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[House Report 112-101]
[From the U.S. Government Publishing Office]

112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    112-101

======================================================================

 
   AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND 
               RELATED AGENCIES APPROPRIATIONS BILL, 2012

                                _______
                                

  June 3, 2011.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Kingston, from the Committee on Appropriations, submitted the 
                               following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 2112]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for Agriculture, Rural Development, Food and 
Drug Administration, and Related Agencies for fiscal year 2012.

                              INTRODUCTION

                                OVERVIEW

    Our country has reached a critical crossroads in terms of 
federal spending. On May 16th, spending soared past the $14.1 
trillion statutory debt ceiling. For every dollar that the 
Federal Government spends, 42 cents must be borrowed. 
Unbelievably, it has operated on deficit spending for 31 
consecutive months.
    The discretionary spending in this bill totals 
$17,250,000,000, which is a decrease of $2,669,000,000 below 
the amount included in the fiscal year 2011 Continuing 
Resolution and a decrease of $5,039,000,000 below the budget 
request. Overall, the bill results in a 13.4 percent reduction 
in spending from fiscal year 2011. With this reduction, 
spending will be reduced below fiscal year 2008 levels.
    In 2008, the nation's debt was $9 trillion, which seemed 
unmanageable at the time. Today, the debt is more than $5 
trillion higher. Clearly, America is on an unsustainable 
spending path. With this bill, the Agriculture Appropriations 
Subcommittee is doing its part to reverse this destructive 
spending pattern and restore the fiscal health of our nation.
    While the bill reduces funding for the agencies and 
programs under its jurisdiction, it provides sufficient funding 
for them to focus on their core missions. USDA, FDA, and CFTC 
will be able to continue their critical missions of ensuring 
food and drug safety, supporting American agriculture and rural 
communities across the Nation, ensuring that agricultural 
research is science-based and focused on keeping American 
agriculture competitive, helping the most needy in our domestic 
feeding programs, working with private land owners to implement 
critical conservation practices, and maintaining the 
international food programs that have shown results.
    The proposed cuts contained in the bill are not a 
reflection of those civil servants at USDA, FDA, and CFTC who 
are dedicated to carrying out their work on behalf of the 
American people. This bill allows them to continue their 
statutory responsibilities, while keeping spending on a 
sustainable and stable path.
    The Committee is concerned about a number of unfunded 
mandates, overly burdensome rulemakings and various initiatives 
that USDA, FDA, and CFTC are leading or participating in, 
including unfunded mandates in the child nutrition programs 
that could cost states nearly $7 billion; Know Your Farmer-Know 
Your Food; cultural transformation; rulemaking on television 
advertising; rulemaking related to the Packers and Stockyards 
Act; and the lack of cost-benefit analysis on various CFTC 
proposed rules, among others.
    The bill and report include provisions related to these 
mandates, which harm small businesses, rural communities, and 
stifle economic growth. The Committee urges USDA, FDA, and 
CFTC, in this tough budget environment, to keep their 
priorities in line with their core responsibilities and 
jurisdictions.
    While the fiscal challenges are evident, this bill 
demonstrates a fair balance between tough spending decisions 
and support for core Federal responsibilities.

                         Oversight and Hearings

    Consistent with the Committee on Appropriations Oversight 
Plan, as approved and transmitted to the Committee on Oversight 
and Government Reform and the Committee on House Administration 
on February 8, 2011, the Subcommittee began the fiscal year 
2012 process by keeping the Committee's strong commitment to 
strident and comprehensive oversight of Federal discretionary 
spending under the Subcommittee's jurisdiction. In order to 
thoroughly review the President's budget request for fiscal 
year 2012 and examine how funds appropriated in previous years 
had been spent and managed, the Subcommittee held 11 hearings 
for the mission areas, agencies and programs of USDA, FDA, and 
CFTC. The hearings included:
    Secretary of Agriculture--March 1, 2011
    USDA Inspector General--March 2, 2011
    USDA Marketing and Regulatory Programs--March 10, 2011
    Food and Drug Administration--March 11, 2011
    USDA Food Safety--March 15, 2011
    USDA Research, Education, and Economics--March 16, 2011
    Commodity Futures Trading Commission--March 17, 2011
    USDA Farm and Foreign Agricultural Services--March 30, 2011
    USDA Rural Development--March 31, 2011
    USDA Food, Nutrition and Consumer Services--April 1, 2011
    USDA Natural Resources and Environment--April 5, 2011
    Several significant topics were covered at the hearings. 
The Subcommittee engaged the Secretary of Agriculture, Tom 
Vilsack, in a discussion on the future of farming and ranching 
in America and how to address the unique needs of Americans who 
live in rural areas. The Subcommittee reviewed USDA's 
management of the $98 billion in annual funding for its 
domestic feeding programs, including the Supplemental Nutrition 
Assistance Program, the School Lunch Program and other 
emergency food programs, and expressed particular interest in 
error rates and whether sufficient controls exist to minimize 
fraud. The Subcommittee fully explored the Grain Inspection, 
Packers and Stockyards Administration's proposed rule regarding 
the marketing of livestock and was disappointed to learn that 
the agency had decided not to release USDA's economic analysis 
of the rule for public comment. The Subcommittee discussed the 
Federal food safety inspection system, particularly 
coordination between USDA and FDA, and implementation of the 
Food Safety Modernization Act of 2010. The Subcommittee 
reviewed Federal agricultural research agencies and programs. 
It discussed how investment in research programs today yields 
results in 10 to 15 years and considered how to balance 
competitively awarded research grants with support for the 
land-grant and other agricultural colleges and universities 
through formula funds. The Subcommittee received testimony on 
implementation of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act and its effect on commodity markets. It 
considered the information technology needs of the Farm Service 
Agency and other USDA agencies. It challenged the 
administration's plans to eliminate funding for certain rural 
housing programs and considered the successes and challenges 
for conservation on private farm and ranch lands.
    The Subcommittee will continuously monitor the issues 
identified and discussed at the hearings, as well as others 
relevant to the management of USDA, FDA, and CFTC, and will 
maintain its oversight efforts throughout the 112th Congress to 
ensure taxpayer dollars are being invested wisely and prudently 
on behalf of the American people.

                                TITLE I

                         AGRICULTURAL PROGRAMS

                 Production, Processing, and Marketing

                        Office of the Secretary

2011 appropriation....................................        $5,051,000
2012 budget estimate..................................         5,883,000
Provided in the bill..................................         4,293,000
Comparison:
    2011 appropriation................................          -758,000
    2012 budget estimate..............................        -1,590,000

                          COMMITTEE PROVISIONS

    For the Office of the Secretary, the Committee provides an 
appropriation of $4,293,000.
    Spending Plans.--Within 30 days from the enactment of this 
Act, the Secretary shall notify the Committees on 
Appropriations of both Houses of Congress, on the allocation of 
the funds provided herein by account, and within each account 
by program, project and activity.
    Design-Build.--The Committee encourages the Department to 
use the design-build method of project delivery when 
appropriate.
    CCC Report.--The Committee directs the Secretary to provide 
a report on November 15, 2011, and May 15, 2012, on planned 
uses of funding under the authorities of Section 4 and Section 
11 of the Commodity Credit Corporation Act.
    GPS Interference.--The Committee recognizes that the use of 
the Global Positioning System (GPS) is critical to USDA's 
mission, including natural resource monitoring, forest 
firefighting, law enforcement, and research. In addition, 
precision agriculture would not be possible without GPS. It is 
estimated that U.S. farmers and ranchers have invested more 
than $3 billion in GPS technologies. The Committee is aware of 
a decision by the Federal Communications Commission that may 
disrupt the use of GPS, causing significant problems for USDA 
and our Nation's farmers and ranchers. The Committee directs 
USDA to ensure the FCC is aware of these concerns and to work 
with other Federal agencies, such as the Department of Defense 
and the Department of Transportation, to address them.
    Report on Critical USDA Activities.--The Committee has 
funded critical research projects, conservation activities and 
pest and disease functions in the past. Some examples include 
water use reduction research, fresh produce food safety 
research, dairy education and extension, conservation fuels 
management and restoration, and Asian long-horned beetle 
control. The Committee directs the Department to report on how 
it is addressing the needs identified by these and other 
similar activities. The report should be submitted to the 
Committee by December 1, 2011.
    Know Your Farmer.--The Committee directs the Department to 
provide an electronic notification to the Committee at least 72 
hours prior to any travel in support of the ``Know YourFarmer-
Know Your Food'' initiative, and such notification shall 
include the agenda for the entire trip along with the cost to 
U.S. taxpayers. Additionally, the Committee directs the 
Department to post Media Advisories of all such trips on its 
website, and that such advisories include the same information.
    Cultural Transformation.--USDA is carrying out initiatives 
such as cultural transformation without a budget request or a 
specific appropriation for this activity. One of the concerns 
is the way in which this initiative is spending scarce Federal 
resources. According to USDA documents, the Department spent 
$50,000 to train 900 senior leaders on cultural transformation. 
This appears to be a legitimate expense; however, USDA spent 
nearly $500,000 on personnel and travel to send 43 employees to 
one of the most expensive business schools on the East Coast 
for a week of training. This does not appear to be a wise 
expenditure of Federal dollars. Furthermore, the Committee does 
not believe that holding cultural transformation activities on 
the National Mall is a wise expenditure of funds either. 
Lastly, the Department has not defined what cultural 
transformation is, what requirement is attempting to be met, 
what the goals are, and what measurements are being used in 
order to determine its effectiveness.
    Explanatory Notes.--The Committee appreciates the detailed 
information provided in the Explanatory Notes and relies on 
this information when considering budget proposals. For fiscal 
year 2013 and future years, the Department is directed to 
present them in a format consistent with the presentation used 
for the fiscal year 2012 budget with two exceptions. The 
Committee directs the Department to compare any proposed 
increase or decrease to the funding provided in fiscal years 
2008 and 2012 for the related program or activity. The 
Committee further directs the Department to include an errata 
sheet in the Explanatory Notes of any proposed budget authority 
levels that do not conform to the budget appendix. The 
Explanatory Notes should be assembled with the accounts in the 
same order as the accounts in the bill. Any additional 
deviations from that format must be approved in advance by the 
Committee.
    Late Reports.--Reports requested by the House and Senate 
Appropriations Committees are an important part of the exercise 
of the Committees' oversight responsibilities. The Committee is 
concerned about the Department's delinquency in completing 
these reports. The Committee is also concerned that the delay 
is due to excessively long reviews, especially in the Office of 
the Secretary. The reports are due on the dates specified in 
either the House, Senate or conference report. Each agency of 
the Department is directed to comply with the deadlines and to 
cooperate fully with the Office of Budget and Program Analysis 
in providing these reports. The Committee reserves the right to 
call before it any agency that does not submit its report or 
reports on time.
    State Office Collocation.--The Committee continues to 
direct that any reallocation of resources related to the 
collocation of state offices scheduled for 2011 and subsequent 
years is subject to the Committee's reprogramming procedures.
    Administrative Provision.--The Committee directs the 
Secretary to advise the Committees on Appropriations, through 
the Office of Budget and Program Analysis, of the status of all 
reports requested of the Department in this bill at the time of 
submission of the fiscal year 2013 budget and monthly 
thereafter.
    The Committee further directs that the dates established 
for the receipt of reports requested by the Committee in this 
report are firm, and that submission of reports is not to be 
delayed pending completion of the conference on this bill.
    The Committee reminds the Secretary that all correspondence 
related to the directives in this bill must be addressed to the 
Committee on Appropriations.
    Loan and Grant Programs.--The Committee directs the 
Department, through the Office of Budget and Program Analysis, 
to provide quarterly reports to the Committees on 
Appropriations of the House of Representatives and the Senate 
on the status of obligations and funds availability for the 
loan and grant programs provided in this bill.
    The Committee further directs that if an estimate of loan 
activity for any program funded in Titles I and III of this 
bill indicates that a limitation on authority to make 
commitments for a fiscal year will be reached before the end of 
that fiscal year, or in any event whenever 75 per centum of the 
authority to make commitments has been utilized, the Secretary 
shall promptly notify the Committees in writing, through the 
Office of Budget and Program Analysis.
    The Committee encourages the Secretary to work with 
producers who could not file the necessary paperwork within the 
designated time period for the Crop Insurance program due to 
flooding and other natural disasters in Presidentially declared 
disaster areas.

                       Office of Tribal Relations

2011 appropriation....................................          $498,000
2012 budget estimate..................................         1,015,000
Provided in the bill..................................           423,000
Comparison:
    2010 appropriation................................           -75,000
    2011 budget estimate..............................          -592,000

                          COMMITTEE PROVISIONS

    For the Office of Tribal Relations, the Committee provides 
an appropriation of $423,000.

                   Healthy Food Financing Initiative

2011 appropriation....................................                 0
2012 budget estimate..................................       $35,000,000
Provided in the bill..................................                 0
Comparison:
    2011 appropriation................................                 0
    2012 budget estimate..............................       -35,000,000

                          COMMITTEE PROVISIONS

    The Committee does not provide an appropriation for the 
Healthy Food Financing Initiative.

                          Executive Operations

                     OFFICE OF THE CHIEF ECONOMIST

2011 appropriation....................................       $12,008,000
2012 budget estimate..................................        15,196,000
Provided in the bill..................................        10,707,000
Comparison:
    2011 appropriation................................        -1,301,000
    2012 budget estimate..............................        -4,489,000

                          COMMITTEE PROVISIONS

    For the Office of the Chief Economist, the Committee 
provides an appropriation of $10,707,000.

                       NATIONAL APPEALS DIVISION

2011 appropriation....................................       $14,225,000
2012 budget estimate..................................        15,254,000
Provided in the bill..................................        12,091,000
Comparison:
    2011 appropriation................................        -2,134,000
    2012 budget estimate..............................        -3,163,000

                          COMMITTEE PROVISIONS

    For the National Appeals Division, the Committee provides 
an appropriation of $12,091,000.

                 OFFICE OF BUDGET AND PROGRAM ANALYSIS

2011 appropriation....................................        $9,417,000
2012 budget estimate..................................         9,436,000
Provided in the bill..................................         8,004,000
Comparison:
    2011 appropriation................................        -1,413,000
    2012 budget estimate..............................        -1,432,000

                          COMMITTEE PROVISIONS

    For the Office of Budget and Program Analysis, the 
Committee provides an appropriation of $8,004,000.

                      OFFICE OF HOMELAND SECURITY

2011 appropriation....................................        $1,496,000
2012 budget estimate..................................         4,272,000
Provided in the bill..................................         1,272,000
Comparison:
    2011 appropriation................................          -224,000
    2012 budget estimate..............................        -3,000,000

                          COMMITTEE PROVISIONS

    For the Office of Homeland Security, the Committee provides 
an appropriation of $1,272,000.

                    Office of Advocacy and Outreach

2011 appropriation....................................        $1,422,000
2012 budget estimate..................................         7,000,000
Provided in the bill..................................         1,209,000
Comparison:
    2011 appropriation................................          -213,000
    2012 budget estimate..............................        -5,791,000

                          COMMITTEE PROVISIONS

    For the Office of Advocacy and Outreach, the Committee 
provides an appropriation of $1,209,000.

                Office of the Chief Information Officer

2011 appropriation....................................       $39,920,000
2012 budget estimate..................................        63,579,000
Provided in the bill..................................        35,000,000
Comparison:
    2011 appropriation................................        -4,920,000
    2012 budget estimate..............................       -28,579,000

                          COMMITTEE PROVISIONS

    For the Office of the Chief Information Officer, the 
Committee provides an appropriation of $35,000,000.

                 Office of the Chief Financial Officer

2011 appropriation....................................        $6,247,000
2012 budget estimate..................................         6,566,000
Provided in the bill..................................         5,310,000
Comparison:
    2011 appropriation................................          -937,000
    2012 budget estimate..............................        -1,256,000

                          COMMITTEE PROVISIONS

    For the Office of the Chief Financial Officer, the 
Committee provides an appropriation of $5,310,000.
    The Committee directs the Department to submit a report 
concurrent with the Department's annual budget submission for 
the following fiscal year, updating the Committee on its 
contracting out policies, including agency budgets for 
contracting out, for fiscal years 2010 and 2011. The Committee 
is continuing bill language requiring the submission of the 
report on contracting out policies and agency budgets, prior to 
use of any funds appropriated to the Office of the Chief 
Financial Officer for FAIR Act or Circular A-76 activities.
    Assessments.--The assessments that the Department charges 
its agencies for other government- and department-wide 
activities continue to escalate. Since these assessments are 
borne by the agencies, and Congress did not specifically 
provide increases to the agencies for these costs, most of the 
funding for the increase has come at the expense of programs. 
The Committee continues to direct the Office of the Chief 
Financial Officer to scrutinize the need for each activity, to 
consider its benefit to the mission of each agency, and to 
limit spending wherever possible.

           Office of the Assistant Secretary for Civil Rights

2011 appropriation....................................          $893,000
2012 budget estimate..................................           895,000
Provided in the bill..................................           760,000
Comparison:
    2011 appropriation................................          -133,000
    2012 budget estimate..............................          -135,000

                          COMMITTEE PROVISIONS

    For the Office of the Assistant Secretary for Civil Rights, 
the Committee provides an appropriation of $760,000.

                         Office of Civil Rights

2011 appropriation....................................       $22,692,000
2012 budget estimate..................................        24,922,000
Provided in the bill..................................        19,288,000
Comparison:
    2011 appropriation................................        -3,404,000
    2012 budget estimate..............................        -5,634,000

                          COMMITTEE PROVISIONS

    For the Office of Civil Rights, the Committee provides an 
appropriation of $19,288,000.

          Office of the Assistant Secretary for Administration

2011 appropriation....................................          $804,000
2012 budget estimate..................................           820,000
Provided in the bill..................................           683,000
Comparison:
    2011 appropriation................................          -121,000
    2012 budget estimate..............................          -137,000

                          COMMITTEE PROVISIONS

    For the Office of the Assistant Secretary for 
Administration, the Committee provides an appropriation of 
$683,000.

        Agriculture Buildings and Facilities and Rental Payments

2011 appropriation....................................      $246,476,000
2012 budget estimate..................................       255,191,000
Provided in the bill..................................       209,505,000
Comparison:
    2011 appropriation................................       -36,971,000
    2012 budget estimate..............................       -45,686,000

                          COMMITTEE PROVISIONS

    For Agriculture Buildings and Facilities and Rental 
Payments, the Committee provides an appropriation of 
$209,505,000.
    The following table represents the Committee's specific 
recommendations for this account:

        Agriculture Buildings and Facilities and Rental Payments

                        [In thousands of dollars]

                                    2011     2012 budget     Committee
                                  enacted       request   recommendation

Rental Payments...............     $178,113     $164,470        $151,396
Department of Homeland               13,473       13,800          11,452
 Security Building Security...
Building Operations...........       54,890       76,921          46,657
                               -----------------------------------------
      Total...................      246,476      255,191         209,505

                     Hazardous Materials Management

2011 appropriation....................................        $3,992,000
2012 budget estimate..................................         5,125,000
Provided in the bill..................................         3,393,000
Comparison:
    2011 appropriation................................          -599,000
    2012 budget estimate..............................        -1,732,000

                          COMMITTEE PROVISIONS

    For Hazardous Materials Management, the Committee provides 
an appropriation of $3,393,000.

                      Departmental Administration

2011 appropriation....................................       $29,647,000
2012 budget estimate..................................        35,787,000
Provided in the bill..................................        23,900,000
Comparison:
    2011 appropriation................................        -5,747,000
    2012 budget estimate..............................       -11,887,000

                          COMMITTEE PROVISIONS

    For Departmental Administration, the Committee provides an 
appropriation of $23,900,000.

     Office of the Assistant Secretary for Congressional Relations

2011 appropriation....................................        $3,869,000
2012 budget estimate..................................         4,041,000
Provided in the bill..................................         3,289,000
Comparison:
    2011 appropriation................................          -580,000
    2012 budget estimate..............................          -752,000

                          COMMITTEE PROVISIONS

    For the Office of the Assistant Secretary for Congressional 
Relations, the Committee provides an appropriation of 
$3,289,000.
    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.

                        Office of Communications

2011 appropriation....................................        $9,480,000
2012 budget estimate..................................         9,722,000
Provided in the bill..................................         8,058,000
Comparison:
    2011 appropriation................................        -1,422,000
    2012 budget estimate..............................        -1,664,000

                          COMMITTEE PROVISIONS

    For the Office of Communications, the Committee provides an 
appropriation of $8,058,000.

                      Office of Inspector General

2011 appropriation....................................       $88,548,000
2012 budget estimate..................................        90,755,000
Provided in the bill..................................        80,000,000
Comparison:
    2011 appropriation................................        -8,548,000
    2012 budget estimate..............................       -10,755,000

                          COMMITTEE PROVISIONS

    For the Office of Inspector General, the Committee provides 
an appropriation of $80,000,000.

                     Office of the General Counsel

2011 appropriation....................................       $41,416,000
2012 budget estimate..................................        46,058,000
Provided in the bill..................................        35,204,000
Comparison:
    2011 appropriation................................        -6,212,000
    2012 budget estimate..............................       -10,854,000

                          COMMITTEE PROVISIONS

    For the Office of the General Counsel, the Committee 
provides an appropriation of $35,204,000.

  Office of the Under Secretary for Research, Education and Economics

2011 appropriation....................................          $893,000
2012 budget estimate..................................           911,000
Provided in the bill..................................           760,000
Comparison:
    2011 appropriation................................          -133,000
    2012 budget estimate..............................          -151,000

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Research, 
Education and Economics, the Committee provides an 
appropriation of $760,000.
    Foundational Research.--The Committee recognizes the broad 
responsibilities in agricultural research, education, 
extension, and economics that Congress has given to the 
Department. However, it is very concerned with the number and 
amount of grant awards going to support local and regional food 
systems, which do not advance knowledge and understanding of 
the agricultural sciences and appear to have little scientific 
merit. Given the current budget restraints, the Committee 
expects the Department to conduct and support only the highest 
quality, peer-reviewed foundational research.
    Brown Marmorated Stink Bug.--The Committee appreciates the 
work of ARS and NIFA regarding the brown marmorated stink bug. 
This pest is causing significant damage to agricultural 
products, particularly tree fruit in the mid-Atlantic States. 
The Committee encourages ARS and NIFA to work collaboratively 
with APHIS and state partners to identify and implement 
appropriate controls.

                       Economic Research Service

2011 appropriation....................................       $81,814,000
2012 budget estimate..................................        85,971,000
Provided in the bill..................................        70,000,000
Comparison:
    2011 appropriation................................       -11,814,000
    2012 budget estimate..............................       -15,971,000

                          COMMITTEE PROVISIONS

    For the Economic Research Service, the Committee provides 
an appropriation of $70,000,000.
    ERS Reports.--The Committee concurs with the agency's 
proposed reductions and provides no funding for any work 
related to the Community Access to Local Food proposal.

                National Agricultural Statistics Service

2011 appropriation....................................      $156,447,000
2012 budget estimate..................................       165,421,000
Provided in the bill..................................       149,500,000
Comparison:
    2011 appropriation................................        -6,947,000
    2012 budget estimate..............................       -15,921,000

                          COMMITTEE PROVISIONS

    For the National Agricultural Statistics Service, the 
Committee provides an appropriation of $149,500,000.
    Included in this amount is $40,000,000 for the Census of 
Agriculture.
    NASS Reports.--The Committee concurs with the agency's 
proposed reductions and realignments.

                     Agricultural Research Service

                         SALARIES AND EXPENSES

2011 appropriation...................................     $1,133,230,000
2012 budget estimate.................................      1,137,690,000
Provided in the bill.................................        993,345,000
Comparison:
    2011 appropriation...............................       -139,885,000
    2012 budget estimate.............................       -144,345,000

                          COMMITTEE PROVISIONS

    For Salaries and Expenses of the Agricultural Research 
Service, the Committee provides an appropriation of 
$993,345,000.
    Priority Research.--The Committee directs the agency to 
focus its resources on only the highest priority research and 
building and facility repair and maintenance needs. The 
Committee remains concerned about the need to control the 
spread of Ug99 and provides $1,250,000 for Ug99 research as 
requested.
    Research Facilities.--The Committee concurs with the 
Department's proposal to close 10 research facilities in the 
following locations: Fairbanks, Alaska; Shafter, California; 
Brooksville, Florida; Watkinsville, Georgia; New Orleans, 
Louisiana; Coshocton, Ohio; Lane, Oklahoma; Clemson, South 
Carolina; Weslaco, Texas; and Beaver, West Virginia. The 
Committee provides the Secretary the authority to transfer a 
closed facility to an 1862, 1890, 1994 or Hispanic-serving 
agricultural college or university provided the institution 
agrees to maintain the facility for agricultural and natural 
resources research for a minimum of 25 years. The Committee 
directs the agency to provide a report on the disposition of 
these facilities by December 15, 2011.
    Research Facility Plan.--The Committee directs ARS to 
establish a long-term, multi-year plan to guide capital asset 
construction decisions for new agricultural research buildings 
and facilities consistent with program missions, goals and 
requirements. The plan should establish a process for setting 
and ranking capital asset construction priorities, reflecting 
the agency's research priorities, and complement the agency's 
management plans for its planned and existing facilities. The 
plan should include estimated funding requirements. As the 
agency develops the plan, it should provide interested parties 
an opportunity to provide input. The agency should address 
whether various leasing options, including build-to-lease and 
building retrofits, are appropriate and under what condition 
they should be utilized. The Committee encourages the agency to 
consider planning processes utilized by other Federal agencies, 
such as the Department of Veterans Affairs and the Department 
of Defense, and to incorporate the best strategies from them 
into the agency's plan. The agency is directed to develop the 
plan and report to Congress within 90 days after enactment of 
this Act.
    National Arboretum.--The Committee directs the National 
Arboretum to maintain its National Boxwood Collection and the 
Glenn Dale Hillside portion of the Azalea Collection. The 
Committee encourages the National Arboretum to work 
collaboratively with supporters of the National Arboretum to 
raise additional funds to ensure the long-term viability of 
these and other important collections.
    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 strives to meet the food, fiber and bio-
energy demands of a growing population.
    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.
    Chemical Threat Agents.--The Committee supports the 
agency's research efforts on emerging chemical threat agents 
and biological threats. However, it is unsure of the funding 
needs and requirements for these activities in fiscal year 
2012, and as such is not able to recommend a specific 
appropriation. The Committee looks forward to working with the 
Department to ensure it can continue this important research.
    Verticillium wilt research.--The Committee commends the 
agency's research that seeks to minimize the effects the 
Verticillium wilt fungus can have on crops, such as lettuce, 
potatoes, tomatoes, and cotton, and encourages the agency to 
continue to work with industry, university, and other partners 
to develop effective control mechanisms.
    Floriculture and Nursery Research.--The Committee 
recognizes the important research the agency has undertaken 
regarding floral and horticultural crops and encourages it to 
continue to work with industry, university, and other partners 
to address the unique challenges floral and horticultural crop 
growers face.

               National Institute of Food and Agriculture

                   RESEARCH AND EDUCATION ACTIVITIES

2011 appropriation....................................      $698,740,000
2012 budget estimate..................................       708,107,000
Provided in the bill..................................       600,800,000
Comparison:
    2011 appropriation................................       -97,940,000
    2012 budget estimate..............................      -107,307,000

                          COMMITTEE PROVISIONS

    For Research and Education Activities, the Committee 
provides an appropriation of $600,800,000.
    Program Management.--The Committee concurs with the 
proposal to support activities under the Graduate Fellowship 
Grants and Institution Challenge Grants through the Agriculture 
and Food Research Initiative. The Committee also concurs with 
the proposal to consolidate pest control activities under the 
Integrated Pest Management and Biological Control Program.
    Research Priorities.--The Committee regrets it cannot 
provide an increase for the Agriculture and Food Research 
Initiative for fiscal year 2012. While the Committee 
appreciates the work of the dedicated staff of NIFA, especially 
for their efforts to reorganize the agency and raise the 
profile of agricultural research as directed by the Food, 
Conservation, and Energy Act of 2008, it is concerned about 
some of the research being funded by the agency. For example, 
the agency recently awarded more than $23 million in grants to 
improve regional and local food systems. Over the past few 
years, numerous reports from Federal agencies and private 
philanthropic and scientific organizations have highlighted the 
need for the United States to invest in agricultural research, 
particularly to ensure productivity growth and to develop and 
refine sound natural resources management practices for U.S. 
farmers and ranchers and others around the world. In light of 
this advice and the nation's serious budget deficit and debt 
problems, the agency should be focusing its research efforts on 
only the highest priority, scientifically merited research. 
While there are many interesting research topics and a 
multitude of issues that could be researched, the Committee 
expects the agency to focus on its core mission of agricultural 
research by setting a very high standard for research funded by 
the agency and requiring a rigorous peer review.
    Policy Research.--The Committee directs the Director of 
NIFA to consult with the Office of the Chief Economist in 
developing any requests for proposals for competitive grants, 
reviewing applications submitted to the Department, and 
awarding competitive grants for the activities authorized by 7 
U.S.C. 3155.
    Unexpended Balances.--The Committee is concerned that the 
agency continues to have significant unexpended balances. The 
Committee directs the agency to provide a report on the 
balances, including an explanation for its past practices and 
the agency's plans to improve the management of its 
appropriation and activities by September 1, 2011.
    Blueberry and Cranberry Research.--The Committee recognizes 
that the production of blueberries and cranberries is vital to 
many local economies and encourages the agency 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 following table reflects the amount provided by the 
Committee:

               NATIONAL INSTITUTE OF FOOD AND AGRICULTURE
                    RESEARCH AND EDUCATION ACTIVITIES
                         (Dollars in Thousands)
------------------------------------------------------------------------
                                       2011                   Committee
                                     enacted    2012 budget   provision
------------------------------------------------------------------------
Hatch Act, Formula Funds.........     $236,334     $204,250     $208,000
McIntire-Stennis, Cooperative           32,934       27,550       30,000
 Forestry, Formula Funds.........
Evans-Allen Program (1890               50,898       48,500       48,000
 Colleges and Tuskegee
 University).....................
Special Grants for Global Change/        1,405        1,408        1,250
 Ultraviolet Radiation...........
Other Special Grants.............        1,433          427            0
Integrated Pest Management and          16,153       16,185       14,000
 Biological Control..............
Agriculture and Food Research          264,470      324,655      229,500
 Initiative......................
Animal Health and Disease                2,944            0        4,000
 Research........................
Veterinary Medicine Loan                 4,790        4,800        4,200
 Repayment.......................
Multicultural Scholars Program...        1,239        1,241        1,000
Hispanic Education Partnership           9,219       10,161        7,800
 Grants..........................
Alaska Native and Hawaiian Native        3,194        3,200        2,700
 Education Grants................
Secondary, 2 Year Post Secondary           981        3,483          900
 and Ag in the Classroom.........
Aquaculture Grants...............        3,920        3,928        3,300
Sustainable Agriculture Research        14,471       15,000       12,300
 and Education...................
Capacity Building Grants for1890        19,336       20,075       16,400
 Institution.....................
Payments to 1994 Institutions....        3,335        3,676        2,800
Resident Instruction Grants for            898          900          900
 Insular Areas...................
Distance Education Grants for              749          750          750
 Insular Areas...................
Competitive Grants for Policy                0            0        3,000
 Research........................
Federal Administration...........       11,230       14,253       10,000
    Data Information System              2,699        2,704        2,500
     (REEIS).....................
    Electronic Grants                    2,132        5,136        2,000
     Administration System.......
                                  --------------------------------------
Total Research and Education           698,740      708,107      600,800
 Activities......................
------------------------------------------------------------------------

              NATIVE AMERICAN INSTITUTIONS ENDOWMENT FUND

2011 appropriation....................................     ($11,880,000)
2012 budget estimate..................................      (11,880,000)
Provided in the bill..................................      (11,880,000)
Comparison:
    2011 appropriation................................               ---
    2012 budget estimate..............................               ---

                          COMMITTEE PROVISIONS

    For the Native American Institutions Endowment Fund, the 
Committee provides $11,880,000.

                          EXTENSION ACTIVITIES

2011 appropriation....................................      $479,132,000
2012 budget estimate..................................       466,788,000
Provided in the bill..................................       411,200,000
Comparison:
    2011 appropriation................................       -67,932,000
    2012 budget estimate..............................       -55,588,000

                          COMMITTEE PROVISIONS

    For Extension Activities, the Committee provides an 
appropriation of $411,200,000.
    The following table reflects the amount provided by the 
Committee:

               NATIONAL INSTITUTE OF FOOD AND AGRICULTURE
                          EXTENSION ACTIVITIES
                         (Dollars in Thousands)
------------------------------------------------------------------------
                                       2011                   Committee
                                     enacted    2012 budget   provision
------------------------------------------------------------------------
 Smith-Lever Sections 3(b) and        $293,911     $282,625     $259,200
 3(c)............................
Extension Services at 1994               4,312        5,321        3,600
 Institutions....................
Expanded Food and Nutrition             67,934       68,070       58,000
 Education Program...............
Farm Safety......................        4,853            0            0
Pest Management Program..........        9,918        9,938        8,400
New Technologies for Ag Extension        1,747        1,750        1,400
Facility Improvement Grants for         19,730       19,770       16,700
 1890 Institutions...............
Youth at Risk Program............        8,395        8,412        7,100
Youth Farm Safety Education and            485          486            0
 Extension.......................
Renewable Resources Extension Act        4,060        4,068        3,400
Tribal Extension Program.........        3,039        8,000        2,600
Sustainable Agriculture Program..        4,696        4,968        4,000
Rural Health and Safety Education        1,735        1,738        1,500
Cooperative Extension at 1890           42,592       42,677       36,000
 Institutions....................
Grants to Youth Organizations....        1,780            0        1,500
Food Animal Residue Avoidance              998            0        1,000
 Database........................
Women and Minorities in STEM               399          400            0
 Fields..........................
Federal Administration...........        8,565        8,548        6,800
                                  --------------------------------------
Total Extension Activities.......      479,132      466,788      411,200
------------------------------------------------------------------------

                         INTEGRATED ACTIVITIES

2011 Appropriation.............................              $36,926,000
2012 budget estimate...........................               29,874,000
Provided in the bill...........................                8,000,000
Comparison:
    2011 appropriation.........................              -28,926,000
    2012 budget estimate.......................              -21,874,000

                          COMMITTEE PROVISIONS

    For Integrated Activities, the Committee provides an 
appropriation of $8,000,000, of which $4,000,000 is provided 
for the regional pest management centers and activities and 
$4,000,000 for the organic transition program.

  Office of the Under Secretary for Marketing and Regulatory Programs

2011 appropriation....................................          $893,000
2012 budget estimate..................................           911,000
Provided in the bill..................................           760,000
Comparison:
    2011 appropriation................................          -133,000
    2012 budget estimate..............................          -151,000

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Marketing and 
Regulatory Programs, the Committee provides an appropriation of 
$760,000.

               Animal and Plant Health Inspection Service

                         SALARIES AND EXPENSES

2011 appropriation....................................      $863,270,000
2012 budget estimate..................................       832,706,000
Provided in the bill..................................       790,000,000
Comparison:
    2011 appropriation................................       -73,270,000
    2012 budget estimate..............................       -42,706,000

                          COMMITTEE PROVISIONS

    For the Animal and Plant Health Inspection Service, 
Salaries and Expenses, the Committee provides an appropriation 
of $790,000,000.
    Budget Restructure.--The Committee supports the request in 
the President's fiscal year 2012 budget for APHIS to manage 29 
budgetary line items instead of 45 line items. It is expected 
that this increased flexibility will allow APHIS to apply the 
greatest resources to the greatest threats or risks within a 
line item and to prioritize funds accordingly. The Committee 
reiterates its previous statements on the need to apply 
appropriated funds to the agency's historical core programs and 
mission area first before allocating resources to those less 
critical functions or initiatives.
    The following table reflects the amounts provided by the 
Committee in accordance with the newly proposed budget 
restructure:

------------------------------------------------------------------------
                       Program                               Amount
------------------------------------------------------------------------
Safeguarding and Emergency Preparedness/Response:
    Animal Health Technical Services.................        $32,500,000
    Aquatic Animal Health............................          3,000,000
    Avian Health.....................................         54,000,000
    Cattle Health....................................        100,000,000
    Equine, Cervid, & Small Ruminant Health..........         22,000,000
    National Veterinary Stockpile....................          2,300,000
    Swine Health.....................................         23,000,000
    Veterinary Biologics.............................         16,000,000
    Veterinary Diagnostics...........................         29,000,000
    Zoonotic Disease Management......................          9,000,000
                                                      ------------------
        Subtotal, Animal Health......................        290,800,000
    Agricultural Quarantine Inspection...............         25,500,000
    Cotton Pests.....................................         16,000,000
    Field Crop & Rangeland Ecosystem Pests...........          9,000,000
    Pest Detection...................................         26,000,000
    Plant Protection Methods Development.............         20,000,000
    Specialty Crop Pests.............................        147,000,000
    Tree & Wood Pests................................         52,000,000
                                                      ------------------
        Subtotal, Plant Health.......................        295,500,000
    Wildlife Damage Management.......................         72,500,000
    Wildlife Services Methods Development............         17,000,000
                                                      ------------------
        Subtotal, Wildlife Services..................         89,500,000
    Animal & Plant Health Regulatory Enforcement.....         14,500,000
    Biotechnology Regulatory Services................         17,000,000
                                                      ------------------
        Subtotal, Regulatory Services................         31,500,000
    Contingency Fund.................................          2,000,000
    Emergency Preparedness & Response................         17,000,000
                                                      ------------------
        Subtotal, Safeguarding and Emergency                  19,000,000
         Preparedness................................
Safe Trade & International Technical Assistance:
    Animal Agriculture Import/Export.................         12,000,000
    Overseas Technical and Trade Operations..........         20,000,000
                                                      ------------------
        Subtotal, Safe Trade & International                  32,000,000
         Technical Assistance........................
Animal Welfare:
    Animal Welfare...................................         22,000,000
    Horse Protection.................................            500,000
                                                      ------------------
        Subtotal, Animal Welfare.....................         22,500,000
Agency Management
    APHIS Information Technology Infrastructure......          4,200,000
    Physical/Operational Security....................          5,000,000
                                                      ------------------
        Subtotal, Agency Management..................          9,200,000
            Total, Salaries & Expenses...............        790,000,000
------------------------------------------------------------------------

    Animal Disease Traceability/National Animal Identification 
System.--The Committee directs APHIS to continue funding the 
new traceability system with funding in the base budget. 
Although APHIS states that a newly devised, mandatory 
traceability approach is ``low cost'', it must prove to the 
Committee and its stakeholders that the investment of public 
funds exceeding $150 million in this process since fiscal year 
2004 has not gone to waste. Additionally, this mandatory system 
must not create an excessive regulatory or financial burden on 
the livestock industry. APHIS is directed to provide the 
Committee with a status report on the progress of the system as 
proposed in the September 28, 2010, Comprehensive Report & 
Implementation Plan (amended January 28, 2011) by October 31, 
2011; April 1, 2012; and by August 1, 2012. The report should 
provide updates on the cost, schedule, and milestones. The 
report is to provide a summary of the reasons for changes in 
the cost, schedule and/or milestones and plans for corrective 
actions.
    Emerging Plant Pests.--The Committee expects the Secretary 
of Agriculture to continue to use the authority provided in 
this bill to transfer funds from the Commodity Credit 
Corporation (CCC) for the arrest and eradication of animal and 
plant pests and diseases that threaten American agriculture. By 
providing funds in this account, the Committee is enhancing, 
not replacing, the use of CCC funding for emergency outbreaks.
    Designated Qualified Person (DQP) Program.--The Committee 
directs APHIS to apply its resources towards the enforcement of 
the Horse Protection Act for the most egregious violators and/
or offenders of the Act. USDA should continue to use all 
options necessary to maintain industry self-regulation and an 
effective DQP program, including the use of more open and 
transparent communications with the Horse Industry 
Organizations (HIO). Even though APHIS did communicate with the 
HIOs at various points in the process leading up to the 
implementation of the mandatory penalty protocol, the Committee 
believes that APHIS would have been more effective in meeting 
the requirements of the Act and developed a more cooperative 
arrangement with the HIOs if the agency would have utilized the 
notice and comment rulemaking process. The Committee will 
mandate alternative action if it believes that APHIS has not 
exercised fairness and due process in the regulation of the 
industry.
    Animal Welfare.--The bill provides $22,000,000 for the 
Animal Welfare program, an amount above the level appropriated 
in fiscal year 2010, to ensure that minimum standards of care 
and treatment are provided for certain animals bred for 
commercial sale, used in research, transported, commercially, 
or exhibited to the public.
    Animal Welfare Act.--It has been brought to the Committee's 
attention that APHIS is using vital animal welfare resources to 
regulate the pets of extras in filmed entertainment. While the 
Animal Welfare Act's intent is to establish minimally 
acceptable standards in the treatment of animals in research, 
exhibition, transport, and by dealers, the law was not aimed at 
regulating companion animals used as extras in the background 
of movies and television productions. The Committee urges the 
agency to use the Secretary's discretionary authority to seek 
alternative means of meeting its statutory mandate, including 
the option of issuing exemptions or master exhibitor licenses 
to these pet owners.
    Pale or potato Cyst Nematode eradication.--The Committee 
encourages APHIS to continue funding the Pale Cyst Nematode 
eradication program above the President's budget request level 
in order to continue with successful efforts to eradicate this 
pest. If left untreated, this pest could spread, affecting 
crops other than potatoes.
    Equine disease control and eradication.--The Committee is 
aware of equine disease outbreaks that have occurred with 
increased frequency over the last several years. These 
outbreaks threaten the health and welfare of U.S. horses and 
the economic viability of the $102 billion horse industry. 
APHIS is encouraged to quickly respond to such threats through 
the use of its authorities. APHIS is directed to report to the 
Committee by July 1, 2011, on the estimated funds allocated for 
equine disease in fiscal years 2011 and 2012, as well as the 
range and degree of equine diseases currently existing within 
the U.S.
    Brown Marmorated Stink Bug.--The Committee believes that 
there is increasing evidence of significant damage to U.S. 
agricultural products, including tree fruit, from an expanding 
infestation of the brown marmorated stink bug. The Committee 
directs APHIS to act expeditiously to assist ARS, NIFA, and 
state partners to implement a control program as soon as the 
appropriate agents are evaluated and approved for release.
    Cotton pest.--This bill provides $15 million for the cotton 
pest program. The Committee applauds the cooperative efforts 
between APHIS, the U.S. cotton industry, and the participating 
state departments of agriculture in their successful efforts 
towards eradicating the boll weevil and pink bollworm from U.S. 
cotton production by 2013.
    Cost sharing with states and other cooperators.--The 
Committee directs APHIS to maximize the use of cost sharing 
agreements or matching requirements with states, territories, 
producers, foreign governments, non-governmental organizations, 
or any other recipient of services in order to reduce the cost 
burden on the agency.
    Sudden Oak Death.--The Committee expects APHIS to use an 
appropriate portion of the funding provided for sudden oak 
death (Phytopthora ramorum) 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 
and cooperate with the U.S. Forest Service to ensure funds are 
available for Phytopthora ramorum suppression efforts.
    Wildlife Damage Management.--The Committee provides 
$72,500,000 for Wildlife Damage Control, approximately $4 
million above the President's request. While receiving support 
from cooperators to conduct wildlife management operations, 
special emphasis should be placed on those areas such as 
livestock protection, cormorant control in the northeast, oral 
rabies vaccination, predator control, and other threats to 
agricultural industries.

                        BUILDINGS AND FACILITIES

2011 appropriation....................................        $3,529,000
2012 budget estimate..................................         4,712,000
Provided in the bill..................................         3,200,000
Comparison:
    2011 appropriation................................          -329,000
    2012 budget estimate..............................        -1,512,000

                          COMMITTEE PROVISIONS

    For Animal and Plant Health Inspection Service, Buildings 
and Facilities, the Committee provides an appropriation of 
$3,200,000.

                     Agricultural Marketing Service

                           MARKETING SERVICES

2011 appropriation....................................       $86,538,000
2012 budget estimate..................................        94,755,000
Provided in the bill..................................        77,500,000
Comparison:
    2011 appropriation................................        -9,038,000
    2012 budget estimate..............................       -17,255,000

                          COMMITTEE PROVISIONS

    For Marketing Services of the Agricultural Marketing 
Service, the Committee provides an appropriation of 
$77,500,000.
    Microbiological Data Program.--The Committee does not 
include funding for the Microbiological Data Program. While 
food safety is a vitally important part of successfully 
marketing produce and other agricultural products, other 
Federal and state public health agencies are better equipped to 
perform this function. In order for the Federal government to 
collect the necessary data for microbiological pathogens in 
produce, FDA, the Centers for Disease Control and Prevention, 
and/or the state departments of health and agriculture should 
collect such data under their purview. These organizations also 
may consider entering into reimbursable agreements with USDA's 
Agricultural Marketing Service to meet this need.
    Country Origin of Labeling.--The Committee accepts the 
reduction of $1.109 million for the Country of Origin Labeling 
Program as it relates to the completion of a data management 
system in 2011.
    National Organic Program.--The Committee encourages AMS to 
continue funding for the National Organic Program at the fiscal 
year 2011 level or above. The Department is reminded that the 
fiscal year 2010 appropriation provided this program with an 
increase of 82 percent over the fiscal year 2009 level.

                 LIMITATION ON ADMINISTRATIVE EXPENSES

2011 limitation.......................................     ($60,947,000)
2012 budget limitation................................      (62,101,000)
Provided in the bill..................................      (61,000,000)
Comparison:
    2011 limitation...................................           +53,000
    2012 budget limitation............................        -1,101,000

                          COMMITTEE PROVISIONS

    For a Limitation on Administrative Expenses of the 
Agricultural Marketing Service, the Committee provides 
$61,000,000.

          FUNDS FOR STRENGTHENING MARKETS, INCOME, AND SUPPLY

                              (SECTION 32)

                     MARKETING AGREEMENT AND ORDERS

2011 appropriation....................................     ($20,056,000)
2012 budget estimate..................................      (20,056,000)
Provided in the bill..................................      (20,056,000)
Comparison:
    2011 appropriation................................               ---
    2012 budget estimate..............................               ---

                          COMMITTEE PROVISIONS

    For the Marketing Agreements and Orders Program, the 
Committee provides a transfer from section 32 funds of 
$20,056,000.

    Funds for Strengthening Markets, Income, and Supply (Section 32)

                     MARKETING AGREEMENT AND ORDERS

    The following table reflects the status of this fund for 
fiscal years 2011 through 2012:

ESTIMATED TOTAL FUNDS AVAILABLE AND BALANCE CARRIED FORWARD FISCAL YEARS
                                2011-2012
                         (Dollars in Thousands)
------------------------------------------------------------------------
                                    FY 2011  estimate  FY 2012  estimate
------------------------------------------------------------------------
Appropriation (30% of Customs              $6,605,946         $7,947,046
 Receipts)........................
Less Transfers:
    Food and Nutrition Service....         -5,277,574         -6,644,834
    Commerce Department...........            -68,231            -71,212
                                   -------------------------------------
        Total, Transfers..........         -5,345,805         -6,716,046
Budget Authority..................          1,260,141          1,231,000
Unobligated Balance Available,                122,127            167,268
 Start of Year....................
Unavailable for Obligations.......           -167,268           -114,478
Transfer of Prior Year Funds to              -117,000           -167,268
 FNS..............................
                                   -------------------------------------
Available for Obligation..........          1,098,000          1,116,522
Less Obligations:
    Child Nutrition Programs                  307,900            465,000
     (Entitlement Commodities)....
        12 Percent Commodity Floor                  0            120,000
         Requirement..............
    Cotton, Soybean, Rice and                 390,000                  0
     Sweet Potato Disaster Program
    State Option Contract.........              5,000              5,000
    Removal of Defective                        2,500              2,500
     Commodities..................
    Emergency Surplus Removal.....              7,600                  0
    Disaster Relief...............              5,000              5,000
    Additional Fruits, Vegetables,            158,300            206,000
     and Nuts Purchases...........
    Fresh Fruit and Vegetable                  33,000             20,000
     Program......................
    Laboratory Testing of Ground                1,452                  0
     Beef.........................
    Accounting Adjustment.........                800                  0
    Estimated Future Needs........            139,282            196,713
                                   -------------------------------------
        Total, Commodity                    1,050,834          1,020,813
         Procurement..............
Administrative Funds:
    Commodity Purchase Support....             27,110             27,731
    Marketing Agreements and                   20,056             20,056
     Orders.......................
                                   -------------------------------------
        Total, Administrative                  47,166             47,787
         Funds....................
                                   -------------------------------------
Total Obligations.................          1,098,000          1,068,000
                                   -------------------------------------
Unobligated Balance Not Available,            167,268            114,478
 End of Year......................
------------------------------------------------------------------------

                   PAYMENTS TO STATES AND POSSESSIONS

2011 appropriation....................................        $1,331,000
2012 budget estimate..................................         2,634,000
Provided in the bill..................................         1,331,000
Comparison:
    2011 appropriation................................               ---
    2012 budget estimate..............................        -1,303,000

                          COMMITTEE PROVISIONS

    For Payments to States and Possessions, the Committee 
provides an appropriation of $1,331,000.

        Grain Inspection, Packers and Stockyards Administration

                         SALARIES AND EXPENSES

2011 appropriation....................................       $40,261,000
2012 budget estimate..................................        44,192,000
Provided in the bill..................................        37,000,000
Comparison:
    2011 appropriation................................        -3,261,000
    2012 budget estimate..............................        -7,192,000

                          COMMITTEE PROVISIONS

    For Grain Inspection, Packers and Stockyards 
Administration, the Committee provides $37,000,000.
    GIPSA Marketing Rules.--The Committee is deeply concerned 
that GIPSA, while well intentioned, misinterpreted the intent 
of Congress when the agency proposed rules regulating livestock 
marketing practices as required by Section 11006 of Title XI of 
the Food, Conservation, and Energy Act of 2008 (2008 Farm 
Bill). Specifically, the Committee believes that the breadth of 
GIPSA's proposed rule at 75 FR 35338 unnecessarily extends 
beyond requirements of the 2008 Farm Bill. In addition, the 
proposed rule underestimates the future costs of implementing 
this rule. The bill includes language limiting funding for 
further action on the proposed rule at 75 FR 35338 until 
Congress takes additional legislative action to amend the 
Packers and Stockyards Act in the next Farm Bill.
    The Committee also is concerned about the appropriateness 
of USDA's actions in this matter with regard to the 
requirements of the Administrative Procedure Act. Although the 
Department eventually complied with numerous requests for an 
extension of the comment period until November 22, 2010, it did 
so reluctantly and only after numerous members of the House of 
Representatives and the Senate submitted requests for an 
extension, noting the absence of a meaningful economic 
analysis. The Committee finds troubling the fact that the 
Department allowed the comment period to close before the last 
joint Department of Agriculture-Department of Justice 
Agriculture and Antitrust Workshop was held, possibly limiting 
public comment. Finally, the Committee is gravely concerned 
about the propriety of the Department publishing its ``Farm 
Bill Regulations--Misconceptions and Explanations'' document, 
which was posted on the GIPSA website more than a month after 
the proposed rule appeared in the Federal Register. This 
posting was an unprecedented action by USDA and was published 
in response to criticisms of the proposed regulations the 
Department received at a hearing. By all indications, the 
Department took a particular position and advocated in favor of 
the proposed regulations. If so, the Department may be 
discouraging interested persons from participating in the rule 
making process, and in that regard, the Committee questions 
whether such actions are compliant with the Administrative 
Procedure Act.
    The Committee directs the Department to provide by June 10, 
2011, all legal opinions and memos prepared by the Office of 
General Counsel to the Secretary or any other person or agency 
of the Department regarding this matter.

        LIMITATION ON INSPECTION AND WEIGHING SERVICES EXPENSES

2011 limitation.......................................     ($47,500,000)
2012 budget limitation................................      (50,000,000)
Provided in the bill..................................      (47,500,000)
Comparison:
    2011 limitation...................................               ---
    2012 budget limitation............................        -2,500,000

                          COMMITTEE PROVISIONS

    The Committee includes a limitation on inspection and 
weighing services expenses of $47,500,000. The bill includes 
authority to exceed by 10 percent the limitation on inspection 
and weighing services with notification to the Committees on 
Appropriations.

             Office of the Under Secretary for Food Safety

2011 appropriation....................................          $811,000
2012 budget estimate..................................           828,000
Provided in the bill..................................           689,000
Comparison:
    2011 appropriation................................          -122,000
    2012 budget estimate..............................          -139,000

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Food Safety, the 
Committee provides an appropriation of $689,000.

                   Food Safety and Inspection Service

2011 appropriation...................................     $1,006,503,000
2012 budget estimate.................................      1,011,393,000
Provided in the bill.................................        972,028,000
Comparison:
    2011 appropriation...............................        -34,475,000
    2012 budget estimate.............................        -39,365,000

                          COMMITTEE PROVISIONS

    For the Food Safety and Inspection Service, the Committee 
provides an appropriation of $972,028,000.
    While the Committee recommendation is $34,475,000 below the 
fiscal year 2011 Continuing Resolution level, the Committee 
believes that adequate resources will be available to FSIS to 
carry out its statutory mandate of meat, poultry and egg 
products inspection and corresponding microbiological sampling 
activities. The recommendation includes nearly $20,000,000 in 
efficiencies and reductions as requested in the budget 
including the program authorized by Section 11016 of P.L. 110-
246. The Committee understands that the funding level may force 
FSIS to make some choices about the staffing levels that are 
currently maintained at district and headquarters offices, but 
the funding level ensures that inspection and sampling 
activities will be carried out uninterrupted.
    HACCP Based Inspection Model Project.--FSIS has a pilot 
inspection program for poultry slaughter inspection called the 
Hazard Analysis and Critical Control Point Based Inspection 
Model Project (HIMP) that is operating in 20 facilities. After 
10 years of data collection and several formal science-based 
studies, FSIS informed the Committee the HIMP model is not only 
a more efficient means of ensuring the safe and humane 
slaughter of young chickens (broilers) than the current model, 
but that this model reduces incidence of salmonella when 
compared to non-HIMP broiler establishments. By transitioning 
to this more effective and more efficient poultry slaughter 
model, FSIS would improve food safety, reduce foodborne 
illness, and deliver consumer protections by implementing this 
system industry-wide. The Committee encourages USDA to 
eliminate any barriers to the expansion of this safer and 
science-based system.
    Humane Methods of Slaughter.--The Committee directs FSIS, 
to the maximum extent practicable, to ensure that the 
inspectors hired to improve enforcement of the Humane Methods 
of Slaughter Act are dedicated to overseeing compliance with 
humane handling rules.
    E. coli serotypes.--The Committee is aware that the latest 
foodborne illness estimates from the Centers for Disease 
Control and Prevention indicate that more than 113,000 
Americans become sick from E. coli serotypes other than E. coli 
0157:H7. E. coli 0157:H7 is already considered an adulterant by 
FSIS, and the Committee urges the Administration to take the 
necessary steps against these pathogens to protect the public 
health.

                        FARM ASSISTANCE PROGRAMS

    Office of the Under Secretary for Farm and Foreign Agricultural 
                                Services

2011 appropriation....................................          $893,000
2012 budget estimate..................................           911,000
Provided in the bill..................................           760,000
Comparison:
    2011 appropriation................................          -133,000
    2012 budget estimate..............................          -151,000

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Farm and Foreign 
Agricultural Services, the Committee provides an appropriation 
of $760,000.

                          Farm Service Agency

                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFERS OF FUNDS)

                                                                             Transfer from
                                                          Appropriation      program accts.     Total, FSA, S&E

2011 appropriation....................................     $1,208,290,000     ($308,137,000)    ($1,516,427,000)
2012 budget estimate\1\...............................      1,397,065,000      (316,340,000)     (1,713,405,000)
Provided in the bill..................................      1,176,500,000      (263,470,000)     (1,439,970,000)
Comparison:
    2011 appropriation................................        -31,790,000      (-44,667,000)       (-76,457,000)
    2012 budget estimate..............................       -220,565,000      (-52,870,000)      (-273,435,000)

\1\Includes $40,000,000 legislative proposal.

                          COMMITTEE PROVISIONS

    For Salaries and Expenses of the Farm Service Agency (FSA), 
the Committee provides an appropriation of $1,176,500,000 and 
transfers from other accounts of $263,470,000, for a total 
program level of $1,439,970,000.
    The Committee recommends that funds be allocated to 
implement the National Agriculture Imagery Program, with images 
collected nationally on an annual basis, in order to provide 
the maximum benefit for USDA programs and other users of these 
images. The Committee encourages the Secretary to utilize all 
appropriate imagery sources to meet programmatic requirements. 
The Committee notes that some private companies utilize the 
images that are collected through the National Agriculture 
Imagery Program. Given the current fiscal environment, FSA is 
encouraged to work with these companies to determine if a fee 
could be paid to FSA for the use of these images.
    FSA IT.--The Committee does not approve reprogramming the 
$23,600,000 from MIDAS. In providing the fiscal year 2011 
funding level, the Committee expected that $49,500,000 would be 
spent on MIDAS in 2011. The Committee has acknowledged the 
tenuous stability of the system and directs the agency to 
provide a briefing to the Committee by June 10, 2011, on this 
issue.
    CCC Funds to FSA.--The Committee has learned that, through 
the Commodity Credit Corporation, an additional $20 million has 
been made available to the agency. The Committee directs the 
agency to report by July 1, 2011, on its plans for the use of 
those funds.

                         STATE MEDIATION GRANTS

2011 appropriation....................................        $4,177,000
2012 budget estimate..................................         4,369,000
Provided in the bill..................................         3,550,000
Comparison:
    2011 appropriation................................          -627,000
    2012 budget estimate..............................          -819,000

                          COMMITTEE PROVISIONS

    For State Mediation Grants, the Committee provides an 
appropriation of $3,550,000.

               GRASSROOTS SOURCE WATER PROTECTION PROGRAM

2011 appropriation....................................        $4,241,000
2012 budget estimate..................................                 0
Provided in the bill..................................         3,605,000
Comparison:
    2011 appropriation................................          -636,000
    2012 budget estimate..............................        +3,605,000

                          COMMITTEE PROVISIONS

    For the Grassroots Source Water Protection Program, the 
Committee provides an appropriation of $3,605,000.

                        DAIRY INDEMNITY PROGRAM

                     (INCLUDING TRANSFER OF FUNDS)

2011 appropriation....................................       \1\$876,000
2012 budget estimate..................................        \1\100,000
Provided in the bill..................................        \1\100,000
Comparison:
    2011 appropriation................................          -776,000
    2012 budget estimate..............................               ---

\1\Current indefinite appropriation.

                          COMMITTEE PROVISIONS

    For the Dairy Indemnity Program, the Committee provides an 
appropriation of such sums as may be necessary (estimated to be 
$100,000 in the President's fiscal year 2012 budget request).

           AGRICULTURAL CREDIT INSURANCE FUND PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

                         ESTIMATED LOAN LEVELS

2011 loan level......................................     $4,651,283,000
2012 budget estimate.................................      4,747,090,000
Provided in the bill.................................      4,787,090,000
Comparison:
    2011 loan level..................................       +135,807,000
    2012 budget estimate.............................        +40,000,000

                          COMMITTEE PROVISIONS

    For the Agricultural Credit Insurance Fund program account, 
the Committee provides a loan level of $4,787,090,000.
    The following table reflects the loan levels for the 
Agricultural Credit Insurance Fund program account:

                AGRICULTURE CREDIT PROGRAMS--LOAN LEVELS

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                      FY 2012        Committee
                                                                  FY 2011  level     estimate       provisions
----------------------------------------------------------------------------------------------------------------
Farm loan programs:
  Farm ownership:
    Direct......................................................        $475,000        $475,000        $475,000
    Guaranteed..................................................       1,500,000       1,500,000       1,500,000
  Farm operating:
    Direct......................................................         950,000       1,050,090       1,050,090
    Unsubsidized guaranteed.....................................       1,500,000       1,500,000       1,500,000
    Subsidized guaranteed.......................................         122,343               0               0
Indian tribe land acquisition...................................           3,940           2,000           2,000
Conservation:
    Guaranteed..................................................               0         150,000         150,000
Indian highly fractionated land.................................               0          10,000          10,000
Boll weevil eradication.........................................         100,000          60,000         100,000
                                                                 -----------------------------------------------
      Total.....................................................       4,651,283       4,747,090       4,787,090
----------------------------------------------------------------------------------------------------------------

       ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS

                                                    Direct loan     Guaranteed                   Administrative
                                                      subsidy      loan subsidy   Grants/other      expenses

2011 appropriation..............................     $90,229,000     $57,455,000             0      $312,881,000
2012 budget estimate............................      82,113,000      26,100,000    $2,693,000       321,093,000
Provided in the bill............................      82,113,000      26,100,000       193,000       268,634,000
Comparison:
    2011 appropriation..........................      -8,309,000     -31,355,000      +193,000       -44,247,000
    2012 budget estimate........................             ---             ---    -2,500,000       -52,459,000

    The following table reflects the costs of loan programs 
under credit reform:

                                AGRICULTURE CREDIT PROGRAMS--SUBSIDIES AND GRANTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 FY 2011           FY 2012          Committee
                                                                estimate          estimate         provisions
----------------------------------------------------------------------------------------------------------------
Farm loan subsidies:
  Farm ownership:
    Direct................................................           $32,804           $22,800           $22,800
    Guaranteed............................................             5,689                 0                 0
                                                           -----------------------------------------------------
      Subtotal............................................            38,493            22,800            22,800
                                                           =====================================================
  Farm operating:
    Direct................................................            57,425            59,120            59,120
    Guaranteed unsubsidized...............................            34,880            26,100            26,100
    Guaranteed subsidized.................................            16,886                 0                 0
                                                           -----------------------------------------------------
      Subtotal............................................           109,191            85,220            85,220
                                                           =====================================================
Indian highly fractionated land...........................                 0               193               193
                                                           -----------------------------------------------------
    Total, Farm loan subsidies............................           147,684           108,213           108,213
  Individual development accounts.........................                 0             2,500                 0
                                                           =====================================================
      Total...............................................           147,684           110,713           108,213
ACIF expenses:
  Salaries and expenses...................................           304,977           313,173           260,730
  Administrative expenses.................................             7,904             7,920             7,904
                                                           -----------------------------------------------------
    Total, ACIF expenses..................................           312,881           321,093           268,634
----------------------------------------------------------------------------------------------------------------

                         Risk Management Agency

2011 appropriation....................................       $78,842,000
2012 budget estimate..................................        82,325,000
Provided in the bill..................................        68,016,000
Comparison:
    2011 appropriation................................       -10,826,000
    2012 budget estimate..............................       -14,309,000

                          COMMITTEE PROVISIONS

    For the Risk Management Agency, the Committee provides an 
appropriation of $68,016,000.

                              CORPORATIONS

                Federal Crop Insurance Corporation Fund

2011 appropriation.............................        \1\$7,613,232,000
2012 budget estimate...........................         \1\3,142,375,000
Provided in the bill...........................         \1\3,142,375,000
Comparison:
    2011 appropriation.........................           -4,470,857,000
    2012 budget estimate.......................                      ---

\1\Current indefinite appropriation.

                          COMMITTEE PROVISIONS

    For the Federal Crop Insurance Corporation Fund, the 
Committee provides an appropriation of such sums as may be 
necessary (estimated to be $3,142,375,000 in the President's 
fiscal year 2012 budget request).

                   Commodity Credit Corporation Fund

                 REIMBURSEMENT FOR NET REALIZED LOSSES

                   (INCLUDING TRANSFERS OF FUNDS)\1\

2011 appropriation.............................          $13,925,575,000
2012 budget estimate...........................           14,071,000,000
Provided in the bill...........................           14,071,000,000
Comparison:
    2011 appropriation.........................             +145,425,000
    2012 budget estimate.......................                      ---

1Current indefinite appropriation.

                          COMMITTEE PROVISIONS

    For Reimbursement for Net Realized Losses to the Commodity 
Credit Corporation, the Committee provides such sums as may be 
necessary to reimburse for net realized losses sustained, but 
not previously reimbursed (estimated to be $14,071,000,000 in 
the President's fiscal year 2012 budget request).

                       HAZARDOUS WASTE MANAGEMENT

                        (LIMITATION ON EXPENSES)

2011 limitation................................             ($5,000,000)
2012 budget estimate...........................              (5,000,000)
Provided in the bill...........................              (5,000,000)
Comparison:
    2011 limitation............................                      ---
    2012 budget estimate.......................                      ---

                          COMMITTEE PROVISIONS

    For CCC Hazardous Waste Management, the Committee provides 
a limitation of $5,000,000.

                                TITLE II

                         CONSERVATION PROGRAMS

  Office of the Under Secretary for Natural Resources and Environment

2011 appropriation....................................          $893,000
2012 budget estimate..................................           911,000
Provided in the bill..................................           760,000
Comparison:
    2011 appropriation................................          -133,000
    2012 budget estimate..............................          -151,000

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Natural Resources 
and Environment, the Committee provides an appropriation of 
$760,000.

                 Natural Resources Conservation Service

                        CONSERVATION OPERATIONS

2011 appropriation....................................      $870,503,000
2012 budget estimate..................................       898,647,000
Provided in the bill..................................       770,956,000
Comparison:
    2011 appropriation................................           -99,547
    2012 budget estimate..............................          -127,691

                          COMMITTEE PROVISIONS

    For Conservation Operations, the Committee provides an 
appropriation of $770,956,000.
    The Committee provides $9,300,000 for the Snow Survey and 
Water Forecasting program; $9,400,000 for the Plant Materials 
Centers; and $80,000,000 for the Soil Surveys program. The 
Committee provides $672,256,000 for conservation technical 
assistance. The Committee provides an increase of $5,000,000 
for the Conservation Effects Assessment Project and an increase 
of $5,000,000 for the Conservation Delivery Streamlining 
Initiative. The Committee does not concur with the proposed 
increase in funding for the Strategic Watershed Action Teams. 
The Committee concurs with the agency that a set aside is not 
necessary for the Grazing Lands Conservation Initiative as 
grazing land conservation needs are adequately addressed 
through the Conservation Operations account.
    National Marine Sanctuaries.--The Committee urges the 
agency to continue the collaborative agreement with the Office 
of National Marine Sanctuaries to address agricultural sources 
of runoff, such as sediments, nitrates and pesticides.

                    WATERSHED REHABILITATION PROGRAM

2011 appropriation....................................       $17,964,000
2012 budget estimate..................................               ---
Provided in the bill..................................        15,000,000
Comparison:
    2011 appropriation................................        -2,964,000
    2012 budget estimate..............................       +15,000,000

                          COMMITTEE PROVISIONS

    For the Watershed Rehabilitation Program, the Committee 
provides an appropriation of $15,000,000.

                               TITLE III

                       RURAL DEVELOPMENT PROGRAMS

          Office of the Under Secretary for Rural Development

2011 appropriation....................................          $893,000
2012 budget estimate..................................           911,000
Provided in the bill..................................           760,000
Comparison:
    2011 appropriation................................          -133,000
    2012 budget estimate..............................          -151,000

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Rural 
Development, the Committee provides an appropriation of 
$760,000.
    Regional Innovation Initiative.--The fiscal year 2012 
budget request reproposed a Regional Innovation Initiative. 
Secretary Vilsack has said the purpose of the initiative is to 
take a different direction in rural development based on five 
pillars: rural broadband, biofuels and biobased products, 
linking local production with local consumption of farm 
products, ecosystem markets to pay farmers for storing carbon, 
and forest restoration and private land conservation. The 
Committee is unable to provide any funding or authorization for 
the initiative as requests for additional information on the 
specific purpose, need, and plans for the initiative have gone 
unanswered. However, the Committee does provide funding for the 
Rural Community Development Initiative (RCDI) under the 
Community Facility Program Account. The Committee directs the 
Department not to spend any RCDI funding on the initiative 
until it receives approval from the Committee.
    Threat to Broadband Infrastructure.--In April 2011, the 
Committee was made aware of national security concerns 
regarding the introduction of potentially harmful technology 
into the U.S. broadband infrastructure through the Department's 
broadband program. The Committee directs the Department to 
fully investigate these concerns, work with Federal partners to 
determine the most appropriate response, and report to the 
Committee regarding this issue by September 1, 2011.

                Rural Development Salaries and Expenses

                     (INCLUDING TRANSFERS OF FUNDS)

                                                                                                    Committee
                                                            FY 2011 estimate  FY 2012 estimate     provisions

Appropriations............................................      $191,603,000      $234,301,000      $161,011,000
Transfer from:
    Rural Housing Insurance Fund Program Account..........       453,474,000       411,779,000       400,000,000
    Rural Development Loan Fund Program Account...........         4,931,000         4,941,000         3,500,000
    Rural Electrification and Telecommunications Loan             38,297,000        39,959,000        30,000,000
     Program Account......................................
                                                           -----------------------------------------------------
      Total, RD Salaries and Expenses.....................       688,305,000       690,980,000       594,511,000

                          COMMITTEE PROVISIONS

    For Salaries and Expenses of the Rural Development mission 
area, the Committee provides an appropriation of $161,011,000.

                         Rural Housing Service

              RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

----------------------------------------------------------------------------------------------------------------
                                                                                                 Administrative
                                                             Loan level       Subsidy level         expenses
----------------------------------------------------------------------------------------------------------------
2011 appropriation.....................................    $25,292,428,000       $111,855,000       $453,474,000
2012 budget estimate...................................     24,333,940,000         51,814,000        411,779,000
Provided in the bill...................................     24,922,585,000         66,250,000        400,000,000
Comparison:
    2011 appropriation.................................       -369,843,000        -45,605,000        -53,474,000
    2012 budget estimate...............................       +588,645,000        +14,436,000        -11,779,000
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Rural Housing Insurance Fund program account, the 
Committee provides a loan level of $24,922,585,000.
    The following table reflects the loan levels for the Rural 
Housing Insurance Fund program account:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                           FY 2011 level     FY 2012 estimate      provisions
----------------------------------------------------------------------------------------------------------------
Rural Housing Insurance Fund Loans
    Single family housing (sec. 502):
        Direct.........................................         $1,121,406           $211,416           $845,666
        Unsubsidized guaranteed........................         24,000,000         24,000,000         24,000,000
    Housing repair (sec. 504)..........................             23,360                  0                  0
    Rental housing (sec. 515)..........................             69,512             95,236             58,617
     Multi-family guaranteed (sec. 538)................             30,960                  0                  0
    Housing site development (sec. 524)................              5,052                  0                  0
    Credit sales of acquired property..................             11,448                  0                  0
    Self-help housing land development fund............              4,966                  0                  0
    Farm labor housing.................................             25,724             27,288             18,302
                                                        --------------------------------------------------------
      Total, Loan authorization........................         25,292,428         24,333,940         24,922,585
----------------------------------------------------------------------------------------------------------------

    The following table reflects the costs of loan programs 
under credit reform:

       ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                           FY 2011 level     FY 2012 estimate      provisions
----------------------------------------------------------------------------------------------------------------
Rural Housing Insurance Fund Program Account (loan
 subsidies and grants):
    Single family housing (sec. 502):
        Direct.........................................            $70,060            $10,000            $40,000
        Unsubsidized guaranteed........................                  0                  0                  0
    Housing repair (sec. 504)..........................              4,413                  0                  0
    Rental housing (sec. 515)..........................             23,399             32,495             20,000
    Multi-family guaranteed (sec. 538).................              2,994                  0                  0
    Site development loans (sec. 524)..................                293                  0                  0
    Credit sales of acquired property..................                555                  0                  0
    Self-help housing land development fund............                288                  0                  0
    Farm labor housing.................................              9,853              9,319              6,250
                                                        --------------------------------------------------------
      Total, Loan subsidies............................            102,002             51,814             66,250
                                                        ========================================================
    Farm labor housing grants..........................              9,854              9,873              6,250
RHIF expenses:
    Administrative expenses............................            453,474            411,779            400,000
----------------------------------------------------------------------------------------------------------------

                       RENTAL ASSISTANCE PROGRAM

2011 appropriation....................................      $953,724,000
2012 budget estimate..................................       906,653,000
Provided in the bill..................................       890,000,000
Comparison:
    2011 appropriation................................       -63,724,000
    2012 budget estimate..............................       -16,653,000

                          COMMITTEE PROVISIONS

    For the Rental Assistance Program, the Committee provides a 
program level of $890,000,000.

           MULTIFAMILY HOUSING REVITALIZATION PROGRAM ACCOUNT

2011 appropriation....................................       $29,940,000
2012 budget estimate..................................        16,000,000
Provided in the bill..................................        11,000,000
Comparison:
    2011 appropriation................................       -18,940,000
    2012 budget estimate..............................        -5,000,000

    For the Multifamily Housing Revitalization Program Account, 
the Committee provides an appropriation of $11,000,000, which 
is for the rural housing voucher program.

                  MUTUAL AND SELF-HELP HOUSING GRANTS

2011 appropriation....................................       $36,926,000
2012 budget estimate..................................               ---
Provided in the bill..................................        22,000,000
Comparison:
    2011 appropriation................................       -14,926,000
    2012 budget estimate..............................       +22,000,000

                          COMMITTEE PROVISIONS

    For Mutual and Self-Help Housing Grants, the Committee 
provides an appropriation of $22,000,000.

                    RURAL HOUSING ASSISTANCE GRANTS

2011 appropriation....................................       $40,319,000
2012 budget estimate..................................        11,520,000
Provided in the bill..................................        32,000,000
Comparison:
    2011 appropriation................................        -8,319,000
    2012 budget estimate..............................       +20,480,000

                          COMMITTEE PROVISIONS

    For the Rural Housing Assistance Grants program, the 
Committee provides an appropriation of $32,000,000.

               RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)

2011 appropriation....................................       $41,379,000
2012 budget estimate..................................        38,400,000
Provided in the bill..................................        18,000,000
Comparison:
    2011 appropriation................................       -23,379,000
    2012 budget estimate..............................       -20,400,000

                          COMMITTEE PROVISIONS

    For the Rural Community Facilities Program Account, the 
Committee provides an appropriation of $18,000,000.
    The following table provides the Committee's 
recommendations as compared to the budget request:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                 FY 2012           Committee
                                                           FY 2011  level       estimated          provisions
----------------------------------------------------------------------------------------------------------------
Loan levels:
    Community facility direct loans....................         ($290,526)       ($1,000,000)       ($1,000,000)
    Community facility guaranteed loans................          (167,747)                (0)          (105,708)
Subsidy and grants:
    Community facility direct loans....................              3,856                  0                  0
    Community facility guaranteed loans................              6,613                  0              5,000
    Community facility grants..........................             14,970             30,000             10,000
    Rural Community Development Initiative.............              4,990              8,400              3,000
    Economic Impact Initiative.........................              6,986                  0                  0
    Tribal college grants..............................              3,964                  0                  0
                                                        --------------------------------------------------------
          Total, Rural Community Facilities Program                 41,379             38,400             18,000
           subsidy and grants..........................
----------------------------------------------------------------------------------------------------------------

    The following programs are included in bill language for 
the Rural Community Facilities Program: $3,000,000 is for the 
Rural Community Development Initiative.

                   Rural Business-Cooperative Service

                     RURAL BUSINESS PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)

2011 appropriation....................................       $85,280,000
2012 budget estimate..................................        89,857,000
Provided in the bill..................................        64,500,000
Comparison:
    2011 appropriation................................       -20,780,000
    2012 budget estimate..............................       -25,357,000

                          COMMITTEE PROVISIONS

    For the Rural Business Program Account, the Committee 
provides an appropriation of $64,500,000.
    The following table provides the Committee's 
recommendations as compared to the budget request:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                 FY 2012           Committee
                                                           FY 2011  level       estimated          provisions
----------------------------------------------------------------------------------------------------------------
Loan level:
    Business and industry guaranteed loans.............         ($889,111)         ($822,900)         ($626,959)
Subsidy and grants:
    Business and industry guaranteed loans.............             44,899             52,500             40,000
    Rural business enterprise grants...................             34,930             29,874             20,000
    Rural business opportunity grants..................              2,478              7,483              2,250
    Delta regional authority...........................              2,973                  0              2,250
                                                        --------------------------------------------------------
          Total, Rural Business Program subsidy and                 85,280             89,857             64,500
           grants......................................
----------------------------------------------------------------------------------------------------------------

    The following programs are included in bill language for 
the Rural Business Program account: $500,000 for rural 
transportation technical assistance; and $3,400,000 for 
Federally Recognized Native American Tribes, of which $250,000 
is for transportation technical assistance.

              RURAL DEVELOPMENT LOAN FUND PROGRAM ACCOUNT

----------------------------------------------------------------------------------------------------------------
                                                                                                  Administrative
                                                                    Loan level     Subsidy level     expenses
----------------------------------------------------------------------------------------------------------------
2011 appropriation..............................................     $19,181,000      $7,385,000      $4,931,000
2012 budget estimate............................................      36,376,000      12,324,000       4,941,000
Provided in the bill............................................      14,758,000       5,000,000       3,500,000
Comparison:
    2011 appropriation..........................................      -4,423,000      -2,385,000      -1,431,000
    2012 budget estimate........................................     -21,618,000      -7,324,000      -1,441,000
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Rural Development Loan Fund program account, the 
Committee provides for a loan level of $14,758,000.
    For the loan subsidy, the Committee provides an 
appropriation of $5,000,000.
    In addition, the Committee provides $3,500,000 for 
administrative expenses.

            RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT

                    (INCLUDING RESCISSION OF FUNDS)

------------------------------------------------------------------------
                                                            Loan level
------------------------------------------------------------------------
2011 appropriation......................................     $33,077,000
2012 budget estimate....................................      33,077,000
Provided in the bill....................................      33,077,000
Comparison:
    2011 appropriation..................................             ---
    2012 budget estimate................................             ---
------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Rural Economic Development Loans Program Account, 
the Committee provides for a loan level of $33,077,000.

                  RURAL COOPERATIVE DEVELOPMENT GRANTS

2011 appropriation....................................       $30,193,000
2012 budget estimate..................................        35,854,000
Provided in the bill..................................        22,500,000
Comparison:
    2011 appropriation................................        -7,693,000
    2012 budget estimate..............................       -13,354,000

                          COMMITTEE PROVISIONS

    For Rural Cooperative Development Grants, the Committee 
provides an appropriation of $22,500,000.
    The Committee provides a total of $22,500,000 for the Rural 
Cooperative Development Grant program, of which: $2,000,000 is 
provided for a cooperative agreement for the Appropriate 
Technology Transfer for Rural Areas program; $3,000,000 is for 
cooperatives or associations of cooperatives whose primary 
focus is to provide assistance to small, minority producers; 
and $12,500,000 is for the value-added agricultural product 
market development grant program.

                  RENEWABLE ENERGY FOR AMERICA PROGRAM

2011 appropriation....................................        $4,990,000
2012 budget estimate..................................        36,788,000
Provided in the bill..................................         1,300,000
Comparison:
    2011 appropriation................................        -3,690,000
    2012 budget estimate..............................       -35,488,000

                          COMMITTEE PROVISIONS

    For the Renewable Energy for America Program, the Committee 
provides $1,300,000 to make loans and grants as authorized by 
section 9007 of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8107).

                        Rural Utilities Service

             RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)

2011 appropriation....................................      $527,944,000
2012 budget estimate..................................       488,978,000
Provided in the bill..................................       500,000,000
Comparison:
    2011 appropriation................................       -27,944,000
    2012 budget estimate..............................       +11,022,000

                          COMMITTEE PROVISIONS

    For the Rural Water and Waste Disposal Program Account, the 
Committee provides an appropriation of $500,000,000.
    The following table provides the Committee's 
recommendations as compared to the budget request:

                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                    Committee
                                                               FY11 level        FY12 level        provisions
----------------------------------------------------------------------------------------------------------------
Loan levels:
    Water and waste direct loans..........................        ($898,263)        ($770,000)        ($730,689)
    Water and waste guaranteed loans......................          (75,000)          (12,000)                 0
Subsidy and Grants:
    Direct Subsidy........................................            76,917            73,788            70,000
    Guaranteed Subsidy....................................                 0               190                 0
    Water and Waste Revolving Fund........................               497               497               497
    Water Well System Grants..............................               993               993               993
    Grants for the Colonias and AK/HI.....................            68,600            65,000            65,000
    Water and Waste Technical Assistance Grants...........            19,110            19,000            19,000
    Circuit Rider Program.................................            14,700            14,000            14,000
    Solid Waste Management Grants.........................             3,434             4,000             3,400
    High Energy Cost Grants...............................            11,976                 0                 0
    Water and Waste Disposal Grants.......................           331,717           311,510           327,110
                                                           -----------------------------------------------------
        Total Subsidies and Grants........................           527,944           488,978           500,000
----------------------------------------------------------------------------------------------------------------

   RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

                                                                                                  Administrative
                                                                   Loan level      Subsidy level     expenses

2011 appropriation............................................    $7,790,000,000        $699,000     $38,297,000
2012 budget estimate..........................................     6,790,000,000               0      39,959,000
Provided in the bill..........................................     7,290,000,000               0      30,000,000
Comparison:
    2011 appropriation........................................      -500,000,000        -699,000      -8,297,000
    2012 budget estimate......................................      +500,000,000             ---      -9,959,000

                          COMMITTEE PROVISIONS

    For the Rural Electrification and Telecommunications Loans 
Program Account, the Committee provides a loan level of 
$7,290,000,000. In addition, the Committee provides $30,000,000 
for administrative expenses.
    The Committee does not concur with the proposal to limit 
the use of rural electrification loans and instead expects USDA 
to work with borrowers to finance the most reliable and cost-
effective electricity source that meets their needs.
    Baseload Generation Report.--The Committee directs USDA to 
provide a report on baseload generation needs in rural America 
and to work with interested parties and the Office of 
Management and Budget to conduct a subsidy analysis that 
incorporates the most up to date data. The Committee directs 
the Department to provide the report to the Committee by 
December 31, 2011.
    The following table reflects the loan levels for the Rural 
Electrification and Telecommunications Loans Program account:

                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                    Committee
                                                             FY 2011 enacted  FY 2012 estimate     provisions
----------------------------------------------------------------------------------------------------------------
Loan authorizations:
    Electric:
        Direct, 5%........................................          $100,000          $100,000          $100,000
        Direct, FFB.......................................         6,500,000         6,000,000         6,500,000
        Guaranteed underwriting...........................           500,000                 0                 0
                                                           -----------------------------------------------------
            Subtotal......................................         7,100,000         6,100,000         6,600,000
                                                           =====================================================
    Telecommunications:
        Direct, 5%........................................           145,000           145,000           145,000
        Direct, Treasury rate.............................           250,000           250,000           250,000
        Direct, FFB.......................................           295,000           295,000           295,000
                                                           -----------------------------------------------------
            Subtotal......................................           690,000           690,000           690,000
                                                           =====================================================
            Total, Loan authorizations....................         7,790,000         6,790,000         7,290,000
----------------------------------------------------------------------------------------------------------------

         DISTANCE LEARNING, TELEMEDICINE AND BROADBAND PROGRAM

                                                                   Loan level      Subsidy level      Grants

2011 appropriation............................................      $400,000,000     $22,276,000     $45,814,000
2012 budget estimate..........................................                 0               0      47,976,000
Provided in the bill..........................................                 0               0      15,000,000
Comparison:
    2011 appropriation........................................      -400,000,000     -22,276,000     -30,814,000
    2012 budget estimate......................................               ---             ---     -32,976,000

                          COMMITTEE PROVISIONS

    For the Distance Learning, Telemedicine, and Broadband 
Program, the Committee provides an appropriation of $15,000,000 
for distance learning and telemedicine grants.
    Broadband Program Report.--The Committee is very concerned 
that numerous broadband projects around the country which were 
approved by the Department for funding under the American 
Recovery and Reinvestment Act, particularly for rural 
communities not served or underserved by broadband, are not 
under contract yet. The Committee directs the Department to 
submit a report which details the status of all approved 
broadband projects, when work is expected to start and be 
completed, within 60 days of enacted of this Act.

                                TITLE IV

                         DOMESTIC FOOD PROGRAMS

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

2011 appropriation....................................          $811,000
2012 budget estimate..................................           828,000
Provided in the bill..................................           689,000
Comparison:
    2011 appropriation................................          -122,000
    2012 budget estimate..............................          -139,000

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Food, Nutrition 
and Consumer Services, the Committee provides an appropriation 
of $689,000.
    The Committee directs FNS to continue making all policy 
documents related to the WIC program (including, but not 
limited to, instructions, memoranda, guidance, and questions 
and answers) available to the public on the internet within one 
week of their release to state WIC administrators.

                       Food and Nutrition Service

                        CHILD NUTRITION PROGRAMS

                     (INCLUDING TRANSFERS OF FUNDS)

2011 appropriation....................................   $17,319,950,000
2012 budget estimate..................................    18,810,571,000
Provided in the bill..................................    18,770,571,000
Comparison:
    2011 appropriation................................    +1,450,638,000
    2012 budget estimate..............................       -40,000,000

                          COMMITTEE PROVISIONS

    For the Child Nutrition Programs, the Committee provides 
$18,770,571,000.
    New Nutrition Requirements for the School Lunch and School 
Breakfast Programs.--The Committee notes that FNS has responded 
to the actions required by the Healthy, Hunger-Free Kids Act of 
2010, P.L. 111-296. The Committee urges restraint and practical 
timelines for implementing new national nutrition standards in 
the school breakfast and lunch programs. As many of the 
representatives in states and local school districts have 
cautioned, an overly aggressive implementation schedule and 
unrealistic demands on changes in nutrient content can lead to 
burdensome costs, estimated to be about $7 billion over 5 
years. Therefore, the Committee directs FNS to issue a new 
proposed rule that would not require an increase in the cost of 
providing school meals.
    The following table reflects the Committee recommendations 
for the child nutrition programs:

                         [Dollars in thousands]

Child Nutrition Programs:
    School lunch program................................     $10,884,019
    School breakfast program............................       3,337,699
    Child and adult care food program...................       2,818,405
    Summer food service program.........................         400,505
    Special milk program................................          13,069
    State administrative expenses.......................         279,034
    Commodity procurement...............................         972,651
    Healthier US Schools Challenge......................           1,500
    Team nutrition......................................          15,016
    Food safety education...............................           2,510
    Coordinated review..................................           9,763
    Computer support and processing.....................           9,525
    CACFP training and technical assistance.............           3,537
    Studies and other activities........................          19,000
    Hunger free community grants........................               0
    Farm to school tactical team........................           2,000
    CN payment accuracy.................................           2,338
    Child nutrition reauthorization.....................               0
                    --------------------------------------------------------
                    ____________________________________________________
    Total...............................................      18,770,571

SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN 
                                 (WIC)

2011 appropriation...................................     $6,734,027,000
2012 budget estimate.................................      7,390,100,000
Provided in the bill.................................      6,048,250,000
Comparison:
    2011 appropriation...............................       -685,777,000
    2012 budget estimate.............................     -1,341,850,000

                          COMMITTEE PROVISIONS

    For the Special Supplemental Nutrition Program for Women, 
Infants, and Children (WIC), the Committee provides an 
appropriation of $5,901,250,000.
    The Committee notes that since the budget request was 
submitted in February 2011, estimates for participation and 
food costs in the WIC program have declined from the original 
estimates for fiscal years 2011 and 2012.
    The Committee will continue to monitor WIC food costs, 
participation, and carry-over funds, and take additional action 
as necessary to ensure that funding provided in fiscal year 
2012 is sufficient to serve all eligible applicants.
    Although the total allocation for this bill is 13.4 percent 
below the fiscal year 2011 enacted level, WIC is reduced by a 
lesser amount or 12.4 percent below the fiscal year 2011 level. 
While funding for this program represents a relatively 
significant reduction, the Secretary can utilize funding 
mechanisms at his discretion, including the use of fiscal year 
2011 carryover funds, the contingency fund for this account in 
the amount of $125 million, as well as other funding options 
currently authorized in law.
    Transfer of WIC funds in FY 2011.-- The Committee is 
troubled by the action that transferred $562 million from WIC 
for an unrelated activity in fiscal year 2011 and insists that 
USDA work towards ensuring that funds appropriated for this 
program, and solely intended for this program, benefit this 
program and WIC participants.
    WIC Services and Administrative Costs.--While the average 
participation in WIC has grown by 26 percent over the past 10 
years, administrative costs for WIC have grown by 72 percent or 
$800 million dollars between 2001 and 2010. Keeping in mind 
that some of WIC's program offerings (i.e., nutrition and 
smoking cessation programs) have expanded over the past 10 
years and state salary and benefit costs have grown with 
inflation, administrative and service delivery costs as a 
percentage of the overall cost of the program are excessively 
high. By the Committee's estimation, administrative costs of 
operating WIC are well above 40 percent. In contrast to other 
social service organizations, the model guidelines by the 
Federal Government's Combined Federal Campaign require a 
justification from any local charity that has administrative 
costs exceeding 25 percent and the Better Business Bureau's 
Wise Giving Alliance charity standards set a rate not to exceed 
35 percent to cover administrative costs. FNS needs to achieve 
increased savings through greater use of benchmarking across 
states or achieve economies of scale whereby the agency and its 
state partners can decrease the delivery or program costs per 
participant. These costs pose the greatest threat to fully 
supporting the vital nutritional needs of all WIC participants. 
The Committee directs FNS to submit a plan by July 29, 2011, to 
reduce administrative costs.
    Electronic Benefits Transfer.--The Committee recommendation 
includes language to allow funds to be used for WIC electronic 
benefit transfer (EBT) systems and sets the level of 
infrastructure funding at $14,000,000, which includes funding 
to develop EBT systems. The Healthy, Hunger-Free Kids Act of 
2010, P.L. 111-296 mandated that each state implement EBT for 
WIC no later than October 1, 2020. A few states are leading the 
way on WIC EBT implementation and should serve as models 
required by other states, including those state plans that take 
advantage of the states' existing food stamp or SNAP EBT 
system. As a reminder, the SNAP program did not require states 
to fully develop Management Information Systems (MIS) or meet 
MIS standards before implementation of SNAP EBT, and the WIC 
program also should not make such a requirement. The Committee 
directs FNS to develop an implementation plan for a more 
accelerated schedule in order to take advantage of the benefits 
that WIC EBT would yield for both the Federal, state and 
private sector stakeholders. FNS should work with state WIC 
agencies to provide the Committee with the plan by December 31, 
2011.
    Categorical eligibility.--WIC provides nutritional support 
to some of the most vulnerable individuals in the U.S. 
population. However, due to the Nation's overall financial 
crisis and the rapidly expanding needs of other Federal 
nutrition programs administered by FNS, the Committee 
recommends that the agency focus first on the nutritional needs 
of those originally envisioned in the creation of this program. 
While the Committee understands the need to seek efficiencies 
through the use of Categorical Eligibility, the Committee is 
concerned that USDA is expanding eligibility well beyond the 
neediest or hardest hit during the economic downturn. In 
particular, USDA has confirmed that the WIC program is now 
serving significant numbers of individuals with incomes above 
185 percent of the U.S. Poverty Income Guidelines, including 
seven states that use income eligibility limits above 250 
percent of poverty.
    The recommended funding level includes $75,000,000 for 
continuation of the breastfeeding peer counselor program. The 
Committee also provides $7,500,000 for breastfeeding 
performance bonuses to WIC state agencies.
    The Committee provides $50,000,000 for investments in 
management information systems.

               SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

2011 appropriation.............................          $65,206,693,000
2012 budget estimate...........................           73,183,808,000
Provided in the bill...........................           71,173,308,000
Comparison:
    2011 appropriation.........................           +5,966,615,000
    2012 budget estimate.......................           -2,010,500,000

                          COMMITTEE PROVISIONS

    For the Supplemental Nutrition Assistance Program, the 
Committee provides $71,173,308,000. The total amount includes 
$3,000,000,000 for a contingency reserve in fiscal year 2012.
    Fast food pilot programs in SNAP.--The Committee 
disapproves of the Department's allowance of SNAP funds for 
fast food restaurants in certain state and territory programs. 
USDA's own Amber Waves magazine (March 2010) contained an 
article entitled ``SNAP Benefits and Eating Out: Wise Choices 
Required'' that stated the following: `Allowing SNAP 
participants to use their benefits to purchase food away from 
home is not likely to result in the healthy food choices found 
by the researchers' model. Most U.S. households make poorer 
nutritional choices than those recommended by the Thrifty Food 
Plan and the Dietary Guidelines. Allowing for SNAP benefits to 
be spent on food away from home, which is generally 
nutritionally inferior to food at home, may help SNAP 
participants balance time constraints and other needs but could 
also make eating healthy even more challenging. USDA should be 
consistent in its policies and practices for all nutrition 
assistance programs by ending this practice.
    Fraud, Waste, and Abuse.--While SNAP provides a vital food 
security safety net to nearly 45 million people in this Nation, 
the Committee is concerned about the amount of waste, fraud, 
and abuse in this immense Federal nutrition program. The 
Committee is deeply concerned about reports of fraud and 
overpayments in SNAP. During the testimony before this 
Committee, fraud alone was estimated at around $330 million in 
a single year. As this Committee noted last year, overpayments 
were expected to exceed $1.2 billion, while fiscal year 2009 
actual overpayments totaled $1.78 billion and fiscal year 2010 
overpayments are projected to approach $2.6 billion. Between 
fiscal year 2008 and fiscal year 2011, USDA estimates 
overpayments at a staggering cost of $9.1 billion. This amount 
clearly constitutes waste that this Nation cannot afford. While 
the Committee is committed to ensuring that all eligible 
families receive the assistance to which they are entitled, 
record budget deficits also require vigilance in defense of 
precious taxpayer funds. Therefore, the Committee directs USDA 
to submit a report to the House and Senate Committees on 
Appropriations by December 31, 2011, detailing plans to prevent 
future improper payments and to reduce future state 
administrative fees in amounts equal to the estimated 
overpayments by such states.
    The following table reflects the Committee recommendations 
for the Supplemental Nutrition Assistance Program:

Supplemental Nutrition Assistance Program Account:
    Benefits............................................ $61,816,683,000
    Contingency Reserve.................................   3,000,000,000
    Administrative Costs:
    State Administrative Costs..........................   3,332,000,000
    Nutrition Education and Obesity Prevention Grant 
      Program...........................................     381,000,000
    Employment and Training.............................     396,006,000
    Mandatory Other Program Costs.......................     114,358,000
    Discretionary Other Program Costs...................       1,000,000
                    --------------------------------------------------------
                    ____________________________________________________
    Total Administrative Costs..........................   4,224,364,000
    Nutrition Assistance for Puerto Rico................   1,751,583,000
    American Samoa......................................       7,034,000
    Food Distribution Program for Indian Reservations...     102,746,000
    TEFAP Commodities...................................     248,750,000
    Commonwealth of the Northern Mariana Islands........      12,148,000
    Community Food Project..............................       5,000,000
    Program Access......................................       5,000,000
                    --------------------------------------------------------
                    ____________________________________________________
    Subtotal............................................   2,333,496,000
                    --------------------------------------------------------
                    ____________________________________________________
    Total...............................................  71,173,308,000

                      COMMODITY ASSISTANCE PROGRAM

2011 appropriation....................................      $246,126,000
2012 budget estimate..................................       249,619,000
Provided in the bill..................................       192,500,000
Comparison:
    2011 appropriation................................       -53,626,000
    2012 budget estimate..............................       -57,119,000

                          COMMITTEE PROVISIONS

    The Committee provides an appropriation of $192,500,000 for 
the Commodity Assistance Program.
    The recommended funding level for the Commodity 
Supplemental Food Program (CSFP) is $138,500,000.
    The Committee has included $38,000,000 for administrative 
funding for the Emergency Food Assistance Program (TEFAP). In 
addition to the grant funds appropriated for commodity handling 
and distribution costs, the bill permits states to use up to 10 
percent of the funds provided for purchasing TEFAP commodities 
to help with the costs of storing, transporting and 
distributing commodities. The Committee expects state agencies 
to consult with their emergency feeding organizations on the 
need for the conversion of such funds.
    Increasing Efficiency within the Domestic Food Assistance 
Programs.--The Committee believes there are potential savings 
in the delivery of nutrition food assistance services designed 
to address food insecurity in the United States. The Government 
Accountability Office issued a report on April 15, 2010, 
entitled ``Domestic Food Assistance: Complex System Benefits 
Millions, but Additional Efforts Could Address Potential 
Inefficiency and Overlap among Smaller Programs'', that 
outlines some of the opportunities for more efficient delivery 
of services. The Committee directs the Secretary to prepare a 
report by December 1, 2011, that proposes methods for 
addressing inefficiencies and redundancies among all programs, 
particularly smaller programs, while ensuring access to the 
programs for those eligible. The Secretary should also assess 
the feasibility and consequences of transitioning those elderly 
participants in CSFP to SNAP, where possible, as well as 
options for combining the administrative functions of CSFP and 
TEFAP. Lastly, the report shall include options for creating 
greater savings within the state administrative expenses.
    For the Food Donations Programs, the Committee provides an 
appropriation of $1,000,000 for Pacific Island Assistance.
    The Committee recommendation includes $15,000,000 for the 
Farmers' Market Nutrition Program.
    Seniors Farmers' Market Program.--Section 4406(c)(1) of the 
Food, Conservation, and Energy Act of 2008 directs mandatory 
funding for this program from funds available to the Commodity 
Credit Corporation. The funding level is $20,600,000 in fiscal 
year 2012.

                   nutrition programs administration

2011 appropriation....................................      $147,505,000
2012 budget estimate..................................       170,471,000
Provided in the bill..................................       125,000,000
Comparison:
    2011 appropriation................................       -22,505,000
    2012 budget estimate..............................       -45,471,000

                          COMMITTEE PROVISIONS

    For Nutrition Programs Administration, the Committee 
provides $125,000,000.
    Interagency Working Group on Food Marketing to Children.--
The 2009 Omnibus Appropriations Act, P.L. 111-8, calling for 
the establishment of an Interagency Working Group on Food 
Marketed to Children, made up of members from FDA, CDC, USDA, 
and FTC. While Congress directed the Working Group to submit a 
report to the Committees on Appropriations no later than July 
15, 2010, this Committee has not received a report to date. 
Almost two years after the initial meeting of the four 
agencies, FTC released a draft report entitled ``Interagency 
Working Group on Food Marketed to Children: Preliminary 
Proposed Nutrition Principles to Guide Industry Self-Regulatory 
Efforts.''
    While the goal of improving children's diets and addressing 
the high rates of childhood obesity is laudable, this Committee 
strongly believes that a number of other critical existing 
responsibilities now take precedence over the previously 
required tasks of this Working Group. If the Secretary 
certifies in writing to the Committee that resources are 
available after all other statutory mandates are met, the 
Committee will consider directing USDA to collaborate with 
other members of the Interagency Working Group to complete a 
study, based upon peer-reviewed evidence, which examines the 
extent to which food marketing directed to children (ages 2 to 
12) contributes to long-term changes in eating behavior and 
which identifies a range of strategies that will address long-
term eating behavior in children, in order of their 
effectiveness.

                                TITLE V

                FOREIGN ASSISTANCE AND RELATED PROGRAMS

                      Foreign Agricultural Service

                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFERS OF FUNDS)

                                                                                 Transfer from
                                                                 Appropriation   loan accounts     Total, FAS

2011 appropriation............................................    $185,628,000    ($6,452,000)    ($192,080,000)
2012 budget estimate..........................................     229,730,000     (6,465,000)     (236,195,000)
Provided in the bill..........................................     175,000,000     (6,465,000)     (181,465,000)
Comparison:
    2011 appropriation........................................     -10,628,000     +13,000,000       -10,615,000
    2012 budget estimate......................................     -54,730,000             ---       -54,730,000

                          COMMITTEE PROVISIONS

    For the Foreign Agricultural Service (FAS), the Committee 
provides an appropriation of $175,000,000 and transfers of 
$6,465,000.
    National Export Initiative.--The Committee does not provide 
any additional funds for the National Export Initiative, but it 
fully supports the Administration's effort to expand overseas 
markets for U.S. agricultural exporters. The Committee 
encourages the Secretary of Agriculture to develop a newly 
improved process by which the Department's professionals and 
experts, as well as private sector leaders such as those within 
the Agricultural Policy Advisory Committee and the six 
Agricultural Technical Advisory Committees, can provide more 
expeditious and coordinated support to FAS in their work with 
stakeholders.
    Foreign Aid and Long-term Sustainability in Developing 
Countries.--This bill includes funding for two international 
food programs: the McGovern-Dole International Food for 
Education, a program designed to help support education, child 
development, and food security for some of the world's poorest 
children; and the Food for Peace, Public Law 480, Title II, 
which provides funding for donations of U.S. food agricultural 
commodities to meet emergency and nonemergency needs in other 
countries. The Committee directs FAS to submit a report within 
60 days of enactment that provides options for shifting 
resources away from funds designated for emergency food aid and 
to programs that support FAS' duties that help developing 
countries improve their agricultural systems and build their 
trade capacity. In constructing this report, USDA must work 
with U.S. AID to develop long-term efforts that help build 
market-driven institutions and science-based regulatory 
frameworks that facilitate trade and create an environment 
conducive to agricultural growth.

                             Food for Peace

                          Title I and Title II

                       PROGRAM AND GRANT ACCOUNTS

                     (INCLUDING TRANSFERS OF FUNDS)

                          COMMITTEE PROVISIONS

    The following table reflects the loan levels, subsidy 
levels, and administrative costs for all Public Law 480 
programs:

----------------------------------------------------------------------------------------------------------------
                                                                                                    Committee
                                                             FY 2011 enacted  FY 2012 estimate     provisions
----------------------------------------------------------------------------------------------------------------
Public Law 480 Program Account:
    Title II--Commodities for disposition abroad:
        Program level.....................................  ($1,499,806,000)  ($1,692,812,000)  ($1,042,583,000)
        Appropriation.....................................     1,497,000,000     1,690,000,000     1,040,198,000
    Salaries and expenses:
        FSA...............................................         2,806,000         2,812,000         2,385,000
                                                           -----------------------------------------------------
          Total, P.L. 480-S&E.............................         2,806,000         2,812,000         2,385,000
----------------------------------------------------------------------------------------------------------------

    The Committee directs the Secretary, through the Office of 
Budget and Program Analysis, in consultation with the 
Administrator of the U.S. Agency for International Development, 
to submit quarterly reports to the Committee on the status of 
the Bill Emerson Humanitarian Trust, as well as immediately 
notify the Committee when the Trust has been drawn down.

                    CCC EXPORT LOANS PROGRAM ACCOUNT

                        ADMINISTRATIVE EXPENSES

2011 appropriation....................................        $6,806,000
2012 budget estimate..................................         6,820,000
Provided in the bill..................................         6,820,000
Comparison:
    2011 appropriation................................           +14,000
    2012 budget estimate..............................             - - -

                          COMMITTEE PROVISIONS

    For administrative expenses of the Commodity Credit 
Corporation Export Loans Program Account, the Committee 
provides an appropriation of $6,820,000.

  MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD NUTRITION 
                             PROGRAM GRANTS

2011 appropriation....................................      $199,101,000
2012 budget estimate..................................       200,500,000
Provided in the bill..................................       180,000,000
Comparison:
    2011 appropriation................................       -19,101,000
    2012 budget estimate..............................       -20,500,000

                          COMMITTEE PROVISIONS

    For McGovern-Dole International Food for Education and 
Child Nutrition Program Grants, as authorized by Section 3107 
of P.L. 107-171 (7 U.S.C. 1736o-1), the Committee provides an 
appropriation of $180,000,000.

                                TITLE VI

RELATED AGENCIES AND FOOD AND DRUG ADMINISTRATION DEPARTMENT OF HEALTH 
                           AND HUMAN SERVICES

                      Food and Drug Administration

                         SALARIES AND EXPENSES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                           Appropriation        User fees       Total, FDA, S&E
----------------------------------------------------------------------------------------------------------------
2011 appropriation.....................................         $2,447,021         $1,203,762         $3,650,783
2012 budget estimate...................................          2,730,910          1,490,697          4,221,607
Provided in the bill...................................          2,163,451          1,490,697          3,654,148
Comparison:
    2011 appropriation.................................           -283,570           +286,935              3,365
    2012 budget estimate...............................           -567,459                ---           -567,459
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    The Committee provides an appropriation of $2,163,451,000 
in new budget authority. In addition, the Committee makes 
available $856,041,000 in prescription drug user fees; 
$67,118,000 in medical device user fees; $21,768,000 in animal 
drug user fees; $5,706,000 in generic animal drug user fees; 
$14,700,000 in Reinspection user fees; $12,364,000 in Food and 
Feed Export Certification user fees; $36,000,000 in Voluntary 
Qualified Importer user fees; and $477,000,000 in tobacco 
product user fees, for total Salaries and Expenses of 
$3,654,148,000.
    Between fiscal year 2004 and fiscal year 2011, net budget 
authority provided to FDA increased by $2,015,243,000, a 121 
percent increase. Over this same time period, direct 
appropriations increased by $1,052,404,000 or 75 percent. 
Implementation of the Food Safety Modernization Act of 2010, 
P.L. 111-353, would require an additional $1.4 billion in new 
budget authority. If the President's Budget request for 2012 
were adopted, the result would be a 156 percent increase for 
FDA since 2004. This level of spending is unsustainable. While 
the recommended funding level for FDA in this bill is an 11.5 
percent decrease below the amount provided in the fiscal year 
2011 Continuing Resolution, the Subcommittee's overall 
allocation was reduced by 13.4 percent.
    Spending Plans.--Within 30 days from the enactment of this 
Act, the Commissioner shall notify the Committees on 
Appropriations of both Houses of Congress, on the allocation of 
the funds provided herein by account, and within each account 
by program, project and activity.
    Food Safety Research.--The Committee urges FDA to 
collaborate on its research needs where possible to reduce 
redundancy regarding food safety research in produce and to 
find efficiencies where possible when constructing new research 
facilities.
    Trade Facilitation & Interagency Cooperation.--The current 
fiscal environment requires that efforts to enhance safety must 
be directed towards the most serious compliance infractions. 
The Committee strongly encourages FDA to establish a pilot 
project to expedite imports for highly compliant importers. 
Such project could be modeled on the Customs and Border 
Protection (CBP) Customs-Trade Partnership Against Terrorism 
and Importer Self-Assessment programs. 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 CBP and other 
relevant agencies on this work. FDA is directed to provide a 
report to the Committee on its efforts in this regard by 
December 1, 2011.
    Independent Post-Market Surveillance.--Concerns have been 
raised that those at FDA who approve drugs also have a large 
role in determining how they are regulated for safety in post-
marketing surveillance. The Committee directs FDA to issue a 
report by March 31, 2012, that would outline the process 
necessary to create an independent office within the agency 
that is focused on post-market evaluation with the controls and 
separation of duties necessary to make unbiased decisions on 
safety and advocacy. This process should also ensure that the 
post-market surveillance and pre-market functions can work 
collaboratively so that science-based, post-market assessments 
can formally feed back to officials involved with making pre-
market drug approvals.
    Pediatric Devices.--The Committee supports FDA's efforts in 
addressing the need for improved pediatric medical devices. 
Since the inception of Demonstration Grants for Improving 
Pediatric Device Availability, four consortia funded by the 
Office of Orphan Products Development have assisted in the 
development of more than 80 potential pediatric devices. While 
the Committee does not have additional resources to provide an 
increase, the Committee directs that FDA maintain level funding 
for this program.
    Influenza Vaccines.--The Committee is aware FDA has not yet 
exercised its authority under the Accelerated Approval of 
Biological Products regulation to approve licenses for 
adjuvanted seasonal influenza vaccines that have a proven 
safety record. While discussions about licensing such a vaccine 
have been ongoing at FDA, no pathway for approval has been 
established. The Committee believes FDA has the authority to 
approve these vaccines and encourages FDA to exercise that 
authority. The Committee is also aware that clinical studies 
are needed to further the development of new treatments for 
emerging public health requirements and for pandemic 
preparedness. The Committee urges FDA to work with interagency 
partners to ensure funding is available to conduct these needed 
clinical studies.
    Pediatric Cancer.--The Committee notes cancer remains the 
leading cause of disease-related death in children. The 
incidence of childhood cancer is increasing and more effective 
and less toxic treatments are needed. The Committee recognizes 
that only one drug has been approved for pediatric cancer in 
the last twenty years. The Committee encourages FDA to 
collaborate with industry and the pediatric cancer community to 
promote the development of new therapies.
    Sunscreen.--In August 2007, FDA published a proposed rule 
for over-the-counter sunscreens that would require UVB and UVA 
testing and labeling. Given the importance of this rule to 
protecting Americans against skin cancer, the Committee is 
concerned that FDA has not issued a final rule. The Committee 
instructs FDA to issue a final rule before December 31, 2011.
    Gluten-free Rulemaking.--Public Law 108-282 required a 
final rule to define and permit the use of the term ``gluten-
free'' on food labels not later than August 2008. Given the 
importance of this rule to protecting consumers, the Committee 
is concerned that FDA has not issued a final rule. The 
Committee instructs FDA to issue a final rule before December 
31, 2011.
    OTC Cold Medicines for Children.--The Committee is 
concerned that FDA has not issued a proposed rule revising the 
monograph regulating the labeling of over-the-counter cough and 
cold products for children. The Committee directs the agency to 
publish a proposed rule by December 31, 2011, based on 
scientific evidence for safety and efficacy in pediatric 
populations and consistent with the October 19, 2007, joint 
recommendations of its Pediatric Advisory Committee and 
Nonprescription Drugs Advisory Committee.
    Medical Devices Advisory Committee.--The Committee commends 
FDA for convening the General and Plastic Surgery Devices Panel 
of the Medical Devices Advisory Committee in March 2010 to 
review the medical device classification of tanning beds. The 
Committee encourages the agency to act in a timely fashion to 
finalize its review and make formal recommendations regarding 
this classification.
    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 90 days of enactment of this Act on progress made and a 
timeline for final action on a new FDA advisory.
    Nutrition Labeling.--The Committee is concerned with the 
proposed rule that FDA issued on April 6, 2011, on nutrition 
labeling of standard menu items in restaurants and similar 
retail food establishments. The proposed rule would include 
establishments that are not primarily in the business of 
selling food for immediate consumption or selling food that is 
prepared or processed on the premises. These establishments are 
not similar to restaurants and the Committee believes that FDA 
should define the term ``restaurant'' to mean only restaurants 
doing business marketed under the same name or retail 
establishments where the primary business is the selling of 
food for immediate consumption. The Committee urges FDA to use 
the proposed alternative definition in the rule that would 
encompass only establishments where the primary business is the 
selling of food for immediate consumption or selling food that 
is prepared and processed on the premises.
    FDA Spending.--The Committee is deeply troubled about the 
expenditure of scarce appropriated funds investigating alleged 
use of performance enhancing drugs. The Committee can discern 
no prudent interest for the FDA to investigate allegations that 
unapproved drugs may have been used outside the United States, 
where there is no allegation that they were sought to be 
imported into the U.S. and no risks to public health in the 
U.S. It exemplifies the problems identified by the GAO in 2010, 
which found that the FDA has failed to exercise appropriate 
oversight of the Office of Criminal Investigation or to ensure 
that its activities are consistent with the FDA's mission and 
priorities. The Committee takes no position on the merits of 
any pending allegations, but holds concerns about the use of 
taxpayer funds for investigations falling outside the agency's 
core missions.

                        BUILDINGS AND FACILITIES

2011 appropriation....................................        $9,980,000
2012 budget estimate..................................        13,055,000
Provided in the bill..................................         8,788,000
Comparison:
    2011 appropriation................................          -180,000
    2012 budget estimate..............................        -3,255,000

                          COMMITTEE PROVISIONS

    For Buildings and Facilities of the Food and Drug 
Administration, the Committee provides $8,788,000.

                          INDEPENDENT AGENCIES

                  Commodity Futures Trading Commission

2011 appropriation....................................      $202,270,000
2012 budget estimate..................................       308,000,000
Provided in the bill..................................       171,930,000
Comparison:
    2011 appropriation................................       -30,340,000
    2012 budget estimate..............................      -136,070,000

                          COMMITTEE PROVISIONS

    For the Commodity Futures Trading Commission (CFTC), the 
Committee provides an appropriation of $171,930,000.
    Spending Plans.--Within 30 days from the enactment of this 
Act, the Commissioner shall notify the Committees on 
Appropriations of both Houses of Congress, on the allocation of 
the funds provided herein by account, and within each account 
by program, project and activity.
    Implementation and Sequencing.--The Committee directs CFTC 
to develop and publish, with a 60-day comment period, a 
schedule of implementation and sequencing of all rules and 
regulations under subtitle A of Title VII of Public Law 111-
203.
    IG Report on Cost-Benefit Analysis.--A report completed by 
CFTC Inspector General (IG) analyzed the limited cost-benefit 
analysis performed by CFTC during rulemaking under Title VII of 
the Dodd-Frank Act, P.L. 111-203, as required by Section 15(a) 
of the Commodity Exchange Act. The Committee wishes to 
highlight several of the IG's findings. First, the role of the 
Office of the General Counsel (OGC) during the cost-benefit 
analysis was ``dominant . . . (and) had the greater `say''' 
during the entire process. To begin with, the formulation by 
the OGC of an analysis template that did not change from a 10-
year precedent due to fear of supposed litigation risk, 
although CFTC has never been presented with such a challenge in 
court. The Committee finds this revealing at a time when the 
Commission, in both its budget proposal and testimony, 
highlights the need for expanded resources due to ever-growing 
responsibility. Moreover, the OGC disregarded the opinions of 
those on the various analysis teams and injected its own views 
as superior. The Commission's expanded role under the Dodd-
Frank Act will drastically effect the financial industry and 
U.S. economy as a whole. As such, the Commission should adapt 
its cost-benefit analysis practices to its new 
responsibilities. Second, the lack of participation, and in 
certain cases, exclusion of CFTC's Office of the Chief 
Economist in the cost-benefit analysis process shows a lack of 
due diligence to wholly consider the economic impact of the 
rulemaking process. Finally, the report noted the haste with 
which the cost-benefit analysis took place due to the ill-
conceived July rulemaking deadline set forth under the Dodd-
Frank Act. Such expediency jeopardizes the diligence of the 
cost-benefit analysis. The Committee encourages CFTC to 
reexamine its procedures for cost-benefit analysis and follow 
the recommendations of the IG in doing so. While the Committee 
acknowledges that the Commission is not subject to complying 
with Executive Orders, it nonetheless encourages the Commission 
to conduct cost-benefit analysis on its proposed rules and 
regulations in the spirit of Executive Order 13563--Improving 
Regulation and Regulatory Review.
    Exemptions.--The Committee directs the Commission to exempt 
from margin requirements swaps entered into by commercial end 
users or entities whose primary business is a producer, 
processor, or merchant handling an agricultural commodity or 
exempt commodity, provided that such swaps are used to hedge or 
mitigate commercial risks related to such commodities.

                       Farm Credit Administration

                 LIMITATION ON ADMINISTRATIVE EXPENSES

2011 limitation.......................................     ($59,281,000)
2012 budget estimate..................................      (62,000,000)
Provided in the bill..................................      (62,000,000)
Comparison:
    2011 limitation...................................        +2,719,000
    2012 budget estimate..............................             - - -

                          COMMITTEE PROVISIONS

    For a limitation on the expenses of the Farm Credit 
Administration, the Committee provides $62,000,000.

                               TITLE VII

                           GENERAL PROVISIONS

              INCLUDING RESCISSIONS AND TRANSFERS OF FUNDS

    The General Provisions contained in the accompanying bill 
for fiscal year 2012 are fundamentally the same as those 
included in last year's appropriations bill.
    The following general provisions are included in the bill:
Section 701: Limitation on the purchase of passenger motor 
    vehicles.
Section 702: Transfer authority regarding the Working Capital 
    Fund.
Section 703: Limitation on certain obligations.
Section 704: Indirect cost rates for cooperative agreements 
    with nonprofit institutions.
Section 705: Disbursement of rural development loans.
Section 706: Limitation on funds for an advisory committee.
Section 707: Authority of the Chief Information Officer 
    relating to new IT systems.
Section 708: Availability of mandatory conservation program 
    funding.
Section 709: Rural Utility Service borrower eligibility.
Section 710: Indirect costs related to research grants.
Section 711: Availability of agency funds for information 
    technology.
Section 712: Funding availability for liquid infant formula.
Section 713: Prohibition on first-class airline travel.
Section 714: Use of funds authorized by the Commodity Credit 
    Corporation Act.
Section 715: Language regarding Rural Housing Service Loan 
    Guarantees.
Section 716: Language regarding the extension of a program.
Section 717: Disbursement of loans made under the Rural 
    Electrification Act.
Section 718: Rescission/limitation of certain funds.
Section 719: Funding for advisory committees.
Section 720: Indirect costs for competitive agricultural 
    research grants.
Section 721: Regulations under the Grain Inspection, Packers 
    and Stockyards Administration.
Section 722: Rescission of certain unobligated balances.
Section 723: Rescission of certain unobligated balances.
Section 724: Language regarding the Conservation Stewardship 
    Program.
Section 725: Language regarding the Environmental Quality 
    Incentives Program.
Section 726: Language regarding the Farmland Protection 
    Program.
Section 727: Language regarding the Wildlife Habitat Incentives 
    Program.
Section 728: Language regarding certain limitations.
Section 729: Rescission of certain unobligated balances.
Section 730: Limitation on certain funds.
Section 731: Conveyance authority of certain facilities.
Section 732: Modification of National School Lunch Act.
Section 733: Rescission of certain unobligated balances.
Section 734: Language on questions for the record.
Section 735: Language on reprogramming.
Section 736: Language on user fee proposals without offsets.
Section 737: Language regarding prepackaged news stories.
Section 738: Language on prohibition on paid details in excess 
    of 30 days.
Section 739: Language on horse slaughter.
Section 740: Language on FDA regulations.
Section 741: Language on cotton payments.
Section 742: Language on Federal loans, grants and contracts to 
    convicted felons.
Section 743: Language on cotton payments.
Section 744: Language on farm payments.
Section 745: Language on Federal loans, grants and contracts to 
    corporations with tax liabilities.
Section 746: Spending Reduction Account.
              HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS

                        Constitutional Authority

    Clause 6(e) of the Rules of the Appropriations Committee 
requires each committee report on a public bill or joint 
resolution to contain a statement citing the specific powers 
granted to Congress in the Constitution to enact the law 
proposed by the bill or joint resolution.
    The Committee on Appropriations bases its authority to 
report this legislation on clause 7 of section 9 of article I 
of the Constitution of the United States, which states ``No 
money shall be drawn from the Treasury, but in Consequence of 
Appropriations made by Law. . . .''
    Appropriations contained in this Act are made pursuant to 
this specific power granted by the Constitution.

                           Transfer of Funds

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following lists the transfers of 
unexpended balances included in the accompanying bill.
    1. Agriculture Buildings and Facilities and Rental 
Payments.--The bill allows funds to be transferred to recover 
the full cost of space and security expenses.
    2. Hazardous Materials Management.--The bill allows the 
funds appropriated to the Department for hazardous materials 
management to be transferred to agencies of the Department as 
required.
    3. Departmental Administration.--The bill requires 
reimbursement for expenses related to certain hearings.
    4. Office of the Assistant Secretary for Congressional 
Relations.--The bill allows a portion of the funds appropriated 
to the Office of the Assistant Secretary to be transferred to 
agencies.
    5. Animal and Plant Health Inspection Service.--Authority 
is included to enable the Secretary of Agriculture to transfer 
from other appropriations or funds of the Department such sums 
as may be necessary to combat emergency outbreaks of certain 
diseases of animals, plants, and poultry.
    6. Funds for Strengthening Markets, Income, and Supply.--
The bill limits the transfer of section 32 funds to purposes 
specified in the bill.
    7. Farm Service Agency Salaries and Expenses.--The bill 
provides that funds provided to other accounts in the agency 
may be merged with the salaries and expenses account of the 
Farm Service Agency.
    8. Dairy Indemnity Program.--The bill authorizes the 
transfer of funds to the Commodity Credit Corporation, by 
reference.
    9. Commodity Credit Corporation.--The bill includes 
language allowing certain funds to be transferred to the 
Foreign Agricultural Service for information resource 
management activities.
    10. Rural Development Salaries and Expenses.--The bill 
provides that prior year balances from certain accounts shall 
be transferred to and merged with this account.
    11. Rural Community Facilities Program Account, Rural 
Business Program Account, and Rural Water and Waste Disposal 
Program Account.--The bill provides that balances from the 
Rural Community Advancement Program may be transferred to and 
merged with these accounts.
    12. Child Nutrition Programs.--The bill includes authority 
to transfer section 32 funds to these programs.
    13. Foreign Agricultural Service Salaries and Expenses.--
The bill allows for the transfer of funds from the Commodity 
Credit Corporation Export Loan Program Account.
    14. Food for Peace Title I Direct Credit and Food for 
Progress Program Account.--The bill allows funds to be 
transferred to the Farm Service Agency, Salaries and Expenses 
account. The bill also provides that funds made available for 
the cost of title I agreements and for title I ocean freight 
differential may be used interchangeably.
    15. Commodity Credit Corporation Export Loans Program.--The 
bill provides for transfer of funds to the Foreign Agricultural 
Service and to the Farm Service Agency for overhead expenses 
associated with credit reform.
    16. Food and Drug Administration, Salaries and Expenses.--
The bill allows funds to be transferred among activities.
    17. General Provisions.--The bill allows unobligated 
balances of discretionary funds to be transferred to the 
Working Capital Fund.

               Changes in the Application of Existing Law

    Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of 
the House of Representatives, the following statements are 
submitted describing the effect of provisions in the 
accompanying bill that directly or indirectly change the 
application of existing law.
    The bill includes a number of provisions which place 
limitations on the use of funds in the bill or change existing 
limitations and which might, under some circumstances, be 
construed as changing the application of existing law:
    1. Office of the Secretary.--Language is included to limit 
the amount of funds for official reception and representation 
expenses, as determined by the Secretary.
    2. Office of the Chief Financial Officer.--Language is 
included that no funds may be obligated for FAIR Act or A-76 
activities until the Secretary provides a report to the 
Congress on contracting out policies.
    3. Departmental Administration.--Language is included to 
reimburse the agency for travel expenses incident to the 
holding of hearings.
    4. Agricultural Research Service.--Language is included 
that allows the Agricultural Research Service to grant 
easements at the Beltsville, MD, agricultural research center.
    5. Animal and Plant Health Inspection Service.--A provision 
carried in the bill since fiscal year 1973 regarding state 
matching funds has been continued to assure more effective 
operation of the brucellosis control program through state cost 
sharing, with resulting savings to the Federal budget.
    Language is included to allow APHIS to recoup expenses 
incurred from providing technical assistance goods, or services 
to non-APHIS personnel, and to allow transfers of funds for 
Agricultural emergencies.
    Language is included to limit the amount of funds for 
representational allowances.
    6. Agricultural Marketing Service, Limitation on 
Administrative Expenses.--The bill includes language to allow 
AMS to exceed the limitation on administrative expenses by 10 
percent with notification to the Appropriations Committees. 
This allows flexibility in case crop size is understated and/or 
other uncontrollable events occur.
    7. Grain Inspection, Packers and Stockyards Administration, 
Inspection and Weighing Services.--The bill includes authority 
to exceed the limitation on inspection and weighing services by 
10 percent with notification to the Appropriations Committees. 
This allows for flexibility if export activities require 
additional supervision and oversight, or other uncontrollable 
factors occur.
    8. Dairy Indemnity Program.--Language is included by 
reference that allows the Secretary to utilize the services of 
the Commodity Credit Corporation for the purpose of making 
dairy indemnity payments.
    9. Agricultural Credit Insurance Fund Program Account.--
Language is included that deems the pink bollworm a boll weevil 
for the purposes of administering the boll weevil loan program.
    10. Risk Management Agency.--Language is included to limit 
the amount of funds for official reception and representation 
expenses.
    11. Commodity Credit Corporation Fund.--Language is 
included to provide for the reimbursement appropriation. 
Language is also included to allow certain funds transferred 
from the Commodity Credit Corporation to be used for 
information resource management. In addition, language is 
included which limits the amount of funds that can be spent on 
operation and maintenance costs of CCC hazardous waste sites.
    12. Natural Resources Conservation Service--Conservation 
Operations.--Language which has been included in the bill since 
1938 prohibits construction of buildings on land not owned by 
the government, although construction on land owned by states 
and counties is authorized by basic law.
    13. Rural Development Salaries and Expenses.--Language is 
included to allow funds to be used for advertising and 
promotional activities and to limit the amount of funds to 
provide modest nonmonetary awards to non-USDA employees.
    14. Rental Assistance Program.--Language is included which 
provides that agreements entered into during the current fiscal 
year be funded for a one-year period.
    15. Special Supplemental Nutrition Program for Women, 
Infants, and Children (WIC).--Language is included to purchase 
infant formula except in accordance with law and pay for 
activities that are not fully reimbursed by other departments 
or agencies unless authorized by law.
    16. Supplemental Nutrition Assistance Program.--Language is 
included on funds availability for Employment and Training and 
to enter into contracts and employ staff to conduct studies, 
evaluations, or to conduct activities related to program 
integrity.
    17. Foreign Agricultural Service.--Language carried since 
1979 enables this agency to use funds received by an advance or 
by reimbursement to carry out its activities involving 
international development and technical cooperation. Language 
is included to limit the amount of funds for official reception 
and representation expenses.
    18. Commodity Futures Trading Commission.--Language is 
included to limit the amount of funds for official reception 
and representation expenses.
    19. General Provisions.--
    Section 704: This provision provides that none of the funds 
in this Act may be made available to pay indirect costs charged 
against competitive agricultural research, education, or 
extension grants awarded by the National Institute of Food and 
Agriculture in excess of 10 percent of total direct costs.
    Section 705: This provision allows funds made available in 
the current fiscal year for the Rural Development Loan Fund 
program account; the Rural Electrification and 
Telecommunications Loans program account; and the Rural Housing 
Insurance Fund program account to remain available until 
expended to disburse obligations.
    Section 706: Provides that none of the funds may be used to 
carry out certain provisions of the meat and poultry inspection 
act.
    Section 707: Language is included that requires approval of 
the Chief Information Officer and the concurrence of the 
Executive Information Technology Investment Review Board for 
acquisition of new information technology systems or 
significant upgrades, and that prohibits the transfer of funds 
to the Office of the Chief Information Officer without the 
notification of the Committees on Appropriations of both Houses 
of Congress.
    Section 708: Language is included regarding the 
availability of funds for certain conservation programs.
    Section 709: Language is included regarding certain Rural 
Utilities Service Programs.
    Section 710: Language is included regarding indirect costs 
to grants made under section 412 of the Agricultural Research, 
Extension, and Education Reform Act of 1998.
    Section 711: Language is included that allows unobligated 
balances of the Farm Service Agency and Rural Development 
mission areas to be used for information technology purposes.
     Section 712: Language is included regarding reconstituted 
liquid concentrate infant formula issuance to WIC participants.
    Section 713: Language is included regarding the prohibition 
of first-class travel by the employees of agencies funded in 
this Act.
    Section 714: Language is included regarding the use of 
authorities of the Commodity Credit Corporation.
    Section 715: Language is included regarding the Rural 
Housing Insurance Fund Program account that authorities under 
Section 502 of the program may be used for Section 538 of the 
program.
    Section 716: Language is included regarding the 
Agricultural Management Assistance Program.
    Section 717: Language is included regarding the 
disbursement of valid obligations for certain Rural 
Electrification Loans.
    Section 718: Language is included that limits and rescinds 
section 32 balances.
    Section 719: Language is included that limits the amount of 
spending for USDA Advisory Committees.
    Section 720: Language is included modifying matching 
requirements for certain research grants.
    Section 721: Language is included regarding regulations 
under the Packers and Stockyards Act.
    Section 722: Language is included regarding the rescission 
of certain unobligated balances.
    Section 723: Language is included regarding the rescission 
of certain unobligated balances.
    Section 724: Language is included regarding the 
Conservation Stewardship Program.
    Section 725: Language regarding the Environmental Quality 
Incentives Program.
    Section 726: Language regarding the Farmland Protection 
Program.
    Section 727: Language regarding the Wildlife Habitat 
Incentives Program.
    Section 728: Language regarding certain limitations.
    Section 729: Rescission of certain unobligated balances.
    Section 730: Limitation on certain funds.
    Section 731: Conveyance authority of certain facilities.
    Section 732: Modification of National School Lunch Act.
    Section 733: Rescission of certain unobligated balances.
    Section 734: This provision prohibits the Department of 
Agriculture or the Food and Drug Administration from 
transmitting or making available to any non-Department of 
Agriculture or non-Department of Health and Human Services 
employee questions or responses to questions that are a result 
of information requested for the appropriations hearing 
process.
    Section 735: Language is included that requires certain 
reprogramming procedures of funds provided in Appropriations 
Acts.
    Section 736: Language is included that prohibits funds from 
being used to prepare a budget submission to Congress that 
assumes reductions from the previous years budget due to user 
fee proposals unless the submission also identifies spending 
reductions which should occur if the user fees are not enacted.
    Section 737: Language regarding prepackaged news stories.
    Section 738: This provision prohibits any employee of the 
Department of Agriculture from being detailed or assigned to 
any other agency or office of the Department for more than 30 
days unless the individual's employing agency or office is 
fully reimbursed by the receiving agency or office for the 
salary and expenses of the employee for the period of 
assignment.
    Section 739: Language on horse slaughter.
    Section 740: Language on FDA regulations.
    Section 741: Language on cotton payments.
    Section 742: Language on Federal loans, grants and 
contracts to convicted felons.
    Section 743: Language on cotton payments.
    Section 744: Language on farm payments.
    Section 745: Language on Federal loans, grants and 
contracts to corporations with tax liabilities.
    Section 746: Spending Reduction Account.

   Disclosure of Earmarks and Congressionally Directed Spending Items

    Neither the bill nor the report contains any Congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

          Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

    SECTION 14222 OF THE FOOD, CONSERVATION, AND ENERGY ACT OF 2008

SEC. 14222. DOMESTIC FOOD ASSISTANCE PROGRAMS.

  (a) * * *
  (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.

           *       *       *       *       *       *       *

                              ----------                              

     SECTION 9 OF THE RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

               NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS

  Sec. 9. (a)  * * *

           *       *       *       *       *       *       *

  (l) Food Donation Program.--
          (1) In general.--Each school and local educational 
        agency participating in the school lunch program under 
        this Act may donate any food not consumed under such 
        program to eligible local food banks or charitable 
        organizations.
          (2) Guidance.--
                  (A) In general.--Not later than 180 days 
                after the date of the enactment of this 
                subsection, the Secretary shall develop and 
                publish guidance to schools and local 
                educational agencies participating in the 
                school lunch program under this Act to assist 
                such schools and local educational agencies in 
                donating food under this subsection.
                  (B) Updates.--The Secretary shall update such 
                guidance as necessary.
          (3) Liability.--Any school or local educational 
        agency making donations pursuant to this subsection 
        shall be exempt from civil and criminal liability to 
        the extent provided under the Bill Emerson Good 
        Samaritan Food Donation Act (42 U.S.C. 1791).
          (4) Definition.--In this subsection, the term 
        ``eligible local food banks or charitable 
        organizations'' means any food bank or charitable 
        organization which is exempt from tax under section 
        501(c)(3) of the Internal Revenue Code of 1986 (26 
        U.S.C. 501(c)(3)).
                              ----------                              

FOOD SECURITY ACT OF 1985

           *       *       *       *       *       *       *

TITLE XII--CONSERVATION

           *       *       *       *       *       *       *

CHAPTER 2--CONSERVATION SECURITY AND FARMLAND PROTECTION

           *       *       *       *       *       *       *

             Subchapter B--Conservation Stewardship Program

SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM.

  (a) Establishment and Purpose.--During each of fiscal years 
2009 through [2012] 2014, the Secretary shall carry out a 
conservation stewardship program to encourage producers to 
address resource concerns in a comprehensive manner--
          (1)  * * *

           *       *       *       *       *       *       *

CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

           *       *       *       *       *       *       *

SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION

  (a) Establishment.--During each of the 2002 through [2012] 
2014 fiscal years, the Secretary shall provide payments to 
producers that enter into contracts with the Secretary under 
the program.

           *       *       *       *       *       *       *

                 Subtitle E--Funding and Administration

SEC. 1241. COMMODITY CREDIT CORPORATION.

  (a) In General.--For each of fiscal years 2002 through 
[2012,] 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 subtitle D (including the provision of technical 
assistance):
          (1)  * * *

           *       *       *       *       *       *       *

          (4) The farmland protection program under subchapter 
        C of chapter 2, using, to the maximum extent 
        practicable--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (E) $200,000,000 in [fiscal year 2012] each 
                of fiscal years 2012 through 2014.

           *       *       *       *       *       *       *

          (6) The environmental quality incentives program 
        under chapter 4, using, to the maximum extent 
        practicable--
                  (A)  * * *
                  (E) $1,750,000,000 in [fiscal year 2012] each 
                of fiscal years 2012 through 2014.
          (7) The wildlife habitat incentives program under 
        section 1240N, using, to the maximum extent 
        practicable--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (D) $85,000,000 in each of fiscal years 2005 
                through [2012] 2014.

           *       *       *       *       *       *       *

                              ----------                              

             SECTION 524 OF THE FEDERAL CROP INSURANCE ACT

SEC. 524. EDUCATION AND RISK MANAGEMENT ASSISTANCE.

  (a)  * * *
  (b) Agricultural Management Assistance.--
          (1)  * * *

           *       *       *       *       *       *       *

          (4) Commodity credit corporation.--
                  (A) In general.--The Secretary shall carry 
                out this subsection through the Commodity 
                Credit Corporation.
                  (B) Funding.--
                          (i)  * * *
                          (ii) Exception for [fiscal years 2008 
                        through 2012] certain fiscal years.--
                        For each of fiscal years 2008 through 
                        [2012] 2014, the Commodity Credit 
                        Corporation shall make available to 
                        carry out this subsection $15,000,000.

           *       *       *       *       *       *       *

                  Appropriations Not Authorized by Law

    Pursuant to clause 3(f)(1)(B) of rule XIII of the Rules of 
the House of Representatives, the following table lists the 
appropriations in the accompanying bill which are not 
authorized by law for the period concerned:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                  Appropriations
                                                     Last year of  Authorization   in last year   Appropriations
                  Agency/program                    authorization      level            of         in this bill
                                                                                   authorization
----------------------------------------------------------------------------------------------------------------
Office of the Secretary:
    Healthy Food Financing Initiative.............           N/A            N/A             N/A   ..............
Rural Housing Service:
    Multi-family Housing Revitalization Program...     9/30/2010         43,191          43,191   ..............
Rural Utilities Service:
    Broadband Telecommunications Grants...........     9/30/2010         17,976          17,976   ..............
----------------------------------------------------------------------------------------------------------------

                                                                                                  
                                                                                                  
                              Rescissions

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following lists the rescissions 
of unexpended balances included in the accompanying bill:
    The bill proposes rescissions of $155,000,000 of funds 
derived from interest on the cushion of credit payments under 
the Rural Economic Development Loans Program Account; 
$150,000,000 from Section 32 funds; $11,000,000 from 
Supplemental Nutrition Assistance Program employment and 
training funds; $5,500,000 from the Forestry Incentives 
Program; $500,000 from the Great Plains Conservation Program; 
$90,000,000 from Trade Adjustment Assistance for farmers; and 
$63,000,000 from unobligated balances at the Department of 
Agriculture.

                 Comparison With the Budget Resolution

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a)(1)(A) of the 
Congressional Budget Act of 1974, the following table compares 
the levels of new budget authority provided in the bill with 
the appropriate allocation under section 302(b) of the Budget 
Act:

                        [In millions of dollars]

----------------------------------------------------------------------------------------------------------------
                                                                  302(b) Allocation             This Bill
                                                             ---------------------------------------------------
                                                                 Budget                    Budget
                                                               authority     Outlays     authority     Outlays
----------------------------------------------------------------------------------------------------------------
Comparision of amounts in the bill with Committee             ...........  ...........  ...........  ...........
 allocations to its subcommittees of amounts in the Budget
 Resolution for 2012:
    Discretionary...........................................      $17,250      $20,950      $17,250   \1\$21,452
    Mandatory...............................................      116,916      104,805      116,916   \1\104,805
----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.

                      Five-Year Outlay Projections

    Pursuant to section 308(a)(1)(B) of the Congressional 
Budget Act of 1974, the following table contains five-year 
projections prepared by the Congressional Budget Office of 
outlays associated with the budget authority provided in the 
accompanying bill:

                        [In millions of dollars]

Projection of outlay associated with the recommendation:
    2012................................................     \1\$114,692
    2013................................................           3,839
    2014................................................           1,489
    2015................................................             209
    2016 and future years...............................             -73
  \1\Excludes outlays from prior-year budget authority.

               Assistance to State and Local Governments

    Pursuant to section 308(a)(1)(C) of the Congressional 
Budget Act of 1974, the amounts of financial assistance to 
State and local governments is as follows:

                        [In millions of dollars]

Budget Authority........................................         $34,896
Outlays.................................................       \1\33,480
  \1\Excludes outlays from prior-year budget authority.

                            ADDITIONAL VIEWS

    The allocation for this bill, $17.250 billion, is $5 
billion (23%) below the 2012 President's request; $2.9 billion 
(14%) below the 2011 enacted level; and $6.1 billion (26%) 
below the 2010 enacted level. It is even below the 2008 enacted 
level.
    Among all the subcommittee allocations, this is the worst 
or second worst, in percentage terms, relative to the 2012 
request and to the 2008, 2010, and 2011 enacted levels.
    This allocation has resulted in a predictably bad bill that 
slashes programs vital to the Nation.
    We also have serious concerns about language in the bill 
and report.
Special Supplemental Nutrition Program for Women, Infants and Children 
        (WIC)
    At the funding level for WIC in the subcommittee bill, USDA 
and the Center on Budget and Policy Priorities agreed that 
hundreds of thousands of eligible applicants would have been 
denied participation in the program in 2012.
    We are very pleased that the Committee agreed to add $147 
million to WIC, bringing the funding level to $6,048,250,000.
    However, even with this significant increase, the bill is 
still well below the level needed to serve all eligible 
applicants and thousands of persons will still be unserved.
    The majority attempted to address concerns about the 
funding shortfall by saying in the report:
        While funding for this program represents a relatively 
        significant reduction, the Secretary can utilize 
        funding mechanisms at his discretion, including the use 
        of fiscal year 2011 carryover funds, the contingency 
        fund for this account in the amount of $125 million, as 
        well as other funding options currently authorized in 
        law.
    Estimates as to persons turned away under the funding level 
in the bill already assume use of all the 2011 carryover funds 
and depletion of the entire $125 million reserve fund.
    The mention above of ``other funding options currently 
authorized in law'' refers to the ability of the Secretary of 
Agriculture to increase an appropriation by up to 7% by taking 
funds from other accounts. In this case, the Secretary could 
transfer up to $423 million from SNAP (food stamps) or the 
National School Lunch Program to WIC.
    Relying on the use of such authority to backfill partially 
the funding gap in this bill is not honest budgeting. Full 
funding to support all eligible applicants must be provided in 
this bill.
WIC administrative costs
    There was an extended debate in Committee about the 
majority's assertion in the report that the administrative 
costs of WIC are ``well above 40 percent.''
    This statement was based on a 2008 report by the Brookings 
Institution that says nutrition services and administration or 
``NSA'' ``includes a broad range of activities, such as 
referrals to health and social services, breast feeding 
promotion, and nutrition education, as well as eligibility 
determinations based on income and nutrition risk 
assessments.''
    Committee Democrats made the same point during the debate. 
These activities go far beyond any traditional definition of 
administrative activities or program management. The table 
below, using data from USDA, shows that program management 
constitutes only 9% of total program costs.

                      FY 2010 WIC COSTS BY CATEGORY
------------------------------------------------------------------------
                                                              Percent of
                                                Amount          total
------------------------------------------------------------------------
Total Food Costs........................      4,561,570,027        70.44
Nutrition Services and Administration
 (``NSA''):
    Breastfeeding Support...............        149,133,594         2.30
    Nutrition Education.................        418,437,331         6.46
    Other Client Services...............        758,015,711        11.70
    Program Management..................        588,984,767         9.09
                                         -------------------------------
        Subtotal NSA....................      1,914,571,403        29.56
                                         ===============================
            Total WIC...................      6,476,141,430      100.00
------------------------------------------------------------------------
\1\$1.00 in benefits + $0.414 in administrative costs = $1.414. The
  percentage of costs of administration is $0.414 divided by $1.414,
  which is 29 percent.

    Nor is 2010 an anomaly. A 2009 Congressional Research 
Service report said that NSA costs were typically about 30% of 
total WIC costs and that ``traditional administrative 
activities like eligibility determinations and issuing and 
redeeming vouchers'' were one-third of NSA costs, or 10% of 
total WIC costs.
Other domestic food programs
    The bill also makes deep cuts in other important domestic 
food programs:
     Funding for the Commodity Supplemental Food 
Program, which serves predominantly low-income seniors, is 
$138.5 million. This is $38 million (22%) below the 2012 
request and $37 million (21%) below 2011.
     Funding for the Emergency Food Assistance Program 
(TEFAP), which works with states to assist food banks, is $38 
million. This is $12 million (24%) below the 2012 request, and 
about $11 million (23%) below 2011. The bill also cuts $51 
million (20%) from the funding that TEFAP receives annually 
from the SNAP program.
     The bill reduces the WIC Farmers Market Nutrition 
Program to $15 million, which is $5 million (25%) below the $20 
million level that has been provided for many years. The 
program gives vouchers to WIC participants for the purchase of 
fresh fruits and vegetables at state-approved farmers' markets.
International food aid
    The bill provides $1.040 billion for the Food for Peace 
program, a reduction of $650 million (38%) from the 2012 
request and $457 million (31%) from the 2011 level.
    For emergency needs, this reduction is even worse than it 
appears. The 2008 farm bill established a minimum level of non-
emergency funding that must be provided annually; in 2012, it 
is $450 million. After that funding is provided, there would be 
only $590 million left for emergency food assistance, compared 
to the 2012 request for emergency assistance of $1.240 billion.
    In addition, the bill cuts the highly successfully 
McGovern-Dole International Food for Education and Child 
Nutrition program. It is funded at $180 million, which is 10% 
below 2011 and the 2012 request and 14% below 2010.
Food and Drug Administration (FDA)
    The bill funds FDA salaries and expenses at $2.163 billion, 
which is $567 million (21%) below the 2012 request and $284 
million (12%) below 2011.
    The 2012 request sought increases for important activities, 
such as implementing the landmark Food Safety Modernization 
Act, enacted just months ago; continuing work on biosimilars; 
increasing the number of inspections of foreign medical 
facilities; and continuing work on medical countermeasures. 
Work in these areas will be stopped or slowed at the level in 
the Committee bill.
    After years of under-investment, there was recent 
widespread recognition by Congress and both industry and 
consumer groups that FDA did not have enough resources to keep 
up with the new responsibilities given it by Congress and the 
explosion of imports of food and medical products into the U.S. 
Congress began to give the agency the resources to meet this 
need. The deep cut in the Committee bill sets back this 
bicameral work of the past several years.
Commodity Futures Trading Commission (CFTC)
    The bill provides $171.93 million for CFTC, a reduction of 
$136 million (44%) below the request (which proposed an 
increase for the implementation of the landmark Dodd-Frank 
financial reform legislation) and $30 million (15%) below 2011. 
At a time of volatile commodity prices, including oil and 
energy, and only three years after the worst financial crisis 
since the Great Depression, inadequate funding of CFTC is an 
unacceptable risk to the markets on which our economy depends.
New FDA bill language
    We are deeply disturbed that the Committee voted to include 
bill language that rewrites the statutory and regulatory 
standards protecting our food and medical products and 
regulating tobacco products. This is an extraordinarily vaguely 
drafted measure, requiring, for example, the use of undefined 
``hard'' science. It prohibits consideration of consumer 
behavior in regulating products, despite the fact that such 
evidence can be critical in conducting the risk assessments 
that the provision demands. Further, it requires that there 
always be toxicological and epidemiological evidence clearly 
justifying an action to restrict use of a compound. This would 
mean that no action could be taken to stop dangerous foods or 
medical or tobacco products without conducting time-consuming, 
expensive, and often ethically inappropriate toxicological and 
epidemiological tests.
Grain Inspection, Packers and Stockyards Administration (GIPSA) 
        Livestock Competition Rule
    Section 721 of the bill prohibits GIPSA from essentially 
doing anything to develop a final rule on competition in the 
livestock and poultry industries. We strongly oppose this 
prohibition. For struggling small producers, fairness and a 
level playing field are essential to their ability to succeed. 
Prohibiting GIPSA from ensuring that they have these 
protections will negatively affect these vulnerable livestock 
producers. Both the National Farmers Union and the American 
Farm Bureau Federation have expressed serious concern about 
this provision.
Healthy, Hunger-Free Kids Act of 2010
    We commend USDA's decision to propose scientifically sound 
nutrition standards for school lunch and breakfast programs. 
The USDA proposal closely tracks the scientifically-based 
recommendations for school meals made by the Institute of 
Medicine. As USDA has received over 130,000 comments from 
interested stakeholders, it would be time-consuming and costly 
to start the process over with a new proposed rule, as directed 
by the Committee report. Rather, USDA should review and 
consider the comments submitted and issue a final rule as 
planned. We would note that the Secretary has a number of 
options to meet the concerns expressed in the comments the 
Department received in response to its proposal.
Farm bill programs
    The bill includes over $1.5 billion in limitations on 
mandatory programs, most of them funded in the 2008 farm bill 
and most of them in the conservation and bio-energy areas. We 
expect deep concern about these cuts from the Agriculture 
Committee, as well as persons supporting these programs.
Conclusion
    There are a host of other concerns about the Committee bill 
that we will discuss with our colleagues in the coming days and 
weeks.
    While we will do our best to address the many shortcomings 
of this bill as the process moves forward, we oppose this bill 
in its current form and urge our colleagues to do so as well.

                                   Sam Farr.
                                   Norman D. Dicks.

                                  

```