Agriculture and Related Agencies: FY2015 Appropriations

Congressional research reportFeb 4, 2015

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Agriculture and Related Agencies:

FY2015 Appropriations

(name redacted), Coordinator

Specialist in Agricultural Policy

February 4, 2015

Congressional Research Service

7-....

www.crs.gov

R43669

Agriculture and Related Agencies: FY2015 Appropriations

Summary

The Agriculture appropriations bill funds the U.S. Department of Agriculture (USDA), except for

the Forest Service. It includes the Food and Drug Administration (FDA) and—in the House and

in even-numbered enacted fiscal years—the Commodity Futures Trading Commission (CFTC).

The FY2015 Agriculture and Related Agencies appropriation was enacted as Division A of the

FY2015 Consolidated Appropriations Act, P.L. 113-235 (December 16, 2014), an omnibus

appropriation that included 11 of the 12 appropriations subcommittee bills. Although the fiscal

year began under a continuing resolution, the House and Senate Appropriations Committees

reported their Agriculture appropriations bills (H.R. 4800 and S. 2389) in May 2014—the earliest

joint action in years. The House considered H.R. 4800 on the floor on June 11, 2014, procedurally

read through most of the bill, and adopted several amendments. The bill was left unfinished when

floor action was suspended due to House Whip leadership changes. The Senate considered a

minibus appropriations bill on June 19, 2014, that included the Agriculture bill. But Senate

consideration quickly stopped over a disagreement about procedures for amendments.

The official, enacted discretionary total in the FY2015 Agriculture appropriation is $20.575

billion, which is $90 million less than (-0.4%) the comparable Senate-basis amount for FY2014

that excludes CFTC. On a House jurisdiction basis that includes CFTC, the FY2015 discretionary

appropriation effectively is $20.825 billion, which is $55 million less than (-0.3%) the

comparable, official FY2014 amount. Despite the small decrease overall, many agencies receive

small increases compared with FY2014.

In addition to these amounts, the FY2015 appropriation includes another $116 million of

emergency spending that does not count against the discretionary allocation, including $91

million for agricultural conservation and $25 million for Ebola-related activity at FDA. Thus, if

the emergency spending is included in the comparison, the Senate-basis spending level that

includes emergency appropriations is $26 million greater than the comparable FY2014 amount.

Mandatory spending in the FY2015 Agriculture appropriation is $126.5 billion, nearly $2 billion

more than FY2014, mostly due to costs in child nutrition (school lunch and related programs).

Notable policy riders affecting the Agriculture appropriation this year include a provision to allow

white potatoes in the Special Supplemental Nutrition Program for Women, Infants, and Children

(WIC) “food package,” and to require a review of the WIC food package to determine whether

white potatoes would remain eligible. Regarding National School Lunch Program and School

Breakfast Program, the appropriation requires USDA to allow states to exempt schools that

demonstrate a hardship from implementing a whole grain requirement. The appropriation requires

scientific evidence before sodium reduction targets can go into effect. And it also prohibits

processed chicken cooked in China from being used in the National School Lunch Program and

other USDA child nutrition programs. The appropriation prevents the Grain Inspection, Packers,

and Stockyards Administration from finalizing proposed rules on livestock and poultry marketing

practices, and effectively bans horse slaughter by prohibiting USDA from inspecting horses.

Congressional Research Service

Agriculture and Related Agencies: FY2015 Appropriations

Contents

Scope of the Agriculture Appropriations Bill .................................................................................. 1

Action on FY2015 Appropriations .................................................................................................. 2

Overview ................................................................................................................................... 5

Administration Budget Request ................................................................................................ 5

House Action ............................................................................................................................. 5

Senate Action ............................................................................................................................ 6

Summary of Amounts in the Appropriation .................................................................................... 7

Bipartisan Budget Act of 2013 .................................................................................................. 7

302(b) Subcommittee Allocations ............................................................................................. 7

Comparison of Amounts for FY2015 ........................................................................................ 7

Sequestration Continues on Mandatory Accounts..................................................................... 8

Funding During the Continuing Resolution .............................................................................. 9

Applicability of House and Senate Report Language ............................................................. 10

USDA Agencies and Programs ...................................................................................................... 16

Departmental Administration .................................................................................................. 17

Agricultural Research, Education, and Extension ................................................................... 20

Agricultural Research Service .......................................................................................... 20

National Institute of Food and Agriculture ....................................................................... 22

National Agricultural Statistics Service ............................................................................ 23

Economic Research Service .............................................................................................. 23

Marketing and Regulatory Programs ...................................................................................... 23

Animal and Plant Health Inspection Service .................................................................... 23

Agricultural Marketing Service and “Section 32” ............................................................ 25

Grain Inspection, Packers and Stockyards Administration ............................................... 27

Food Safety ............................................................................................................................. 28

Food and Drug Administration (FDA) .............................................................................. 30

Food Safety and Inspection Service (FSIS) ...................................................................... 32

Farm Service Agency .............................................................................................................. 33

FSA Salaries and Expenses ............................................................................................... 33

FSA Farm Loan Programs ................................................................................................ 36

Commodity Credit Corporation .............................................................................................. 39

Crop Insurance ........................................................................................................................ 40

Disaster Assistance .................................................................................................................. 40

Conservation ........................................................................................................................... 41

Discretionary Conservation Programs .............................................................................. 41

Mandatory Conservation Programs .................................................................................. 43

Rural Development ................................................................................................................. 44

Rural Housing Service (RHS) ........................................................................................... 44

Rural Business-Cooperative Service (RBS) ..................................................................... 45

Rural Utilities Service (RUS) ........................................................................................... 45

Domestic Food Assistance ...................................................................................................... 52

SNAP and Other Programs under the Food and Nutrition Act ......................................... 52

Child Nutrition Programs .................................................................................................. 53

WIC Program .................................................................................................................... 55

Commodity Assistance Program ....................................................................................... 56

Nutrition Programs Administration................................................................................... 56

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Agriculture and Related Agencies: FY2015 Appropriations

Other Nutrition Funding Support ...................................................................................... 57

Agricultural Trade and Food Aid ............................................................................................ 61

Foreign Agricultural Service ............................................................................................. 61

Food for Peace Program (P.L. 480) ................................................................................... 62

Local and Regional Procurement (LRP) Projects ............................................................. 63

McGovern-Dole Food for Education and Child Nutrition ................................................ 63

Note: Appropriations Provision on Industrial Hemp ............................................................... 63

Related Agencies ........................................................................................................................... 64

Food and Drug Administration (FDA) .................................................................................... 65

Commodity Futures Trading Commission .............................................................................. 70

Farm Credit Administration .................................................................................................... 70

General Provisions, Scorekeeping Adjustments ............................................................................ 72

Changes in Mandatory Program Spending (CHIMPS) ........................................................... 72

Rescissions .............................................................................................................................. 75

Other Appropriations (Including Emergency Disaster Programs) .......................................... 75

Other Scorekeeping Adjustments ............................................................................................ 77

Figures

Figure 1. FY2015 Agriculture and Related Agencies Appropriations ............................................. 1

Figure 2. Congressional Action on Agriculture Appropriations, FY1995-FY2015......................... 4

Figure A-1. Total Agriculture Appropriations: Mandatory and Discretionary .............................. 78

Figure A-2. Total Agriculture Appropriations: Domestic Nutrition and Rest of Bill .................... 79

Figure A-3. Discretionary Agriculture Appropriations .................................................................. 80

Figure A-4. Agriculture Appropriations as Percentages of Total Federal Budget ......................... 84

Figure A-5. More Components as Percentages of Total Federal Budget....................................... 84

Figure A-6. Agriculture Appropriations as Percentages of GDP ................................................... 84

Figure A-7. Agriculture Appropriations per Capita of U.S. Population ........................................ 84

Tables

Table 1. Congressional Action on Agriculture Appropriations ........................................................ 3

Table 2. Agriculture and Related Agencies Appropriations, by Agency and Program ................... 11

Table 3. USDA Departmental Administration Appropriations ...................................................... 18

Table 4. USDA Research, Extension, and Economics (REE) Appropriations .............................. 21

Table 5. Food Safety Appropriations ............................................................................................. 29

Table 6. Farm Service Agency Appropriations .............................................................................. 35

Table 7. Farm Service Agency: Farm Loan Program .................................................................... 37

Table 8. Conservation Operations Funding ................................................................................... 42

Table 9. USDA Rural Development Appropriations ..................................................................... 47

Table 10. Domestic Food Assistance (USDA-FNS) Appropriations ............................................. 58

Table 11. Food and Drug Administration (FDA) Appropriations .................................................. 67

Table 12. Farm Credit Administration Limitation on Expenses .................................................... 71

Table 13. Changes in Mandatory Program Spending (CHIMPS).................................................. 74

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Agriculture and Related Agencies: FY2015 Appropriations

Table 14. Rescissions from (Prior-Year) Budget Authority ........................................................... 75

Table 15. Other Appropriations in General Provisions.................................................................. 76

Table 16. Scorekeeping Adjustments............................................................................................. 77

Table A-1. Trends in Nominal Agriculture Appropriations ........................................................... 80

Table A-2. Trends in Real Agriculture Appropriations .................................................................. 81

Table A-3. Percentage Changes in Agriculture Appropriations ..................................................... 83

Table A-4. Trends in Agriculture Appropriations Measured Against Benchmarks ....................... 85

Table B-1. Sequestration Rates and Amounts Cancelled from Agriculture Appropriations

Accounts ..................................................................................................................................... 86

Table B-2. Sequestration of Discretionary Agriculture Appropriations in FY2013 ...................... 87

Table B-3. Sequestration of Mandatory Agriculture Appropriations in FY2013-2015 ................ 89

Appendixes

Appendix A. Historical Trends ...................................................................................................... 78

Appendix B. Budget Sequestration ............................................................................................... 86

Contacts

Author Contact Information .......................................................................................................... 91

Congressional Research Service

Agriculture and Related Agencies: FY2015 Appropriations

Scope of the Agriculture Appropriations Bill

The Agriculture appropriations bill—formally known as the Agriculture, Rural Development,

Food and Drug Administration, and Related Agencies Appropriations Act—provides funding for:

all of the U.S. Department of Agriculture (USDA) except the Forest Service,

which is funded in the Interior appropriations bill,

the Food and Drug Administration (FDA) in the Department of Health and

Human Services, and

in the House, the Commodity Futures Trading Commission (CFTC). In the

Senate, the Financial Services bill contains CFTC appropriations. In evennumbered fiscal years, CFTC appears in the enacted Agriculture appropriation.

Jurisdiction is with the House and Senate Committees on Appropriations, and each Subcommittee

on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies. The

bill includes both mandatory and discretionary spending, although most appropriations decisionmaking concerns the latter. Figure 1 illustrates the distribution of agriculture appropriations

spending among major divisions and agencies in the enacted FY2015 appropriation.

Figure 1. FY2015 Agriculture and Related Agencies Appropriations

(budget authority in billions of dollars)

Source: CRS, compiled from P.L. 113-235. Does not show some agencies under $0.5 billion, including CFTC,

AMS, GIPSA, and department administration that together are essentially offset by other reductions.

Note: CCC = Commodity Credit Corp.; SNAP = Supplemental Nutrition Assistance Program; WIC = Special

Supplemental Nutrition Program for Women, Infants, and Children; CSFP = Commodity Supplemental Food

Program; FDA = Food and Drug Admin.; FSA = Farm Service Agency; RMA = Risk Management Agency; FSIS =

Food Safety Inspection Service; APHIS = Animal and Plant Health Inspection Service.

The federal budget process treats discretionary and mandatory spending differently.

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Agriculture and Related Agencies: FY2015 Appropriations

Discretionary spending is controlled by annual appropriations acts and consumes

most of the attention during the appropriations process. The annual budget

resolution process sets spending limits for discretionary appropriations. Agency

operations (salaries and expenses) and many grant programs are discretionary.

Mandatory spending—though carried in the appropriation and usually advanced

unchanged—is controlled by budget enforcement rules (e.g., PAYGO) during the

authorization process.1 Spending for eligibility and benefit formulas in so-called

entitlement programs are set in laws such as the farm bill and child nutrition act.2

In FY2015, discretionary appropriations totaled 14% ($20.6 billion) of the Agriculture

appropriations bill (P.L. 113-235). Mandatory spending carried in the bill comprised $126.5

billion, about 86% of the $147.1 billion total.3

Within the discretionary total, the largest discretionary spending items are for the Special

Supplemental Nutrition Program for Women, Infants, and Children (WIC), agricultural research,

FDA, rural development, foreign food aid and trade, farm assistance program salaries and loans,

food safety inspection, conservation, and animal and plant health programs (Figure 1).

The main mandatory spending items are the Supplemental Nutrition Assistance Program (SNAP,

and other food and nutrition act programs), child nutrition (school lunch and related programs),

crop insurance, and farm commodity and conservation programs paid through USDA’s

Commodity Credit Corporation (CCC).4 SNAP is referred to as an “appropriated entitlement,”

and requires an annual appropriation.5 The nutrition program amounts are based on projected

spending needs. In contrast, the Commodity Credit Corporation operates on a line of credit; the

annual appropriation provides funding to reimburse the Treasury for using the line of credit.

Action on FY2015 Appropriations6

The FY2015 Agriculture and Related Agencies appropriation was enacted as Division A of the

FY2015 Consolidated Appropriations Act, P.L. 113-235—an omnibus appropriation that included

11 of the 12 appropriations subcommittee bills. The omnibus bill was filed on December 11,

2014, passed in each chamber, and signed by the President on December 16, 2014.

Table 1 summarizes actions on FY2015 Agriculture appropriations—and each annual

appropriation since FY1995—for the subcommittees, full committees, House and Senate

chambers, and Presidential enactment. Figure 2 is a visual timeline of the dates in Table 1.

1

CRS Report 98-560, Baselines and Scorekeeping in the Federal Budget Process.

CRS Report R42484, Budget Issues That Shaped the 2014 Farm Bill.

3

Excludes CFTC appropriations, since the Financial Services bill carried CFTC appropriations for FY2015.

4

Mandatory spending in agriculture historically was reserved for programs such as the farm commodity programs and

crop insurance that had uncertain outlays because of weather and market conditions. Mandatory spending creates

funding stability and consistency compared to appropriations.

5

CRS Report RS20129, Entitlements and Appropriated Entitlements in the Federal Budget Process.

6

For a two-page summary of action and amounts in the House and Senate bills, see CRS In Focus IF10056, FY2015

Agriculture and Related Agencies Appropriations.

2

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Agriculture and Related Agencies: FY2015 Appropriations

Table 1. Congressional Action on Agriculture Appropriations

House Action

Senate Action

Final Appropriation

Fiscal

Year

Subcom.

Comm.

Chamber

Subcom.

Comm.

Chamber

Public Law

CRS

Report

1995

5/26/1994

6/9/1994

6/17/1994

6/22/1994

6/23/1994

7/20/1994

9/30/1994

E

P.L. 103-330

IB94011

1996

6/14/1995

6/27/1995

7/21/1995

9/13/1995

9/14/1995

9/20/1995

10/21/1995

E

P.L. 104-37

95-624

1997

5/30/1996

6/6/1996

6/12/1996

7/10/1996

7/11/1996

7/24/1996

8/6/1996

E

P.L. 104-180

IB96015

1998

6/25/1997

7/14/1997

7/24/1997

7/15/1997

7/17/1997

7/24/1997

11/18/1997

E

P.L. 105-86

97-201

1999

6/10/1998

6/16/1998

6/24/1998

6/9/1998

6/11/1998

7/16/1998

10/21/1998

O

P.L. 105-277

98-201

2000

5/13/1999

5/24/1999

6/8/1999

6/15/1999

6/17/1999

8/4/1999

10/22/1999

E

P.L. 106-78

RL30201

2001

5/4/2000

5/16/2000

7/11/2000

5/4/2000

5/10/2000

7/20/2000

10/28/2000

E

P.L. 106-387

RL30501

2002

6/6/2001

6/27/2001

7/11/2001

Polled out

7/18/2001

10/25/2001

11/28/2001

E

P.L. 107-76

RL31001

2003

6/26/2002

7/26/2002

—

7/23/2002

7/25/2002

—

2/20/2003

O

P.L. 108-7

RL31301

2004

6/17/2003

7/9/2003

7/14/2003

7/17/2003

11/6/2003

11/6/2003

1/23/2004

O

P.L. 108-199

RL31801

2005

6/14/2004

7/7/2004

7/13/2004

9/8/2004

9/14/2004

—

12/8/2004

O

P.L. 108-447

RL32301

2006

5/16/2005

6/2/2005

6/8/2005

6/21/2005

6/27/2005

9/22/2005

11/10/2005

E

P.L. 109-97

RL32904

2007

5/3/2006

5/9/2006

5/23/2006

6/20/2006

6/22/2006

—

2/15/2007

Y

P.L. 110-5

RL33412

2008

7/12/2007

7/19/2007

8/2/2007

7/17/2007

7/19/2007

—

12/26/2007

O

P.L. 110-161

RL34132

2009

6/19/2008

—

—

Polled out

7/17/2008

—

3/11/2009

O

P.L. 111-8

R40000

2010

6/11/2009

6/18/2009

7/9/2009

Polled out

7/7/2009

8/4/2009

10/21/2009

E

P.L. 111-80

R40721

2011

6/30/2010

—

—

Polled out

7/15/2010

—

4/15/2011

Y

P.L. 112-10

R41475

2012

5/24/2011

5/31/2011

6/16/2011

Polled out

9/7/2011

11/1/2011

11/18/2011

O

P.L. 112-55

R41964

2013

6/6/2012

6/19/2012

—

Polled out

4/26/2012

—

3/26/2013

O

P.L. 113-6

R43110

2014

6/5/2013

6/13/2013

—

6/18/2013

6/20/2013

—

1/17/2014

O

P.L. 113-76

R43110

2015

5/20/2014

Draftb

Voice vote

5/29/2014

H.R. 4800

H.Rept.

113-468

Vote of 3118

—

Considered

but

unfinished

6/11/2014

H.R. 4800

5/20/2014

Voice vote

5/22/2014

—

S. 2389

Considered

but

S.Rept. 113unfinished

164

6/19/2014

Vote 30-0c

H.R. 4660

Division Cd

12/16/2014

H.R. 83

H: 219-206

S: 56-40

Joint

explanatory

statemente

O

P.L. 113-235

R43669

Enacteda

Source: CRS.

a. E=Enacted as stand-alone appropriation; O=Omnibus appropriation; Y=Year-long continuing resolution.

b. The House subcommittee posted a draft of the bill at http://appropriations.house.gov/uploadedfiles/bills113hr-sc-ap-fy2015-agriculture-subcommitteedraft.pdf. Amendments adopted in the full committee markup

were posted at http://appropriations.house.gov/uploadedfiles/hmkp-113-ap00-20140529-sd005.pdf.

c. En bloc vote with the Military Construction-Veterans Affairs bill.

d. The Senate vehicle for Senate floor consideration was “minibus” appropriation that included three

committee-reported bills: Commerce-Justice-Science (Division A), Transportation-HUD (Division B), and

Agriculture (Division C, of S.Amdt. 3244 to H.R. 4660).

e. The joint explanatory statement was printed in the Congressional Record, Book II, December 11, 2014.

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Agriculture and Related Agencies: FY2015 Appropriations

Figure 2. Congressional Action on Agriculture Appropriations, FY1995-FY2015

Source: CRS. Arrows indicate action was completed in a new calendar year. “Gap” is government shutdown.

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Agriculture and Related Agencies: FY2015 Appropriations

Because Congress had not completed any of the FY2015 appropriations bills by the beginning of

the fiscal year, FY2015 began under a 10-week continuing resolution (P.L. 113-164) that lasted

until December 11, 2014.7 The continuing resolution (CR) generally extended funding under

FY2014 levels and conditions, with a small across-the-board reduction (0.0554%). Two

additional CRs were enacted to carry funding for several more days during final legislative

action, through December 13 and December 17 (P.L. 113-202 and P.L. 113-203, respectively).

Overview

During the regular FY2015 appropriations cycle, both the House and Senate Committees on

Appropriations reported their respective FY2015 Agriculture appropriations bills.8 In each

chamber, floor action began on a stand-alone bill, but proceedings stopped on both the House and

Senate floor before either bill was completed or brought to a final vote.

In the House, amendments were debated and some were adopted as the bill was read through Title

VI. Procedural reading of the bill stopped before Title VII (General Provisions) and the House did

not return to the bill—initially, because of the disruption caused by the defeat in a primary

election of Majority Leader Eric Cantor.

In the Senate, a minibus appropriation of three bills—including Agriculture—was brought to the

floor, but before debate of individual provisions began, consideration stopped over disagreements

about amendment procedures. Thus, the last official version of either stand-alone Agriculture bill

is the House committee-reported bill (H.R. 4800) and Senate committee-reported bill (S. 2389).

Administration Budget Request

The Administration released its FY2015 budget request on March 4, 2014.9 USDA concurrently

released its budget summary10 and detailed agency budget justifications.11

House Action

The Agriculture Subcommittee of the House Appropriations Committee held ten hearings on

FY2015 appropriations with various USDA agencies, FDA, and CFTC from March 5, 2014,

through April 8, 2014.

The subcommittee approved its FY2015 appropriations markup by voice vote on May 20, 2013.12

The full House Appropriations Committee reported the bill (H.R. 4800; H.Rept. 113-468) on May

29, 2014, by a vote of 31-18 and officially reported it on June 4 (Table 1).

The rule for House floor consideration of the bill (H.Res. 616) was adopted on June 11, 2014, and

House floor debate began later that day. Proceedings followed a modified open rule, with

amendments debated under the five-minute rule (10 minutes of debate equally divided). H.R.

7

CRS Report R43776, Congressional Action on FY2015 Appropriations Measures. See also CRS Report R42647,

Continuing Resolutions: Overview of Components and Recent Practices.

8

See CRS Report R42388, The Congressional Appropriations Process: An Introduction, for context on procedures.

9

Office of Management and Budget (OMB), Budget of the United States Government, Fiscal Year 2015, at http://

www.whitehouse.gov/omb/budget.

10

USDA, FY2015 Budget Summary, April 2014, at http://www.obpa.usda.gov/budsum/FY15budsum.pdf.

11

USDA, FY2015 USDA Budget Explanatory Notes for Committee on Appropriations, at http://www.obpa.usda.gov/

FY15explan_notes.html.

12

House subcommittee draft, http://appropriations.house.gov/uploadedfiles/bills-113hr-sc-ap-fy2015-agriculturesubcommitteedraft.pdf.

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Agriculture and Related Agencies: FY2015 Appropriations

4800 was read procedurally through the end of Title VI (FDA and CFTC), and several

amendments were adopted. However, the last title of the bill was not read, and the bill was left

unfinished due to political changes in House Whip leadership and concern over expected

amendments.13 House appropriations action proceeded to other bills and never returned to the

Agriculture bill. Thus, while some amendments to the Agriculture appropriations bill were

adopted on the floor, the amended bill was neither completed procedurally nor voted on as a

whole, and thus was not a chamber-passed version.

Senate Action

The Agriculture Subcommittee of the Senate Appropriations Committee held two hearings on the

FY2015 appropriation—March 26, 2014, on the USDA budget request, and April 3, 2014, on the

FDA budget request.

The subcommittee approved its FY2015 bill on May 20, 2014, by voice vote (Table 1). The full

committee reported the bill (S. 2389, S.Rept. 113-164) on May 22 by a 30-0 vote.14

The Senate adopted cloture on June 17, 2014, to bring a three-bill “minibus” appropriation to the

floor that included Commerce-Justice-Science (Division A), Transportation-HUD (Division B),

and Agriculture (Division C of S.Amdt. 3244 to H.R. 4660). However, proceedings stopped over

disagreements about procedures for amendments, and by late July the Senate’s appropriations

efforts had shifted to supplemental funding and the continuing resolution.15

Legislative Action Compared With Prior Fiscal Years

The last time an Agriculture appropriations bill was enacted as a stand-alone measure was for FY2010 (in 2009). A

final floor vote on an Agriculture appropriations bill has not occurred in the House or Senate since the FY2012 bill. In

the 20 years since FY1995, Agriculture appropriations bills were enacted as stand-alone measures nine times.

Omnibus appropriations were used ten times, and year-long continuing resolutions were used twice (Table 1; see

also CRS Report RL32473, Omnibus Appropriations Acts: Overview of Recent Practices).

Committee action on the FY2015 Agriculture appropriations bill was among the earliest in the last 20 years. Only for

FY2001 did both chambers’ committees complete action sooner. The delay in completing floor action in one or both

chambers is more typical in recent years, though not with floor action starting but being left unfinished.

At the Agriculture subcommittee level, both the House and Senate have approved draft bills every year since FY1995.

The full committees usually report a bill, with the exception for two years in the House (FY2009 and FY2011).

Floor action in each chamber is somewhat less predictable, with House floor action not taking place for FY2003,

FY2009, FY2011, FY2013, FY2014, and FY2015. In the Senate, floor action did not occur during those same six years,

and also not for FY2005, FY2007, and FY2008 (when the House did pass bills).

13

Congressional Quarterly, “House Leadership Turmoil Latest Obstacle for Spending Bills,” June 12, 2014.

The 30-0 vote was an en bloc vote on the Military Construction-Veterans Affairs bill and the Agriculture bill.

15

Congressional Quarterly, “With Senate Action Stalled, Continuing Resolution Looks Likely for Fall,” July 18, 2014.

14

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Agriculture and Related Agencies: FY2015 Appropriations

Summary of Amounts in the Appropriation16

Bipartisan Budget Act of 2013

The Bipartisan Budget Act of 2013 (P.L. 113-67, December 26, 2013) set the total governmentwide discretionary spending limits for both FY2014 and FY2015. These were upward revisions of

amounts that were originally targeted in the Budget Control Act of 2011 (P.L. 112-25). Total

FY2015 discretionary spending was capped at $1.014 trillion (the “302(a) allocation”).

The congressional intention was to avoid sequestration on discretionary accounts in FY2014 and

FY2015.17 However, budget sequestration on non-exempt mandatory accounts does continue in

these fiscal years (see “Sequestration Continues on Mandatory Accounts” and Appendix B).

The enactment of the Bipartisan Budget Act substituted for the usual budget resolution process

during the spring of 2014 and paved the way for action on FY2015 appropriations bills.18

302(b) Subcommittee Allocations

Of the $1.014 trillion total government-wide discretionary spending limit for FY2015, the House

Appropriations committee set a $20.880 billion discretionary limit for the Agriculture bill

(H.Rept. 113-454; the “302(b) allocation”). The total amount for the House bill equaled the

enacted amount in FY2014 and included the CFTC.

The Senate allocation for the agriculture bill was $20.575 billion (S.Rept. 113-163). It was lower

than the House bill and the FY2014 enacted level by $305 million, in large part due to the

absence of CFTC in the Senate bill’s jurisdiction, which was $215 million in FY2014.

The final 302(b) Agriculture subcommittee allocation for the omnibus was $20.575 billion, the

same as the Senate’s subcommittee allocation. The omnibus bill placed CFTC appropriations in

the Financial Services appropriation, as is customary in odd-numbered fiscal years.

Comparison of Amounts for FY2015

The official, enacted discretionary total in the FY2015 Agriculture appropriation (P.L. 113-235) is

$20.575 billion, which is $90 million less than (-0.4%) the comparable Senate-basis amount for

FY2014 that excludes CFTC. On a House jurisdiction basis that includes CFTC, the FY2015

discretionary appropriation effectively is $20.825 billion, which is $55 million less than (-0.3%)

the comparable, official FY2014 amount.

In addition to these amounts, the FY2015 appropriation includes another $116 million of

emergency spending that does not count against the discretionary allocation, including $91

million for agricultural conservation and $25 million for Ebola-related activity at FDA. Thus, if

the emergency spending is included in the comparison, the Senate-basis spending level that

includes emergency spending is $26 million greater than the comparable FY2014 amount

16

For a two-page summary of action and amounts in the House and Senate bills, see CRS In Focus IF10056, FY2015

Agriculture and Related Agencies Appropriations.

17

OMB, Final Sequestration Report to the President and Congress for Fiscal Year 2014, Feb. 7, 2014, at

http://www.whitehouse.gov/sites/default/files/omb/assets/legislative_reports/sequestration/

sequestration_final_feb2014.pdf.

18

CRS Report R43535, Provisions in the Bipartisan Budget Act of 2013 as an Alternative to a Traditional Budget

Resolution.

Congressional Research Service

7

Agriculture and Related Agencies: FY2015 Appropriations

(+0.1%); the House-basis spending level is $61 million greater than the comparable FY2014

amount (+0.3%).

Table 2 summarizes amounts in the FY2015 Agriculture appropriation. It compares the enacted

amount to appropriations for FY2012-FY2014, and the FY2015 House-reported, Senate-reported,

and Administration-requested amounts. The table lists the major agencies or programs in the

appropriation and the subtotals for titles in the bill. Although floor consideration began and

amendments were adopted on the House floor, this report presents the committee-reported

amounts since neither the House nor Senate Agriculture bills were adopted as stand-alone

measures at the chamber level.

The House-reported bill’s discretionary total (H.R. 4800) was the same as it was for FY2014:

$20.880 billion.

The Senate-reported bill total, like the enacted appropriation, is harder to compare because of

CFTC jurisdiction and because of disaster designations. The official total of the Senate-reported

Agriculture appropriations bill (S. 2389) was $20.575 billion, the same as the FY2015 enacted

amount. While this appeared to be less than the House-reported amount, it would have allowed

$100 million of emergency appropriations that were not in the House bill. This is a similar case as

when the enacted appropriation is compared to the FY2014 levels as explained above.

The Administration’s request was scored to be nearly $450 million less than the House- and

Senate-reported bills, though that difference was overstated because of sequestration scoring

differences discussed later in a text box in the section “Changes in Mandatory Program Spending

(CHIMPS).”

Key Budget Terms

Budget authority is the main output of an appropriations act or a law authorizing mandatory spending. It

provides the legal basis for agencies to obligate funds. It expires at the end of the period and usually is available for

one year unless specified otherwise (such as two-year or indefinite authority). Most amounts in this report are

budget authority.

Obligations reflect agency activities such as employing personnel or entering contracts. The Antideficiency Act

prohibits agencies from obligating more budget authority than is provided in law.

Outlays are payments (cash disbursements) that satisfy a valid obligation. Outlays may differ from budget authority

or obligations because payments from an agency may not occur until services are fulfilled, goods delivered, or

construction completed, even though an obligation occurred.

Program level represents the sum of the activities supported or undertaken by an agency. A program level may

be higher than a budget authority if the program (1) receives user fees that can be used to pay for activities; (2)

makes or guarantees loans that are leveraged on the expectation of repayment (more than $1 of loan authority for

$1 of budget authority); or (3) receives transfers from other agencies.

Rescissions are adjustments that cancel or reduce budget authority after it has been enacted; they score savings.

CHIMPS (Changes in Mandatory Program Spending) are adjustments to mandatory budget authority. CHIMPS in

appropriations usually reduce or limit spending by mandatory programs and score budgetary savings.

For more background, see CRS Report 98-405, The Spending Pipeline: Stages of Federal Spending.

Sequestration Continues on Mandatory Accounts

Sequestration is a process of automatic, largely across-the-board reductions that permanently

cancel mandatory and/or discretionary budget authority when spending would exceed statutory

Congressional Research Service

8

Agriculture and Related Agencies: FY2015 Appropriations

budget goals. Sequestration is required in the Budget Control Act of 2011 (BCA; P.L. 112-25).19

Although the Bipartisan Budget Act of 2013 (P.L. 113-67) raised spending limits in the BCA to

avoid sequestration of discretionary accounts in FY2014 and FY2015, it did not prevent or reduce

sequestration on mandatory accounts.

The text box shows the rates of sequestration and the total amount sequestered from accounts in

the Agriculture appropriations bill. In FY2014 and FY2015, over $1 billion has been sequestered

each year from mandatory programs in the Agriculture appropriations bill, primarily in the farm

commodity and conservation areas. Crop insurance and the nutrition programs are largely

exempt. Appendix B provides more detail about sequestration at the individual account level.

Sequestration affects some amounts for FY2015 as discussed in the sections “Mandatory

Conservation Programs” and “Changes in Mandatory Program Spending (CHIMPS).”

Sequestration Rates and Amounts Cancelled from Agriculture Accounts

(budget authority in millions of dollars)

Discretionary accounts

Mandatory accounts

Fiscal

Year

Rate

Amount

Rate

Amount

2013a

5.0%

1,153

5.1%

713

2014b

—

—

7.2%

1,052

2015c

—

—

7.3%

1,153

Source: OMB, various Reports to the Congress on the Joint Committee Sequestration. Compiled by CRS.

Notes: Sequestration rates are for non-exempt, non-defense accounts. Totals were computed by CRS.

a. OMB, Report to the Congress on the Joint Committee Sequestration for FY2013, March 1, 2013, at http://

www.whitehouse.gov/sites/default/files/omb/assets/legislative_reports/fy13ombjcsequestrationreport.

pdf.

b. OMB, Reports to the Congress on the Joint Committee Reductions for FY2014, May 20, 2013, at http://www.

whitehouse.gov/sites/default/files/omb/assets/legislative_reports/fy14_preview_and_joint_committee_

reductions_reports_05202013.pdf.

c. OMB, Report to the Congress on the Joint Committee Reductions for FY2015, March 10, 2014, at http://www.

whitehouse.gov/sites/default/files/omb/assets/legislative_reports/sequestration_order_report_

march2014.pdf.

Funding During the Continuing Resolution

The continuing resolution (P.L. 113-164) that lasted from October 1, 2014 until December 11,

2014—and the subsequent continuations through December 17, 2014—generally continued the

FY2014 appropriation but with a 0.0554% across-the-board rescission (Section 101(b)). That is,

accounts were funded during the CR at 99.9446% of their FY2014 amounts, as apportioned to the

agencies for the duration of the CR by the Office of Management and Budget (OMB).

Furthermore, any conditions or limitations that were in the FY2014 appropriation—such as in the

General Provisions title that affected the implementation of programs or that placed limits on

mandatory spending—continued to apply during the CR (Section 104).

19

See CRS Report R42972, Sequestration as a Budget Enforcement Process: Frequently Asked Questions.

Congressional Research Service

9

Agriculture and Related Agencies: FY2015 Appropriations

The CR provided for three “anomalies” that affected the Agriculture appropriations bill:

The SNAP program and other mandatory programs are funded “at the rate to

maintain program levels under current law” (Section 111). This is typical

language from prior years’ CRs regarding mandatory program spending.

The Commodity Assistance Program in the domestic food assistance portion of

the bill received increased funding (Section 116). The CR provided $275.7

million for this account, an increase of $6 million (+2%) above the FY2014 level.

All of the increase went to the Commodity Supplemental Food Program, which

received $208.7 million. These amounts were requested by the Administration

and proposed in both the House-reported and Senate-reported bills.

The Food and Drug Administration was allowed to incorporate outsourcing

facility fees, related to drug compounding (Section 117). These fees, authorized

by P.L. 113-54, were scheduled to begin in FY2015 (21 U.S.C. 379j-62).

The Congressional Budget Office (CBO) estimated that the CR provided the Agriculture bill an

annual rate of $20.789 billion of discretionary budget authority. This amount was after accounting

for the across-the-board reduction (-$12 million) and the additional amount for the Commodity

Assistance Program (+$6 million).20 Thus for Agriculture appropriations accounts, the CR was

nearly equal to (within 0.5% of) the total amounts proposed by the House and Senate, but without

the reallocations among agencies and instructions that were in the FY2015 reported bills.

Applicability of House and Senate Report Language

The joint explanatory statement continues long-standing language that makes House and Senate

report language applicable to interpretation of and implementation of the enacted appropriation.

“The explanatory statement is silent on provisions that were in both the House Report and

Senate Report that remain unchanged by this agreement;” and “House and Senate report

language that is not changed by the explanatory statement is approved and indicates

congressional intentions. The explanatory statement, while repeating some report

language for emphasis, does not intend to negate the language referred to above unless

expressly provided herein. In cases in which the House or the Senate have directed the

submission of a report, such report is to be submitted to both the House and Senate

Committees on Appropriations no later than 60 days after enactment of this Act, unless

otherwise directed.”21

20

CBO, H.J.Res. 124, Continuing Appropriations Resolution, 2015, Sep. 16, 2014, at http://www.cbo.gov/publication/

45727.

21

Joint Explanatory Statement for H.R. 83 (Congressional Record, December 11, 2014), Division A, Congressional

Directives.

Congressional Research Service

10

Table 2. Agriculture and Related Agencies Appropriations, by Agency and Program

(budget authority in millions of dollars)

Agency or Major Program

FY2012

FY2013

FY2014

P.L. 11255

P.L. 113-6

post-seq.

P.L. 11376

FY2015

Admin.

Request

House

H.R. 4800

Senate

S. 2389

P.L. 113235

Change from

FY2014 to FY2015

(P.L. 113-235)

$

%

SUMMARY by TITLE

I: Agricultural Programs

24,970.2

27,938.8

29,938.1

25,527.4

25,707.3

25,627.3

30,182.1

+244.0

+0.8%

Mandatory (M)

18,293.5

21,582.7

23,149.1

18,857.8

18,855.8

18,857.8

23,395.3

+246.2

+1.1%

Discretionary

6,676.7

6,356.2

6,789.0

6,669.6

6,851.5

6,769.5

6,786.9

-2.2

-0.0%

844.0

781.2

825.8

815.7

869.0

850.2

859.3

+33.5

+4.1%

2,405.2

2,279.9

2,569.7

2,385.9

2,590.8

2,606.9

2,582.4

+12.7

+0.5%

105,553.0

104,098.0

108,585.6

112,047.9

109,825.3

109,802.9

110,190.9

+1,605.3

+1.5%

Mandatory (M)

98,551.9

97,171.9

101,432.9

104,723.4

102,722.9

102,723.0

103,096.7

+1,663.8

+1.6%

Discretionary

7,001.1

6,926.1

7,152.7

7,324.5

7,102.3

7,079.9

7,094.1

-58.6

-0.8%

V: Foreign Assistance

1,835.7

1,705.9

1,838.5

1,777.0

1,856.0

1,843.2

1,848.3

+9.9

+0.5%

VI: Food and Drug Administration

2,505.8

2,386.0

2,560.7

2,584.2

2,582.9

2,597.3

2,597.3

+36.6

+1.4%

Commodity Futures Trading Commissiona

205.3

[194.0]

215.0

280.0

217.6

[280.0]

[250.0]

+35.0

+16.3%

VII: General Provisions: CHIMPS & rescissions

-1,650.7

-918.4

-987.0

-1,021.0

-792.0

-817.0

-802.0

+185.0

-18.7%

General Provisions: Other appropriations

377.1

132.5

106.6

2.0

0.0

143.3

122.6

+16.0

+15.0%

Scorekeeping adjustmentsb

-72.0

-129.0

-191.0

-398.0

-398.0

-398.0

-398.0

-207.0

+108.4%

Subtract disaster declaration in this bill

-367.0

—

—

—

—

-100.0

-116.0

na

na

Discretionary: Senate basis w/o CFTC

[19,556.0]

19,520.4

[20,665.0]

20,139.8

[20,662.4]

20,575.4

20,575.0

-90.0

-0.4%

Discretionary: House basis w/ CFTC

19,761.3

[19,714.4]

20,880.0

20,419.8

20,880.0

[20,855.4]

[20,825.0]

-55.0

-0.3%

Subtotal Mandatory (M)

116,845.4

118,754.6

124,582.0

123,581.2

121,578.7

121,580.8

126,492.0

+1,910.0

+1.5%

136,401.4

138,275.0

145,247.0

143,720.9

142,241.2

142,156.1

147,067.0

+1,820.0

+1.3%

II: Conservation Programs

III: Rural Development

IV: Domestic Food Programs

Total: Senate basis, w/o CFTC

CRS-11

FY2012

FY2013

FY2014

P.L. 11255

P.L. 113-6

post-seq.

P.L. 11376

Admin.

Request

House

H.R. 4800

507.6

531.3

526.1

380.9

360.1

379.6

Agricultural Research Service

1,094.6

1,016.9

1,122.5

1,104.4

1,275.3

National Institute of Food & Agriculture

1,202.3

1,142.0

1,277.1

1,335.5

National Agricultural Statistics Service

158.6

166.6

161.2

Economic Research Service

77.7

71.4

Under Secretary, Research, Education, Econ.

0.8

Animal & Plant Health Inspection Service

Agricultural Marketing Service

Agency or Major Program

FY2015

Senate

S. 2389

P.L. 113235

Change from

FY2014 to FY2015

(P.L. 113-235)

$

%

364.5

-161.7

-30.7%

1,139.7

1,177.6

+55.1

+4.9%

1,273.8

1,292.4

1,289.5

+12.4

+1.0%

179.0

169.4

178.2

172.4

+11.2

+6.9%

78.1

83.4

85.8

85.4

85.4

+7.3

+9.4%

0.8

0.9

0.9

0.9

0.9

0.9

+0.0

+0.6%

819.7

761.4

824.9

837.5

870.7

875.6

874.5

+49.6

+6.0%

83.4

75.7

81.3

84.2

82.4

83.0

82.4

+1.1

+1.4%

1,080.0

1,049.6

1,107.0

1,122.0

1,122.0

1,122.0

1,284.0

+177.0

+16.0%

Grain Inspection, Packers & Stockyards

37.8

37.3

40.3

44.0

43.7

44.0

43.0

+2.8

+6.9%

Under Secretary, Marketing and Regulatory

0.8

0.8

0.9

0.9

0.9

0.9

0.9

+0.0

+0.6%

1,004.4

977.3

1,010.7

1,001.4

1,005.2

1,022.8

1,016.5

+5.8

+0.6%

0.8

0.8

0.8

0.8

0.8

0.8

0.8

+0.0

+0.6%

1,612.5

1,503.9

1,592.2

1,539.4

1,605.1

1,589.1

1,603.3

+11.0

+0.7%

FSA Farm Loans: Loan Authorityd

4,787.1

4,575.7

5,527.3

6,402.1

6,402.1

6,402.1

6,402.1

+874.8

+15.8%

Risk Management Agency Salaries & Exp.

74.9

69.1

71.5

76.8

77.1

76.8

74.8

+3.3

+4.7%

Federal Crop Insurance Corporation (M)e

3,142.4

9,514.5

9,502.9

8,668.0

8,666.0

8,668.0

8,666.0

-836.9

-8.8%

Title I: Agricultural Programs

Departmental Administration

Research, Education and Economics

Marketing and Regulatory Programs

Section 32 (M)

Food Safety

Food Safety & Inspection Service

Under Secretary, Food Safety

Farm and Commodity Programs

Farm Service Agencyc

CRS-12

FY2012

FY2013

FY2014

Agency or Major Program

P.L. 11255

P.L. 113-6

post-seq.

P.L. 11376

Admin.

Request

House

H.R. 4800

Commodity Credit Corporation (M)e

14,071.0

11,018.5

12,538.9

9,067.3

9,067.3

9,067.3

0.8

0.8

0.9

0.9

0.9

Mandatory (M)

18,293.5

21,582.7

23,149.1

18,857.8

Discretionary

6,676.7

6,356.2

6,789.0

Subtotal

24,970.2

27,938.8

Conservation Operations

828.2

Watershed Rehabilitation Program

Under Secretary, Natural Resources

Under Secretary, Farm and Foreign Agr.

FY2015

Senate

S. 2389

P.L. 113235

Change from

FY2014 to FY2015

(P.L. 113-235)

$

%

13,444.7

+905.8

+7.2%

0.9

0.9

+0.0

+0.6%

18,855.8

18,857.8

23,395.3

+246.2

+1.1%

6,669.6

6,851.5

6,769.5

6,786.9

-2.2

-0.0%

29,938.1

25,527.4

25,707.3

25,627.3

30,182.1

+244.0

+0.8%

766.8

812.9

814.8

843.1

849.3

846.4

+33.5

+4.1%

15.0

13.6

12.0

—

25.0

—

12.0

+0.0

+0.0%

0.8

0.8

0.9

0.9

0.9

0.9

0.9

+0.0

+0.6%

844.0

781.2

825.8

815.7

869.0

850.2

859.3

+33.5

+4.1%

653.9

613.0

657.4

659.6

678.2

682.9

678.2

+20.8

+3.2%

1,090.3

1,031.1

1,279.6

1,228.6

1,310.4

1,307.0

1,298.4

+18.7

+1.5%

26,546.0

27,335.1

27,408.1

26,803.6

27,563.9

27,423.6

27,421.5

+13.4

+0.0%

109.3

114.2

130.2

139.2

99.6

111.7

103.2

-27.0

-20.7%

869.8

953.7

1,022.8

772.5

1,028.7

1,022.8

984.5

-38.3

-3.7%

551.0

520.8

501.6

357.6

501.8

504.4

501.7

+0.2

+0.0%

8,676.9

8,849.4

7,514.5

6,589.2

7,498.8

7,474.4

7,464.1

-50.4

-0.7%

Subtotal

Title II: Conservation Programs

Subtotal

Title III: Rural Development

Salaries and Expenses (including transfers)

Rural Housing Service

RHS Loan Authorityd

Rural Business-Cooperative Servicef

RBCS Loan Authorityd

Rural Utilities Service

RUS Loan Authorityd

Under Secretary, Rural Development

0.8

0.8

0.9

0.9

0.9

0.9

0.9

+0.0

+0.6%

Subtotalf

2,405.2

2,279.9

2,569.7

2,385.9

2,590.8

2,606.9

2,582.4

+12.7

+0.5%

Subtotal, RD Loan Authorityd

36,092.7

37,138.2

35,945.4

34,165.3

36,091.3

35,920.8

35,870.1

-75.3

-0.2%

CRS-13

FY2012

FY2013

FY2014

P.L. 11255

P.L. 113-6

post-seq.

P.L. 11376

Admin.

Request

House

H.R. 4800

Child Nutrition Programs (M)

18,151.2

19,913.2

19,288.0

20,537.0

20,523.8

20,497.0

WIC Program

6,618.5

6,522.2

6,715.8

6,823.0

6,623.0

SNAP, Food & Nutrition Act Programs (M)

80,401.7

77,285.4

82,169.9

84,256.4

Commodity Assistance Programs

242.3

243.7

269.7

Nutrition Programs Administration

138.5

132.7

0.8

Mandatory (M)

Discretionary

Agency or Major Program

FY2015

Senate

S. 2389

P.L. 113235

Change from

FY2014 to FY2015

(P.L. 113-235)

$

%

21,300.2

+2,012.2

+10.4%

6,623.0

6,623.0

-92.8

-1.4%

82,251.1

82,251.4

81,837.6

-332.4

-0.4%

275.7

275.7

275.7

278.5

+8.8

+3.3%

141.3

155.0

150.8

155.0

150.8

+9.5

+6.7%

0.8

0.8

0.8

0.8

0.8

0.8

+0.0

+0.6%

98,551.9

97,171.9

101,432.9

104,723.4

102,722.9

102,723.0

103,096.7

+1,663.8

+1.6%

7,001.1

6,926.1

7,152.7

7,324.5

7,102.3

7,079.9

7,094.1

-58.6

-0.8%

105,553.0

104,098.0

108,585.6

112,047.9

109,825.3

109,802.9

110,190.9

+1,605.3

+1.5%

176.3

163.1

177.9

182.6

182.6

182.8

181.4

+3.6

+2.0%

Public Law 480 and admin. expenses

1,468.5

1,362.0

1,468.7

1,402.5

1,468.5

1,468.5

1,468.5

-0.2

-0.0%

McGovern-Dole Food for Education

184.0

174.5

185.1

185.1

198.1

185.1

191.6

+6.5

+3.5%

6.8

6.3

6.7

6.7

6.7

6.7

6.7

+0.0

+0.0%

1,835.7

1,705.9

1,838.5

1,777.0

1,856.0

1,843.2

1,848.3

+9.9

+0.5%

2,505.8

2,386.0

2,560.7

2,584.2

2,582.9

2,597.3

2,597.3

+36.6

+1.4%

205.3

[194.0]

215.0

280.0

217.6

[280.0]

[250.0]

+35.0

+16.3%

2,711.1

2,386.0

2,775.7

2,864.2

2,800.4

2,597.3

2,597.3

na

na

Title IV: Domestic Food Programs

Office of Under Secretary

Subtotal

Subtotal

Title V: Foreign Assistance

Foreign Agricultural Service

CCC Export Loan Salaries

Subtotal

Title VI: Related Agencies

Food and Drug Administration

Commodity Futures Trading Commissiona

Subtotal

CRS-14

FY2012

FY2013

FY2014

P.L. 11255

P.L. 113-6

post-seq.

P.L. 11376

Admin.

Request

House

H.R. 4800

-1,631.8

-893.0

-953.7

-1,008.0

-779.0

-804.0

Rescissions

-18.9

-25.3

-33.3

-13.0

-13.0

Other appropriations

377.1

132.5

106.6

2.0

Subtotal

-1,273.6

-785.9

-880.4

Disaster declaration in this bill

-367.0

—

Other scorekeeping adjustments

-72.0

-439.0

Agency or Major Program

FY2015

Senate

S. 2389

P.L. 113235

Change from

FY2014 to FY2015

(P.L. 113-235)

$

%

-785.0

+168.7

-17.7%

-13.0

-17.0

+16.3

-49.0%

0.0

143.3

122.6

+16.0

+15.0%

-1,019.0

-792.0

-673.7

-679.4

+201.0

-22.8%

—

—

—

-100.0

-116.0

-116.0

na

-129.0

-191.0

-398.0

-398.0

-398.0

-398.0

-207.0

+108.4%

-129.0

-191.0

-398.0

-398.0

-498.0

-514.0

-323.0

+169.1%

Title VII: General Provisions

Changes in Mandatory Program Spendingf

Scorekeeping adjustmentsb

Subtotal

Source: CRS, compiled from the joint explanatory statements or committee reports for P.L. 113-235, S. 2389, H.R. 4800, P.L. 113-76, and P.L. 112-55. Amounts for

FY2013 in P.L. 113-6 are at the post-sequestration level from the USDA FY2013 Operating Plan. Scorekeeping adjustments are from unpublished CBO tables.

Notes:.[Bracketed amounts] are not in the official totals due to differing House-Senate jurisdiction for CFTC, but are shown for comparison. Amounts are in nominal

dollars, and are budget authority in millions of dollars. Amounts do not include supplemental appropriations outside the annual appropriation.

a. Jurisdiction for CFTC is in the House Agriculture Appropriations subcommittee and the Senate Financial Services Appropriations subcommittee. After FY2008,

CFTC is carried in enacted Agriculture appropriations in even-numbered fiscal years, always in House Agriculture markup, and never in Senate Agriculture markup.

b. “Scorekeeping adjustments” are not necessarily appropriated items and may not be shown in appropriations committee tables, but are part of the official CBO score

(accounting) of the bill. They predominately include “negative subsidies” in loan program accounts, and adjustments for disaster designations in the bill.

c. Includes regular FSA salaries and expenses, plus transfers for farm loan program salaries and expenses and farm loan program administrative expenses. Also includes

farm loan program loan subsidy, State Mediation Grants; Dairy Indemnity Program (mandatory funding); and Grassroots Source Water Protection Program. Does

not include amounts appropriated to the Foreign Agricultural Service for export loans and P.L. 480 administration and transferred to FSA.

d. Loan authority is the amount of loans that can be made or guaranteed with a loan subsidy; it is not added in the budget authority subtotals or totals.

e. Commodity Credit Corporation and Federal Crop Insurance Corporation each receive an indefinite appropriation (“such sums as necessary”). Estimates are used in

the appropriations bill reports and may not reflect actual outlays or reimbursements.

f.

Amounts for the Rural Business Cooperative Service are before the rescission from the Cushion of Credit account. This allows the RBS total to remain positive,

unlike in Appropriations committee tables. The rescission is included with the changes in mandatory program spending (CHIMPS) in the General Provisions section.

CRS-15

Agriculture and Related Agencies: FY2015 Appropriations

USDA Agencies and Programs

About 95% of the total appropriation for the U.S. Department of Agriculture (USDA) is funded

through the Agriculture appropriations bill. The department was created in 1862 and carries out

widely varied responsibilities through about 30 separate internal agencies and offices staffed by

nearly 100,000 employees.22 Funding for about two-thirds of those employees is provided in the

Agriculture appropriation. The remaining one-third of the employees, about 33,000 staff years,

are in the Forest Service, funded by the Interior and Related Agencies Appropriations bill.23

This report is organized in the order that the agencies are listed in the Agriculture appropriations

bill (except for the portion of FDA appropriations for food safety, which is discussed in a

comprehensive section on food safety). See Table 2 and tables in some of the following sections

for more details on the amounts for specific agencies.

USDA Compared to the Appropriations Bill

Agriculture appropriations are not perfectly correlated with USDA spending.

Agriculture appropriations include the FDA and CFTC (that are outside USDA), and

do not fund the Forest Service (that is part of USDA). The Forest Service is funded

in the Interior and Related Agencies appropriations bill.

Similarly, USDA spending is not synonymous with farm program spending. It includes

programs that may not be considered agricultural, such as nutrition assistance and

rural development.

USDA divides its activities into mission areas that are different from how the

appropriation is organized in titles.

Food and nutrition programs—with more than three-fourths of USDA’s

budget—comprise USDA’s largest mission area. This is Title IV of the

appropriation.

The second-largest mission area, with about one-eighth of USDA’s budget, is

farm and foreign agricultural services. This mission area is split between

appropriations Title I (domestic) and Title V (foreign trade and aid).

Five other mission areas share one-eighth of USDA’s budget, including natural

resources, rural development, research, marketing and regulatory programs,

and food safety. In appropriations bills, rural development is Title III, and

conservation is Title II (the part of the natural resources mission area without

the Forest Service). The other three mission areas others are combined into

Title I of the appropriation.

The type of funding (mandatory or discretionary) also is an important difference

between how the appropriations bill and USDA’s mission areas are organized.

22

23

USDA mission area totals include both mandatory and discretionary spending.

In the appropriation, conservation (Title II), rural development (Title III), and

agricultural research (part of Title I) include only discretionary amounts.

Mandatory amounts for these programs are contained within the Commodity

Credit Corporation amount in Title I.

USDA, FY2015 Budget Summary, April 2014, p. 112, at http://www.obpa.usda.gov/budsum/FY15budsum.pdf.

See CRS Report R43142, Interior, Environment, and Related Agencies: FY2013 and FY2014 Appropriations.

Congressional Research Service

16

Agriculture and Related Agencies: FY2015 Appropriations

Departmental Administration24

The Agriculture appropriations bill has several accounts that provide for the general

administration of the USDA, ranging from the immediate Office of the Secretary, to the Office of

Inspector General, to facilities rental payments.

One notable administrative change for FY2015 is that the enacted appropriation follows both the

House- and Senate-reported bills in changing the long-standing practice of paying for rental

expenses from a central account for all agencies throughout the department. Although the federal

government owns many of the facilities in which agencies are housed, USDA rents some

buildings and facilities from private vendors. In the past, all of USDA’s rental obligations ($178

million in FY2014) were paid from a separate account at the Department level. For FY2015,

Congress concurred with the Administration’s request that such payments be paid by the

individual agencies. Thus, despite savings at the Departmental Administration level, many agency

budgets were increased to compensate for the additional obligation of rental expenses. If

agencies’ budgets were not increased by at least the amount of rental payments being shifted,

their net appropriation may reflect an effective decrease from prior years. The effect of shifting

these costs into agency budgets is noted for many agencies later in this report. Therefore, the

$162 million decrease in Departmental Administration is largely due to the accounting change in

rental payments (-$178 million) and is offset by diffuse and usually corresponding increases in

individual agency budgets throughout the rest of the appropriation.

For FY2015, the enacted appropriation provides $364 million for Departmental Administration

(Table 3). Some of the increases for administrative agencies and offices within this heading are,

in part, to pay for the addition of rental payments in their budgets. Beyond the $178 million

reduction because of the shift in rental expense responsibilities, amounts for other offices in

Departmental Administration generally are unchanged from FY2014 or share a combined $15

million increase (about +4% overall).

The House-reported bill would have provided $4 million less than the final amount, and the

Senate bill would have provided $15 million more than the final amount. The differences between

the House and Senate bills were that the Office of Communications, General Counsel, and

Departmental Administration would have received the President’s requested amount, rather than a

smaller House-reported amount. The Senate bill also would have provided $10 million more than

the House bill and FY2014 for building operations and maintenance, the level requested by the

Administration.

24

This section was written by (name redacted)

-....,(7 [redacted]@crs.loc.gov

).

Congressional Research Service

17

Table 3. USDA Departmental Administration Appropriations

(budget authority in millions of dollars)

FY2012

FY2013

FY2014

P.L. 112-55

P.L. 113-6

post-seq.

P.L. 113-76

Office of the Secretary

4.55

4.69

5.05

5.09

5.05

5.09

Office of Tribal Relations

0.45

0.46

0.50

0.50

0.50

Office of Homeland Security

1.32

1.39

1.50

1.51

Advocacy and Outreach

1.21

1.32

1.21

Assistant Secretary for Admin.

0.76

0.75

Departmental Administration

24.17

Asst. Sec. Congressional Relations

Office of Communications

Administrative Office

FY2015

Admin.

Request

House

H.R. 4800

Senate

2389

S.

P.L. 113235

Change from

FY2014 to FY2015

(P.L. 113-235)

$

%

5.05

+0.00

+0.0%

0.50

0.50

+0.004

+0.8%

1.51

1.51

1.50

+0.00

+0.0%

1.22

1.21

1.22

1.21

+0.00

+0.0%

0.80

0.81

0.80

0.81

0.80

+0.00

+0.0%

22.50

22.79

25.66

22.81

25.31

25.12

+2.34

+10.3%

3.58

3.59

3.87

3.90

3.87

3.90

3.87

+0.00

+0.0%

8.07

8.36

8.07

8.14

5.54

8.14

7.75

-0.32

-3.9%

44.10

43.06

43.78

46.82

41.28

46.47

45.81

+2.03

+4.6%

Office of Chief Economist

11.18

15.01

16.78

16.85

16.78

16.85

17.38

+0.60

+3.6%

National Appeals Division

12.84

13.19

12.84

13.43

13.32

13.43

13.32

+0.48

+3.7%

Office of Budget, Program Analysis

8.95

8.35

9.06

10.29

9.39

9.31

9.39

+0.33

+3.6%

32.96

36.56

38.68

40.58

39.49

39.59

40.09

+1.40

+3.6%

Chief Information Officer

44.03

40.65

44.03

45.20

45.03

45.20

45.05

+1.01

+2.3%

Chief Financial Officer

5.65

5.77

6.21

6.08

6.03

6.08

6.03

-0.19

-3.0%

Assistant Secretary for Civil Rights

0.85

0.83

0.89

0.90

0.90

0.90

0.90

+0.01

+0.6%

Office of the Secretary

Subtotal

Executive Operations

Subtotal

Other Administration

CRS-18

FY2012

FY2013

FY2014

P.L. 112-55

P.L. 113-6

post-seq.

P.L. 113-76

Office of Civil Rights

21.00

21.02

21.40

24.24

24.07

24.24

Buildings, facilities, rental payments

230.42

252.40

233.00

64.83

54.83

Hazardous materials management

3.59

3.70

3.59

3.60

Office of Inspector General

85.62

82.30

89.90

General Counsel

39.35

41.87

Office of Ethics

—

Administrative Office

Subtotal

Total, Departmental Administration

FY2015

Admin.

Request

House

H.R. 4800

Senate

2389

S.

P.L. 113235

Change from

FY2014 to FY2015

(P.L. 113-235)

$

%

24.07

+2.67

+12.5%

64.84

55.87

-177.13

-76.0%

3.60

3.60

3.60

+0.01

+0.2%

97.24

97.02

97.24

95.03

+5.12

+5.7%

41.20

47.57

44.38

47.57

44.38

+3.18

+7.7%

3.14

3.44

3.87

3.44

3.87

3.65

+0.21

+6.2%

430.50

451.68

443.67

293.51

279.29

293.53

278.57

-165.10

-37.2%

507.57

531.30

526.13

380.90

360.06

379.59

364.46

-161.67

-30.7%

Source: CRS, compiled from tables in the joint explanatory statements or committee reports for P.L. 113-235, S. 2389, H.R. 4800, P.L. 113-76, and P.L. 112-55. Amounts for

FY2013 in P.L. 113-6 are at the post-sequestration level and are from the USDA FY2013 Operating Plan.

CRS-19

Agriculture and Related Agencies: FY2015 Appropriations

Agricultural Research, Education, and Extension25

Four agencies carry out USDA’s research, education, and economics (REE) mission:

The Agricultural Research Service (ARS), USDA’s intramural science agency,

conducts long-term, high-risk, basic and applied research on food and agriculture

issues of national and regional importance.

The National Institute of Food and Agriculture (NIFA) distributes federal

funds to land grant colleges of agriculture to provide partial support for statelevel research, education, and extension.

The National Agricultural Statistics Service (NASS) collects and publishes

current national, state, and county agricultural statistics. NASS also is

responsible for administration of the Census of Agriculture, which occurs every

five years and provides comprehensive data on the U.S. agricultural economy.

The Economic Research Service (ERS) provides economic analysis of issues

regarding public and private interests in agriculture, natural resources, food, and

rural America.

For FY2015, the appropriation provides $2.725 billion to the USDA REE mission area, which is

$86 million more than in FY2014 (+3%). After FY2010, none of the annual appropriations have

included any earmarks or congressionally designated spending items for REE-related activities.

Across REE, about half of the overall increase is for ARS buildings and facilities (+$45 million),

an account that has not received any appropriation in recent years (Table 4). Furthermore, after

adjusting for the additional cost of building rental payments at the agency level (rather than the

former practice of being paid from a central account at the department level), most programs in

REE remain at effectively the same levels as in FY2014.

The increases in the FY2014 and FY2015 funding levels come after three years of reductions.

Appropriations to the REE mission area declined nearly 16% from FY2010 to FY2013. ARS

appropriations declined nearly 19% and NIFA by 15% from FY2010 to FY2013. The increases

for the mission area in FY2014 and FY2015 restore some of those reductions since FY2010 in

absolute terms, but less so in inflation-adjusted terms. The FY2015 enacted amount (including

buildings and facilities) for ARS remains 6% below the FY2010 level ($1.25 billion), and the

FY2015 amount for NIFA is 4% below the FY2010 level ($1.34 billion). Thus, agricultural

research stakeholders continue to express concern for research funding over the long term.

Agricultural Research Service

For FY2015, the enacted appropriation provides $1.133 billion for ARS salaries and expenses,

plus $45 million for ARS buildings and facilities construction. The salaries and expenses portion

is $10 million more than FY2014 (+1%) and in between the House- and Senate- proposed

amounts. Much of the increase (about $7 million) will pay for building rental payments that ARS

must now pay rather than being paid from a central departmental account.

25

This section was written by (name redacted)

-....,(7 [redacted]@crs.loc.gov

).

Congressional Research Service

20

Table 4. USDA Research, Extension, and Economics (REE) Appropriations

(budget authority in millions of dollars)

FY2010

FY2012

FY2013

FY2014

FY2015

P.L. 11180

P.L.

112-55

P.L.

113-6

P.L.

113-76

Base

1,250.5

1,094.6

1,016.9

1,122.5

—

—

—

1,343.2

1,202.3

788.2

AFRI (competitive grants)

Admin. Request

Change from

FY2014 to

P.L. 113-235

Initiative

House

H.R.

4800

Senate

S. 2389

P.L.

113-235

$

%

1,104.4

42.2

1,120.3

1,139.7

1,132.6

+10.1

+0.9%

—

—

155.0

155.0

—

45.0

+45.0

na

1,142.0

1,277.1

1,335.5

80.0

1,273.8

1,292.4

1,289.5

+12.4

+1.0%

705.6

683.2

772.6

837.7

80.0

774.5

787.5

786.9

+14.3

+1.9%

262.5

264.5

275.6

316.4

325.0

60.0

325.0

325.0

325.0

+8.6

+2.7%

Hatch Act (1862 institutions)

215.0

236.3

218.6

243.7

243.7

15.0

243.7

243.7

243.7

+0.0

+0.0%

Evans-Allen (1890s institutions)

48.5

50.9

47.1

52.5

52.5

5.0

52.5

52.5

52.5

+0.0

+0.0%

McIntire-Stennis (forestry)

29.0

32.9

30.5

34.0

34.0

—

34.0

34.0

34.0

+0.0

+0.0%

Innovation Institutes

—

—

—

—

75.0

—

—

—

—

—

—

Other

233.2

121.0

111.5

126.0

107.6

—

119.3

132.4

131.7

+5.7

+4.5%

Extension

494.9

475.2

439.1

469.2

469.0

—

467.3

472.7

471.7

+2.5

+0.5%

Smith-Lever (b) & (c)

297.5

294.0

271.3

300.0

300.0

—

300.0

300.0

300.0

+0.0

+0.0%

Smith-Lever (d)

101.3

99.3

91.7

85.5

85.7

—

85.7

85.5

85.5

+0.0

+0.0%

Other

96.1

81.8

76.1

83.7

83.2

—

81.6

87.2

86.2

+2.5

+3.0%

60.0

21.5

19.8

35.3

28.8

—

32.0

32.2

30.9

-4.4

-12.5%

National Agricultural Statistics Service

161.8

158.6

166.6

161.2

179.0

—

169.4

178.2

172.4

+11.2

+6.9%

Economic Research Service

82.5

77.7

71.4

78.1

83.4

—

85.8

85.4

85.4

+7.3

+9.4%

Total, REE appropriation

2,838.0

2,533.3

2,397.0

2,638.8

2,702.4

277.2

2,804.2

2,695.6

2,724.9

+86.1

+3.3%

Agency or Major Program

Agricultural Research Service

Buildings and Facilities

National Institute of Food and Agriculture

Research and Education

Integrated Activities

Source: CRS, compiled from tables in the joint explanatory statements or committee reports for P.L. 113-235, S. 2389, H.R. 4800, P.L. 113-76, P.L. 112-55, and P.L. 11180. Amounts for FY2013 in P.L. 113-6 are at the post-sequestration level and are from the USDA FY2013 Operating Plan.

CRS-21

Agriculture and Related Agencies: FY2015 Appropriations

The $45 million for buildings and facilities construction is the first time in several years that this

account has received appropriations. The joint explanatory statement directs it for “priorities

identified in the USDA ARS Capital Investment Strategy.”26 This amount is less than the $155

million proposed in the House bill and the Administration’s Opportunity, Growth, and Security

(OGS) Initiative and is not specific to a facility, unlike the OGS request that was for a new biocontainment facility at the Poultry Research Facility in Athens, GA. The Senate-reported bill did

not contain any amount for buildings and facilities. (The OGS Initiative is not included in the

request column of Appropriations committee tables, but is shown in Table 4.)

The joint explanatory statement, as well as the House and Senate report language, rejects the

Administration’s request to close six ARS research centers and to redirect research programs at

other laboratories. This is a continuation of the instructions in recent years’ appropriations.

In addition to the base request for ARS and the OGS Initiative for buildings and facilities, the

Administration proposed an additional $42 million in the Opportunity, Growth, and Security

(OGS) Initiative to support five high-priority research areas across the agency. The enacted

appropriation, like the House and Senate bills, does not address this request.

National Institute of Food and Agriculture

For FY2015, the enacted appropriation provides $1.290 billion for NIFA, $12 million more than

the FY2014 appropriation (+1%). Much of the increase will pay for a new category of building

rental payments that are being transferred to agencies rather than being paid from a central

departmental account. Within the NIFA total:

Research and Education Activities receive $787 million for FY2015, $14

million more than in FY2014 (+2%) and nearly the more generous amount

recommended by the Senate bill.

 USDA’s flagship competitive grants program—the Agriculture and Food

Research Initiative (AFRI), with about one-fourth of NIFA’s total budget—

receives a $9 million increase to $325 million. This concurs with the

Administration’s request and was recommended by both the House and

Senate bills.

 Funding remains constant for Hatch Act activities that fund 1862 land-grant

universities ($244 million), as well as Evans-Allen activities that fund 1890

land-grant universities ($52 million).

 The Administration had requested $75 million for “Innovation Institutes,”

that would focus on emerging agricultural research challenges. Startup

funding of $25 million per year for each of three institutes, for five years,

would leverage public-private partnerships. Proposed research areas were

pollinator health, bio-manufacturing and bioproducts development, and

antimicrobial resistance. The enacted appropriation does not fund this

initiative, nor did either the House or Senate bill recommend it (although the

research topics are addressed in other program funding).

Extension Activities receive $472 million for FY2015, 0.5% more than FY2014,

and in between the amounts recommended by the House and Senate bills.

26

USDA-ARS, The USDA Agricultural Research Service Capital Investment Strategy, April 2012, at http://www.ars.

usda.gov/sp2UserFiles/Subsite/ARSLegisAffrs/USDA_ARS_Capital_Investment_Strategy_FINAL_eeo.pdf.

Congressional Research Service

22

Agriculture and Related Agencies: FY2015 Appropriations

Integrated Activities—which had declined by about two-thirds from FY2010

through FY2013 (from $60 million to $20 million) but was raised to $35 million

in FY2014—are reduced again in FY2015. The enacted amount is $30.9 million,

which is $4.4 million less than FY2014 (-12%). This is more than the

Administration requested, but less than either of the House or Senate bills.

Finally, in addition to the base request for NIFA, the Administration proposed an additional $80

million through the OGS Initiative. Most of this extra amount would provide increased support

for additional AFRI competitive research grants ($60 million). The rest would establish a new

competitive research grant program to complement formula-funded NIFA grants. The enacted

appropriation, like the House and Senate bills, does not address this request.

National Agricultural Statistics Service

For FY2015, the enacted appropriation provides $172 million for NASS, an increase of $11

million over FY2014 (+7%). Most of this increase ($9 million) will pay for the additional cost of

rental payments that agencies are paying instead of through a central account in the department.

The Administration’s requested level ($6.6 million more than the enacted amount) was to restore

selected surveys that were reduced or eliminated in recent years for budgetary reasons (including

a variety of fruit and vegetable surveys and a chemical use survey).

Economic Research Service

For FY2015, the enacted appropriation provides $85 million for ERS, an increase of $7 million

over FY2014 (+9%). This amount is effectively equal to the FY2014 amount after adjusting for

the addition of rental payments.

Marketing and Regulatory Programs

Three agencies carry out USDA’s marketing and regulatory programs mission area: the Animal

and Plant Health Inspection Service (APHIS), the Agricultural Marketing Service (AMS), and the

Grain Inspection, Packers, and Stockyards Administration (GIPSA).

Animal and Plant Health Inspection Service27

The Animal and Plant Health Inspection Service (APHIS) is responsible for protecting U.S.

agriculture from domestic and foreign pests and diseases, responding to domestic animal and

plant health problems, and facilitating agricultural trade through science-based standards. APHIS

has key responsibilities for dealing with prominent concerns such as avian influenza (AI), bovine

spongiform encephalopathy (BSE or “mad cow disease”), bovine tuberculosis, a growing number

of invasive plant pests—such as the Emerald Ash Borer, the Asian Long-horned Beetle, and the

Glassy-winged Sharpshooter—and a national animal identification (ID) program for animal

disease tracking and control. APHIS also is charged with administering the Animal Welfare Act

(AWA), which seeks to protect pets and other animals used for research and entertainment.

The enacted FY2015 appropriation provides $874.5 million for APHIS, of which $871.3 million

is for salaries and expenses and $3.2 million is for building and facilities. The amount for salaries

and expenses is well above the Administration’s request of $834.3 million and the FY2014

27

This section was written by (name redacted) (7-....;

Congressional Research Service

[redacted]@crs.loc.gov

).

23

Agriculture and Related Agencies: FY2015 Appropriations

appropriation of $821.7 million (+$50 million; +6%). In part, the higher amounts will pay for

rental obligations that previously were funded through a central departmental account. The

enacted law also authorizes APHIS to collect fees to cover the total costs of providing technical

assistance, goods, or services in certain cases.

Within APHIS, the following enacted appropriations are provided across each of the programlevel budget categories: 28 plant health ($305.4 million); animal health ($287.6 million); wildlife

services ($108.9 million); regulatory services ($35.1 million); safe trade and international

technical assistance ($36.2 million); animal welfare ($28.7 million); emergency management

($17.4 million); and administrative funds ($54.9 million, which includes payments to GSA and

DHA mentioned previously).

As in previous years, the enacted law highlights that appropriators expect USDA to continue to

use the authority provided in the appropriation and in statute to transfer funds from other

appropriations or funds available to USDA for activities related to the arrest and eradication of

animal and plant pests and diseases.29 The Office of Management and Budget (OMB) and

congressional appropriators have sparred for years over whether APHIS should—as appropriators

have preferred—reach as needed into USDA’s Commodity Credit Corporation (CCC) account for

mandatory funds to deal with emerging plant pests and other plant and animal health problems on

an emergency basis, or be provided the funds primarily through the annual USDA appropriation,

as OMB has argued. In particular, both appropriations subcommittees highlight the need for

USDA to use its authority to transfer CCC funds to address emerging plant pests. Both bills

recommended that funds be made available until expended for a “contingency fund” to control

outbreaks of insects, plant diseases, animal diseases, and for control of pest animals and birds to

the extent necessary to meet emergency conditions. The enacted appropriation provides $470,000

for this contingency fund.

The enacted appropriation also provides funding to address specialty crop pests ($156.0 million),

tree and wood pests ($54.0 million), avian health ($52.3 million), Animal Health Technical

Services ($35.4 million), and field crop and rangeland ecosystems services pests ($8.8 million).

In addition, the enacted law provides funding to address cotton pests ($11.5 million) and screw

worm ($5.0 million); to support the scrapie program ($1.5 million) and National Veterinary

Stockpile ($4.0 million with an increase to assist in critical veterinary countermeasures); and to

support wildlife damage management ($1.5), wildlife services methods development ($1.0

million), and activities under the Horse Protection Act ($0.7 million). The enacted law further

specifies that no funds be used to formulate or administer a brucellosis eradication program.

The committee report further specifies funding for national rabies management, surveillance, and

eradication efforts ($26.0 million with an increase for related priority activities); the National

Animal Health Laboratory Network ($6.7 million); Citrus Health Response Program ($4.5

million) Overseas and Technical and Trade Operations (an increase of $2.0 million); and Swine

Health program (an increase of $2.0 million). It also specifies funding for cervid health activities

(“no less than” $3.0 million) and encourages the agency to improve its enforcement activities

under the Horse Protection Act. The committee report also expresses concern about APHIS’

28

Sub-account levels follow the APHIS budget structure that was implemented in the FY2012 appropriations process

that reorganized and consolidated APHIS programs across 29 budgetary line items. For more information, see CRS

Report R41964, Agriculture and Related Agencies: FY2012 Appropriations. See also USDA, “2012 Budget and

Explanatory Notes, APHIS,” pp. 18-47 through 18-50, http://www.obpa.usda.gov/18aphis2012notes.pdf.

29

This provision is in accordance with the Animal Health Protection Act (7 U.S.C. §§ 8310 and 8316, §§10411 and

10417) and the Plant Protection Act (7 U.S.C. §§ 7751 and 7772, §§431 and 442).

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Agriculture and Related Agencies: FY2015 Appropriations

regulatory backlog to review biotechnology product petitions and provides an increase in funding

($0.74 million) to address these backlogs.

Agricultural Marketing Service and “Section 32”

The Agricultural Marketing Service (AMS) administers numerous programs that facilitate the

marketing of U.S. agricultural products in domestic and international markets. AMS each year

receives appropriations in two different ways. A discretionary appropriation of about $80 million

funds a variety of marketing activities. A larger mandatory spending amount of about $1.2 billion

(funds for strengthening markets, income, and supply; or “Section 32”) finances various types of

ad-hoc decisions that support agricultural commodities (such as meat, poultry, fruits, and

vegetables) that are not supported through the direct subsidy programs for the primary field crops

(corn, soybeans, wheat, rice, and peanuts) and dairy. User fees also support some AMS activities.

Marketing Activities30

The discretionary appropriation funds four main areas: market news service, shell egg

surveillance and standardization, market protection and promotion, and transportation and

marketing. The market news program collects, analyzes, and disseminates market information on

a wide number of commodities. The shell egg program ensures egg quality and reviews and

maintains egg standards. As part of market protection and promotion programs, AMS administers

the pesticide data program, the National Organic Program (NOP), the seed program, country-oforigin labeling (COOL), and 22 commodity research and promotion (checkoff) programs. AMS

monitors the agriculture transportation system and conducts market analysis that supports the

transport of agriculture products domestically and internationally.

In addition, user fees and reimbursements finance other AMS-administered activities, such as

product quality and process verification programs, commodity grading, and Perishable

Agricultural Commodities Act licensing. AMS also administers several 2014 farm bill programs

that have mandatory funding and are designed to support specialty crops, farmers markets, local

foods, and organic certification.31

For FY2015, the Consolidated and Further Continuing Appropriations Act, 2015 (P.L. 113-235,

Division A) provides $81.2 million for marketing activities. The AMS discretionary appropriation

is $1.3 million more than (+1.6%) that enacted for FY2014 but is $1.8 million less than the

Administration’s request. Also, the act provides $1.2 million for AMS payments to states and

possessions for cooperative marketing agreements and grants, for a total discretionary

appropriation of $82.4 million.

The joint explanatory statement directs USDA, in consultation with the U.S. Trade

Representative, to submit a report to the House and Senate Appropriations Committees with

recommendations on how to change the country-of-origin labeling (COOL) law. The

recommendations are to make the law “not conflict with or in any manner inconsistent with” U.S.

World Trade Organization (WTO) obligations. The report is due to the committees within 15 days

30

This section was written by (name redacted) (7

-...., [redacted]@crs.loc.gov

).

Separate from the appropriations process, the 2014 farm bill (P.L. 113-79) authorizes mandatory funding for four

AMS-administered programs as follows: $72.5 million (annually, FY2014-2017) and $85 million (annually, FY2018

and thereafter) for specialty crop block grants, $15 million (annually, FY2014-2018) for farmers’ market promotion,

$15 million (annually, FY2014-2018) for local food promotion, and a set-aside (estimated at $12.5 million in FY2015)

for AMS share of costs to support organic certification. For FY2015, AMS expects to administer an estimated $115

million of these mandatory farm bill initiatives.

31

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Agriculture and Related Agencies: FY2015 Appropriations

of final resolution (i.e., the WTO issuing an appellate ruling on the COOL compliance report) or

May 1, 2015, whichever comes first. The WTO is in the process of hearing appeals of the COOL

compliance report that was issued in October 2014. The Canada and Mexico challenge of U.S.

COOL regulations has been progressing through the WTO dispute settlement process since 2009

and is expected to reach a conclusion in 2015. If the current appellate hearing again determines

that COOL is inconsistent with U.S. obligations, U.S. exports to Canada and Mexico could face

about $2 billion in retaliatory measures in the form of increased tariffs.32

The explanatory statement also directs USDA “not to implement a second duplicative beef

checkoff program.” In November 2014, USDA issued a Federal Register notice requesting public

comment on creating a second beef checkoff under that authority of the 1996 Commodity

Promotion, Research, and Information Act.33 USDA moved to implement a second checkoff after

the beef industry stakeholders were unable to agree on reforms for the current checkoff, which

was established in 1985.34

Section 32 (Funds for Strengthening Markets, Income, and Supply) 35

AMS’s mandatory appropriation reflects a transfer from the so-called Section 32, which is a

program created in 1935 to assist agricultural producers of non-price-supported commodities. The

Section 32 account is funded by a permanent appropriation of 30% of the previous calendar

year’s customs receipts ($9.7 billion in FY2015), less certain mandatory transfers to child

nutrition and other programs ($8.5 billion in FY2015).36

Section 32 monies available for obligation by AMS have been used at the Secretary’s discretion

to purchase agricultural commodities like meat, poultry, fruits, vegetables, and fish, which are not

typically covered by mandatory farm programs. These commodities are diverted to school lunch

and other domestic food and nutrition programs. Section 32 has also been used to fund surplus

removal and farm economic and disaster relief activities.

The 2008 farm bill (§14222) capped the annual amount of Section 32 funds available for

obligation by AMS in FY2015 at $1.284 billion. Also, to increase the amount of fruits and

vegetables purchased under Section 32, Congress limited USDA’s discretion in two ways: (1)

§4304 of the 2008 farm bill established a fresh fruit and vegetable school snack program funded

by carving out Section 32 funds (set at $40 million in 2008, rising to $150 million in 2011, and

adjusted for inflation for each year thereafter), and (2) §4404 of the 2008 farm bill required

additional purchases of fruits, vegetables, and nuts (set at $190 million in FY2008, rising to $206

million in FY2012, and remaining at that level each year thereafter). Section 4214 of the 2014

farm bill expanded the school snack program to include frozen, canned, and dried fruits and

vegetables on a pilot basis for the 2014-15 school year.

The enacted FY2015 appropriation provides $1.284 billion of Section 32 funds for AMS, which

compares with $1.107 billion enacted in FY2014. The FY2015 amount is reduced by $121

million (rescission) and $82 million (sequestration), and is considered mandatory spending.

32

For information on COOL and background on the dispute brought by Canada and Mexico challenging the

implementation of this law, see CRS Report RS22955, Country-of-Origin Labeling for Foods and the WTO Trade

Dispute on Meat Labeling.

33

P.L. 104-127; 7 U.S.C. 7401, 7411-7425.

34

P.L. 99-198; 7 U.S.C. 2901-2918.

35

This section was written by (name redacted) (7 -...., [redacted ]@crs.loc.gov

).

36

For more details about Section 32 and the farm bill changes, see CRS Report RL34081, Farm and Food Support

Under USDA’s Section 32 Program.

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The enacted appropriation also includes a provision (§717) that has appeared since FY2012 that

effectively prohibits the use of Section 32 for emergency disaster payments to farmers:

[N]one of the funds appropriated or otherwise made available by this or any other Act

shall be used to pay the salaries or expenses of any employee of the Department of

Agriculture or officer of the Commodity Credit Corporation to carry out clause 3 of

Section 32 of the Agricultural Adjustment Act of 1935 (P.L. 74-320, 7 U.S.C. 612c, as

amended), or for any surplus removal activities or price support activities under section 5

of the Commodity Credit Corporation Charter Act.37

Grain Inspection, Packers and Stockyards Administration38

USDA’s Grain Inspection, Packers and Stockyards Administration (GIPSA) oversees the

marketing of U.S. grain, oilseeds, livestock, poultry, meat, and other commodities. The Federal

Grain Inspection Service establishes standards for the inspection, weighing, and grading of grain,

rice, and other commodities. The Packers and Stockyards Program monitors livestock and poultry

markets to ensure fair competition and guard against deceptive and fraudulent trade practices.

For FY2015, enacted appropriation provides $43.0 million for GIPSA salaries and expenses, $2.8

million (+6.9%) more than enacted for FY2014. The FY2015 appropriation is about $1 million

less than the Administration’s request. The appropriations act authorizes GIPSA to collect up to

$50 million in user fees for inspection and weighing services.

Section 731 (P.L. 113-235, Division A) restricts USDA from finalizing or implementing parts of

GIPSA’s proposed rule on livestock and poultry marketing practices (75 Federal Register 35338,

June 22, 2010; amends 9 C.F.R. Part 201) that were required in the 2008 farm bill (P.L. 110246).39 The proposed rule addresses how competitive injury (or harm to competition) is treated

under the Packers and Stockyard Act (P&S Act; 7 U.S.C. §181 et seq.); sets criteria for

determining unfair, unjustly discriminatory and deceptive practices, and undue or unreasonable

preference or advantages; and includes arbitration provisions that give contract growers

opportunities to participate in meaningful arbitration. The proposed rule was contentious, with

proponents arguing that it would bring fairness to marketing transactions, while opponents argued

it would disrupt markets and lead to increased litigation. USDA finalized parts of the proposed

rule in December 2011, but much of the rule was not finalized because implementing prohibitions

have been enacted in appropriations acts since FY2012.

Section 731 allows USDA to publish a final or interim final GIPSA rule only if the annual cost to

the economy is less than $100 million. In addition, it prohibits USDA from using any funds to

implement specific provisions in the proposed rule—the definitions of the tournament system

§201.2(l); competitive injury §201.2(t); and the likelihood of injury §201.2(u). Other prohibited

parts include the applicability of the regulations on violations of the P&S Act §201.3(c); unfair,

unjust discriminatory and deceptive practices §201.210; undue or unreasonable preferences

§201.211; livestock and poultry contracts §201.213; and the tournament system §201.214. Also,

the section rescinds funding for the enforcement of three provisions that USDA finalized in

37

Clause 3 of Section 32 provides that funds shall be used to re-establish farmers’ purchasing power by making

payments in connections with the normal production of any agricultural commodity for domestic consumption (7.U.S.C

612c). Section 5 of the Commodity Credit Corporation Charter Act authorizes the CCC to support the prices of

agricultural commodities through loans, purchases, payments, and other operations (15 U.S.C. 714c).

38

This section was written by (name redacted) (7

-...., [redacted]@crs.loc.gov

).

39

For more, see CRS Report R41673, USDA’s “GIPSA Rule” on Livestock and Poultry Marketing Practices.

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Agriculture and Related Agencies: FY2015 Appropriations

2011—the definition of suspension of delivery of birds §201.2(o), the applicability to live poultry

§201.3(a), and the 90-day notification for suspension of delivery of birds §210.215(a).

Food Safety40

Numerous federal, state, and local agencies share responsibilities for regulating the safety of the

U.S. food supply.41 Federal responsibility for food safety rests primarily with the Food and Drug

Administration (FDA) and the USDA. FDA, an agency of the Department of Health and Human

Services, is responsible for ensuring the safety of the majority of all domestic and imported food

products (except for meat and poultry products).42 USDA’s Food Safety and Inspection Service

(FSIS) regulates most meat, poultry, and processed egg products.43 The agriculture appropriations

subcommittees oversee both the FDA and FSIS budgets.

Federal funding and staffing levels between FDA and FSIS are disproportionate to their

respective responsibilities for addressing food safety activities. FSIS is responsible for roughly

10-20% of the U.S. food supply, and it receives about 53% of the two agencies’ combined food

safety appropriation (56% if including user fees). Correspondingly, FDA is responsible for 8090% of the U.S. food supply, and it has received about 47% of the combined appropriation for

federal food safety activities (44% if including user fees; Table 5). Staffing levels also are

considerably different between the two agencies: FSIS staff number around 9,000 FTEs, while

FDA’s food-related staff number about 3,800 FTEs.

In recent years, however, the balance of overall funding for food safety between FDA and USDA

has shifted. Appropriators have increased funding for FDA food activities, more than doubling it

from $435.5 million in FY2005 to $903.4 million in FY2015 (Table 5). The FDA Food Safety

Modernization Act (FSMA, P.L. 111-353) also provided limited additional funding through

industry-paid user fees. Funding for FSIS has remained mostly unchanged or slightly lower.

FSMA—comprehensive food safety legislation enacted in the 111th Congress—authorized

additional appropriations and staff for FDA’s food safety activities.44 FSMA was the largest

expansion of FDA’s food safety authorities since the 1930s. Among its many provisions, FSMA

authorized increasing frequency of inspections at food facilities, tightening record-keeping

requirements, extending oversight to certain farms, and also mandated product recalls. It requires

food processing, manufacturing, shipping, and other facilities to conduct a food safety plan of the

most likely safety hazards, and design and implement risk-based controls. It also mandates

improvements to foodborne illness surveillance systems and increased scrutiny of food imports.

FSMA did not directly address meat and poultry products under USDA’s jurisdiction.

Although Congress authorized appropriations when it enacted FSMA, it did not provide the

funding needed for FDA to perform these activities. After FSMA was signed into law in January

2011, concerns were voiced about whether there would be enough money to overhaul the U.S.

40

This section was written by (name redacted) (7-....; [redacted]@ crs.loc.gov

), with contributions from Joel Greene

(FSIS) and (name redacted) (FDA Foods Program).

41

For more information, see CRS Report RS22600, The Federal Food Safety System: A Primer.

42

FDA’s food safety authorities rest primarily with the Federal Food, Drug, and Cosmetic Act (FFDCA, 21 U.S.C.

§§301, et seq.).

43

Laws governing FSIS include the Federal Meat Inspection Act (FMIA, 21 U.S.C. §§601, et seq.), the Poultry

Products Inspection Act (PPIA, 21 U.S.C. §§451, et seq.), and the Egg Products Inspection Act (EPIA, 21 U.S.C.

§§1031, et seq.).

44

P.L. 111-353 amended the Federal Food, Drug, and Cosmetic Act (FFDCA).

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Agriculture and Related Agencies: FY2015 Appropriations

food safety system and also whether expanded investment in this area was appropriate in the

current budgetary climate.45 Prior to enactment, the Congressional Budget Office (CBO)

estimated that implementing FSMA could increase net federal spending subject to appropriation

by about $1.4 billion over a five-year period (FY2011-FY2015).46 This cost estimate covers

activities at FDA and other federal agencies, and does not include offsetting revenue from the

collection of new user fees authorized under FSMA.47 FSMA did not impose any new facility

registration fees. Prior to enactment, CBO estimated that about $240 million in new fees would

be collected over the five-year period (FY2011-FY2015).48 Taking into account these new fees,

CBO estimated that covering the five-year cost of new requirements within FDA, including more

frequent inspections, would require additional outlays of $1.1 billion. FSMA also authorized an

increase in FDA staff, which was expected to reach 5,000 by FY2014.49 Instead, FDA reports

actual staffing levels at 3,800 FTEs in FY2014 (Table 5).

FDA continues to implement regulations under FSMA. Although Congress has increased the FDA

Foods Program budget in the past few years, agency officials claim that an additional $400

million-450 million per year above the FY2012 base is needed to fully implement FSMA.50

Table 5. Food Safety Appropriations

(FTEs as indicated, and budget and appropriation figures in millions of dollars)

Agency/Year

FTEsa

Appropriationb

Program Level,

Including Feesc

HHS Food and Drug Administration (FDA), “Foods” Subtotal

FY2009 Actual

2,995

712.8

712.8

FY2010 Actual

3,387

783.2

783.2

FY2011 Actual

3,605

836.2

836.2

FY2012 Actual

3,546

866.1

882.7

FY2013 Operating Plan (post-sequestration)

3,626

796.6d

813.2

FY2014, Appropriation (P.L. 113-76)

3,805

882.8

900.3

FY2015: Administration Request

4,236

903.4

1,124.3e

Enacted (P.L. 113-235)

NA

903.4

913.8

USDA Food Safety and Inspection Service (FSIS)

45

See “Food Safety Bill Advocates Expect Funding Fight,” Food Safety News, January 4, 2011.

CBO, Cost Estimate, “S. 510, Food Safety Modernization Act, as reported by the Senate Committee on Health,

Education, Labor, and Pensions on December 18, 2009, incorporating a manager’s amendment released on August 12,

2010,” August 12, 2010, http://www.cbo.gov/ftpdocs/117xx/doc11794/s510.pdf; reflects the Senate amendment to S.

510. Estimated total costs would be covered by a combination of user fees and direct appropriations (budget authority).

47

FSMA authorized additional appropriations and staff for FDA’s future food safety activities and authorized new user

fees. New fees authorized under FSMA include an annual fee for participants in the voluntary qualified importer

program (VQIP) and three fees for certain periodic activities involving reinspection, recall, and export certification.

FSMA, P.L. 111-353, §§107 and 401. Details of these annual and periodic fees are presented in CRS Report R40443,

The FDA Food Safety Modernization Act (P.L. 111-353).

48

As estimated by CBO, these fees would be phased in as follows: $15 million (FY2011), $27 million (FY2012); $47

million (FY2013); $63 million (FY2014); and $89 million (FY2015).

49

FSMA, P.L. 111-353, §401. By fiscal year, staff level increases were authorized to a total of not fewer than: 4,000

staff members (FY2011); 4,200 staff (FY2012); 4,600 staff (FY2013); and 5,000 staff (FY2014).

50

FDA, Building Domestic Capacity to Implement the FDA Food Safety Modernization Act (FSMA), May 2013.

46

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Agriculture and Related Agencies: FY2015 Appropriations

Program Level,

Including Feesc

Agency/Year

FTEsa

Appropriationb

FY2009 Actual

9,343

971.6

1,105.7

FY2010 Actual

9,401

1,018.5

1,172.4

FY2011 Actual

9,465

1,008.5

1,187.2

FY2012 Actual

9,351

1,004.4

1,169.1

FY2013 Operating Plan (post-sequestration)

9,158

977.3f

1,163.7

FY2014, Appropriation (P.L. 113-76)

9,360

1,010.7

1,183.2

FY2015: Administration Request

9,098

1,001.4

1,174.9

Enacted (P.L. 113-235)

NA

1,016.4

1,176.6

Sources: CRS, from P.L. 113-235 (Division A), FDA FY2013 Sequestration Operating Plan, FDA FY2014

Operating Plan, and annual agency budget justifications for FDA (http://www.fda.gov/AboutFDA/

ReportsManualsForms/Reports/BudgetReports/default.htm) and FSIS (http://www.obpa.usda.gov/

explan_notes.html).

Notes:

a. Staffing in full time equivalents (FTEs).

b. Does not include existing or proposed user fees or other ‘non-federal’ payments.

c. Includes user fees. For FDA, reflects actual or planned fees through FY2014, and for FY2015, enacted, CR,

and requested fee amounts. For FSIS, includes existing fees and trust fund for overtime, holiday, and

voluntary inspection.

d. FDA’s “FY2013 Sequestration Operating Plan.” and “FY2014 Operating Plan.”

e. The Administration’s requested Foods program level total includes $10.4 million in authorized fees relating

to food reinspection, food and feed recall, and the voluntary qualified importer program; and other

proposed fees covering food facility registration and inspection, food import, international courier, and food

contact notification fees. The “Appropriation” amount excludes fees (both authorized and proposed) from

the requested “Program Level” amount.

f.

Reported by USDA for FSIS in its “Fiscal Year 2013 Operating Plan” and reflects “2013 Enacted w/

Sequester and Rescissions.”

Food and Drug Administration (FDA)

FDA’s foods program accounts for about one-third ($903.4 million in FY2015) of the agency’s

total appropriation (Table 5).51 These congressional appropriations are expected to be augmented

by existing (currently authorized) user fees. Total program level, including appropriations and

fees, is expected to be $913.8 million. These fees, as authorized under FSMA, include food and

feed recall fees, food reinspection fees, and voluntary qualified importer program fees.

Total program level funding (enacted appropriations plus user fees) is $210.5 million below the

Administration’s request, which proposed several new user fees not authorized by congressional

appropriators (Table 5). In addition to FSMA-authorized user fees, the Administration’s budget

also requested approval of other new user fees. These proposed fees included a food facility

registration and inspection, food import, international courier, and food contact notification fees.

The enacted appropriation does not include the Administration’s proposed fees. The House

committee report (H.Rept. 113-468) broadly addresses FDA user fees, requesting a report on user

fees collected for each user fee program.

51

The entirety of FDA appropriations is discussed later in “Food and Drug Administration (FDA).”

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Agriculture and Related Agencies: FY2015 Appropriations

Both the House and Senate appropriators make a number of recommendations regarding FSMA

and FDA’s ongoing efforts to develop regulations and guidance pertaining to the various

provisions of the law. Both address FSMA’s re-proposal of certain key regulations regarding food

safety preventive controls for both human and animal food, and also produce standards.52 The

House committee report expresses concern that FDA is taking an “overly prescriptive regulatory

approach” with many of the regulations including the monitoring of preventive controls and

verification testing activities, and urges FDA to “ensure all FSMA regulations are risk-based,

flexible, and science-based, and embrace the well-established and recognized standards for food

safety already employed through much of the industry” (H.Rept. 113-468). The Senate committee

report further expresses concern that FDA “only intends to address discrete portions of these

proposed rules” and reminds the agency that the activities covered by FSMA’s rules are “complex

and interrelated” and any regulations need to be “science-based, risk-based, and flexible, taking

into account the different risks posed by different commodities” (S.Rept. 113-164). The example

provided includes the need to consider the “secondary market for spent grains and byproduct

from human food manufacturing and agricultural practices” that is often used for animal feed.

The House committee report also directs FDA to ensure that all FDA centers (including the Foods

Program) maintain a “firm commitment to science-based, data-driven decision making,

facilitating the free flow of scientific and technical information, and requiring a fair and

transparent approach to resolving scientific disputes.”

For FY2015, the joint explanatory statement states that $27.5 million is available for food safety

activities (p. H9314), which is more than FY2014 funding levels of $25 million. Food safety

activities include “development of guidance, providing technical assistance to industry and

technical support to FDA inspectors, as well as training for FDA and state inspectors” (H.Rept.

113-468). The House report encourages FDA to consider “funding research that would provide

portable and technologically advanced testing platforms needed to effectively monitor and protect

against intentional adulteration of the food supply,” as part of the National Agriculture and Food

Defense Strategy Plan, as required by FSMA. The House also urges FDA to consider exempting

tree nut producers from the produce standards rule, if the tree nuts meet the criteria for ‘‘rarely

consumed raw’’ and the buyer of the tree nuts takes the necessary steps to reduce pathogens as

described in the proposed FSMA rule.

Both the House and Senate committees encourage FDA to form partnerships under FSMA. House

appropriators encourage FDA to “work in partnership with existing government food safety

programs through Memorandum of Understandings to verify compliance with FSMA” and to

“eliminate duplication of activities under the law” (H.Rept. 113-468). Senate appropriators

emphasize the need for FDA to work with USDA to “perform outreach and technical assistance to

farmers and small businesses” and recommend $2.5 million in funding for USDA’s National

Institute of Food and Agriculture (NIFA) to conduct extension activities related to FSMA (S.Rept.

113-164). Appropriators also emphasize the importance of ensuring adequate public review and

comment on all proposed requirements and supporting analyses. The House report expresses

concern that FDA is not providing stakeholders with “adequate input or economic consideration

on an expanding list of highly technical regulatory proposals” and wants the agency to better

manage its priorities, given certain gaps in the regulatory process involving some FSMA rules.

Both the House and Senate committee reports contain provisions related to seafood safety and

direct FDA to publish updated advice to pregnant women on seafood consumption.53 The Senate

52

For more information on FSMA regulations, see CRS Report R42885, Food Safety Issues for the 114th Congress.

FDA recently published draft updated advice on fish consumption. See FDA, “FDA and EPA issue draft updated

advice for fish consumption,” FDA News Release, June 10, 2014.

53

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Agriculture and Related Agencies: FY2015 Appropriations

report further encourages FDA to “work with States and the Department of Commerce to more

aggressively combat fraud in parts of the seafood industry.”54 FDA is also encouraged to work

with the U.S. Trade Representative (USTR) to resolve a dispute between the United States and

the European Union over sanitation protocols on U.S. shellfish, and to report to Congress on this

issue. The Senate bill also proposed that FDA spend “not less than $150,000” to “implement a

labeling requirement for genetically engineered salmon.”

Both House and Senate appropriators broadly encourage FDA to expedite the import clearance

process, and report statistics to Congress that measure the effectiveness of targeting resources and

to clear trusted/compliant shipments. The House report requires FDA to report to Congress on its

investigation involving imported pet food, including providing a summary of recent activities, as

well as an annual report on the status of the investigation.

Finally, both House and Senate appropriators urge FDA to address the use of medically important

antibiotics in food animals. The House report further encourages FDA to maintain appropriate

funding levels for both FSMA-related activities and the base work performed by its food and

veterinary medicine programs and through research with their Centers of Excellence.

Outside of agricultural appropriations, $47.993 million of funding is provided for foodborne

disease surveillance by the Centers for Disease Control and Prevention (CDC) National Center

for Emerging and Zoonotic Infectious Diseases. This reflects an $8 million increase for

“advanced DNA technology to improve and modernize our diagnostic capabilities; and enhance

surveillance, detection, and prevention efforts at the state and local level.”55

Food Safety and Inspection Service (FSIS)

For USDA’s FSIS, the enacted appropriation provides $1.016 billion in federal appropriations for

FY2015 (Table 5). This is $5.8 million more than enacted for FY2014 and $15.1 million more

than the Administration requested. Appropriations are augmented by existing (currently

authorized) user fees that FSIS estimates to be $160.2 million.56 FSIS appropriations are divided

between various sub-accounts for federal ($900.6 million), state ($60.9 million), and international

inspection ($16.6 million); Codex Alimentarius ($3.8 million); and the Public Health Data

Communications Infrastructure System ($34.6 million, which is available until expended). Also,

FSIS may collect fees of $1 million for the cost of national laboratory accreditation programs.57

The Administration proposed a user fee of $4 million to cover additional inspection costs

associated with performance issues at inspected facilities, but the enacted appropriations did not

include the user fee proposal.

In addition, the enacted appropriation requires that FSIS have no fewer than 148 FTEs dedicated

to the inspection and enforcement of the Humane Methods of Slaughter Act (HMSA) during

FY2015. FSIS is also required to implement catfish inspection as required under the 2008 and

2014 farm bills.58 USDA has not begun to inspect catfish, because the agency has not yet issued a

final rule.

54

For more information on food fraud, see CRS Report R43358, Food Fraud and “Economically Motivated

Adulteration” of Food and Food Ingredients.

55

CDC funding is provided in P.L. 113-235, Division G, Title II.

56

FSIS FY2015 congressional budget justification (http://www.obpa.usda.gov/23fsis2015notes.pdf).

57

Authorized by §1327 of the Food, Agriculture, Conservation and Trade Act of 1990 (7 U.S.C. 138f).

58

P.L. 110-246, §11016, clarified in P.L. 113-79, §12106.

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Agriculture and Related Agencies: FY2015 Appropriations

Section 750 of the enacted appropriation prohibits FSIS from paying salaries and expenses to

inspect horses for slaughter or to provide voluntary, fee-for-service inspection of horses. Previous

FY2006 and FY2007 enacted appropriations prohibited FSIS from paying salaries and expenses

for horse slaughter inspections. In addition, from FY2008 to FY2011 and FY2014, enacted

appropriations also banned voluntary, fee-based horse slaughter inspections. Horse slaughter

inspection bans were not in force during FY2012 and FY2013, but no horse slaughter facilities

opened before the ban was reinstated in FY2014.

Lastly, the joint explanatory statement expresses concern about countering economic fraud and

improving the safety of the U.S. seafood supply. The appropriating committees encourage USDA

and FDA to support developing technologies that will provide rapid, portable, and easy-to-use

screening of seafood at ports and at wholesale and retail locations.

Farm Service Agency59

USDA’s Farm Service Agency (FSA) is probably best known for administering the farm

commodity subsidy programs and the disaster assistance programs. It makes these payments to

farmers through a network of county offices. In addition, FSA also administers USDA’s direct and

guaranteed farm loan programs, certain mandatory conservation programs (in cooperation with

the Natural Resources Conservation Service), and supports certain international food assistance

and export credit programs administered by the Foreign Agricultural Service and the U.S. Agency

for International Development.

FSA Salaries and Expenses

For FY2015, the enacted appropriation provides $1.507 billion to FSA for salaries and expenses

(including $1.200 billion for regular FSA salaries and expenses, plus the transfer within FSA of

$307 million for farm loan program salaries and expenses; Table 6).60 This is $22.1 million more

than the amount for FY2014, and the increase approximately equals the amount needed for the

change in building rental payments. Thus, after adjusting for the new rental expenses, the FY2015

appropriation is essentially level with FY2014.

Regarding information technology, the enacted appropriation and the joint explanatory statement

impose strong, new requirements about FSA’s implementation of information technology (IT)

plans. These statements go further than the House and Senate report language that criticized FSA

for delays and costs in implementing MIDAS (Modernize and Innovate the Delivery of

Agricultural Systems). MIDAS was flagged for concern by the IT Dashboard in December 2012.

It has struggled with the scope and schedule of work and has yet to achieve the expected results.61

The Government Accountability Office (GAO) also observed management and schedule

problems in 2011.62

The statutory language requires that FSA—before it can spend 50% of the $132 million available

for IT—submit to Congress and GAO a detailed information technology plan that meets several

specific criteria, and submit a subsequent assessment report at the end of FY2015. The joint

explanatory statement further explains that the controls are “in response to USDA’s

59

This section was written by (name redacted)

-....,(7 [redacted]@crs.loc.gov

).

Excludes transfers to FSA from the Foreign Agricultural Service for administrative support (about $3 million).

61

IT Dashboard, “Farm Program Modernization (MIDAS) #097,” at https://itdashboard.gov/investment?buscid=225.

62

GAO, “USDA Systems Modernization: Management and Oversight Improvements Are Needed,” GAO-11-586, July

20, 2011, at http://www.gao.gov/assets/330/321447.pdf.

60

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Agriculture and Related Agencies: FY2015 Appropriations

mismanagement of funds and IT projects, including the use of funds intended for salaries and

expenses, ...unknown to and never endorsed by the Congress,” and that “the Department’s

mismanagement of the MIDAS program is of greatest concern.” The statement observes that

“after spending over $400 million [over 10 years], USDA ended the MIDAS project by redefining

the scope of the project and failing to deliver what USDA had promised.” The Department is

instructed to continue monthly briefings to Congress regarding IT projects in the agency.

Regarding proposed office closures and staff reductions, the FY2015 appropriations act and the

joint explanatory statement reject USDA’s proposal to close 250 FSA county offices and reduce

staffing. The act directly prohibits FSA from closing any county office. It also prohibits FSA from

permanently relocating any county employees if it results in two or fewer employees, unless the

Appropriations Committees approve. The joint explanatory statement cites insufficient

information, justification, and/or poor timing regarding implementing the 2014 farm bill. It

requires FSA to conduct a comprehensive workload assessment by August 1, 2015, and to

subsequently contract with the National Academy of Public Administration for an independent

third-party review. The third-party assessment is due September 1, 2016. The workload

evaluation was in the House-proposed 2014 farm bill, but was not part of the enacted farm bill.

This is the first time that FSA office closure has been mentioned in appropriations since FY2006FY2008, which limited FSA’s ability to close offices. The 2008 farm bill enacted a permanent

provision (7 USC 6932a; P.L. 110-246, §14212) that accomplished the same thing—setting

conditions and requiring congressional notification and local hearings before FSA can close or

consolidate a county office. The appropriation’s temporary moratorium surpasses this provision.

Congressional Research Service

34

Table 6. Farm Service Agency Appropriations

(budget authority in millions of dollars)

FY2012

FY2013

FY2014

FY2015

P.L. 11255

P.L. 113-6

post-sequ.

P.L. 11376

Admin.

Request

House

H.R. 4800

Senate

S. 2389

P.L. 113235

1,199.0

1,115.3

1,177.9

1,139.3

1,205.1

1,182.5

289.7

281.6

307.0

307.0

307.0

1,488.7

1,396.8

1,484.9

1,446.3

Farm loan program (loan subsidy)

108.2

90.5

90.0

Farm loan program admin. expenses

7.9

7.3

State mediation grants

3.8

Grassroots source water protection

Dairy indemnity program (M)

Change from FY2014 to

FY2015 (P.L. 113-235)

$

%

1,200.2

+22.3

+1.9%

307.0

307.0

+0.0

+0.0%

1,512.1

1,489.5

1,507.2

+22.3

+1.5%

81.2

78.7

81.2

78.7

-11.3

-12.5%

7.7

7.9

7.9

7.9

7.9

+0.2

+2.6%

4.1

3.8

3.4

3.4

3.4

3.4

-0.4

-10.0%

3.8

5.2

5.5

0.0

2.5

6.5

5.5

+0.0

+0.0%

0.1

0.1

0.3

0.5

0.5

0.5

0.5

+0.3

+100.0%

1,612.5

1,503.9

1,592.2

1,539.4

1,605.1

1,589.1

1,603.3

+11.0

+0.7%

Salaries and expenses

Farm Service Agency (S&E base)

FSA farm loan program S&E transfer

Subtotal, appropriated to FSA

Programs

Total: Appropriation to FSA

Source: CRS, compiled from tables in the joint explanatory statements or committee reports for P.L. 113-235, S. 2389, H.R. 4800, P.L. 113-76, and P.L. 112-55.

Amounts for FY2013 in P.L. 113-6 are at the post-sequestration level and are from the USDA FY2013 Operating Plan.

Notes: Does not include about $3 million of salaries and expenses that are appropriated to the Foreign Agricultural Service to administer P.L. 480 and export loans and

transferred to FSA.

CRS-35

Agriculture and Related Agencies: FY2015 Appropriations

FSA Farm Loan Programs

The USDA Farm Service Agency makes and guarantees loans to farmers, and is a lender of last

resort for family farmers unable to obtain credit from a commercial lender. USDA provides direct

farm loans (loans made directly from USDA to farmers), and it also guarantees the timely

repayment of principal and interest on qualified loans to farmers from commercial lenders. FSA

loans are used to finance farm real estate, operating expenses, and recovery from natural

disasters. Some loans are made at a low interest rate.63

An appropriation is made to FSA each year to cover the federal cost of making direct and

guaranteed loans, referred to as a loan subsidy. Loan subsidy is directly related to any interest rate

subsidy provided by the government, as well as a projection of anticipated loan losses from

farmer non-repayment of the loans. The amount of loans that can be made—the loan authority—

is several times larger than the subsidy level.

For FY2015, the enacted appropriation concurs with the Administration’s request—and the

House-reported bill—for loan subsidy and loan authority. It does not, however, provide any

funding for the Individual Development Account program that the Administration and Senate bill

would have funded.64

The FSA farm loan program receives $79 million of loan subsidy to support $6.402 billion of

direct and guaranteed loans in FY2015 (Table 7). Though the loan subsidy is about 12% smaller

than in FY2014, the loan authority is $875 million greater than FY2014 (+16%). Both of these

changes are largely explained by the direct farm ownership program, which becomes selfsupporting (through fees) and more than doubles in size. Reductions in the guaranteed operating

loan program make up most of the rest of the difference.

Following the global financial crisis that began in 2008, FSA farm loan authority generally has

risen, reflecting the borrowing needs of many farmers. Broad financial system pressures

dramatically increased the demand for FSA farm loans and guarantees when commercial bank

lending standards became stricter and loans sometimes were less available. In FY2009 and

FY2010, supplemental appropriations increased regular FSA loan authority by nearly $1 billion

each year in order to meet demand, up from pre-crisis levels of about $3.5 billion in 2008 to postsupplemental levels of $6.0 billion in FY2010. From FY2011 to FY2013, loan authority

decreased both due to federal budget pressures and somewhat lessened demand as the financial

system stabilized. Nonetheless, in some years, continued high farm loan demand for certain

programs has caused the loan authority to be exhausted.65 The FY2014 loan authority restored the

total closer to the supplemental levels of FY2009 and FY2010, and the FY2015 appropriation

increases total loan authority to a new high level, particularly in the direct farm ownership loan

program.

63

For more background, see CRS Report RS21977, Agricultural Credit: Institutions and Issues.

The Individual Development Account program was authorized in the 2008 farm bill but has never received

appropriations. It is not a loan program, but rather a savings program (7 U.S.C. 1983b). USDA grants to private entities

that would deliver the program would match farmer deposits at a rate up to 2:1. Withdrawals would be allowed for

various capital expenses.

65

Updates on unused FSA loan availability are available at http://www.fsa.usda.gov/FSA/webapp?area=home&

subject=fmlp&topic=fun.

64

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Table 7. Farm Service Agency: Farm Loan Program

(budget authority and loan authority, as specified, in millions of dollars)

FY2012

FY2013

FY2014

P.L. 11255

P.L. 113-6

post-sequ.

P.L. 11376

22.8

18.6

Direct

59.1

Guaranteed (unsubsidized)

FY2015

Change from FY2014 to

FY2015 (P.L. 113-235)

Admin.

Request

House

H.R. 4800

Senate S.

2389

P.L. 113235

$

%

4.4

—

—

—

—

-4.4

-100.0%

54.0

65.5

63.1

63.1

63.1

63.1

-2.4

-3.7%

26.1

16.5

18.3

14.8

14.8

14.8

14.8

-3.5

-19.3%

Emergency loans

—

1.2

1.7

0.9

0.9

0.9

0.9

-0.8

-49.6%

Indian highly fractionated land loans

0.2

0.2

0.1

—

—

—

—

-0.1

-100.0%

Individual Development Accounts

—

—

—

2.5

—

2.5

—

+0.0

na

Subtotal, loan subsidy

108.2

90.5

90.0

81.2

78.7

81.2

78.7

-11.3

-12.5%

FLP salaries and expenses

289.7

281.6

307.0

307.0

307.0

307.0

307.0

+0.0

+0.0%

FLP administrative expenses

7.9

7.3

7.7

7.9

7.9

7.9

7.9

+0.2

+2.6%

405.8

379.3

404.7

396.1

393.6

396.1

393.6

-11.1

-2.7%

1. Budget Authority (loan subsidy)

Farm ownership loans

Direct

Farm operating loans

Other direct loans

Total, FLP budget authority

CRS-37

FY2012

FY2013

FY2014

FY2015

P.L. 11255

P.L. 113-6

post-sequ.

P.L. 11376

Admin.

Request

House

H.R. 4800

Senate S.

2389

P.L. 113235

$

%

475.0

438.5

575.0

1,500.0

1,500.0

1,500.0

1,500.0

+925.0

+160.9%

1,500.0

1,500.0

2,000.0

2,000.0

2,000.0

2,000.0

2,000.0

+0.0

+0.0%

Direct

1,050.1

969.5

1,195.6

1,252.0

1,252.0

1,252.0

1,252.0

+56.4

+4.7%

Guaranteed (unsubsidized)

1,500.0

1,384.8

1,500.0

1,393.4

1,393.4

1,393.4

1,393.4

-106.6

-7.1%

150.0

150.0

150.0

150.0

150.0

150.0

150.0

+0.0

+0.0%

Emergency loans

—

21.6

34.7

34.7

34.7

34.7

34.7

+0.0

+0.0%

Indian tribe land acquisition loans

2.0

2.0

2.0

2.0

2.0

2.0

2.0

+0.0

+0.0%

Indian highly fractionated land loans

10.0

9.2

10.0

10.0

10.0

10.0

10.0

+0.0

+0.0%

Boll weevil eradication loans

100.0

100.0

60.0

60.0

60.0

60.0

60.0

+0.0

+0.0%

4,787.1

4,575.7

5,527.3

6,402.1

6,402.1

6,402.1

6,402.1

+874.8

+15.8%

Change from FY2014 to

FY2015 (P.L. 113-235)

2. Loan Authority (loan level)

Farm ownership loans

Direct

Guaranteed

Farm operating loans

Conservation loans

Guaranteed

Other direct loans

Total, loan authority

Source: CRS, compiled from tables in the joint explanatory statements or committee reports for P.L. 113-235, S. 2389, H.R. 4800, P.L. 113-76, and P.L. 112-55.

Amounts for FY2013 in P.L. 113-6 are at the post-sequestration level and are from the USDA FY2013 Operating Plan.

Note: Budget authority reflects the cost of making loans, such as interest rate subsidies and default. Some programs are self-funding because of fees charged. Loan authority

reflects the amount of loans that FSA may make or guarantee.

CRS-38

Agriculture and Related Agencies: FY2015 Appropriations

Commodity Credit Corporation66

The Commodity Credit Corporation (CCC) is the funding mechanism for most mandatory

programs in the 2014 farm bill (P.L. 113-79, the Agricultural Act of 2014).67 These include farm

subsidy and disaster payments, as well as a host of other programs that receive mandatory

funding such as conservation, trade, food aid, research, rural development, and bioenergy.

(Programs with different mandatory funding sources than the CCC include crop insurance, SNAP,

child nutrition, and Section 32.) Emergency supplemental spending also has been paid from the

CCC over the years, particularly for ad hoc farm disaster payments, for direct market loss

payments to growers of various commodities in response to low farm commodity prices, and for

animal and plant disease eradication efforts. Farm Service Agency salaries and expenses (a

discretionary appropriation) pays for administration of the programs.

The CCC is a wholly owned government corporation that has the legal authority to borrow up to

$30 billion at any one time from the U.S. Treasury (15 U.S.C. 714, et seq.). These borrowed

funds finance program spending, and CCC eventually must repay the funds. It may earn a small

amount of money from activities such as buying and selling commodities and receiving interest

payments on loans. But because the CCC never earns more than it spends, its borrowing authority

must be replenished periodically through a congressional appropriation so that it does not reach

its $30 billion debt limit. Congress generally provides this infusion through the annual

Agriculture appropriations act. The congressional appropriation may not always restore the line

of credit to the previous year’s level, or may repay more than was spent. For these reasons, the

appropriation to the CCC may not reflect outlays. Also, the appropriation for CCC is several

billion dollars greater than the amount of farm commodity subsidies because many conservation

and other mandatory programs are paid using CCC funds.68

To replenish CCC’s borrowing authority with the Treasury, the enacted FY2015 appropriation

concurred with the Administration request for an indefinite appropriation (“such sums as

necessary”) for CCC. The amount is $13.4 billion for FY2015, up 7% from FY2014. The change

reflects higher disaster payments and the delayed timing of 2014-crop farm program payments,

which are scheduled to be issued in FY2016.

Mandatory outlays for the commodity programs rise and fall based on economic or weather

conditions (e.g., crop prices below program trigger levels generate farm payments). Funding

needs are difficult to estimate, which is a primary reason that the programs are mandatory rather

than discretionary.

Regarding authority for ad-hoc disaster assistance, the enacted appropriation includes a provision

(§717) that has appeared since FY2012 that effectively prohibits the use of CCC funds for

emergency disaster payments to farmers:

[N]one of the funds appropriated or otherwise made available by this or any other Act shall be

used to pay the salaries or expenses of any employee of the Department of Agriculture or

officer of the Commodity Credit Corporation to carry out clause 3 of Section 32 of the

Agricultural Adjustment Act of 1935 (P.L. 74-320, 7 U.S.C. 612c, as amended), or for any

66

This section was written by (name redacted) (7 -...., [redacted]@crs.loc.gov

).

For more background on the farm bill, see CRS In Focus IF10187, The 2014 Farm Bill (Agricultural Act of 2014,

P.L. 113-79), and CRS Report R43076, The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side.

68

For an example of the accounting of CCC’s line of credit, appropriations and expenditures, see USDA, Commodity

Estimates Book: FY2014 President’s Budget, “Output 07-CCC Financing Status,” at http://www.fsa.usda.gov/Internet/

FSA_File/pb14_table_07a.pdf.

67

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surplus removal activities or price support activities under section 5 of the Commodity Credit

Corporation Charter Act.69

Separately, the act also continues a provision (§724) that has been enacted since FY2011 that

limits the ability of USDA to provide marketing assistance loans for mohair.

Crop Insurance70

The federal crop insurance program is administered by USDA’s Risk Management Agency

(RMA). It offers basically free catastrophic insurance to producers who grow an insurable crop.

Producers who opt for this coverage have the opportunity to purchase additional insurance

coverage at a subsidized rate (ranging between 38% and 80%). Policies are sold and serviced

through approved private insurance companies that have their program losses reinsured by USDA

and are reimbursed by the government for their administrative and operating expenses.

The annual Agriculture appropriations bill traditionally makes two separate appropriations for the

federal crop insurance program. First, it provides discretionary funding for the salaries and

expenses of the RMA. Second, it provides “such sums as are necessary” of mandatory funding for

the Federal Crop Insurance Fund, which finances all other expenses of the program, including

premium subsidies, net indemnity payments, and reimbursements to the private insurance

companies.

For the discretionary salaries and expenses of the RMA, the enacted FY2015 appropriation

provides $75 million, up $3 million from the enacted FY2014 amount. The Administration had

requested additional funding for RMA’s ability to improve program compliance, including efforts

to reduce improper payments.

For the Federal Crop Insurance Fund mandatory appropriation, the FY2015 enacted appropriation

provides $8.7 billion, down 9% from the estimated level in FY2014. (The actual amount required

to cover program losses and other subsidies is subject to change based on actual crop losses and

farmer participation rates in the program.) The year-over-year decline is driven by expected lower

commodity prices, which results in a reduced level of premium subsidies. The estimate also

incorporates expected funds needed in FY2015 for crop insurance changes made by the 2014

farm bill, including additional coverage provided by the Supplemental Coverage Option (SCO)

and the Stacked Income Protection Plan (STAX) for upland cotton.

Disaster Assistance71

Agricultural-related disaster assistance usually has been funded on a supplemental basis or

through various mandatory spending programs, and typically has not been provided through

annual appropriations. The enacted FY2015 appropriation, however, provides $91 million for

three watershed and conservation recovery programs. This is $45.7 million less than the Senatereported bill, while the House-reported bill did not contain any such funding. Funding for all

three of these programs is designated as disaster funding for the purpose of budget scoring (not

69

Clause 3 of Section 32 provides that funds shall be used to re-establish farmers’ purchasing power by making

payments in connections with the normal production of any agricultural commodity for domestic consumption (7.U.S.C

612c). Section 5 of the Commodity Credit Corporation Charter Act authorizes the CCC to support the prices of

agricultural commodities through loans, purchases, payments, and other operations (15 U.S.C. 714c).

70

This section was written by (name redacted) (7 -...., [redacted]@crs.loc.gov

). For more information on crop

insurance, see CRS Report R40532, Federal Crop Insurance: Background.

71

This section was written by (name redacted) (7

-...., [redacted]@crs.loc.gov

).

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40

Agriculture and Related Agencies: FY2015 Appropriations

counted against the discretionary spending cap). The appropriation in the General Provisions

(Table 15) and the disaster designation is an offset in scorekeeping adjustments (Table 16).

The Emergency Conservation Program (ECP) receives $9.2 million, to remain

available until expended. ECP provides financial and technical assistance to

rehabilitate farmland and conservation practices destroyed by natural disasters

(e.g., flood, fire, drought, etc.). ECP is administered by the Farm Service Agency

(FSA) and has not received funding since FY2013.

The Emergency Forest Restoration Program (EFRP) receives $3.2 million. EFRP

also is administered by FSA and provides assistance to nonindustrial private

forestland owners to restore forestland following a natural disaster.

The Emergency Watershed Protection (EWP) program receives $78.6 million, to

remain available until expended. EWP is administered by the Natural Resources

Conservation Service (NRCS) and provides financial and technical assistance to

relieve imminent hazards to life and property caused by floods, fires, windstorms,

and other natural occurrences. EWP has not received funding since FY2013.

Under the three recovery programs, a national or state emergency does not have to be declared in

order to receive assistance. The enacted appropriation, however, does require that funds be used

for necessary expenses resulting from a major disaster declared pursuant to the Robert T. Stafford

Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121, et seq.). This requirement

potentially could limit the distribution of recovery assistance.72

Conservation73

USDA administers a number of agricultural conservation programs that assist private landowners

with natural resource concerns. These include working land programs, land retirement and

easement programs, watershed programs, technical assistance, and other programs. The two lead

agricultural conservation agencies within USDA are the Natural Resources Conservation Service

(NRCS)—which provides technical assistance and administers most programs—and the Farm

Service Agency (FSA)—which administers the largest program, the Conservation Reserve

Program (CRP).

Most conservation program funding is mandatory, funded through the Commodity Credit

Corporation (CCC) and authorized in omnibus farm bills (about $5.2 billion of CCC funds in

FY2015). Other conservation programs—mostly technical assistance—are discretionary and

funded through annual appropriations (about $856 million in the enacted FY2015 appropriation).

As discussed in more detail below, the enacted FY2015 appropriation accepts some of the

Administration’s proposed reductions to mandatory conservation programs and provides more

than the Administration’s request for discretionary programs.

Discretionary Conservation Programs

All of the discretionary conservation programs are administered by NRCS. The largest

discretionary conservation program that funds most NRCS operations is the Conservation

Operations (CO) account. P.L. 113-235 increased funding for CO above the FY2014 level of

72

For additional information on the disaster assistance programs in this section and the Stafford Act limitation, see

CRS Report R42854, Emergency Assistance for Agricultural Land Rehabilitation.

73

This section was written by (name redacted) (7

-...., [redacted]@crs.loc.gov

).

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Agriculture and Related Agencies: FY2015 Appropriations

$812.9 million to $846 million—halfway between the House- and Senate reported bills and $31.7

million more than requested by the Administration.

The enacted FY2015 appropriation further directs CO funding for a number of existing

conservation programs (Table 8). The committee reports (H.Rept. 113-468 and S.Rept. 113-164)

include a number of congressionally directed actions for NRCS, including program

administration, invasive species, wetland mitigation, herbicide resistance, conservation practices

and standard direction, species protection, and partner agreements. While these actions do not

include a specific funding level, they ultimately can direct funding to congressionally identified

projects, similar to earmarks.74

The Administration proposed renaming the Conservation Operations account as “Private Lands

Conservation Operations” and consolidating the technical assistance funding for the mandatory

conservation programs with CO. The enacted FY12015 appropriation did not adopt this proposed

change.

Funding also is provided in P.L. 113-235 (and in the House-reported bill, enacted FY2014

appropriation, and the 2014 farm bill) for the Watershed Rehabilitation program, which

rehabilitates aging dams previously built by USDA.75 The Administration proposed terminating

this program, contending that the maintenance, repair, and operation of dams are the

responsibility of the local project sponsor. The enacted FY2014 appropriation included $12

million for the program, and the 2014 farm bill (P.L. 113-79) added an additional $250 million in

mandatory funding for FY2014.76 The enacted FY2015 appropriation provides $12 million for

FY2015, less than H.R. 4800 ($25 million) but more than S. 2389 ($0).

Table 8. Conservation Operations Funding

(budget authority in millions of dollars)

FY2014

FY2015

P.L. 113-76

Admin.

Request

House

H.R. 4800

Senate

S. 2389

P.L. 113235

813

815

843

849

846

Conservation Technical Assistance

711

717

747

0

748

Soil Survey

80

80

78

0

80

Snow Survey

9.3

8.9

9.1

0

9.3

Plant Material Center

9.4

9.2

9.2

0

9.4

Watershed Projects (Watershed Operations)

3.0

0

0

5.6

5.6

Conservation Delivery Streamlining Initiative

0

3.7

1.5

0

1.5e

Program

Conservation Operationsa

74

Language in the joint explanatory statement accompanying the enacted appropriation suggests that House and Senate

committee report language not changed by the explanatory statement still expresses congressional intentions (see

Congressional Record, vol. 160, part 151, book 11 [December 11, 2014], p. H9308).

75

See CRS Report RL30478, Federally Supported Water Supply and Wastewater Treatment Programs.

76

Mandatory funding for the program was restricted in the FY2014 appropriation, but because the 2014 farm bill was

enacted after the enactment of the FY2014 appropriation, the CHIMPS in appropriations did not apply to the new

funding; therefore NRCS received the full $250 million from the farm bill for the Watershed Rehabilitation Program.

According to NRCS, the agency will be able to obligate all of the new funding and still have a backlog of requested

funding close to $336 million that will remain unfunded.

Congressional Research Service

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Source: CRS, compiled from tables in the joint explanatory statements or committee reports for P.L. 113-235,

S. 2389, H.R. 4800, and P.L. 113-76.

Notes: The lack of a specified funding level does not necessarily indicate a committee’s lack of support for a

particular sub-program, only that the bill and report language did not specify an amount for FY2015.

a. Total CO includes GSA and DHS rental payments of $28.6 million in the Administration’s request and

Senate-reported bill. The House-reported bill does not include similar language, but funding levels are

consistent with these payments inclusion.

b. Funding level is not specifically identified in P.L. 113-235 or associated explanatory statement; however the

amount identified in H.Rept. 113-468 suggests congressional intent.

Mandatory Conservation Programs

Mandatory conservation programs generally are authorized in omnibus farm bills and receive

funding from the CCC, thus not requiring an annual appropriation. But Congress has reduced

mandatory conservation programs through changes in mandatory program spending (CHIMPS) in

the annual agricultural appropriations law every year since FY2003. Because money is fungible,

the savings from these reductions are not necessarily applied toward other conservation activities.

Prior to the 2008 farm bill, reductions to conservation programs through appropriations law

peaked in FY2006, with a reduction totaling $638 million. Following the 2008 farm bill,

conservation CHIMPS peaked again in FY2012 at $929 million. The 2014 farm bill authorized a

number of conservation programs with mandatory funding (over $5 billion in FY2015). The

FY2015 appropriation continues to CHIMP farm bill conservation programs (at $212 million).

The FY2015 enacted CHIMPS are less than the Administration and Senate-reported bill, but more

than the House-reported bill. The Administration’s request historically has included annual

proposed reductions to conservation funding, usually more substantial than Congress has

supported. Both the Administration’s request and Senate-reported bill would have CHIMPed

conservation by $278 million in FY2015,77 while the House-reported reduction was slightly less

at $206 million. Sequestration further reduced these programs in FY2015, resulting in a total

effective reduction to CHIMPed conservation programs of $430 million.

The number of conservation programs reduced through appropriations varies from year to year;

however, some programs are continuously reduced, while others almost never receive a reduction.

Programs such as the Environmental Quality Incentives Program (EQIP) have been reduced

annually since FY2003, while others, such as the Conservation Reserve Program (CRP), have not

been reduced in over a decade. In FY2015, P.L. 113-235 allows EQIP to spend no more than

$1.35 billion (authorized at $1.6 billion), no more than $73 million for the Watershed

Rehabilitation Program (authorized at $153 million),78 and no more than 7.7 million acres for the

Conservation Stewardship Program (CSP, authorized to enroll up to 10 million acres).

For more information on reductions to mandatory conservation programs through appropriations,

see CRS In Focus IF10041, Reductions to Mandatory Agricultural Conservation Programs in

Appropriations Law.

77

For discussion purposes, since the Senate bill and Administration’s request would reduce these programs to the same

level, this paragraph refers to them having the same $278 million conservation CHIMP total. However, CBO was not

consistent and gave the Administration credit for a level of CHIMPS that was not available to the Senate because of

sequestration. Therefore the Administration actually is credited in Table 13 with $403 million from two conservation

program CHIMPS. See the text box in the later section “Changes in Mandatory Program Spending (CHIMPS).”

78

Mandatory funding for Watershed Rehabilitation originally was provided in the 2002 farm bill to remain available

until expended. Since that time, annual appropriations have restricted this no-year funding to generate annual savings.

In FY2014, this restriction resulted in savings of $153 million. Sequestration reduced this by $11 million, leaving $142

million available in FY2015. P.L. 113-235 further reduced the amount to $73 million, creating a $69 million CHIMP.

Congressional Research Service

43

Agriculture and Related Agencies: FY2015 Appropriations

Rural Development79

Three agencies are responsible for USDA’s rural development mission area: the Rural Housing

Service (RHS), the Rural Business-Cooperative Service (RBS), and the Rural Utilities Service

(RUS). An Office of Community Development provides community development support

through field offices. This mission area also administers Rural Economic Area Partnerships and

the National Rural Development Partnership.

The FY2015 enacted appropriation provides a total of $2.4 billion in discretionary budget

authority for rural development programs in FY2015 (after rescission), essentially level with the

FY2014 amount and $172.5 million more than requested by the Administration. If the rescission

to the Cushion of Credit account (-$179 million) is not incorporated in the rural development

section but included with CHIMPS as in the CBO score, then the net budget authority for rural

development would be $2.58 billion (Table 9). The bill supports $36 billion in loan authority.

Salaries and expenses within Rural Development are funded from a direct appropriation plus

transfers from each of the agencies. The enacted appropriation provides a combined salaries and

expenses total of $678.2 million for FY2015, $21 million more than in FY2014 (+3.2%),.

Rural Housing Service (RHS)

For FY2015, the enacted bill provides $1.71 billion in budget authority for RHS programs (before

transfers of salary and expenses). This is approximately $19 million (+1.1%) more than FY2014.

With this budget authority, the enacted bill authorizes $27.4 billion in loan authority, essentially

equal to the FY2014 total loan authority.

The single-family housing loan program (Section 502 of the Housing Act of 1949) is the largest

loan account, representing over 90% of RHS’s total loan authority. The enacted bill provides

$900 million for direct loans and $24 billion for loan guarantees. This is the same as FY2014 and

recent years, despite an Administration request for less direct loan authority.

For other housing loan programs, the FY2015 appropriation provides $3.7 million in budget

authority to support $26.3 million in loans for the Section 504 Very Low-Income Housing Repair

loan program. This is approximately the same loan authorization level as FY2014 and about $1.5

million more in budget authority than for FY2014 ($2.2 million). The Administration requested

no funding for the Section 504 program. For the Multi-Family Housing loan guarantee program

(Section 538), the enacted bill provides loan authority of $150 million for FY2015, the same as

for FY2014. For the Section 515 Rental Housing Program, the enacted bill provides loan

authority of $28.4 million and $9.8 million in subsidies, $3.1 million (47%) more than FY2014.

Rental Assistance Program grants (Section 521) are the largest budget authority line item in RHS,

accounting for 63% of the total RHS budget authority appropriation in FY2015 (Table 9). The

enacted bill provides $1.09 billion in new budget authority, the same as the request and a decrease

of $22 million from FY2014 (-1.9%).

The Rural Housing Service also administers the Rural Community Facilities program. The

program provides direct loans, loan guarantees, and grants for “essential community facilities” in

rural areas with less than 20,000 in population. The enacted bill provides a total of $30.3 million

in new budget authority for the program to support a loan authorization level of $2.27 billion and

79

This section was written by (name redacted) (7-...., [redacted]@crs.loc.gov).

Congressional Research Service

44

Agriculture and Related Agencies: FY2015 Appropriations

$13 million in grants. This budget authority is $2.2 million (-6.9%) less than for FY2014; the

guaranteed loan authority is $13.7 million (+5.2%) more than FY2014.

Rural Business-Cooperative Service (RBS)

The FY2015 appropriation provides $108 million to the RBS before the Cushion of Credit

rescission and transfers of salaries and expenses. This is about $27 million less than in the

enacted FY2014 amount (-20%). If the Cushion of Credit rescission is incorporated as in the

Appropriations committee tables (-$179 million), the net RBS budget authority is -$71.3 million.

The FY2015 bill provides about $985 million in loan authority for the various RBS loan

programs, $38.2 million less than FY2014 (-3.7%).

For the Rural Business Program account, the enacted bill provides $74.0 million in new budget

authority, $22.5 million less than FY2014 (-23.3%). The Rural Business Program account

includes the Business and Industry (B&I) Loan Guarantee program ($47 million), the Rural

Business Development Grant program ($24 million), and the Delta Regional Authority grant

program ($3.0 million).80 The appropriation bill reduces the B&I Loan Guarantee program’s

budget and loan authority from FY2014 levels (Table 9).

For the Rural Energy for America Program (REAP), the enacted bill provides $1.4 million for

loan subsidies to support $12.8 million in loans. Like FY2014, there is no appropriation for

REAP grants (the Administration had requested $5 million).

The Administration requested, but did not receive, funding for two new business programs: the

Rural Business Investment Program ($6 million) and the Health Food Financing Initiative (HFFI,

$13 million). The former was authorized in the 2002 farm bill (P.L. 107-171, §6029) but was not

implemented. The HFFI was authorized in the 2014 farm bill (P.L. 113-79, §4206). The

Administration also requested $3.3 million for the Rural Microenterprise Assistance Program.

Rural Utilities Service (RUS)

The FY0215 appropriation provides $536.2 million in new budget authority for the Rural Utilities

Service before transferring salaries and expenses, essentially the same as FY2014. This is

approximately about $145 million (+27.2%) more than the Administration requested. After

transferring an unchanged amount for rural electric and telecommunication administrative

expenses ($34.5 million), the program balance is $501 million for FY2015 (Table 9).

Loan subsidies and grants under the Rural Water and Waste Disposal Program account represent

the largest share of FY2015 recommended budget authority under RUS programs (approximately

87% of total RUS budget authority). The enacted bill provides $465 million in budget authority,

$2.5 million more than FY2014 and $160.8 more than the Administration requested. This

appropriation would support $1.25 billion in direct and guaranteed loans. Along with the direct

and guaranteed loans, the appropriation is divided among the following grant accounts

Water/Waste Water grants ($347.1 million);

Solid Waste Management grants ($4.0 million);

Individual Well Water grants ($993,000);

Water and Waste Water revolving fund ($1.0 million);

80

The Business Development grants program combines the Rural Business Enterprise grants and the Rural Business

Opportunity grants programs.

Congressional Research Service

45

Agriculture and Related Agencies: FY2015 Appropriations

Circuit Rider program ($15.9 million);

Technical Assistance ($19 million);

Grants for Colonias and Alaska and Hawaii Natives ($66.5 million);

High Energy Cost grants ($10 million).

The enacted bill provides for $5.5 billion in rural electric loans and $690 million in Treasury rate

telecommunication loans, both the same as FY2014. Most of the recommended loan authority is

for direct Federal Finance Bank electric loans ($5.0 billion).

For the combined distance learning, telemedicine, and broadband account, the appropriation

provides $36.8 million in budget authority. The FY2014 appropriation was $39.2 million.

For distance learning/telemedicine, the FY2015 amount is $22.0 million in grant

support, which is $2.3 million less than FY2014 (-9.6%).

For rural broadband, the FY2015 amounts are $10.4 million for grants and $4.5

million for direct loan subsidies, each the same as FY2014. The associated loan

authority, however, would decrease by $10 million from FY2014 to $24.1

million. The Administration had requested $20 million in grants, $8.3 million in

loan subsidy, and $44 million in loan authority.

Congressional Research Service

46

Table 9. USDA Rural Development Appropriations

(budget authority in millions of dollars)

FY2012

FY2013

FY2014

P.L. 11255

P.L. 113-6

post-sequ.

P.L. 11376

Admin.

Request

House

H.R. 4800

Senate S.

2389

P.L. 113235

Salaries and expenses (direct)

182.0

192.1

203.4

225.1

224.2

228.9

Transfers from RHS, RBCS, RUS

471.9

420.9

454.0

434.5

454.0

653.9

613.0

657.4

659.6

1,090.3

1,031.1

1,279.6

2. Rural Business-Cooperative Service

109.3

114.2

3. Rural Utilities Service

551.0

Summary

FY2015

Change from FY2014 to

FY2015 (P.L. 113-235)

$

%

224.2

+20.8

+10.2%

454.0

454.0

+0.0

+0.0%

678.2

682.9

678.2

+20.8

+3.2%

1,228.6

1,310.4

1,307.0

1,298.4

+18.7

+1.5%

130.2

139.2

99.6

111.7

103.2

-27.0

-20.7%

520.8

501.6

357.6

501.8

504.4

501.7

+0.2

+0.0%

0.8

0.8

0.9

0.9

0.9

0.9

0.9

+0.0

+0.6%

2,405.2

2,279.9

2,569.7

2,385.9

2,590.8

2,606.9

2,582.4

+12.7

+0.5%

Less rescission of Cushion of Credit

-155.0

-180.0

-172.0

-155.0

-155.0

-158.0

-179.0

-7.0

+4.1%

Net, Rural Development (in comm. rept.)

2,250.2

2,099.9

2,397.7

2,230.9

2,435.8

2,448.9

2,403.4

+5.7

+0.2%

Administrative expenses (transfer)

430.8

383.3

415.1

397.3

415.1

415.1

415.1

+0.0

+0.0%

Single family direct loans (sec. 502)

42.6

50.2

24.5

26.6

76.9

66.4

66.4

+41.9

+171.3%

900.0

840.1

900.0

360.0

1,042.3

900.0

900.0

+0.0

+0.0%

24,000.0

24,000.0

24,000.0

24,000.0

24,000.0

24,000.0

24,000.0

+0.0

+0.0%

Other RHIF programsc

37.6

29.3

22.8

29.5

29.4

29.5

29.4

+6.6

+28.9%

Loan authority

240.3

241.7

248.6

243.6

248.4

248.6

248.3

-0.3

-0.1%

Subtotal, RHIF

511.0

462.7

462.4

453.4

521.5

511.0

510.9

+48.5

+10.5%

25,140.3

25,081.8

25,148.6

24,603.6

25,290.6

25,148.6

25,148.3

-0.3

-0.0%

Subtotal, salaries and exp.

1. Rural Housing Service

Office of the Under Secretary

Total, Rural Development

Alternate total (including rescissions)a

1. Rural Housing Service

Loan authorityb

Single family guaranteed loans: Loan authority

Loan authority

CRS-47

FY2012

FY2013

FY2014

P.L. 11255

P.L. 113-6

post-sequ.

P.L. 11376

Admin.

Request

House

H.R. 4800

Senate S.

2389

P.L. 113235

Rental assistance (sec. 521)

900.7

834.3

1,110.0

1,088.5

1,088.5

1,093.5

Other rental assistanced

4.0

2.8

—

—

—

Multifamily housing revitalization

13.0

26.4

32.6

28.0

Mutual & self-help housing grants

30.0

27.7

25.0

Rural housing assistance grants

33.1

30.6

11.4

Summary

FY2015

Change from FY2014 to

FY2015 (P.L. 113-235)

$

%

1,088.5

-21.5

-1.9%

—

—

—

—

28.0

28.0

24.0

-8.6

-26.3%

10.0

30.0

25.0

27.5

+2.5

+10.0%

32.2

25.0

27.0

32.2

32.2

+0.0

+0.0%

12.1

13.0

17.0

13.0

13.0

13.0

+0.0

+0.0%

1,300.0

2,200.0

2,200.0

2,200.0

2,200.0

2,200.0

2,200.0

+0.0

+0.0%

Community Facilities: Guarantees

5.0

3.6

3.8

—

3.5

3.6

3.5

-0.3

-7.3%

Loan authority

105.7

53.3

59.5

—

73.2

75.0

73.2

+13.7

+23.0%

Rural community dev. initiative

3.6

5.7

6.0

—

5.0

6.0

4.0

-2.0

-33.0%

Economic impact initiative grants

5.9

5.5

5.8

—

5.0

5.8

5.8

+0.0

+0.0%

Tribal college grants

3.4

3.1

4.0

4.0

4.0

4.0

4.0

+0.0

+0.0%

29.3

30.0

32.5

21.0

30.5

32.3

30.3

-2.2

-6.9%

1,405.7

2,253.3

2,259.5

2,200.0

2,273.2

2,275.0

2,273.2

+13.7

+0.6%

Total, Rural Housing Service

1,521.1

1,414.3

1,694.7

1,625.9

1,725.5

1,722.1

1,713.5

+18.7

+1.1%

Less transfer salaries & expenses

-430.8

-383.3

-415.1

-397.3

-415.1

-415.1

-415.1

+0.0

+0.0%

Rural Housing Service (programs)

1,090.3

1,031.1

1,279.6

1,228.6

1,310.4

1,307.0

1,298.4

+18.7

+1.5%

Loan authority

26,546.0

27,335.1

27,408.1

26,803.6

27,563.9

27,423.6

27,421.5

+13.4

+0.0%

Other housing programs

Rural Community Facilities Program

Community Facilities: Grants

Loan authority

Subtotal, Rural Community Facilities

Loan authority

CRS-48

Summary

FY2012

FY2013

FY2014

FY2015

P.L. 11255

P.L. 113-6

post-sequ.

P.L. 11376

Admin.

Request

House

H.R. 4800

Senate S.

2389

P.L. 113235

Change from FY2014 to

FY2015 (P.L. 113-235)

$

%

2. Rural Business Cooperative Service

Rural Business Program Account

Guar. Bus. & Ind. (B&I) Loans

45.3

52.3

67.0

30.2

45.0

49.0

47.0

-20.0

-29.8%

812.6

890.2

958.1

590.8

880.6

958.1

919.8

-38.3

-4.0%

Rural bus. enterprise grants

24.3

22.6

24.3

—

20.0

—

24.0

-0.3

-1.3%

Rural bus. opportunity grants

2.3

2.1

2.3

—

—

—

0.0

-2.3

-100.0%

Delta regional authority grants

2.9

2.8

3.0

—

—

3.0

3.0

+0.0

+0.0%

Rural business development

—

—

—

57.5

—

26.6

—

—

—

Admin. expenses (transfer)

4.7

4.1

4.4

4.2

4.4

4.4

4.4

+0.0

+0.0%

Loan subsidy

6.0

5.6

4.1

3.1

5.0

5.8

5.8

+1.7

+42.5%

17.7

17.4

18.9

10.0

16.2

18.9

18.9

+0.0

+0.0%

Rural Econ. Dev.: Loan authority

33.1

33.1

33.1

59.5

59.5

33.1

33.1

+0.0

+0.0%

Rural coop. development grants

25.1

25.7

26.1

16.1

22.1

26.1

22.1

-4.0

-15.4%

Rural Microenterprise: Loan subsidy

—

—

—

3.3

—

—

—

—

—

—

—

—

25.7

—

—

—

—

—

Rural Business Invest. Program: Grants

—

—

—

2.0

—

—

—

—

—

Loan subsidy

—

—

—

4.0

4.0

—

—

—

—

—

—

—

39.3

39.3

—

—

—

—

Rural Energy for America: Grants

1.7

—

—

5.0

—

—

—

—

—

Loan subsidy

1.7

3.1

3.5

5.0

3.5

1.4

1.4

-2.2

-61.4%

6.5

13.1

12.8

47.3

33.1

12.8

12.8

+0.0

+0.0%

Loan authority

Rural Development Loan Fund Program

Loan authority

Loan authority

Loan authority

Loan authority

CRS-49

FY2012

FY2013

FY2014

FY2015

Summary

P.L. 11255

P.L. 113-6

post-sequ.

P.L. 11376

Admin.

Request

House

H.R. 4800

Senate S.

2389

P.L. 113235

Healthy Foods, Healthy Neighborhoods Initiative

—

—

—

13.0

—

—

Total, Rural Business-Cooperative Service

113.9

118.3

134.6

143.4

104.0

-4.7

-4.1

-4.4

-4.2

109.3

114.2

130.2

869.8

953.7

Budget authority

113.9

Less rescission of Cushion of Credit

Net, Rural Bus.-Coop. Svc. (in cmte. report)

Change from FY2014 to

FY2015 (P.L. 113-235

This text is long and has been trimmed here. Open the source document for the complete record.

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