| **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, 2003 
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 is not an accelerated filer. 
The Registrant has no common or voting stock. 
DOCUMENTS INCORPORATED BY REFERENCE:
None.
   
   
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, 2003 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On April 22, 2002, National      Rural Utilities Cooperative Finance Corporation ("CFC") as      servicer for the Trust rescinded an earlier decision to retain Arthur      Andersen LLP as independent public accountants for the audit of its fiscal      year ending December 31, 2002.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 report      on CFC's financial statements for fiscal year ended December 31, 2001      did not contain an adverse opinion or disclaimer of opinion, nor was it      qualified or modified as to uncertainty, audit scope or accounting      principles.
      During the fiscal year ended      December 31, 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 year. 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.
     

    2    
Part IV
   
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,      2003 and 2002  
Statements of Income and Expenses for the Years Ended      December 31, 2003, 2002 and 2001  
Statements of Cash Flows for the Years Ended December      31, 2003, 2002 and 2001  
Notes to Financial Statements
     
2.
Financial Statement Schedules are omitted because they      are inapplicable.
     
3.
Exhibits
     
Exhibit   
Number 
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.
     
31.1 
Certification of the Chief Executive Officer required      by Section 302 of the Sarbanes-Oxley Act of 2002.
     
31.2 
Certification of the Chief Financial Officer required      by Section 302 of the Sarbanes-Oxley Act of 2002.
     
32.1 
Certification of the Chief Executive Officer required      by Section 906 of the Sarbanes-Oxley Act of 2002.
     
32.2 
Certification of the Chief Financial Officer required      by Section 906 of the Sarbanes-Oxley Act of 2002.      
b)
Forms 8-K dated March 19, 2003 and September 17, 2003.  
Semi-annual Reports to Certificateholders dated      September 17, 2003 and March 19, 2003.
     
    
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
 

  

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 29th day of March,      2004.
   
   
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
   
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 statements      of assets and liabilities of Rural Electric Cooperative Grantor Trust (SOYLAND)      1993-B1 (the "Trust") as of December 31, 2003 and 2002 and the      related statements of income and expenses and cash flows for the years      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 audits. The statements of income and      expenses, changes in deficit and cash flows for the year ended December      31, 2001, 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 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 at      December 31, 2003 and 2002 and the results of its operations and its cash      flows for the years then ended in conformity with accounting principles      generally accepted in the United States.  
Ernst & Young LLP McLean, VirginiaMarch 19, 2004
    

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
 

  
RURAL ELECTRIC COOPERATIVE GRANTOR TRUST (SOYLAND)      1993-B1
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 2003 AND 2002       
 
 
ASSETS 
2003   
2002         
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
      

 

 

     
RURAL ELECTRIC COOPERATIVE GRANTOR TRUST (SOYLAND)      1993-B1
STATEMENTS OF INCOME AND EXPENSES
YEARS ENDED DECEMBER 31, 2003, 2002 AND 2001
   

      

 
 
2003   
2002   
2001             
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   
 
     
RURAL ELECTRIC COOPERATIVE GRANTOR TRUST (SOYLAND)      1993-B1
STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2003, 2002 AND 2001      
   

        

 
 
2003   
2002   
2001    
CASH FLOWS FROM OPERATING ACTIVITIES:                       
Interest received on note receivable
$
4,411,985  
$
4,411,985  
$
4,411,985 
Interest paid to certificateholders ****** |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|