House Report 112-542 - AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND RELATED AGENCIES APPROPRIATIONS BILL, 2013

[House Report 112-542]
[From the U.S. Government Publishing Office]

112th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 112-542

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

AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND
RELATED AGENCIES APPROPRIATIONS BILL, 2013

_______

June 20, 2012.--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. 5973]

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 2013.

CONTENTS

Page
Title I--Agricultural Programs................................... 4
Office of the Secretary...................................... 4
Executive Operations......................................... 6
Office of Civil Rights....................................... 8
Agriculture Buildings and Facilities and Rental Payments..... 8
Office of Inspector General.................................. 9
Office of the Under Secretary for Research, Education, and
Economics.................................................. 9
Economic Research Service.................................... 9
National Agricultural Statistics Service..................... 10
Agricultural Research Service................................ 10
National Institute of Food and Agriculture................... 12
Office of the Under Secretary for Marketing and Regulatory
Programs................................................... 16
Animal and Plant Health Inspection Service................... 16
Agricultural Marketing Service............................... 20
Grain Inspection, Packers, and Stockyards Administration..... 22
Office of the Under Secretary for Food Safety................ 22
Food Safety and Inspection Service........................... 23
Office of the Under Secretary for Farm and Foreign
Agricultural Services...................................... 23
Farm Service Agency.......................................... 24
Risk Management Agency....................................... 26
Corporations................................................. 26
Title II--Conservation Programs.................................. 27
Office of the Under Secretary for Natural Resources and
Environment................................................ 27
Natural Resources Conservation Service....................... 28
Title III--Rural Development Programs............................ 29
Office of the Under Secretary for Rural Development.......... 29
Rural Housing Service........................................ 29
Rural Business--Cooperative Service.......................... 32
Rural Utilities Service...................................... 34
Title IV--Domestic Food Programs................................. 36
Office of the Under Secretary for Food, Nutrition, and
Consumer Services.......................................... 36
Food and Nutrition Service................................... 37
Women, Infants, and Children................................. 39
Supplemental Nutrition Assistance Program.................... 40
Commodity Assistance Program................................. 42
Nutrition Programs Administration............................ 42
Title V--Foreign Assistance and Related Programs................. 42
Foreign Agricultural Service................................. 42
Food for Peace............................................... 43
McGovern-Dole International Food for Education............... 44
Title VI--Related Agencies and Food and Drug Administration...... 44
Food and Drug Administration................................. 44
Commodity Futures Trading Commission......................... 48
Farm Credit Administration................................... 49
Title VII--General Provisions.................................... 50
General Provisions........................................... 50

OVERVIEW

The discretionary spending in this bill totals
$19,405,000,000, which is a decrease of $365,294,000 below the
fiscal year 2012 enacted level and a decrease of $1,744,945,000
below the President's budget request. Overall, the bill results
in a nearly two percent reduction in discretionary spending
from fiscal year 2012.
The funding levels provided in this appropriations bill
continue to demonstrate how seriously this Committee takes the
responsibility to walk back discretionary spending. The
Committee's actions to reduce spending on the many agencies,
programs, and activities funded in this bill will help address
the Nation's debt, deficit, and economic challenges.
However, the bill provides sufficient funding for the
agencies funded in the bill to focus on their core missions.
The U.S. Department of Agriculture (USDA), the Food and Drug
Administration (FDA), the Commodity Futures Trading Commission
(CFTC), and the Farm Credit Administration (FCA) will be able
to continue their critical missions of ensuring food and drug
safety, supporting American agriculture and rural communities
across the Nation, keeping our farms and ranches productive
through agricultural research, helping the most needy through
our domestic feeding programs, working with private land owners
to implement conservation practices, and maintaining the
international food programs that have shown results.
The Committee places a high priority on ensuring taxpayer
funds are wisely spent and effectively managed and includes a
number of provisions in the bill and report to strengthen the
management of certain programs and activities. In part, these
provisions address issues raised in the USDA fiscal year 2011
Annual Performance and Accountability Report regarding improper
payments. In fiscal year 2011, USDA estimated improper payments
to be $5.4 billion, which was more than the $5.0 billion
estimated for fiscal year 2010. This estimate only represents
improper payments and does not include amounts lost through
fraud, waste, or abuse. The Committee's focus on these issues
will raise the taxpayers' confidence in the management of the
programs and activities funded in the bill.

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 continued the process
that began with fiscal year 2012 and kept the Committee's
strong commitment to comprehensive oversight of Federal
discretionary spending under the Subcommittee's jurisdiction.
In order to thoroughly review the President's budget request
for fiscal year 2013 and examine how funds appropriated in
previous fiscal 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--February 17, 2012
USDA Food, Nutrition, and Consumer Services--February
28, 2012
Food and Drug Administration--February 29, 2012
USDA Inspector General--February 29, 2012
USDA Rural Development--March 1, 2012
USDA Marketing and Regulatory Programs--March 6, 2012
USDA Natural Resources and Environment--March 7, 2012
USDA Food Safety--March 8, 2012
USDA Farm and Foreign Agricultural Services--March 20,
2012
USDA Research, Education, and Economics--March 21, 2012
Commodity Futures Trading Commission--March 22, 2012
Several significant topics were covered at the hearings.
The Subcommittee discussed with the Secretary of Agriculture
the administrative savings and efficiencies underway at the
Department, concerns about the number of people enrolled in the
Supplemental Nutrition Assistance Program (SNAP) and its costs,
and the administration's proposals for the 2012 farm bill. The
Subcommittee continued the discussion about SNAP and reviewed
the costs and administrative structures of the Special
Supplemental Program for Women, Infants, and Children (WIC).
During the hearing with FDA, the Subcommittee considered the
interplay between the reauthorization of Prescription Drug User
Fee Act, the Medical Device User Fee Act, and others and the
Subcommittee's fiscal year 2013 bill. The Subcommittee focused
on rooting out fraud and abuse in SNAP, WIC, and farm programs
during its hearing with USDA's Inspector General and discussed
the agency's work regarding USDA's rural development programs.
The Subcommittee continued this discussion at its hearing with
the Rural Development mission area, delving into the issues
related to rural housing, broadband, and electricity programs.
It considered pest management and livestock programs and the
positive effects of USDA's conservation programs on America's
farms and ranches. The Subcommittee reviewed poultry and meat
inspection issues, especially the Food Safety and Inspection
Service's new poultry inspection rule and considered the
agricultural trade outlook, crop insurance reform, and farm
safety net proposals. With CFTC, it reviewed the agency's
staffing needs and regulatory proposals and the CFTC's use of
notional value to size the swaps market at $700 trillion in
defense of a 50 percent increase in its budget request. The
Bank for International Settlements and the Office of the
Comptroller of the Currency indicate that gross value is a more
accurate measure of risk and sizes the market at approximately
$20 trillion. The Committee finds the $680 trillion difference
misleading when rationalizing such an increase.
The Subcommittee will continue to actively monitor the
issues identified and discussed at the hearings, as well as
others relevant to the management of USDA, FDA, CFTC, and FCA
and will maintain its oversight efforts throughout the
remainder of the 112th Congress to ensure taxpayer dollars are
being used wisely and prudently on behalf of the American
people.

TITLE I

AGRICULTURAL PROGRAMS

Production, Processing, and Marketing

Office of the Secretary

(INCLUDING TRANSFERS OF FUNDS)

2012 appropriation.................................... $96,284,000
2013 budget estimate.................................. 111,092,000
Provided in the bill.................................. 89,632,000
Comparison:
2012 appropriation................................ -6,652,000
2013 budget estimate.............................. -21,460,000

For the Office of the Secretary, the Committee provides an
appropriation of $89,632,000.
The Committee recommendation merges the following accounts
under the Office of the Secretary: Office of the Secretary;
Office of Tribal Relations; National Appeals Division; Office
of Homeland Security and Emergency Coordination; Office of
Advocacy and Outreach; Office of the Assistant Secretary for
Administration; Departmental Administration; Office of the
Assistant Secretary for Congressional Relations; Office of
Communications; Office of the General Counsel; and Office of
Ethics. The merger of these accounts will provide the
Department greater flexibility in managing these offices.
The following table reflects the amount provided by the
Committee for each office and activity:

OFFICE OF THE SECRETARY
[Dollars in Thousands]
------------------------------------------------------------------------
FY 2012 FY 2013 Committee
enacted estimate provisions
------------------------------------------------------------------------
Office of the Secretary............... $2,959 $5,051 $2,959
Office of Tribal Relations............ 448 498 439
National Appeals Division............. 12,841 14,225 12,584
Office of Homeland Security and 1,321 1,496 1,295
Emergency Coordination...............
Office of Advocacy and Outreach....... 1,209 1,422 1,185
Office of the Assistant Secretary for 764 804 749
Administration.......................
Departmental Administration........... 20,760 26,227 17,118
Office of Ethics.................. (3,405) (3,420) (3,337)
Office of the Assistant Secretary for 3,576 3,869 3,504
Congressional Relations..............
Office of Communications.............. 8,065 9,006 7,904
Office of the General Counsel......... 39,345 45,074 38,558
Office of Ethics...................... 3,405 3,420 3,337
---------------------------------
Total........................... 96,284 111,092 89,632
------------------------------------------------------------------------

COMMITTEE PROVISIONS

Spending Plans.--Legislative language is included that
requires the Secretary to submit spending plans within 15 days
from the enactment of this Act. The Committee notes that House
Report 112-101, and affirmed in House Report 112-284, requested
that spending plans be submitted within 30 days of enactment of
the fiscal year 2012 Agriculture Appropriations Act. To date,
USDA has yet to submit a single spending plan.
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, 2012, and May 15, 2013, on planned
uses of funding under the authorities of Section 4 and Section
11 of the Commodity Credit Corporation Act.
Notification.--Within 30 days from the enactment of this
Act, the Secretary shall notify the House and Senate Committees
on Appropriations on the allocation of the funds provided to
the Assistant Secretary for Congressional Relations by USDA
agency, along with an explanation for the agency-by-agency
distribution of the funds.
Explanatory Notes.--The Committee appreciates the detailed
information provided in the Explanatory Notes and relies on
this information when considering budget proposals. The
Committee directs the Secretary, beginning with presentation of
the fiscal year 2014 budget, to provide additional information
on programs and activities measured against a baseline of
actual spending in fiscal year 2008 and the previous three
fiscal years. Any increase or decrease to the funding proposed
for fiscal year 2014 should be compared to these years, using
both a numeric table and an accompanying descriptive
explanation. The Committee 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 Committee directs the Department's attention to the
specific changes required of the fiscal year 2014 budget for
certain programs within the National Institute of Food and
Agriculture. The Explanatory Notes should be assembled with the
accounts in the same order as the accounts in the bill. Any
additional deviations from this 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 2013 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 2014 budget and monthly
thereafter. 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.

Executive Operations

OFFICE OF THE CHIEF ECONOMIST

2012 appropriation.................................... $11,177,000
2013 budget estimate.................................. 12,008,000
Provided in the bill.................................. 10,953,000
Comparison:
2012 appropriation................................ -224,000
2013 budget estimate.............................. -1,055,000

COMMITTEE PROVISIONS

For the Office of the Chief Economist, the Committee
provides an appropriation of $10,953,000.
BioPreferred Program.--The Committee directs the Department
to report to the Committees on Appropriations of the House and
Senate, the House Agriculture Committee, and the Senate
Committee on Agriculture, Nutrition, and Forestry within 60
days of enactment of this Act on the justification for the
exclusion of most forest products from the program. The report
also should provide recommendations for including innovative
biobased products, such as forest products, in the existing
program, a modified program, or a new program. The report
should include a discussion of options and proposals under
consideration by USDA regarding forest products and the
BioPreferred Program.

OFFICE OF BUDGET AND PROGRAM ANALYSIS

2012 appropriation.................................... $8,946,000
2013 budget estimate.................................. 9,049,000
Provided in the bill.................................. 8,767,000
Comparison:
2012 appropriation................................ -179,000
2013 budget estimate.............................. -282,000

COMMITTEE PROVISIONS

For the Office of Budget and Program Analysis, the
Committee provides an appropriation of $8,767,000.

Office of the Chief Information Officer

2012 appropriation.................................... $44,031,000
2013 budget estimate.................................. 44,031,000
Provided in the bill.................................. 43,150,000
Comparison:
2012 appropriation................................ -881,000
2013 budget estimate.............................. -881,000

COMMITTEE PROVISIONS

For the Office of the Chief Information Officer, the
Committee provides an appropriation of $43,150,000.

Office of the Chief Financial Officer

2012 appropriation.................................... $5,650,000
2013 budget estimate.................................. 6,247,000
Provided in the bill.................................. 5,537,000
Comparison:
2012 appropriation................................ -113,000
2013 budget estimate.............................. -710,000

COMMITTEE PROVISIONS

For the Office of the Chief Financial Officer, the
Committee provides an appropriation of $5,537,000.
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

2012 appropriation.................................... $848,000
2013 budget estimate.................................. 893,000
Provided in the bill.................................. 831,000
Comparison:
2012 appropriation................................ -17,000
2013 budget estimate.............................. -62,000

COMMITTEE PROVISIONS

For the Office of the Assistant Secretary for Civil Rights,
the Committee provides an appropriation of $831,000.

Office of Civil Rights

2012 appropriation.................................... $21,000,000
2013 budget estimate.................................. 22,692,000
Provided in the bill.................................. 20,580,000
Comparison:
2012 appropriation................................ -420,000
2013 budget estimate.............................. -2,112,000

COMMITTEE PROVISIONS

For the Office of Civil Rights, the Committee provides an
appropriation of $20,580,000.

Agriculture Buildings and Facilities and Rental Payments

2012 appropriation.................................... $230,416,000
2013 budget estimate.................................. 244,057,000
Provided in the bill.................................. 189,167,000
Comparison:
2012 appropriation................................ -41,249,000
2013 budget estimate.............................. -54,890,000

COMMITTEE PROVISIONS

For Agriculture Buildings and Facilities and Rental
Payments, the Committee provides an appropriation of
$189,167,000. The following table represents the Committee's
specific recommendations for this account:

[Dollars in Thousands]
------------------------------------------------------------------------
FY 2012 FY 2013 Committee
enacted estimate provisions
------------------------------------------------------------------------
Rental Payments...................... $164,470 $175,694 $175,694
Department of Homeland Security 13,800 13,473 13,473
Building Security...................
Building Operations.................. 52,146 54,890 0
----------------------------------
Total.......................... 230,416 244,057 189,167
------------------------------------------------------------------------

Hazardous Materials Management

2012 appropriation.................................... $3,592,000
2013 budget estimate.................................. 3,992,000
Provided in the bill.................................. 3,520,000
Comparison:
2012 appropriation................................ -72,000
2013 budget estimate.............................. -472,000

COMMITTEE PROVISIONS

For Hazardous Materials Management, the Committee provides
an appropriation of $3,520,000.

Office of Inspector General

2012 appropriation.................................... $85,621,000
2013 budget estimate.................................. 89,016,000
Provided in the bill.................................. 86,621,000
Comparison:
2012 appropriation................................ +1,000,000
2013 budget estimate.............................. -2,395,000

COMMITTEE PROVISIONS

For the Office of Inspector General, the Committee provides
an appropriation of $86,621,000.
Anti-Fraud Efforts.--The Committee supports OIG's plan to
raise public awareness of successful Federal investigations of
fraud and is particularly pleased with its efforts regarding
the Supplemental Nutrition Assistance Program. Such efforts are
intended to deter participants from engaging in the misuse of
taxpayer dollars and to maintain a high level of integrity in
all of USDA's programs. The Committee encourages OIG to expand
its efforts, working with all of USDA's agencies, to deter
fraud, waste, and abuse in the Department's programs.

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

COMMITTEE PROVISIONS

For the Office of the Under Secretary for Research,
Education, and Economics, the Committee provides an
appropriation of $831,000.
Brown Marmorated Stink Bug.--The Committee appreciates the
continuing work of ARS and NIFA regarding the Brown Marmorated
Stink Bug. This pest is causing significant damage to
agricultural crops, particularly the apple crop in the mid-
Atlantic States, and has spread to more than 30 States and the
District of Columbia. The Committee encourages ARS and NIFA to
work collaboratively with APHIS and State partners to identify
and implement appropriate controls.

Economic Research Service

2012 appropriation.................................... $77,723,000
2013 budget estimate.................................. 77,397,000
Provided in the bill.................................. 75,000,000
Comparison:
2012 appropriation................................ -2,723,000
2013 budget estimate.............................. -2,397,000

COMMITTEE PROVISIONS

For the Economic Research Service, the Committee provides
an appropriation of $75,000,000.

National Agricultural Statistics Service

2012 appropriation.................................... $158,616,000
2013 budget estimate.................................. 179,477,000
Provided in the bill.................................. 175,227,000
Comparison:
2012 appropriation................................ +16,611,000
2013 budget estimate.............................. -4,250,000

COMMITTEE PROVISIONS

For the National Agricultural Statistics Service, the
Committee provides an appropriation of $175,227,000, of which
$61,250,000 is for the Census of Agriculture.
Acreage Crop Reporting and Streamlining Initiative.--
Farmers and ranchers must provide substantial amounts of
information to a number of different Federal agencies in order
to participate in the various farm, conservation, energy, rural
development, and other programs authorized by Congress and
administered by USDA. The Committee recognizes that the
collection and reporting of this information places a burden on
producers and appreciates USDA's efforts to streamline and
reduce the duplicate reporting of certain information. The
Committee directs the Department to report on the Acreage Crop
Reporting and Streamlining Initiative within 60 days after
enactment of this Act and to provide recommendations on
additional streamlining and consolidation opportunities.

Agricultural Research Service

SALARIES AND EXPENSES

2012 appropriation.................................... $1,094,647,000
2013 budget estimate.................................. 1,102,565,000
Provided in the bill.................................. 1,073,499,000
Comparison:
2012 appropriation................................ -21,148,000
2013 budget estimate.............................. -29,066,000

COMMITTEE PROVISIONS

For Salaries and Expenses of the Agricultural Research
Service, the Committee provides an appropriation of
$1,073,499,000.
Aerial Application Research.--The Committee recognizes the
importance of the ARS 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.
Agriculture Technology Innovation.--The Committee
recognizes the importance of the connection between basic
research, applied research, and commercialization and
encourages ARS to work with growers, industry, and other
stakeholders to ensure its technology transfer activities are
coordinated to benefit U.S. agriculture.
Citrus Greening Disease Research.--The Committee commends
ARS's research efforts on citrus greening disease and
encourages the agency to continue working to develop methods to
reduce transmission and enhance immunity in citrus trees and to
work with industry, universities, growers, and other partners
to develop effective control mechanisms.
Domestic and Bighorn Sheep.--The Committee recognizes the
challenges caused by infectious disease problems arising from
wildlife-domestic animal agriculture interactions, particularly
between domestic sheep and wild bighorn sheep. Research has
recently produced an experimental vaccine to protect bighorn
populations from disease but much work still needs to be done
in this area. The Committee encourages ARS to work to determine
the role of domestic sheep in causing die-offs of bighorn sheep
from respiratory disease and develop methods to reduce
transmission and enhance immunity in domestic and bighorn
sheep.
Emerging Cereal Rust Diseases.--The Committee continues to
be concerned about emerging cereal rust diseases, particularly
Ug99, and the threat they pose to domestic and world food
supplies. The Committee encourages ARS to continue its work on
these diseases, including the development of Ug99-resistant
wheat varieties.
Endophyte Research.--The Committee is aware that cool
season grasses in the Pacific Northwest serve a dual function
as a source of fiber for livestock and for their bioremediation
potential on contaminated soils and supports continued research
efforts on these issues.
FOV Race 4 Cotton Research.--The Committee recognizes the
serious threat that fusarium oxysporum f. sp. Vasinfectum
(FOV), particularly the strain FOV Race 4, poses to the U.S.
cotton industry. The Committee encourages ARS to continue
research efforts to combat FOV Race 4 and to work with industry
and other partners to develop effective control measures to
eradicate this disease and prevent its spread nationwide.
Greenhouse Research.--The Committee recognizes that
greenhouses can produce crops during any season independent of
weather and potentially could help reduce the Federal
Government's costs associated with the farm safety net. The
Committee encourages ARS to continue research to develop more
effective production, environmental management, and pest
management systems for greenhouses.
Human Nutrition Research.--The Committee remains concerned
about the high rates of obesity in the Nation and believes that
research on human nutrition to help prevent childhood obesity
and the medical issues related to obesity is important. In
addition, there is strong evidence that nutrition plays a vital
role in how a person ages. The Committee encourages ARS to
continue research relating both to childhood and adult obesity
as well as the effect of nutrition on aging.
National Agricultural Library.--The Committee encourages
ARS to maintain a focus on agriculture-related legal issues
within the National Agricultural Library. The Committee
recognizes agriculture-related legal issues are being litigated
on an increasingly frequent basis, and that the complexity and
scope of these legal issues continues to broaden.
Natural Products Research.--The Committee recognizes the
importance of developing natural products for use in
agriculture in order to produce more toxicologically and
environmentally benign pest management tools and to improve the
nutriceutical value of crops.
Office of Pest Management Policy.--The Committee commends
the Office of Pest Management Policy for its work providing the
Department, other Federal agencies, producers, and others
scientifically sound analysis of pest management issues
important to agriculture, especially methyl bromide transition
and pesticide resistance, and encourages the agency to continue
to support this office.
Research on Sediments.--The Committee recognizes the
importance of finding solutions to the problems associated with
soil erosion, including erosion and sedimentation in stream
channels and the loss of nutrients and agricultural chemicals
from farm fields.
Horticultural Research and Education.--The Committee
recognizes the contributions of the U.S. National Arboretum to
horticultural research and public education, as well as the
services and 446 acres of green space it provides to the
Washington, D.C., community and to international, national, and
regional visitors. The Committee encourages ARS to support
these research and educational activities.
Lyme Disease Research.--The Committee recognizes the
importance of the ongoing research efforts of the ARS regarding
tick-borne illnesses. As the agency continues to build upon its
research efforts and protect humans and livestock from tick-
borne illnesses, the Committee encourages the ARS, in
conjunction with other agencies, to maintain its efforts and
consider both the human and economic impacts of Lyme disease on
communities in the United States.

National Institute of Food and Agriculture

RESEARCH AND EDUCATION ACTIVITIES

2012 appropriation.................................... $705,599,000
2013 budget estimate.................................. 732,730,000
Provided in the bill.................................. 691,487,000
Comparison:
2012 appropriation................................ -14,112,000
2013 budget estimate.............................. -41,243,000

COMMITTEE PROVISIONS

For Research and Education Activities, the Committee
provides an appropriation of $691,487,000.
Agriculture and Food Science Facility and Equipment Grants
for Insular Areas.--The needs of the land-grant institutions in
the insular areas are unique, and upgrading their facilities
and equipment involve added cost factors and logistics compared
with other institutions on the U.S. mainland. The Committee
directs NIFA to review the current state of facilities and
equipment at these institutions and report to the House and
Senate Appropriations Committees by January 30, 2013, with its
findings and recommendations to meet the identified needs.
Budget Request for Fiscal Year 2014.--For the fiscal year
2014 budget request, the Committee directs the Department to
include in the budget funding levels proposed to be allocated
to and the expected publication date, scope, and allocation
level for each request for awards to be published under (1)
each priority area specified in section 2(b)(2) of the
Competitive, Special, and Facilities Research Grant Act (7
U.S.C. 450i(b)(2)); (2) each research and extension project
carried out under section 1621(a) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5811(a)); (3)
each grant awarded under section 1672B(a) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
5925b(a)); (4) each research, education, and extension project
carried out under section 406 of the Research Reform Act of
1998 (7 U.S.C. 7626); and (5) each research and extension
project carried out under section 412 of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7 U.S.C.
7632). The term `request for awards' means a funding
announcement published by NIFA that provides detailed
information on funding opportunities at the Institute,
including the purpose, eligibility, restrictions, focus areas,
evaluation criteria, regulatory information, and instructions
on how to apply for such opportunities.
Policy Research.--The Committee notes that NIFA ignored the
clear direction of Congress regarding the review process for
awards made through the policy research program and directs the
agency to ensure its policies and procedures fully incorporate
the direction provided by Congress through authorization and
appropriation law for each of its programs.
Priority Research.--The Committee recognizes the broad
responsibilities of agricultural research, education,
extension, and economics that Congress has given to NIFA.
However, it is concerned with the focus of many of its grant
programs. Given the current budget constraints, the Committee
directs the agency to prioritize funding for the highest
quality, peer-reviewed, and relevant plant and animal
production and protection research.
Program Consolidation and Streamlining.--The Committee
appreciates the agency's efforts and proposals to consolidate
and streamline its programs and operations to achieve
administrative efficiencies and reduce costs. The Committee
concurs with the proposal to consolidate the Resident
Instruction and Distance Education Grant Programs for Insular
Areas but does not concur with the proposal to consolidate the
various pest management programs. The Committee is concerned
that the proposal to consolidate the pest management programs
was not developed with sufficient input from land-grant
universities, grower associations, industry, and other
interested parties. The Committee encourages NIFA to continue
its efforts, working with all interested parties, to design a
broadly supported and effective pest management research,
education, and extension program that is responsive to the
needs of today and the future.
Unexpended/Unobligated Balances.--In its report
accompanying the fiscal year 2012 agriculture appropriations
bill, the Committee expressed concern about NIFA's large
unexpended/unobligated balances and directed the agency to
provide a report on them, including an explanation for its past
practices and the agency's plans to improve the management of
its appropriation. The report was due September 1, 2011. The
Committee continues to have significant concerns with NIFA's
unexpended/unobligated balances and notes its displeasure that
its request for information was ignored. The Committee directs
the agency to provide this report by August 1, 2012.
The following table reflects the amount provided by the
Committee:

NATIONAL INSTITUTE OF FOOD AND AGRICULTURE RESEARCH AND EDUCATION ACTIVITIES
[Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
FY 2012 FY 2013 Committee
program/activity authorization enacted estimate provisions
----------------------------------------------------------------------------------------------------------------
Hatch Act.................................... 7 U.S.C. 361a-i................ $236,334 $234,834 $231,607
McIntire-Stennis Cooperative Forestry Act.... 16 U.S.C. 582a through a-7..... 32,934 32,934 32,275
Research at 1890 Institutions (Evans-Allen 7 U.S.C. 3222.................. 50,898 50,898 49,880
Program).
Payments to the 1994 Institutions............ 534(a)(1) of P.L. 103-382...... 3,335 3,335 3,268
Education Grants for 1890 Institutions....... 7 U.S.C. 3152(b)............... 19,336 19,336 18,949
Education Grants for Hispanic-Serving 7 U.S.C. 3241.................. 9,219 9,219 9,034
Institutions.
Education Grants for Alaska Native and Native 7 U.S.C. 3156.................. 3,194 3,194 3,130
Hawaiian-Serving Institutions.
Research Grants for 1994 Institutions........ 536 of P.L. 103-382............ 1,801 1,801 1,764
Capacity Building for Non Land-Grant Colleges 7 U.S.C. 3319i................. 4,500 0 0
of Agriculture.
Resident Instruction and Distance Education 7 U.S.C. 3363 and 3362......... 1,650 1,650 1,650
Grants for Insular Areas.
Agriculture and Food Research Initiative..... 7 U.S.C. 450i(b)............... 264,470 325,000 276,515
Veterinary Medicine Loan Repayment........... 7 U.S.C. 3151a................. 4,790 4,790 4,694
Continuing Animal Health and Disease Research 7 U.S.C. 3195.................. 4,000 0 3,920
Program.
Supplemental and Alternative Crops........... 7 U.S.C. 3319d................. 825 0 0
Critical Agricultural Materials Act.......... 7 U.S.C. 178 et seq............ 1,081 0 0
Multicultural Scholars, Graduate Fellowship 7 U.S.C. 3152(b)............... 9,000 10,733 8,820
and Institution Challenge Grants.
Secondary and 2-year Post-Secondary Education 7 U.S.C. 3152(j)............... 900 981 882
Aquaculture Centers.......................... 7 U.S.C. 3322.................. 3,920 3,920 3,841
Sustainable Agriculture Research and 7 U.S.C. 5811.................. 14,471 14,471 14,181
Education.
Farm Business Management..................... 7 U.S.C. 5925f................. 1,450 0 0
Sun Grant Program............................ 7 U.S.C. 8114.................. 2,200 0 0
Policy Research Grant Program................ 7 U.S.C. 3155.................. 4,000 0 0
Rangeland Research........................... 7 U.S.C. 3333.................. 961 0 0
Improved Pest Control:
Expert IPM Decision Support System....... 7 U.S.C. 450i(c)............... 153 0 149
Integrated Pest Management............... 7 U.S.C. 450i(c)............... 2,362 0 2,315
Minor Crop Pest Management (IR-4)........ 7 U.S.C. 450i(c)............... 11,913 0 11,675
Pest Management Alternatives............. 7 U.S.C. 450i(c)............... 1,402 0 1,374
---------------------------------
Total, Improved Pest Control........... ............................... 15,830 0 15,513

Special Research Grants: 7 U.S.C. 450i(c)
Global Change/UV Monitoring.............. ............................. 1,300 1,405 1,274
Potato Research.......................... ............................. 1,350 0 0
Forest Products Research................. ............................. 1,350 0 0
---------------------------------
Total, Special Research Grants......... ............................. 4,000 1,405 1,274

Necessary Expenses of Research and Education
Activities:
Grants Management Systems................ ............................. 2,600 7,830 0
Federal Administration--Other Necessary ............................. 7,900 6,399 10,290
Expenses for Research and Education
Activities.
---------------------------------
Total, Necessary Expenses.............. ............................. 10,500 14,229 10,290
=================================
Total, Research and Education ............................. 705,599 732,730 691,487
Activities.
----------------------------------------------------------------------------------------------------------------

NATIVE AMERICAN INSTITUTIONS ENDOWMENT FUND

2012 appropriation.................................... ($11,880,000)
2013 budget estimate.................................. (11,880,000)
Provided in the bill.................................. (11,642,000)
Comparison:
2012 appropriation................................ -(238,000)
2013 budget estimate.............................. -(238,000)

COMMITTEE PROVISIONS

For the Native American Institutions Endowment Fund, the
Committee provides $11,642,000.

EXTENSION ACTIVITIES

2012 appropriation.................................... $475,183,000
2013 budget estimate.................................. 462,473,000
Provided in the bill.................................. 462,473,000
Comparison:
2012 appropriation................................ -12,710,000
2013 budget estimate.............................. - - -

COMMITTEE PROVISIONS

For Extension Activities, the Committee provides an
appropriation of $462,473,000.
The following table reflects the amount provided by the
Committee:

NATIONAL INSTITUTE OF FOOD AND AGRICULTURE EXTENSION ACTIVITIES
[Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
FY 2012 FY 2013 Committee
program/activity authorization enacted estimate provisions
----------------------------------------------------------------------------------------------------------------
Smith-Lever Act, Section 3(b) and (c) 7 U.S.C. 343(b) and (c) and $294,000 $292,411 $286,062
programs and Cooperative Extension. 208(c) of P.L. 93-471.
Extension Services at 1890 Institutions...... 7 U.S.C. 3221.................. 42,592 42,592 41,442
Extension Services at 1994 Institutions...... 7 U.S.C. 343(b)(3)............. 4,312 4,312 4,195
Facility Improvements at 1890 Institutions... 7 U.S.C. 3222b................. 19,730 19,730 19,197
Renewable Resources Extension Act............ 16 U.S.C. 1671 et seq.......... 3,700 4,060 3,600
Rural Health and Safety Education Programs... 7 U.S.C. 2662(i)............... 1,500 0 1,459
Food Animal Residue Avoidance Database 7 U.S.C. 7642.................. 1,000 0 973
Program.
Women and Minorities in STEM Fields.......... 7 U.S.C. 5925.................. 400 400 389
Grants to Youth Organizations................ 7 U.S.C. 7630.................. 750 0 729
Smith-Lever Act, Section 3(d): 7 U.S.C. 343(d)
Food and Nutrition Education............. ............................. 67,934 67,934 66,099
Pest Management.......................... ............................. 9,918 0 9,650
Farm Safety and Youth Farm Safety ............................. 4,610 4,610 4,485
Education Programs.
New Technologies for Agricultural ............................. 1,550 1,750 1,508
Extension.
Children, Youth, and Families at Risk.... ............................. 7,600 8,395 7,394
Federally Recognized Tribes Extension ............................. 3,039 3,039 2,956
Program.
Sustainable Agriculture Programs......... ............................. 4,696 4,696 4,569
---------------------------------
Total, Section 3(d).................... ............................... 99,347 90,424 96,661
Necessary Expenses of Extension Activities:
Agriculture in the K-12 Classroom........ ............................... 552 552 537
Federal Administration--Other Necessary ............................... 7,300 7,992 7,229
Expenses for Extension Activities.
---------------------------------
Total, Necessary Expenses.............. ............................... 7,852 8,544 7,766
=================================
Total, Extension Activities.......... ............................... 475,183 462,473 462,473
----------------------------------------------------------------------------------------------------------------

INTEGRATED ACTIVITIES

2012 Appropriation.................................... $21,482,000
2013 budget estimate.................................. 43,542,000
Provided in the bill.................................. 21,052,000
Comparison:
2012 appropriation................................ -430,000
2013 budget estimate.............................. -22,490,000

COMMITTEE PROVISIONS

For Integrated Activities, the Committee provides an
appropriation of $21,052,000. The following table reflects the
amount provided by the Committee.

NATIONAL INSTITUTE OF FOOD AND AGRICULTURE INTEGRATED ACTIVITIES
[Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
FY 2012 FY 2013 Committee
program/activity authorization enacted estimate provisions
----------------------------------------------------------------------------------------------------------------
Water Quality Program........................ 7 U.S.C. 7626.................. $4,500 $0 $4,500
Regional Pest Management Centers............. 7 U.S.C. 7626.................. 4,000 0 4,000
Methyl Bromide Transition Program............ 7 U.S.C. 7626.................. 1,996 0 1,996
Organic Transition Program................... 7 U.S.C. 7626.................. 4,000 4,000 4,000
Regional Rural Development Centers........... 7 U.S.C. 450i(c)............... 998 998 568
Food and Agriculture Defense Initiative...... 7 U.S.C. 3351.................. 5,988 5,988 5,988
Sustainable Agriculture Federal-State 7 U.S.C. 5813.................. 0 3,500 0
Matching Grant Program.
Crop Protection Program...................... 7 U.S.C. 7626.................. 0 29,056 0
---------------------------------
Total, Integrated Activities........... ............................... 21,482 43,542 21,052
----------------------------------------------------------------------------------------------------------------

Office of the Under Secretary for Marketing and Regulatory Programs

COMMITTEE PROVISIONS

For the Office of the Under Secretary for Marketing and
Regulatory Programs, the Committee provides an appropriation of
$831,000.

Animal and Plant Health Inspection Service

SALARIES AND EXPENSES

2012 appropriation.................................... $816,534,000
2013 budget estimate.................................. 762,418,000
Provided in the bill.................................. 790,227,000
Comparison:
2012 appropriation................................ -26,307,000
2013 budget estimate.............................. +27,809,000

COMMITTEE PROVISIONS

For the Animal and Plant Health Inspection Service,
Salaries and Expenses, the Committee provides an appropriation
of $790,227,000.
Budget Restructure and Equine Health.--The Committee does
not support the request in the President's fiscal year 2013
budget for APHIS to add an additional line item or account in
order to fund the two separate accounts for Equine and Cervid
Health and Sheep and Goat Health. The increase above the
President's budget request will allow the agency to fill
current vacancies related to equine veterinary medicine and
related expenses.
The following table reflects the amounts provided by the
Committee in accordance with the proposed budget restructure:

------------------------------------------------------------------------
Committee
provisions
------------------------------------------------------------------------
Animal Health Technical Services....................... $34,500,000
Aquatic Animal Health.................................. 2,261,000
Avian Health........................................... 52,000,000
Cattle Health.......................................... 96,000,000
Equine, Cervid, and Small Ruminant Health.............. 19,169,000
National Veterinary Stockpile.......................... 2,500,000
Swine Health........................................... 23,000,000
Veterinary Biologics................................... 16,000,000
Veterinary Diagnostics................................. 31,455,000
Zoonotic Disease Management............................ 9,000,000
----------------
Subtotal, Animal Health.......................... 285,885,000

Agricultural Quarantine Inspection (Appropriated)...... 26,000,000
Cotton Pests........................................... 15,000,000
Field Crop & Rangeland Ecosystem Pests................. 8,867,000
Pest Detection......................................... 25,617,000
Plant Protection Methods Development................... 19,707,000
Specialty Crop Pests................................... 151,450,000
Tree & Wood Pests...................................... 45,000,000
----------------
Subtotal, Plant Health........................... 291,641,000

Wildlife Damage Management............................. 72,500,000
Wildlife Services Methods Development.................. 18,000,000
----------------
Subtotal, Wildlife Services...................... 90,500,000

Animal & Plant Health Regulatory Enforcement........... 16,275,000
Biotechnology Regulatory Services...................... 18,135,000
----------------
Subtotal, Regulatory Services.................... 34,410,000

Contingency Fund....................................... 1,000,000
Emergency Preparedness & Response...................... 16,743,000
----------------
Subtotal, Safeguarding and Emergency Preparedness 17,743,000

Agriculture Import/Export.............................. 13,354,000
Overseas Technical and Trade Operations................ 20,014,000
----------------
Subtotal, Safe Trade & International Technical 33,368,000
Assistance......................................

Animal Welfare......................................... 27,087,000
Horse Protection....................................... 500,000
----------------
Subtotal, Animal Welfare......................... 27,587,000

APHIS Information Technology Infrastructure............ 4,167,000
Physical/Operational Security.......................... 4,926,000
----------------
Subtotal, Agency Management...................... 9,093,000
================
Total, Salaries & Expenses..................... $790,227,000
------------------------------------------------------------------------

Animal Disease Traceability.--The Committee continues to
fund the animal disease traceability system within the amount
provided in the Animal Health and Technical Services account.
The Committee directs USDA to ensure that the system in the
final rule maintains the States' and Tribes' flexibility in
implementing the system while also limiting the financial
burden on the livestock industry. In addition, the final rule
should address liability and privacy concerns raised by
livestock producers. APHIS is directed to continue providing
quarterly reports to the Committee with specific cost
information, assessments of progress, and any deviations from
the proposed scheduled completion dates.
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 maintain transparency and consistency in the
enforcement of the Horse Protection Act (HPA) when dealing with
the regulated industry. APHIS should make it a priority to
apply resources towards the enforcement of the HPA for the most
egregious violators and/or offenders of the Act, including
focus on those events that are not affiliated with, or are
members of, Horse Industry Organizations. These non-affiliated
events and organizations are in violation of HPA, and APHIS's
lack of prioritization of stopping these non-affiliated
activities is of great concern to the Committee.
Animal Welfare.--The bill funds the Animal Welfare program
at $27,087,000 in order 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.
Plant Pest and Disease Management and Disaster.--The
Committee expects APHIS to obligate the $50,000,000 provided in
the 2008 farm bill (P.L. 110-234) only in accordance with
Congressional priorities and the criteria described under
Special Funding Considerations (Section 10201(b)(6) of P.L.
110-234). USDA should prioritize the funds provided by Section
10201 for the purpose of early plant pest detection and
surveillance in conjunction with the funds provided in this
bill.
Huanglongbing.--The Committee encourages APHIS to support
its State partners through exclusion and eradication activities
associated with the Asian Citrus Psyllid, the primary vector of
the bacterium that causes Huanglongbing/citrus greening
disease. In addition, the agency should continue to work with
ARS, citrus-producing States, industry stakeholders, and
universities on their research efforts to develop additional
control mechanisms.
Potato Cyst Nematode Eradication.--The Committee encourages
APHIS to continue funding the Potato 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.
Brown Marmorated Stink Bug.--The Committee is aware of the
growing threat to fruits, vegetables, other crops, and
ornamentals throughout the mid-Atlantic region from the brown
marmorated stink bug. It has been found in more than 30 States
and the District of Columbia. The Committee directs APHIS to
treat this pest as a priority and to continue to assist ARS,
NIFA, and State partners with biological control technology
once such tools are available.
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,
and any other recipient of services in order to reduce the cost
burden on the agency.
Phytopthora ramorum.--The Committee expects APHIS to
continue with efforts to manage P. ramorum while minimizing
disruption to the interstate movement of plant materials and
commercial trade. The agency should use an appropriate portion
of funds from the Specialty Crop Pest account to expeditiously
implement the review of the Federal order governing shipment of
plant materials from quarantined and regulated counties, as
well as to continue its review of the efficacy of the pre-
notification requirements for western nurseries. APHIS should
also continue efforts to partner with the regulated States to
develop new best management practices regarding P. ramorum
during the effective period of the order.
Cattle Fever Tick.--The Committee recognizes the
difficulties that exist in effectively addressing the cattle
fever tick problem on the southern border of the United States
and urges APHIS to work with non-profits, universities, all
involved agencies, and foreign governments to incorporate and
implement new methods and strategies that these entities have
developed.
Wildlife Damage Management.--While receiving support from
cooperators to conduct wildlife management operations, special
emphasis should be placed on those areas such as livestock
protection, predator damage management, oral rabies
vaccination, and other such activities that will reduce or
eliminate threats to agricultural industries.
National Poultry Improvement Plan.--The Committee supports
the cooperative efforts of USDA, States, and industry as part
of the National Poultry Improvement Plan and encourages USDA to
provide sufficient resources to ensure further development of
diagnostic technologies and health standards for the U.S.
poultry industry. Such efforts should contribute towards food
safety related interventions and disease prevention by
minimizing and/or eliminating threats to both humans and
poultry.
Animal Welfare Act (AWA) Compliance.--The Committee
commends APHIS for issuing a proposed regulation to close a
loophole that has allowed large-scale online and conventional
puppy retailers to evade compliance with the AWA. The Committee
expects APHIS to focus AWA expenditures on the large-scale,
for-profit dog sellers that would be regulated under the
agency's proposed rule.

BUILDINGS AND FACILITIES

2012 appropriation.................................... $3,200,000
2013 budget estimate.................................. 3,175,000
Provided in the bill.................................. - - -
Comparison:
2012 appropriation................................ -3,200,000
2013 budget estimate.............................. -3,175,000

COMMITTEE PROVISIONS

The Committee does not provide an appropriation for this
account.

Agricultural Marketing Service

MARKETING SERVICES

2012 appropriation.................................... $82,211,000
2013 budget estimate.................................. 77,032,000
Provided in the bill.................................. 77,032,000
Comparison:
2012 appropriation................................ -5,179,000
2013 budget estimate.............................. - - -

COMMITTEE PROVISIONS

For Marketing Services of the Agricultural Marketing
Service, the Committee provides an appropriation of
$77,032,000.
Microbiological Data Program.--The Committee concurs with
the President's fiscal year 2013 budget request to terminate
the Microbiological Data Program (MDP) in order for the
Agricultural Marketing Service to focus on those activities
more closely aligned with the core mission and avoid
duplication of other Federal Government activities. 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. The termination of the MDP will result in
savings of nearly $4.4 million as proposed in the budget.
Pesticide Recordkeeping Program.--The Committee also
concurs with the Administration on its proposal for the
Pesticide Recordkeeping Program (PRP). As noted in the
Administration's proposal, ``this program is not central to the
core mission of AMS, which is to facilitate the competitive and
efficient marketing of agricultural products.'' Twenty-three
States and one Territory already conduct their own compliance
review programs. AMS's work with the other twenty-seven States
and two Territories will allow these States and Territories to
make a smooth transition to their own compliance review
programs. The termination of the PRP will result in a savings
of $1.8 million as proposed in the budget.
National Organic Program.--The Committee encourages AMS to
continue funding for the National Organic Program at the fiscal
year 2012 level.
National Farmers Market Directory.--The Committee commends
the Agricultural Market Service for its recent work on the
National Farmers Markets Directory. The Committee believes
these efforts greatly help America's farmers.

LIMITATION ON ADMINISTRATIVE EXPENSES

2012 limitation....................................... ($62,101,000)
2013 budget estimate.................................. (62,592,000)
Provided in the bill.................................. (62,101,000)
Comparison:
2012 limitation................................... - - -
2013 budget limitation............................ -491,000

COMMITTEE PROVISIONS

The Committee provides a limitation of $62,101,000 on
Administrative Expenses of the Agricultural Marketing Service.

FUNDS FOR STRENGTHENING MARKETS, INCOME, AND SUPPLY
(SECTION 32)

MARKETING AGREEMENT AND ORDERS

2012 appropriation.................................... ($20,056,000)
2013 budget estimate.................................. (20,056,000)
Provided in the bill.................................. (20,056,000)
Comparison:
2012 appropriation................................ - - -
2013 budget estimate.............................. - - -

COMMITTEE PROVISIONS

For the Marketing Agreements and Orders Program, the
Committee provides a transfer from section 32 funds of
$20,056,000.
The following table reflects the status of this fund for
fiscal years 2012 through 2013:

ESTIMATED TOTAL FUNDS AVAILABLE AND BALANCE CARRIED FORWARD FISCAL
YEARS 2012-2013
[Dollars in Thousands]
------------------------------------------------------------------------
FY 2012 FY 2013
estimate estimate
------------------------------------------------------------------------
Appropriation (30% of Customs Receipts). $7,947,046 $8,990,117

Less Transfers:
Food and Nutrition Service.......... -6,676,207 -7,618,053
Commerce Department................. -109,098 -124,064
-------------------------------
Total, Transfers................ -6,785,305 -7,742,117

Prior Year Appropriation Available, 259,953 206,694
Start of the Year......................
Prior Year Collections and Recoveries... 0 0
Unavailable for Obligations (recoveries -73,694 -73,694
& offsetting collections)..............
Transfer of Prior Year Funds to FNS -117,000 -133,000
(Fruit & Vegetable)....................
Budget Authority.................... 1,231,000 1,248,000
Rescission of Current Year Funds........ -150,000 -180,000
Unavailable for Obligations (Fruit & -133,000 -117,000
Vegetable transfer to FNS).............
-------------------------------
Available for Obligation............ 948,000 951,000

Less Obligations:
Child Nutrition Programs 465,000 465,000
(Entitlement Commodities)..........
12 Percent Commodity Floor 0 0
Requirement......................
State Option Contract............... 5,000 5,000
Removal of Defective Commodities.... 2,500 2,500
Emergency Surplus Removal........... 2,200 0
Disaster Relief..................... 5,000 5,000
Additional Fruits, Vegetables, and 175,600 206,000
Nuts Purchases.....................
Fresh Fruit and Vegetable Program... 20,000 39,076
Estimated Future Needs.............. 224,913 180,637
-------------------------------
Total, Commodity Procurement.... 900,213 903,213

Administrative Funds:...............
Commodity Purchase Support...... 27,731 27,731
Marketing Agreements and Orders. 20,056 20,056
-------------------------------
Total, Administrative Funds... 47,787 47,787
-------------------------------
Total Obligations................... 948,000 951,000

Unobligated Balance, End of Year........ 0 0
Unavailable for Obligations (Fruit and 133,000 117,000
Vegetable transfer to FNS).............
Balances, Collections and Recoveries Not 73,694 73,694
Available..............................
===============================
Total, End of Year Balances..... 206,694 190,694
------------------------------------------------------------------------

PAYMENTS TO STATES AND POSSESSIONS

2012 appropriation.................................... $1,198,000
2013 budget estimate.................................. 1,331,000
Provided in the bill.................................. 1,174,000
Comparison:
2012 appropriation................................ -24,000
2013 budget estimate.............................. -157,000

COMMITTEE PROVISIONS

For Payments to States and Possessions, the Committee
provides an appropriation of $1,174,000.

Grain Inspection, Packers and Stockyards Administration

SALARIES AND EXPENSES

2012 appropriation.................................... $37,750,000
2013 budget estimate.................................. 40,261,000
Provided in the bill.................................. 36,995,000
Comparison:
2012 appropriation................................ -755,000
2013 budget estimate.............................. -3,266,000

COMMITTEE PROVISIONS

For Grain Inspection, Packers and Stockyards
Administration, the Committee provides $36,995,000.

LIMITATION ON INSPECTION AND WEIGHING SERVICES EXPENSES

2012 limitation....................................... ($49,000,000)
2013 budget limitation................................ (50,000,000)
Provided in the bill.................................. (50,000,000)
Comparison:
2012 limitation................................... +1,000,000
2013 budget limitation............................ - - -

COMMITTEE PROVISIONS

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

2012 appropriation.................................... $770,000
2013 budget estimate.................................. 811,000
Provided in the bill.................................. 755,000
Comparison:
2012 appropriation................................ -15,000
2013 budget estimate.............................. -56,000

COMMITTEE PROVISIONS

For the Office of the Under Secretary for Food Safety, the
Committee provides an appropriation of $755,000.

Food Safety and Inspection Service

2012 appropriation.................................... $1,004,427,000
2013 budget estimate.................................. 995,503,000
Provided in the bill.................................. 995,503,000
Comparison:
2012 appropriation................................ -8,924,000
2013 budget estimate.............................. - - -

COMMITTEE PROVISIONS

For the Food Safety and Inspection Service, the Committee
provides an appropriation of $995,503,000.
The Committee recommendation provides the same level of
funding as the President's budget request. This funding level
assumes the promulgation of a final rule to modernize poultry
inspection in the United States by October 1, 2012. The
Committee directs the Under Secretary to notify the Committee
not later than September 15, 2012, on the status of this rule.
If the Committee determines at that time that the final rule
will not be promulgated by the beginning of fiscal year 2013,
the Committee will make a determination on any adjustments to
the funding level for the FSIS.
Humane Methods of Slaughter.--As part of meeting the
Congressional mandate of 148 FTEs for humane handling
verification activities, FSIS shall ensure, to the maximum
extent practicable, that the 23 FTEs using funds appropriated
in fiscal year 2009 for the purpose of improving enforcement of
the Humane Methods of Slaughter Act are dedicated solely to
overseeing compliance with humane handling rules for live
animals as they arrive and are offloaded and handled in pens,
chutes, and stunning areas.
Poultry inspection.--The Committee supports FSIS's efforts
to modernize the poultry inspection system. The Committee
strongly recommends that FSIS require plant employees to be
trained before assuming inspection responsibilities. The
Committee also urges the agency to modify the proposal so that
plants that voluntarily transition to this new inspection
system can participate in National Institute of Occupational
Safety and Health studies on worker safety and line speed.

FARM ASSISTANCE PROGRAMS

Office of the Under Secretary for Farm and Foreign Agricultural
Services

COMMITTEE PROVISIONS

For the Office of the Under Secretary for Farm and Foreign
Agricultural Services, the Committee provides an appropriation
of $831,000.
The Committee is concerned about waste, fraud, and abuse in
programs administered by the Farm Service Agency (FSA) and the
Risk Management Agency (RMA). Therefore, the Secretary is
directed to certify that any newly approved payment, loan,
grant, subsidy, or insurance claim from a program administered
by FSA or RMA does not include individuals or entities that
have been permanently debarred from participating in USDA
programs.

FARM SERVICE AGENCY

SALARIES AND EXPENSES

(INCLUDING TRANSFERS OF FUNDS)

----------------------------------------------------------------------------------------------------------------
transfer from
appropriation program accounts total, FSA S&E
----------------------------------------------------------------------------------------------------------------
2012 appropriation.................................. $1,198,966,000 ($292,583,000) ($1,491,549,000)
2013 budget estimate................................ 1,208,290,000 (308,137,000) (1,516,427,000)
Provided in the bill................................ 1,180,499,000 (287,293,000) (1,467,792,000)
Comparison:
2012 appropriation.............................. -18,467,000 (-5,290,000) (-23,757,000)
2013 budget estimate............................ -27,791,000 (-20,844,000) (-48,635,000)
----------------------------------------------------------------------------------------------------------------

COMMITTEE PROVISIONS

For Salaries and Expenses of the Farm Service Agency, the
Committee provides an appropriation of $1,180,499,000 and
transfers of $287,293,000, for a total program level of
$1,467,792,000.
MIDAS.--The Committee continues to believe the MIDAS
program is the top administrative priority for USDA and
represents a vital component in the delivery of mission-based
services. The Committee directs the Secretary to take the steps
necessary to ensure the timely and successful implementation of
MIDAS.

STATE MEDIATION GRANTS

2012 appropriation.................................... $3,759,000
2013 budget estimate.................................. 4,369,000
Provided in the bill.................................. 3,684,000
Comparison:
2012 appropriation................................ -75,000
2013 budget estimate.............................. -685,000

COMMITTEE PROVISIONS

For State Mediation Grants, the Committee provides an
appropriation of $3,684,000.

GRASSROOTS SOURCE WATER PROTECTION PROGRAM

2012 appropriation.................................... $3,817,000
2013 budget estimate.................................. - - -
Provided in the bill.................................. 3,741,000
Comparison:
2012 appropriation................................ -76,000
2013 budget estimate.............................. +3,741,000

COMMITTEE PROVISIONS

For the Grassroots Source Water Protection Program, the
Committee provides an appropriation of $3,741,000.

DAIRY INDEMNITY PROGRAM

(INCLUDING TRANSFER OF FUNDS)

2012 appropriation.................................... \1\$100,000
2013 budget estimate.................................. \1\100,000
Provided in the bill.................................. \1\100,000
Comparison:
2012 appropriation................................ - - -
2013 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 2013 budget request).

AGRICULTURAL CREDIT INSURANCE FUND PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

ESTIMATED LOAN LEVELS

2012 loan level....................................... $4,787,090,000
2013 budget estimate.................................. 4,781,747,000
Provided in the bill.................................. 4,787,090,000
Comparison:
2012 loan level................................... - - -
2013 budget estimate.............................. +5,343,000

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:

AGRICULTURAL CREDIT PROGRAMS--LOAN LEVELS
[Dollars in Thousands]
------------------------------------------------------------------------
FY 2012 FY 2013 Committee
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................ 1,050,090 1,050,089 1,050,090
Unsubsidized 1,500,000 1,500,000 1,500,000
guaranteed...........
Emergency loans........... 0 34,658 0
Indian tribe land 2,000 2,000 2,000
acquisition loans........
Conservation loans:
Guaranteed............ 150,000 150,000 150,000
Indian highly fractionated 10,000 10,000 10,000
land.....................
Boll weevil eradication... 100,000 60,000 100,000
-----------------------------------------
Total................. 4,787,090 4,781,747 4,787,090
------------------------------------------------------------------------

ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS
----------------------------------------------------------------------------------------------------------------
direct loan guaranteed loan administrative
subsidy subsidy grants expenses
----------------------------------------------------------------------------------------------------------------
2012 appropriation.................. $82,113,000 $26,100,000 0 $297,632,000
2013 budget estimate................ 80,120,000 17,850,000 $2,500,000 312,897,000
Provided in the bill................ 78,803,000 17,850,000 0 292,241,000
Comparison:
2012 appropriation.............. -3,310,000 --8,250,000 0 -5,391,000
2013 budget estimate............ -1,317,000 0 -2,500,000 -20,656,000
----------------------------------------------------------------------------------------------------------------

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

AGRICULTURAL CREDIT PROGRAMS--SUBSIDIES AND GRANTS
[Dollars in Thousands]
------------------------------------------------------------------------
FY 2012 FY 2013 Committee
enacted estimate provisions
------------------------------------------------------------------------
Farm loan subsidies:
Farm ownership:
Direct................ $22,800 $20,140 $20,140
Farm operating:
Direct................ 59,120 58,490 58,490
Unsubsidized 26,100 17,850 17,850
guaranteed...........
Emergency loans........... 0 1,317 0
Indian highly fractionated 193 173 173
land.....................
-----------------------------------------
Total, Farm loan 108,213 97,970 96,653
subsidies............
Individual development 0 2,500 0
accounts.............
-----------------------------------------
Total................. 108,213 100,470 96,653
ACIF expenses:
Salaries and expenses..... 289,728 304,977 284,495
Administrative expenses... 7,904 7,920 7,746
-----------------------------------------
Total, ACIF expenses...... 297,632 312,897 292,241
------------------------------------------------------------------------

Risk Management Agency

2012 appropriation.................................... $74,900,000
2013 budget estimate.................................. 74,900,000
Provided in the bill.................................. 73,402,000
Comparison:
2012 appropriation................................ -1,498,000
2013 budget estimate.............................. -1,498,000

COMMITTEE PROVISIONS

For the Risk Management Agency, the Committee provides an
appropriation of $73,402,000.

CORPORATIONS

Federal Crop Insurance Corporation Fund

2012 appropriation.................................... \1\$3,142,375,00
0
2013 budget estimate.................................. \1\9,517,433,000
Provided in the bill.................................. \1\9,517,433,000
Comparison:
2012 appropriation................................ +6,375,058,000
2013 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 $9,517,433,000 in the President's
fiscal year 2013 budget request).

Commodity Credit Corporation Fund

REIMBURSEMENT FOR NET REALIZED LOSSES

(INCLUDING TRANSFERS OF FUNDS)\1\

2012 appropriation.................................... $14,071,000,000
2013 budget estimate.................................. 11,018,509,000
Provided in the bill.................................. 11,018,509,000
Comparison:
2012 appropriation................................ -3,052,491,000
2013 budget estimate.............................. - - -

\1\Current 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 $11,018,509,000 in
the President's fiscal year 2013 budget request).

HAZARDOUS WASTE MANAGEMENT

(LIMITATION ON EXPENSES)

2012 limitation....................................... ($5,000,000)
2013 budget estimate.................................. (5,000,000)
Provided in the bill.................................. (5,000,000)
Comparison:
2012 limitation................................... - - -
2013 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

COMMITTEE PROVISIONS

For the Office of the Under Secretary for Natural Resources
and Environment, the Committee provides an appropriation of
$831,000.

Natural Resources Conservation Service

CONSERVATION OPERATIONS

2012 appropriation.................................... $828,159,000
2013 budget estimate.................................. 827,500,000
Provided in the bill.................................. 812,032,000
Comparison:
2012 appropriation................................ -16,127,000
2013 budget estimate.............................. -15,468,000

COMMITTEE PROVISIONS

For Conservation Operations, the Committee provides an
appropriation of $812,032,000.
The Committee provides $9,114,000 for the Snow Survey and
Water Forecasting Program; $9,212,000 for the Plant Materials
Centers; and $78,400,000 for the Soil Surveys Program. The
Committee provides $715,306,000 for conservation technical
assistance and directs NRCS to maintain level funding for the
Conservation Effects Assessment Project (CEAP) and the
Conservation Delivery Streamlining Initiative (CDSI). The
Committee is pleased with the results of CEAP and the agency's
efforts to modernize the delivery of conservation programs and
services through CDSI and encourages the continuation of these
efforts.
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.
Sage Grouse Initiative.--The Committee supports NRCS's sage
grouse conservation efforts. Through the initiative, NRCS
provides technical and financial assistance to help landowners
conserve sage grouse habitat on their land. The initiative is
an integral part of efforts by Federal agencies, several
western States, and private landowners to help preclude the
listing of the sage grouse as an endangered species.
Wetlands Reserve Program.--The Committee is aware of
concerns regarding the Wetlands Reserve Program's (WRP)
easement valuation process and how potential WRP easements
interact with public drainage systems. The Committee directs
NRCS to report to the Committee within 60 days of enactment of
this Act on the regulations and policies governing the program
to ensure it is appropriately designed and implemented to avoid
the payment above the reasonable value of farmland for
easements and to ensure wetland easement conservation plans
adequately permit the repair, improvement, and inspection of
land that is necessary to maintain existing public drainage
systems.

WATERSHED REHABILITATION PROGRAM

2012 appropriation.................................... $15,000,000
2013 budget estimate.................................. - - -
Provided in the bill.................................. 14,700,000
Comparison:
2012 appropriation................................ -300,000
2013 budget estimate.............................. +14,700,000

COMMITTEE PROVISIONS

For the Watershed Rehabilitation Program, the Committee
provides an appropriation of $14,700,000.

TITLE III

RURAL DEVELOPMENT PROGRAMS

Office of the Under Secretary for Rural Development

COMMITTEE PROVISIONS

For the Office of the Under Secretary for Rural
Development, the Committee provides an appropriation of
$831,000.
Regional Innovation Initiative.--The fiscal year 2013
budget request proposes a Regional Innovation Initiative
similar to the proposal included in the fiscal year 2012
request. The Committee is unable to provide any funding or
authorization for the initiative as requests for additional
information on the specific need, purpose, and plans for the
initiative continue to go unanswered.

Rural Development Salaries and Expenses

(INCLUDING TRANSFERS OF FUNDS)

----------------------------------------------------------------------------------------------------------------
Committee
FY 2012 level FY 2013 estimate provisions
----------------------------------------------------------------------------------------------------------------
Appropriation.......................................... $182,023,000 $206,857,000 $178,383,000
Transfer from:
Rural Housing Insurance Fund Program Account....... 430,800,000 408,127,000 408,127,000
Rural Development Loan Fund Program Account........ 4,684,000 4,438,000 4,438,000
Rural Electrification and Telecommunications Loan 36,382,000 34,467,000 34,467,000
Program Account...................................
--------------------------------------------------------
Total, RD Salaries and Expenses.................... 653,889,000 653,889,000 625,415,000
----------------------------------------------------------------------------------------------------------------

COMMITTEE PROVISIONS

For Salaries and Expenses of the Rural Development mission
area, the Committee provides an appropriation of $178,383,000.
The Committee expects that the appropriation for salary and
expenses provided in this Act will be allocated to agency field
offices and State offices in a manner that is representative of
the costs of program delivery and portfolio servicing in those
areas and takes into account factors, such as geographic land
mass represented, anticipated program delivery costs, and
portfolio servicing costs.

Rural Housing Service

RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

----------------------------------------------------------------------------------------------------------------
loan level subsidy level administrative expenses
----------------------------------------------------------------------------------------------------------------
2012 appropriation................... $25,140,269,000 $73,091,000 $430,800,000
2013 budget estimate................. 24,856,685,000 51,449,000 408,127,000
Provided in the bill................. 24,879,942,000 58,268,000 408,127,000
Comparison:
2012 appropriation............... -260,327,000 -14,823,000 -22,673,000
2013 budget estimate............. +23,257,000 +6,819,000 0
----------------------------------------------------------------------------------------------------------------

COMMITTEE PROVISIONS

For the Rural Housing Insurance Fund program account, the
Committee provides a loan level of $24,879,942,000.
The Committee does not concur with the proposal to set
aside funding in the single family direct loan program and
directs the Department to operate the program without these set
asides.
The Committee authorizes the Rural Housing Service to use
funding provided by the settlement between the United States
and certain mortgage lenders to pay for costs associated with
servicing single family housing loans guaranteed by the agency.
The Committee notes that this is one-time funding, to be
available until expended, and directs the agency not to hire
any permanent full-time equivalent staff or to make commitments
to pay for new staff in the future with these funds.
The following table reflects the loan levels for the Rural
Housing Insurance Fund program account:

[Dollars in Thousands]
------------------------------------------------------------------------
FY 2012 FY 2013 Committee
level estimate provisions
------------------------------------------------------------------------
Rural Housing Insurance Fund
Loans:
Single family housing (sec
502):
Direct................ $900,000 $652,764 $652,764
Unsubsidized 24,000,000 24,000,000 24,000,000
guaranteed...........
Housing repair (sec 504).. 10,000 27,952 10,190
Rental housing (sec 515).. 64,478 0 31,277
Multi-family guaranteed 130,000 150,000 150,000
(sec 538)................
Credit sales of acquired 10,000 0 10,000
property.................
Self-help housing land 5,000 0 5,000
development fund.........
Farm labor housing........ 20,791 25,969 20,711
-----------------------------------------
Total, Loan authorization. 25,140,269 24,856,685 24,879,942
------------------------------------------------------------------------

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

ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS
[Dollars in Thousands]
------------------------------------------------------------------------
FY 2012 FY 2013 Committee
level estimate provisions
------------------------------------------------------------------------
Rural Housing Insurance Fund
Program Account (loan
subsidies and grants):
Single family housing (sec
502):
Direct................ $42,570 $38,970 $38,970
Unsubsidized 0 0 0
guaranteed...........
Housing repair (sec 504).. 1,421 3,821 1,393
Rental housing (sec 515).. 22,000 0 11,000
Multi-family guaranteed 0 0 0
(sec 538)................
Credit sales of acquired 0 0 0
property.................
Self-help housing land 0 0 0
development fund.........
Farm labor housing........ 7,100 8,658 6,905
-----------------------------------------
Total, Loan subsidies..... 73,091 51,449 58,268
Farm labor housing grants. 7,100 8,868 6,905
RHIF expenses:
Administrative 430,800 408,127 408,127
expenses.............
------------------------------------------------------------------------

RENTAL ASSISTANCE PROGRAM

2012 appropriation.................................... $904,653,000
2013 budget estimate.................................. 907,128,000
Provided in the bill.................................. 888,060,000
Comparison:
2012 appropriation................................ -16,593,000
2013 budget estimate.............................. -19,068,000

COMMITTEE PROVISIONS

For the Rental Assistance Program, the Committee provides a
program level of $888,060,000.

MULTIFAMILY HOUSING REVITALIZATION PROGRAM ACCOUNT

2012 appropriation.................................... $13,000,000
2013 budget estimate.................................. 46,942,000
Provided in the bill.................................. 12,740,000
Comparison:
2012 appropriation................................ -260,000
2013 budget estimate.............................. -34,202,000

For the Multifamily Housing Revitalization Program Account,
the Committee provides an appropriation of $12,740,000,
including $10,780,000 for the rural housing voucher program.
The Committee recognizes that a change in focus in the
management of the multifamily housing portfolio may be
necessary. However, the Committee is concerned about the
dramatic shifts in the proposed program funding levels over the
past two fiscal years and directs the Department to develop and
present to the Committees on Appropriations of the House and
Senate a definitive plan to address rural rental housing needs.

MUTUAL AND SELF-HELP HOUSING GRANTS

2012 appropriation.................................... $30,000,000
2013 budget estimate.................................. 10,000,000
Provided in the bill.................................. 15,000,000
Comparison:
2012 appropriation................................ -15,000,000
2013 budget estimate.............................. +5,000,000

COMMITTEE PROVISIONS

For Mutual and Self-Help Housing Grants, the Committee
provides an appropriation of $15,000,000.

RURAL HOUSING ASSISTANCE GRANTS

2012 appropriation.................................... $33,136,000
2013 budget estimate.................................. 28,216,000
Provided in the bill.................................. 17,000,000
Comparison:
2012 appropriation................................ -16,136,000
2013 budget estimate.............................. -11,216,000

COMMITTEE PROVISIONS

For the Rural Housing Assistance Grants program, the
Committee provides an appropriation of $17,000,000.

RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT

(INCLUDING TRANSFERS OF FUNDS)

2012 appropriation.................................... $29,291,000
2013 budget estimate.................................. 25,000,000
Provided in the bill.................................. 21,867,000
Comparison:
2012 appropriation................................ -7,424,000
2013 budget estimate.............................. -3,133,000

COMMITTEE PROVISIONS

For the Rural Community Facilities Program Account, the
Committee provides an appropriation of $21,867,000.
The following table provides the Committee's
recommendations as compared to the budget request:

[Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
FY 2013 Committee
FY 2012 level estimate provisions
----------------------------------------------------------------------------------------------------------------
Loan levels:
Community facility direct loans....................... ($1,300,000) ($2,000,000) ($2,200,000)
Community facility guaranteed loans................... (105,708) (0) (57,481)
Subsidy and grants:
Community facility direct loans....................... 0 0 0
Community facility guaranteed loans................... 5,000 0 3,880
Community facility grants............................. 11,363 13,000 11,136
Rural Community Development Initiative................ 3,621 8,000 3,549
Economic Impact Initiative............................ 5,938 0 0
Tribal college grants................................. 3,369 4,000 3,302
-----------------------------------------------------
Total, Rural Community Facilities Program subsidy 29,291 25,000 21,867
and grants.......................................
----------------------------------------------------------------------------------------------------------------

The following program is included in bill language for the
Rural Community Facilities Program: $3,549,000 is for the Rural
Community Development Initiative.

Rural Business-Cooperative Service

RURAL BUSINESS PROGRAM ACCOUNT

(INCLUDING TRANSFERS OF FUNDS)

2012 appropriation.................................... $74,809,000
2013 budget estimate.................................. 86,159,000
Provided in the bill.................................. 65,341,000
Comparison:
2012 appropriation................................ -9,468,000
2013 budget estimate.............................. -20,818,000

COMMITTEE PROVISIONS

For the Rural Business Program Account, the Committee
provides an appropriation of $65,341,000.
The following table provides the Committee's
recommendations as compared to the budget request:

[Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
FY 2013 Committee
FY 2012 level estimate provisions
----------------------------------------------------------------------------------------------------------------
Loan level:
Business and industry guaranteed loans...................... ($822,886) ($821,224) ($660,948)
Subsidy and grants:
Business and industry guaranteed loans...................... 45,341 56,336 45,341
Rural business enterprise grants............................ 24,318 29,823 20,000
Rural business opportunity grants........................... 2,250 0 0
Delta regional authority.................................... 2,900 0 0
-----------------------------------------------
Total, Rural Business Program subsidy and grants........ 74,809 86,159 65,341
----------------------------------------------------------------------------------------------------------------

The following programs are included in bill language for
the Rural Business Program account: $490,000 for rural
transportation technical assistance; and $3,920,000 for
Federally Recognized Native American Tribes, of which $245,000
is for transportation technical assistance.

RURAL DEVELOPMENT LOAN FUND PROGRAM ACCOUNT
----------------------------------------------------------------------------------------------------------------
administrative
loan level subsidy level expenses
----------------------------------------------------------------------------------------------------------------
2012 appropriation.............................................. $17,710,000 $6,000,000 $4,684,000
2013 budget estimate............................................ 18,889,000 6,052,000 4,438,000
Provided in the bill............................................ 17,710,000 5,674,000 4,438,000
Comparison:
2012 appropriation.......................................... 0 -326,000 -246,000
2013 budget estimate........................................ -1,179,000 -378,000 0
----------------------------------------------------------------------------------------------------------------

COMMITTEE PROVISIONS

For the Rural Development Loan Fund program account, the
Committee provides for a loan level of $17,710,000.
For the loan subsidy, the Committee provides an
appropriation of $5,674,000.
In addition, the Committee provides $4,438,000 for
administrative expenses.

RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT--(INCLUDING RESCISSION
OF FUNDS)
------------------------------------------------------------------------
loan level
------------------------------------------------------------------------
2012 appropriation...................................... $33,077,000
2013 budget estimate.................................... 33,077,000
Provided in the bill.................................... 33,077,000
Comparison:
2012 appropriation.................................. 0
2013 budget estimate................................ 0
------------------------------------------------------------------------

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

2012 appropriation.................................... $25,050,000
2013 budget estimate.................................. 27,706,000
Provided in the bill.................................. 19,645,000
Comparison:
2012 appropriation................................ -5,405,000
2013 budget estimate.............................. -8,061,000

COMMITTEE PROVISIONS

For Rural Cooperative Development Grants, the Committee
provides an appropriation of $19,645,000.
The total includes $2,205,000 for a cooperative agreement
for the Appropriate Technology Transfer for Rural Areas
program; $2,940,000 for cooperatives or associations of
cooperatives whose primary focus is to provide assistance to
small, minority producers; and $10,000,000 for the value-added
agricultural product market development grant program.

RENEWABLE ENERGY FOR AMERICA PROGRAM

2012 appropriation.................................... $3,400,000
2013 budget estimate.................................. 4,575,000
Provided in the bill.................................. 3,332,000
Comparison:
2012 appropriation................................ -68,000
2013 budget estimate.............................. -1,243,000

COMMITTEE PROVISIONS

For the Renewable Energy for America Program, the Committee
provides a loan level of $13,878,000 and an appropriation of
$3,332,000 for the loan subsidy to make loans 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)

2012 appropriation.................................... $513,000,000
2013 budget estimate.................................. 495,700,000
Provided in the bill.................................. 484,499,000
Comparison:
2012 appropriation................................ -28,501,000
2013 budget estimate.............................. -11,201,000

COMMITTEE PROVISIONS

For the Rural Water and Waste Disposal Program Account, the
Committee provides an appropriation of $484,499,000.
The following table provides the Committee's
recommendations as compared to the budget request:

[Dollars in Thousands]
------------------------------------------------------------------------
FY 2012 FY 2013 Committee
level estimate provisions
------------------------------------------------------------------------
Loan levels:
Water and waste direct ($730,689) ($1,000,000) ($731,103)
loans....................
Water and waste guaranteed (62,893) 0 (61,321)
loans....................
Subsidies and Grants:
Direct Subsidy............ 70,000 80,700 59,000
Guaranteed Subsidy........ 1,000 0 650
Water and Waste Revolving 497 0 497
Fund.....................
Water Well System Grants.. 993 0 993
Grants for the Colonias 66,500 59,484 59,484
and AK/HI................
Water and Waste Technical 19,000 14,871 18,620
Assistance Grants........
Circuit Rider Program..... 15,000 12,393 14,700
Solid Waste Management 3,400 4,000 3,332
Grants...................
High Energy Cost Grants... 9,500 0 0
Water and Waste Disposal 327,110 324,252 327,223
Grants...................
-----------------------------------------
Total, Subsidies and $513,000 $495,700 $484,499
Grants...............
------------------------------------------------------------------------

RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM ACCOUNT (INCLUDING TRANSFER OF FUNDS)
----------------------------------------------------------------------------------------------------------------
subsidy administrative
loan level level expenses
----------------------------------------------------------------------------------------------------------------
2012 appropriation.............................................. $7,714,286,000 $594,000 $36,382,000
2013 budget estimate............................................ 6,790,000,000 0 34,467,000
Provided in the bill............................................ 7,290,000,000 0 34,467,000
Comparison:
2012 appropriation.......................................... -424,286,000 -594,000 -1,915,000
2013 budget estimate........................................ +500,000,000 0 0
----------------------------------------------------------------------------------------------------------------

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 $34,467,000
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.
The following table reflects the loan levels for the Rural
Electrification and Telecommunications Loans Program account:

[Dollars in Thousands]
------------------------------------------------------------------------
FY 2012 FY 2013 Committee
enacted estimate provisions
------------------------------------------------------------------------
Loan authorizations:
Electric:
Direct, 5%............ $100,000 $0 $100,000
Direct, FFB........... 6,500,000 0 6,500,000
Treasury Plus......... 0 6,100,000 0
Guaranteed 424,286 0 0
underwriting.........
-----------------------------------------
Subtotal............ 7,024,286 6,100,000 6,600,000

Telecommunications:
Direct, 5%............ 145,000 0 0
Direct, Treasury rate. 250,000 690,000 690,000
Direct, FFB........... 295,000 0 0
-----------------------------------------
Subtotal............ 690,000 690,000 690,000
=========================================
Total, Loan 7,714,286 6,790,000 7,290,000
authorizations...
------------------------------------------------------------------------

DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND PROGRAM
----------------------------------------------------------------------------------------------------------------
FY 2012 FY 2013 Committee
enacted estimate provisions
----------------------------------------------------------------------------------------------------------------
Broadband Program:
Loan authorization.......................................... $212,014,000 $94,139,000 $21,119,000
Loan subsidy................................................ 6,000,000 8,915,000 2,000,000
Grants...................................................... 10,372,000 13,379,000 10,165,000

Distance learning and telemedicine:
Grants...................................................... 21,000,000 24,950,000 15,000,000
-----------------------------------------------
Total, Loan subsidy and grants.......................... 37,372,000 47,244,000 27,165,000
----------------------------------------------------------------------------------------------------------------

COMMITTEE PROVISIONS

For the Distance Learning, Telemedicine, and Broadband
Program, the Committee provides an appropriation of
$27,165,000, which includes $15,000,000 for distance learning
and telemedicine grants.
Broadband Loan Program Priorities.--Funding provided for
the broadband program is intended to promote broadband
availability in those areas where there is not otherwise a
business case for private investment in a broadband network.
The Committee directs RUS to focus expenditures on projects
that bring broadband service to currently unserved households.
Broadband Program.--The Committee is concerned and
disappointed with the progress of broadband projects funded
under the American Recovery & Reinvestment Act and directs the
Department to develop a plan of action to significantly quicken
the pace of project review, approval, and completion in
managing broadband projects. The Committee also requests the
Department to report on how the Federal Communications
Commission's Universal Service Fund and Intercarrier
Compensation reform and modernization plans are likely to
affect Rural Utility Service telecommunications borrowers. The
Committee directs that both reports be provided to the
Committees on Appropriations of the House and Senate within 90
days of enactment of this Act.

TITLE IV

DOMESTIC FOOD PROGRAMS

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

COMMITTEE PROVISIONS

For the Office of the Under Secretary for Food, Nutrition,
and Consumer Services, the Committee provides an appropriation
of $755,000.
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.
The Committee directs USDA to issue guidelines to the
appropriate State agencies within 60 days of enactment of this
Act on a requirement to include the USDA Inspector General (IG)
Fraud Hotline and the IG website address on all SNAP and WIC
Electronic Benefit Transfer cards and WIC coupons or vouchers
for the purpose of reporting potential fraud, waste, and abuse
by vendors and/or participants.
The Committee is concerned about fraud committed by vendors
and retail establishments in the SNAP and WIC programs and the
corresponding loss of public tax dollars. Therefore, the
Secretary is directed to certify that any newly approved
application from a vendor/retailer to participate in WIC or
SNAP does not include individuals or entities that have been
permanently debarred from participating in either of the
programs.
Program Integrity and Identity Theft.--As part of USDA's
effort to reduce fraud, ensure the integrity of its feeding
programs, and safeguard the identities of participants in
nutrition assistance programs, the Committee encourages the
Secretary to provide a report on the prevalence of identity
theft against nutrition program recipients and the need for
identity theft protection educational materials to program
providers and recipients.
SNAP Dietary Offerings.--The Committee believes USDA should
ensure that SNAP serves as a supplemental nutrition safety net
as well as a means for low-income participants to improve their
dietary intake. The Committee understands that USDA is
conducting research into SNAP purchasing patterns, and requests
an update by August 1, 2012, describing the market research as
well as a projected completion date. Upon completion of the
market research, USDA shall brief the Committee on its findings
and a formal report transmitting the results of the research
will be made to this Committee within 30 days of its
completion. Lastly, the Under Secretary is directed to convene
a meeting of stakeholders for the purpose of seeking input on
ways to improve the diets of SNAP recipients.

Food and Nutrition Service

CHILD NUTRITION PROGRAMS

(INCLUDING TRANSFERS OF FUNDS)

2012 appropriation.................................... $18,151,176,000
2013 budget estimate.................................. 19,694,000,000
Provided in the bill.................................. 19,656,500,000
Comparison:
2012 appropriation................................ +1,505,324,000
2013 budget estimate.............................. -37,500,000

COMMITTEE PROVISIONS

For the Child Nutrition Programs, the Committee provides
$19,656,500,000.
Improper Payments.--As expressly noted during the FNCS
appropriations hearing, the Committee continues to be concerned
about the improper payment rates in the National School Lunch
Program (NSLP) and National School Breakfast Programs (NSBP).
According to GAO, the NSLP is one of four Federal Programs with
the highest dollar estimates ($1,700,000,000) and highest error
rates (16 percent) for improper payments. The NSBP is listed as
the second highest improper payment error rate (25 percent or
an estimated $705,000,000) for all Federal programs. While FNS
and OIG study this issue to determine solutions to lower these
improper payment rates, the Committee expects USDA to utilize
funds from the State Administrative Expenses account to assist
States and Local Educational Agencies in reducing verification
errors, duplicate payments, fraud, and/or misrepresentation by
program participants.
Prioritization of Monitoring and Compliance Reviews.--The
Committee directs the Secretary to allow States to vary the
frequency of monitoring and compliance reviews of each school
food authority based on past school performance, with no cycle
extending more than five years. Congress granted the Secretary
this flexibility in the Healthy, Hunger-Free Kids Act of 2008.
The Committee further directs that no later than the second
quarter of fiscal year 2013, and in close consultation with the
Nation's governors, USDA must take regulatory action that
implements congressional intent and provides States with the
ability to vary inspection frequency based on past school
performance.
Summer Food Service Pilot Program.--Distressed counties in
certain parts of the country face high levels of food
insecurity that leave children vulnerable to hunger and
decreased school performance. The Committee supports the
efforts that authorize the Secretary to conduct demonstrations
to test new models of preventing food insecurity and hunger
among children during the summer months. The Committee urges
the Secretary to cost effectively coordinate with States, non-
profits, and other Federal agencies or commissions to replicate
the positive outcomes from these models to promote food
security in counties as defined in 40 U.S.C. 14102.
The following table reflects the Committee recommendations
for the child nutrition programs:

[Dollars in Thousands]

Child Nutrition Programs:
School lunch program................................ $11,263,349
School breakfast program............................ 3,502,644
Child and adult care food program................... 2,916,755
Summer food service program......................... 440,905
Special milk program................................ 13,323
State administrative expenses....................... 289,702
Commodity procurement............................... 1,154,480
Food safety education............................... 2,575
Coordinated review.................................. 10,000
Computer support and processing..................... 10,746
CACFP training and technical assistance............. 7,675
CN Studies.......................................... 19,323
CN Payment Accuracy................................. 6,436
Farm to School Team................................. 2,083
Team Nutrition...................................... 15,004
Healthier US School Challenge....................... 1,500
--------------------------------------------------------
____________________________________________________
Total............................................... 19,656,500

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

2012 appropriation.................................... $6,618,497,000
2013 budget estimate.................................. 7,041,000,000
Provided in the bill.................................. 6,922,000,000
Comparison:
2012 appropriation................................ +303,503,000
2013 budget estimate.............................. -119,000,000

COMMITTEE PROVISIONS

For the Special Supplemental Nutrition Program for Women,
Infants, and Children (WIC), the Committee provides an
appropriation of $6,922,000,000.
The President's budget request includes a projection of an
average monthly participation rate of 9.1 million women,
infants, and children in fiscal year 2013. It is worth noting
that the rolling twelve month average of participation declined
in every month from June 2010 through December 2011. The
average monthly participation for fiscal year 2011 was 8.96
million participants. The Committee is unaware of any
particular economic indicators or programmatic changes that
will cause participation to increase above the 8.96 million
monthly participants in fiscal year 2012 or 2013.
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
2013 is sufficient to serve all eligible applicants.
The Committee provides for continuation of the
breastfeeding peer counselor program and investments in
infrastructure and management information systems within the
total amount provided in the bill, pending a determination by
the Secretary that funds are available to meet caseload demand.
Uniform Income Eligibility Standards.--The Committee is
concerned that USDA's regulations regarding income eligibility
determinations and corresponding allowable practices, including
the definitions of income and household, use of programs
acceptable for adjunctive or automatic eligibility, and income
verification procedures, have created wide disparity among the
States, Territories, and Tribal Organizations. Income
definitions, adjunctive eligibility practices, and verification
procedures for applicants vary by State or within a State as
noted in USDA's April 2012 report entitled ``National Survey of
WIC Participants II--Volume 2.'' WIC agencies use standard
tables for Income Eligibility Guidelines, but the way in which
income is defined and verified at the local agency can vary
substantially. Income eligibility is set by statute at 185
percent of the Federal Poverty Level (FPL) for households ``of
related or non-related individuals who are living together as
one economic unit.'' While some State agencies may find
administrative savings in the use of adjunctive eligibility,
the Committee believes that income is inconsistently measured
and verified by local WIC agencies across the country,
potentially giving rise to a situation where WIC participants
have incomes far in excess of the eligibility standard. The
Committee directs FNS to issue instructions to all State
agencies by October 1, 2012, which will ensure income
eligibility uniformity across all States, Tribal Organizations,
and U.S. Territories.
WIC Food Cost Management.--The Committee supports USDA's
efforts to rein in the cost of WIC food items in the State of
California and elsewhere, but the Committee is concerned about
the wide range of variation in average food costs per
participant among the States and expects the Department to do
more in this area. The Texas WIC program, which has the second
largest percentage of program participants, has maintained the
lowest average food cost per participant ($26.72) in the
nation, with a 2010 average that was 36 percent below the
national average. Furthermore, adjacent States may have an
average food cost per participant that was far below the
national average in 2010 ($33.33 per participant in New
Hampshire) and an average that substantially exceeded the
national average ($44.53 per participant in Vermont). Federal
regulations require that State agencies implement a vendor peer
group system, competitive price criteria, and maximum allowable
reimbursement levels so that the program only pays competitive
prices for foods. As demonstrated in USDA's oversight of the
California program, USDA has the ability to intervene and
require State agencies to reduce the maximum dollar amount the
State agency reimburses for food items. The Committee directs
the Department to report to the Committees on Appropriations no
later than 60 days after the date of enactment of this Act on
the steps USDA is taking to encourage additional cost-
containment practices in the States and/or initiatives to
reduce the maximum reimbursement rate where warranted.

SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

2012 appropriation.................................... $80,401,722,000
2013 budget estimate.................................. 81,995,293,000
Provided in the bill.................................. 79,993,795,000
Comparison:
2012 appropriation................................ -407,927,000
2013 budget estimate.............................. -2,001,498,000

COMMITTEE PROVISIONS

For the Supplemental Nutrition Assistance Program (SNAP),
the Committee provides $79,993,795,000. The total amount
includes $3,000,000,000 for a contingency reserve in fiscal
year 2013 and 2014 to be used only in the amount necessary.
Healthy Incentives Pilot Program.--The Committee is
interested in USDA's ongoing work to evaluate health and
nutrition promotion in the SNAP program to determine if
incentives provided to SNAP recipients at the point-of-sale
increase the purchase of fruits, vegetables, or other healthful
foods. USDA is directed to share those results with the
Committee as soon as practicable.
Brand Name Foods/SNAP Retailers.--The Committee is aware of
SNAP vendor practices that alert SNAP participants of a retail
outlet's approved status to accept SNAP benefits while
simultaneously promoting branded products in the materials. The
Committee encourages USDA to issue guidance to the States to
prevent this type of promotion of any particular food brand.
Prepared Foods/Beverages Purchased with SNAP Benefits.--The
Committee is concerned that SNAP vendors are allowed to sell
prepared food or drink with SNAP benefits beyond those
allowances for the homeless, elderly, or physically disabled.
The Committee directs USDA to tighten restrictions on SNAP
eligibility for hot prepared foods and extend restrictions to
other foods intended for immediate on-premise consumption, such
as hot prepared beverages and fountain drinks.
Fraud, Waste, and Abuse.--While SNAP provides a vital food
security safety net to over 46 million people, the Committee is
concerned about the dollar level associated with waste, fraud,
and abuse in this immense Federal nutrition program. The
Committee encourages the Department to go beyond current
efforts to make further reductions in fraud and improper
payment rates. Total SNAP obligations, including ARRA funds, in
FY 2013 are estimated to be $77,223,166,000. According to
USDA's estimates of a one percent fraud rate and a 3.04 percent
overpayment rate, payments involving fraud and payments in
excess of those legitimately due to beneficiaries would total
approximately $3,119,816,000.
Data Sharing.--The Committee urges USDA to require States
to share SNAP recipient case data, including the appropriate
use of the ALERT database, so USDA may determine whether
individuals or households are receiving duplicative benefits in
more than one State. To prevent the potential for fraud, the
Secretary also is urged to use the FBI National Crime
Information Center database as part of the process in
determining authorization of SNAP retailers and use its
suspension and debarment authority to prevent repeat offenders
from re-entering and defrauding SNAP or any other Federal
program. The Committee directs USDA to submit a report to the
House and Senate Committees on Appropriations by October 1,
2012, detailing plans to prevent future fraud and improper
payments, including efforts to debar or exclude both vendors
and participants from the receipt of benefits if found guilty
of fraud or abuse.
The following table reflects the Committee recommendations
for the Supplemental Nutrition Assistance Program:

[Dollars in Thousands]

Supplemental Nutrition Assistance Program Account:
Benefits*........................................... $75,159,564
Contingency Reserve................................. 3,000,000
Administrative Costs:
State Administrative Costs.......................... 3,866,855
Nutrition Education and Obesity Prevention Grant
Program........................................... 396,000
Employment and Training............................. 406,306
Mandatory Other Program Costs....................... 140,123
Discretionary Other Program Costs................... 998
Total Administrative Subtotal............... 4,810,282

Nutrition Assistance for Puerto Rico (NAP)*......... 2,000,568
American Samoa*..................................... 8,034
Food Distribution Program for Indian Reservations... 100,156
TEFAP Commodities................................... 269,500
Commonwealth of the Northern Mariana Islands........ 12,148
Community Food Project.............................. 5,000
Program Access...................................... 5,000
Subtotal.................................... 2,400,406

ARRA Benefits....................................... -5,376,457
Total....................................... 79,993,795

*Totals include ARRA benefits: $5,274,755,000 for core SNAP;
$101,296,000 for Nutrition Assistance for Puerto Rico; and, $406,000 for
American Samoa.
---------------------------------------------------------------------------

COMMODITY ASSISTANCE PROGRAM

2012 appropriation.................................... $242,336,000
2013 budget estimate.................................. 253,952,000
Provided in the bill.................................. 237,489,000
Comparison:
2012 appropriation................................ -4,847,000
2013 budget estimate.............................. -16,463,000

COMMITTEE PROVISIONS

The Committee provides an appropriation of $237,489,000 for
the Commodity Assistance Program. The recommended funding level
for the Commodity Supplemental Food Program (CSFP) is
$173,252,000.
The Committee recommendation includes $16,217,000 for the
Farmers' Market Nutrition Program.
The Committee has included $47,040,000 for administrative
funding for the Emergency Food Assistance Program (TEFAP).
For the Food Donations Programs, the Committee provides an
appropriation of $980,000 for Pacific Island Assistance.
TEFAP Handling and Distribution Costs.--In addition to the
grant funds to support 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.

NUTRITION PROGRAMS ADMINISTRATION

2012 appropriation.................................... $138,500,000
2013 budget estimate.................................. 143,505,000
Provided in the bill.................................. 135,730,000
Comparison:
2012 appropriation................................ -2,770,000
2013 budget estimate.............................. -7,775,000

COMMITTEE PROVISIONS

For Nutrition Programs Administration, the Committee
provides $135,730,000.

TITLE V

FOREIGN ASSISTANCE AND RELATED PROGRAMS

Foreign Agricultural Service

SALARIES AND EXPENSES

(INCLUDING TRANSFERS OF FUNDS)

----------------------------------------------------------------------------------------------------------------
transfer from
appropriation export loan total
account
----------------------------------------------------------------------------------------------------------------
2012 appropriation.............................................. $176,347,000 $6,465,000 $182,812,000
2013 budget estimate............................................ 176,789,000 6,452,000 183,241,000
Provided in the bill............................................ 172,820,000 6,336,000 179,156,000
Comparison:
2012 appropriation.......................................... -3,527,000 -129,000 -3,656,000
2013 budget estimate........................................ -3,969,000 -116,000 -4,085,000
----------------------------------------------------------------------------------------------------------------

COMMITTEE PROVISIONS

For the Foreign Agricultural Service (FAS), the Committee
provides an appropriation of $172,820,000 and transfers of
$6,336,000.
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.
Reconstruction and Stabilization Activities.--The Committee
does not include funding for agricultural reconstruction and
stabilization activities. While the Committee provides support
for developmental projects through P.L. 480, Title II funds,
the Committee believes that reconstruction and stabilization
activities should continue to be supported through other
existing programs and accounts in the U.S. Government. FAS
needs to focus on an enhanced strategic plan and direction for
agriculture trade policy and urges the Department to take a
more proactive role in developing such a policy.

Food for Peace Title I Direct Credit and Food for Progress Program
Account

(INCLUDING TRANSFERS OF FUNDS)

2012 appropriation.................................... $2,500,000
2013 budget estimate.................................. 2,806,000
Provided in the bill.................................. 2,450,000
Comparison:
2012 appropriation................................ -50,000
2013 budget estimate.............................. -356,000

COMMITTEE PROVISIONS

For the administrative expenses to carry out the credit
program of Food for Peace Title I, Food for Peace Act and the
Food for Progress Act, the Committee provides an appropriation
of $2,450,000.

Food for Peace Title II Grants

2012 appropriation.................................... $1,466,000,000
2013 budget estimate.................................. 1,400,000,000
Provided in the bill.................................. 1,149,680,000
Comparison:
2012 appropriation................................ -316,320,000
2013 budget estimate.............................. -250,320,000

For Food for Peace Title II grants, the Committee provides
$1,149,680,000.
Oversight of Private Voluntary Organizations (PVO)/Non-
Governmental Organizations (NGO).--The Committee believes that
the U.S. Government's overall ability to successfully provide
emergency food aid and developmental assistance to developing
nations is possible with the help of local and international
nongovernmental organizations and the United Nations World Food
Program. Regardless of the form of aid, the Committee requires
that the funds provided in this bill be appropriately and
efficiently managed by these PVOs and NGOs. The GAO and USAID's
OIG have found inefficiencies in the monetization of food as
well as the inability to determine whether or not an in-country
project met the original performance goals. The Committee
directs USDA to work with USAID to provide a report within 90
days of enactment of this Act that explains how the agencies
currently evaluate the financial controls and performance
delivery of NGOs and PVOs that receive P.L. 480, Title II
resources.

CCC EXPORT LOANS PROGRAM ACCOUNT

ADMINISTRATIVE EXPENSES

2012 appropriation.................................... $6,820,000
2013 budget estimate.................................. 6,806,000
Provided in the bill.................................. 6,684,000
Comparison:
2012 appropriation................................ -136,000
2013 budget estimate.............................. -122,000

COMMITTEE PROVISIONS

For administrative expenses of the Commodity Credit
Corporation Export Loans Program Account, the Committee
provides an appropriation of $6,684,000.

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

2012 appropriation.................................... $184,000,000
2013 budget estimate.................................. 184,000,000
Provided in the bill.................................. 180,320,000
Comparison:
2012 appropriation................................ -3,680,000
2013 budget estimate.............................. -3,680,000

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 $180,320,000.

TITLE VI

RELATED AGENCIES AND FOOD AND DRUG ADMINISTRATION

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

SALARIES AND EXPENSES

[Dollars in Thousands]
------------------------------------------------------------------------
total, FDA
appropriation user fees S&E
------------------------------------------------------------------------
2012 appropriation........... $2,497,021 $1,291,315 $3,788,336
2013 budget estimate......... 2,511,991 1,353,925 3,865,916
Provided in the bill......... 2,480,766 1,353,925 3,834,691
Comparison:
2012 appropriation....... -16,255 +62,610 +46,355
2013 budget estimate..... -31,225 0 -31,225
------------------------------------------------------------------------

COMMITTEE PROVISIONS

The Committee provides an appropriation of $2,480,766,000
in new budget authority for the Food and Drug Administration
(FDA). In addition, the Committee recommends $30,530,000 in
animal drug user fees; $7,595,000 in generic animal drug user
fees; $15,367,000 in food reinspection user fees; $12,925,000
in food and feed export certification user fees; $505,000,000
in tobacco product user fees, and assumes the reauthorization
of prescription drug and medical device user fees for total
salaries and expenses of $3,834,691,000. This total does not
include estimates of $19,318,000 for mammography user fees and
$12,447,000 for export certification user fees. The Committee
notes that generic drug and biosimilars user fees legislation
is pending before the authorizing committee and will make
adjustments to the provisions in this bill upon enactment of
such fees. The estimated fiscal year 2013 collections for these
fees are $299,000,000 for generic drugs and $20,242,000 for
biosimilars.
The Committee recommendation includes an increase of
$10,822,000 above the budget request for FDA food safety;
$10,000,000 for food and drug inspections in China; and an
increase of $3,500,000 for advancing medical countermeasures.
The Committee recommendation includes the proposed savings of
$19,706,000 due to data and information technology
consolidation, but only attributes $941,000 of these savings to
the foods program.
The Committee recommendation does not include proposed user
fees for food establishment registration, food contact
notification, medical product re-inspection, cosmetics, and
international courier imports.
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.
Nutrition Labeling.--The Committee remains concerned with
the proposed rule that FDA issued on April 6, 2011, to regulate
Nutrition Labeling of Standard Menu Items at Chain Restaurants.
The proposed rule includes 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 should not fall within the definition of the
term ``similar retail food establishment''. The Committee urges
FDA to use the proposed alternative ``Option 2'' definition in
the rule to mean only restaurants or retail establishments
where the primary and majority of business is the selling of
food for consumption or the selling of food that is processed
or prepared on the premises.
Bacterial Contamination of Blood.--The Committee is aware
that bacterial contamination of blood platelets is a risk for
blood transfusion recipients. The Committee also is aware of a
recent study that showed the vast majority of bacterially
contaminated platelets are being missed by culture testing and
that bacterial testing of platelets on the day of transfusion
using an existing FDA approved technology may be beneficial to
some transfusion recipients. The Committee directs FDA to
provide a report to the Committees on Appropriations of both
Houses of Congress, within 90 days of enactment of this Act, on
the need to make the medical community aware of the safety
risks to transfusion patients from bacterially contaminated
platelets and to determine what further actions FDA should take
to reduce the risk of this type of infection.
Seafood Advisory.--The Committee is concerned that FDA has
not published a final seafood advisory as directed in House
Report 112-101 and Senate Report 112-73. The Committee directs
FDA to issue a final seafood advisory consistent with USDA's
dietary guidelines by July 31, 2012. The Committee directs the
FDA Commissioner to notify the Committee in writing prior to
this date if this directive will not be met and include the
reasons for not meeting it.
Prescription Drug Inserts.--The Committee is concerned
about an FDA proposal that would eliminate printed inserts for
prescription drugs and replace them with a solely electronic
system and urges FDA to consider a system that uses an
electronic format in addition to paper, rather than in lieu of
paper.
Regulations.--The Committee understands that on December
20, 2010, FDA announced its intention to make cigars subject to
Chapter IX of the Federal Food, Drug, and Cosmetic Act. The
Committee reminds FDA that premium cigars have unique
characteristics and cost prohibitive price points and are not
marketed to kids. Any effort to regulate cigars should take
these items into consideration.
Global Health.--The Committee recognizes the critical
contribution that FDA's global health research, development
funding, and leadership in licensing health technologies make
to improve global health. The Committee also recognizes the
need to sustain and support U.S. investment in this area by
providing funding to FDA to carry out this work. The Committee
directs FDA to submit a report to the Committees on
Appropriations of the House of Representatives and the Senate,
within 60 days of enactment of this Act, outlining the
implementation of the findings and recommendations in the
Report to Congress referred to in paragraphs (2) and (3) of
section 740(c) of Public Law 111-80. The Committee also urges
FDA to make the necessary modifications to include Chagas
disease in its list of neglected diseases in line with the
World Health Organization list of neglected and tropical
diseases.
Pediatric Cancer.--The Committee notes that cancer remains
the leading cause of disease-related death in children, that
the incidence of childhood cancer is increasing, and that more
effective and less toxic treatments are needed. The Committee
encourages FDA to collaborate with industry and the pediatric
cancer community to promote the development of new therapies.
Tanning Devices.--The March 2010 meeting of the General and
Plastic Surgery Devices Panel of the Medical Devices Advisory
Committee recommended more accurate classification of tanning
devices to save lives. FDA is encouraged to quickly promulgate
an interim final rule to reclassify tanning devices.
Centers of Excellence.--The Committee is aware of the
important support provided to FDA's food and veterinary
medicine programs and through its research and program
relations with their centers of excellence. The Committee
encourages FDA to maintain an appropriate funding level for
both Food Safety Modernization Act related activities and the
base work performed by these centers.
Gluten-free Rulemaking.--The Committee is aware of FDA's
intention to issue a final rule by the end of 2012 to define
gluten-free labeling of foods. The Committee encourages FDA to
work with USDA to assist its agencies in adopting the
definition of gluten-free set by the FDA final rule to provide
uniform labeling requirements and best protect consumers with
celiac disease and other conditions.
Antibacterial Resistance.--To assist efforts intended to
curb antibacterial resistance, the Committee directs the
Secretaries of Agriculture and Health and Human Services to
require agencies to: (1) seek public comment on collecting more
detailed sales and distribution data for antibacterial drugs
approved for use in food-producing animals, including estimates
of the amount sold or distributed in specific animal species;
(2) seek public comment on alternative methods for obtaining
additional data and information about the extent of
antibacterial drug use in food-producing animals; and (3) based
on input received, work collaboratively to develop a strategy
for implementing the best approach. The Committee further
directs FDA to ensure that the Agricultural Research Service
continues to analyze, characterize, and report on data
collected through NARMS.
Mammography Quality Assurance.--The Committee urges FDA to
quickly follow up on the November 2011 meeting of the National
Mammography Quality Assurance Advisory Committee by promptly
reviewing the evidence supporting the inclusion of information
related to an individual's breast density in the mammogram lay
report and physician report.
Food Safety Rulemaking.--The Committee is aware the
Administration missed the January 4, 2012, statutory deadline
for publishing a notice of proposed rulemaking for fresh
produce safety standards and final regulations on the content
of the Foreign Supplier Verification Program for imported food.
The Committee encourages the Administration to meet the
statutory timelines for implementing P.L. 111-353 and expects
FDA to follow a timeline for issuing rulemakings consistent
with the sequence and logistics of establishing requirements
for a preventive controls framework for domestic and imported
foods. The Committee directs FDA to submit a report within 180
days of enactment of this Act that describes the justification
for any proposed rule or final regulation being 60 days or more
beyond the timeline. The Committee further directs FDA to
continue to provide such report at the same time that the
agency submits its annual budget justification to the
Committee.
Pathway to Global Product Safety.--The Committee directs
FDA to provide a report by June 1, 2013, on the implementation
of the Pathway to Global Product Safety and Quality initiative.
Dietary Supplements.--The Committee notes that FDA released
draft guidance in July 2011 on New Dietary Ingredients (NDI)
for Dietary Supplements. Though the Committee wants to ensure
that dietary supplements are safe, it is concerned that the
draft guidance is being utilized by FDA for enforcement
activities against manufacturers despite the guidance only
being in draft form, containing nonbinding recommendations, and
for comment purposes only. The Committee urges FDA to withdraw
the July 2011 NDI draft guidance and re-engage the dietary
supplement community to develop a new guidance on what
constitutes NDI.
Food Contact Notification.--The Committee directs FDA to
maintain the fiscal year 2012 funding level for the Food
Contact Notification program.
Nutritional Ratings Systems.--The Committee is concerned
about the use of nutritional rating and front of package claims
in the marketplace. To promote public health and facilitate
consumer understanding, such information should be consistent
with the Institute of Medicine's recommendations for front of
package nutrition rating systems and symbols and the Dietary
Guidelines for Americans and based on criteria that are public
and readily available to consumers. Further, such systems and
symbols should be evaluated by FDA to ensure their usefulness
for American consumers, consistency with FDA nutrition
programs, and compliance with relevant FDA food labeling
requirements. The Committee directs FDA to provide a report
regarding its plans to establish guidance for developing such
systems and to provide the Committee a timetable for issuing
such guidance.

BUILDINGS AND FACILITIES

2012 appropriation.................................... $8,788,000
2013 budget estimate.................................. 5,320,000
Provided in the bill.................................. - - -
Comparison:
2012 appropriation................................ -8,788,000
2013 budget estimate.............................. -5,320,000

COMMITTEE PROVISIONS

The Committee does not provide an appropriation for this
account.

INDEPENDENT AGENCIES

Commodity Futures Trading Commission

2012 appropriation.................................... $205,294,000
2013 budget estimate.................................. 308,000,000
Provided in the bill.................................. 180,405,000
Comparison:
2012 appropriation................................ -24,889,000
2013 budget estimate.............................. -127,595,000

COMMITTEE PROVISIONS

For the Commodity Futures Trading Commission, the Committee
provides an appropriation of $180,405,000, of which $32,000,000
is for the purchase of information technology.
Spending Plans.--Within 15 days from the enactment of this
Act, the Chairman shall notify the Committees on Appropriations
of the House of Representatives and the Senate on the
allocation of the funds provided herein by account and within
each account by program, project, and activity. The plan should
be similar in format to that provided to the Committee for
fiscal year 2012.
Financial Management.--The Committee is aware of a
Reduction-in-Force (RIF) made by the Commission regarding its
Administrative Law Judges program in the latter part of fiscal
year 2011. The Commission justified this RIF as a cost-saving
measure in excess of $500,000. This action not only augmented
an existing activity, reduced personnel by more than 10
percent, and resulted in a general cost savings from personnel
reduction but also reorganized an office and eliminated an
entire program. The Administrative Law Judges program was an
essential function of the Office of Proceedings as authorized
by Congress and detailed in the Commission's fiscal year 2011
Budget Request. An in-house, independent judicial review
capability is essential for the Commission's core mission. The
Commission failed to notify the Committee of this
reprogramming, directly violating Section 712 of P.L. 111-80.
The Committee is further concerned that such action may have
violated the Anti-Deficiency Act. As a result, the Committee
requests the Government Accountability Office investigate this
situation, report to the Committees on whether the Commission's
action violated these laws, and identify all actions taken or
recommended to be taken to address and correct any violation.
Hiring Practices.--The Committee is concerned about the
Commission's hiring practices while operating under a
Continuing Resolution at the outset of the past two fiscal
years. The Committee directs the Commission to refrain from
excessive hiring while operating under a Continuing Resolution.
Cost-Benefit Analysis.--The Committee remains concerned
about the Commission's lack of strong cost-benefit analyses. In
its 38-year history, not a single lawsuit had been brought
against the Commission stemming from its cost-benefit analyses;
however, two major lawsuits have recently been filed based on
the application of Section 15(a) of the Commodity Exchange Act.
These lawsuits reallocate scarce resources away from the core
functions of the Commission. The Committee is encouraged by the
signing of a Memorandum of Understanding between the Commission
and the Office of Information and Regulatory Affairs (OIRA)
dated May 9, 2012, allowing technical assistance to be given to
the Commission by OIRA staff. The Committee directs the
Commission to receive technical assistance in the cost-benefit
process from OIRA on all future rulemakings. Further, the
Committee is concerned about overlapping provisions and
regulations in the Dodd-Frank Wall Street Reform and Consumer
Protection Act and includes bill language to provide a report
to the Committees of jurisdiction.

Farm Credit Administration

LIMITATION ON ADMINISTRATIVE EXPENSES

2012 limitation....................................... ($61,000,000)
2013 budget estimate.................................. (63,300,000)
Provided in the bill.................................. (59,780,000)
Comparison:
2012 limitation................................... -1,220,000
2013 budget estimate.............................. -3,520,000

COMMITTEE PROVISIONS

For a limitation on the expenses of the Farm Credit
Administration, the Committee provides $59,780,000.
FCA Administrative Expenses.--The Committee is concerned
about the increases in FCA's administrative expenses since
fiscal year 2009, its growing assessments on Farm Credit System
institutions and Farmer Mac, large carryover amounts, and the
significant balance in its interest reserve fund. The Committee
directs the agency to reassess its budget and reserve strategy
and to provide a detailed accounting of its finances by August
1, 2012.

TITLE VII

GENERAL PROVISIONS

(INCLUDING RESCISSIONS AND TRANSFERS OF FUNDS)

The General Provisions contained in the accompanying bill
for fiscal year 2013 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: Authority of the Chief Information Officer
relating to new IT systems.
Section 707: Availability of mandatory conservation program
funding.
Section 708: Rural Utility Service borrower eligibility.
Section 709: Indirect costs related to research grants.
Section 710: Availability of agency funds for information
technology purposes.
Section 711: Funding availability for liquid infant
formula.
Section 712: Prohibition on first-class airline travel.
Section 713: Use of funds authorized by the Commodity
Credit Corporation Act.
Section 714. Use of funds for humanitarian food assistance
programs.
Section 715: Disbursement of loans made under the Rural
Electrification Act.
Section 716: Limitation on funds for commodities under the
Bill Emerson Humanitarian Trust.
Section 717: Funding for advisory committees.
Section 718: Indirect costs for competitive agricultural
research grants.
Section 719: Regulations under the Grain Inspection,
Packers and Stockyards Administration.
Section 720: Rescission of certain unobligated balances.
Section 721: Language regarding certain limitations.
Section 722: Rescission and limitation on certain funds.
Section 723: Language on user fee proposals without
offsets.
Section 724: Language on reprogramming.
Section 725: Language on fees for the business and industry
guaranteed loan program.
Section 726: Language on questions for the record.
Section 727: Language regarding prepackaged news stories.
Section 728: Language on prohibition on paid details in
excess of 30 days.
Section 729: Language regarding grants and loans to
corporations convicted of a felony.
Section 730: Language regarding grants and loans to
corporations with a Federal tax liability.
Section 731: Language on controls over humanitarian food
assistance.
Section 732: Language on the mohair program.
Section 733: Language regarding regulation of certain
agricultural products.
Section 734: Language on dam mitigation.
Section 735: Rescission of certain unobligated balances.
Section 736: Rescission of certain unobligated balances.
Section 737: Language regarding the Grasslands Reserve
Program.
Section 738: Language regarding the Wetlands Reserve
Program.
Section 739: Language regarding servicing of Rural Housing
Service loans.
Section 740: Rescission of certain unobligated balances.
Section 741: Rescission of certain unobligated balances.
Section 742: Language on farm payments.
Section 743: Language on WIC.
Section 744: Language on horse slaughter.
Section 745: 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. Departmental Administration.--Language is included to
reimburse the agency for travel expenses incident to the
holding of hearings.
3. Agricultural Research Service.--Language is included
that allows the Agricultural Research Service to grant
easements at the Beltsville, MD, agricultural research center.
4. Agricultural Research Service.--Language is included
that allows the Agricultural Research Service to grant
easements and accept as a gift facilities constructed by
private entities for agricultural research that benefits the
public.
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.
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 cost rates on
cooperative agreements with nonprofit institutions 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: 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 707: Language is included regarding the
availability of funds for certain conservation programs.
Section 708: Language is included regarding certain Rural
Utilities Service Programs.
Section 709: Language is included regarding indirect costs
to grants made under section 412 of the Agricultural Research,
Extension, and Education Reform Act of 1998.
Section 710: 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 711: Language is included regarding reconstituted
liquid concentrate infant formula issuance to WIC participants.
Section 712: Language is included regarding the prohibition
of first-class travel by the employees of agencies funded in
this Act.
Section 713: Language is included regarding the use of
authorities of the Commodity Credit Corporation.
Section 714: Language is included regarding the use of
funds for emergency humanitarian food assistance.
Section 715: Language is included regarding the
disbursement of valid obligations for certain Rural
Electrification Loans.
Section 716: Language is included that limits funds for
commodities under the Bill Emerson Humanitarian Trust.
Section 717: Language is included that limits the amount of
spending for USDA Advisory Committees.
Section 718: Language is included modifying matching
requirements for certain research grants.
Section 719: Language is included regarding regulations
under the Packers and Stockyards Act.
Section 720: Language is included regarding the rescission
of certain unobligated balances.
Section 721: Language is included regarding limitation on
certain funds.
Section 722: Language is included that limits and rescinds
section 32 balances.
Section 723: Language is included that prohibits funds from
being used to prepare a budget submission to Congress that
assumes reductions from the previous year's budget due to user
fee proposals unless the submission also identifies spending
reductions which should occur if the user fees are not enacted.
Section 724: Language is included that requires certain
reprogramming procedures of funds provided in Appropriations
Acts.
Section 725: Language is included regarding fees for the
business and industry guaranteed loan program.
Section 726: 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 727: Language regarding prepackaged news stories.
Section 728: 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 729: Language is included on Federal grants, loans,
and contracts to corporations convicted of a felony under State
or Federal law.
Section 730: Language is included on grants, loans, and
contracts to corporations with a Federal tax liability.
Section 731: Language is included regarding controls over
humanitarian food assistance.
Section 732: Language is included regarding the mohair
program.
Section 733: Language is included regarding the regulation
of certain agricultural products.
Section 734: Language is included regarding certain dam
mitigation projects.
Section 736: Language is included rescinding certain
unobligated balances.
Section 737: Language in included regarding the Grasslands
Reserve Program.
Section 738: Language is included regarding the Wetlands
Reserve Program.
Section 739: Language is included regarding the servicing
of Rural Housing Service loans.
Section 742: Language on farm payments.
Section 743: Language on WIC.
Section 744: Language on horse slaughter.
Section 745: Spending Reduction Account.

DISCLOSURE OF EARMARKS AND CONGRESSIONALLY DIRECTED SPENDING ITEMS

Neither the bill nor the report contains any
Congressionally directed 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):

FOOD SECURITY ACT OF 1985

* * * * * * *
TITLE XII--CONSERVATION

* * * * * * *

Subtitle D--Agricultural Resources Conservation Program

CHAPTER 1--COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM

* * * * * * *

Subchapter C--Wetlands Reserve Program

SEC. 1237. WETLANDS RESERVE PROGRAM.

(a) * * *

* * * * * * *

(c) Eligibility.--For purposes of enrolling land in the
wetland reserve established under this subchapter during the
1991 through [2012] 2014 fiscal years, private or tribal land
shall be eligible to be placed into such reserve if the
Secretary, in consultation with the Secretary of the Interior
at the local level, determines that--
(1) * * *

* * * * * * *

CHAPTER 2--CONSERVATION SECURITY AND FARMLAND PROTECTION

* * * * * * *

Subchapter D--Grassland Reserve Program

SEC. 1238N. GRASSLAND RESERVE PROGRAM.

(a) * * *
(b) Enrollment of Acreage.--
(1) Acreage enrolled.--The Secretary shall enroll an
additional 1,220,000 acres of eligible land in the
program during fiscal years 2009 through [2012] 2014.

* * * * * * *

Subtitle E--Funding and Administration

SEC. 1241. COMMODITY CREDIT CORPORATION.

(a) In General.--For each of fiscal years 2002 through 2012
(and fiscal year 2014 in the case of the programs specified in
paragraphs (2), (3)(B), (4), (5), (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) * * *

* * * * * * *

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:

APPROPRIATIONS NOT AUTHORIZED BY LAW AND EXPIRING AUTHORIZATIONS
[Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
Appropriations in
Agency/Program Last year of Authorization last year of Appropriations
authorization level authorization in this bill
----------------------------------------------------------------------------------------------------------------
Programs not currently authorized by law or
expiring on or before September 30, 2012.
Farm Service Agency:
Dairy Indemnity Program.................. 9/30/2012 Such sums Such sums Such sums
Beginning Farmer and Rancher Individual 9/30/2012 $5,000 0 0
Development Accounts Pilot Program......
Food and Nutrition Service:
Supplemental Nutrition Assistance Program 9/30/2012 Such sums $80,401,722 $79,993,795
Commodity Supplemental Food Program...... 9/30/2012 Prior year 176,788 173,252
caseload
The Emergency Food Assistance Program.... 9/30/2012 100,000 48,000 47,040
Foreign Agricultural Service:
McGovern-Dole International Food for 9/30/2012 Such sums 184,000 180,320
Education Program.......................
National Institute of Food and Agriculture:
Expanded Food and Nutrition Education 9/30/2012 90,000 67,934 66,099
Program.................................
Grants to upgrade facilities at 1890 9/30/2012 25,000 19,730 19,197
institutions............................
Education grants for Hispanic-serving 9/30/2012 40,000 9,219 9,034
institutions............................
Extension service........................ 9/30/2012 Such sums 475,183 454,707
Integrated research, education and 9/30/2012 Such sums 21,482 21,052
extension competitive grants program....
1994 institution research grants......... 9/30/2012 Such sums 1,801 1,764
Grants for insular areas................. 9/30/2012 Such sums 1,650 1,650
Renewable Resources Extension Act........ 9/30/2012 30,000 3,700 3,600
Agriculture and Food Research Initiative. 9/30/2012 700,000 264,470 276,515
Grants and fellowships for food and 9/30/2012 60,000 9,000 10,000
agricultural sciences education.........
Rural Business-Cooperative Service:
Value-added Agricultural Product Market 9/30/2012 40,000 14,000 10,000
Development Grants......................
Rural Cooperative Development Grants..... 9/30/2012 50,000 5,800 4,500
Appropriate Technology Transfer for Rural 9/30/2012 5,000 2,250 2,205
Areas...................................
Rural Microenterpreneur Assistance 9/30/2012 40,000 3,356 0
Program.................................
Rural Energy for America Program......... 9/30/2012 25,000 3,400 3,332
Rural Housing Service:
Tribal College and University essential 9/30/2012 10,000 3,369 3,302
community facilities....................
Multi-family Housing Revitalization 9/30/2012 13,000 13,000 12,740
Program.................................
Rural Utilities Service:
Distance Learning and Telemedicine....... 9/30/2012 100,000 21,000 15,000
Access to broadband telecommunication 9/30/2012 25,000 6,000 2,000
services in rural areas.................
Broadband Telecommunications Grants...... 9/30/2012 10,372 10,372 10,165
----------------------------------------------------------------------------------------------------------------
Note: List does not include expiring programs for which no funding is requested in the 2013 President's Budget.

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 $180,000,000 of funds
derived from interest on the cushion of credit payments under
the Rural Economic Development Loans Program Account;
$180,000,000 from Section 32 funds; $11,000,000 from
Supplemental Nutrition Assistance Program employment and
training funds; $26,126,000 from the Distance Learning,
Telemedicine and Broadband Program Account; $28,450,000 from
the Repowering Assistance Program; $47,723,000 from the Food
and Drug Administration; and $11,000,000 from 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
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee
allocations to its subcommittees of amounts in
the Budget Resolution for 2013:
Discretionary............................... $19,405 $22,759 $19,405 \1\$22,759
Mandatory................................... 42,558 33,003 42,558 \1\33,003
----------------------------------------------------------------------------------------------------------------
\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:

Projection of outlay associated with the recommendation:
2013.........................................................\1\$119,476
2014.......................................................... 3,757
2015.......................................................... 1,051
2016.......................................................... 195
2017 and future years......................................... 63

\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.............................................. $37,864
Outlays....................................................... \1\33,267
---------------------------------------------------------------------------
\1\Excludes outlays from prior-year budget authority.

ADDITIONAL VIEWS

We are extremely disappointed that House Republicans walked
away from the bipartisan agreement to establish $1.047 trillion
as the Committee's allocation. A majority of their conference
voted for the Budget Control Act agreement less than a year
ago. By reneging on the agreement, House Republicans put
themselves at odds with House Democrats, the White House,
Senate Democrats, and Senate Republicans. Senate Minority
Leader McConnell recently voted for allocations at $1.047
trillion and Ranking Member Cochran stated that it's
appropriate ``for the Committee to proceed on the basis of the
discretionary caps enacted into law.'' House Republicans
introduced uncertainty about the discretionary allocation, and
about whether the House majority will threaten to shut down the
government. This uncertainty will slow down the appropriations
process and the austere House allocation, if it stands, will
stall economic growth and impede job creation.
Stemming from the committee's lower overall allocation, the
Agriculture subcommittee received an unacceptably low 302(b)
allocation of $19.405 billion. Including CFTC funding, the
allocation is $1.7 billion (8%) below the 2013 President's
request, $365 million (1.8%) below 2012 enacted and $1.38
billion (7%) below the Senate allocation.
The impact of this allocation is evident in the inadequate
funding provided for many important accounts in the bill.
The Commodity Futures Trading Commission is funded at $25
million (12%) below the 2012 level and $128 million (41%) below
the budget request. If enacted, this cut would mean a reduction
of 11% in current staffing levels at the agency. CFTC's ability
both to implement Dodd-Frank financial reform and regulate
financial markets would be severely restricted. A properly
funded and staffed CFTC is critical for greater transparency
and competition in markets, providing certainty for farmers,
ranchers, and small businesses that use these markets, and
protecting taxpayers from future bailouts. News reports
indicate that CFTC is currently involved in reviewing the
recent losses at J.P. Morgan; those losses serve as a reminder
that in order to prevent another financial crisis and protect
our economy Dodd-Frank financial regulations need to be both
written and enforced. In order to do that, CFTC needs adequate
resources.
The Food for Peace program is funded at $250 million (18%)
below the budget request. This program provides U.S.-grown
commodities to desperately hungry people around the world. A
cut of this size means that some 6.6 million people will not
receive assistance. House Republicans decided to include
international assistance programs under the security cap and
provided a much lower security allocation for this bill. The
2012 security allocation of $1.65 billion was reduced to $1.33
billion for 2013 and this gap was largely made up by cutting
Food for Peace. The Senate did not follow the House's approach
on security funding.
The Food and Drug Administration is funded at $16 million
below the 2012 level and $31 million below the budget request.
FDA oversees 80% of the nation's food supply, including foods
from more than 300,000 facilities in 200 countries. As
Commissioner Hamburg testified, ``about 70% of seafood and
about 35% of fresh produce consumed in the United States comes
from foreign countries.'' She also said that ``nearly 40% of
the drugs Americans take are made overseas,'' while
``approximately half of medical devices used in the United
States come from abroad.'' While the Committee report says that
requested increases for food safety, food and drug inspections
in China and medical countermeasures are funded, the bill is
still under the requested level and this is a zero-sum process.
Without being fully funded, FDA will have to make cuts
elsewhere to pay for these worthy increases.
The bill also rescinds nearly $48 million of unobligated
FDA funds. Since FDA normally obligates all of its non-user-
fee-funded salary and expenses appropriation each year, it is
likely that such a rescission would have to come from the fees
FDA receives from industry, such as prescription drug, medical
device and/or tobacco fees. This is a very troubling precedent.
The Commodity Supplemental Food Program is funded at $13.7
million (7%) below the budget request. This means that
approximately 43,000 participants, the vast majority of whom
are elderly, would not receive needed food packages.
The bill cuts funding for guaranteed loans to businesses
and industry in rural areas by $150 million below 2012 (18%)
and $160 million (19%) below the budget request. This means
fewer loans to businesses in rural areas and a missed
opportunity to create or save thousands of jobs.
Direct loans in the rural water and wastewater program are
$269 million below the budget request. This means that 179
loans assisting 351,000 rural residents in improving access to
safe and sanitary water and wastewater services will not be
made.
The bill also provides $119 million less than the budget
request for WIC. The reduction is achieved by not providing
resources for important program components such as
breastfeeding peer counselors and state information technology
investments. Funding for these important activities is made
subject to a determination that caseload can be met without
accessing the contingency reserve.
The bill includes two riders that are legislative in nature
and do not belong in an appropriations bill. The first rewrites
provisions of a final rule issued by USDA last December dealing
with livestock producers. The second permits the cultivation of
genetically modified crops to continue while litigation over
the regulatory status of the crops is pending.
We are also disappointed that amendments in full committee
to address the shortfalls in funding for CFTC, Food for
Progress and FDA failed, as did an amendment to strike the new
language relating to the livestock final rule.
While we will do our best to address the many shortcomings
of this bill as the process moves forward, we cannot support
the bill in its current form.

Norman D. Dicks.
Sam Farr.