,000 

Committee recommendation ................................................................. 13,514,000 

The National Appeals Division conducts administrative hearings 

and reviews of adverse program decisions made by the Rural Development mission area, the Farm Service Agency, the Risk Management Agency, and the Natural Resources Conservation Service. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $13,514,000 for 

the National Appeals Division. 

OFFICE OF BUDGET AND PROGRAM ANALYSIS

Appropriations, 2011 ............................................................................. $9,417,000 

Budget estimate, 2012 ........................................................................... 9,436,000 

House allowance .................................................................................... 7,942,000 

Committee recommendation ................................................................. 8,946,000 
10 

The Office of Budget and Program Analysis provides direction 

and administration of the Department’s budgetary functions including development, presentation, and execution of the budget; reviews program and legislative proposals for program, budget, and 

related implications; analyzes program and resource issues and alternatives, and prepares summaries of pertinent data to aid the 

Secretary and departmental policy officials and agency program 

managers in the decisionmaking process; and provides departmentwide coordination for and participation in the presentation of budget-related matters to the committees of the Congress, the media, 

and interested public. The Office also provides departmentwide coordination of the preparation and processing of regulations and legislative programs and reports. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $8,946,000 for 

the Office of Budget and Program Analysis. 

OFFICE OF HOMELAND SECURITY AND EMERGENCY COORDINATION

Appropriations, 2011 ............................................................................. $1,496,000 

Budget estimate, 2012 ........................................................................... 4,272,000 

House allowance .................................................................................... 1,262,000 

Committee recommendation ................................................................. 1,421,000 

The Office of Homeland Security and Emergency Coordination 

formulates emergency preparedness policies and objectives for 

USDA. The Office directs and coordinates all of the Department’s 

program activities that support USDA emergency programs and liaison functions with the Congress, the Department of Homeland 

Security, and other Federal departments and agencies involving 

homeland security, natural disasters, other emergencies, and agriculture-related international civil emergency planning and related 

activities. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $1,421,000 for 

the Office of Homeland Security and Emergency Coordination. 

OFFICE OF ADVOCACY AND OUTREACH

Appropriations, 2011 ............................................................................. $1,422,000 

Budget estimate, 2012 ........................................................................... 7,000,000 

House allowance .................................................................................... 1,120,000 

Committee recommendation ................................................................. 1,351,000 

The purpose of the Office of Advocacy and Outreach is to increase the accessibility of USDA programs to underserved constituents. The Office coordinates the activities of various USDA programs and agencies that have as a mission purpose the provision 

of assistance to underserved constituents and generally encourages 

and advocates for full participation by all Americans in USDA programs. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $1,351,000 for 

the Office of Advocacy and Outreach. 
11 

OFFICE OF THE CHIEF INFORMATION OFFICER

Appropriations, 2011 ............................................................................. $39,920,000 

Budget estimate, 2012 ........................................................................... 63,579,000 

House allowance .................................................................................... 33,735,000 

Committee recommendation ................................................................. 36,031,000 

The Office of the Chief Information Officer was established in 

August 1996 (40 U.S.C. 1401 et seq.), pursuant to the ClingerCohen Act of 1996, which required the establishment of a Chief Information Officer for major Federal agencies. This Office provides 

policy guidance, leadership, coordination, and direction to the Department’s information management and information technology 

investment activities in support of USDA program delivery, and is 

the lead office in USDA e-gov efforts. The Office provides longrange planning guidance, implements measures to ensure that 

technology investments are economical and effective, coordinates 

interagency information resources management projects, and implements standards to promote information exchange and technical 

interoperability. In addition, the Office of the Chief Information Officer is responsible for certain activities financed under the Department’s Working Capital Fund (7 U.S.C. 2235). The Office also provides telecommunication and automated data processing [ADP] 

services to USDA agencies through the National Information Technology Center with locations in Fort Collins, Colorado, Kansas 

City, Missouri and Washington, DC. Direct ADP operational services are also provided to the Office of the Secretary, the Office of 

the General Counsel, the Office of Communications, the Office of 

the Chief Financial Officer, and Departmental Management. 

On November 28, 2004, the information technology staffs of the 

Service Center Agencies [SCA] were converged into one IT organization within the office of the Chief Information Officer; this converged organization is named Information Technology Services and 

replaces a network of cross-agency teams used to coordinate IT infrastructure investment within the SCA and allows for unified 

management of the IT infrastructure. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $36,031,000 for 

the Office of the Chief Information Officer. This amount includes 

$20,000,000 to support cybersecurity requirements of the Department. 

OFFICE OF THE CHIEF FINANCIAL OFFICER

Appropriations, 2011 ............................................................................. $6,247,000 

Budget estimate, 2012 ........................................................................... 6,566,000 

House allowance .................................................................................... 5,269,000 

Committee recommendation ................................................................. 5,935,000 

The Office of the Chief Financial Officer is responsible for the 

dual roles of Chief Financial Management Policy Officer and Chief 

Financial Management Advisor to the Secretary and mission area 

heads. The Office provides leadership for all financial management, 

accounting, travel, Federal assistance, and strategic planning performance measurement activities within the Department. The Office is also responsible for the management and operation of the 
12 

National Finance Center and the Departmental Working Capital 

Fund. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $5,935,000 for 

the Office of the Chief Financial Officer. The Committee notes its 

concern regarding the period of time with which the Department 

has operated with a vacancy in the post of Chief Financial Officer. 

The Department is encouraged to seek qualified candidates to assume this position and the Committee reminds the Secretary of the 

statutory requirements of 31 U.S.C 902. 

OFFICE OF THE ASSISTANT SECRETARY FOR CIVIL RIGHTS

Appropriations, 2011 ............................................................................. $893,000 

Budget estimate, 2012 ........................................................................... 895,000 

House allowance .................................................................................... 754,000 

Committee recommendation ................................................................. 848,000 

The Office of the Assistant Secretary for Civil Rights provides 

oversight of civil rights and related functions. This includes coordination of the administration of civil rights laws and regulations for 

employees of the Department of Agriculture and participants in 

programs of the Department, and ensuring compliance with civil 

rights laws. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $848,000 for the 

Office of the Assistant Secretary for Civil Rights. 

OFFICE OF CIVIL RIGHTS

Appropriations, 2011 ............................................................................. $22,692,000 

Budget estimate, 2012 ........................................................................... 24,922,000 

House allowance .................................................................................... 19,138,000 

Committee recommendation ................................................................. 21,558,000 

The Office of Civil Rights provides overall leadership responsibility for all departmentwide civil rights activities. These activities 

include employment opportunity as well as program non-discrimination policy development, analysis, coordination, and compliance. 

The Office is responsible for providing leadership in facilitating the 

fair and equitable treatment of USDA employees, and for monitoring program activities to ensure that all USDA programs are delivered in a non-discriminatory manner. The Office’s outreach functions provide leadership, coordination, facilitation, and expertise to 

internal and external partners to ensure equal and timely access 

to USDA programs for all constituents, with emphasis on the underserved, through information sharing, technical assistance, and 

training. 

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $21,558,000 for 

the Office of Civil Rights. 
13 

OFFICE OF THE ASSISTANT SECRETARY FOR ADMINISTRATION

Appropriations, 2011 ............................................................................. $804,000 

Budget estimate, 2012 ........................................................................... 820,000 

House allowance .................................................................................... 678,000 

Committee recommendation ................................................................. 764,000 

The Office of the Assistant Secretary for Administration directs 

and coordinates the work of the departmental management offices 

in carrying out the laws enacted by the Congress relating to real 

and personal property management, personnel management, ethics, 

and other general administrative functions. In addition, the Office 

of the Assistant Secretary for Administration is responsible for certain activities financed under the Department’s Working Capital 

Fund (7 U.S.C. 2235). 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $764,000 for the 

Office of the Assistant Secretary for Administration. 

AGRICULTURE BUILDINGS AND FACILITIES AND RENTAL PAYMENTS

Appropriations, 2011 ............................................................................. $246,476,000 

Budget estimate, 2012 ........................................................................... 255,191,000 

House allowance .................................................................................... 199,825,000 

Committee recommendation ................................................................. 230,416,000 

Department headquarters presently operates in a two-building 

Government-owned complex in downtown Washington, DC, the 

George Washington Carver Center in Beltsville, Maryland, and in 

leased buildings in the Metropolitan Washington, DC, area. Annual 

appropriations finance payments to the General Services Administration [GSA] for leased space and related payments are made to 

the Department of Homeland Security for perimeter security services at USDA occupied space. Under this arrangement USDA operates, maintains, and repairs the D.C. complex buildings, in lieu of 

rental payments for the two-building D.C. complex and the George 

Washington Carver Center. GSA charges commercial rent rates 

pursuant to the Public Buildings Amendments of 1972, and agencies may review rate procedures and exercise rights to appeal. For 

the last several years the Department has implemented a strategic 

space plan to locate staff more efficiently, renovate its buildings, 

and eliminate safety hazards, particularly in the Agriculture South 

Building. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $230,416,000 for 

Agriculture Buildings and Facilities and Rental Payments. 

The following table reflects the Committee’s specific recommendations for this account as compared to the fiscal year 2011 

and budget request levels: 
14 

[In thousands of dollars] 

2011 enacted 2012 budget 

request 

Committee 

recommendation 

Rental Payments ........................................................................................ 178,113 164,470 164,470 

Building Operations ................................................................................... 54,890 76,921 52,146 

DHS Building Security ................................................................................ 13,473 13,800 13,800 

Total .............................................................................................. 246,476 255,191 230,416 

HAZARDOUS MATERIALS MANAGEMENT

Appropriations, 2011 ............................................................................. $3,992,000 

Budget estimate, 2012 ........................................................................... 5,125,000 

House allowance .................................................................................... 3,367,000 

Committee recommendation ................................................................. 3,792,000 

Under the Comprehensive Environmental Response, Compensation, and Liability Act and the Resource Conservation and Recovery Act, the Department has the responsibility to meet the same 

standards regarding the storage and disposition of hazardous materials as private businesses. The Department is required to contain, 

clean up, monitor, and inspect for hazardous materials in areas 

under the Department’s jurisdiction. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $3,792,000 for 

Hazardous Materials Management. 

DEPARTMENTAL ADMINISTRATION

Appropriations, 2011 ............................................................................. $29,647,000 

Budget estimate, 2012 ........................................................................... 35,787,000 

House allowance .................................................................................... 16,381,000 

Committee recommendation ................................................................. 28,165,000 

Departmental Administration is comprised of activities that provide staff support to top policy officials and overall direction and 

coordination of administrative functions of the Department. These 

activities include departmentwide programs for human resource 

management, ethics, occupational safety and health management, 

real and personal property management, procurement, contracting, 

motor vehicle and aircraft management, supply management, 

emergency preparedness, small and disadvantaged business utilization, and the regulatory hearing and administrative proceedings 

conducted by the Administrative Law Judges and Judicial Officer. 

Departmental Administration is also responsible for representing 

USDA in the development of governmentwide policies and initiatives; and analyzing the impact of governmentwide trends and developing appropriate USDA principles, policies, and standards. In 

addition, Departmental Administration engages in strategic planning and evaluates programs to ensure USDA-wide compliance 

with applicable laws, rules, and regulations pertaining to administrative matters for the Secretary and general officers of the Department. 
15 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $28,165,000 for 

Departmental Administration. 

Efficiency of Operations.—The Committee recognizes the special 

management challenges facing the Department in view of serious 

constraints in fiscal resources, the requirements of a vastly dispersed workforce, and expectations of the public for continuity of 

vital services. It is clear that recent reductions in discretionary 

spending and the likely continuation of austere measures in the 

near term present significant difficulties to those charged with program execution. The Committee fully recognizes the need, and expects the Department to achieve the most efficient methods possible to maintain the responsibilities of governance for the benefit 

of both the customers of USDA and the personnel charged with carrying out the missions of the Department. 

The Committee expects that any substantive changes to the functions and organization of USDA follow a thoughtful analysis of implications for budgetary resources, services to customers and employees, and inherent dynamics within the Department that might 

result. Toward that objective, before moving forward with the implementation of any substantive reorganization, the Department is 

instructed to conduct a detailed analysis of the savings, efficiencies, 

and implications of these changes. In addition, an understanding of 

the methodology used for determining these factors and some form 

of demonstration of the results anticipated is required. Any timetable for implementation of the changes suggested obviously will be 

driven by the fiscal resources available and it may be prudent to 

give consideration to a tiered implementation as conditions dictate 

rather than a full scale Departmental shift that would be far more 

complex and potentially expensive. The Secretary is instructed to 

provide a report, consistent with the guidance outlined above, to 

the Committees on Appropriations of both Houses of Congress not 

less than 60 days prior to the implementation of any Departmental 

reorganization. The Secretary is further reminded of the reprogramming instructions set forth elsewhere in this bill for the 

purpose of any implementation stage of a proposed reorganization. 

The Committee does not provide a separate appropriation for an 

acquisition workforce and expects the functions of that proposed activity to be included as part of the efficiencies to be undertaken in 

the guidance set forth under this heading. 

OFFICE OF THE ASSISTANT SECRETARY FOR CONGRESSIONAL

RELATIONS

Appropriations, 2011 ............................................................................. $3,869,000 

Budget estimate, 2012 ........................................................................... 4,041,000 

House allowance .................................................................................... 3,262,000 

Committee recommendation ................................................................. 3,676,000 

The Office of the Assistant Secretary for Congressional Relations 

maintains a liaison with the Congress and White House on legislative matters. It also provides for overall direction and coordination 

in the development and implementation of policies and procedures 

applicable to the Department’s intra- and inter-governmental relations. 
16 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $3,676,000 for 

the Office of the Assistant Secretary for Congressional Relations. 

The Committee allows these funds to be transferred to support 

congressional relations’ activities at the agency level. Within 30 

days from the enactment of this act, the Secretary shall notify the 

House and Senate Committees on Appropriations on the allocation 

of these funds by USDA agency, along with an explanation for the 

agency-by-agency distribution of the funds as well as the staff 

years funded by these transfers. 

OFFICE OF COMMUNICATIONS

Appropriations, 2011 ............................................................................. $9,480,000 

Budget estimate, 2012 ........................................................................... 9,722,000 

House allowance .................................................................................... 7,995,000 

Committee recommendation ................................................................. 8,105,000 

The Office of Communications provides direction, leadership, and 

coordination in the development and delivery of useful information 

through all media to the public on USDA programs. The Office 

serves as the liaison between the Department and the many associations and organizations with an interest in USDA’s mission 

areas. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $8,105,000 for 

the Office of Communications. 

OFFICE OF INSPECTOR GENERAL

Appropriations, 2011 ............................................................................. $88,548,000 

Budget estimate, 2012 ........................................................................... 90,755,000 

House allowance .................................................................................... 79,376,000 

Committee recommendation ................................................................. 84,121,000 

The Office of Inspector General (OIG) was established October 

12, 1978, by the Inspector General Act of 1978 (Public Law 95– 

452). This act expanded and provided specific authorities for the activities of OIG which had previously been carried out under the 

general authorities of the Secretary of Agriculture. 

The Office is administered by an inspector general who reports 

directly to the Secretary of Agriculture. Functions and responsibilities of this Office include direction and control of audit and investigative activities within the Department, formulation of audit and 

investigative policies and procedures regarding Department programs and operations, and analysis and coordination of programrelated audit and investigation activities performed by other Department agencies. 

The activities of this Office are designed to assure compliance 

with existing laws, policies, regulations, and programs of the Department’s agencies, and to provide appropriate officials with the 

means for prompt corrective action where deviations have occurred. 

The scope of audit and investigative activities is large and includes 

administrative, program, and criminal matters. These activities are 

coordinated, when appropriate, with various audit and investiga-
17 

tive agencies of the executive and legislative branches of the Government. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $84,121,000 for 

the Office of Inspector General. In addition, the recommendation 

includes funding for OIG to address violations of section 26 of the 

Animal Welfare Act (7 U.S.C. 2156) and to coordinate with State 

and local law enforcement personnel in this effort. 

OFFICE OF THE GENERAL COUNSEL

Appropriations, 2011 ............................................................................. $41,416,000 

Budget estimate, 2012 ........................................................................... 46,058,000 

House allowance .................................................................................... 34,929,000 

Committee recommendation ................................................................. 39,345,000 

The Office of the General Counsel provides all legal advice, counsel, and services to the Secretary and to all agencies, offices, and 

corporations of the Department. The Office represents the Department in administrative proceedings; non-litigation debt collection 

proceedings; State water rights adjudications; proceedings before 

the Environmental Protection Agency, Interstate Commerce Commission, Federal Maritime Administration, and International Trade 

Commission; and, in conjunction with the Department of Justice, in 

judicial proceedings and litigation. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $39,345,000 for 

the Office of the General Counsel. 

OFFICE OF THE UNDER SECRETARY FOR RESEARCH, EDUCATION, AND

ECONOMICS

Appropriations, 2011 ............................................................................. $893,000 

Budget estimate, 2012 ........................................................................... 911,000 

House allowance .................................................................................... 754,000 

Committee recommendation ................................................................. 848,000 

The Office of the Under Secretary for Research, Education, and 

Economics provides direction and coordination in carrying out the 

laws enacted by the Congress for food and agricultural research, 

education, extension, and economic and statistical information. The 

Office has oversight and management responsibilities for the Agricultural Research Service; National Institute of Food and Agriculture; Economic Research Service; and National Agricultural Statistics Service. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $848,000 for the 

Office of the Under Secretary for Research, Education, and Economics. 
18 

ECONOMIC RESEARCH SERVICE

Appropriations, 2011 ............................................................................. $81,814,000 

Budget estimate, 2012 ........................................................................... 85,971,000 

House allowance .................................................................................... 69,454,000 

Committee recommendation ................................................................. 77,723,000 

The Economic Research Service [ERS] provides economic and 

other social science research and analysis for public and private decisions on agriculture, food, the environment, and rural America. 

The information that ERS produces is for use by the general public 

and to help the executive and legislative branches develop, administer, and evaluate agricultural and rural policies and programs. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $77,723,000 for 

the Economic Research Service, which includes continued funding 

for the Organic Production and Market Data Initiative. 

NATIONAL AGRICULTURAL STATISTICS SERVICE

Appropriations, 2011 ............................................................................. $156,447,000 

Budget estimate, 2012 ........................................................................... 165,421,000 

House allowance .................................................................................... 148,340,000 

Committee recommendation ................................................................. 152,616,000 

The National Agricultural Statistics Service [NASS] administers 

the Department’s program of collecting and publishing current national, State, and county agricultural statistics. These statistics 

provide accurate and timely projections of current agricultural production and measures of the economic and environmental welfare 

of the agricultural sector which are essential for making effective 

policy, production, and marketing decisions. NASS also furnishes 

statistical services to other USDA and Federal agencies in support 

of their missions, and provides consulting, technical assistance, and 

training to developing countries. 

NASS is also responsible for administration of the Census of Agriculture, which is taken every 5 years and provides comprehensive 

data on the agricultural economy including: data on the number of 

farms, land use, production expenses, farm product values, value of 

land and buildings, farm size and characteristics of farm operators, 

market value of agricultural production sold, acreage of major 

crops, inventory of livestock and poultry, and farm irrigation practices. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $152,616,000 for 

the National Agricultural Statistics Service. Included in this 

amount is $41,639,000 for the Census of Agriculture. 

Chemical Use Data Series.—The Committee believes that the 

Chemical Use Data Series provides timely, valuable information on 

fertilizer and chemical user data on major field crops and selected 

specialty crops, and is pleased that NASS is continuing the collection and analysis of chemical use data, as well as practices such 

as integrated pest management. 

Organic Production Survey.—In 2008, NASS conducted the firstever comprehensive Organic Production Survey as a follow-on sur-
19 

vey to the 2007 Census of Agriculture. Published in February 2010, 

the survey has provided information vital to the organic sector’s 

growth. The Committee believes the Organic Production Survey 

should be conducted on a regular basis to properly assess the characteristics, trends, and changes in the sector. 

AGRICULTURAL RESEARCH SERVICE

SALARIES AND EXPENSES

Appropriations, 2011 ............................................................................. $1,133,230,000 

Budget estimate, 2012 ........................................................................... 1,137,690,000 

House allowance .................................................................................... 987,581,000 

Committee recommendation ................................................................. 1,094,647,000 

The Agricultural Research Service [ARS] is responsible for conducting basic, applied, and developmental research through its 

major program areas of New Products/Product Quality/Value 

Added; Livestock/Crop Production; Food Safety; Livestock/Crop Protection; Human Nutrition; and Environmental Stewardship. The 

research applies to a wide range of goals; commodities; natural resources; fields of science; and geographic, climatic, and environmental conditions. 

ARS is also responsible for the Abraham Lincoln National Agricultural Library which provides agricultural information and library services through traditional library functions and modern 

electronic dissemination to agencies of the USDA, public and private organizations, and individuals. 

As the U.S. Department of Agriculture’s in-house agricultural research unit, ARS has major responsibilities for conducting and 

leading the national agricultural research effort. It provides initiative and leadership in five areas: research on broad regional and 

national problems, research to support Federal action and regulatory agencies, expertise to meet national emergencies, research 

support for international programs, and scientific resources to the 

executive branch and Congress. 

The mission of ARS research is to develop and transfer solutions 

to agricultural problems of high national priority and provide information access and dissemination to ensure high-quality, safe food 

and other agricultural products; assess the nutritional needs of 

Americans; sustain a competitive agricultural economy; enhance 

the natural resource base and the environment; and provide economic opportunities for rural citizens, communities, and society as 

a whole. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $1,094,647,000 

for salaries and expenses of the Agricultural Research Service. The 

Committee does not concur with the President’s budget request regarding the termination of extramural research. 

Aerial Application Research.—The Committee recognizes the importance of ARS’s Aerial Application Technology Program. The program conducts innovative research making aerial applications more 

efficient, effective and precise. Research for aerial application 

serves the public good as a vital tool for the future, as agriculture 
20 

strives to meet the food, fiber and bio-energy demands of a growing 

population. 

Classical Plant Breeding.—The Committee is aware of the need 

to enhance classical plant breeding, and encourages ARS to invest 

in research to improve genetic resources and cultivars for the benefit of U.S. producers, seed companies, processors and consumers. 

This research should focus on breeding improved germplasm and 

varieties with higher yields, improved disease and pest resistance 

and resilience to weather extremes. Additionally, methods and tools 

should be developed to enable classical breeders to choose better 

breeding parents and speed up variety development. 

Commodity Processing.—The Committee encourages ARS to consider research to improve the processing of commodities that 

produce high quality, nutritious products for the American people, 

including sweet potatoes. These commodities have created an unprecedented need for basic and applied research in the development 

of new innovative processing technologies and have the potential to 

create new market opportunities, increase employment in rural 

America and provide consumers with healthy and readily available 

foods. 

Domestic and Bighorn Sheep.—The Committee recognizes the 

challenges caused by infectious disease problems arising from wildlife-domestic animal agriculture interactions, particularly between 

domestic sheep and wild bighorn sheep. Research has recently produced an experimental vaccine to protect bighorn populations from 

disease, but much work still needs to be done in this area. The 

Committee encourages ARS to work to determine the role of domestic sheep in causing die-offs of bighorn sheep from respiratory disease and develop methods to reduce transmission and enhance immunity in domestic and bighorn sheep. 

Emerging Cereal Rust Diseases.—The Committee is aware that 

emerging cereal rust diseases are a threat to domestic and world 

food supplies. Therefore, the Department should continue to dedicate funding to speed efforts to combat cereal rust disease, including development of Ug99-resistant wheat varieties. 

Human Nutrition Research.—The Committee remains concerned 

about the high rates of obesity in this country, and believes that 

research into human nutrition is important to help prevent childhood obesity and the medical issues obesity brings. Therefore, the 

Committee encourages ARS to continue research relating to both 

childhood and adult obesity. 

Humanitarian Efforts.—The Committee encourages USDA to 

work with the Department of Defense to coordinate on agricultural 

research and technology transfer to further the country’s humanitarian mission throughout the world. 

National Agricultural Library.—The Committee encourages the 

Agricultural Research Service to maintain a focus on agriculturerelated legal issues within the National Agricultural Library. The 

Committee notes that as the agriculture sector of the national economy evolves, there is a necessity that these agriculture-related 

legal issues be addressed on an increasingly frequent basis. Further, agricultural-related legal issues are increasingly complex and 

the impact of these legal issues continues to broaden in scope. 
21 

Pear Genetics and Genomics.—The Committee directs ARS to 

provide a report detailing specifically its year-by-year plans to locate and allocate resources including staff, facilities and equipment 

for pear genetics and genomics throughout ARS. This report will 

also provide an estimate of how long it will take to meet the goals 

of the Pyrus plant improvement roadmap and funding that will be 

required to meet the terms of that roadmap. 

Pollinator Research.—The Committee is aware that pollinators 

are responsible for the production of one-third of the Nation’s food 

supply, but the number of managed honeybee colonies in the 

United States has dropped in half since 1940. Because of the importance of pollinators in the production of the Nation’s food supply 

and their impact on the stability of our agricultural economy, the 

Committee encourages ARS to continue to dedicate resources to 

protecting the health of both honeybees and other native bees, including continued research into colony collapse disorder. 

Pulse Health Initiative.—The Committee continues to recognize 

the need to investigate the ability of pulse crops—dry beans, dry 

peas, lentils, and chickpeas—to provide solutions to critical health 

issues including but not limited to obesity, diabetes, cardiovascular 

disease, and cancer; and to increase the consumption of pulse crops 

by improving their functionality in baked goods and end use as a 

food and food ingredient through the study of milling, extrusion, 

extraction, and cooking properties. The Committee also recognizes 

the potential to improve the sustainability of agricultural rotations 

and reduce green house gas emissions by improving the nitrogen 

fixing abilities of pulse crops. The Committee recommends ARS 

provide adequate funding to establish the Pulse Health Initiative. 

Research Facilities.—The Committee concurs with the budget 

proposal to close 12 research laboratories at 10 locations. The Committee further directs, in concurrence with the budget proposal, 

that no other research facilities be closed during fiscal year 2012. 

Additionally, while the Committee understands the need to continually look for ways to increase efficiency and improve research 

outcomes, laboratory closures often cost money in the short-term 

and do not necessarily provide real savings. Therefore, the Committee directs ARS to evaluate its capital asset requirements for 

necessary coordination with ongoing and emerging research opportunities. As part of this evaluation, ARS should provide opportunity 

for public comment in order to incorporate the priorities of all interested stakeholders, including ARS and other scientists, and 

users of ARS data. Finally, in future budget requests, the Committee directs ARS to identify any costs associated with any proposed laboratory closures, including decommissioning, relocation or 

other effects on employees, and any other additional costs. 

Shellfish Research.—The Committee is aware of ARS’ work on 

shellfish research to address shellfish diseases and other factors, 

and encourages ARS to continue this work to help improve the economics of shellfish farming and encourage expanded production 

and job opportunities. 

NATIONAL INSTITUTE OF FOOD AND AGRICULTURE

Section 7511(f)(2) of the Food, Conservation, and Energy Act of 

2008 amends the Department of Agriculture Reorganization Act of 
22 

1994 (7 U.S.C. 6971) by establishing an agency to be known as the 

National Institute of Food and Agriculture [NIFA]. The Secretary 

transferred to the Director of NIFA, effective October 1, 2009, all 

authorities administered by the Administrator of the Cooperative 

State, Research, Education and Extension Service. The mission is 

to work with university partners and customers to advance research, extension, and higher education in the food and agricultural sciences and related environmental and human sciences to 

benefit people, communities, and the Nation. 

RESEARCH AND EDUCATION ACTIVITIES

Appropriations, 2011 ............................................................................. $698,740,000 

Budget estimate, 2012 ........................................................................... 708,107,000 

House allowance .................................................................................... 591,748,000 

Committee recommendation ................................................................. 709,825,000 

Research and Education programs administered by NIFA are 

USDA’s principal entre ́e to the university system of the United 

States for the purpose of conducting agricultural research and education programs as authorized by the Hatch Act of 1887, as amended (7 U.S.C. 361a–361i); the McIntire-Stennis Cooperative Forestry 

Act of 1962, as amended (16 U.S.C. 582a et seq.); the Competitive, 

Special, and Facilities Research Grant Act, as amended (7 U.S.C. 

450i); the National Agricultural, Research, Extension, and Teaching Policy Act of 1977, as amended (7 U.S.C. 3101 et seq.); the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 

note); the Agricultural Research, Extension and Education Reform 

Act of 1998 (Public Law 105–185), as amended; the Food, Agriculture, Conservation and Trade Act of 1990 (Public Law 101–624); 

the Farm Security and Rural Investment Act of 2002 (Public Law 

107–171); and the Food, Conservation and Energy Act of 2008 

(Public Law 110–246). Through these authorities, USDA participates with State and other cooperators to encourage and assist the 

State institutions in the conduct of agricultural research and education through the State Agricultural Experiment Stations of the 

50 States and the territories; by approved Schools of Forestry; the 

1890 Land-Grant Institutions and Tuskegee University and West 

Virginia State University; 1994 Land-Grant Institutions; by Colleges of Veterinary Medicine; and other eligible institutions. The 

appropriated funds provide Federal support for research and education programs at these institutions. 

The research and education programs participate in a nationwide 

system of agricultural research program planning and coordination 

among the State institutions, U.S. Department of Agriculture, and 

the agricultural industry of America. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $709,825,000 for 

research and education activities of the National Institute of Food 

and Agriculture. 

The following table summarizes the Committee’s recommendations for research and education activities: 
23 

NATIONAL INSTITUTE OF FOOD AND AGRICULTURE [NIFA]—RESEARCH AND EDUCATION ACTIVITIES 

Committee recommendation 

Hatch Act ........................................................................................................................................................... $236,334,000 

McIntire-Stennis Cooperative Forestry Research Program ................................................................................. 32,934,000 

Evans-Allen program (1890 Colleges, Tuskegee University and West Virginia State University) .................... 50,898,000 

Animal Health and Disease Research ............................................................................................................... 2,944,000 

Special Research Grants: 

Global Change/UV-Monitoring ................................................................................................................... 1,377,000 

Potato Research ........................................................................................................................................ 1,404,000 

Forest Products Research ......................................................................................................................... 1,400,000 

Total, Special Research Grants ............................................................................................................ 4,181,000 

Improved Pest Control: 

Expert IPM Decision Support System ........................................................................................................ 153,000 

Integrated Pest Management .................................................................................................................... 2,362,000 

Minor Crop Pest Management, IR–4 ........................................................................................................ 11,913,000 

Pest Management Alternatives ................................................................................................................. 1,402,000 

Total, Improved Pest Control ................................................................................................................ 15,830,000 

Critical Ag Materials Act of 1984 ..................................................................................................................... 1,081,000 

Aquaculture Centers, Section 1475 ................................................................................................................... 3,920,000 

Sustainable Agriculture Research and Education ............................................................................................. 14,471,000 

1994 Institutions Research Program ................................................................................................................. 1,801,000 

Supplemental and Alternative Crops, Section 1473 D ...................................................................................... 833,000 

AFRI .................................................................................................................................................................... 265,987,000 

Joe Skeen Institute for Rangeland Restoration ................................................................................................. 961,000 

New Era Rural Technology Program .................................................................................................................. 856,000 

Competitive Grants for Policy Research ............................................................................................................ 4,000,000 

Capacity Building for Non-Land-Grant Colleges of Agriculture ........................................................................ 5,000,000 

Farm Business Management and Benchmarking Program ............................................................................... 1,497,000 

Sun Grant Program ............................................................................................................................................ 2,246,000 

Federal Administration: 

Data Information System (REEIS) ............................................................................................................. 2,645,000 

Electronic Grants Administration System ................................................................................................. 2,089,000 

Office of Extramural Programs ................................................................................................................. 430,000 

Pay Costs .................................................................................................................................................. 5,454,000 

Peer Panels ............................................................................................................................................... 388,000 

Total, Federal Administration ............................................................................................................... 11,006,000 

Higher Education: 

Graduate Fellowships Grants .................................................................................................................... 3,774,000 

Institution Challenge Grants ..................................................................................................................... 5,530,000 

1890s Institution Capacity Building Grants ............................................................................................. 19,336,000 

Multicultural Scholars ............................................................................................................................... 1,239,000 

Hispanic-Serving Institutions Education Grants Program ........................................................................ 9,219,000 

Tribal Colleges Education Equity Grants Program ................................................................................... 3,335,000 

Secondary/2-Year Post Secondary ............................................................................................................. 981,000 

Veterinary Medical Services Act ................................................................................................................ 4,790,000 

Alaska Native-Serving and Native-Hawaiian-Serving Institutions ........................................................... 3,194,000 

Resident Instruction Grants for Insular Areas ......................................................................................... 898,000 

Distance Education Grants for Insular Areas ........................................................................................... 749,000 

Total, Higher Education Grants ............................................................................................................ 53,045,000 

Total, Research and Education ............................................................................................................ 709,825,000 

Agriculture and Food Research Initiative.—The Committee recommendation includes $265,987,000 for the Agriculture and Food 

Research Initiative [AFRI]. The Committee notes that programs 

previously funded through the Integrated Activities account are eligible for funding under the AFRI. 
24 

Section 7406 of the Food, Conservation, and Energy Act of 2008 

specifies priority areas within the Agriculture and Food Research 

Initiative [AFRI], including an emphasis on conventional (classical) 

plant and animal breeding. The Committee strongly concurs with 

the intent of this section, and requests a report from the agency as 

to its plans for implementing this important conventional/classical 

plant and animal breeding requirement. 

Agricultural Research Enhancement Awards.—The Committee 

remains determined to see that quality research and enhanced 

human resources development in the agricultural and related 

sciences be a nationwide commitment. Therefore, the Committee 

continues its direction that not less than 10 percent of the competitive research grant funds be used for USDA’s agricultural research 

enhancement awards program (including USDA–EPSCoR), in accordance with 7 U.S.C. 450i. 

Aquaculture Disease Research.—The Committee encourages 

USDA to support aquaculture disease and vaccine research, including research on coldwater aquaculture vaccines. There is currently 

no national facility for pathogen testing. Research into finfish vaccines and pathogens has the potential to accelerate the growth of 

sustainable U.S. aquaculture, reduce the trade deficit attributable 

to imported seafood, and reduce the pressure on overfished species. 

Berry and Grape Research.—The Committee recognizes that the 

production of grapes is vital to many local economies, and encourages NIFA to work with partners to support the development of 

new cultivars to enhance economic stability and develop environmentally sound insect and disease management strategies and 

technologies. 

The Committee also encourages NIFA to support berry and grape 

research that focuses on integrated pest management to improve 

food safety, human health, and varietal development, while reducing chemical inputs and emerging pest and disease pressures related to climate change. 

Broccoli Production.—The Committee has been informed that the 

Department has dedicated funding toward spurring broccoli production in the eastern United States. The Committee is aware that 

that farmers have invested considerable amounts of time and private funding into research on soils, crop management practices, 

and new broccoli varieties to develop and maintain a successful 

broccoli production industry on the East Coast. The Committee directs the USDA to work to ensure that Departmental efforts do not 

compete with or detrimentally affect privately owned, family-farm 

business operations. 

Cereal Crop Research.—Research on cereal crops has historically 

been conducted by USDA and public universities, and the Committee recognizes the importance of continuing investment in cereal crop research. The Committee strongly encourages USDA to 

provide funding for cereal crop research in the areas of genetic and 

genomic research, plant pest research, and improved production 

systems. 

Cranberry and Blueberry Research.—The Committee encourages 

the NIFA to continue working with research institutions to develop 

resilient cranberry and blueberry breeds and establish effective and 

environmentally sound pest management technologies. 
25 

Forest Products.—The Committee recognizes the important role 

of the forests products sector to the U.S. economy. The need to create new and improved value-added products and renewable energy 

from our Nation’s wood supply is critical to the sustainability of the 

national economy. The Committee directs NIFA to support research, education and outreach for the forest products sector. 

National Clean Plant Network.—The National Clean Plant Network is instrumental in ensuring that nurseries can provide safe, 

virus-free materials to orchards, vineyards and other growers. The 

Committee recognizes the value of continued research to improve 

detection and eradication of viruses, and encourages the Department to continue its work on this important program. 

Policy Research Centers.—The Committee directs the Director of 

NIFA to consult with the Office of the Chief Economist in developing requests for proposals for competitive grants, reviewing applications, and awarding grants for the activities authorized by 7 

U.S.C. 3155. The Committee further directs the Director of NIFA 

to obligate funds made available for 7 U.S.C 3155 within 120 days 

of the enactment of this act. 

Potato Research.—To minimize the application of pesticides and 

to maximize the yield and quality of harvested potatoes, the Committee directs the Secretary to support pest management programs 

in potato growing States. Such programs help scientists track potential pest outbreaks and provide growers and industry professionals with current information on specific and timely treatments. 

Additionally, the programs help identify serious diseases, such as 

late blight disease, in their early stages, allowing for preventive 

measure to be put into place quickly to avoid crop losses. 

Seafood.—The Committee encourages USDA, in partnership with 

universities with established domestic shrimp farming programs, to 

support the development of a domestic industry that will help ensure the safety and quality of the Nation’s seafood supply, promote 

environmentally sustainable aquaculture, create new opportunities 

for U.S. agriculture, and forge new markets for U.S. grain and oilseed products and technology services. 

NATIVE AMERICAN INSTITUTIONS ENDOWMENT FUND

Appropriations, 2011 ............................................................................. $11,880,000 

Budget estimate, 2012 ........................................................................... 11,880,000 

House allowance .................................................................................... 11,880,000 

Committee recommendation ................................................................. 11,880,000 

The Native American Institutions Endowment Fund authorized 

by Public Law 103–382, the Equity in Educational Land-Grant Status Act, provides an endowment for the 1994 land-grant institutions (34 tribally controlled colleges). This program will enhance 

educational opportunity for Native Americans by building educational capacity at these institutions in the areas of student recruitment and retention, curricula development, faculty preparation, instruction delivery systems, and scientific instrumentation 

for teaching. Income funds are also available for facility renovation, 

repair, construction, and maintenance. On the termination of each 

fiscal year, the Secretary shall withdraw the income from the endowment fund for the fiscal year, and after making adjustments for 

the cost of administering the endowment fund, distribute the ad-
26 

justed income as follows: 60 percent of the adjusted income from 

these funds shall be distributed among the 1994 land-grant institutions on a pro rata basis, the proportionate share being based on 

the Indian student count; and 40 percent of the adjusted income 

shall be distributed in equal shares to the 1994 land-grant institutions. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $11,880,000 for 

the Native American Institutions Endowment Fund. 

HISPANIC-SERVING AGRICULTURAL COLLEGES AND UNIVERSITIES

ENDOWMENT FUND

Appropriations, 2011 ............................................................................. ........................... 

Budget estimate, 2012 ........................................................................... $10,000,000 

House allowance .................................................................................... ........................... 

Committee recommendation ................................................................. 10,000,000 

Section 7129 of the Food, Conservation, and Energy Act of 2008, 

provides for the establishment of an endowment fund for the Hispanic-Serving Agricultural Colleges and Universities [HSACU]. The 

Hispanic/Latino community is the fastest growing sector of the 

American population. This investment in the Hispanic-Serving Agricultural Colleges and Universities is needed to ensure institutions 

can effectively compete for NIFA competitive grants. 

On the termination of each fiscal year, the Secretary shall withdraw the income from the endowment fund for the fiscal year, and 

after making adjustments for the cost of administering the endowment fund, shall distribute the adjusted income as follows: 60 percent of the adjusted income shall be distributed among the Hispanic-Serving Agricultural Colleges and Universities on a pro rata 

basis based on the Hispanic enrollment count of each institution; 

and 40 percent shall be distributed in equal shares to the HispanicServing Agricultural Colleges and Universities. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $10,000,000 for 

the Hispanic-Serving Agricultural Colleges and Universities Endowment Fund. 

EXTENSION ACTIVITIES

Appropriations, 2011 ............................................................................. $479,132,000 

Budget estimate, 2012 ........................................................................... 466,788,000 

House allowance .................................................................................... 407,993,000 

Committee recommendation ................................................................. 478,179,000 

Cooperative extension work was established by the Smith-Lever 

Act of May 8, 1914, as amended. The Department of Agriculture is 

authorized to provide, through the land-grant colleges, cooperative 

extension work that consists of the development of practical applications of research knowledge and the giving of instruction and 

practical demonstrations of existing or improved practices or technologies in agriculture and related subjects, and to encourage the 

application of such information by demonstrations, publications, 

through 4–H clubs, and other means to persons not in attendance 

or resident at the colleges. 
27 

To fulfill the requirements of the Smith-Lever Act, State and 

county extension offices in each State, the District of Columbia, 

Puerto Rico, the Virgin Islands, Guam, American Samoa, the 

Northern Marianas, and Micronesia conduct educational programs 

to improve American agriculture and strengthen the Nation’s families and communities. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $478,179,000 for 

extension activities of the National Institute of Food and Agriculture. 

The following table summarizes the Committee’s recommendations for extension activities: 

NATIONAL INSTITUTE OF FOOD AND AGRICULTURE [NIFA]—EXTENSION ACTIVITIES 

Committee 

recommendation 

Smith-Lever Act, Section 3(b) and (c) .............................................................................................................. $295,800,000 

Smith-Lever, Section 3d Programs: 

Food and Nutrition Education (EFNEP) ..................................................................................................... 67,934,000 

Farm Safety ............................................................................................................................................... 4,610,000 

New Technologies for Ag Extension .......................................................................................................... 1,660,000 

Pest Management ..................................................................................................................................... 9,918,000 

Children, Youth, and Families at Risk ..................................................................................................... 7,975,000 

Youth Farm Safety Education and Certification ....................................................................................... 461,000 

Federally Recognized Tribes Extension Program ....................................................................................... 3,039,000 

Sustainable Agriculture ............................................................................................................................. 4,696,000 

Total, Section 3d Programs .................................................................................................................. 100,293,000 

1890 Colleges, Tuskegee University and West Virginia State University ......................................................... 42,592,000 

Rural Health and Safety Education ................................................................................................................... 1,735,000 

1890 Facilities (Sec. 1447) ............................................................................................................................... 19,730,000 

Renewable Resources Extension Act (RREA) ..................................................................................................... 3,929,000 

Extension Services at the 1994 Institutions ..................................................................................................... 4,312,000 

Food Animal Residue Avoidance Database (FARAD) ......................................................................................... 1,000,000 

Women and Minorities in STEM Fields .............................................................................................................. 400,000 

Federal Administration: 

Ag in the Classroom ................................................................................................................................. 552,000 

General Administration, Including Pay Costs ........................................................................................... 7,836,000 

Total, Federal Administration ............................................................................................................... 8,388,000 

Total, Extension Activities .................................................................................................................... 478,179,000 

INTEGRATED ACTIVITIES

Appropriations, 2011 ............................................................................. $36,926,000 

Budget estimate, 2012 ........................................................................... 29,874,000 

House allowance .................................................................................... 12,303,000 

Committee recommendation ................................................................. 25,948,000 

Section 406, as amended, of the Agricultural Research, Extension, and Education Reform Act of 1998 authorizes an integrated 

research, education, and extension competitive grants program. 
28 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $25,948,000 for 

integrated activities of the National Institute of Food and Agriculture. 

The following table summarizes the Committee’s recommendations for integrated activities: 

NATIONAL INSTITUTE OF FOOD AND AGRICULTURE [NIFA]—INTEGRATED ACTIVITIES 

Committee 

recommendation 

Section 406 Legislative Authority: 

Water Quality ............................................................................................................................................... $8,982,000 

Regional Pest Management Centers ........................................................................................................... 2,994,000 

Methyl Bromide Transition Program ........................................................................................................... 1,996,000 

Organic Transition Program ........................................................................................................................ 3,992,000 

Total, Section 406 .................................................................................................................................. 17,964,000 

International Science and Education Grants Program ........................................................................................ 998,000 

Regional Rural Development Centers Program ................................................................................................... 998,000 

Homeland Security, Food and Agriculture Defense Initiative .............................................................................. 5,988,000 

Total, Integrated Activities ..................................................................................................................... 25,948,000 

OFFICE OF THE UNDER SECRETARY FOR MARKETING AND

REGULATORY PROGRAMS

Appropriations, 2011 ............................................................................. $893,000 

Budget estimate, 2012 ........................................................................... 911,000 

House allowance .................................................................................... 754,000 

Committee recommendation ................................................................. 848,000 

The Office of the Under Secretary for Marketing and Regulatory 

Programs provides direction and coordination in carrying out laws 

with respect to the Department’s marketing, grading, and standardization activities related to grain; competitive marketing practices of livestock, marketing orders, and various programs; veterinary services; and plant protection and quarantine. The Office has 

oversight and management responsibilities for the Animal and 

Plant Health Inspection Service; Agricultural Marketing Service; 

and Grain Inspection, Packers and Stockyards Administration. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $848,000 for the 

Office of the Under Secretary for Marketing and Regulatory Programs. 

ANIMAL AND PLANT HEALTH INSPECTION SERVICE

SALARIES AND EXPENSES

Appropriations, 2011 ............................................................................. $863,270,000 

Budget estimate, 2012 ........................................................................... 832,706,000 

House allowance .................................................................................... 783,838,000 

Committee recommendation ................................................................. 820,110,000 

The Secretary of Agriculture established the Animal and Plant 

Health Inspection Service [APHIS] on April 2, 1972, under the authority of reorganization plan No. 2 of 1953, and other authorities. 
29 

The major objectives of APHIS are to protect the animal and plant 

resources of the Nation from diseases and pests. These objectives 

are carried out under the major areas of activity, as follows: 

Safeguarding and Emergency Preparedness/Response.—The 

agency monitors plant and animal health worldwide, and sets import polices to prevent the introduction of foreign plant and animal 

pests and diseases. Domestically, the agency works cooperatively to 

conduct plant and animal health monitoring programs, pursue 

eradication, or limit the spread of the threat. The agency also conducts diagnostic laboratory activities that support disease prevention, detection, control, and eradication programs. In addition, the 

agency protects agriculture from detrimental animal predators, and 

through its regulatory structure helps advance genetic research 

while protecting against the release of harmful organisms. 

Safe Trade and International Technical Assistance.—The agency 

helps resolve technical trade issues to ensure the smooth and safe 

movement of agricultural commodities into and out of the United 

States. The agency negotiates animal and plant health certification 

requirements and assists U.S. exporters meet foreign regulatory 

demands. In addition, the agency assists developing countries in 

improving their safeguarding systems, to protect the United States 

from emerging plant and animal pests and diseases. 

Animal Care.—The agency conducts regulatory activities that ensure the humane care and treatment of animals and horses as the 

Animal Welfare and Horse Protection Acts require. These activities 

include inspection of certain establishments that handle animals 

intended for research, exhibition, and as pets, and monitoring certain horse shows. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $820,110,000 for 

salaries and expenses of the Animal and Plant Health Inspection 

Service. 

The following table reflects the Committee’s specific recommendations for the Animal and Plant Health Inspection Service: 

ANIMAL AND PLANT HEALTH INSPECTION SERVICE 

[In thousands of dollars] 

Fiscal year 2011 

enacted 

Fiscal year 2012 

budget request 

Committee 

recommendation 

Safeguarding and International Technical Assistance: 

Animal Health Technical Services .............................................. 29,550 38,459 31,309 

Aquatic Animal Health ................................................................ 5,422 2,261 2,261 

Avian Health ............................................................................... 50,090 55,733 48,733 

Cattle Health ............................................................................... 112,094 98,884 97,884 

Equinine, Cervid & Small Ruminant Health .............................. 38,326 22,018 22,018 

National Veterinary Stockpile ...................................................... 3,561 3,568 3,568 

Swine Health ............................................................................... 25,547 23,088 23,088 

Veterinary Biologics .................................................................... 16,424 16,457 16,457 

Veterinary Diagnostics ................................................................ 29,309 33,211 31,611 

Zoonotic Disease Management ................................................... 10,447 10,468 10,468 

Subtotal, Animal Health ......................................................... 320,770 304,147 287,397 

Agricultural Quarantine Inspection (Appropriated) .................... 25,948 26,000 27,500 

Cotton Pests ................................................................................ 20,958 8,977 17,848 

Field Crop & Rangeland Ecosystems Pests ............................... 11,296 9,068 9,068 
30 

ANIMAL AND PLANT HEALTH INSPECTION SERVICE—Continued 

[In thousands of dollars] 

Fiscal year 2011 enacted Fiscal year 2012 

budget request 

Committee recommendation 

Pest Detection ............................................................................. 26,703 26,756 28,756 

Plant Protection Methods Development ...................................... 21,230 21,273 21,273 

Specialty Crop Pests ................................................................... 150,079 154,700 153,950 

Tree & Wood Pests ...................................................................... 75,994 60,462 58,962 

Subtotal, Plant Health ............................................................ 332,208 307,236 317,357 

Wildlife Damage Management .................................................... 72,058 68,487 72,500 

Wildlife Services Methods Development ..................................... 17,078 16,065 18,065 

Subtotal, Wildlife Services ..................................................... 89,136 84,552 90,565 

Animal & Plant Health Regulatory Enforcement ........................ 13,955 17,275 16,275 

Biotechnology Regulatory Services ............................................. 13,037 25,135 18,135 

Subtotal, Regulatory Services ................................................ 26,992 42,410 34,410 

Contingency Fund ....................................................................... 2,054 2,058 1,000 

Emergency Preparedness & Response ........................................ 19,706 17,746 17,746 

Subtotal, Emergency Management ......................................... 21,760 19,804 18,746 

Subtotal, Safeguarding and Emergency Preparedness/Response ................................................................................ 790,866 758,149 748,475 

Safe Trade and International Technical Assistance: 

Agriculture Import/Export ............................................................ 12,579 14,104 13,354 

Overseas Technical & Trade Operations .................................... 20,135 20,776 20,104 

Subtotal, Safe Trade .............................................................. 32,714 34,880 33,458 

Animal Welfare: 

Animal Welfare ............................................................................ 21,935 28,587 27,087 

Horse Protection .......................................................................... 499 891 891 

Subtotal, Animal Welfare ....................................................... 22,434 29,478 27,978 

Agency Management: 

APHIS Information Technology Infrastructure ............................. 4,465 4,474 4,474 

Physical/Operational Security ..................................................... 5,714 5,725 5,725 

Subtotal, Agency Management ............................................... 10,179 10,199 10,199 

Undesignated ....................................................................................... 7,077 .......................... ..........................

Total, Direct Appropriation ..................................................... 863,270 832,706 820,110 

The Committee encourages the Secretary to continue use of contingency funding from the Commodity Credit Corporation, as in 

past fiscal years, to cover additional emergencies as the Secretary 

determines necessary. Furthermore, the Committee encourages the 

Secretary to employ cooperative agreements where appropriate to 

support activities related to animal health. 

Agricultural Quarantine Inspection.—The Committee recognizes 

that prevention of infestations of pests and diseases is much more 

cost effective than subsequent control or eradication. This is an important Federal responsibility and the Committee provides 
31 

$27,500,000 for the agriculture quarantine inspections function, including pre-departure inspections. 

Animal Disease Traceability.—The Committee provides $7,000,000 to continue support for implementation of the new animal disease traceability system. 

Equine Transport.—In November, 2007, the Department published a proposed rule to clarify requirements set forth under the 

Commercial Transportation of Equines to Slaughter provision of 

the 1996 Farm Bill. In June, 2011, the General Accountability Office released a report requested by this Committee on the subject 

of horse welfare in the context of slaughter operations which highlighted the need to improve the enforcement of this provision. The 

Committee is very concerned that nearly 4 years have transpired 

since publication of the proposed rule. The Committee directs the 

Secretary to finalize this rule no later than October 1, 2011. 

Invasive Honey Bee Pests.—The Committee remains concerned 

with declining bee populations and the tragic implications for pollination of U.S. agriculture. The Committee directs the agency to 

continue priority work with other Federal and State agencies and 

the public to manage, suppress, and eradicate varroa mites, small 

hive beetles, and other pests and diseases contributing to colony 

collapse disorder. 

Livestock Warranty Programs.—The Committee directs USDA to 

engage the private sector in evaluating proposals presented to 

USDA for use in the poultry and livestock industry that: encourage 

early disease detection and appropriate management actions by 

producers; provide producer-protections to address business interruption events caused by catastrophic disease, including alternative 

delivery methods of indemnity payments; focus market education 

efforts on improved production practices; and provide liability protection for producers in the event of a trace back of a listed disease. 

Specialty Crop Pests.—The Committee supports APHIS activities 

to control plant pests and strongly supports efforts to eradicate 

such pests as the opportunities arise. Toward that purpose, the 

Committee expects that funding for Specialty Crop Pests be supplemented with contingency or CCC funds for the emergency purpose 

of eradicating the European Grape Vine Moth. 

Sudden Oak Death (Phytopthora Ramorum).—The Committee expects APHIS to use an appropriate portion of the funding provided 

for sudden oak death adequate to promote the development and 

testing of new systems of nursery pest and disease management, 

and for programs of inspection and regulation in partnership with 

the nursery industry. APHIS should also conduct a timely review 

of the current pre-notification program, cooperate with the Forest 

Service regarding phytopthora ramorum suppression efforts, and 

pursue the availability of a rapid, in-field DNA-based test for surveying positive nursery samples. 

Wildlife Damage Management.—APHIS is responsible for providing Federal leadership in managing problems caused by wildlife. 

The Committee provides $72,500,000 for wildlife damage control to 

maintain priority initiatives, including preventing the transport of 

invasive snakes and other harmful species. 

The Committee is concerned with the ever increasing loses of 

livestock to predation. Predation continues to be the single largest 
32 

cause of death loss of sheep, and losses of other livestock are rising. 

The Committee urges the Secretary to exercise all of his authority 

to address this economically devastating situation facing America’s 

farmers and ranchers. 

Wildlife Services Education and Training.—The Committee is 

aware of the wide range of hazardous procedures and materials utilized by APHIS personnel in the conduct of daily duties. A recent 

comprehensive study noted the critical need to provide standardized safety training to ensure the safest working environment possible. As such, the Committee directs APHIS to focus training programs on those areas of greatest concern such as pyrotechnics, firearms, hazardous materials, immobilization and euthanasia drugs, 

pesticides, and animal care and handling. 

Wildlife Services Methods Development.—The Committee appreciates the important work done by the National Wildlife Research 

Center and its affiliated field locations to resolve problems caused 

by the interaction of wild animals and society. The Committee provides $18,065,000 to ensure continued development of technical 

and scientific information on wildlife damage management. 

COMMITTEE DIRECTIVES

In complying with the Committee’s directives, the Committee expects APHIS not to redirect support for programs and activities 

without prior notification to and approval by the House and Senate 

Committees on Appropriations in accordance with the reprogramming procedures specified in the act. Unless otherwise directed, the 

Animal and Plant Health Inspection Service shall implement appropriations by programs, projects, and activities as specified by 

the Appropriations Committees of both Houses of Congress. Unspecified reductions necessary to carry out the provisions of this act 

are to be implemented in accordance with the definitions contained 

in the program, project, and activity section of this report. 

BUILDINGS AND FACILITIES

Appropriations, 2011 ............................................................................. $3,529,000 

Budget estimate, 2012 ........................................................................... 4,712,000 

House allowance .................................................................................... 3,175,000 

Committee recommendation ................................................................. 3,176,000 

The APHIS appropriation for ‘‘Buildings and Facilities’’ funds 

major nonrecurring construction projects in support of specific program activities and recurring construction, alterations, preventive 

maintenance, and repairs of existing APHIS facilities. 

COMMITTEE RECOMMENDATIONS

The Committee recommendation includes an appropriation of 

$3,176,000 for buildings and facilities of the Animal and Plant 

Health Inspection Service. This funding is necessary to allow 

APHIS to maintain existing facilities, and perform critically needed 

repairs to and replacements of building components, such as heating, ventilation and air-conditioning on a prioritized basis at 

APHIS facilities. The Committee notes that due to the environmentally sensitive nature of many APHIS facilities, closure of a facility could result if APHIS is unable to complete the required repairs. 
33 

AGRICULTURAL MARKETING SERVICE

MARKETING SERVICES

Appropriations, 2011 ............................................................................. $86,538,000 

Budget estimate, 2012 ........................................................................... 94,755,000 

House allowance .................................................................................... 77,193,000 

Committee recommendation ................................................................. 82,211,000 

The Agricultural Marketing Service [AMS] was established by 

the Secretary of Agriculture on April 2, 1972. AMS carries out programs authorized by more than 50 different statutory authorities, 

the primary ones being the Agricultural Marketing Act of 1946 (7 

U.S.C. 1621–1627, 1635–1638); the U.S. Cotton Standards Act (7 

U.S.C. 51–65); the Cotton Statistics and Estimates Act (7 U.S.C. 

471–476); the Tobacco Inspection Act (7 U.S.C. 511–511q); the Perishable Agricultural Commodities Act (7 U.S.C. 499a–499t); the 

Egg Products Inspection Act (21 U.S.C. 1031–1056); and section 32 

of the Act of 1935 (Public Law 74–320, 7 U.S.C. 612c). 

Programs administered by this agency include the market news 

services, standardization, grading, classing, shell egg surveillance 

services, transportation services, wholesale farmers and alternative 

market development, grant payments to States for marketing activities, the Federal administration of marketing agreements and 

orders, commodity purchases, Perishable Agricultural Commodities 

Act, the Plant Variety Protection Act (7 U.S.C. 2321 et seq.), and 

market protection and promotion activities. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $82,211,000 for 

marketing services of the Agricultural Marketing Service. 

LIMITATION ON ADMINISTRATIVE EXPENSES

Limitation, 2011 ..................................................................................... $60,947,000 

Budget limitation, 2012 ......................................................................... 62,101,000 

House allowance .................................................................................... 61,000,000 

Committee recommendation ................................................................. 62,101,000 

The Omnibus Budget Reconciliation Act of 1981 (Public Law 97– 

35) initiated a system of user fees for the cost of grading and 

classing cotton, and tobacco. These activities, authorized under the 

U.S. Cotton Standards Act (7 U.S.C. 51 et seq.), the Tobacco Inspection Act (7 U.S.C. 511 et seq.), and other provisions of law are 

designed to facilitate commerce and protect participants in the industry. 

COMMITTEE RECOMMENDATIONS

The Committee recommends a limitation of $62,101,000 on administrative expenses of the Agricultural Marketing Service. 

FUNDS FOR STRENGTHENING MARKETS, INCOME, AND SUPPLY

(SECTION 32)

Appropriations, 2011 ............................................................................. $20,056,000 

Budget estimate, 2012 ........................................................................... 20,056,000 

House allowance .................................................................................... 20,056,000 

Committee recommendation ................................................................. 20,056,000 
34 

Under section 32 of the Act of August 24, 1935, (7 U.S.C. 612c), 

an amount equal to 30 percent of customs receipts collected during 

each preceding calendar year and unused balances are available for 

encouraging the domestic consumption and exportation of agricultural commodities. An amount equal to 30 percent of receipts collected on fishery products is transferred to the Department of Commerce. Additional transfers to the child nutrition programs of the 

Food and Nutrition Service have been provided in recent appropriations Acts. 

The following table reflects the status of this fund for fiscal years 

2010–2012: 

ESTIMATED TOTAL FUNDS AVAILABLE AND BALANCE CARRIED FORWARD—FISCAL YEARS 2010– 

2012 

Fiscal year 2010 

actual 

Fiscal year 2011 

enacted 

Fiscal year 2012 

budget 

Fiscal year 2012 

estimate 

Appropriation (30 percent of Customs Receipts) ...................................................... $8,061,101,371 $6,605,945,807 $7,947,045,940 $7,947,045,940 

Balances Available for Transfers ................. ............................ ............................ ............................ 69,259,590 

Less Transfers: 

Food and Nutrition Service .................. ¥6,747,877,000 ¥5,277,574,000 ¥6,644,834,000 ¥6,745,466,733 

Commerce Department ........................ ¥113,371,243 ¥90,239,555 ¥71,211,940 ¥109,098,387 

Total, Transfers ............................... ¥6,861,248,243 ¥5,367,813,555 ¥6,716,045,940 ¥6,854,565,120 

Prior Year Appropriation Available, Start of 

Year .......................................................... 375,373,561 122,127,338 183,268,133 186,259,590 

Rescission of Prior Year Funds .................... ¥133,351,561 ............................ ............................ ............................

Prior Year Collections and Recoveries ......... 12,844,939 ............................ ............................ ............................

Unavailable for Obligations (recoveries and 

offsetting collections). ............................. ¥13,698,067 ¥69,259,590 ¥12,850,015 ............................

Transfer of Prior Year Funds to FNS (F&V) .. ¥242,022,000 ¥76,000,000 ¥170,418,118 ¥117,000,000 

Budget Authority .................................. 1,199,000,000 1,215,000,000 1,231,000,000 1,231,000,000 

Proposed Rescission of Current Year 

Funds ............................................... ............................ ............................ ............................ ¥150,000,000 

Unavailable for Obligations (Fruit and 

Veg transfer to FNS) ....................... ¥76,000,000 ¥117,000,000 ¥114,478,000 ¥133,000,000 

Available for Obligation .............. 1,123,000,000 1,098,000,000 1,116,522,000 948,000,000 

Less Obligations: 

Child Nutrition Programs (Entitlement 

Commodities) .................................. 465,000,000 309,400,000 465,000,000 465,000,000 

12 Percent Commodity Floor Requirement ............................... 149,131,392 100,000,000 120,000,000 ............................

Cotton, Soybean, Rice and Sweet Potato Disaster Program ..................... ............................ 268,000,000 ............................ ............................

State Option Contract .......................... ............................ 5,000,000 5,000,000 5,000,000 

Removal of Defective Commodities ..... ............................ 2,500,000 2,500,000 2,500,000 

Emergency Surplus Removal ............... 300,887,802 57,400,000 ............................ ............................

Direct Payments ................................... 83,375,000 ............................ ............................ ............................

Disaster Relief ..................................... 282,289 5,000,000 5,000,000 5,000,000 

Additional Fruits, Vegetables, and 

Nuts Purchases ............................... 24,639,114 158,300,000 206,000,000 206,000,000 

Fresh Fruit and Vegetable Program .... 25,000,000 33,000,000 38,159,000 20,000,000 

Accounting Adjustment ........................ 177,394 800,000 ............................ ............................

Estimated Future Needs ...................... ............................ 106,834,000 227,076,000 196,713,000 

Total, Commodity Procurement ....... 1,048,492,991 1,046,234,000 1,068,735,000 900,213,000 

Administrative Funds: 

Commodity Purchase Support ............. 22,275,551 31,710,000 27,731,000 27,731,000 
35 

ESTIMATED TOTAL FUNDS AVAILABLE AND BALANCE CARRIED FORWARD—FISCAL YEARS 2010– 

2012—Continued 

Fiscal year 2010 actual Fiscal year 2011 enacted Fiscal year 2012 

budget 

Fiscal year 2012 estimate 

Marketing Agreements and Orders ...... 19,802,187 20,056,000 20,056,000 20,056,000 

Total, Administrative Funds ............ 42,077,738 51,766,000 47,787,000 47,787,000 

Total Obligations ............................. 1,090,570,729 1,098,000,000 1,116,522,000 948,000,000 

Unobligated Balance, End of Year ............... 32,429,271 ............................ ............................ ............................

Unavailable for Obligations (Fruit and Veg 

transfer to FNS) ....................................... 76,000,000 117,000,000 114,478,000 133,000,000 

Balances, Collections and Recoveries Not 

Available ................................................... 13,698,067 69,259,590 12,850,015 ............................

Total End of Year Balances ............ 122,127,338 186,259,590 127,328,015 133,000,000 

COMMITTEE RECOMMENDATIONS

The Committee recommends a transfer from section 32 funds of 

$20,056,000 for the formulation and administration of marketing 

agreements and orders. 

Section 32 Authorities.—Under the authority described in clause 

3 of 7 U.S.C. 612c, the Secretary is able to direct funds from the 

section 32 account to increase the purchasing power of producers. 

This practice has been used on various occasions to provide direct 

assistance to producers when market forces or natural conditions 

adversely affect the financial condition of farmers and ranchers. 

The Committee notes the importance of the ability of the Secretary 

to utilize this authority, but believes that communication between 

the Department and the Congress should be improved when this 

practice is used. Therefore, the Committee directs the Secretary to 

provide notification to the Appropriations Committee in advance of 

any public announcement or release of section 32 funds under the 

specific authorities cited above. 

PAYMENTS TO STATES AND POSSESSIONS

Appropriations, 2011 ............................................................................. $1,331,000 

Budget estimate, 2012 ........................................................................... 2,634,000 

House allowance .................................................................................... 1,321,000 

Committee recommendation ................................................................. 1,198,000 

The Federal-State Marketing Improvement Program [FSMIP] is 

authorized by section 204(b) of the Agricultural Marketing Act of 

1946 and is also funded from appropriations. Matching grants are 

awarded on a competitive basis to State marketing agencies to 

identify and test market alternative farm commodities, determine 

methods of providing more reliable market information, and develop better commodity grading standards. This program has made 

possible many types of projects, such as electronic marketing and 

agricultural product diversification. Current projects are focused on 

the improvement of marketing efficiency and effectiveness, and 

seeking new outlets for existing farm produced commodities. The 

legislation grants the U.S. Department of Agriculture authority to 

establish cooperative agreements with State departments of agriculture or similar State agencies to improve the efficiency of the 
36 

agricultural marketing chain. The States perform the work or contract it to others, and must contribute at least one-half of the cost 

of the projects. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $1,198,000 for 

Payments to States and Possessions for Federal-State marketing 

projects and activities. 

GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION

SALARIES AND EXPENSES

Appropriations, 2011 ............................................................................. $40,261,000 

Budget estimate, 2012 ........................................................................... 44,192,000 

House allowance .................................................................................... 36,711,000 

Committee recommendation ................................................................. 38,248,000 

The Grain Inspection, Packers and Stockyards Administration 

[GIPSA] was established pursuant to the Secretary’s 1994 reorganization. Grain inspection and weighing programs are carried out 

under the U.S. Grain Standards Act (7 U.S.C. 71 et seq.) and other 

programs under the authority of the Agricultural Marketing Act of 

1946, including the inspection and grading of rice and grain-related 

products; conducting official weighing and grain inspection activities; and grading dry beans and peas, and processed grain products. Under the Packers and Stockyards Act (7 U.S.C. 181 et seq.), 

assurance of the financial integrity of the livestock, meat, and poultry markets is provided. The Administration monitors competition 

in order to protect producers, consumers, and industry from deceptive and fraudulent practices which affect meat and poultry prices. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $38,248,000 for 

salaries and expenses of the Grain Inspection, Packers and Stockyards Administration. 

LIMITATION ON INSPECTION AND WEIGHING SERVICES EXPENSES

Limitation, 2011 ..................................................................................... $47,500,000 

Budget limitation, 2012 ......................................................................... 50,000,000 

House allowance .................................................................................... 47,500,000 

Committee recommendation ................................................................. 50,000,000 

The Agency provides an official grain inspection and weighing 

system under the U.S. Grain Standards Act [USGSA], and official 

inspection of rice and grain-related products under the Agricultural 

Marketing Act [AMA] of 1946. The USGSA was amended in 1981 

to require the collection of user fees to fund the costs associated 

with the operation, supervision, and administration of Federal 

grain inspection and weighing activities. 

COMMITTEE RECOMMENDATIONS

The Committee recommends a limitation of $50,000,000 on inspection and weighing services expenses. 
37 

OFFICE OF THE UNDER SECRETARY FOR FOOD SAFETY

Appropriations, 2011 ............................................................................. $811,000 

Budget estimate, 2012 ........................................................................... 828,000 

House allowance .................................................................................... 684,000 

Committee recommendation ................................................................. 770,000 

The Office of the Under Secretary for Food Safety provides direction and coordination in carrying out the laws enacted by the Congress with respect to the Department’s inspection of meat, poultry, 

and processed egg products. The Office has oversight and management responsibilities for the Food Safety and Inspection Service. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $770,000 for the 

Office of the Under Secretary for Food Safety. 

FOOD SAFETY AND INSPECTION SERVICE

Appropriations, 2011 ............................................................................. $1,006,503,000 

Budget estimate, 2012 ........................................................................... 1,011,393,000 

House allowance .................................................................................... 964,446,000 

Committee recommendation ................................................................. 1,006,503,000 

The major objectives of the Food Safety and Inspection Service 

are to assure that meat and poultry products are wholesome, unadulterated, and properly labeled and packaged, as required by the 

Federal Meat Inspection Act (21 U.S.C. 601 et seq.) and the Poultry 

Products Inspection Act (21 U.S.C. 451 et seq.); and to provide continuous in-plant inspection to egg processing plants under the Egg 

Products Inspection Act. 

The Food Safety and Inspection Service was established on June 

17, 1981, by Secretary’s Memorandum No. 1000–1, issued pursuant 

to Reorganization Plan No. 2 of 1953. 

The inspection program of the Food Safety and Inspection Service provides continuous in-plant inspection of all domestic plants 

preparing meat, poultry or egg products for sale or distribution; reviews foreign inspection systems and establishments that prepare 

meat or poultry products for export to the United States; and provides technical and financial assistance to States which maintain 

meat and poultry inspection programs. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $1,006,503,000 

for the Food Safety and Inspection Service. This includes the full 

funding requested in the budget for Federal, State, and international inspection activities. 

Codex Alimentarius.—Codex Alimentarius is critical for the protection of consumer health globally and facilitating international 

trade. Therefore, the Committee recommends $3,866,000 exclusively for the activities of the U.S. Codex office including international outreach and education. 

Humane Slaughter.—The Committee directs FSIS to provide a 

report to the Committee within 120 days of enactment of this act 

on the implementation of objective scoring methods being undertaken by FSIS to enforce the Humane Methods of Slaughter Act 

[HMSA], including what techniques have been adopted and to what 
38 

degree, metrics used to determine whether or not these techniques 

have been successful in identifying and preventing HMSA violations, and any plans for expansion of these efforts. The Committee 

has long been supportive of objective standards for enforcement of 

HMSA, and was pleased that FSIS recently announced a final compliance guide for voluntary in-plant video monitoring. 

The Committee has been informed that funding provided in fiscal 

year 2010 specifically for enforcement of the Humane Methods of 

Slaughter Act may have been used to fund personnel whose responsibilities are not focused on humane handling. The Committee directs FSIS to ensure that personnel hired with funding provided 

specifically for Humane Methods of Slaughter Act enforcement 

focus their attention on overseeing compliance with humane handling rules for live animals as they arrive and are offloaded and 

handled in pens, chutes, and stunning areas. 

Inspections.—The Committee supports implementation of section 

11016 of Public Law 110–246, and directs USDA to meet its statutory obligation and promulgate final regulations to implement this 

section. 

Public Health Information System.—The Committee has continually been supportive of the development and implementation of 

the Public Health Information System. However, there have been, 

and continue to be, problems in this system, which has resulted in 

a delay of full implementation. While the Committee believes the 

goals of PHIS are laudable, it is imperative that implementation of 

this system is done in a manner that will not hinder the effectiveness of inspectors in the field. The Committee directs FSIS to continue to work closely with inspection personnel to ensure that final 

implementation of PHIS is as streamlined as possible and does not 

negatively impact the ability of FSIS inspectors to complete their 

work. 

The following table represents the Committee’s specific recommendations for the Food Safety and Inspection Service as compared to the fiscal year 2011 and budget request levels: 

FOOD SAFETY AND INSPECTION SERVICE SALARIES AND EXPENSES 

[In thousands of dollars] 

Fiscal year 2011 enacted Fiscal year 2012 

budget request 

Committee recommendation 

Food safety inspection: 

Federal .............................................................................................. 894,765 887,520 887,520 

State .................................................................................................. 62,734 64,696 64,696 

International ...................................................................................... 19,094 15,841 15,841 

Codex Alimentarius ........................................................................... 3,752 3,866 3,866 

PHDCIS .............................................................................................. 26,158 39,470 34,580 

Total .............................................................................................. 1,006,503 1,011,393 1,006,503 

OFFICE OF THE UNDER SECRETARY FOR FARM AND FOREIGN

AGRICULTURAL SERVICES

Appropriations, 2011 ............................................................................. $893,000 

Budget estimate, 2012 ........................................................................... 911,000 

House allowance .................................................................................... 754,000 

Committee recommendation ................................................................. 848,000 
39 

The Office of the Under Secretary for Farm and Foreign Agricultural Services provides direction and coordination in carrying out 

the laws enacted by the Congress with respect to the Department’s 

international affairs (except for foreign economic development), 

commodity programs, farm loans, disaster assistance, crop insurance, and some conservation and energy programs. The Office has 

oversight and management responsibilities for the Farm Service 

Agency (including the Commodity Credit Corporation), Risk Management Agency, and the Foreign Agricultural Service. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $848,000 for the 

Office of the Under Secretary for Farm and Foreign Agricultural 

Services. 

FARM SERVICE AGENCY

The Farm Service Agency [FSA] was established October 3, 1994, 

pursuant to the Federal Crop Insurance Reform and Department of 

Agriculture Reorganization Act of 1994, Public Law 103–354. The 

FSA administers a variety of activities, such as the commodity 

price support and production adjustment programs financed by the 

Commodity Credit Corporation; the Conservation Reserve Program 

[CRP]; the Emergency Conservation Program; the Commodity Operation Programs including the warehouse examination function; 

farm ownership, farm operating, emergency disaster, and other 

loan programs; and the Noninsured Crop Disaster Assistance Program [NAP], which provides crop loss protection for growers of 

many crops for which crop insurance is not available. In addition, 

FSA currently provides certain administrative support services to 

the Foreign Agricultural Service [FAS] and to the Risk Management Agency [RMA]. 

SALARIES AND EXPENSES

[In thousands of dollars] 

Appropriations Transfers from 

program accounts 

Total, FSA, salaries and expenses 

Appropriations, 2011 ........................................................................... 1,208,290 308,137 1,516,427 

Budget estimate, 2012 ........................................................................ 1,397,065 316,340 1,713,405 

House allowance .................................................................................. 1,167,323 261,414 1,428,737 

Committee recommendation ................................................................ 1,181,781 292,730 1,474,511 

The account Salaries and Expenses, Farm Service Agency, funds 

the administrative expenses of program administration and other 

functions assigned to FSA. The funds consist of appropriations and 

transfers from the CCC export credit guarantees, Food for Peace 

loans, and Agricultural Credit Insurance Fund program accounts, 

and miscellaneous advances from other sources. All administrative 

funds used by FSA are consolidated into one account. The consolidation provides clarity and better management and control of 

funds, and facilitates accounting, fiscal, and budgetary work by 

eliminating the necessity for making individual allocations and allotments and maintaining and recording obligations and expenditures under numerous separate accounts. 
40 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $1,474,511,000 

for salaries and expenses of the Farm Service Agency, including a 

direct appropriation of $1,181,781,000. This amount includes not 

more than $13,000,000 for the Common Computing Environment. 

Information Technology.—The Committee remains aware of the 

unstable status of the Farm Service Agency computer system which 

is responsible for the calculation and tracking of the agency’s payments to agricultural producers, and which has resulted in disruption of services to U.S. farmers and ranchers. The Committee encourages the Department to use existing resources to continue the 

progress made regarding information technology modernization. 

National Agriculture Imagery Program.—The Committee recommends that funding shall be allocated to purchase imagery products to meet programmatic requirements. 

STATE MEDIATION GRANTS

Appropriations, 2011 ............................................................................. $4,177,000 

Budget estimate, 2012 ........................................................................... 4,369,000 

House allowance .................................................................................... 3,522,000 

Committee recommendation ................................................................. 3,759,000 

This program is authorized under title V of the Agricultural 

Credit Act of 1987 (7 U.S.C. 5101 et seq.). Originally designed to 

address agricultural credit disputes, the program was expanded by 

the Federal Crop Insurance Reform and Department of Agriculture 

Reorganization Act of 1994 (Public Law 103–354) to include other 

agricultural issues such as wetland determinations, conservation 

compliance, rural water loan programs, grazing on National Forest 

System lands, and pesticides. Grants are made to States whose mediation programs have been certified by the FSA. Grants will be 

solely for operation and administration of the State’s agricultural 

mediation program. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $3,759,000 for 

State Mediation Grants. 

GRASSROOTS SOURCE WATER PROTECTION PROGRAM

Appropriations, 2011 ............................................................................. $4,241,000 

Budget estimate, 2012 ........................................................................... ........................... 

House allowance .................................................................................... 3,577,000 

Committee recommendation ................................................................. 3,817,000 

This program is intended to assist in the protection of groundwater through State rural water associations. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $3,817,000 for 

Grassroots Source Water Protection. 
41 

DAIRY INDEMNITY PROGRAM

Appropriations, 2011 1 ........................................................................... $876,000 

Budget estimate, 2012 1 ......................................................................... 100,000 

House allowance 1 .................................................................................. 100,000 

Committee recommendation 1 ............................................................... 100,000 

1 Current estimate. Such sums as may be necessary are provided. 

Under the program, the Department makes indemnification payments to dairy farmers and manufacturers of dairy products who, 

through no fault of their own, suffer income losses because they are 

directed to remove their milk from commercial markets due to contamination of their products by registered pesticides. The program 

also authorizes indemnity payments to dairy farmers for losses resulting from the removal of cows or dairy products from the market 

due to nuclear radiation or fallout. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of such sums as 

may be necessary, estimated in fiscal year 2012 to be $100,000, for 

indemnity payments to dairy farmers. 

AGRICULTURAL CREDIT INSURANCE FUND PROGRAM ACCOUNT

The Agricultural Credit Insurance Fund Program Account is 

used to provide direct and guaranteed farm ownership, farm operating, conservation, Indian highly fractioned land, and emergency 

loans to individuals, as well as the following types of loans to associations: irrigation and drainage, grazing, Indian tribe land acquisition, and boll weevil eradication. 

FSA is also authorized to provide financial assistance to borrowers by guaranteeing loans made by private lenders having a 

contract of guarantee from FSA as approved by the Secretary of 

Agriculture and to establish Beginning Farmer and Rancher Individual Development grant accounts. 

The following programs are financed through this fund: 

Boll Weevil Eradication Loans.—Made to assist foundations in financing the operations of the boll weevil eradication programs provided to farmers. 

Credit Sales of Acquired Property.—Property is sold out of inventory and is made available to an eligible buyer by providing FSA 

loans. 

Emergency Loans.—Made to producers to aid recovery from production and physical losses due to drought, flooding, other natural 

disasters, or quarantine. The loans may be used to: restore or replace essential property; pay all or part of production costs associated with the disaster year; pay essential family living expenses; 

reorganize the farming operation; and refinance certain debts. 

Farm Operating Loans.—Provide short-to-intermediate term production or chattel credit to farmers who cannot obtain credit elsewhere, to improve their farm and home operations, and to develop 

or maintain a reasonable standard of living. The term of the loan 

varies from 1 to 7 years. 

Farm Ownership Loans.—Made to borrowers who cannot obtain 

credit elsewhere to restructure their debts, improve or purchase 

farms, refinance nonfarm enterprises which supplement but do not 
42 

supplant farm income, or make additions to farms. Loans are made 

for 40 years or less. 

Indian Tribe Land Acquisition Loans.—Made to any Indian tribe 

recognized by the Secretary of the Interior or tribal corporation established pursuant to the Indian Reorganization Act (Public Law 

93–638) which does not have adequate uncommitted funds to acquire lands or interest in lands within the tribe’s reservation or 

Alaskan Indian community, as determined by the Secretary of the 

Interior, for use of the tribe or the corporation or the members 

thereof. 

Indian Highly Fractionated Land Loans.—Made to Indian tribal 

members to purchase highly fractionated lands, as authorized by 

the Food, Conservation, and Energy Act of 2008. 

COMMITTEE RECOMMENDATIONS

The Committee recommends a total loan level of $4,756,982,000 

for programs within the Agricultural Credit Insurance Fund Program Account. 

The following table reflects the program levels for farm credit 

programs administered by the Farm Service Agency recommended 

by the Committee, as compared to the fiscal year 2011 and the 

budget request levels: 

AGRICULTURAL CREDIT PROGRAMS—LOAN LEVELS 

[In thousands of dollars] 

Fiscal year 2011 

enacted 

Fiscal year 2012 

budget 

House 

recommendation 

Committee 

recommendation 

Farm ownership: 

Direct ........................................................... 474,050 475,000 471,292 475,000 

Guaranteed .................................................. 1,497,000 1,500,000 1,500,000 1,500,000 

Farm Operating: 

Direct ........................................................... 947,607 1,050,090 1,041,901 1,019,982 

Guaranteed unsubsidized ............................ 1,496,996 1,500,000 1,488,276 1,500,000 

Guaranteed subsidized ................................ 122,097 .......................... .......................... ..........................

Indian Tribe Land Acquisition .............................. 3,940 2,000 2,000 2,000 

Conservation Loans: 

Guaranteed .................................................. .......................... 150,000 150,000 150,000 

Indian Highly Fractionated Land Loans ............... .......................... 10,000 9,896 10,000 

Boll Weevil Eradication ......................................... 100,000 60,000 100,000 100,000 

Total, Farm loans .................................... 4,641,690 4,747,090 4,763,365 4,756,982 

The Federal Credit Reform Act of 1990 established the program 

account. Appropriations to this account are used to cover the lifetime subsidy costs associated with the direct loans obligated and 

loan guarantees committed, as well as for administrative expenses. 

The following table reflects the cost of programs under credit reform: 

[In thousands of dollars] 

2011 enacted 2012 budget House recommendation 

Committee recommendation 

Loan subsidies: 

Farm ownership: 

Direct .................................................. 32,804 22,800 22,622 22,800 

Guaranteed ......................................... 5,689 .......................... .......................... ..........................

Farm operating: 

Direct .................................................. 57,425 59,120 58,659 57,425 
43 

[In thousands of dollars] 

2011 enacted 2012 budget House 

recommendation 

Committee 

recommendation 

Guaranteed unsubsidized ................... 34,880 26,100 25,896 26,100 

Guaranteed subsidized ....................... 16,886 .......................... .......................... ..........................

Conservation loans: 

Guaranteed ......................................... .......................... .......................... .......................... ..........................

Indian Highly Fractionated Land Loans ...... .......................... 193 191 193 

Individual Development Accounts ............... .......................... 2,500 .......................... ..........................

Total, loan subsidies ............................... 147,684 110,713 107,368 106,518 

ACIF expenses ....................................................... 312,881 321,093 266,538 297,237 

RISK MANAGEMENT AGENCY

Appropriations, 2011 ............................................................................. $78,842,000 

Budget estimate, 2012 ........................................................................... 82,325,000 

House allowance .................................................................................... 67,485,000 

Committee recommendation ................................................................. 74,900,000 

The Risk Management Agency performs administrative functions 

relative to the Federal crop insurance program that is authorized 

by the Federal Crop Insurance Act (7 U.S.C. 1508), as amended by 

the Agricultural Risk Protection Act of 2000 [ARPA], Public Law 

106–224, and the Food, Conservation, and Energy Act of 2008 

(Public Law 110–246). 

ARPA authorized significant changes in the crop insurance program. This act provides higher government subsidies for producer 

premiums to make coverage more affordable; expands research and 

development for new insurance products and under-served areas 

through contracts with the private sector; and tightens compliance. 

Functional areas of risk management are: research and development; insurance services; and compliance, whose functions include 

policy formulation and procedures and regulations development. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $74,900,000 for 

the Risk Management Agency. 

CORPORATIONS 

FEDERAL CROP INSURANCE CORPORATION FUND

Appropriations, 2011 1 ........................................................................... $7,613,232,000 

Budget estimate, 2012 1 ......................................................................... 3,142,375,000 

House allowance 1 .................................................................................. 3,142,375,000 

Committee recommendation 1 ............................................................... 3,142,375,000 

1 Current estimate. Such sums as may be necessary, to remain available until expended, are 

provided. 

The Federal Crop Insurance Act, as amended by the Federal 

Crop Insurance Reform Act of 1994, authorizes the payment of expenses which may include indemnity payments, loss adjustment, 

delivery expenses, program-related research and development, 

startup costs for implementing this legislation such as studies, pilot 

projects, data processing improvements, public outreach, and related tasks and functions. 
44 

All program costs, except for Federal salaries and expenses, are 

mandatory expenditures subject to appropriation. 

Producers of insurable crops are eligible to receive a basic level 

of protection against catastrophic losses, which cover 50 percent of 

the normal yield at 55 percent of the expected price. The only cost 

to the producer is an administrative fee of $300 per crop per county. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of such sums as 

may be necessary, estimated to be $3,142,375,000 in fiscal year 

2012 for the Federal Crop Insurance Corporation Fund. 

COMMODITY CREDIT CORPORATION FUND

The Commodity Credit Corporation [CCC] is a wholly owned 

Government corporation created in 1933 to stabilize, support, and 

protect farm income and prices; to help maintain balanced and adequate supplies of agricultural commodities, including products, 

foods, feeds, and fibers; and to help in the orderly distribution of 

these commodities. CCC was originally incorporated under a Delaware charter and was reincorporated June 30, 1948, as a Federal 

corporation within the Department of Agriculture by the Commodity Credit Corporation Charter Act, approved June 29, 1948 (15 

U.S.C. 714). 

The Commodity Credit Corporation engages in buying, selling, 

lending, and other activities with respect to agricultural commodities, their products, food, feed, and fibers. Its purposes include stabilizing, supporting, and protecting farm income and prices; maintaining the balance and adequate supplies of selected commodities; 

and facilitating the orderly distribution of such commodities. In addition, the Corporation makes available materials and facilities required in connection with the storage and distribution of such commodities. The Corporation also disburses funds for sharing of costs 

with producers for the establishment of approved conservation 

practices on environmentally sensitive land and subsequent rental 

payments for such land for the duration of Conservation Reserve 

Program contracts. 

Corporation activities are primarily governed by the following 

statutes: the Commodity Credit Corporation Charter Act (Public 

Law 80–806), as amended; the Agricultural Act of 1949 (Public Law 

81–439), as amended (1949 Act); the Agricultural Adjustment Act 

of 1938 (Public Law 75–430), as amended (the 1938 Act); the Food 

Security Act of 1985 (Public Law 99–198), as amended (1985 Act); 

and the Food, Conservation, and Energy Act of 2008 (Public Law 

110–246). 

Management of the Corporation is vested in a board of directors, 

subject to the general supervision and direction of the Secretary of 

Agriculture, who is an ex officio director and chairman of the 

board. The board consists of seven members, in addition to the Secretary, who are appointed by the President of the United States 

with the advice and consent of the Senate. Officers of the Corporation are designated according to their positions in the Department 

of Agriculture. 
45 

The activities of the Corporation are carried out mainly by the 

personnel and through the facilities of the Farm Service Agency 

[FSA] and the Farm Service Agency State and county committees. 

The Foreign Agricultural Service, the General Sales Manager, 

other agencies and offices of the Department, and commercial 

agents are also used to carry out certain aspects of the Corporation’s activities. 

Under Public Law 87–155 (15 U.S.C. 713a–11, 713a–12), annual 

appropriations are authorized for each fiscal year, commencing 

with fiscal year 1961. These appropriations are to reimburse the 

Corporation for net realized losses. 

REIMBURSEMENT FOR NET REALIZED LOSSES

Appropriations, 2011 1 ........................................................................... $13,925,575,000 

Budget estimate, 2012 1 ......................................................................... 14,071,000,000 

House allowance 1 .................................................................................. 14,071,000,000 

Committee recommendation 1 ............................................................... 14,071,000,000 

1 Current estimate. Such sums as may be necessary are provided. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of such sums as 

may be necessary, estimated in fiscal year 2012 to be 

$14,071,000,000, for the payment to reimburse the Commodity 

Credit Corporation for net realized losses. 

HAZARDOUS WASTE MANAGEMENT

Limitation, 2011 ..................................................................................... $5,000,000 

Budget estimate, 2012 ........................................................................... 5,000,000 

House allowance .................................................................................... 5,000,000 

Committee recommendation ................................................................. 5,000,000 

The Commodity Credit Corporation’s [CCC] hazardous waste 

management program is intended to ensure compliance with the 

Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. 9601 et seq.) and the Resource Conservation 

and Recovery Act (42 U.S.C. 6901 et seq.). The CCC funds operations and maintenance costs as well as site investigation and 

cleanup expenses. Investigative and cleanup costs associated with 

the management of CCC hazardous waste are also paid from 

USDA’s hazardous waste management appropriation. 

COMMITTEE RECOMMENDATIONS

The Committee recommends a limitation of $5,000,000 for the 

Commodity Credit Corporation’s hazardous waste management 

program. 
(46) 

TITLE II 

CONSERVATION PROGRAMS 

OFFICE OF THE UNDER SECRETARY FOR NATURAL RESOURCES AND

ENVIRONMENT

Appropriations, 2011 ............................................................................. $893,000 

Budget estimate, 2012 ........................................................................... 911,000 

House allowance .................................................................................... 754,000 

Committee recommendation ................................................................. 848,000 

The Office of the Under Secretary for Natural Resources and Environment provides direction and coordination in carrying out the 

laws enacted by the Congress with respect to natural resources and 

the environment. The Office has oversight and management responsibilities for the Natural Resources Conservation Service and 

the Forest Service. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $848,000 for the 

Office of the Under Secretary for Natural Resources and Environment. 

NATURAL RESOURCES CONSERVATION SERVICE

The Natural Resources Conservation Service [NRCS] was established pursuant to Public Law 103–354, the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6962). The NRCS 

works with conservation districts, watershed groups, and Federal 

and State agencies to bring about physical adjustments in land use 

that will conserve soil and water resources, provide for agricultural 

production on a sustained basis, and reduce flood damage and sedimentation. 

CONSERVATION OPERATIONS

Appropriations, 2011 ............................................................................. $870,503,000 

Budget estimate, 2012 ........................................................................... 898,647,000 

House allowance .................................................................................... 764,943,000 

Committee recommendation ................................................................. 828,159,000 

Conservation operations are authorized by Public Law 74–46 (16 

U.S.C. 590a–590f). Activities include: 

Conservation Technical Assistance provides assistance to district 

cooperators and other land users in the planning and application 

of conservation treatments to control erosion and improve the 

quantity and quality of soil resources, improve and conserve water, 

enhance fish and wildlife habitat, conserve energy, improve woodland, pasture and range conditions, and reduce upstream flooding; 

all to protect and enhance the natural resource base. 
47 

Resource appraisal and program development ensures that programs administered by the Secretary of Agriculture for the conservation of soil, water, and related resources shall respond to the 

Nation’s long-term needs. 

Plant Materials Centers assemble, test, and encourage increased 

use of plant species which show promise for use in the treatment 

of conservation problem areas. 

Snow Survey and Water Forecasting provides estimates of annual water availability from high mountain snow packs and relates 

to summer stream flow in the Western States and Alaska. Information is used by agriculture, industry, and cities in estimating future 

water supplies. 

Soil Surveys inventory the Nation’s basic soil resources and determine land capabilities and conservation treatment needs. Soil 

survey publications include interpretations useful to cooperators, 

other Federal agencies, State, and local organizations. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $828,159,000 for 

Conservation Operations, which includes not more than 

$12,500,000 for the Common Computing Environment. 

WATERSHED REHABILITATION PROGRAM

Appropriations, 2011 ............................................................................. $17,964,000 

Budget estimate, 2012 ........................................................................... ........................... 

House allowance .................................................................................... 14,883,000 

Committee recommendation ................................................................. ........................... 

The watershed rehabilitation program account provides for technical and financial assistance to carry out rehabilitation of structural measures, in accordance with section 14 of the Watershed 

Protection and Flood Prevention Act, approved August 4, 1954 (16 

U.S.C. 1012, U.S.C. 1001, et seq.), as amended by section 313 of 

Public Law 106–472, November 9, 2000, and by section 2803 of 

Public Law 110–246. 

COMMITTEE RECOMMENDATIONS

The Committee does not recommend an appropriation for the 

Watershed Rehabilitation Program. 
(48) 

TITLE III 

RURAL DEVELOPMENT PROGRAMS 

The Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994 (Public Law 103–354) abolished 

the Farmers Home Administration, Rural Development Administration, and Rural Electrification Administration and replaced 

those agencies with the Rural Housing and Community Development Service, (currently, the Rural Housing Service), Rural Business and Cooperative Development Service (currently, the Rural 

Business—Cooperative Service), and Rural Utilities Service and 

placed them under the oversight of the Under Secretary for Rural 

Economic and Community Development, (currently, Rural Development). These agencies deliver a variety of programs through a network of State, district, and county offices. 

OFFICE OF THE UNDER SECRETARY FOR RURAL DEVELOPMENT

Appropriations, 2011 ............................................................................. $893,000 

Budget estimate, 2012 ........................................................................... 911,000 

House allowance .................................................................................... 754,000 

Committee recommendation ................................................................. 848,000 

The Office of the Under Secretary for Rural Development provides direction and coordination in carrying out laws with respect 

to the Department’s rural economic and community development 

activities. The Office has oversight and management responsibilities for the Rural Housing Service, Rural Business—Cooperative 

Service, and the Rural Utilities Service. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $848,000 for the 

Office of the Under Secretary for Rural Development. 

RURAL DEVELOPMENT SALARIES AND EXPENSES 

[In thousands of dollars] 

Fiscal year— 

House allowance Committee 2011 recommendation appropriation 

2012 budget 

request 

Appropriation ........................................................ 191,603 234,301 159,755 182,023 

Transfer from: 

Rural Housing Insurance Fund Loan Program Account .......................................... 453,474 411,779 396,880 430,800 

Rural Electrification and Telecommunications Program Account ........................ 38,297 39,959 29,766 36,382 

Rural Development Loan Fund Program Account ....................................................... 4,931 4,941 3,473 4,684 

Total RD salaries and expenses ............. 688,305 690,980 589,874 653,889 
49 

These funds are used to administer the loan and grant programs 

of the Rural Utilities Service, the Rural Housing Service, and the 

Rural Business—Cooperative Service, including reviewing applications, making and collecting loans and providing technical assistance and guidance to borrowers; and to assist in extending other 

Federal programs to people in rural areas. 

Under credit reform, administrative costs associated with loan 

programs are appropriated to the program accounts. Appropriations to the salaries and expenses account will be for costs associated with grant programs. 

COMMITTEE RECOMMENDATIONS

The Committee recommends $653,889,000 for salaries and expenses of Rural Development, which includes not more than 

$4,500,000 for the Common Computing Environment. 

RURAL HOUSING SERVICE

The Rural Housing Service [RHS] was established under the 

Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994, dated October 13, 1994. 

RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

Appropriations, 2011 (budget authority) ............................................. $555,476,000 

Budget estimate, 2012 (budget authority) ........................................... 473,466,000 

House allowance (budget authority) ..................................................... 468,814,000 

Committee recommendation (budget authority) ................................. 512,791,000 

This fund was established in 1965 (Public Law 89–117) pursuant 

to section 517 of title V of the Housing Act of 1949 (42 U.S.C. 

517(d)), as amended. This fund may be used to insure or guarantee 

rural housing loans for single-family homes, rental and cooperative 

housing, farm labor housing, and rural housing sites. Rural housing loans are made to construct, improve, alter, repair, or replace 

dwellings and essential farm service buildings that are modest in 

size, design, and cost. Rental housing insured loans are made to individuals, corporations, associations, trusts, or partnerships to provide low-cost rental housing and related facilities in rural areas. 

These loans are repayable in terms up to 30 years. Loan programs 

are limited to rural areas, which include towns, villages, and other 

places of not more than 10,000 population, which are not part of 

an urban area. Loans may also be made in areas with a population 

in excess of 10,000, but less than 20,000, if the area is not included 

in a standard metropolitan statistical area and has a serious lack 

of mortgage credit for low- and moderate-income borrowers. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $512,791,000 for 

the Rural Housing Insurance Fund Program Account [RHIF]. 

The Federal Credit Reform Act of 1990 (Public Law 101–508) established the RHIF program account. Appropriations to this account will be used to cover the lifetime subsidy costs associated 

with the direct loans obligated and loan guarantees committed in 

2012, as well as for administrative expenses. The following table 
50 

presents the loan subsidy levels as compared to the 2011 levels and 

the 2012 budget request: 

RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT 

[In thousands of dollars] 

Fiscal year 2011 

appropriation 

2012 budget 

request 

Committee 

recommendation 

Loan Levels: 

Single-Family Housing (sec. 502): 

Direct .................................................................................. 1,119,163 211,416 900,000 

Guaranteed ......................................................................... 24,000,000 24,000,000 24,000,000 

Housing Repair (sec. 504) .......................................................... 23,313 .......................... 10,000 

Direct rental housing (sec. 515) ................................................ 69,372 95,236 64,478 

Guaranteed rental housing (sec. 538) ....................................... 30,898 .......................... 130,000 

Site loans (sec. 524) .................................................................. 5,041 .......................... ..........................

Credit sales of acquired property ............................................... 11,446 .......................... 10,000 

Self help land development loans (sec. 523) ............................ 4,956 .......................... 5,000 

Farm labor housing loans (sec. 514)1 ....................................... .......................... 27,288 23,426 

Total, loan levels .................................................................... 25,264,189 24,333,940 25,142,904 

Loan Subsidies and Grants: 

Single-Family Housing (sec. 502): 

Direct .................................................................................. 70,060 10,000 42,570 

Housing Repair (sec. 504) .......................................................... 4,413 .......................... 1,421 

Direct rental housing (sec. 515) ................................................ 23,399 32,495 22,000 

Guaranteed rental housing (sec. 538) ....................................... 2,994 .......................... ..........................

Site loans (sec. 524) .................................................................. 293 .......................... ..........................

Credit sales of acquired property ............................................... 555 .......................... ..........................

Self help land development loans (sec. 523) ............................ 287 .......................... ..........................

Farm labor housing loans (sec. 514)1 ....................................... .......................... 9,319 8,000 

Farm labor housing grants (sec. 516)1 ..................................... .......................... 9,873 8,000 

Total, loan subsidies and grants ........................................... 102,001 61,687 81,991 

Administrative expenses ...................................................................... 453,474 411,779 430,800 

Total, loan subsidies, grants and administrative expenses ...................................................................................... 555,475 473,466 512,791 

1 Included in the Farm Labor Program Account in fiscal year 2011. In fiscal year 2011, $9,853,000 was provided for grants and $9,853,000 

was provided for loan subsidies to support $25,673,000 in loans. 

Centralized Servicing Center.—The Secretary is encouraged to explore opportunities to provide services to other Federal agencies, 

through Economy Act Agreements, and thereby leverage existing 

capacity and expertise at Rural Development’s Centralized Servicing Center. 

Section 502 Guaranteed Single Family Housing Loan Program.— 

The Committee is concerned that neither USDA nor lenders will 

complete automated systems changes necessary to support USDA’s 

announced October 1, 2011, implementation of an annual fee. To 

ensure uninterrupted continuation of the program, the Secretary 

may increase the existing guarantee fee sufficient to cover subsidy 

costs. The Committee expects that the Department will fully implement the annual fee requirements prior to September 30, 2012. 

The Committee recognizes that the Secretary may implement such 

annual fee for any duration up to the life of the loan. 

Section 538 Guaranteed Multi-Family Housing Loan Program.— 

The Committee no longer prohibits utilization of authorized fees, 

and expects the Secretary to implement fees sufficient to cover program subsidy costs. 
51 

RENTAL ASSISTANCE PROGRAM

Appropriations, 2011 ............................................................................. $953,724,000 

Budget estimate, 2012 ........................................................................... 906,653,000 

House allowance .................................................................................... 883,058,000 

Committee recommendation ................................................................. 904,653,000 

Rental assistance is authorized under section 521(a)(2) of the 

Housing Act of 1949, as amended (42 U.S.C. 1490a). The objective 

of the program is to reduce rents paid by low-income families living 

in Rural Housing Service financed rental projects and farm labor 

housing projects. Under this program, low-income tenants will contribute the higher of: (1) 30 percent of monthly adjusted income; (2) 

10 percent of monthly income; or (3) designated housing payments 

from a welfare agency. 

Payments from the fund are made to the project owner for the 

difference between the tenant’s payment and the approved rental 

rate established for the unit. 

The program is administered in tandem with Rural Housing 

Service section 515 rural rental and cooperative housing programs 

and the farm labor loan and grant programs. Priority is given to 

existing projects for units occupied by rent over-burdened low-income families and projects experiencing financial difficulties beyond the control of the owner; any remaining authority will be used 

for projects receiving new construction commitments under sections 

514, 515, or 516 for very low-income families with certain limitations. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $904,653,000 for 

the Rental Assistance Program. 

Rental Assistance.—The Committee provides funding to meet the 

needs of expiring and new rental assistance contracts for section 

515 and 514/516 multi-family housing projects. The Committee includes statutory language requiring rental assistance to be held in 

514/516 projects for a minimum period of time. Rental assistance 

contracts are funded for 1-year durations. 

MULTI-FAMILY HOUSING REVITALIZATION PROGRAM ACCOUNT

Appropriations, 2011 ............................................................................. $29,940,000 

Budget estimate, 2012 ........................................................................... 16,000,000 

House allowance .................................................................................... 10,914,000 

Committee recommendation ................................................................. 13,000,000 

The Rural Housing Voucher Program was authorized under the 

Housing Act of 1949 (42 U.S.C. 1940r) to assist very low income 

families and individuals who reside in rental housing in rural 

areas. Housing vouchers may be provided to residents of rental 

housing projects financed by section 515 loans that have been prepaid after September 30, 2005. Voucher amounts reflect the difference between comparable market rents and tenant-paid rent 

prior to loan prepayment. Vouchers allow tenants to remain in existing projects or move to other rental housing. 

The Multi-family Housing Revitalization Program includes funding for housing vouchers, a multi-family revolving loan program, 

and a program for the preservation and revitalization of affordable 
52 

multi-family housing projects. Rural Development’s multi-family 

housing portfolio faces dual pressures for loan prepayments and repair/rehabilitation stemming from inadequate reserves resulting in 

deferred property maintenance. 

Provision of affordable rental housing can be accomplished more 

economically by revitalizing existing housing stock rather than 

funding new construction. The Multi-family Housing Revitalization 

Program includes revitalization tools for maintenance of existing 

units and vouchers to protect tenants in those projects that prepay. 

Flexibility is provided to allow Rural Development to utilize funding to meet the most urgent local needs for tenant protection and 

project revitalization. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $13,000,000 for 

the Multi-family Housing Revitalization Program, including 

$11,000,000 for vouchers and $2,000,000 for a housing preservation 

demonstration program. 

MUTUAL AND SELF-HELP HOUSING GRANTS

Appropriations, 2011 ............................................................................. $36,926,000 

Budget estimate, 2012 ........................................................................... ........................... 

House allowance .................................................................................... 21,828,000 

Committee recommendation ................................................................. 30,000,000 

The Mutual and Self-Help Housing Grants Program is authorized by title V of the Housing Act of 1949. Grants are made to local 

organizations to promote the development of mutual or self-help 

programs under which groups of usually 6 to 10 families build their 

own homes by mutually exchanging labor. Funds may be used to 

pay the cost of construction supervisors who work with families in 

the construction of their homes and for administrative expenses of 

the organizations providing the self-help assistance. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $30,000,000 for 

Mutual and Self-Help Housing Grants. 

RURAL HOUSING ASSISTANCE GRANTS

Appropriations, 2011 ............................................................................. $40,319,000 

Budget estimate, 2012 ........................................................................... 11,520,000 

House allowance .................................................................................... 31,750,000 

Committee recommendation ................................................................. 34,271,000 

The Rural Housing Assistance Grants Program consolidates 

funding for rural housing grant programs. This consolidation of 

housing grant funding provides greater flexibility to tailor financial 

assistance to applicant needs. 

Very Low-Income Housing Repair Grants.—The Very Low-Income 

Housing Repair Grants Program is authorized under section 504 of 

title V of the Housing Act of 1949. The rural housing repair grant 

program is carried out by making grants to very low-income families to make necessary repairs to their homes in order to make 

such dwellings safe and sanitary, and remove hazards to the health 

of the occupants, their families, or the community. 
53 

These grants may be made to cover the cost of improvements or 

additions, such as repairing roofs, providing toilet facilities, providing a convenient and sanitary water supply, supplying screens, 

repairing or providing structural supports or making similar repairs, additions, or improvements, including all preliminary and installation costs in obtaining central water and sewer service. A 

grant can be made in combination with a section 504 very low-income housing repair loan. 

No assistance can be extended to any one individual in the form 

of a loan, grant, or combined loans and grants in excess of $27,500, 

and grant assistance is limited to persons, or families headed by 

persons who are 62 years of age or older. 

Supervisory and Technical Assistance Grants.—Supervisory and 

technical assistance grants are made to public and private nonprofit organizations for packaging loan applications for housing assistance under sections 502, 504, 514/516, 515, and 533 of the 

Housing Act of 1949. The assistance is directed to very low-income 

families in underserved areas where at least 20 percent of the population is below the poverty level and at least 10 percent or more 

of the population resides in substandard housing. In fiscal year 

1994 a Homebuyer Education Program was implemented under 

this authority. This program provides low-income individuals and 

families education and counseling on obtaining and/or maintaining 

occupancy of adequate housing and supervised credit assistance to 

become successful homeowners. 

Compensation for Construction Defects.—Compensation for construction defects provides funds for grants to eligible section 502 

borrowers to correct structural defects, or to pay claims of owners 

arising from such defects on a newly constructed dwelling purchased with RHS financial assistance. Claims are not paid until 

provisions under the builder’s warranty have been fully pursued. 

Requests for compensation for construction defects must be made 

by the owner of the property within 18 months after the date financial assistance was granted. 

Rural Housing Preservation Grants.—Rural housing preservation 

grants (section 533) of the Housing and Urban-Rural Recovery Act 

of 1983 (42 U.S.C. 1490m) authorizes the Rural Housing Service to 

administer a program of home repair directed at low- and very lowincome people. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $34,271,000 for 

the Rural Housing Assistance Grants Program. 

The following table compares the grant program levels recommended by the Committee to the fiscal year 2011 levels and the 

budget request: 

RURAL HOUSING ASSISTANCE GRANTS 

[In thousands of dollars] 

Fiscal year— Committee 

recommendation 2011 level 2012 request 

Very low-income housing repair grants .............................................. 30,938 11,520 27,000 
54 

RURAL HOUSING ASSISTANCE GRANTS—Continued 

[In thousands of dollars] 

Fiscal year— Committee 

recommendation 2011 level 2012 request 

Housing preservation grants ............................................................... 9,381 .......................... 7,271

Total ........................................................................................ 40,319 11,520 34,271 

FARM LABOR PROGRAM ACCOUNT

Appropriations, 2011 ............................................................................. $19,707,000 

Budget estimate, 2012 1 ......................................................................... ........................... 

House allowance 1 .................................................................................. ........................... 

Committee recommendation 1 ............................................................... ........................... 

1 Included in the Rural Housing Insurance Fund in fiscal year 2012. 

The direct farm labor housing loan program is authorized under 

section 514 and the rural housing for domestic farm labor housing 

grant program is authorized under section 516 of the Housing Act 

of 1949, as amended. The loans, grants, and contracts are made to 

public and private nonprofit organizations for low-rent housing and 

related facilities for domestic farm labor. Grant assistance may not 

exceed 90 percent of the cost of a project. Loans and grants may 

be used for construction of new structures, site acquisition and development, rehabilitation of existing structures, and purchase of 

furnishings and equipment for dwellings, dining halls, community 

rooms, and infirmaries. 

Under credit reform, administrative costs associated with loan 

programs are appropriated to the program accounts. Appropriations to the salaries and expenses account will be for costs associated with grant programs. 

COMMITTEE RECOMMENDATIONS

The Committee recommendation provides funding for the cost of 

direct farm labor loans and grants in the Rural Housing Insurance 

Fund. 

RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT

Appropriations, 2011 ............................................................................. $41,379,000 

Budget estimate, 2012 ........................................................................... 38,400,000 

House allowance .................................................................................... 17,860,000 

Committee recommendation ................................................................. 26,274,000 

Community facility loans were created by the Rural Development 

Act of 1972 (7 U.S.C. 1926 et seq.) to finance a variety of rural 

community facilities. Loans are made to organizations, including 

certain Indian tribes and corporations not operated for profit and 

public and quasi-public agencies, to construct, enlarge, extend, or 

otherwise improve community facilities providing essential services 

to rural residents. Such facilities include those providing or supporting overall community development, such as fire and rescue 

services, healthcare, transportation, traffic control, and community, 

social, cultural, and recreational benefits. Loans are made for facilities which primarily serve rural residents of open country and 

rural towns and villages of not more than 20,000 people. 
55 

Healthcare and fire and rescue facilities are the priorities of the 

program and receive the majority of available funds. 

The Community Facility Grant Program authorized in the Federal Agriculture Improvement and Reform Act of 1996 (Public Law 

104–127), is used in conjunction with the existing direct and guaranteed loan programs for the development of community facilities, 

such as hospitals, fire stations, and community centers. Grants are 

targeted to the lowest income communities. Communities that have 

lower population and income levels receive a higher cost-share contribution through these grants, to a maximum contribution of 75 

percent of the cost of developing the facility. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $26,274,000 for 

the Rural Community Facilities Program Account. 

The following table provides the Committee’s recommendations, 

as compared to the fiscal year 2011 and budget request levels: 

RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT 

[Loan levels and budget authority in thousands of dollars] 

Fiscal year 2011 

appropriation 

2012 budget 

request 

Committee 

recommendations 

Loan levels: 

Community facilities direct loans .................................................... 289,945 1,000,000 1,300,000 

Community facilities guaranteed loans ........................................... 167,411 ........................ ........................

Total loan levels ........................................................................... 457,356 1,000,000 1,300,000 

Budget authority: 

Community facility direct loans ....................................................... 3,856 ........................ ........................

Community facility guaranteed loans .............................................. 6,613 ........................ ........................

Community facility grants ................................................................ 14,970 30,000 12,725 

Economic impact initiative grants ................................................... 6,986 ........................ 5,938 

Rural community development initiative .......................................... 4,990 8,400 4,242 

Tribal college grants ......................................................................... 3,964 ........................ 3,369 

Total budget authority .................................................................. 41,379 38,400 26,274 

School Food Service Equipment Support.—The Committee notes 

that USDA Community Facilities loans and grants can assist eligible school districts for upgrades in their school lunch and breakfast 

programs as may be appropriate in conjunction with new nutrition 

standards. The Committee directs the Department to conduct outreach to rural school districts and consider giving priority to applications for school food service upgrades through the Rural Community Facilities Program. 

RURAL BUSINESS—COOPERATIVE SERVICE

The Rural Business—Cooperative Service [RBS] was established 

by Public Law 103–354, Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994, dated October 

13, 1994. Its programs were previously administered by the Rural 

Development Administration, the Rural Electrification Administration, and the Agricultural Cooperative Service. 
56 

RURAL BUSINESS PROGRAM ACCOUNT

Appropriations, 2011 ............................................................................. $85,280,000 

Budget estimate, 2012 ........................................................................... 89,857,000 

House allowance .................................................................................... 63,996,000 

Committee recommendation ................................................................. 79,665,000 

The Rural Business and Industry Loan Program was created by 

the Rural Development Act of 1972, and finances a variety of rural 

industrial development loans. Loans are made for rural industrialization and rural community facilities under Rural Development 

Act amendments to the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1932 et seq.) authorities. Business and industrial 

loans are made to public, private, or cooperative organizations organized for profit, to certain Indian tribes, or to individuals for the 

purpose of improving, developing or financing business, industry, 

and employment or improving the economic and environmental climate in rural areas. Such purposes include financing business and 

industrial acquisition, construction, enlargement, repair or modernization, financing the purchase and development of land, easements, rights-of-way, buildings, payment of startup costs, and supplying working capital. 

Rural business enterprise grants were authorized by the Rural 

Development Act of 1972. Grants are made to public bodies and 

nonprofit organizations to facilitate development of small and 

emerging business enterprises in rural areas, including the acquisition and development of land; the construction of buildings, plants, 

equipment, access streets and roads, parking areas, and utility extensions; refinancing fees; technical assistance; and startup operating costs and working capital. 

Rural business opportunity grants are authorized under section 

306(a)(11) of the Consolidated Farm and Rural Development Act, 

as amended. Grants may be made to public bodies and private nonprofit community development corporations or entities. Grants are 

made to identify and analyze business opportunities that will use 

local rural economic and human resources: to identify, train, and 

provide technical assistance to rural entrepreneurs and managers; 

to establish business support centers; to conduct economic development planning and coordination, and leadership development; and 

to establish centers for training, technology, and trade that will 

provide training to rural businesses in the utilization of interactive 

communications technologies. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $79,665,000 for 

the Rural Business Program Account. 

The following table provides the Committee’s recommendations, 

as compared to the fiscal year 2011 and budget request levels: 

RURAL BUSINESS PROGRAM ACCOUNT 

[Loan levels and budget authority in thousands of dollars] 

Fiscal year 2011 

appropriation 

2012 budget 

request 

Committee 

recommendations 

Loan levels: 

Business and Industry guaranteed loans loan levels ...................... 887,332 822,884 822,886 
57 

RURAL BUSINESS PROGRAM ACCOUNT—Continued 

[Loan levels and budget authority in thousands of dollars] 

Fiscal year 2011 

appropriation 

2012 budget 

request 

Committee 

recommendations 

Budget authority: 

Business and industry guaranteed loans ........................................ 44,899 52,500 45,341 

Business enterprise grants ............................................................... 34,930 29,874 29,318 

Business opportunity grants ............................................................. 2,478 7,483 2,106 

Delta Regional Authority grants ....................................................... 2,973 ........................ 2,900 

Total budget authority .................................................................. 85,280 89,857 79,665 

Rural Business Program Account.—The Committee recommends 

$475,000 for transportation technical assistance. 

The Committee directs that of the $4,000,000 recommended for 

grants to benefit Federally Recognized Native American Tribes, 

$250,000 shall be used to implement an American Indian and Alaska Native passenger transportation development and assistance 

initiative. 

The Committee encourages the Department to consider applications for grants to rural public television broadcasting systems. 

RURAL DEVELOPMENT LOAN FUND PROGRAM ACCOUNT

[In thousands of dollars] 

Fiscal year— 

House allowance Committee 

recommendation 2011 level 2012 request 

Estimated loan level ............................................. 19,143 36,376 14,643 20,661 

Direct loan subsidy ............................................... 7,385 12,324 4,961 7,000 

Administrative expenses ....................................... 4,931 4,941 3,473 4,684 

Total, loan subsidies and administrative 

expenses ............................................. 12,316 17,265 8,434 11,684 

The rural development (intermediary relending) loan program 

was originally authorized by the Economic Opportunity Act of 1964 

(Public Law 88–452). The making of rural development loans by 

the Department of Agriculture was reauthorized by Public Law 99– 

425, the Human Services Reauthorization Act of 1986. 

Loans are made to intermediary borrowers (small investment 

groups) who in turn will reloan the funds to rural businesses, community development corporations, private nonprofit organizations, 

public agencies, et cetera, for the purpose of improving business, 

industry, community facilities, and employment opportunities and 

diversification of the economy in rural areas. 

The Federal Credit Reform Act of 1990 established the program 

account. Appropriations to this account will be used to cover the 

lifetime subsidy costs associated with the direct loans obligated in 

2011, as well as for administrative expenses. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $11,684,000 for 

the Rural Development Loan Fund Program Account. 
58 

RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT

[In thousands of dollars] 

Estimated loan 

level 

Fiscal year 2011 level ........................................................................................................................................ 33,077 

Fiscal year 2012 request ................................................................................................................................... 33,077 

House allowance ................................................................................................................................................ 33,077 

Committee recommendation .............................................................................................................................. 33,077 

The Rural Economic Development Loans program was established by the Reconciliation Act of December 1987 (Public Law 

100–203), which amended the Rural Electrification Act of 1936 (Act 

of May 20, 1936), by establishing a new section 313. This section 

of the Rural Electrification Act (7 U.S.C. 901) established a cushion 

of credits payment program and created the rural economic development subaccount. The Administrator of RUS is authorized under 

the act to utilize funds in this program to provide zero interest 

loans to electric and telecommunications borrowers for the purpose 

of promoting rural economic development and job creation projects, 

including funding for feasibility studies, startup costs, and other 

reasonable expenses for the purpose of fostering rural economic development. 

COMMITTEE RECOMMENDATION

The Committee recommends a loan program level of $33,077,000, 

to be funded from earnings on the Cushion of Credit and fees on 

guaranteed underwriting loans made pursuant to section 313A of 

the Rural Electrification Act of 1936. 

RURAL COOPERATIVE DEVELOPMENT GRANTS

Appropriations, 2011 ............................................................................. $30,193,000 

Budget estimate, 2012 ........................................................................... 35,854,000 

House allowance .................................................................................... 22,325,000 

Committee recommendation ................................................................. 27,915,000 

Rural cooperative development grants are authorized under section 310B(e) of the Consolidated Farm and Rural Development Act, 

as amended. Grants are made to fund the establishment and operation of centers for rural cooperative development with their primary purpose being the improvement of economic conditions in 

rural areas. Grants may be made to nonprofit institutions or institutions of higher education. Grants may be used to pay up to 75 

percent of the cost of the project and associated administrative 

costs. The applicant must contribute at least 25 percent from nonFederal sources, except 1994 institutions, which only need to provide 5 percent. Grants are competitive and are awarded based on 

specific selection criteria. 

Cooperative research agreements are authorized by 7 U.S.C. 

2204b. The funds are used for cooperative research agreements, 

primarily with colleges and universities, on critical operational, organizational, and structural issues facing cooperatives. 

Cooperative agreements are authorized under 7 U.S.C. 2201 to 

any qualified State departments of agriculture, university, and 

other State entity to conduct research that will strengthen and en-
59 

hance the operations of agricultural marketing cooperatives in 

rural areas. 

The Appropriate Technology Transfer for Rural Areas [ATTRA] 

program was first authorized by the Food Security Act of 1985. The 

program provides information and technical assistance to agricultural producers to adopt sustainable agricultural practices that are 

environmentally friendly and lower production costs. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $27,915,000 for 

Rural Cooperative Development Grants. 

Of the funds recommended, $2,250,000 is for the Appropriate 

Technology Transfer for Rural Areas program. 

The Committee has included language in the bill that not more 

than $2,938,000 shall be made available to cooperatives or associations of cooperatives whose primary focus is to provide assistance 

to small, minority producers. 

Value Added.—The Committee recommends $16,005,000 for 

value-added agricultural product market development grants. 

RURAL MICROENTERPRISE INVESTMENT PROGRAM

Appropriations, 2011 ............................................................................. ........................... 

Budget estimate, 2012 ........................................................................... $5,700,000 

House allowance .................................................................................... ........................... 

Committee recommendation ................................................................. ........................... 

This program, authorized by section 379E of the Consolidated 

Farm and Rural Development Act (7 U.S.C. 1981 et seq.), provides 

loans and grants to intermediaries that assist micro-entrepreneurs. 

COMMITTEE RECOMMENDATIONS

The Committee does not recommend an appropriation for the 

Rural Microenterprise Investment Program. 

The following table provides the Committee’s recommendation as 

compared to the fiscal year 2011 and budget request levels: 

RURAL MICROENTERPRISE INVESTMENT PROGRAM 

[In thousands of dollars] 

Fiscal year 2011 level 2012 request Committee recommendation 

Estimated loan level .................................................................................. ........................ 22,450 ........................

Loan subsidy .............................................................................................. ........................ 3,500 ........................

Grants ........................................................................................................ ........................ 2,200 ........................

RURAL ENERGY FOR AMERICA PROGRAM

Appropriations, 2011 ............................................................................. $4,990,000 

Budget estimate, 2012 ........................................................................... 36,788,000 

House allowance .................................................................................... 2,282,000 

Committee recommendation ................................................................. 4,500,000 

The Rural Energy for America Program is authorized under section 9007 of the Farm Security and Rural Investment Act of 2002 

(7 U.S.C. 8107). This program may fund energy audits, direct 

loans, loan guarantees, and grants to farmers, ranchers, and small 
60 

rural businesses for the purchase of renewable energy systems and 

for energy efficiency improvements. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $4,500,000 for 

the Rural Energy for America Program. 

The following table provides the Committee’s recommendation as 

compared to the fiscal year 2011 and budget request levels: 

RURAL ENERGY FOR AMERICA PROGRAM 

[In thousands of dollars] 

Fiscal year 2011 level 2012 request Committee recommendation 

Estimated loan level .................................................................................. 5,382 10,645 8,591 

Guaranteed loan subsidy ........................................................................... 2,495 2,788 2,250 

Grants ........................................................................................................ 2,495 34,000 2,250 

RURAL UTILITIES SERVICE

The Rural Utilities Service [RUS] was established under the Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994 (Public Law 103–354), October 13, 1994. 

RUS administers the electric and telephone programs of the former 

Rural Electrification Administration and the water and waste programs of the former Rural Development Administration. 

RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT

Appropriations, 2011 ............................................................................. $527,944,000 

Budget estimate, 2012 ........................................................................... 488,978,000 

House allowance .................................................................................... 496,099,000 

Committee recommendation ................................................................. 509,295,000 

The water and waste disposal program is authorized by sections 

306, 306A, 309A, 306C, 306D, 306E, and 310B of the Consolidated 

Farm and Rural Development Act (7 U.S.C. 1921 et seq., as amended). This program makes loans for water and waste development 

costs. Development loans are made to associations, including corporations operating on a nonprofit basis, municipalities and similar 

organizations, generally designated as public or quasi-public agencies, that propose projects for the development, storage, treatment, 

purification, and distribution of domestic water or the collection, 

treatment, or disposal of waste in rural areas. Such grants may not 

exceed 75 percent of the development cost of the projects and can 

supplement other funds borrowed or furnished by applicants to pay 

development costs. 

The solid waste grant program is authorized under section 

310B(b) of the Consolidated Farm and Rural Development Act. 

Grants are made to public bodies and private nonprofit organizations to provide technical assistance to local and regional governments for the purpose of reducing or eliminating pollution of water 

resources and for improving the planning and management of solid 

waste disposal facilities. 
61 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $509,295,000 for 

the Rural Water and Waste Disposal Program Account. 

The Committee recommends $67,200,000 for water and waste 

disposal systems grants for Native Americans, including Native 

Alaskans, the Colonias, and residents of Hawaiian Home Lands. 

The Committee recognizes the special needs and problems for delivery of basic services to these populations. In addition, the Committee makes up to $15,000,000 available for the circuit rider program. 

The following table provides the Committee’s recommendations, 

as compared to the fiscal year 2011 and budget request levels: 

RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT 

[Loan levels and budget authority in thousands of dollars] 

Fiscal year 2011 

appropriation 

2012 budget 

request 

Committee 

recommendation 

Loan levels: 

Water and waste disposal direct loans ............................... 896,469 770,230 730,689 

Water and waste disposal guaranteed loans ...................... 75,000 11,950 ............................

Total loan levels ............................................................... 971,469 782,180 730,689 

Budget authority: 

Water and waste disposal direct loans ............................... 76,917 73,788 70,000 

Water and waste disposal guaranteed loans ...................... ............................ 190 ............................

Water and waste disposal grants ........................................ 434,130 409,510 425,110 

Solid waste management grants ......................................... 3,434 4,000 2,919 

Water well system grants ..................................................... 991 993 844 

Water and waste water revolving funds .............................. 496 497 422 

High energy cost grants ....................................................... 11,976 ............................ 10,000 

Total budget authority ...................................................... 527,944 488,978 509,295 

RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM

ACCOUNT

The Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) provides the statutory authority for the electric and telecommunications programs. 

The Federal Credit Reform Act of 1990 (Public Law 101–508) established the program account. An appropriation to this account 

will be used to cover the lifetime subsidy costs associated with the 

direct loans obligated and loan guarantees committed in fiscal year 

2012, as well as for administrative expenses. 

COMMITTEE RECOMMENDATIONS

The following table reflects the Committee’s recommendation for 

the Rural Electrification and Telecommunications Loans Program 

Account, the loan subsidy and administrative expenses, as compared to the fiscal year 2011 and budget request levels: 
62 

RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM ACCOUNT 

[In thousands of dollars] 

Fiscal year— House allowance Committee recommendation 2011 level 2012 request 

Loan authorizations: 

Electric: 

Direct, 5 percent ................................. 100,000 100,000 100,000 100,000 

Direct FFB ........................................... 6,500,000 6,000,000 6,500,000 6,500,000 

Guaranteed underwriting .................... 499,000 .......................... .......................... 424,286 

Subtotal .......................................... 7,099,000 6,100,000 6,600,000 7,024,286 

Telecommunications: 

Direct, 5 percent ................................. 145,000 145,000 145,000 145,000 

Direct, Treasury rate ........................... 250,000 250,000 250,000 250,000 

Direct, FFB .......................................... 295,000 295,000 295,000 295,000 

Subtotal .......................................... 690,000 690,000 690,000 690,000 

Total, loan authorizations ....................... 7,789,000 6,790,000 7,290,000 7,714,286 

Guaranteed underwriting budget authority .......... 699 .......................... .......................... 594 

Administrative expenses ....................................... 38,297 39,959 29,766 36,382 

DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND PROGRAM

LOANS AND GRANTS

[In thousands of dollars] 

Fiscal year— 

House allowance Committee 

recommendation 2011 level 2012 request 

Loan and grant levels: 

Distance Learning and Telemedicine Program: 

Grants ................................................. 32,435 30,000 14,883 28,570 

Broadband program: 

Treasury rate loans ...................................... 399,200 .......................... 210,360 282,686 

Treasury rate loans budget authority .......... 22,275 .......................... 5,953 8,000 

Grants .......................................................... 13,379 17,976 .......................... 10,372 

Total DLT and Broadband program level ......................................................... 445,014 47,976 225,243 321,628 

Total DLT and Broadband budget authority .................................................. 68,089 47,976 20,836 46,942 

The Distance Learning, Telemedicine, and Broadband Program is 

authorized by the Food, Agriculture, Conservation and Trade Act 

of 1990 (7 U.S.C. 950aaa et seq.), as amended by the Federal Agriculture Improvement and Reform Act of 1996 (Public Law 104– 

127). This program provides incentives to improve the quality of 

phone services, to provide access to advanced telecommunications 

services and computer networks, and to improve rural opportunities. 

This program provides the facilities and equipment to link rural 

education and medical facilities with more urban centers and other 

facilities providing rural residents access to better health care 

through technology and increasing educational opportunities for 

rural students. These funds are available for loans and grants. 
63 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $46,942,000 for 

the Distance Learning, Telemedicine, and Broadband Program. The 

Committee recommendation includes $3,000,000 for public broadcasting systems grants to allow noncommercial educational television broadcast stations that serve rural areas to convert from 

analog to digital operations. Funds recommended for the RUS 

broadband program are intended to promote broadband availability 

in those areas where there is not otherwise a business case for private investment in a broadband network. The Committee encourages RUS to focus expenditures on projects that bring broadband 

service to currently unserved households. 

The Committee is concerned about the longstanding, unmet 

health needs in the Mississippi River Delta. The Committee recommendation includes $3,000,000 to address critical health care 

needs in the region, as authorized by section 379G of the Consolidated Farm and Rural Development Act. 

Broadband Grants.—Of the funds recommended, $10,372,000 in 

grants shall be made available to support broadband transmission 

and local dial-up Internet services for rural areas. 
(64) 

TITLE IV 

DOMESTIC FOOD PROGRAMS 

OFFICE OF THE UNDER SECRETARY FOR FOOD, NUTRITION AND

CONSUMER SERVICES

Appropriations, 2011 ............................................................................. $811,000 

Budget estimate, 2012 ........................................................................... 828,000 

House allowance .................................................................................... 684,000 

Committee recommendation ................................................................. 770,000 

The Office of the Under Secretary for Food, Nutrition and Consumer Services provides direction and coordination in carrying out 

the laws enacted by the Congress with respect to the Department’s 

nutrition assistance activities. The Office has oversight and management responsibilities for the Food and Nutrition Service. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $770,000 for the 

Office of the Under Secretary for Food, Nutrition and Consumer 

Services. 

FOOD AND NUTRITION SERVICE

The Food and Nutrition Service represents an organizational effort to eliminate hunger and malnutrition in this country. Nutrition assistance programs provide access to a nutritionally adequate 

diet for families and persons with low incomes and encourage better eating patterns among the Nation’s children. These programs 

include: 

Child Nutrition Programs.—The National School Lunch and 

School Breakfast, Summer Food Service, and Child and Adult Care 

Food programs provide funding to the States, Puerto Rico, the Virgin Islands, American Samoa, and Guam for use in serving nutritious lunches and breakfasts to children attending schools of high 

school grades and under, to children of preschool age in child care 

centers, and to children in other institutions in order to improve 

the health and well-being of the Nation’s children, and broaden the 

markets for agricultural food commodities. Through the Special 

Milk Program, assistance is provided to the States for making reimbursement payments to eligible schools and child care institutions which institute or expand milk service in order to increase 

the consumption of fluid milk by children. Funds for this program 

are provided by direct appropriation and transfer from section 32. 

Special Supplemental Nutrition Program for Women, Infants, 

and Children [WIC].—This program safeguards the health of pregnant, postpartum, and breast-feeding women, infants, and children 

up to age 5 who are at nutritional risk because of inadequate nutrition and income by providing supplemental foods. The delivery of 
65 

supplemental foods may be done through health clinics, vouchers 

redeemable at retail food stores, or other approved methods which 

a cooperating State health agency may select. Funds for this program are provided by direct appropriation. 

Supplemental Nutrition Assistance Program.—This program 

seeks to improve nutritional standards of needy persons and families. Assistance is provided to eligible households to enable them to 

obtain a better diet by increasing their food purchasing capability, 

usually by furnishing benefits in the form of electronic access to 

funds. The program also includes Nutrition Assistance to Puerto 

Rico. 

The program also includes the Food Distribution Program on Indian Reservations, which provides nutritious agricultural commodities to low-income persons living on or near Indian reservations 

who choose not to participate in the Supplemental Nutrition Assistance Program. 

The Food, Conservation, and Energy Act of 2008, Public Law 

110–246, provides that $248,750,000 in fiscal year 2012 from funds 

appropriated in the Supplemental Nutrition Assistance Program 

account be used to purchase commodities for The Emergency Food 

Assistance Program [TEFAP]. 

Commodity Assistance Program [CAP].—This program provides 

funding for the Commodity Supplemental Food Program [CSFP], 

the Farmers’ Market Nutrition Program, Disaster Assistance, Pacific Island Assistance, and administrative expenses for TEFAP. 

CSFP provides supplemental foods to infants and children up to 

age 6, and to pregnant, postpartum, and breast-feeding women 

with low incomes, and who reside in approved project areas. In addition, this program operates commodity distribution projects directed at low-income elderly persons. 

TEFAP provides commodities and grant funds to State agencies 

to assist in the cost of storage and distribution of donated commodities. 

Nutritious agricultural commodities are provided to residents of 

the Federated States of Micronesia and the Marshall Islands. Cash 

assistance is provided to distributing agencies to assist them in 

meeting administrative expenses incurred. It also provides funding 

for use in non-presidentially declared disasters, and for FNS’ administrative costs in connection with relief for all disasters. Funds 

for this program are provided by direct appropriation. 

Nutrition Programs Administration.—Most salaries and Federal 

operating expenses of the Food and Nutrition Service are funded 

from this account. Also included is the Center for Nutrition Policy 

and Promotion [CNPP] which oversees improvements in and revisions to the food guidance systems, and serves as the focal point 

for advancing and coordinating nutrition promotion and education 

policy to improve the health of all Americans. 
66 

CHILD NUTRITION PROGRAMS

[In thousands of dollars] 

Appropriation Section 32 transfers Total 

Appropriations, 2011 ............................................................... 12,046,169 5,277,574 17,323,743 

Budget estimate, 2012 ............................................................ 18,810,571 .............................. 18,810,571 

House allowance ...................................................................... 18,770,442 .............................. 18,770,442 

Committee recommendation .................................................... 18,151,176 .............................. 18,151,176

The Child Nutrition Programs, authorized by the Richard B. 

Russell National School Lunch Act (Public Law 79–396) and the 

Child Nutrition Act of 1966 (Public Law 89–642), provide Federal 

assistance to State agencies in the form of cash and commodities 

for use in preparing and serving nutritious meals to children while 

they are attending school, residing in service institutions, or participating in other organized activities away from home. The purpose of these programs is to help maintain the health and proper 

physical development of America’s children. Milk is provided to 

children either free or at a low cost, depending on their family income level. FNS provides cash subsidies to States for administering 

the programs and directly administers the program in the States 

which choose not to do so. Grants are also made for nutritional 

training and surveys and for State administrative expenses. Under 

current law, most of these payments are made on the basis of reimbursement rates established by law and applied to lunches and 

breakfasts actually served by the States. The reimbursement rates 

are adjusted annually to reflect changes in the Consumer Price 

Index for food away from home. 

COMMITTEE RECOMMENDATIONS

The Committee recommends $18,151,176,000 for the Child Nutrition Programs. 

The Committee’s recommendation provides for the following annual rates for the child nutrition programs. 

TOTAL OBLIGATIONAL AUTHORITY 

[In thousands of dollars] 

Child nutrition programs 2011 level 1 2012 budget Committee 

recommendation 

School Lunch Program ......................................................................... 9,981,095 10,884,019 10,169,615 

School Breakfast Program ................................................................... 3,093,970 3,337,699 3,313,848 

Child and Adult Care Food Program ................................................... 2,686,344 2,818,405 2,831,543 

Summer Food Service Program ............................................................ 392,680 400,505 401,998 

Special Milk Program ........................................................................... 12,512 13,069 13,240 

State administrative expenses ............................................................ 206,943 279,034 279,016 

Commodity procurement ...................................................................... 907,919 972,651 1,075,727 

Team Nutrition ..................................................................................... 15,004 15,016 15,016 

Food safety education .......................................................................... 2,506 2,510 2,510 

Coordinated review .............................................................................. 5,745 9,763 9,763 

Computer support ................................................................................ 9,518 9,525 9,525 

CACFP training and technical assistance ........................................... 3,530 3,537 3,537 

Child Nutrition Program Studies and Evaluations .............................. 2,994 19,000 19,000 

Hunger-Free Community Grants .......................................................... .......................... 5,000 ..........................

Healthier U.S. School Challenge .......................................................... 698 1,500 1,500 

Farm to school tactical team .............................................................. .......................... 2,000 2,000

Payment Accuracy ................................................................................ 2,333 2,338 2,338 

School breakfast expansion grants ..................................................... .......................... 10,000 1,000 
67 

TOTAL OBLIGATIONAL AUTHORITY—Continued 

[In thousands of dollars] 

Child nutrition programs 2011 level 1 2012 budget Committee 

recommendation 

State childhood hunger grants ............................................................ .......................... 25,000 ..........................

1 Does not include a rescission of $48,000. 

The Committee expects FNS to utilize the National Food Service 

Management Institute to carry out the food safety education program. 

SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, 

AND CHILDREN [WIC]

Appropriations, 2011 ............................................................................. $6,734,027,000 

Budget estimate, 2012 ........................................................................... 7,390,100,000 

House allowance .................................................................................... 6,001,074,000 

Committee recommendation ................................................................. 6,582,497,000 

The special supplemental nutrition program for women, infants, 

and children [WIC] is authorized by section 17 of the Child Nutrition Act of 1966. Its purpose is to safeguard the health of pregnant, 

breast-feeding and postpartum women and infants, and children up 

to age 5 who are at nutritional risk because of inadequate nutrition 

and inadequate income. 

The WIC program food packages are designed to provide foods 

which studies have demonstrated are lacking in the diets of the 

WIC program target population. The authorized supplemental 

foods are iron-fortified breakfast cereal, fruit or vegetable juice 

which contains vitamin C, dry beans, peas, and peanut butter. 

There are three general types of delivery systems for WIC foods: 

(1) retail purchase in which participants obtain supplemental foods 

through retail stores; (2) home delivery systems in which food is 

delivered to the participant’s home; and (3) direct distribution systems in which participants pick up food from a distribution outlet. 

The food is free of charge to all participants. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $6,582,497,000 

for the Special Supplemental Food Program for Women, Infants, 

and Children [WIC]. 

The Committee recommendation fully funds estimated WIC participation in fiscal year 2012. The Committee recommendation includes $60,000,000 for breastfeeding support initiatives. 

SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

[In thousands of dollars] 

Expenses Amount in 

reserve 

Puerto Rico and 

American 

Samoa 

TEFAP 

commodity 

purchases 

Total 

Appropriations, 2011 ................................. 65,614,155 3,000,000 1,751,611 247,500 70,613,266 

Budget estimate, 2012 .............................. 66,176,441 5,000,000 1,758,617 248,750 73,183,808 

House allowance ........................................ 66,165,941 3,000,000 1,758,617 248,750 71,173,308 

Committee recommendation ...................... 75,299,637 3,000,000 1,842,835 260,250 80,402,722 
68 

The Food Stamp Program was reauthorized through fiscal year 

2012 and renamed the Supplemental Nutrition Assistance Program 

[SNAP] in the Food, Conservation, and Energy Act of 2008. The 

Supplemental Nutrition Assistance Program attempts to alleviate 

hunger and malnutrition among low-income persons by increasing 

their food purchasing power. Eligible households receive SNAP 

benefits with which they can purchase food through regular retail 

stores. 

Other programs funded through SNAP include Nutrition Assistance to Puerto Rico and American Samoa, the Food Distribution 

Program on Indian Reservations, the Emergency Food Assistance 

Program, and the Community Food Projects program. 

The Supplemental Nutrition Assistance Program is currently in 

operation in all 50 States, the District of Columbia, the Virgin Islands, and Guam. Participating households receive food benefits, 

the value of which is determined by household size and income. 

The cost of the benefits is paid by the Federal Government. As required by law, the Food and Nutrition Service annually revises 

household benefit allotments to reflect changes in the cost of the 

thrifty food plan. 

Administrative Costs.—All direct and indirect administrative 

costs incurred for certification of households, issuance of benefits, 

quality control, outreach, and fair hearing efforts are shared by the 

Federal Government and the States on a 50–50 basis. 

State Antifraud Activities.—Under the provisions of the Food and 

Nutrition Act of 2008, States are eligible to be reimbursed for 50 

percent of the costs of their fraud investigations and prosecutions. 

States are required to implement an employment and training 

program for the purpose of assisting members of households participating in SNAP in gaining skills, training, or experience that 

will increase their ability to obtain regular employment. The Department of Agriculture has implemented a grant program to 

States to assist them in providing employment and training services. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $80,402,722,000 

for the Supplemental Nutrition Assistance Program. The Committee recommendation includes $3,500,000 for financial management systems modernization and $2,000,000 for information technology modernization and support. Of the amount recommended, 

$3,000,000,000 is made available as a contingency reserve. The 

Committee notes that $3,000,000,000 was made available in fiscal 

year 2011 as a contingency reserve. The Committee recommendation includes language that permits the Food and Nutrition Service 

to conduct studies and evaluations consistent with the budget request. 

Food Distribution Program on Indian Reservations.—The Committee encourages the Secretary to continue the purchase of bison 

from producer-owned and Native American owned cooperatives for 

the Food Distribution Program on Indian Reservations. Although 

funding is not provided specifically for bison purchase, historically 

these purchases have been important for the Native American population both economically and nutritionally. 
69 

Northern Mariana Islands.—The Committee is aware Public Law 

96–597 permits the Secretary to extend programs administered by 

USDA to the territories. The Committee encourages the Secretary 

to work with the government of the Commonwealth of Northern 

Mariana Islands [CNMI] on a plan to integrate the CNMI into the 

national Supplemental Nutrition Assistance Program. 

COMMODITY ASSISTANCE PROGRAM

Appropriations, 2011 ............................................................................. $246,126,000 

Budget estimate, 2012 ........................................................................... 249,619,000 

House allowance .................................................................................... 195,960,000 

Committee recommendation ................................................................. 242,336,000 

The Commodity Assistance Program includes funding for the 

Commodity Supplemental Food Program and funding to pay expenses associated with the storage and distribution of commodities 

through The Emergency Food Assistance Program. 

The Commodity Supplemental Food Program [CSFP].—Authorized by section 4(a) of the Agricultural and Consumer Protection 

Act of 1973 (7 U.S.C. 612c note), as amended in 1981 by Public 

Law 97–98, this program provides supplemental food to infants and 

children up to age 6, and to pregnant, post partum, and breastfeeding women who have low incomes, and reside in approved 

project areas. In addition, the program operates commodity distribution projects directed at low-income elderly persons 60 years 

of age or older. 

The foods for CSFP are provided by the Department of Agriculture for distribution through State agencies. The authorized 

commodities include: iron-fortified infant formula, rice cereal, 

cheese, canned juice, evaporated milk and/or nonfat dry milk, 

canned vegetables or fruits, canned meat or poultry, egg mix, dehydrated potatoes, farina, and peanut butter and dry beans. Elderly 

participants may receive all commodities except iron-fortified infant 

formula and rice cereal. 

The Emergency Food Assistance Program [TEFAP].—Authorized 

by the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et 

seq.), as amended, the program provides nutrition assistance to 

low-income people through prepared meals served on site and 

through the distribution of commodities to low-income households 

for home consumption. The commodities are provided by USDA to 

State agencies for distribution through State-established networks. 

State agencies make the commodities available to local organizations, such as soup kitchens, food pantries, food banks, and community action agencies, for their use in providing nutrition assistance 

to those in need. 

Funds are administered by FNS through grants to State agencies 

which operate commodity distribution programs. Allocation of the 

funds to States is based on a formula which considers the States’ 

unemployment rate and the number of persons with income below 

the poverty level. 

The Food, Conservation, and Energy Act of 2008 makes 

$248,750,000 available for the purchase of TEFAP commodities in 

fiscal year 2012. In addition to the commodities purchased specifically for TEFAP, commodities obtained under agriculture support 
70 

and surplus removal programs are donated to States for distribution through TEFAP. 

Pacific Island and Disaster Assistance.—This program provides 

funding for assistance to the nuclear-affected islands in the form of 

commodities and administrative funds. It also provides funding for 

use in non-presidentially declared disasters and for FNS’ administrative costs in connection with relief for all disasters. 

Farmers’ Market Nutrition Program.—The Farmers’ Market Nutrition Program [FMNP] provides WIC or WIC-eligible participants 

with coupons to purchase fresh, nutritious, unprepared foods, such 

as fruits and vegetables, from farmers’ markets. This benefits both 

participants and local farmers by increasing the awareness and use 

of farmers’ markets by low-income households. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $242,336,000 for 

the Commodity Assistance Program. The Committee continues to 

encourage the Department to distribute Commodity Assistance Program funds equitably among the States, based on an assessment 

of the needs and priorities of each State and the State’s preference 

to receive commodity allocations through each of the programs 

funded under this account. 

Commodity Supplemental Food Program.—The Committee recommends $176,788,000 for the Commodity Supplemental Food Program. This amount fully funds participation in fiscal year 2012. 

Farmers’ Market Nutrition Program.—The Committee is aware 

that the Farmers’ Market Nutrition Program provides fresh fruits 

and vegetables to low-income mothers and children, benefiting not 

only WIC participants, but local farmers as well. Therefore, the 

Committee recommends $16,548,000 for the Farmers’ Market Nutrition Program and directs the Secretary to obligate these funds 

within 45 days. 

The Emergency Food Assistance Program.—The Food, Conservation, and Energy Act of 2008 provides $248,750,000 for TEFAP 

commodities to be purchased with Supplemental Nutrition Assistance Program funds. The Committee recommendation includes 

$48,000,000 for TEFAP administrative funding. In addition, the 

Committee recommendation grants the Secretary authority to 

transfer up to an additional 10 percent from TEFAP commodities 

for this purpose. 

NUTRITION PROGRAMS ADMINISTRATION

Appropriations, 2011 ............................................................................. $147,505,000 

Budget estimate, 2012 ........................................................................... 170,471,000 

House allowance .................................................................................... 124,025,000 

Committee recommendation ................................................................. 140,130,000 

The Nutrition Programs Administration appropriation provides 

for most of the Federal operating expenses of the Food and Nutrition Service, which includes the Child Nutrition Programs; Special 

Milk Program; Special Supplemental Nutrition Program for 

Women, Infants, and Children [WIC]; Supplemental Nutrition Assistance Program; Nutrition Assistance for Puerto Rico; the Commodity Assistance Program, including the Commodity Supplemental Food Program and the Emergency Food Assistance Pro-
71 

gram; and Farmers’ Market Nutrition Program and Pacific Island 

and Disaster Assistance. 

The major objective of Nutrition Programs Administration is to 

efficiently and effectively carry out the nutrition assistance programs mandated by law. This is to be accomplished by the following: (1) giving clear and consistent guidance and supervision to 

State agencies and other cooperators; (2) assisting the States and 

other cooperators by providing program, managerial, financial, and 

other advice and expertise; (3) measuring, reviewing, and analyzing 

the progress being made toward achieving program objectives; and 

(4) carrying out regular staff support functions. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $140,130,000 for 

Nutrition Programs Administration. 
(72) 

TITLE V 

FOREIGN ASSISTANCE AND RELATED PROGRAMS 

FOREIGN AGRICULTURAL SERVICE

SALARIES AND EXPENSES

[In thousands of dollars] 

Appropriations Transfers from 

loan accounts Total 

Appropriations, 2011 ........................................................................... 185,628 6,452 192,080 

Budget estimate, 2012 ........................................................................ 229,730 6,465 236,195 

House allowance .................................................................................. 171,155 6,415 177,570 

Committee recommendation ................................................................ 176,347 6,129 182,476 

The Foreign Agricultural Service [FAS] was established March 

10, 1953, by Secretary’s Memorandum No. 1320, supplement 1. 

Public Law 83–690, approved August 28, 1954, transferred the agricultural attache ́s from the Department of State to the Foreign Agricultural Service. 

The mission of FAS overseas is to represent U.S. agricultural interests, to promote export of domestic farm products, improve world 

trade conditions, and report on agricultural production and trade 

in foreign countries. FAS staff are stationed at 98 offices around 

the world where they provide expertise in agricultural economics 

and marketing, as well as provide attache ́ services. 

FAS carries out several export assistance programs to counter 

the adverse effects of unfair trade practices by competitors on U.S. 

agricultural trade. The Export Enhancement Program uses CCCowned commodities as export bonuses to provide export enhancements to U.S. producers. The Market Access Program [MAP] conducts both generic and brand-identified promotional programs in 

conjunction with nonprofit agricultural associations and private 

firms financed through reimbursable CCC payments. 

The General Sales Manager was established pursuant to section 

5(f) of the charter of the Commodity Credit Corporation and 15 

U.S.C. 714–714p. The funds allocated to the General Sales Manager are used for conducting the following programs: (1) CCC Export Credit Guarantee Program (GSM–102), including facilities financing guarantees, (2) Food for Peace, (3) section 416b Overseas 

Donations Program, (4) Market Access Program, and (5) programs 

authorized by the Commodity Credit Corporation Charter Act including barter, export sales of most CCC-owned commodities, export payments, and other programs as assigned to encourage and 

enhance the export of U.S. agricultural commodities. 
73 

COMMITTEE RECOMMENDATIONS

The Committee recommends $182,476,000 for the Foreign Agri- cultural Service, including a direct appropriation of $176,347,000. 

Borlaug Fellows Program.—The Committee recommendation includes $1,000,000 for the Borlaug International Agricultural 

Science and Technology Fellows Program. This program provides 

training for international scientists and policymakers from selected 

developing countries. The fellows work closely with U.S. specialists 

in their fields of expertise and apply that knowledge in their home 

countries. The Committee recognizes the importance of this program in helping developing countries strengthen their agricultural 

practices and food security. 

Cochran Fellowship Program.—The Committee recommendation 

includes $5,000,000 for the Cochran Fellowship Program. The Committee encourages the Secretary to continue to provide additional 

support for the program through the Commodity Credit Corporation Emerging Markets Program. 

Foreign Market Development Cooperator Program.—The Committee expects the FAS to fund the Foreign Market Development 

Cooperator Program. 

Market Access Program.—The Committee continues the full mandatory funding for the Market Access Program and expects the Department to administer the program as authorized in 7 U.S.C. 

5623, without changing the eligibility requirements for participation of cooperative organizations, small businesses, trade associations, and other entities. 

FOOD FOR PEACE TITLE I DIRECT CREDIT AND FOOD FOR PROGRESS

PROGRAM ACCOUNT

Appropriations, 2011 ............................................................................. $2,806,000 

Budget estimate, 2012 ........................................................................... 2,812,000 

House allowance .................................................................................... 2,366,000 

Committee recommendation ................................................................. 2,666,000 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $2,666,000 for 

administrative expenses to continue servicing existing Food for 

Peace title I agreements. 

FOOD FOR PEACE TITLE II GRANTS

Appropriations, 2011 ............................................................................. $1,497,000,000 

Budget estimate, 2012 ........................................................................... 1,690,000,000 

House allowance .................................................................................... 1,032,084,000 

Committee recommendation ................................................................. 1,562,000,000 

The Committee recognizes the important mission of the Food for 

Peace Program to combat hunger and malnutrition; promote broadbased equitable and sustainable development; expand international 

trade; develop and expand export markets for U.S. agricultural 

commodities; and to foster and encourage the development of private enterprise and democratic participation in developing countries. The Committee strongly supports the continued efficient operation of this important program. 

Commodities Supplied in Connection With Dispositions Abroad 

(Title II) (7 U.S.C. 1721–1726).—Commodities are supplied without 
74 

cost through foreign governments to combat malnutrition and to 

meet famine and other emergency requirements. Commodities are 

also supplied for nonemergencies through public and private agencies, including intergovernmental organizations. The Commodity 

Credit Corporation pays ocean freight on shipments under this 

title, and may also pay overland transportation costs to a landlocked country, as well as internal distribution costs in emergency 

situations. The funds appropriated for title II are made available 

to private voluntary organizations and cooperatives to assist these 

organizations in meeting administrative and related costs. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $1,562,000,000 

for Food for Peace title II grants. 

The Committee strongly supports international food assistance 

for both non-emergency, long-term solutions to chronic hunger and 

for emergency operations which can literally mean the difference 

between life and death. Currently, the Horn of Africa is suffering 

from severe malnutrition which has reached the state of declared 

famine and is proving to be the humanitarian crisis of a generation. A severe drought in that region, made worse by insecurity and 

civil unrest, has put more than 12 million people in danger of starvation, and acute malnutrition rates for children under the age of 

5 exceeds 40 percent. Problems such as those in the Horn of Africa 

are compounded by escalating food and transportation costs which 

further reduce the amount of actual food that reaches victims in 

the field. Food costs have been reported by the World Bank to have 

risen 33 percent from similar costs just 1 year ago while demand 

for assistance world-wide escalates at a fast pace, as evidenced by 

the rise in appeals of the World Food Program from less than 

$1,000,000,000 in 2000 to $6,800,000,000 in 2010. For these reasons, within a period of declining Federal spending, the Committee 

has provided an increase of funding for Public Law 480 title II 

grants, and notes with concern the reality that rising program demand and consequential human tragedy in the absence of assistance are likely to occur. 

MC GOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD

NUTRITION PROGRAM GRANTS

Appropriations, 2011 ............................................................................. $199,101,000 

Budget estimate, 2012 ........................................................................... 200,500,000 

House allowance .................................................................................... 178,596,000 

Committee recommendation ................................................................. 188,000,000 

The McGovern-Dole International Food for Education and Child 

Nutrition Program helps support education, child development, and 

food security for some of the world’s poorest children. The program 

provides for donations of U.S. agricultural products, as well as financial and technical assistance, for school feeding and maternal 

and child nutrition projects in low-income, food-deficit countries 

that are committed to universal education. Commodities made 

available for donation through agreements with private voluntary 

organizations, cooperatives, intergovernmental organizations, and 

foreign governments may be donated for direct feeding or for local 
75 

sale to generate proceeds to support school feeding and nutrition 

projects. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $188,000,000 for 

the McGovern-Dole International Food for Education and Child Nutrition Program. 

COMMODITY CREDIT CORPORATION EXPORT LOANS PROGRAM ACCOUNT

(EXPORT CREDIT PROGRAMS AND GSM–102)

[In thousands of dollars] 

Guaranteed loan levels 1

Guaranteed loan subsidy 1Administrative 

expenses 

Appropriations, 2011 ........................................................................... 5,500,000 18,480 6,806 

Budget estimate, 2012 ........................................................................ 5,500,000 .......................... 6,820 

House allowance .................................................................................. 5,500,000 .......................... 6,767 

Committee recommendation ................................................................ 5,500,000 .......................... 6,465 

1 No appropriation required since export credit authorizations are permanent authority. 

In 1980, the Commodity Credit Corporation [CCC] instituted the 

Export Credit Guarantee Program (GSM–102) under its charter authority. With this program, CCC guarantees, for a fee, payments 

due U.S. exporters under deferred payment sales contracts (up to 

36 months) for defaults due to commercial as well as noncommercial risks. The risk to CCC extends from the date of export to the 

end of the deferred payment period covered in the export sales contract and covers only that portion of the payments agreed to in the 

assurance agreement. Operation of this program is based on criteria which will assure that it is used only where it is determined 

that it will develop new market opportunities and maintain and expand existing world markets for U.S. agricultural commodities. The 

program encourages U.S. financial institutions to provide financing 

to those areas where the institutions would be unwilling to provide 

financing in the absence of the CCC guarantees. CCC also provides 

facilities financing guarantees. 

The Federal Credit Reform Act of 1990 establishes the program 

account. The subsidy costs of the CCC export guarantee programs 

are exempt from the requirement of advance appropriations of 

budget authority according to section 504(c)(2) of the Federal Credit Reform Act of 1990, Public Law 101–508. Appropriations to this 

account will be used for administrative expenses. 
(76) 

TITLE VI 

RELATED AGENCIES AND FOOD AND DRUG 

ADMINISTRATION 

DEPARTMENT OF HEALTH AND HUMAN SERVICES 

FOOD AND DRUG ADMINISTRATION

The Food and Drug Administration [FDA] is a scientific regulatory agency whose mission is to promote and protect the public 

health and safety of Americans. FDA’s work is a blend of science 

and law. The Food and Drug Administration Amendments Act of 

2007 [FDAAA] (Public Law 110–85) reaffirmed the responsibilities 

of the FDA: to ensure safe and effective products reach the market 

to a timely way, and to monitor products for continued safety after 

they are in use. In addition, FDA is entrusted with two critical 

functions in the Nation’s war on terrorism: preventing willful contamination of all regulated products, including food, and improving 

the availability of medications to prevent or treat injuries caused 

by biological, chemical, radiological, or nuclear agents. 

The FDA Foods program has the primary responsibility for assuring that the food supply, quality of foods, food ingredients and 

dietary supplements are safe, sanitary, nutritious, wholesome, and 

honestly labeled, and that cosmetic products are safe and properly 

labeled. The variety and complexity of the food supply has grown 

dramatically while new and more complex safety issues, such as 

emerging microbial pathogens, natural toxins, and technological innovations in production and processing, have developed. This program plays a major role in keeping the United States food supply 

among the safest in the world. 

In January 2011, the Food Safety Modernization Act was signed 

into law. This law enables FDA to better protect public health by 

strengthening the food safety system. It enables FDA to focus more 

on preventing food safety problems rather than relying primarily 

on reacting to problems after they occur. The law also provides 

FDA with new enforcement authorities designed to achieve higher 

rates of compliance with prevention- and risk-based food safety 

standards and to better respond to and contain problems when 

they do occur. The law also gives FDA important new tools to hold 

imported foods to the same standards as domestic foods and directs 

FDA to build an integrated national food safety system in partnership with State and local authorities. 

The FDA Drugs programs are comprised of four separate areas, 

Human Drugs, Animal Drugs, Medical Devices and Biologics. FDA 

is responsible for the life cycle of products, including premarket review and postmarket surveillance of human and animal drugs, 

medical devices and biological products to ensure their safety and 

effectiveness. FDA is responsible for the life cycle of the product, 
77 

including premarket review and postmarket surveillance of human, 

animal and biological products to ensure their safety and efficacy. 

For Human Drugs this includes assuring that all drug products 

used for the prevention, diagnosis and treatment of disease are safe 

and effective. Additional procedures include the review of investigational new drug applications; evaluation of market applications for 

new and generic drugs, labeling and composition of prescription 

and over-the-counter drugs; monitoring the quality and safety of 

products manufactured in, or imported into, the United States; 

and, regulating the advertising and promotion of prescription 

drugs. The Animal Drugs and Feeds Program ensures only safe 

and beneficial veterinary drugs, intended for the treatment and/or 

prevention of diseases in animals and the improved production of 

food-producing animals, are approved for marketing. 

The FDA Biologics program assures that blood and blood products, blood test kits, vaccines, and therapeutics are pure, potent, 

safe, effective, and properly labeled. The program inspects blood 

banks and blood processors, licenses and inspects firms collecting 

human source plasma, evaluates and licenses biologics manufacturing firms and products; lot releases licensed products; and monitors adverse events associated with vaccine immunization, blood 

products, and other biologics. 

The FDA Devices and Radiological program ensures the safety 

and effectiveness of medical devices and eliminates unnecessary 

human exposure to manmade radiation from medical, occupational, 

and consumer products. In addition, the program enforces quality 

standards under the Mammography Quality Standards Act (Public 

Law 108–365). Medical devices include thousands of products from 

thermometers and contact lenses to heart pacemakers, hearing 

aids, and MRIs. Radiological products include items such as microwave ovens and video display terminals. 

FDA’s National Center for Toxicological Research in Jefferson, 

Arkansas, serves as a specialized resource, conducting peer-review 

scientific research that provides the basis for FDA to make sound 

science-based regulatory decisions through its premarket review 

and postmarket surveillance. The research is designed to define 

and understand the biological mechanisms of action underlying the 

toxicity of products and lead to developing methods to improve assessment of human exposure, susceptibility and risk of those products regulated by FDA. 

In 2009, Congress granted FDA new authority to regulate the 

manufacture, distribution, and marketing of tobacco products. FDA 

exercises this responsibility by protecting the public health from 

the health effects of tobacco, setting scientific standards and standards for tobacco product review, conducting compliance activities to 

enforce its authority over tobacco, and conducting public education 

and outreach about the health effects of tobacco products. 
78 

SALARIES AND EXPENSES

[In thousands of dollars] 

Appropriation User fees Total 

Appropriations, 2011 ....................................................................................... 2,447,021 1,233,480 3,680,501 

Budget estimate, 2012 .................................................................................... 2,730,910 1,556,748 4,287,658 

House allowance .............................................................................................. 2,147,958 1,520,415 3,668,373 

Committee recommendation ............................................................................ 2,497,021 1,393,366 3,890,387 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $2,497,021,000 

for FDA salaries and expenses. The Committee also recommends 

$702,172,000 in Prescription Drug User Fee Act user fee collections; $57,605,000 in Medical Device User Fee and Modernization 

Act user fee collections; $21,768,000 in Animal Drug User Fee Act 

user fee collections; $5,706,000 in Animal Generic Drug User Fee 

Act user fee collections; $477,000,000 in Tobacco Product user fee 

collections; $71,066,000 for Voluntary Qualified Importer Program 

user fee collections; $14,700,000 for food reinspection user fee collections; $12,364,000 for recall user fee collections; $19,318,000 in 

Mammography Quality Standards Act fee collections; and 

$11,667,000 in export and certification fees, as assumed in the 

President’s budget. The Committee recommendation includes bill 

language which prohibits FDA from developing, establishing, or operating any program of user fees authorized by 31 U.S.C. 9701. 

The Committee recommendation does not include proposed language regarding generic drug review user fees, medical products reinspection user fees, or international courier user fees. None of 

these user fee proposals have been authorized by Congress. The 

Committee will continue to monitor any action by the Congress regarding these proposed user fees. 

The following table reflects the Committee’s recommendations, as 

compared to the fiscal year 2011 and budget request levels: 

FOOD AND DRUG ADMINISTRATION SALARIES AND EXPENSES 

[In thousands of dollars] 

Fiscal year— Committee 

recommendation 2011 enacted 2012 request 

Centers and related field activities: 

Foods ........................................................................................... 835,682 955,287 867,061 

Center for Food Safety and Applied Nutrition [CFSAN] ..... 252,322 300,869 265,150 

Field Activities ................................................................... 583,360 654,418 601,911 

Human Drugs .............................................................................. 477,018 497,534 477,310 

Center for Drug Evaluation and Research [CDER] ........... 345,929 366,439 347,317 

Field Activities ................................................................... 131,089 131,095 129,993 

Biologics ...................................................................................... 212,014 224,933 211,974 

Center for Biologics Evaluation and Research [CBER] ..... 171,157 183,775 171,461 

Field Activities ................................................................... 40,857 41,158 40,513 

Animal Drugs .............................................................................. 139,178 147,898 138,021 
79 

FOOD AND DRUG ADMINISTRATION SALARIES AND EXPENSES—Continued 

[In thousands of dollars] 

Fiscal year— Committee 

recommendation 2011 enacted 2012 request 

Center for Veterinary Medicine [CVM] ............................... 85,403 92,247 84,699 

Field Activities ................................................................... 53,775 55,651 53,322 

Medical and radiological devices ............................................... 322,370 329,102 322,422 

Center for Devices and Radiological Health [CDRH] ........ 240,486 247,726 241,225 

Field Activities ................................................................... 81,884 81,376 81,197 

National Center for Toxicological Research [NCTR] ................... 60,543 60,294 60,039 

Other Activities .................................................................................... 149,900 197,686 153,704 

Rent and related activities .................................................................. 99,554 150,350 105,984 

Rental payments to GSA ...................................................................... 150,762 167,826 160,506 

Total, FDA salaries and expenses, new budget authority ..... 2,447,021 2,730,910 2,497,021 

The Committee recommendation includes the following increases: 

$40,000,000 to begin implementation of the Food Safety Modernization Act, $12,962,000 for mandatory rental payments, and 

$19,038,000 for advancing medical countermeasures. The Committee also accepts FDA’s proposed reduction of $22,000,000 due to 

administrative and contract savings. 

The Committee recommendation includes an increase of 

$40,000,000 for FDA to begin implementation of the Food Safety 

Modernization Act [FSMA]. This legislation will establish a prevention-focused food safety system and leverage the work of FDA’s 

State and local food safety partners. Due to budgetary constraints, 

the Committee was unable to provide the full funding request for 

implementation of FSMA, and directs FDA to apply these increased 

funds to the highest priority food safety activities. These activities 

could include publication of new preventative controls for food processing facilities, additional import oversight and inspections of both 

foreign and domestic facilities, and improved scientific capabilities. 

The Committee directs FDA to provide a report within 30 days of 

enactment of this act on how it intends to allocate these funds. 

The Committee also provides an increase of $19,038,000 for activities relating to advancing medical countermeasures. This initiative was begun in August 2010 in order to increase the U.S. readiness against public health threats, and will allow FDA to work 

with other Government agencies to facilitate the development of 

safe and effective medical countermeasures to protect the Nation 

from chemical, biological, radiological, nuclear, and emerging infectious disease threats. Again, due to budgetary constraints, the 

Committee was unable to provide the full funding request for these 

activities, and directs FDA to provide funding to the highest priority activities relating to these initiatives. The Committee directs 

FDA to provide a report within 30 days of enactment of this act 

on how it intends to allocate these funds. 
80 

The Committee expects FDA to continue all projects, activities, 

laboratories, and programs as included in the fiscal year 2012 

budget request, unless otherwise specified. 

Adjuvanted Influenza Vaccines.—The Committee recognizes the 

importance of FDA exercising its authority under the Accelerated 

Approval of Biological Products regulation to approve licenses for 

adjuvanted seasonal influenza vaccines, which are currently being 

used in seasonal influenza campaigns in Europe. The Committee 

believes that FDA has sufficient authority under existing regulations to approve adjuvanted vaccines. The Committee is also aware 

that adjuvanted seasonal influenza clinical studies are needed to 

further encourage the development of new treatments for emerging 

public health requirements and for pandemic preparedness. The 

Committee urges the FDA to work collaboratively with industry 

and other Federal agencies to facilitate the design and conduct the 

necessary studies. 

Agency Collaboration.—The Committee is aware of the MOU between FDA and the Centers for Medicare and Medicaid Services 

[CMS] to promote collaboration, and strongly supports this effort. 

The Committee encourages FDA to share information with CMS 

describing the clinical trials used to support a new drug indication, 

and to specifically note whether the new drug was compared to a 

placebo or to an active control. The Committee recommends that 

FDA make CMS aware of whether a newly approved drug was approved based on an application supported by clinical trials using a 

non-inferiority or a superiority design. 

Antimicrobial Resistance.—The Committee commends the FDA 

for publishing Draft Guidance for Industry No. 209 and for conducting a comprehensive review of the scientific evidence related to 

antimicrobial use in food animal production and antibiotic-resistant 

infections in humans. However, over a year has passed since this 

draft guidance was released and the FDA has not yet identified a 

timeframe for finalizing and implementing this guidance or for taking other proposed steps to address antimicrobial resistance. Therefore, the Committee directs the FDA to set a timeline for when 

Guidance No. 209 and any implementing guidance will be finalized, 

when the FDA intends to release any changes to the Veterinary 

Feed Directive, and when it plans to issue an order regarding extra 

label uses of Cephalosporin drugs in food-producing animals. The 

Committee also recommends that FDA examine medically important antimicrobial drugs currently approved for use in food-producing animals and take steps to assure that such products are 

aligned with current safety standards. 

Artificial Pancreas.—To foster the development of artificial pancreas technology, the Committee expects FDA to provide researchers and industry stakeholders with clear, prompt, and reasonable 

guidance for approval of safe and effective artificial pancreas systems for patients with type I diabetes. The FDA has taken an important first step with the issuance of guidance for an early version 

of an artificial pancreas system, known as a Low Glucose Suspend 

system. The Committee strongly encourages FDA to continue to 

make the advancement of more autonomous artificial pancreas 

technologies a priority by collaboration with stakeholders and investment of time and resources. Artificial pancreas technologies 
81 

could be an important tool for patients with type 1 diabetes to 

achieve better glycemic control, increasing their quality of life and 

overall health. 

Breast Imaging Quality Standards.—The Committee is aware 

that FDA is currently considering the implementation of several 

recommendations included in the Institute of Medicine Report entitled ‘‘Breast Imaging Quality Standards’’, which was released on 

May 23, 2005. The Committee directs FDA to provide a report to 

the House and Senate Committees on Appropriations within 120 

days of enactment of this act specifying which specific recommendations will be implemented, the timeline for doing so, and 

specific details on how the recommendations will be implemented. 

Budget Justification.—The Committee directs FDA to submit the 

fiscal year 2013 budget request in a format that follows the same 

account structure as the fiscal year 2012 budget request unless otherwise approved by the Committee. 

Dietary Supplements.—The Committee is aware that U.S. consumers widely use plant-derived dietary supplements, and that 

FDA inspects manufacturers and distributors that are responsible 

for ensuring that such products are not adulterated or contaminated, and do not cause harm to the consumer. The Committee believes that methods and standards are needed to verify source 

plants and ingredients and to detect toxic contaminants. The Committee encourages FDA to develop guidance for industry on such 

methods and standards, which would enhance FDA’s ability to inspect and assess industry practices for manufacturing botanical dietary supplements. 

Food Safety Information Sharing.—The Committee urges the 

Secretary of Agriculture and the Secretary of Health and Human 

Services to enter into a memorandum of understanding between 

the relevant agencies within the Department of Health and Human 

Services, including the Food and Drug Administration and the Centers for Disease Control and Prevention, and the relevant agencies 

within the Department of Agriculture, including the Food Safety 

and Inspection Service, the Agricultural Research Service, and the 

Animal and Plant Health Inspection Service, to ensure the timely 

and efficient sharing of all information collected by such agencies 

related to foodborne pathogens, contaminants and illnesses. 

Generic Drugs.—The Committee recommendation includes no 

less than $97,218,000 for the generic drugs program at FDA, of 

which no less than $52,947,000 is for the Office of Generic Drugs. 

Medical Device Safety.—The Committee strongly encourages the 

Center for Devices and Radiological Health [CDRH] to complete its 

implementation of the Safe Medical Devices Act of 1990. The Government Accountability Office [GAO] identified the unfinished implementation of this act as one of the main causes of including 

CDRH on GAO’s ‘‘high-risk’’ list of Government agencies. The Committee directs CDRH to report on its progress of the implementation of the Safe Medical Devices Act within 120 days of the enactment of this act. 

The Committee also encourages CDRH to implement the GAO 

recommendation for CDRH to strengthen its post-market surveillance of medical devices. The Committee supports CDRH’s use of 

section 522 authority to study high-risk medical devices that were 
82 

cleared through the 510(k) process, such as metal-on-metal hip implants. The Committee commends CDRH on meeting with medical 

experts and leaders of medical device registries that currently exist 

and recommends that CDRH continue to work with stakeholders to 

develop a more robust post-market surveillance program for medical devices. 

Nanotechnology.—The Committee recognizes that FDA is developing the facilities and expertise to study nanotechnology within 

FDA’s Jefferson Laboratory Campus, including the National Center 

for Toxicological Research, and its consolidated headquarters at 

White Oak, Maryland. The Committee supports FDA in its mission 

to expand upon current research in nanotechnology and supports 

the development of a Nanotechnology Core Center to meet this mission. The Committee believes a Nanotechnology Core Center should 

be designed to support nanotechnology toxicity studies, develop analytical tools to quantify nanomaterials in complex matrices, and 

develop procedures for characterizing nanomaterials in FDA-regulated products. 

Obesity Therapeutics.—The Committee is concerned with the absence of novel medicines to treat obesity, the second leading cause 

of preventable deaths in the United States and a disease linked to 

cancer, high blood pressure, heart disease, diabetes, and stroke. 

With only diet, exercise, and gastric surgery as options, the lack of 

obesity medications is a significant unmet medical need. The Committee directs FDA to report by March 30, 2012 on the steps it will 

take to support the development of new treatments for obesity, including the use of its Risk Evaluation and Mitigation Strategy and 

other post-marketing authorities, to mitigate risk and ensure rigorous post-market scrutiny while increasing access to novel medications. 

Office of Cosmetics and Colors [OCAC].—The Committee provides not less than $11,700,000 for cosmetics activities, including not less 

than $7,200,000 for the Office of Colors and Cosmetics. Funding 

provided for OCAC is for direct support of the operation, staffing, 

compliance, research and international activities performed by this 

office. 

Packaged Ice.—The Committee believes it is important that FDA 

provide guidance to manufacturers of packaged ice to ensure a safe 

product is sold to consumers. The Committee understands that a 

Citizens Petition was recently submitted to FDA regarding packaged ice, and encourages FDA to respond to this petition promptly. 

Seafood Advisory.—The Committee is concerned about differing 

messages from Federal agencies to pregnant women regarding the 

nutritional value of seafood consumption during pregnancy. The 

Committee directs FDA to initiate formal reconsideration of the 

2004 advisory in consideration of the 2010 Dietary Guidelines. FDA 

shall report to the Committee within 120 days of enactment of this 

act on progress made and a timeline for final action on a new FDA 

advisory. 

Seafood Economic Integrity.—The Committee recognizes the importance of seafood to a healthy diet, but is concerned that FDA 

does not focus sufficient attention on economic integrity issues, particularly with respect to mislabeling of species, weights, country of 

origin, and treatment. The Committee encourages FDA to work 
83 

with States and the Department of Commerce to more aggressively 

combat fraud in parts of the seafood industry. 

Seafood Safety.—The Committee is aware that FDA currently inspects less than 2 percent of imported seafood. Further, many of 

these imports may contain substances that are banned in the 

United States. Therefore, the Committee directs FDA to develop a 

comprehensive program for imported seafood, in accordance with 

the Food Safety Modernization Act, to ensure the safety of seafood. 

Trade Facilitation and Interagency Cooperation.—The current 

fiscal environment requires that efforts to enhance safety must be 

directed toward the most serious compliance infractions. The Committee strongly encourages FDA to establish a pilot project to expedite imports for highly compliant importers. The goal would be new 

trade facilitation methods for low-risk, shippers and cargo that 

could be incorporated into the import inspection process, thereby 

enabling FDA to better target Federal resources. FDA is strongly 

encouraged to provide clear guidelines for those shippers who are 

low-risk and to collaborate with industry, Customs and Border Protection and other relevant agencies on how such a program could 

be implemented. FDA is directed to provide a report to the Committee on its efforts in this regard within 120 days of enactment 

of this act. 

BUILDINGS AND FACILITIES

Appropriations, 2011 ............................................................................. $9,980,000 

Budget estimate, 2012 ........................................................................... 13,055,000 

House allowance .................................................................................... 8,719,000 

Committee recommendation ................................................................. 8,982,000 

FDA maintains offices and staff in 49 States and in the District 

of Columbia and Puerto Rico, including field laboratories and specialized facilities, as well as the National Center for Toxicological 

Research complex. Repairs, modifications, improvements, and construction to FDA headquarters and field facilities must be made to 

preserve the properties, ensure employee safety, meet changing 

program requirements, and permit the agency to keep its laboratory methods up to date. 

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $8,982,000 for 

FDA buildings and facilities. This funding shall be used to upgrade 

FDA facilities and laboratories which are currently below public 

safety standards and incapable of performing agency requirements. 

INDEPENDENT AGENCY 

FARM CREDIT ADMINISTRATION

LIMITATION ON ADMINISTRATIVE EXPENSES

Limitation, 2011 ..................................................................................... $59,400,000 

Budget estimate, 2012 ........................................................................... 62,000,000 

House allowance .................................................................................... 62,000,000 

Committee recommendation ................................................................. 62,000,000 

The Farm Credit Administration [FCA] is the independent agency in the executive branch of the Government responsible for the 
84 

examination and regulation of the banks, associations, and other 

institutions of the Farm Credit System. 

Activities of the Farm Credit Administration include the planning and execution of examinations of Farm Credit System institutions and the preparation of examination reports. FCA also establishes standards, enforces rules and regulations, and approves certain actions of the institutions. 

The administration and the institutions under its jurisdiction 

now operate under authorities contained in the Farm Credit Act of 

1971, Public Law 92–181, effective December 10, 1971. Public Law 

99–205, effective December 23, 1985, restructured FCA and gave 

the agency regulatory authorities and enforcement powers. 

The act provides for the farmer-owned cooperative system to 

make sound, adequate, and constructive credit available to farmers 

and ranchers and their cooperatives, rural residences, and associations and other entities upon which farming operations are dependent, and to modernize existing farm credit law to meet current and 

future rural credit needs. 

The Agricultural Credit Act of 1987 authorized the formation of 

the Federal Agricultural Mortgage Corporation [FAMC] to operate 

a secondary market for agricultural and rural housing mortgages. 

The Farm Credit Administration, under section 8.11 of the Farm 

Credit Act of 1971, as amended, is assigned the responsibility of 

regulating this entity and assuring its safe and sound operation. 

Expenses of the Farm Credit Administration are paid by assessments collected from the Farm Credit System institutions and by 

assessments to the Federal Agricultural Mortgage Corporation. 

COMMITTEE RECOMMENDATIONS

The Committee recommends a limitation of $62,000,000 on administrative expenses of the Farm Credit Administration. 
(85) 

TITLE VII 

GENERAL PROVISIONS 

The Committee recommends the following provisions: 

Section 701. This section makes funds available for the purchase, 

replacement, and hire of passenger motor vehicles. 

Section 702. This section gives the Secretary of Agriculture authority to transfer unobligated balances to the Working Capital 

Fund. 

Section 703. This section limits the funding provided in the bill 

to 1 year, unless otherwise specified. 

Section 704. This section limits negotiated indirect costs on cooperative agreements between the Department of Agriculture and 

nonprofit organizations to 10 percent. 

Section 705. This section makes appropriations to the Department of Agriculture for the cost of direct guaranteed loans available until expended to disburse obligations for certain Rural Development programs. 

Section 706. This section prohibits the use of funds to establish 

an inspection panel at the Department of Agriculture. 

Section 707. This section prohibits the purchase of new information technology equipment and equipment in excess of $25,000 

without the prior approval of the Chief Information Officer. 

Section 708. This section makes funds for certain conservation 

programs available until expended to disburse certain obligations 

made in the current fiscal year. 

Section 709. This section makes certain former Rural Utilities 

Service borrowers eligible for the Rural Economic Development 

loan and grant program. 

Section 710. This section modifies matching requirements for certain research grants. 

Section 711. This section provides funds for Rural Development 

and the Farm Service Agency information technology expenses. 

Section 712. This section includes language regarding reconstituted infant formula. 

Section 713. This section requires Department of Agriculture 

agencies to provide reimbursement to other Department of Agriculture agencies for employees detailed for longer than 30 days. 

Section 714. This section includes language regarding the Commodity Credit Corporation. 

Section 715. This section includes language regarding humanitarian food assistance. 

Section 716. This section places conditions on the closing or relocation of Rural Development State Offices. 

Section 717. This section includes language regarding the disbursement of obligations under the Rural Electrification Act of 

1936. 
86 

Section 718. This section limits the amount of funding available 

to reimburse the Commodity Credit Corporation for the release of 

commodities under the Bill Emerson Humanitarian Trust. 

Section 719. This section makes funds available for the expenses 

and activities of certain advisory committees, panels, commissions, 

and task forces at the Department of Agriculture. 

Section 720. This section includes language regarding school 

equipment. 

Section 721. This section provides funding for the Geographically 

Disadvantaged Farmers Program as authorized in the Food, Conservation, and Energy Act of 2008. 

Section 722. This section provides funding to carry out a pilot 

program for hardwood trees. 

Section 723. This section prohibits the reprogramming of funds for programs, projects, or activities in excess of $500,000 or 10 percent, whichever is less without the prior notification of the Committee on Appropriations. 

Section 724. This section prohibits the use of funds for user fee 

proposals that fail to provide sufficient budget impact information. 

Section 725. This section includes language regarding the Rural 

Innovation Initiative. 

Section 726. This section prohibits funds to carry out certain sections of Public Law 110–246. 

Section 727. This section includes language for the establishment 

of a fee under the business and industry loan program. 

Section 728. This section prohibits the Department of Agriculture 

and the Department of Health and Human Services from transmitting questions or responses as a result of the appropriations hearing process to non-Department employees. 

Section 729. This section includes language regarding farm bill 

programs. 

Section 730. This section includes language regarding rescission 

of funds. 

Section 731. This section includes language regarding rescission 

of funds. 

Section 732. This section provides for disaster recovery. 

Section 733. This section provides for disaster recovery. 
(87) 

PROGRAM, PROJECT, AND ACTIVITY 

During fiscal year 2012, for purposes of the Balanced Budget and 

Emergency Deficit Control Act of 1985 (Public Law 99–177) or the 

Balanced Budget and Emergency Deficit Control Reaffirmation Act 

of 1987 (Public Law 100–119), the following information provides 

the definition of the term ‘‘program, project, and activity’’ for departments and agencies under the jurisdiction of the Agriculture, 

Rural Development, Food and Drug Administration, and Related 

Agencies Subcommittee. The term ‘‘program, project, and activity’’ 

shall include the most specific level of budget items identified in 

the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2012, and the accompanying Senate Report. 

If a sequestration order is necessary, in implementing the Presidential order, departments and agencies shall apply any percentage 

reduction required for fiscal year 2012 pursuant to the provisions 

of Public Law 99–177 or Public Law 100–119 to all items specified 

in the explanatory notes submitted to the Committees on Appropriations of the House and Senate in support of the fiscal year 2012 

budget estimates, as amended, for such departments and agencies, 

as modified by congressional action, and in addition: 

For the Agricultural Research Service the definition shall include 

specific research locations as identified in the explanatory notes. 

For the Natural Resources Conservation Service the definition 

shall include individual flood prevention projects as identified in 

the explanatory notes and individual operational watershed 

projects as summarized in the notes. 

For the Farm Service Agency the definition shall include individual, regional, State, district, and county offices. 

COMPLIANCE WITH PARAGRAPH 7, RULE XVI OF THE 

STANDING RULES OF THE SENATE 

Paragraph 7 of rule XVI requires that Committee reports accompanying general appropriations bills identify each recommended 

amendment which proposes an item of appropriation which is not 

made to carry out the provisions of an existing law, a treaty stipulation, or an act or resolution previously passed by the Senate during that session. 

The Committee recommends funding for the following programs 

or activities which currently lack authorization for fiscal year 2012: 

Multi-family Housing Revitalization Program 

Broadband Telecommunication Grants 

Rural Energy for America Program 

Horse Protection Act 

WIC Management Information Systems 
88 

COMPLIANCE WITH PARAGRAPH 7(c), RULE XXVI OF THE 

STANDING RULES OF THE SENATE 

Pursuant to paragraph 7(c) of rule XXVI, on September 7, 2011, 

the Committee ordered favorably reported en bloc the fiscal year 

2012 budget allocation a proposed by the Chairman, and a bill 

(H.R. 2112) making appropriations for Agriculture, Rural Development, Food and Drug Administration, and Related Agencies programs for the fiscal year ending September 30, 2012, and for other 

purposes, with an amendment in the nature of a substitute; a bill 

(H.R. 2354) making appropriations for energy and water development and related agencies for the fiscal year ending September 30, 

2012, and for other purposes, with an amendment in the nature of 

a substitute; and a bill (H.R 2017) making appropriations for the 

Department of Homeland Security for the fiscal year ending September 30, 2012, and for other purposes, with an amendment in 

the nature of a substitute; provided, that each bill be subject to further amendment and that each bill be consistent with its spending 

allocations, by a recorded vote of 29–1, a quorum being present. 

The vote was as follows: 

Yeas Nays 

Chairman Inouye Mr. Johnson (WI) 

Mr. Leahy 

Mr. Harkin 

Ms. Mikulski 

Mr. Kohl 

Mrs. Murray 

Mrs. Feinstein 

Mr. Durbin 

Mr. Johnson (SD) 

Ms. Landrieu 

Mr. Reed 

Mr. Lautenberg 

Mr. Nelson 

Mr. Pryor 

Mr. Tester 

Mr. Brown 

Mr. Cochran 

Mr. McConnell 

Mr. Shelby 

Mrs. Hutchison 

Mr. Alexander 

Ms. Collins 

Ms. Murkowski 

Mr. Graham 

Mr. Kirk 

Mr. Coats 

Mr. Blunt 

Mr. Moran 

Mr. Hoeven 
89 

COMPLIANCE WITH PARAGRAPH 12, RULE XXVI OF THE 

STANDING RULES OF THE SENATE 

Paragraph 12 of rule XXVI requires that Committee reports on 

a bill or joint resolution repealing or amending any statute or part 

of any statute include ‘‘(a) the text of the statute or part thereof 

which is proposed to be repealed; and (b) a comparative print of 

that part of the bill or joint resolution making the amendment and 

of the statute or part thereof proposed to be amended, showing by 

stricken-through type and italics, parallel columns, or other appropriate typographical devices the omissions and insertions which 

would be made by the bill or joint resolution if enacted in the form 

recommended by the committee.’’ 

In compliance with this rule, the following changes in existing 

law proposed to be made by the bill are shown as follows: existing 

law to be omitted is enclosed in black brackets; new matter is 

printed in italics; and existing law in which no change is proposed 

is shown in roman. 

TITLE 7—AGRICULTURE 

CHAPTER 36—CROP INSURANCE

SUBCHAPTER I—FEDERAL CROP INSURANCE

§ 1524. Education and risk management assistance 

(a) Education assistance 

* * * * * * * 

(b) Agricultural management assistance 

(1) Authority 

* * * * * * * 

(4) Commodity Credit Corporation 

(A) In general 

* * * * * * * 

(B) Funding 

(i) In general 

* * * * * * * 

(ii) Exception for øfiscal years 2008 through 

2012¿ certain fiscal years 

For each of fiscal years 2008 through ø2012¿ 

2014, the Commodity Credit Corporation shall make 

available to carry out this subsection $15,000,000. 
90 

TITLE 16—CONSERVATION 

CHAPTER 58—ERODIBLE LAND AND WETLAND CONSERVATION

AND RESERVE PROGRAM

SUBCHAPTER IV—AGRICULTURAL RESOURCES CONSERVATION

PROGRAM

PART II—CONSERVATION SECURITY AND FARMLAND PROTECTION

SUBPART B—CONSERVATION STEWARDSHIP PROGRAM

§ 3838e. Conservation stewardship program 

(a) Establishment and purpose 

During each of fiscal years 2009 through ø2012¿ 2014, the Secretary shall carry out a conservation stewardship program to encourage producers to address resource concerns in a comprehensive 

manner— 

* * * * * * * 

PART IV—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

§ 3839aa–2. Establishment and administration 

(a) Establishment 

During each of the 2002 through ø2012¿ 2014 fiscal years, the 

Secretary shall provide payments to producers that enter into contracts with the Secretary under the program. 

* * * * * * * 

SUBCHAPTER V—FUNDING AND ADMINISTRATION

§ 3841. Commodity Credit Corporation 

(a) In general 

For each of fiscal years 2002 through ø2012¿ 2012 (and fiscal 

year 2014 in the case of the programs specified in paragraphs 

(3)(B), (4), (6), and (7)), the Secretary shall use the funds, facilities, 

and authorities of the Commodity Credit Corporation to carry out 

the following programs under subchapter IV (including the provision of technical assistance): 

(1) The conservation reserve program under subpart B of 

part I, including to the maximum extent practicable— 

* * * * * * * 

(4) The farmland protection program under subpart C of 

part II, using, to the maximum extent practicable— 

(A) * * * 

* * * * * * * 

(E) $200,000,000 in øfiscal year 2012¿ each of fiscal 

years 2012 through 2014. 

* * * * * * * 
91 

(6) The environmental quality incentives program under 

part IV, using, to the maximum extent practicable— 

(A) * * * 

* * * * * * * 

(E) $1,750,000,000 in øfiscal year 2012¿ each of fiscal 

years 2012 through 2014. 

(7) The wildlife habitat incentives program under section 

3839bb–1 of this title, using, to the maximum extent practicable— 

(A) * * * 

* * * * * * * 

(D) $85,000,000 in each of fiscal years 2005 through 

ø2012¿ 2014. 

FOOD, CONSERVATION, AND ENERGY ACT, 2008, PUBLIC 

LAW 110–234 

TITLE XIV—MISCELLANEOUS 

CHAPTER 2—OTHER PROVISIONS 

Subtitle C—Other Miscellaneous Provisions 

SEC. 14222. DOMESTIC FOOD ASSISTANCE PROGRAMS. 

(a) DEFINITION OF SECTION 32.— * * * 

(b) TRANSFER TO FOOD AND NUTRITION SERVICE.— 

(1) IN GENERAL.—Amounts made available for a fiscal year 

to carry out section 32 in excess of the maximum amount calculated under paragraph (2) shall be transferred to the Secretary, acting through the Administrator of the Food and Nutrition Service, to be used to carry out the Richard B. Russell 

National School Lunch Act (42 U.S.C. 1751 et seq.) except section 21, and the Child Nutrition Act of 1966 (42 U.S.C. 1771 

et seq.), except sections 17 and 21. 
92 

BUDGETARY IMPACT OF BILL 

PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 

308(a), PUBLIC LAW 93–344, AS AMENDED 

[In millions of dollars] 

Budget authority Outlays 

Committee 

allocation 

Amount 

in bill 

Committee 

allocation 

Amount 

in bill 

Comparison of amounts in the bill with Committee allocations 

to its subcommittees of amounts in the budget resolution 

for 2012: Subcommittee on Agriculture, Rural Development, 

Food and Drug Administration, and Related Agencies: 

Mandatory ............................................................................ 116,916 116,916 104,815 1 104,805 

Discretionary ........................................................................ 19,780 20,046 22,931 1 23,038 

Security ....................................................................... 1,750 1,750 NA NA 

Nonsecurity ................................................................. 18,030 18,296 NA NA 

Projections of outlays associated with the recommendation: 

2012 ..................................................................................... .................... .................... .................... 2 115,138 

2013 ..................................................................................... .................... .................... .................... 2,890 

2014 ..................................................................................... .................... .................... .................... 982 

2015 ..................................................................................... .................... .................... .................... 280 

2016 and future years ........................................................ .................... .................... .................... 90 

Financial assistance to State and local governments for 

2012 ......................................................................................... NA 7,893 NA 6,035 

1 Includes outlays from prior-year budget authority. 

2 Excludes outlays from prior-year budget authority. 

NA: Not applicable. 

Consistent with the funding recommended in the bill for disaster funding and in accordance with section 251(b)(2)(D) of the BBEDCA and section 106 of the Deficit Control Act of 2011, the Committee anticipates that the Budget Committee will file a revised section 302(a) allocation for the Committee on Appropriations reflecting an upward adjustment of $266,000,000 in budget authority plus associated outlays. 
93 

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2011 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL 

FOR FISCAL YEAR 2012 

[In thousands of dollars] 

Item 2011 appropriation Budget estimate House allowance Committee recommendation Senate Committee recommendation compared with (∂ or ¥) 2010 appropriation Budget estimate House allowance 

TITLE I—AGRICULTURAL PROGRAMS 

Production, Processing, and Marketing 

Office of the Secretary ............................................................................. 5,051 5,883 4,260 4,798 ¥253 ¥1,085 ∂538 Office of Tribal Relations ......................................................................... 498 1,015 420 473 ¥25 ¥542 ∂53 Healthy Food Financing Initiative ............................................................ ............................ 35,000 ............................ ............................ ............................ ¥35,000 ............................Executive Operations: 

Office of Chief Economist ............................................................... 12,008 15,196 10,623 11,408 ¥600 ¥3,788 ∂785 National Appeals Division ............................................................... 14,225 15,254 11,997 13,514 ¥711 ¥1,740 ∂1,517 Office of Budget and Program Analysis ......................................... 9,417 9,436 7,942 8,946 ¥471 ¥490 ∂1,004 Office of Homeland Security ........................................................... 1,496 4,272 1,262 1,421 ¥75 ¥2,851 ∂159 Office of Advocacy and Outreach ................................................... 1,422 7,000 1,120 1,351 ¥71 ¥5,649 ∂231 Office of the Chief Information Officer .......................................... 39,920 63,579 33,735 36,031 ¥3,889 ¥27,548 ∂2,296 Office of the Chief Financial Officer .............................................. 6,247 6,566 5,269 5,935 ¥312 ¥631 ∂666 

Subtotal, Executive Operations ................................................... 84,735 121,303 71,948 78,606 ¥6,129 ¥42,697 ∂6,658 

Office of the Assistant Secretary for Civil Rights ................................... 893 895 754 848 ¥45 ¥47 ∂94 Office of Civil Rights ............................................................................... 22,692 24,922 19,138 21,558 ¥1,134 ¥3,364 ∂2,420 Office of the Assistant Secretary for Administration .............................. 804 820 678 764 ¥40 ¥56 ∂86 Agriculture buildings and facilities and rental payments ...................... (246,476 ) (255,191 ) (199,825 ) (230,416 ) (¥16,060 ) (¥24,775 ) (∂30,591 ) 

Payments to GSA ............................................................................. 178,113 164,470 145,396 164,470 ¥13,643 ............................ ∂19,074 Department of Homeland Security .................................................. 13,473 13,800 11,452 13,800 ∂327 ............................ ∂2,348 Building operations and maintenance ........................................... 54,890 76,921 42,977 52,146 ¥2,744 ¥24,775 ∂9,169 

Hazardous materials management .......................................................... 3,992 5,125 3,367 3,792 ¥200 ¥1,333 ∂425 Departmental Administration ................................................................... 29,647 35,787 16,381 28,165 ¥1,482 ¥7,622 ∂11,784 Office of the Assistant Secretary for Congressional Relations ............... 3,869 4,041 3,262 3,676 ¥193 ¥365 ∂414 Office of Communications ....................................................................... 9,480 9,722 7,995 8,105 ¥1,375 ¥1,617 ∂110 Office of Inspector General ...................................................................... 88,548 90,755 79,376 84,121 ¥4,427 ¥6,634 ∂4,745 Office of the General Counsel ................................................................. 41,416 46,058 34,929 39,345 ¥2,071 ¥6,713 ∂4,416 

Total, Departmental Administration ........................................... 538,101 636,517 442,333 504,667 ¥33,434 ¥131,850 ∂62,334 
94 

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2011 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL 

FOR FISCAL YEAR 2012—Continued 

[In thousands of dollars] 

Item 2011 appropriation Budget estimate House allowance Committee recommendation Senate Committee recommendation compared with (∂ or ¥) 2010 appropriation Budget estimate House allowance 

Office of the Under Secretary for Research, Education, and Economics ........................................................................................................ 893 911 754 848 ¥45 ¥63 ∂94 Economic Research Service ..................................................................... 81,814 85,971 69,454 77,723 ¥4,091 ¥8,248 ∂8,269 National Agricultural Statistics Service ................................................... 156,447 165,421 148,340 152,616 ¥3,831 ¥12,805 ∂4,276 

Census of Agriculture ..................................................................... (33,139 ) (41,639 ) (40,000 ) (41,639 ) (∂8,500 ) ............................ (∂1,639 ) 

Agricultural Research Service: 

Salaries and expenses .................................................................... 1,133,230 1,137,690 987,581 1,094,647 ¥38,583 ¥43,043 ∂107,066 

National Institute of Food and Agriculture: 

Research and education activities ................................................. 698,740 708,107 591,748 709,825 ∂11,085 ∂1,718 ∂118,077 Native American Institutions Endowment Fund ............................. (11,880 ) (11,880 ) (11,880 ) (11,880 ) ............................ ............................ ............................Extension activities ......................................................................... 479,132 466,788 407,993 478,179 ¥953 ∂11,391 ∂70,186 Integrated activities ........................................................................ 36,926 29,874 12,303 25,948 ¥10,978 ¥3,926 ∂13,645 Hispanic-Serving Agricultural Colleges and Universities Endowment Fund .................................................................................. ............................ (10,000 ) ............................ (10,000 ) (∂10,000 ) ............................ (∂10,000 ) 

Total, National Institute of Food and Agriculture ................. 1,214,798 1,204,769 1,012,044 1,213,952 ¥846 ∂9,183 ∂201,908 

Office of the Under Secretary for Marketing and Regulatory Programs ................................................................................................... 893 911 754 848 ¥45 ¥63 ∂94 Animal and Plant Health Inspection Service: 

Salaries and expenses .................................................................... 863,270 832,706 783,838 820,110 ¥43,160 ¥12,596 ∂36,272 

Assistance, goods, or services (user fees) NA ...................... ............................ (141,000 ) ............................ ............................ ............................ (¥141,000 ) ............................

Buildings and facilities .................................................................. 3,529 4,712 3,175 3,176 ¥353 ¥1,536 ∂1 

Total, Animal and Plant Health Inspection Service ................... 866,799 837,418 787,013 823,286 ¥43,513 ¥14,132 ∂36,273 

Agricultural Marketing Service: 

Marketing Services .......................................................................... 86,538 94,755 77,193 82,211 ¥4,327 ¥12,544 ∂5,018 

Standardization activities (user fees) NA .............................. (65,000 ) (66,000 ) (66,000 ) (65,000 ) ............................ (¥1,000 ) (¥1,000 ) 

(Limitation on administrative expenses, from fees collected) ....... (60,947 ) (62,101 ) (61,000 ) (62,101 ) (∂1,154 ) ............................ (∂1,101 ) 
95 

Funds for strengthening markets, income, and supply (Section 

32): 

Permanent, Section 32 ........................................................... 1,065,000 1,080,000 1,080,000 1,080,000 ∂15,000 ............................ ............................

Marketing agreements and orders (transfer from section 32) ..................................................................... (20,056 ) (20,056 ) (20,056 ) (20,056 ) ............................ ............................ ............................

Payments to States and Possessions ............................................. 1,331 2,634 1,321 1,198 ¥133 ¥1,436 ¥123 

Total, Agricultural Marketing Service program .......................... 1,213,816 1,239,490 1,219,514 1,225,510 ∂11,694 ¥13,980 ∂5,996 

Grain Inspection, Packers and Stockyards Administration: 

Salaries and expenses .................................................................... 40,261 44,192 36,711 38,248 ¥2,013 ¥5,944 ∂1,537 Limitation on inspection and weighing services ............................ (47,500 ) (50,000 ) (47,500 ) (50,000 ) (∂2,500 ) ............................ (∂2,500 ) 

Office of the Under Secretary for Food Safety ........................................ 811 828 684 770 ¥41 ¥58 ∂86 Food Safety and Inspection Service ......................................................... 1,006,503 1,011,393 964,446 1,006,503 ............................ ¥4,890 ∂42,057 

Lab accreditation fees .................................................................... (1,000 ) (1,000 ) (1,000 ) (1,000 ) ............................ ............................ ............................

Total, Production, Processing, and Marketing ........................... 6,193,419 6,303,410 5,608,628 6,077,517 ¥115,902 ¥225,893 ∂468,889 

Farm Assistance Programs 

Office of the Under Secretary for Farm and Foreign Agricultural Services ...................................................................................................... 893 911 754 848 ¥45 ¥63 ∂94 Farm Service Agency: 

Salaries and expenses .................................................................... 1,208,290 1,357,065 1,167,323 1,181,781 ¥26,509 ¥175,284 ∂14,458 Equal Credit Opportunity claims (leg. proposal) ............................ ............................ 40,000 ............................ ............................ ............................ ¥40,000 ............................(Transfer from Food for Peace (Public Law 480)) .......................... (2,806 ) (2,812 ) (2,366 ) (2,666 ) (¥140 ) (¥146 ) (∂300 ) (Transfer from export loans) ........................................................... (354 ) (355 ) (352 ) (336 ) (¥18 ) (¥19 ) (¥16 ) (Transfer from ACIF) ....................................................................... (304,977 ) (313,173 ) (258,696 ) (289,728 ) (¥15,249 ) (¥23,445 ) (∂31,032 ) 

Subtotal, transfers from program accounts .............................. (308,137 ) (316,340 ) (261,414 ) (292,730 ) (¥15,407 ) (¥23,610 ) (∂31,316 ) Total, Salaries and expenses ..................................................... (1,516,427 ) (1,713,405 ) (1,428,737 ) (1,474,511 ) (¥41,916 ) (¥238,894 ) (∂45,774 ) 

State mediation grants ................................................................... 4,177 4,369 3,522 3,759 ¥418 ¥610 ∂237 Grassroot source water protection program ................................... 4,241 ............................ 3,577 3,817 ¥424 ∂3,817 ∂240 Dairy indemnity program ................................................................ 876 100 100 100 ¥776 ............................ ............................

Subtotal, Farm Service Agency ................................................... 1,217,584 1,401,534 1,174,522 1,189,457 ¥28,127 ¥212,077 ∂14,935 
96 

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2011 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL 

FOR FISCAL YEAR 2012—Continued 

[In thousands of dollars] 

Item 2011 appropriation Budget estimate House allowance Committee recommendation Senate Committee recommendation compared with (∂ or ¥) 2010 appropriation Budget estimate House allowance 

Agricultural Credit Insurance Fund (ACIF) Program Account: 

Loan authorizations: 

Farm ownership loans: 

Direct .................................................................... (474,050 ) (475,000 ) (471,292 ) (475,000 ) (∂950 ) ............................ (∂3,708 ) Guaranteed ........................................................... (1,497,000 ) (1,500,000 ) (1,500,000 ) (1,500,000 ) (∂3,000 ) ............................ ............................

Subtotal ........................................................... (1,971,050 ) (1,975,000 ) (1,971,292 ) (1,975,000 ) (∂3,950 ) ............................ (∂3,708 ) 

Farm operating loans: 

Direct .................................................................... (947,607 ) (1,050,090 ) (1,041,901 ) (1,019,982 ) (∂72,375 ) (¥30,108 ) (¥21,919 ) Unsubsidized guaranteed ..................................... (1,496,996 ) (1,500,000 ) (1,488,276 ) (1,500,000 ) (∂3,004 ) ............................ (∂11,724 ) Subsidized guaranteed ......................................... (122,097 ) ............................ ............................ ............................ (¥122,097 ) ............................ ............................

Subtotal ........................................................... (2,566,700 ) (2,550,090 ) (2,530,177 ) (2,519,982 ) (¥46,718 ) (¥30,108 ) (¥10,195 ) 

Indian tribe land acquisition loans .............................. (3,940 ) (2,000 ) (2,000 ) (2,000 ) (¥1,940 ) ............................ ............................Conservation loans: 

Guaranteed ........................................................... ............................ (150,000 ) (150,000 ) (150,000 ) (∂150,000 ) ............................ ............................

Indian Highly Fractionated Land Loans ........................ ............................ (10,000 ) (9,896 ) (10,000 ) (∂10,000 ) ............................ (∂104 ) Boll weevil eradication loans ........................................ (100,000 ) (60,000 ) (100,000 ) (100,000 ) ............................ (∂40,000 ) ............................

Total, Loan authorizations ........................................ (4,641,690 ) (4,747,090 ) (4,763,365 ) (4,756,982 ) (∂115,292 ) (∂9,892 ) (¥6,383 ) 

Loan subsidies: 

Farm ownership loans: 

Direct .................................................................... 32,804 22,800 22,622 22,800 ¥10,004 ............................ ∂178 Guaranteed ........................................................... 5,689 ............................ ............................ ............................ ¥5,689 ............................ ............................

Subtotal ........................................................... 38,493 22,800 22,622 22,800 ¥15,693 ............................ ∂178 

Farm operating loans: 

Direct .................................................................... 57,425 59,120 58,659 57,425 ............................ ¥1,695 ¥1,234 Unsubsidized guaranteed ..................................... 34,880 26,100 25,896 26,100 ¥8,780 ............................ ∂204 
97 

Subsidized guaranteed ......................................... 16,886 ............................ ............................ ............................ ¥16,886 ............................ ............................

Subtotal ........................................................... 109,191 85,220 84,555 83,525 ¥25,666 ¥1,695 ¥1,030 

Indian Highly Fractionated Land Loans ........................ ............................ 193 191 193 ∂193 ............................ ∂2 Individual Development Accounts ................................. ............................ 2,500 ............................ ............................ ............................ ¥2,500 ............................

Total, Loan subsidies ............................................... 147,684 110,713 107,368 106,518 ¥41,166 ¥4,195 ¥850 

ACIF administrative expenses: 

Salaries and expense (transfer to FSA) ........................ 304,977 313,173 258,696 289,728 ¥15,249 ¥23,445 ∂31,032 Administrative expenses ............................................... 7,904 7,920 7,842 7,509 ¥395 ¥411 ¥333 

Total, ACIF expenses ................................................. 312,881 321,093 266,538 297,237 ¥15,644 ¥23,856 ∂30,699 Total, Agricultural Credit Insurance Fund ................ 460,565 431,806 373,906 403,755 ¥56,810 ¥28,051 ∂29,849 

(Loan authorization) ........................................ (4,641,690 ) (4,747,090 ) (4,763,365 ) (4,756,982 ) (∂115,292 ) (∂9,892 ) (¥6,383 ) 

Total, Farm Service Agency ...................................... 1,678,149 1,833,340 1,548,428 1,593,212 ¥84,937 ¥240,128 ∂44,784 

Risk Management Agency, Administrative and operating expenses ....... 78,842 82,325 67,485 74,900 ¥3,942 ¥7,425 ∂7,415 

Total, Farm Assistance Programs .............................................. 1,757,884 1,916,576 1,616,667 1,668,960 ¥88,924 ¥247,616 ∂52,293 

Corporations 

Federal Crop Insurance Corporation: 

Federal crop insurance corporation fund ....................................... 7,613,232 3,142,375 3,142,375 3,142,375 ¥4,470,857 ............................ ............................

Commodity Credit Corporation Fund: 

Reimbursement for net realized losses .......................................... 13,925,575 14,071,000 14,071,000 14,071,000 ∂145,425 ............................ ............................Hazardous waste management (limitation on expenses) .............. (5,000 ) (5,000 ) (5,000 ) (5,000 ) ............................ ............................ ............................

Total, Corporations ..................................................................... 21,538,807 17,213,375 17,213,375 17,213,375 ¥4,325,432 ............................ ............................Total, Title I, Agricultural Programs ........................................... 29,490,110 25,433,361 24,438,670 24,959,852 ¥4,530,258 ¥473,509 ∂521,182 

(By transfer) ...................................................................... (328,193 ) (336,396 ) (281,470 ) (312,786 ) (¥15,407 ) (¥23,610 ) (∂31,316 ) (Loan authorization) .......................................................... (4,641,690 ) (4,747,090 ) (4,763,365 ) (4,756,982 ) (∂115,292 ) (∂9,892 ) (¥6,383 ) (Limitation on administrative expenses) ........................... (113,447 ) (117,101 ) (113,500 ) (117,101 ) (∂3,654 ) ............................ (∂3,601 ) 
98 

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2011 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL 

FOR FISCAL YEAR 2012—Continued 

[In thousands of dollars] 

Item 2011 appropriation Budget estimate House allowance Committee recommendation Senate Committee recommendation compared with (∂ or ¥) 2010 appropriation Budget estimate House allowance 

TITLE II—CONSERVATION PROGRAMS 

Office of the Under Secretary for Natural Resources and Environment ..................................................................................................... 893 911 754 848 ¥45 ¥63 ∂94 Natural Resources Conservation Service: 

Conservation operations .................................................................. 870,503 898,647 764,943 828,159 ¥42,344 ¥70,488 ∂63,216 Watershed rehabilitation program .................................................. 17,964 ............................ 14,883 ............................ ¥17,964 ............................ ¥14,883 

Total, Natural Resources Conservation Service ......................... 888,467 898,647 779,826 828,159 ¥60,308 ¥70,488 ∂48,333 Total, Title II, Conservation Programs ........................................ 889,360 899,558 780,580 829,007 ¥60,353 ¥70,551 ∂48,427 

TITLE III—RURAL DEVELOPMENT 

Office of the Under Secretary for Rural Development ............................. 893 911 754 848 ¥45 ¥63 ∂94 Rural Development: 

Rural development expenses: 

Salaries and expenses ........................................................... 191,603 234,301 159,755 182,023 ¥9,580 ¥52,278 ∂22,268 (Transfer from RHIF) .............................................................. (453,474 ) (411,779 ) (396,880 ) (430,800 ) (¥22,674 ) (∂19,021 ) (∂33,920 ) (Transfer from RDLFP) ........................................................... (4,931 ) (4,941 ) (3,473 ) (4,684 ) (¥247 ) (¥257 ) (∂1,211 ) (Transfer from RETLP) ............................................................ (38,297 ) (39,959 ) (29,766 ) (36,382 ) (¥1,915 ) (¥3,577 ) (∂6,616 ) 

Subtotal, Transfers from program accounts ..................... (496,702 ) (456,679 ) (430,119 ) (471,866 ) (¥24,836 ) (∂15,187 ) (∂41,747 ) Total, Rural development expenses ................................... (688,305 ) (690,980 ) (589,874 ) (653,889 ) (¥34,416 ) (¥37,091 ) (∂64,015 ) 

Rural Housing Service: 

Rural Housing Insurance Fund Program Account: 

Loan authorizations: 

Single family direct (Sec. 502) ..................................... (1,119,163 ) (211,416 ) (839,070 ) (900,000 ) (¥219,163 ) (∂688,584 ) (∂60,930 ) 

Unsubsidized guaranteed ..................................... (24,000,000 ) (24,000,000 ) (24,000,000 ) (24,000,000 ) ............................ ............................ ............................
99 

Subtotal, Single family .................................... (25,119,163 ) (24,211,416 ) (24,839,070 ) (24,900,000 ) (¥219,163 ) (∂688,584 ) (∂60,930 ) 

Housing repair (Sec. 504) ............................................. (23,313 ) ............................ ............................ (10,000 ) (¥13,313 ) (∂10,000 ) (∂10,000 ) Rental housing (Sec. 515) ............................................ (69,372 ) (95,236 ) (58,159 ) (64,478 ) (¥4,894 ) (¥30,758 ) (∂6,319 ) Site loans (Sec. 524) .................................................... (5,041 ) ............................ ............................ ............................ (¥5,041 ) ............................ ............................Multi-family housing guarantees (Sec. 538) ................ (30,898 ) ............................ ............................ (130,000 ) (∂99,102 ) (∂130,000 ) (∂130,000 ) Multi-family housing credit sales ................................. (1,446 ) ............................ ............................ ............................ (¥1,446 ) ............................ ............................Single family housing credit sales ............................... (10,000 ) ............................ ............................ (10,000 ) ............................ (∂10,000 ) (∂10,000 ) Self-help housing land develop. (Sec. 523) ................. (4,956 ) ............................ ............................ (5,000 ) (∂44 ) (∂5,000 ) (∂5,000 ) Farm Labor Housing (Sec. 514) .................................... (25,673 ) (27,288 ) (18,159 ) (23,426 ) (¥2,247 ) (¥3,862 ) (∂5,267 ) 

Total, Loan authorizations ........................................ (25,289,862 ) (24,333,940 ) (24,915,388 ) (25,142,904 ) (¥146,958 ) (∂808,964 ) (∂227,516 ) 

Loan subsidies: 

Single family direct (Sec. 502) ..................................... 70,060 10,000 39,688 42,570 ¥27,490 ∂32,570 ∂2,882 Housing repair (Sec. 504) ............................................. 4,413 ............................ ............................ 1,421 ¥2,992 ∂1,421 ∂1,421 Rental housing (Sec. 515) ............................................ 23,399 32,495 19,844 22,000 ¥1,399 ¥10,495 ∂2,156 Multi-family housing guarantees (Sec. 538) ................ 2,994 ............................ ............................ ............................ ¥2,994 ............................ ............................Site development loans (Sec. 524) ............................... 293 ............................ ............................ ............................ ¥293 ............................ ............................Multi-family housing credit sales ................................. 555 ............................ ............................ ............................ ¥555 ............................ ............................Farm labor housing (Sec. 514) ..................................... 9,853 9,319 6,201 8,000 ¥1,853 ¥1,319 ∂1,799 Self-help land dev. housing loans (Sec. 523) ............. 287 ............................ ............................ ............................ ¥287 ............................ ............................

Total, Loan subsidies ............................................... 111,854 51,814 65,733 73,991 ¥37,863 ∂22,177 ∂8,258 

Farm labor housing grants .................................................... 9,854 9,873 6,201 8,000 ¥1,854 ¥1,873 ∂1,799 RHIF administrative expenses (transfer to RD) ..................... 453,474 411,779 396,880 430,800 ¥22,674 ∂19,021 ∂33,920 

Total, Rural Housing Insurance Fund program ................. 575,182 473,466 468,814 512,791 ¥62,391 ∂39,325 ∂43,977 

(Loan authorization) ................................................. (25,289,862 ) (24,333,940 ) (24,915,388 ) (25,142,904 ) (¥146,958 ) (∂808,964 ) (∂227,516 ) 

Rental assistance program: 

Rental assistance (Sec. 521) ................................................ 948,704 900,653 879,089 900,653 ¥48,051 ............................ ∂21,564 New construction (Sec. 515) .................................................. 2,026 3,000 1,488 2,000 ¥26 ¥1,000 ∂512 New construction (Farm Labor Housing) ............................... 2,994 3,000 2,481 2,000 ¥994 ¥1,000 ¥481 

Total, Rental assistance program ..................................... 953,724 906,653 883,058 904,653 ¥49,071 ¥2,000 ∂21,595 

Rural housing voucher program ..................................................... 13,972 16,000 10,914 11,000 ¥2,972 ¥5,000 ∂86 Multi-family housing revitalization program .................................. 14,970 ............................ ............................ 2,000 ¥12,970 ∂2,000 ∂2,000 Multifamily housing preservation revolving loans .......................... 998 ............................ ............................ ............................ ¥998 ............................ ............................
100 

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2011 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL 

FOR FISCAL YEAR 2012—Continued 

[In thousands of dollars] 

Item 2011 appropriation Budget estimate House allowance Committee recommendation Senate Committee recommendation compared with (∂ or ¥) 2010 appropriation Budget estimate House allowance 

Total, Multi-family housing revitalization .................................. 29,940 16,000 10,914 13,000 ¥16,940 ¥3,000 ∂2,086 

Mutual and self-help housing grants ............................................ 36,926 ............................ 21,828 30,000 ¥6,926 ∂30,000 ∂8,172 Rural housing assistance grants ................................................... 40,319 11,520 31,750 34,271 ¥6,048 ∂22,751 ∂2,521 Rural community facilities program account: 

Loan authorizations: 

Community facility: 

Direct .................................................................... (289,945 ) (1,000,000 ) (1,000,000 ) (1,300,000 ) (∂1,010,055 ) (∂300,000 ) (∂300,000 ) Guaranteed ........................................................... (167,411 ) ............................ (104,884 ) ............................ (¥167,411 ) ............................ (¥104,884 ) 

Total, Loan authorizations ............................... (457,356 ) (1,000,000 ) (1,104,884 ) (1,300,000 ) (∂842,644 ) (∂300,000 ) (∂195,116 ) 

Loan subsidies and grants: 

Community facility: 

Direct .................................................................... 3,856 ............................ ............................ ............................ ¥3,856 ............................ ............................Guaranteed ........................................................... 6,613 ............................ 4,961 ............................ ¥6,613 ............................ ¥4,961 Grants ................................................................... 14,970 30,000 9,922 12,725 ¥2,245 ¥17,275 ∂2,803 

Rural community development initiative ...................... 4,990 8,400 2,977 4,242 ¥748 ¥4,158 ∂1,265 Economic impact initiative grants ............................... 6,986 ............................ ............................ 5,938 ¥1,048 ∂5,938 ∂5,938 Tribal college grants ..................................................... 3,964 ............................ ............................ 3,369 ¥595 ∂3,369 ∂3,369 

Total, RCFP Loan subsidies and grants .................. 41,379 38,400 17,860 26,274 ¥15,105 ¥12,126 ∂8,414 Subtotal, grants and payments ............................... 118,624 49,920 71,438 90,545 ¥28,079 ∂40,625 ∂19,107 Total, Rural Housing Service .................................... 1,677,470 1,446,039 1,434,224 1,520,989 ¥156,481 ∂74,950 ∂86,765 

(Loan authorization) ........................................ (25,747,218 ) (25,333,940 ) (26,020,272 ) (26,442,904 ) (∂695,686 ) (∂1,108,964 ) (∂422,632 ) 

Rural Business-Cooperative Service: 

Rural Business Program Account: 

(Guaranteed business and industry loans) ........................... (887,332 ) (822,884 ) (622,069 ) (822,886 ) (¥64,446 ) (∂2 ) (∂200,817 ) 
101 

Loan subsidies and grants: 

Guaranteed business and industry subsidy ................. 44,899 52,500 39,688 45,341 ∂442 ¥7,159 ∂5,653 Grants: 

Rural business enterprise .................................... 34,930 29,874 19,844 29,318 ¥5,612 ¥556 ∂9,474 Rural business opportunity .................................. 2,478 7,483 2,232 2,106 ¥372 ¥5,377 ¥126 Delta regional authority ....................................... 2,973 ............................ 2,232 2,900 ¥73 ∂2,900 ∂668 

Total, RBP loan subsidies and grants ............ 85,280 89,857 63,996 79,665 ¥5,615 ¥10,192 ∂15,669 

Rural Development Loan Fund Program Account: 

(Loan authorization) ............................................................... (19,143 ) (36,376 ) (14,643 ) (20,661 ) (∂1,518 ) (¥15,715 ) (∂6,018 ) Loan subsidy .......................................................................... 7,385 12,324 4,961 7,000 ¥385 ¥5,324 ∂2,039 Administrative expenses (transfer to RD) ............................. 4,931 4,941 3,473 4,684 ¥247 ¥257 ∂1,211 

Total, Rural Development Loan Fund ................................ 12,316 17,265 8,434 11,684 ¥632 ¥5,581 ∂3,250 

Rural Economic Development Loans Program Account: 

(Loan authorization) ............................................................... (33,077 ) (33,077 ) (33,077 ) (33,077 ) ............................ ............................ ............................Limit cushion of credit interest spending ............................. (207,000 ) (241,794 ) (155,000 ) (155,000 ) (¥52,000 ) (¥86,794 ) ............................

(Rescission) ................................................................... ¥207,000 ¥241,794 ¥155,000 ¥155,000 ∂52,000 ∂86,794 ............................

Rural cooperative development grants: 

Cooperative development ....................................................... 7,908 8,924 4,961 6,722 ¥1,186 ¥2,202 ∂1,761 Appropriate technology transfer for rural areas .................... ............................ 2,800 1,984 2,250 ∂2,250 ¥550 ∂266 Cooperative research agreement ........................................... ............................ 300 ............................ ............................ ............................ ¥300 ............................Value-added agricultural product market development ........ 18,829 20,367 12,403 16,005 ¥2,824 ¥4,362 ∂3,602 Grants to assist minority producers ...................................... 3,456 3,463 2,977 2,938 ¥518 ¥525 ¥39 

Total, Rural Cooperative development grants. .................. 30,193 35,854 22,325 27,915 ¥2,278 ¥7,939 ∂5,590 

Rural Microenterprise Investment Program Account: 

(Loan authorization) ............................................................... ............................ (22,450 ) ............................ ............................ ............................ (¥22,450 ) ............................Loan subsidy .......................................................................... ............................ 3,500 ............................ ............................ ............................ ¥3,500 ............................Grants ..................................................................................... ............................ 2,200 ............................ ............................ ............................ ¥2,200 ............................

Total, Rural Microenterprise Investment ........................... ............................ 5,700 ............................ ............................ ............................ ¥5,700 ............................

Rural Energy for America Program 

(Loan authorization) ............................................................... (5,382 ) (10,645 ) (4,357 ) (8,591 ) (∂3,209 ) (¥2,054 ) (∂4,234 ) Loan subsidy .......................................................................... 2,495 2,788 1,141 2,250 ¥245 ¥538 ∂1,109 Grants ..................................................................................... 2,495 34,000 1,141 2,250 ¥245 ¥31,750 ∂1,109 
102 

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2011 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL 

FOR FISCAL YEAR 2012—Continued 

[In thousands of dollars] 

Item 2011 appropriation Budget estimate House allowance Committee recommendation Senate Committee recommendation compared with (∂ or ¥) 2010 appropriation Budget estimate House allowance 

Total, Renewable energy program ..................................... 4,990 36,788 2,282 4,500 ¥490 ¥32,288 ∂2,218 Total, Rural Business-Cooperative Service ....................... ¥74,221 ¥56,330 ¥57,963 ¥31,236 ∂42,985 ∂25,094 ∂26,727 

(Loan authorization) ................................................. (944,934 ) (925,432 ) (674,146 ) (885,215 ) (¥59,719 ) (¥40,217 ) (∂211,069 ) 

Rural Utilities Service: 

Rural water and waste disposal program account: 

Loan authorizations: 

Direct ............................................................................. (896,469 ) (770,230 ) (724,990 ) (730,689 ) (¥165,780 ) (¥39,541 ) (∂5,699 ) Guaranteed .................................................................... (75,000 ) (11,950 ) ............................ (75,000 ) ............................ (∂63,050 ) (∂75,000 ) 

Total, Loan authorization .......................................... 971,469 782,180 724,990 805,689 ¥165,780 ∂23,509 ∂80,699 

Loan subsidies and grants: 

Direct subsidy ............................................................... 76,917 73,788 69,454 70,000 ¥6,917 ¥3,788 ∂546 Guaranteed subsidy ...................................................... ............................ 190 ............................ ............................ ............................ ¥190 ............................Water and waste revolving fund .................................. 496 497 493 422 ¥74 ¥75 ¥71 Water well system grants ............................................. 991 993 985 844 ¥147 ¥149 ¥141 Colonias and AK/HI grants ........................................... 69,860 65,000 64,493 67,200 ¥2,660 ∂2,200 ∂2,707 Water and waste technical assistance ........................ 19,461 19,000 18,852 19,000 ¥461 ............................ ∂148 Circuit rider program .................................................... 14,970 14,000 13,891 15,000 ∂30 ∂1,000 ∂1,109 Solid waste management grants .................................. 3,434 4,000 3,373 2,919 ¥515 ¥1,081 ¥454 High energy cost grants ............................................... 11,976 ............................ ............................ 10,000 ¥1,976 ∂10,000 ∂10,000 Water and waste disposal grants ................................ 329,839 311,510 324,559 323,910 ¥5,929 ∂12,400 ¥649 

Total, Loan subsidies and grants ............................ 527,944 488,978 496,100 509,295 ¥18,649 ∂20,317 ∂13,195 

Rural Electrification and Telecommunications Loans Program Account: 

Loan authorizations: 

Electric: 

Direct, 5 percent .................................................. (100,000 ) (100,000 ) (100,000 ) (100,000 ) ............................ ............................ ............................
103 

Direct, FFB ............................................................ (6,500,000 ) (6,000,000 ) (6,500,000 ) (6,500,000 ) ............................ (∂500,000 ) ............................Guaranteed underwriting ..................................... (499,000 ) ............................ ............................ (424,286 ) (¥74,714 ) (∂424,286 ) (∂424,286 ) 

Subtotal, Electric ............................................. (7,099,000 ) (6,100,000 ) (6,600,000 ) (7,024,286 ) (¥74,714 ) (∂924,286 ) (∂424,286 ) 

Telecommunications: 

Direct, 5 percent .................................................. (145,000 ) (145,000 ) (145,000 ) (145,000 ) ............................ ............................ ............................Direct, Treasury rate ............................................ (250,000 ) (250,000 ) (250,000 ) (250,000 ) ............................ ............................ ............................Direct, FFB ............................................................ (295,000 ) (295,000 ) (295,000 ) (295,000 ) ............................ ............................ ............................

Subtotal, Telecommunications ......................... (690,000 ) (690,000 ) (690,000 ) (690,000 ) ............................ ............................ ............................Total, Loan authorizations ............................... (7,789,000 ) (6,790,000 ) (7,290,000 ) (7,714,286 ) (¥74,714 ) (∂924,286 ) (∂424,286 ) 

Loan subsidies: 

Electric: 

Guaranteed underwriting ..................................... 699 ............................ ............................ 594 ¥105 ∂594 ∂594 

RETLP administrative expenses (transfer to RD) .................. 38,297 39,959 29,766 36,382 ¥1,915 ¥3,577 ∂6,616 

Total, Rural Electrification and Telecommunications 

Loans Program Account ................................................ 38,996 39,959 29,766 36,976 ¥2,020 ¥2,983 ∂7,210 

(Loan authorization) ................................................. (7,789,000 ) (6,790,000 ) (7,290,000 ) (7,714,286 ) (¥74,714 ) (∂924,286 ) (∂424,286 ) 

Distance learning, telemedicine, and broadband program: 

Loan authorizations: 

Broadband telecommunications .................................... (399,200 ) ............................ (210,360 ) (282,686 ) (¥116,514 ) (∂282,686 ) (∂72,326 ) 

Total, Loan authorizations ........................................ (399,200 ) ............................ (210,360 ) (282,686 ) (¥116,514 ) (∂282,686 ) (∂72,326 ) 

Loan subsidies and grants: 

Distance learning and telemedicine: 

Grants ................................................................... 32,435 30,000 14,883 28,570 ¥3,865 ¥1,430 ∂13,687 

Broadband telecommunications: 

Direct .................................................................... 22,275 ............................ 5,953 8,000 ¥14,275 ∂8,000 ∂2,047 Grants ................................................................... 13,379 17,976 ............................ 10,372 ¥3,007 ¥7,604 ∂10,372 

Total, Loan subsidies and grants ................... 68,089 47,976 20,836 46,942 ¥21,147 ¥1,034 ∂26,106 Total, Rural Utilities Service ........................... 635,029 576,913 546,702 593,213 ¥41,816 ∂16,300 ∂46,511 

(Loan authorization) .................................... (9,159,669 ) (7,572,180 ) (8,225,350 ) (8,802,661 ) (¥357,008 ) (∂1,230,481 ) (∂577,311 ) 

Total, Title III, Rural Development Programs .. 2,430,774 2,201,834 2,083,472 2,265,837 ¥164,937 ∂64,003 ∂182,365 
104 

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2011 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL 

FOR FISCAL YEAR 2012—Continued 

[In thousands of dollars] 

Item 2011 appropriation Budget estimate House allowance Committee recommendation Senate Committee recommendation compared with (∂ or ¥) 2010 appropriation Budget estimate House allowance 

(By transfer) ................................................ (496,702 ) (456,679 ) (430,119 ) (471,866 ) (¥24,836 ) (∂15,187 ) (∂41,747 ) (Loan authorization) .................................... (35,851,821 ) (33,831,552 ) (34,919,768 ) (36,130,780 ) (∂278,959 ) (∂2,299,228 ) (∂1,211,012 ) 

TITLE IV—DOMESTIC FOOD PROGRAMS 

Office of the Under Secretary for Food, Nutrition and Consumer Services ...................................................................................................... 811 828 684 770 ¥41 ¥58 ∂86 Food and Nutrition Service: 

Child nutrition programs ................................................................ 12,046,217 18,770,571 18,770,442 18,150,176 ∂6,103,959 ¥620,395 ¥620,266 

Competitive grants ................................................................. ............................ 5,000 ............................ ............................ ............................ ¥5,000 ............................School breakfast program grants .......................................... ............................ 10,000 ............................ 1,000 ∂1,000 ¥9,000 ∂1,000 Childhood Hunger challenge grants ...................................... ............................ 25,000 ............................ ............................ ............................ ¥25,000 ............................Transfer from section 32 ....................................................... 5,277,574 ............................ ............................ ............................ ¥5,277,574 ............................ .............................2 Percent (rescission) (discretionary) ................................... ¥48 ............................ ............................ ............................ ∂48 ............................ ............................

Total, Child nutrition programs ......................................... 17,323,743 18,810,571 18,770,442 18,151,176 ∂827,433 ¥659,395 ¥619,266 

Special supplemental nutrition program for women, infants, and 

children (WIC) ............................................................................. 6,734,027 7,390,100 6,001,074 6,582,497 ¥151,530 ¥807,603 ∂581,423 

Supplemental nutrition assistance program: 

(Food stamp program) ........................................................... 67,613,363 68,173,308 68,173,308 77,402,722 ∂9,789,359 ∂9,229,414 ∂9,229,414 

Reserve .......................................................................... 3,000,000 5,000,000 3,000,000 3,000,000 ............................ ¥2,000,000 ............................Center for Nutrition Policy and Promotion .................... ............................ 1,500 ............................ ............................ ............................ ¥1,500 ............................Grants to States and technical assistance .................. ............................ 9,000 ............................ ............................ ............................ ¥9,000 .............................2 Percent (rescission) (discretionary) .......................... ¥97 ............................ ............................ ............................ ∂97 ............................ ............................

Total, Food stamp program ...................................... 70,613,266 73,183,808 71,173,308 80,402,722 ∂9,789,456 ∂7,218,914 ∂9,229,414 

Commodity assistance program: 

Commodity supplemental food program ................................ 175,697 176,788 141,960 176,788 ∂1,091 ............................ ∂34,828 Farmers market nutrition program ........................................ 19,960 20,000 15,000 16,548 ¥3,412 ¥3,452 ∂1,548 Emergency food assistance program ..................................... 49,401 50,000 38,000 48,000 ¥1,401 ¥2,000 ∂10,000 
105 

Pacific island and disaster assistance ................................. 1,068 1,081 1,000 1,000 ¥68 ¥81 ............................IT modernization and support ................................................ ............................ 1,750 ............................ ............................ ............................ ¥1,750 ............................

Total, Commodity assistance program .............................. 246,126 249,619 195,960 242,336 ¥3,790 ¥7,283 ∂46,376 

Nutrition programs administration ................................................. 147,505 170,471 124,025 140,130 ¥7,375 ¥30,341 ∂16,105 

Total, Food and Nutrition Service ............................................... 95,064,667 99,804,569 96,264,809 105,518,861 ∂10,454,194 ∂5,714,292 ∂9,254,052 Total, Title IV, Domestic Food Programs .................................... 95,065,478 99,805,397 96,265,493 105,519,631 ∂10,454,153 ∂5,714,234 ∂9,254,138 

TITLE V—FOREIGN ASSISTANCE AND 

RELATED PROGRAMS 

Foreign Agricultural Service 

Salaries and expenses ............................................................................. 185,628 229,730 171,155 176,347 ¥9,281 ¥53,383 ∂5,192 

(Transfer from export loans) ........................................................... (6,452 ) (6,465 ) (6,415 ) (6,129 ) (¥323 ) (¥336 ) (¥286 ) 

Total, Salaries and expenses ..................................................... 192,080 236,195 177,570 182,476 ¥9,604 ¥53,719 ∂4,906 

Food for Peace Title I Direct Credit and Food for Progress Program Account, Administrative Expenses: 

Farm Service Agency, Salaries and expenses (transfer to FSA) .... 2,806 2,812 2,366 2,666 ¥140 ¥146 ∂300 

Food for Peace Title II Grants: 

Expenses .......................................................................................... 1,497,000 1,690,000 1,032,084 1,562,000 ∂65,000 ¥128,000 ∂529,916 

Commodity Credit Corporation Export Loans Program Account (administrative expenses): 

Salaries and expenses (Export Loans): 

General Sales Manager (transfer to FAS) .............................. 6,452 6,465 6,415 6,129 ¥323 ¥336 ¥286 Farm Service Agency S&E (transfer to FSA) .......................... 354 355 352 336 ¥18 ¥19 ¥16 

Total, CCC Export Loans Program Account ....................... 6,806 6,820 6,767 6,465 ¥341 ¥355 ¥302 

McGovern-Dole international food for education and child nutrition 

program grants .................................................................................... 199,101 200,500 178,596 188,000 ¥11,101 ¥12,500 ∂9,404 

Total, Title V, Foreign Assistance and Related Programs ......... 1,891,341 2,129,862 1,390,968 1,935,478 ∂44,137 ¥194,384 ∂544,510 

(By transfer) ...................................................................... (6,452 ) (6,465 ) (6,415 ) (6,129 ) (¥323 ) (¥336 ) (¥286 ) 
106 

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2011 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL 

FOR FISCAL YEAR 2012—Continued 

[In thousands of dollars] 

Item 2011 appropriation Budget estimate House allowance Committee recommendation Senate Committee recommendation compared with (∂ or ¥) 2010 appropriation Budget estimate House allowance 

TITLE VI—RELATED AGENCIES AND FOOD AND DRUG ADMINISTRATION 

DEPARTMENT OF HEALTH AND HUMAN SERVICES 

Food and Drug Administration 

Salaries and expenses, direct appropriation ........................................... 2,447,021 2,730,910 2,147,958 2,497,021 ∂50,000 ¥233,889 ∂349,063 

Prescription drug user fees ............................................................ (667,057 ) (856,041 ) (856,041 ) (702,172 ) (∂35,115 ) (¥153,869 ) (¥153,869 ) Medical device user fees ................................................................ (61,860 ) (67,118 ) (67,118 ) (57,605 ) (¥4,255 ) (¥9,513 ) (¥9,513 ) Animal drug user fees .................................................................... (19,448 ) (21,768 ) (21,768 ) (21,768 ) (∂2,320 ) ............................ ............................Generic animal drug user fees ....................................................... (5,397 ) (5,706 ) (5,706 ) (5,706 ) (∂309 ) ............................ ............................Tobacco product user fees .............................................................. (450,000 ) (477,000 ) (477,000 ) (477,000 ) (∂27,000 ) ............................ ............................Food and Feed Export Certification user fees ................................ ............................ (12,364 ) (12,364 ) (12,364 ) (∂12,364 ) ............................ ............................Food Reinspection fees ................................................................... ............................ (14,700 ) (14,700 ) (14,700 ) (∂14,700 ) ............................ ............................Voluntary qualified importer program fees .................................... ............................ (71,066 ) (36,000 ) (71,066 ) (∂71,066 ) ............................ (∂35,066 ) Mammography user fees ................................................................. (19,318 ) (19,318 ) (19,318 ) (19,318 ) ............................ ............................ ............................Export certification user fees .......................................................... (10,400 ) (11,667 ) (10,400 ) (11,667 ) (∂1,267 ) ............................ (∂1,267 ) 

Subtotal, FDA (with user fees) ................................................... (3,680,501 ) (4,287,658 ) (3,668,373 ) (3,890,387 ) (∂209,886 ) (¥397,271 ) (∂222,014 ) 

FDA New User Fees (Leg. proposals): 

Generic drug review user fees ............................................... ............................ (40,122 ) ............................ ............................ ............................ (¥40,122 ) ............................Reinspection fees ................................................................... ............................ (14,108 ) ............................ ............................ ............................ (¥14,108 ) ............................International express courier import fees .............................. ............................ (5,338 ) ............................ ............................ ............................ (¥5,338 ) ............................

Subtotal, FDA new user fees (Leg Proposals) ................... ............................ (59,568 ) ............................ ............................ ............................ (¥59,568 ) ............................

Buildings and facilities ........................................................................... 9,980 13,055 8,719 8,982 ¥998 ¥4,073 ∂263 

Total, FDA (w/user fees, including proposals) ........................... (3,690,481 ) (4,360,281 ) (3,677,092 ) (3,899,369 ) (∂208,888 ) (¥460,912 ) (∂222,277 ) Total, FDA (w/enacted user fees only) ....................................... (3,690,481 ) (4,300,713 ) (3,677,092 ) (3,899,369 ) (∂208,888 ) (¥401,344 ) (∂222,277 ) Total, FDA (excluding user fees) ................................................ 2,457,001 2,743,965 2,156,677 2,506,003 ∂49,002 ¥237,962 ∂349,326 
107 

INDEPENDENT AGENCIES 

Farm Credit Administration (limitation on administrative expenses) ..... (59,400 ) (62,000 ) (62,000 ) (62,000 ) (∂2,600 ) ............................ ............................

Total, Title VI, Related Agencies and Food and Drug Administration ..................................................................................... 2,457,001 2,743,965 2,156,677 2,506,003 ∂49,002 ¥237,962 ∂349,326 

TITLE VII—GENERAL PROVISIONS 

Limit fruit and vegetable program (Sec. 726 (13)) ................................ ¥117,000 ¥114,478 ¥133,000 ¥133,000 ¥16,000 ¥18,522 ............................Section 32 (rescission) (Sec. 726 (13)) .................................................. ............................ ............................ ¥150,000 ¥150,000 ¥150,000 ¥150,000 ............................Forestry Incentives program (Sec. 730) (rescission) ............................... ............................ ............................ ¥5,500 ¥6,000 ¥6,000 ¥6,000 ¥500 Great Plains Conservation (Sec. 730) (rescission) .................................. ............................ ............................ ¥500 ¥1,000 ¥1,000 ¥1,000 ¥500 Supplemental Nutrition Assistance Program Employment and Training 

(rescission) (Sec. 731) ........................................................................ ¥15,000 ............................ ¥11,000 ¥11,000 ∂4,000 ¥11,000 ............................

Limit Conservation stewardship (Sec. 726 (1)) ...................................... ¥39,000 ¥2,000 ¥210,000 ¥35,000 ∂4,000 ¥33,000 ∂175,000 Limit Dam Rehab (Sec. 726 (2)) ............................................................. ¥165,000 ¥165,000 ¥165,000 ¥165,000 ............................ ............................ ............................Limit Environmental Quality Incentives program (Sec. 726 (3)) ............ ¥350,000 ¥342,000 ¥350,000 ¥350,000 ............................ ¥8,000 ............................Limit Farmland Protection program (Sec. 726(4)) .................................. ............................ ............................ ¥50,000 ¥50,000 ¥50,000 ¥50,000 ............................Limit Grasslands reserve (Sec. 726 (5)) ................................................. ............................ ¥50,000 ¥30,000 ¥50,000 ¥50,000 ............................ ¥20,000 Limit Wetlands reserve (Sec. 726 (6)) .................................................... ¥119,000 ¥9,000 ¥200,000 ¥200,000 ¥81,000 ¥191,000 ............................Limit Wildlife habitat incentives (Sec. 726 (7)) ..................................... ............................ ¥12,000 ¥35,000 ¥35,000 ¥35,000 ¥23,000 ............................Limit Voluntary Public Access program (Sec. 726 (8)) ........................... ............................ ............................ ¥17,000 ¥17,000 ¥17,000 ¥17,000 ............................Limit Biomass Crop Assistance program ................................................ ¥134,000 ............................ ¥45,000 ............................ ∂134,000 ............................ ∂45,000 Limit Bioenergy Program for Advanced Biofuels (Sec. 726 (9)) ............. ............................ ............................ ¥50,000 ¥30,000 ¥30,000 ¥30,000 ∂20,000 Limit Renewable Energy for America (Sec. 726 (10)) ............................. ............................ ............................ ¥70,000 ¥36,000 ¥36,000 ¥36,000 ∂34,000 Limit Microenterprise investment program .............................................. ............................ ............................ ¥3,000 ............................ ............................ ............................ ∂3,000 Limit Crop Insurance Good Performance (Sec. 726 (11)) ....................... ¥25,000 ............................ ¥25,000 ¥25,000 ............................ ¥25,000 ............................Limit Agriculture management assistance (Sec. 726 (12)) .................... ............................ ¥5,000 ¥5,000 ¥5,000 ¥5,000 ............................ ............................Hardwood Trees (Reforestation Pilot Program) (Sec. 722) ...................... 639 ............................ ............................ 600 ¥39 ∂600 ∂600 Geographic Disadvantaged farmers (Sec. 721) ...................................... 1,996 ............................ ............................ 1,996 ............................ ∂1,996 ∂1,996 Agricultural Research Service, Buildings and facilities (rescission) ...... ¥229,582 ¥223,749 ............................ ............................ ∂229,582 ∂223,749 ............................Broadband loan balances (rescission) .................................................... ¥39,000 ............................ ............................ ............................ ∂39,000 ............................ ............................NIFA, Buildings and Facilities (rescission) .............................................. ¥1,037 ¥1,037 ............................ ............................ ∂1,037 ∂1,037 ............................Wildlife Habitat Incentives unobligated (rescission) ............................... ............................ ¥10,188 ............................ ............................ ............................ ∂10,188 ............................Water Bank Act unobligated (rescission) ................................................ ............................ ¥745 ............................ ............................ ............................ ∂745 ............................NRCS expired accounts (rescission) ........................................................ ¥13,937 ............................ ............................ ............................ ∂13,937 ............................ ............................Outreach for socially disadvantaged farmers (rescission) ..................... ¥2,137 ............................ ............................ ............................ ∂2,137 ............................ ............................Rural community advancement program (rescission) ............................. ¥993 ............................ ............................ ............................ ∂993 ............................ ............................Agriculture Marketing Services (rescission) ............................................ ¥717 ............................ ............................ ............................ ∂717 ............................ ............................Common Computing Environment (rescission) ........................................ ¥3,111 ............................ ............................ ............................ ∂3,111 ............................ ............................
108 

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2011 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL 

FOR FISCAL YEAR 2012—Continued 

[In thousands of dollars] 

Item 2011 appropriation Budget estimate House allowance Committee recommendation Senate Committee recommendation compared with (∂ or ¥) 2010 appropriation Budget estimate House allowance 

Animal and Plant Health Inspection Service (APHIS) Buildings and Facilities (rescission) .............................................................................. ¥629 ............................ ............................ ............................ ∂629 ............................ ............................Agriculture Buildings and Facilities (rescission) .................................... ¥45,000 ............................ ............................ ............................ ∂45,000 ............................ ............................Animal and Plant Health Inspection Service (APHIS) (rescission) .......... ¥10,887 ............................ ............................ ............................ ∂10,887 ............................ ............................Broadband grants (rescission) ................................................................ ¥25,000 ............................ ............................ ............................ ∂25,000 ............................ ............................Export credit (rescission) ......................................................................... ¥331,000 ............................ ............................ ............................ ∂331,000 ............................ ............................Trade Adjustment Assistance for Farmers (Sec. 729) (rescission) ......... ............................ ............................ ¥90,000 ............................ ............................ ............................ ∂90,000 Limit Emergency Food Assistance program (Sec. 730) ........................... ............................ ............................ ¥51,000 ............................ ............................ ............................ ∂51,000 U.S. Department of Agriculture Unobligated balances (rescission) ........ ............................ ............................ ¥63,000 ............................ ............................ ............................ ∂63,000 OAO (rescission) (Sec. 730) ..................................................................... ............................ ............................ ............................ ¥4,000 ¥4,000 ¥4,000 ¥4,000 Ocean freight (rescission) (Sec. 730) ...................................................... ............................ ............................ ............................ ¥5,000 ¥5,000 ¥5,000 ¥5,000 Public Law 480 Title I (rescission) (Sec. 730) ........................................ ............................ ............................ ............................ ¥3,000 ¥3,000 ¥3,000 ¥3,000 Foreign Currency Program (rescission) (sec. 730) .................................. ............................ ............................ ............................ ¥537 ¥537 ¥537 ¥537 Limit payments to Brazil Cotton Institute ............................................... ............................ ............................ ............................ ............................ ............................ ............................ ............................Watershed and flood protection program ................................................ ............................ ............................ 2,977 ............................ ............................ ............................ ¥2,977 GSA rent (rescission) ............................................................................... ............................ ............................ ............................ ............................ ............................ ............................ ............................NIFA B&F (rescission) (Sec. 730) ............................................................ ............................ ............................ ............................ ¥2,494 ¥2,494 ¥2,494 ¥2,494 Export credit (rescission) (Sec. 730) ....................................................... ............................ ............................ ............................ ¥15,000 ¥15,000 ¥15,000 ¥15,000 Emergency Conservation Program (disaster relief category) (Sec. 732) ............................ ............................ ............................ 78,000 ∂78,000 ∂78,000 ∂78,000 Emergency Forest Restoration (disaster relief category) (Sec. 732) ....... ............................ ............................ ............................ 49,000 ∂49,000 ∂49,000 ∂49,000 Emergency Watershed Protection (disaster relief category) (Sec. 732) .. ............................ ............................ ............................ 139,000 ∂139,000 ∂139,000 ∂139,000 

Total, Title VII, General provisions ............................................. ¥1,664,395 ¥935,197 ¥1,756,023 ¥1,060,435 ∂603,960 ¥125,238 ∂695,588 Grand total 1 ............................................................................... 130,559,669 132,278,780 125,359,837 136,955,373 ∂6,395,704 ∂4,676,593 ∂11,595,536 

Appropriations .................................................................... (131,484,699 ) (132,756,293 ) (125,834,837 ) (137,042,404 ) (∂5,557,705 ) (∂4,286,111 ) (∂11,207,567 ) Rescissions ........................................................................ (¥925,030 ) (¥477,513 ) (¥475,000 ) (¥353,031 ) (∂571,999 ) (∂124,482 ) (∂121,969 ) Disaster relief category ..................................................... ............................ ............................ ............................ (266,000 ) (∂266,000 ) (∂266,000 ) (∂266,000 ) 

(By transfer) ............................................................................... (831,347 ) (799,540 ) (718,004 ) (790,781 ) (¥40,566 ) (¥8,759 ) (∂72,777 ) (Loan authorization) ................................................................... (40,493,511 ) (38,578,642 ) (39,683,133 ) (40,887,762 ) (∂394,251 ) (∂2,309,120 ) (∂1,204,629 ) 
109 

(Limitation on administrative expenses) .................................... (172,847 ) (179,101 ) (175,500 ) (179,101 ) (∂6,254 ) ............................ (∂3,601 ) 

RECAPITULATION 

Title I—Agricultural programs ................................................................ 29,490,110 25,433,361 24,438,670 24,959,852 ¥4,530,258 ¥473,509 ∂521,182 

Mandatory ........................................................................................ (22,604,683 ) (18,293,475 ) (18,293,475 ) (18,293,475 ) (¥4,311,208 ) ............................ ............................Discretionary .................................................................................... (6,885,427 ) (7,139,886 ) (6,145,195 ) (6,666,377 ) (¥219,050 ) (¥473,509 ) (∂521,182 ) 

Title II—Conservation programs (discretionary) ..................................... 889,360 899,558 780,580 829,007 ¥60,353 ¥70,551 ∂48,427 Title III—Rural development (discretionary) ........................................... 2,430,774 2,201,834 2,083,472 2,265,837 ¥164,937 ∂64,003 ∂182,365 Title IV—Domestic food programs .......................................................... 95,065,478 99,805,397 96,265,493 105,519,631 ∂10,454,153 ∂5,714,234 ∂9,254,138 

Mandatory ........................................................................................ (87,937,154 ) (91,943,879 ) (89,943,750 ) (98,552,898 ) (∂10,615,744 ) (∂6,609,019 ) (∂8,609,148 ) Discretionary .................................................................................... (7,128,324 ) (7,861,518 ) (6,321,743 ) (6,966,733 ) (¥161,591 ) (¥894,785 ) (∂644,990 ) 

Title V—Foreign assistance and related programs (discretionary) ........ 1,891,341 2,129,862 1,390,968 1,935,478 ∂44,137 ¥194,384 ∂544,510 Title VI—Related agencies and Food and Drug Administration (discretionary) ................................................................................................. 2,457,001 2,743,965 2,156,677 2,506,003 ∂49,002 ¥237,962 ∂349,326 Title VII—General provisions (discretionary) ........................................... ¥1,664,395 ¥935,197 ¥1,756,023 ¥1,060,435 ∂603,960 ¥125,238 ∂695,588 

Total 1 .......................................................................................... 130,559,669 132,278,780 125,359,837 136,955,373 ∂6,395,704 ∂4,676,593 ∂11,595,536 

1 Excludes CFTC fiscal year 2011 funding ($202.675 million) ($202.270 million after ATB) provided in Financial Services and General Government Appropriations Act. 

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