##### 



SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2002

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to
Commission File Number 333-79328

RURAL ELECTRIC COOPERATIVE GRANTOR TRUST (SOYLAND) 1993-B1
(Exact name of registrant as specified in its charter)

NEW YORK
(State or other jurisdiction of incorporation or organization)

36-7051619
(I.R.S. Employer Identification Number)

2201 Cooperative Way, Herndon, VA 20171-3025
(Address of principal executive offices)
(Registrants telephone number, including area code, is 703-709-6700)

Securities Registered pursuant to Section 12(b) of the Act: None.

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes X       No ___

The Registrant has no common or voting stock.

DOCUMENTS INCORPORATED BY REFERENCE:

None.





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##### 



|        |  |                  
|------- |  | -----------------
|Part I  |  |                  
|       
|Item 3. |  | Legal Proceedings



| |      
| | -----
| | None.

|        |  |                                                    
|------- |  | ---------------------------------------------------
|Item 4. |  | Submission of Matters to a Vote of Security Holders



| |      
| | -----
| | None.

|        |  |                                                                          
|------- |  | -------------------------------------------------------------------------
|Part II |  |                                                                          
|       
|Item 5. |  | Market for the Registrants Common Equity and Related Stockholder Matters



| | a) |  | There is no established trading market for the certificates representing ownership of the
beneficial interest in the Rural Electric Cooperative Grantor Trust (Soyland) 1993-B1 (Trust).
| | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | As of December 31, 2002 there was one record holder of certificates representing ownership of the
beneficial interest in the Trust.                                                       

|        |  |                                            
|------- |  | -------------------------------------------
|Item 8. |  | Financial Statements and Supplementary Data



| |                                           
| | ------------------------------------------
| | See attached audited financial statements.

|        |  |                                                                                     
|------- |  | ------------------------------------------------------------------------------------
|Item 9. |  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | On April 22, 2002, National Rural Utilities Cooperative Finance Corporation (CFC) as servicer
for the Trust rescinded an earlier decision to retain Arthur Andersen LLP as independent public
accountants for the audit of its fiscal year ending December 31, 2002. On April 16, 2002, CFC
engaged Ernst & Young LLP as its independent public auditors for the year ended December 31,
2002. CFCs Board of Directors approved the dismissal of Arthur Andersen LLP.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| | Arthur Andersen LLPs reports on CFCs financial statements for fiscal year ended December 31,
2000 and 2001 did not contain an adverse opinion or disclaimer of opinion, nor were they
qualified or modified as to uncertainty, audit scope or accounting principles.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| | During the fiscal years ended December 31, 2000 and 2001 there were no disagreements with Arthur
Andersen LLP on any matter of accounting principles or practices, financial statement disclosure
or auditing scope or procedure which, if not resolved to Arthur Andersen LLPs satisfaction,
would have caused them to make reference to the subject matter of the disagreement in connection
with their report on the Trusts financial statements for such years. During such period there
also were no reportable events (as defined in
Item 304(a)(1)(v) of Regulation S-K promulgated
by the SEC), and the Trust did not (nor did anyone on its behalf) consult with Ernst & Young LLP
with respect to the application of accounting principles to a specified transaction, either
completed or proposed, or the type of audit opinion that might be rendered on the Trusts
financial statements, or any other matters or events set forth in item 304(a)(2)(i) or (ii) of
Regulation S-K.
|
| | The Trust provided Arthur Andersen LLP with a copy of the above disclosures. In a letter dated
April 26, 2002, Arthur Andersen LLP confirmed its agreement with such statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

|         |  |                                               
|-------- |  | ----------------------------------------------
|Part III |  |                                               
|        
|Item 13. |  | Certain Relationships and Related Transactions



| |      
| | -----
| | None.

|       
|-------
|Part IV

2



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##### 



|         |  |                                                                   
|-------- |  | ------------------------------------------------------------------
|Item 15. |  | Exhibits and Financial Statement Schedules and Reports on Form 8-K



| |                                                          
| | ---------------------------------------------------------
| | The following documents are filed as part of this report:



| | 1. |  | Financial Statements
Report of Independent Auditors
Report of Independent Public Accountants
Statements of Assets and Liabilities as of December 31, 2002 and 2001
Statements of Income and Expenses for the Years Ended December 31, 2002, 2001 and 2000
Statements of Cash Flows for the Years Ended December 31, 2002, 2001 and 2000
Notes to Financial Statements
| | -- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | 2. |  | Financial Statement Schedules are omitted because they are inapplicable.                                                                                                                                                                                                                                                                                             
|
| | 3. |  | Exhibits                                                                                                                                                                                                                                                                                                                                                             

|              |  |                       
|------------- |  | ----------------------
|ExhibitNumber |  | Description of Exhibit



| | 4.1  |  | Form of Trust Agreement, including the form of
Rural Electric Cooperative Grantor Trust
Certificate (incorporated by reference to
Exhibit 4.1 to Registration Statement on form
S-1 [No. 33-79328].)
| | ---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | 4.2  |  | Loan Agreement (incorporated by reference to
Exhibit 10.1 to Registration Statement on Form
S-1 [No. 33-79328].)                                                                                    
|
| | 10.2 |  | Loan Guarantee and Servicing Agreement
(incorporated by reference to Exhibit 10.2 to
Registration Statement on Form S-1 [No.
33-79328].)                                                            
|
| | 12   |  | Computations of ratio of margin to fixed charges.                                                                                                                                                   
|
| | 99.1 |  | Certification of the Chief Executive Officer
required by Section 906 of the Sarbanes-Oxley
Act of 2002.                                                                                             
|
| | 99.2 |  | Certification of the Chief Financial Officer
required by Section 906 of the Sarbanes-Oxley
Act of 2002.                                                                                             



|b) |  | Forms 8-K dated
September 16, 2002, March 15, 2002 and April 23,
2002.
Form 8-K/A dated April 29, 2002.
Semi-annual Reports to Certificateholders dated September 16, 2002 and March 15, 2002.
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Supplemental information to be furnished with reports filed pursuant to Section 15(d) of the Act by Registrants which have not registered
securities pursuant to Section 12 of the Act.

No annual report, proxy statement, form of proxy or other proxy soliciting material has been sent to Certificateholders, and the Registrant does
not presently contemplate sending any such material subsequent to the filing of this report.

3



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##### 



Pursuant to the requirements of Section 13 or 15(d) of the Securities Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized, in the County of Fairfax, Commonwealth of
Virginia on the 31st day of March, 2003.

RURAL ELECTRIC COOPERATIVE GRANTOR TRUST (SOYLAND) 1993-B1

|    |  |                                                                                                         
|--- |  | --------------------------------------------------------------------------------------------------------
|By: |  | NATIONAL RURAL UTILITIES COOPERATIVE
FINANCE CORPORATION as Servicer                                    
|   
|    |  | By:  /s/ Sheldon C. Petersen

Sheldon C. Petersen, Governor and
Chief Executive Officer

4



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##### 



Report of Independent Auditors

To the Trustee of
   Rural Electric Cooperative Grantor Trust
      (SOYLAND) 1993-B1, and

To the Board of Directors of
   National Rural Utilities Cooperative
      Finance Corporation

We have audited the accompanying statement of assets and liabilities of Rural
Electric Cooperative Grantor Trust (SOYLAND) 1993-B1 (the Trust) as of
December 31, 2002 and the related statements of income and expenses and cash
flows for the year then ended. These financial statements are the
responsibility of the Trusts management. Our responsibility is to express an
opinion on these financial statements based on our audit. The financial
statements of the Trust as of December 31, 2001 and for the years ended
December 31, 2001 and 2000, were audited by other auditors who have ceased
operations and whose report dated March 27, 2002 expressed an unqualified
opinion on these statements.

We conducted our audit in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Rural Electric Cooperative
Grantor Trust (SOYLAND) 1993-B1 at December 31, 2002 and the results of its
operations and its cash flows for the year then ended in conformity with
accounting principles generally accepted in the United States.

Ernst & Young LLP

McLean, Virginia
March 20, 2003

5



---



##### 



This is a copy of the audit report previously issued by Arthur Andersen LLP in
connection with the grantor trusts filing on Form 10-K for the year ended
December 31, 2001. This audit report has not been reissued by Arthur Andersen
LLP in connection with this filing on Form 10-K.

Report of Independent Public Accountants

To the Trustee of
   Rural Electric Cooperative Grantor Trust
      (SOYLAND) 1993-B1, and

To the Board of Directors of
   National Rural Utilities Cooperative
      Finance Corporation

We have audited the accompanying statements of assets and liabilities of Rural
Electric Cooperative Grantor Trust (SOYLAND) 1993-B1 (the Trust) as of
December 31, 2001 and 2000, and the related statements of income and expenses
and cash flows for each of the three years in the period ended December 31,
2001. These financial statements are the responsibility of the Trusts
management. Our responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Rural Electric Cooperative
Grantor Trust (SOYLAND) 1993-B1 as of December 31, 2001 and 2000, and the
results of its operations and its cash flows for each of the three years in the
period ended December 31, 2001, in conformity with accounting principles
generally accepted in the United States.

Arthur Andersen LLP

Vienna, Virginia
March 27, 2002

6



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##### 



RURAL ELECTRIC COOPERATIVE GRANTOR TRUST (SOYLAND) 1993-B1
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 2002 AND 2001

|                                                      |                   |              |            |            |            |   |            |            |            | 
|----------------------------------------------------- | ----------------- | ------------ | ---------- | ---------- | ---------- | - | ---------- | ---------- | ---------- | 
|ASSETS                                                |                   | 2002         |            | 2001      
|                                                      |                   |              |            |           
|Interest receivable                                   |                   | $            | 1,433,895  |            |            | $ | 1,433,895  |           
|Note receivable                                       |                   |              | 49,675,000 |            |            |   | 49,675,000 |           
|                                                      |                   |              |            |            |            |   |            |           
|                                                      |                   | Total Assets |            | $          | 51,108,895 |   |            | $          | 51,108,895 | 
|                                                      |                   |              |            |            |            |   |            |           
|LIABILITIES                                           |                   |              |            |            |            |   |            |           
|Interest payable-Grantor Trust Certificates           |                   | $            | 1,399,717  |            |            | $ | 1,399,717  |           
|Conversion and servicer fees payable                  |                   |              | 34,178     |            |            |   | 34,178     |           
|Rural Electric Cooperative Grantor Trust Certificates |                   |              | 49,675,000 |            |            |   | 49,675,000 |           
|                                                      |                   |              |            |            |            |   |            |           
|                                                      | Total Liabilities |              | $          | 51,108,895 |            |   | $          | 51,108,895 |           
|                                                      |                   |              |            |            |            |   |            |           

See accompanying notes.

7



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##### 



RURAL ELECTRIC COOPERATIVE GRANTOR TRUST (SOYLAND) 1993-B1
STATEMENTS OF INCOME AND EXPENSES
YEARS ENDED DECEMBER 31, 2002, 2001 AND 2000

|                               |                             |                |           |           |           |      |           |           |           |  |           |           |           | 
|------------------------------ | --------------------------- | -------------- | --------- | --------- | --------- | ---- | --------- | --------- | --------- |  | --------- | --------- | --------- | 
|                               |                             |                |           | 2002      |           | 2001 |           | 2000     
|                               |                             |                |           |           |           |      |           |          
|INCOME                         |                             |                |           |           |           |      |           |           |           |  |           |          
|                               | Interest on note receivable |                | $         | 4,411,985 |           |      | $         | 4,411,985 |           |  | $         | 4,411,985 |          
|EXPENSES                       |                             |                |           |           |           |      |           |           |           |  |           |          
|Interest to certificateholders |                             |                | 4,306,823 |           |           |      | 4,306,823 |           |           |  | 4,306,823 |          
|Conversion and servicer fees   |                             |                | 105,162   |           |           |      | 105,162   |           |           |  | 105,162   |          
|                               |                             |                |           |           |           |      |           |           |           |  |           |          
|                               |                             | Total Expenses |           |           | 4,411,985 |      |           |           | 4,411,985 |  |           |           | 4,411,985 | 
|                               |                             |                |           |           |           |      |           |           |           |  |           |          
|                               |                             | Net Income     |           | $         |          |      |           | $         |          |  |           | $         |          | 
|                               |                             |                |           |           |           |      |           |           |           |  |           |          

See accompanying notes.

8



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##### 



RURAL ELECTRIC COOPERATIVE GRANTOR TRUST (SOYLAND) 1993-B1
STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2002, 2001 AND 2000

|                                      |                                           |                                   |   |            |   |      |   |            |   |   |   |            |   | 
|------------------------------------- | ----------------------------------------- | --------------------------------- | - | ---------- | - | ---- | - | ---------- | - | - | - | ---------- | - | 
|                                      |                                           |                                   |   | 2002       |   | 2001 |   | 2000      
|                                      |                                           |                                   |   |            |   |      |   |           
|CASH FLOWS FROM OPERATING ACTIVITIES: |                                           |                                   |   |            |   |      |   |            |   |   |   |           
|                                      | Interest received on note receivable      |                                   | $ | 4,411,985  |   |      | $ | 4,411,985  |   |   | $ | 4,411,985  |  
|                                      | Interest paid to certificateholders       |                                   |   | (4,306,823 | ) |      |   | (4,306,823 | ) |   |   | (4,306,823 | )
|                                      | Fees paid to servicer                     |                                   |   | (105,162   | ) |      |   | (105,162   | ) |   |   | (105,162   | )
|                                      |                                           |                                   |   |            |   |      |   |            |   |   |   |           
|                                      | Net cash provided by operating activities |                                   |   |           |   |      |   |           |   |   |   |           |  
|                                      |                                           |                                   |   |            |   |      |   |            |   |   |   |           
|NET CHANGE IN CASH:                   |                                           |                                   |   |            |   |      |   |            |   |   |   |           
|CASH, beginning of year               |                                           |                                   |  |            |   |      |  |            |   |   |  |           
|                                      |                                           |                                   |   |            |   |      |   |            |   |   |   |           
|CASH, end of year                     |                                           | $                                 |  |            |   | $    |  |            |   | $ |  |           
|                                      |                                           |                                   |   |            |   |      |   |            |   |   |   |           
|ACCRUAL TO CASH BASIS RECONCILIATION: |                                           |                                   |   |            |   |      |   |            |   |   |   |           
|                                      | Accrual basis income                      |                                   | $ |           |   |      | $ |           |   |   | $ |           |  
|                                      | Change in accrual accounts:               |                                   |   |            |   |      |   |            |   |   |   |            |  
|                                      |                                           | Increase in interest receivable   |   |            |  |      |   |            |  |   |   |            |  | 
|                                      |                                           | Increase in interest payable      |   |            |  |      |   |            |  |   |   |            |  | 
|                                      |                                           | Increase in servicer fees payable |   |            |  |      |   |            |  |   |   |            |  | 
|                                      |                                           |                                   |   |            |   |      |   |            |   |   |   |           
|                                      |                                           | Total change in accrual accounts  |   |            |  |      |   |            |  |   |   |            |  | 
|                                      |                                           |                                   |   |            |   |      |   |            |   |   |   |           
|                                      | Net cash provided by operating activities |                                   | $ |           |   |      | $ |           |   |   | $ |           |  
|                                      |                                           |                                   |   |            |   |      |   |            |   |   |   |           

See accompanying notes.

9



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##### 



RURAL ELECTRIC COOPERATIVE GRANTOR TRUST (SOYLAND) 1993-B1
NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2002 AND 2001



|1. |  | ORGANIZATION AND OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   |  | Rural Electric Cooperative Grantor Trust
(Soyland) 1993-B1 (the Trust) was formed
under a Trust Agreement dated October 1,
1993 among National Rural Utilities
Cooperative Finance Corporation (CFC),
Soyland Power Cooperative, Inc. (the
Cooperative) and Bank One, formerly The
First National Bank of Chicago (the
Trustee). On that date, CFC made a loan
to the Cooperative which issued a note (the
Note), evidencing the borrowing, to the
Trust. The Trust issued to CFC, Rural
Electric Cooperative Grantor Trust (Soyland)
8.67% Certificates, due 2018 (the
Certificates) in the amount of
$49,675,000. The Certificates are solely
the obligations of the Trust and are not
insured or guaranteed by CFC, the
Cooperative, the Trustee, the Rural
Utilities Service (RUS) of the United
States Department of Agriculture (USDA)
nor any other governmental agency. Each
Certificate represents an undivided
fractional interest in the Trust. CFC is
the depositor of the Trust and acts as
servicer of the Note. CFC filed, on behalf
of the Trust, a Registration Statement on
Form S-1 (Registration No. 33-79328) which
became effective on May 24, 1994, and resold
the Certificates thereunder. The offering
of the certificates occurred on October 6,
1994.
|  
|   |  | The assets of the Trust consist primarily of
the Note, bearing interest at 8.75% and
maturing 2018, which is guaranteed (the
Guarantee) as to timely payment of
principal and interest by the United States
of America, acting through the Administrator
of RUS. The amounts of principal and
interest payments on the Note held by the
Trust are sufficient to cover the scheduled
principal and interest payments on the
Certificates issued by the Trust and the
scheduled servicer fees. The General
Counsel of the USDA has issued an opinion
that the Guarantee is supported by the full
faith and credit of the United States of
America. The Cooperative has defaulted
under its agreement. RUS makes the
principal and interest payments on the Note
under its Guarantee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  
|   |  | The Trust also receives a conversion fee of
..1317% from the Cooperative. This fee was
derived when the Note from the Cooperative
was converted from a variable to a fixed
interest rate. The fee is paid over the
term of the Note as a yield adjustment. The
conversion fee is passed through to the
servicer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|  
|   |  | Debt service and servicer fee payments on
the Note are made to the Trustee
semi-annually (March 4 and September 4) by
the Cooperative. The Trustee deposits all
such receipts in the Trust account. The
Trustee is authorized by the Trust Agreement
to invest all funds in the Trust account at
the direction of CFC in certain eligible
investments that mature no later than the
business day preceding the day (March 15 and
September 15) such amounts are to be
distributed to the certificate holders and
the servicer. The interest earned on the
investments is distributed to the
Cooperative. Any funds that are not so
invested must be held by the Trustee in the
Trust account. The Trustee may not reinvest
any returns of principal or investment
earnings on eligible investments and the
Trustee may not sell any eligible investment
prior to its maturity except, at the
direction of CFC, to preserve the value of
the corpus of the Trust.                                                                                                                                                                                                                                                                                                                                
|  
|   |  | On or before five business days after each
date on which payments are made on the
Certificates, the Trustee is obligated to
supply the holders of such Certificates a
report provided by the servicer, which
includes certain pertinent information as to
how the payment is to be allocated to
principal, interest, servicer fees and
premium, if any, as well as the principal
balance outstanding after such payment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|  
|   |  | The fiscal year of the Trust is the calendar
year. Within the prescribed period of time
for tax reporting purposes, after the end of
each calendar year during the term of the
Trust Agreement, the Trustee is obligated to
prepare and mail to each certificate holder
of record for the Trust, at any time during
such year, a report setting forth the
information as is reasonably necessary for
the preparation of such certificate holders
Federal income tax return.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|  
|   |  | Principal payments on the Certificates are
scheduled to be repaid over a period of nine
years, beginning in 2010. The principal
payment in 2010 is scheduled to be
$6,600,000. The Certificates are not
subject to redemption prior to September 15,
2003. Thereafter, such Certificates are
subject to optional redemption, in whole and
without premium, upon redemption or purchase
of the related Note. The Trust Agreement
will terminate after payment in full has
been made on the Certificates issued
thereunder.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

10



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##### 





|2. |  | TAX STATUS OF THE TRUST                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   |  | Milbank, Tweed, Hadley & McCloy, Counsel to CFC, has advised CFC with
respect to the Trust that, in its opinion, (i) the Trust will not be
classified as an association taxable as a corporation, but will be
classified as a grantor trust and (ii) each Certificate holder will be
treated for Federal income tax purposes as the owner of an undivided
fractional interest in each of the assets held by the Trust.                                                                                                                                                                                                      
|  
|   |  | It is expected that the Trust will not have any liability for Federal
or state income taxes for the current or future years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|  
|3. |  | NOTE RECEIVABLE, INTEREST, CONVERSION AND SERVICER FEE ACCOUNTING                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   |  | The Trust accounts for its note receivable at cost. No allowance for
loan losses has been recorded due to the guarantee provided by the
United States of America.                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|   |  | The Trust records interest income as it is earned and accrues interest
expense, conversion fees and servicer fees as they are incurred.
Servicer fees represent .08% of the outstanding principal balance of
the Note and conversion fees represent .1317% of the outstanding
principal balance of the Note.                                                                                                                                                                                                                                                                                                                
|  
|4. |  | FAIR VALUE OF FINANCIAL INSTRUMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|  
|   |  | Use of Estimates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  
|   |  | The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management
to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reported period.
The estimates involve judgments with respect to, among other things,
various future factors which are difficult to predict and are beyond
the control of the Trust. With regards to the fair values below,
actual amounts could differ from these estimates.
|  
|   |  | The following disclosure of the estimated fair value of financial
instruments is made in accordance with Statement of Financial
Accounting Standards No. 107, Disclosure about Fair Value of
Financial Instruments. Whenever possible, the estimated fair value
amounts have been determined using quoted market information as of
December 31, 2002 and 2001, along with other valuation methodologies.
Below is a summary of significant methodologies used in estimating
fair value amounts and a schedule of fair values at December 31, 2002
and 2001.                                                               
|  
|   |  | The carrying amounts reported for interest receivable, interest
payable, and conversion and servicer fees payable approximate fair
values due to the short-term maturity of these instruments.                                                                                                                                                                                                                                                                                                                                                                                                                              
|  
|   |  | Note Receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|  
|   |  | Fair value is estimated by discounting the future cash flows using the
current rates at which similar loans would be made to borrowers with
similar credit ratings and for the same remaining maturities.                                                                                                                                                                                                                                                                                                                                                                                                                   
|  
|   |  | Rural Electric Cooperative Grantor Trust Certificates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|  
|   |  | The fair value of the Certificates is estimated using quoted treasury
yields, plus an appropriate credit spread for similar notes carrying
the same credit ratings over the same remaining maturities.                                                                                                                                                                                                                                                                                                                                                                                                                      

11



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##### 



The carrying and estimated fair values of the Trusts financial instruments as of December
31, 2002 and 2001 are as follows:

|                                                      |  |   |            |  |       |   |            |  |       |   |            |  |  |   |            |  | 
|----------------------------------------------------- |  | - | ---------- |  | ----- | - | ---------- |  | ----- | - | ---------- |  |  | - | ---------- |  | 
|                                                      |  |   | 2002       |  | 2001 
|                                                      |  |   |            |  |      
|                                                      |  |   | Carrying   |  | Fair  |   | Carrying   |  | Fair 
|                                                      |  |   | Value      |  | Value |   | Value      |  | Value
|                                                      |  |   |            |  |       |   |            |  |      
|Assets:                                               |  |   |            |  |       |   |            |  |       |   |            |  |  |   |            | 
|Interest receivable                                   |  | $ | 1,433,895  |  |       | $ | 1,433,895  |  |       | $ | 1,433,895  |  |  | $ | 1,433,895  | 
|Note receivable                                       |  |   | 49,675,000 |  |       |   | 66,047,275 |  |       |   | 49,675,000 |  |  |   | 58,988,190 | 
|Liabilities:                                          |  |   |            |  |       |   |            |  |       |   |            |  |  |   |            | 
|Interest payable  Grantor Trust Certificates         |  |   | 1,399,717  |  |       |   | 1,399,717  |  |       |   | 1,399,717  |  |  |   | 1,399,717  | 
|Conversion and servicer
fees payable                  |  |   | 34,178     |  |       |   | 34,178     |  |       |   | 34,178     |  |  |   | 34,178     | 
|Rural Electric Cooperative
Grantor Trust Certificates |  |   | 49,675,000 |  |       |   | 66,173,392 |  |       |   | 49,675,000 |  |  |   | 59,125,980 | 

12



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##### 



National Rural Utilities Cooperative Finance Corporation
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
(18 U.S.C. Section 1350)

I, Sheldon C. Petersen, certify that:



|1. |  | I have reviewed this annual report on Form 10-K, and all reports on
Form 8-K containing distribution or servicing of reports filed in
respect of periods included in the year covered by this annual report
of the Rural Electric Cooperative Grantor Trust (Soyland) 1993-B1;                                                                                         
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. |  | Based on my knowledge, the information in these reports, taken as a
whole, does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made,
in light of the circumstances under which such statements were made,
not misleading as of the last day of the period covered by this annual
report;        
|  
|3. |  | Based on my knowledge, the servicing information required to be
provided to the trustee by the servicer under the pooling and
servicing agreement is included in these reports;                                                                                                                                                                                        
|  
|4. |  | I am responsible for reviewing the activities performed by the
servicer under the pooling and servicing agreement and based upon the
review required under the pooling and servicing agreement, and except
as disclosed in the report, the servicer has fulfilled its obligations
under the servicing agreement; and                                                   
|  
|5. |  | I have disclosed to the registrants certified public accountants all
significant deficiencies relating to the servicers compliance with
the minimum servicing standards in accordance with a review conducted
in compliance with the Uniform Single Attestation Program for Mortgage
Bankers or similar standard as set forth in the pooling and servicing
agreement.

Date:    March 27, 2003

|                                                                  
|------------------------------------------------------------------
|/s/ SHELDON C. PETERSENSheldon C. Petersen
Chief Executive Officer

13



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##### 



National Rural Utilities Cooperative Finance Corporation
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
(18 U.S.C. Section 1350)

I, Steven L. Lilly, certify that:



|1. |  | I have reviewed this annual report on Form 10-K, and all reports on
Form 8-K containing distribution or servicing of reports filed in
respect of periods included in the year covered by this annual report
of the Rural Electric Cooperative Grantor Trust (Soyland) 1993-B1;                                                                                         
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. |  | Based on my knowledge, the information in these reports, taken as a
whole, does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made,
in light of the circumstances under which such statements were made,
not misleading as of the last day of the period covered by this annual
report;        
|  
|3. |  | Based on my knowledge, the servicing information required to be
provided to the trustee by the servicer under the pooling and
servicing agreement is included in these reports;                                                                                                                                                                                        
|  
|4. |  | I am responsible for reviewing the activities performed by the
servicer under the pooling and servicing agreement and based upon the
review required under the pooling and servicing agreement, and except
as disclosed in the report, the servicer has fulfilled its obligations
under the servicing agreement; and                                                   
|  
|5. |  | I have disclosed to the registrants certified public accountants all
significant deficiencies relating to the servicers compliance with
the minimum servicing standards in accordance with a review conducted
in compliance with the Uniform Single Attestation Program for Mortgage
Bankers or similar standard as set forth in the pooling and servicing
agreement.

Date:    March 27, 2003

|                                                                        
|------------------------------------------------------------------------
|/s/ STEVEN L. LILLY

Steven L. Lilly
Chief Financial Officer

14



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##### 



RURAL ELECTRIC COOPERATIVE GRANTOR TRUST (SOYLAND) 1993-B1

Exhibit Index

|        |  |                                                                                                        
|------- |  | -------------------------------------------------------------------------------------------------------
|Exhibit |  |                                                                                                        
|Number  |  | Description of Exhibit                                                                                 
|       
|12      |  | Computations of ratio of margin to fixed charges.                                                      
|99.1    |  | Certification of the Chief Executive Officer required by Section 906 of the Sarbanes-Oxley Act of 2002.
|99.2    |  | Certification of the Chief Financial Officer required by Section 906 of the Sarbanes-Oxley Act of 2002.

15