Agriculture and Related Agencies: FY2017 Appropriations

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Agriculture and Related Agencies: FY2017

Appropriations

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Specialist in Agricultural Policy

June 26, 2017

Congressional Research Service

7-....

www.crs.gov

R44588

Agriculture and Related Agencies: FY2017 Appropriations

Summary

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

the Forest Service. It also funds the Food and Drug Administration (FDA) and—in evennumbered fiscal years—the Commodity Futures Trading Commission (CFTC). (For CFTC, the

Agriculture appropriations subcommittee has jurisdiction in the House but not in the Senate.)

Agriculture appropriations include both mandatory and discretionary spending. Discretionary

amounts, though, are the primary focus during the bill’s development, since mandatory amounts

are generally set by authorizing laws such as the farm bill.

The largest discretionary spending items are the Special Supplemental Nutrition Program for

Women, Infants, and Children (WIC); agricultural research; FDA; rural development; foreign

food aid and trade; farm assistance programs; food safety inspection; conservation; and animal

and plant health programs. The main mandatory spending items are the Supplemental Nutrition

Assistance Program (SNAP), child nutrition, crop insurance, and the farm commodity and

conservation programs paid by the Commodity Credit Corporation.

The FY2017 appropriation for Agriculture and Related Agencies was enacted on May 5, 2017, as

part of the Consolidated Appropriations Act (P.L. 115-31, Division A). The fiscal year started on

October 1, 2016, under continuing resolutions (CRs) that lasted for seven months. About a year

earlier, the House and the Senate Appropriations Committees reported their FY2017 Agriculture

appropriations bills (H.R. 5054, S. 2956) in April and May 2016.

The discretionary total of the enacted appropriation is $20.877 billion, which is $623 million less

than enacted in FY2016 (-2.9%). It achieves this primarily by increasing budgetary offsets over

the FY2016 level through greater rescissions of prior appropriations and greater scorekeeping

adjustments.

However, the budget authority for FY2017 provided to agencies in the major titles of the bill

actually increases by $462 million compared to FY2016. Increases primarily include $163 million

more for discretionary conservation programs than in FY2016, $119 million more for rural

development, $65 million more for discretionary domestic nutrition programs, $52 million more

for animal and plant health programs, $51 million more for agricultural research programs, $42

million more for the Food and Drug Administration, $29 million more for the Farm Service

Agency, $20 million more for USDA administrative facilities, and $17 million more for food

safety inspections. Reductions primarily come from a rescission of unused domestic nutrition

assistance funding ($850 million rescission), supplemental funding for international food aid

($116 million less than in FY2016), agricultural research facilities ($112 million less), greater use

of a disaster designation that does not count against budget caps ($76 million extra offset), and

disaster assistance ($38 million less).

The appropriation also carries mandatory spending that totaled about $132.5 billion. The overall

total of the FY2017 Agricultural appropriation therefore exceeded $153 billion.

In addition to setting budgetary amounts, the Agriculture appropriations bill is also a vehicle for

policy-related provisions that direct how the executive branch should carry out the appropriation.

Notable policy provisions in the FY2017 appropriation include provisions prohibiting inspection

of horse slaughter facilities, importing processed (cooked) poultry meat from China, rules about

inventory requirements for SNAP-authorized retailers, requirements for SNAP households to

report moves out of state, and waivers for schools to not meet whole grain and sodium

requirements.

Congressional Research Service

Agriculture and Related Agencies: FY2017 Appropriations

Contents

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

Action on FY2017 Appropriations .................................................................................................. 2

Administration’s Budget Request.............................................................................................. 4

FY2017 Budget Request ..................................................................................................... 4

FY2018 Budget Request ..................................................................................................... 5

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

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

Continuing Resolution .............................................................................................................. 6

Summary of FY2017 Appropriations Amounts ............................................................................... 6

Comparison of Amounts in the FY2017 Appropriation ............................................................ 8

Sequestration Continues on Mandatory Accounts..................................................................... 9

Continuing Resolutions ........................................................................................................... 15

First Continuing Resolution .............................................................................................. 15

Second Continuing Resolution ......................................................................................... 16

Policy Issues ............................................................................................................................ 17

Recent Trends in Agriculture Appropriations.......................................................................... 18

USDA Agencies and Programs ...................................................................................................... 20

Departmental Administration .................................................................................................. 20

Agricultural Research, Education, and Extension ................................................................... 23

Agricultural Research Service .......................................................................................... 23

National Institute of Food and Agriculture ....................................................................... 24

National Agricultural Statistics Service ............................................................................ 25

Economic Research Service .............................................................................................. 25

Marketing and Regulatory Programs ...................................................................................... 27

Animal and Plant Health Inspection Service .................................................................... 27

Agricultural Marketing Service and “Section 32” ............................................................ 28

Grain Inspection, Packers and Stockyards Administration ............................................... 30

Food Safety and Inspection Service (FSIS) ............................................................................ 31

Farm Service Agency .............................................................................................................. 32

FSA Salaries and Expenses ............................................................................................... 32

FSA Farm Loan Programs ................................................................................................ 33

Commodity Credit Corporation .............................................................................................. 38

Crop Insurance ........................................................................................................................ 39

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

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

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

Mandatory Conservation Programs .................................................................................. 42

Rural Development ................................................................................................................. 43

Rural Housing Service ...................................................................................................... 43

Rural Business-Cooperative Service................................................................................. 44

Rural Utilities Service ....................................................................................................... 45

Domestic Food Assistance ...................................................................................................... 51

Office of the Under Secretary for Food, Nutrition, and Consumer Services .................... 51

SNAP and Other Programs under the Food and Nutrition Act ......................................... 51

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

WIC Program .................................................................................................................... 54

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Agriculture and Related Agencies: FY2017 Appropriations

Commodity Assistance Program ....................................................................................... 55

Nutrition Programs Administration................................................................................... 55

Other Nutrition Funding Support ...................................................................................... 56

Agricultural Trade and Food Aid ............................................................................................ 60

Foreign Agricultural Service ............................................................................................. 60

Food for Peace Program.................................................................................................... 61

McGovern-Dole International Food for Education and Child Nutrition .......................... 62

Local and Regional Procurement Projects ........................................................................ 62

Industrial Hemp: Appropriations Provisions ........................................................................... 63

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

Food and Drug Administration................................................................................................ 64

FDA’s Medical Product Activities .................................................................................... 65

FDA’s Food Safety Activities............................................................................................ 69

Commodity Futures Trading Commission .............................................................................. 71

Farm Credit Administration .................................................................................................... 72

General Provisions, Scorekeeping Adjustments ............................................................................ 73

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

Rescissions of Discretionary Accounts ................................................................................... 76

Other Appropriations (Including Emergency Disaster Programs) .......................................... 77

Other Scorekeeping Adjustments ............................................................................................ 78

Figures

Figure 1. Scope of Agriculture and Related Agencies Appropriations ............................................ 1

Figure 2. Timeline of Action on Agriculture Appropriations, FY1997-FY2017 ............................. 4

Figure 3. Discretionary Agriculture Appropriations, by Title, Since FY2007............................... 19

Figure 4. Inflation-Adjusted Discretionary Agriculture Appropriations Since FY2007 ............... 19

Figure A-1. Discretionary Agriculture Appropriations .................................................................. 80

Figure A-2. Total Agriculture Appropriations: Mandatory and Discretionary .............................. 81

Figure A-3. Total Agriculture Appropriations: Domestic Nutrition and Rest of Bill .................... 81

Figure A-4. Agriculture Appropriations as Percentages of Total Federal Budget ......................... 82

Figure A-5. More Components as Percentages of Total Federal Budget....................................... 82

Figure A-6. Agriculture Appropriations as Percentages of GDP ................................................... 82

Figure A-7. Agriculture Appropriations per Capita of U.S. Population ........................................ 82

Tables

Table 1. Congressional Action on Agriculture Appropriations Since FY1997 ................................ 3

Table 2. Agriculture and Related Agencies Appropriations by Title, FY2016-FY2017 .................. 7

Table 3. Agriculture and Related Agencies Appropriations, by Agency, FY2014-FY2017 .......... 10

Table 4. USDA Departmental Administration Appropriations ...................................................... 21

Table 5. USDA Research, Extension, and Economics (REE) Appropriations .............................. 26

Table 6. Animal and Plant Health Inspection Service (APHIS) Appropriations ........................... 27

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Agriculture and Related Agencies: FY2017 Appropriations

Table 7. Farm Service Agency (FSA) Appropriations ................................................................... 35

Table 8. Farm Service Agency: Farm Loan Program .................................................................... 36

Table 9. Conservation Operations Funding ................................................................................... 41

Table 10. USDA Rural Development Appropriations ................................................................... 46

Table 11. Domestic Food Assistance Appropriations .................................................................... 57

Table 12. Food and Drug Administration (FDA) Appropriations.................................................. 67

Table 13. Farm Credit Administration Limitation on Expenses .................................................... 72

Table 14. General Provisions and Scorekeeping Adjustments ...................................................... 73

Table 15. CHIMPS and Rescissions to Mandatory Spending Programs ....................................... 75

Table 16. Rescissions from (Prior-Year) Discretionary Budget Authority .................................... 76

Table 17. Other Appropriations in General Provisions.................................................................. 77

Table 18. Scorekeeping Adjustments............................................................................................. 79

Table A-1. Percentage Changes in Agriculture Appropriations ..................................................... 82

Table A-2. Trends in Nominal Agriculture Appropriations ........................................................... 83

Table A-3. Trends in Real Agriculture Appropriations .................................................................. 84

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

Table B-1. Sequestration from Accounts in the Agriculture Appropriation .................................. 86

Table B-2. Sequestration of Mandatory Accounts for Agencies in Agriculture

Appropriations, FY2013-2017 ................................................................................................... 87

Appendixes

Appendix A. Historical Trends ...................................................................................................... 80

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

Contacts

Author Contact Information .......................................................................................................... 90

Congressional Research Service

Agriculture and Related Agencies: FY2017 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; Department of Health and Human

Services).

 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 their respective

Subcommittees on Agriculture, Rural Development, Food and Drug Administration, and Related

Agencies. The bill includes mandatory and discretionary spending, but the discretionary amounts

are the primary focus during the bill’s development. The scope of the bill is shown in Figure 1.

Figure 1. Scope of Agriculture and Related Agencies Appropriations

(FY2017 budget authority in billions of dollars)

Source: CRS. Does not show some agencies under $0.5 billion or reductions that offset appropriations.

Notes: SNAP = Supplemental Nutrition Assistance Program; CCC = Commodity Credit Corporation; FCIC =

Federal Crop Insurance Corporation; Section 32 = Funds for Strengthening Markets, Income and Supply; WIC =

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

Food Program; FDA = Food and Drug Administration; FSA = Farm Service Agency; RMA = Risk Management

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

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Agriculture and Related Agencies: FY2017 Appropriations

The federal budget process treats discretionary and mandatory spending differently.1

Discretionary spending is controlled by annual appropriations acts and receives

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

resolution2 process sets spending limits for discretionary appropriations. Agency

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

Mandatory spending3—though carried in the appropriation and usually

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

authorization process.4 Spending for so-called entitlement programs is set in laws

such as the farm bill5 and child nutrition reauthorizations.6

In FY2017, discretionary appropriations are 14% ($20.9 billion) in the Agriculture appropriations

act (P.L. 115-31). Mandatory spending carried in the bill comprised $133 billion, about 86% of

the $153 billion total.

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

Supplemental Nutrition Program for Women, Infants, and Children (WIC); rural development;

agricultural research; FDA; 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). SNAP is referred to as an “appropriated entitlement” and

requires an annual appropriation.7 The nutrition program amounts are based on projected

spending needs. In contrast, the CCC operates on a line of credit. The annual appropriation

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

Action on FY2017 Appropriations8

The FY2017 appropriation for Agriculture and Related Agencies was enacted on May 5, 2017, as

part of the Consolidated Appropriations Act (P.L. 115-31, Division A). The fiscal year started on

October 1, 2016, under continuing resolutions (CRs) that lasted for seven months.

In regular action, the House and the Senate Appropriations Committees reported their FY2017

Agriculture appropriations bills (H.R. 5054, S. 2956) in April and May 2016, with some of the

earliest subcommittee action in two decades (Table 1, Figure 2). No further action on the

individual bills occurred until they were incorporated into the omnibus appropriation.9

1

See CRS Report R44582, Overview of Funding Mechanisms in the Federal Budget Process, and Selected Examples.

See CRS Report R42388, The Congressional Appropriations Process: An Introduction.

3

Mandatory spending creates funding stability and consistency compared to appropriations. In agriculture, it originally

was reserved for the farm commodity programs that had uncertain outlays because of weather and market conditions.

4

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

5

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

6

See CRS Report R44373, Tracking the Next Child Nutrition Reauthorization: An Overview.

7

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

8

A shorter version is CRS Report R44441, FY2017 Agriculture and Related Agencies Appropriations: In Brief.

9

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

2

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Agriculture and Related Agencies: FY2017 Appropriations

The last time an Agriculture appropriations bill was enacted as a stand-alone measure was for

FY2010 (in calendar 2009). An Agriculture appropriations bill has not cleared a floor vote in

either chamber since the FY2012 bill, when it was the vehicle for a three-bill “minibus” measure.

Committee action for FY2017 was somewhat earlier than in recent years.

Table 1. Congressional Action on Agriculture Appropriations Since FY1997

House Action

Senate Action

Final Appropriation

Fiscal

Year

Subcmte.

Cmte.

Floor

Subcmte.

Cmte.

Floor

Public Law

CRS

Report

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

7/18/2001

10/25/2001

11/28/2001

E

P.L. 107-76

RL31001

Enacteda

2002

6/6/2001

6/27/2001

7/11/2001

Polled outb

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 outb

7/17/2008

—

3/11/2009

O

P.L. 111-8

R40000

7/9/2009

Polled outb

7/7/2009

8/4/2009

10/21/2009

E

P.L. 111-80

R40721

—

Polled outb

7/15/2010

—

4/15/2011

Y

P.L. 112-10

R41475

6/16/2011

Polled outb

9/7/2011

11/1/2011

11/18/2011

O

P.L. 112-55

R41964

4/26/2012

—

3/26/2013

O

P.L. 113-6

R43110

2010

2011

2012

6/11/2009

6/30/2010

5/24/2011

6/18/2009

—

5/31/2011

2013

6/6/2012

6/19/2012

—

Polled outb

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

5/29/2014

—

5/20/2014

5/22/2014

—

12/16/2014

O

P.L. 113-235

R43669

2016

6/18/2015

7/8/2015

—

7/14/2015

7/16/2015

—

12/18/2015

O

P.L. 114-113

R44240

2017

4/13/2016

Draftc

Voice vote

4/19/2016

H.R. 5054

H.Rept.

114-531

Voice vote

—

5/17/2016

Voice vote

5/19/2016

S. 2956

S.Rept.

114-259

30-0

—

5/5/2017

Votes:

H: 309-118

S: 79-18

O

P.L. 115-31

R44441

Explanatory R44588

Statement:

Congressional

Record, May 3,

2017, Part II,

H3328-H3364

Source: CRS.

a. E = Enacted as standalone appropriation (seven times over 21 years); O = Omnibus appropriation (12

times); Y = Year-long continuing resolution (two times).

b. A procedure that permits a Senate subcommittee to transmit a bill to its full committee without a formal

markup session. See CRS Report RS22952, Proxy Voting and Polling in Senate Committee.

c. The House Agriculture appropriations subcommittee draft is available at http://appropriations.house.gov/

uploadedfiles/bills-114hr-sc-ap-fy2017-agriculture-subcommitteedraft.pdf.

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Agriculture and Related Agencies: FY2017 Appropriations

Figure 2. Timeline of Action on Agriculture Appropriations, FY1997-FY2017

Source: CRS.

Administration’s Budget Request

FY2017 Budget Request

The Obama Administration released its FY2017 budget request on February 9, 2016.10 At the

same time, the U.S. Department of Agriculture (USDA) released its 116-page budget summary11

and multi-volume budget explanatory notes12 with more programmatic details. The FDA also

released a detailed budget justification,13 as did the CFTC.14 From these documents, the

congressional appropriations committees evaluated the request, began considering their bills in

the spring of 2016, and decided how much of the request would be followed.

10

Office of Management and Budget (OMB), FY2017 Budget of the U.S. Government, Appendix, http://www.

whitehouse.gov/omb/budget/Appendix.

11

USDA, FY2017 USDA Budget Summary, http://www.obpa.usda.gov/budsum/fy17budsum.pdf.

12

USDA, 2017 Congressional Justification, http://www.obpa.usda.gov/fy17explan_notes.html.

13

FDA, FY2017 FDA Justification of Estimates for Appropriations Committees, http://www.fda.gov/AboutFDA/

ReportsManualsForms/Reports/BudgetReports.

14

CFTC, FY2017 CFTC President’s Budget, http://www.cftc.gov/reports/presbudget/2017/index.htm.

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FY2018 Budget Request

Before the FY2017 appropriation was finalized, the Trump Administration released an outline of

its FY2018 budget request on March 16, 2017.15 The blueprint for FY2018 did not have the detail

of a regular budget request and primarily conveyed information at the Cabinet level. Nonetheless

it proposed a 21% reduction for USDA, including eliminating funding for some programs.16

The FY2017 explanatory statement addressed the direction indicated in the FY2018 request by

reminding the Administration of Congress’s role in determining future appropriations:

USDA and FDA should be mindful of Congressional authority to determine and set final

funding levels for fiscal year 2018. Therefore, the agencies should not presuppose

program funding outcomes and prematurely initiate action to redirect staffing prior to

knowing final outcomes on fiscal year 2018 program funding. 17

House Action

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

FY2017 appropriations with various USDA agencies, FDA, and CFTC during the spring of 2016.

The House Budget Committee developed a FY2017 budget (H.Con.Res. 125) that would have

provided less overall discretionary spending than allowed for FY2017 by the Bipartisan Budget

Act of 2015 (P.L. 114-74), but the chamber did not adopt that new budget. In the absence of a

new budget or affirmation of the limit in the Bipartisan Budget Act of 2015, the House

Appropriations committee incrementally made “302(b)” allocations18 to the subcommittees to

facilitate markups.19

For Agriculture appropriations, the House Agriculture appropriations subcommittee approved a

draft bill on April 13, 2016, by voice vote, the earliest action on agriculture appropriations in two

decades.20 The full House Appropriations Committee reported the bill on April 19, 2016, by voice

vote (H.R. 5054, H.Rept. 114-531). It adopted several amendments21 by recorded votes.22 The bill

was not considered on the floor, but parts of it were incorporated into the omnibus appropriation.

15

The White House, America First: A Budget Blueprint to Make America Great Again, March 16, 2017.

See CRS Insight IN10675, The President’s FY2018 Budget Outline for the U.S. Department of Agriculture.

17

Congressional Record, May 3, 2017, p. H3328.

18

Budget enforcement for appropriations has both statutory and procedural elements. The statutory elements impose

limits on discretionary spending FY2012-FY2021, and enforcement occurs primarily through sequestration. The

procedural elements are normally associated with the budget resolution, and enforcement occurs through points of

order. The Appropriations Committee in each chamber, as well as each of their subcommittees, receives procedural

limits on the total amount of budget authority (referred to as 302(a) and 302(b) allocations, respectively). See CRS

Report R42388, The Congressional Appropriations Process: An Introduction; and CRS Report R42972, Sequestration

as a Budget Enforcement Process: Frequently Asked Questions.

19

For example, for the limit for Agriculture appropriations, see House Appropriations Committee, “Revised Interim

Suballocation of Budget Allocations for FY2017,” http://appropriations.house.gov/UploadedFiles/

05.17.16_Revised_Suballocation_of_Budget_Allocations_for_FY_2017.pdf.

20

House Agriculture Appropriations Subcommittee, Draft FY2017 Bill, http://appropriations.house.gov/uploadedfiles/

bills-114hr-sc-ap-fy2017-agriculture-subcommitteedraft.pdf.

21

House Appropriations Committee, FY2017 Agriculture Bill—Adopted Amendments, http://appropriations.house.gov/

UploadedFiles/HMTG-114-AP00-20160419-SD004.pdf.

22

House Appropriations Committee, FY2017 Agriculture Bill—Roll Call Votes, at http://appropriations.house.gov/

UploadedFiles/04.19.16_-_Agriculture_-_Full_Committee_Roll_Call_Votes.pdf.

16

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Senate Action

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

FY2017 appropriations request with various USDA agencies and FDA during the spring of 2016.

The Senate Budget Committee did not develop a new budget for FY2017 and chose to follow the

limit for FY2017 that was set in the Bipartisan Budget Act of 2015 (P.L. 114-74). The Senate

Appropriations Committee divided the total discretionary amount for FY2017 into 302(b)

subcommittee allocations on April 18, 2016 (S.Rept. 114-238).

For Agriculture appropriations, the Senate Agriculture appropriations subcommittee approved a

draft bill on May 17, 2016, by voice vote. The full committee reported it on May 19, 2016, by a

vote of 30-0 (S. 2956, S.Rept. 114-259). It adopted a manager’s package and several

amendments.23 The bill was not considered on the floor, but parts of it were incorporated into the

omnibus appropriation.

Continuing Resolution

In the absence of an FY2017 appropriation, the fiscal year started on October 1, 2016, under a CR

that lasted until December 9, 2016 (P.L. 114-223, Division C). A second CR lasts until April 28,

2017 (P.L. 114-254, Division A). A third CR extended until May 5 (P.L. 115-30). The CRs

continued FY2016 funding with a few exceptions explained below.

Summary of FY2017 Appropriations Amounts

The $20.877 billion discretionary total enacted in the FY2017 Agriculture appropriation is

officially $623 million smaller than the FY2016 discretionary appropriation (in terms of the

amount that counts against the budget limit, the “302(b)” subcommittee allocation; see Table 2).

It achieves this primarily by increasing budgetary offsets over the FY2016 level through greater

rescissions of prior appropriations and greater scorekeeping adjustments primarily from “negative

subsidies” from loan programs that charge fees. Consequently, the budget authority provided to

agencies in the major titles of the bill actually increases by $462 million (the top of the shaded

bars in Figure 3).

Mandatory spending carried in the bill—mostly determined in separate authorizing laws—

increases $13.5 billion over FY2016. All of this increase is in farm programs, including a $14.4

billion increase in the reimbursement to the Commodity Credit Corporation for higher than

expected payments for farm commodity revenue support programs (Table 3). This increase is

automatic based on farm bill formulas and does not affect discretionary spending limits.

Table 2 compares House- and Senate-proposed amounts to other years by title.

Figure 3 illustrates changes in discretionary spending by title over 10 years.

Table 3 compares amounts at the agency level, the basis for the rest of the report.

Appendix A offers a 20-year historical perspective on trends from FY1996 to

FY2016.

23

Senate Appropriations Committee, Markup of the FY2017 Agriculture Appropriations Bill, http://www.appro

priations.senate.gov/hearings/markup-of-the-fy17-agriculture-appropriations-bill-and-the-fy17-legislative-branchappropriations-bill.

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Agriculture and Related Agencies: FY2017 Appropriations

Table 2. Agriculture and Related Agencies Appropriations by Title, FY2016-FY2017

(budget authority in millions of dollars)

FY2016

FY2017

P.L. 114113

Admin.

Request

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 11531

7,020.3

7,091.1

7,015.7

7,069.7

7,107.7

+87.4

+1.2%

Mandatory (M)a

16,032.6

23,638.4

23,638.4

23,648.4

31,280.2

+15,247.6

+95.1%

Subtotal

23,052.9

30,729.5

30,654.1

30,718.2

38,387.9

+15,335.0

+66.5%

863.8

861.3

868.2

1,015.4

1,027.4

+163.6

+18.9%

III. Rural Development

2,950.0

3,015.9

3,036.4

3,001.7

3,069.2

+119.2

+4.0%

IV. Domestic Food Programs: Discretionary

6,838.9

6,932.4

6,880.5

6,890.3

6,884.7

+45.8

+0.7%

Mandatory (M)

102,958.1

104,830.9

102,803.0

102,830.9

101,226.7

-1,731.5

-1.7%

Subtotal

109,797.0

111,763.3

109,683.4

109,721.1

108,111.3

-1,685.6

-1.5%

V. Foreign Assistance

1,868.5b

1,752.3

1,870.9

2,006.9

1,872.9b

+4.4

+0.2%

VI. Food and Drug Administration

2,729.6

2,742.7

2,765.6

2,771.8

2,771.2

+41.6

+1.5%

250.0

330.0

250.0

[250.0]c

[250.0]

+0.0

+0.0

VII. General Provisions: CHIMPSd and

rescissions

-865.0

-645.7

-914.7

-998.2

-1,597.0

-732.0

+84.6%

Disaster/emergency programs

273.0

0.0

5.0

0.0

234.8e

-38.2

-14.0%

Other appropriations

283.1b

0.0

45.5

16.6

237.4b

-45.7

-16.1%

Scorekeeping adjustmentsf

-332.0

-524.0

-524.0

-524.0

-525.0

-193.0

+58.1%

Subtract disaster declaration in this bill

-130.0

—

—

—

-206.1e

-76.1

+58.6%

Discretionary: Senate basis w/o CFTC

[21,500.0]

21,225.9

[21,049.0]

21,250.0

20,877.0

-623.0

-2.9%

Discretionary: House basis w/ CFTC

21,750.0

21,555.9

21,299.0

[21,500.0]

[21,127.0]

-623.0

-2.9%

Mandatory (M)

118,990.7

128,469.3

126,441.4

126,479.3

132,506.9

+13,516.2

+11.4%

Total: Senate basis w/o CFTC

140,490.7

149,695.3

147,490.4

147,729.3

153,383.9

+12,893.2

+9.2%

Title of Agriculture Appropriations Act

I. Agricultural Programs: Discretionary

II. Conservation Programs

Commodity Futures Trading Commission

Change: FY2016 to

FY2017 Enacted

Totals

Source: CRS, using appropriations text and reports, and Congressional Budget Office (CBO) tables.

Notes: Amounts are nominal budget authority in millions of dollars. Discretionary authority unless labeled

otherwise. Bracketed amounts are not in the official totals due to differing House-Senate jurisdiction for CFTC.

a. Includes some mandatory funding from other titles, particularly mandatory conservation programs.

b. In addition to the regular appropriations for Food for Peace Title II grants in Title V ($1.466 billion), extra

appropriations were made under General Provisions in FY2016 ($250 million) and FY2017 ($134 million).

The effective total for Food for Peace Title II grants is $1.716 billion in FY2016 and $1.600 billion in FY2017.

c. See the Senate-reported Financial Services appropriation, S. 3067.

d. Changes in Mandatory Program Spending (CHIMPS) are reductions made to mandatory programs.

e. Includes $206 million appropriated for the Emergency Conservation Program (ECP) and Emergency

Watershed Program (EWP) in the second CR (P.L. 114-254, Section 185) that were offset as emergency

spending. Another $29 million for ECP was included in the final appropriation (Section 753).

f.

“Scorekeeping adjustments” are not necessarily appropriated items and may not always be shown but are

part of the official CBO score (accounting) of the bill. They predominantly include “negative subsidies” in

loan program accounts and adjustments for disaster designations in the bill.

Congressional Research Service

7

Agriculture and Related Agencies: FY2017 Appropriations

Key Budget Terms

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

the legal basis to obligate funds. It expires at the end of the period and is usually available for one year unless specified

otherwise (e.g., two years, or indefinite). 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 are delivered, or

construction is 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 budgetary

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.

Comparison of Amounts in the FY2017 Appropriation

The budget authority provided to agencies in the major titles of the bill increases by $462 million

(the top of the shaded bars in Figure 3), even though the official total decreases by $623 million

compared with the FY2016 discretionary appropriation. This is achieved primarily by increasing

budgetary offsets through greater rescissions and greater scorekeeping adjustments.

Discretionary budget changes that are over $10 million within agencies include the following,

relative to FY2016 (Table 3):

Conservation programs. +$163 million, mostly for $150 million of watershed

and flood prevention programs that have not been funded since FY2010.

Rural development. +$119 million, mostly for rural water and wastewater

programs (+$49 million), rural broadband (+$24 million), and rural housing

rental assistance (+$15 million).

Food and Nutrition Service. +$65 million, mostly for commodity assistance

(+$19 million) and nutrition programs administration (+$20 million) in the

regular nutrition title and a $19 million supplemental in the general provisions for

commodity assistance. Offset by an $850 million rescission in WIC because of

lower prior-year participation than expected.

Animal and Plant Health Inspection Service. +$52 million, primarily for

increases in emergency preparedness.

Food and Drug Administration. +$42 million, including $36 million more for

food safety activities.

Farm Service Agency. +$29 million, including $23 million more to support a

25% increase in farm loan program authority.

USDA administration. +$20 million to modernize headquarters facilities.

Food Safety Inspection Service. +$17 million for inspection improvements.

Food for Peace grants. -$116 million from less supplemental funding ($134

million) to augment constant base funding of $1.466 billion.

Congressional Research Service

8

Agriculture and Related Agencies: FY2017 Appropriations

Disaster assistance. -$114 million, comprised from $38 million less

appropriated for programs than in FY2016 ($206 million in the second CR plus

$28 million in the omnibus appropriation) and $76 million more in disaster

designation offsets that do not count against budget caps.

Agricultural research agencies. -$46 million, comprised primarily of $25

million more for Agriculture and Food Research Initiative (AFRI) grants, and

$26 million more for Agricultural Research Service (ARS) operations, offset by

$112 million less for ARS buildings and facilities.

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 and is triggered when spending would

exceed statutory budget goals. Sequestration is authorized in the Budget Control Act of 2011

(BCA; P.L. 112-25) for discretionary spending through FY2021 and for mandatory spending

through FY2025.24

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—and the Bipartisan

Budget Act of 2015 (P.L. 114-74) did it again for FY2016 and FY2017—they do not prevent or

reduce sequestration on mandatory accounts that arose from the BCA.

Thus, sequestration on non-exempt mandatory accounts continues in FY2017. Appendix B

provides more detail about sequestration at the individual account level.

24

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

Congressional Research Service

9

Table 3. Agriculture and Related Agencies Appropriations, by Agency, FY2014-FY2017

(budget authority in millions of dollars)

FY2014

FY2015

FY2016

P.L. 11376

P.L. 113235

P.L. 114113

Admin.

Request

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 11531

526.1

364.5

373.2

448.7

392.4

403.5

403.9

+30.8

+8.2%

Agricultural Research Service

1,122.5

1,177.6

1,355.9

1,255.8

1,251.4

1,242.2

1,269.8

-86.1

-6.3%

National Institute of Food and Agriculture

1,277.1

1,289.5

1,326.5

1,374.0

1,341.2

1,363.7

1,362.9

+36.4

+2.7%

National Agricultural Statistics Service

161.2

172.4

168.4

176.6

168.4

169.6

171.2

+2.8

+1.7%

Economic Research Service

78.1

85.4

85.4

91.3

86.0

86.8

86.8

+1.4

+1.6%

Under Secretary, Research, Education, Econ.

0.9

0.9

0.9

0.9

0.9

0.9

0.9

+0.0

+0.0%

Animal and Plant Health Inspection Service

824.9

874.5

897.6

904.4

934.0

942.5

949.4

+51.8

+5.8%

Agricultural Marketing Service

81.3

82.4

82.5

83.2

83.5

84.2

86.2

+3.7

+4.5%

1,107.0

1,284.0

1,303.0

1,322.0

1,322.0

1,322.0

1,322.0

+19.0

+1.5%

Grain Inspection, Packers, Stockyards Admin.

40.3

43.0

43.1

43.5

43.1

43.5

43.5

+0.4

+1.0%

Under Secretary, Marketing and Regulatory

0.9

0.9

0.9

0.9

0.9

0.9

0.9

+0.0

+0.9%

1,010.7

1,016.5

1,014.9

1,030.4

1,030.4

1,033.8

1,032.1

+17.2

+1.7%

0.8

0.8

0.8

0.8

0.8

0.8

0.8

+0.0

+0.4%

Agency or Major Program

FY2017

Change: FY2016 to

FY2017 Enacted

Title I. Agricultural Programs

Departmental Administration

Research, Education and Economics

Marketing and Regulatory Programs

Section 32 (M)

Food Safety

Food Safety and Inspection Service

Under Secretary, Food Safety

Farm and Commodity Programs

Farm Service Agencya

1,592.2

1,603.3

1,595.1

1,613.6

1,607.5

1,621.2

1,624.0

+29.0

+1.8%

FSA Farm Loans: Loan Authorityb

5,527.3

6,402.1

6,402.1

6,655.1

6,667.1

6,655.1

8,002.6

+1,600.5

+25.0%

Risk Management Agency Salaries and Exp.

71.5

74.8

74.8

66.6

74.8

75.8

74.8

+0.0

+0.0%

CRS-10

FY2014

FY2015

FY2016

P.L. 11376

P.L. 113235

P.L. 114113

Admin.

Request

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 11531

Federal Crop Insurance Corporation (M)

9,502.9

8,930.5

7,858.0

8,839.1

8,839.1

8,849.1

8,667.0

+809.0

+10.3%

Commodity Credit Corporation (M)

12,538.9

13,444.7

6,871.1

13,476.9

13,476.9

13,476.9

21,290.7

+14,419.6

+209.9%

0.9

0.9

0.9

0.9

0.9

0.9

0.9

+0.0

+0.3%

Subtotal: Discretionary

6,789.0

6,786.9

7,020.3

7,091.1

7,015.7

7,069.7

7,107.7

+87.4

+1.2%

Mandatory (M)

23,149.1

23,659.7

16,032.6

23,638.4

23,638.4

23,648.4

31,280.2

+15,247.6

+95.1%

Subtotal

29,938.1

30,446.6

23,052.9

30,729.5

30,654.1

30,718.2

38,387.9

+15,335.0

+66.5%

812.9

846.4

850.9

860.4

855.3

864.5

864.5

+13.6

+1.6%

Watershed and Flood Prevention

—

—

—

—

—

150.0

150.0

+150.0

—

Watershed Rehabilitation Program

12.0

12.0

12.0

—

12.0

—

12.0

+0.0

+0.0%

Under Secretary, Natural Resources

0.9

0.9

0.9

0.9

0.9

0.9

0.9

+0.0

+0.3%

825.8

859.3

863.8

861.3

868.2

1,015.4

1,027.4

+163.6

+18.9%

657.4

678.2

682.9

698.5

672.8

683.3

675.8

-7.0

-1.0%

1,279.6

1,298.4

1,616.4

1,616.9

1,653.5

1,639.4

1,654.9

+38.4

+2.4%

27,408.1

27,421.5

27,496.8

27,433.2

27,653.4

27,596.4

28,083.4

+586.6

+2.1%

130.2

103.2

90.5

149.5

110.4

92.0

97.7

+7.2

+8.0%

1,022.8

984.5

979.3

1,116.0

998.7

979.3

988.4

+9.1

+0.9%

501.6

501.7

559.3

550.1

598.8

586.0

639.9

+80.5

+14.4%

7,514.5

7,464.1

8,210.6

7,993.8

8,210.0

8,217.0

8,217.0

+6.5

+0.1%

0.9

0.9

0.9

0.9

0.9

0.9

0.9

+0.0

+0.3%

2,569.7

2,582.4

2,950.0

3,015.9

3,036.4

3,001.7

3,069.2

+119.2

+4.0%

35,945.4

35,870.1

36,686.7

36,543.0

36,862.1

36,792.7

37,288.9

+602.2

+1.6%

Agency or Major Program

Under Secretary, Farm and Foreign Agr.

FY2017

Change: FY2016 to

FY2017 Enacted

Title II. Conservation Programs

Conservation Operations

Subtotal

Title III. Rural Development

Salaries and Expenses (including transfers)c

Rural Housing Service

RHS Loan Authorityb

Rural Business-Cooperative Serviced

RBCS Loan Authorityb

Rural Utilities Service

RUS Loan Authorityb

Under Secretary, Rural Development

Subtotal, Discretionary

Subtotal, RD Loan Authorityb

CRS-11

FY2014

FY2015

FY2016

P.L. 11376

P.L. 113235

P.L. 114113

Admin.

Request

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 11531

Child Nutrition Programs (M)

19,288.0

21,300.2

22,149.7

23,230.7

23,175.7

23,201.7

22,794.0

+644.2

+2.9%

WIC Program

6,715.8

6,623.0

6,350.0

6,350.0

6,350.0

6,350.0

6,350.0

+0.0

+0.0%

SNAP, Food and Nutrition Act Programs (M)

82,169.9

81,837.6

80,849.4

81,689.2

79,673.3

79,682.2

78,480.7

-2,368.7

-2.9%

Commodity Assistance Programs

269.7

278.5

296.2

313.1

315.1

313.1

315.1

+18.9

+6.4%

Nutrition Programs Administration

141.3

150.8

150.8

179.4

168.5

173.3

170.7

+19.9

+13.2%

0.8

0.8

0.8

0.8

0.8

0.8

0.8

+0.0

+0.4%

7,152.7

7,094.1

6,838.9

6,932.4

6,880.5

6,890.3

6,884.7

+45.8

+0.7%

Mandatory (M)

101,432.9

103,096.7

102,958.1

104,830.9

102,803.0

102,830.9

101,226.7

-1,731.5

-1.7%

Subtotal

108,585.6

110,190.9

109,797.0

111,763.3

109,683.4

109,721.1

108,111.3

-1,685.6

-1.5%

177.9

181.4

191.6

196.6

194.6

196.6

196.6

+5.0

+2.6%

1,468.7

1,468.5

1,468.5e

1,350.1

1,466.1

1,600.1

1,466.1e

-2.4

-0.2%

Local and regional food procurement

—

—

—

15.0

—

—

—

—

—

McGovern-Dole Food for Education

185.1

191.6

201.6

182.0

201.6

201.6

201.6

+0.0

+0.0%

6.7

6.7

6.7

8.5

8.5

8.5

8.5

+1.8

+26.5%

1,838.5

1,848.3

1,868.5e

1,752.3

1,870.9

2,006.9

1,872.9

+4.4

+0.2%

2,560.7

2,597.3

2,729.6

2,742.7

2,765.6

2,771.8

2,771.2

+41.6

+1.5%

215.0

[250.0]

250.0

330.0

250.0

[250.0]f

[250.0]

+0.0%

+0.0%

2,775.7

2,597.3

2,979.6

3,072.7

3,015.6

[3,021.8]

[3,021.2]

+41.6

+1.4%

Agency or Major Program

FY2017

Change: FY2016 to

FY2017 Enacted

Title IV. Domestic Food Programs

Under Sec., Food, Nutrition and Consumer

Subtotal

Discretionary

Title V. Foreign Assistance

Foreign Agricultural Service

Food for Peace Title II, and admin. expenses

CCC Export Loan Salaries

Subtotal

Title VI. Related Agencies

Food and Drug Administration

Commodity Futures Trading Commissionf

Subtotal

CRS-12

FY2014

FY2015

FY2016

P.L. 11376

P.L. 113235

P.L. 114113

Admin.

Request

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 11531

a. Environmental Quality Incentives Program

-272.0

-136.0

-209.0

—

-209.0

-189.0

-179.0

+30.0

-14.4%

b. Watershed Rehabilitation Program

-153.0

-69.0

-68.0

-54.0

-54.0

-63.0

-54.0

+14.0

-20.6%

c. Conservation Stewardship Program

—

-7.0

—

—

-5.0

—

—

+0.0

+0.0%

d. Fresh Fruit and Vegetable Program

-119.0

-122.0

-125.0

-125.0

-125.0

-125.0

-125.0

+0.0

+0.0%

e. Biorefinery Assistance Program

-40.7

-16.0

-19.0

—

-30.0

—

-20.0

-1.0

+5.3%

f. Biomass Crop Assistance Program

—

-2.0

-20.0

—

-20.0

-20.0

-20.0

+0.0

+0.0%

g. The Emergency Food Assistance Program

—

—

—

—

+19.0

—

+19.0

+19.0

—

h. Cushion of Credit (Rural Development)

-172.0

-179.0

-179.0

-151.5

-151.5

-165.0

-132.0

+47.0

-26.3%

i. Section 32

-189.0

-121.0

-216.0

-311.0

-231.0

-237.0

-231.0

-15.0

+6.9%

-8.0

-133.0

+5.0

+0.0

-4.0

+5.0

-1.0

-6.0

-120.0%

Subtotal, CHIMPS

-953.7

-785.0

-831.0

-641.5

-810.5

-794.0

-743.0

+88.0

-10.6%

Rescissions (discretionary)

-33.3

-17.0

-34.0

-4.2

-104.2

-204.2

-854.0

-820.0

—

—

116.0

273.0

—

5.0

—

234.8h

-38.2

-14.0%

—

45.5

16.6

237.4e

-45.7

-16.1%

Agency or Major Program

FY2017

Change: FY2016 to

FY2017 Enacted

Title VII. General Provisions

Reductions in Mandatory Programsg

j. Other CHIMPS and rescissions

Other appropriations

a. Disaster/emergency programs

b. Other appropriations

106.6

6.6

283.1e

Subtotal, Other appropriations

106.6

122.6

556.1

—

50.5

16.6

472.2

-83.9

-15.1%

-880.4

-679.4

-308.9

-645.7

-864.2

-981.6

-1,124.8

-815.9

—

—

-116.0

-130.0

—

—

—

-206.1h

-76.1

+58.6%

Other scorekeeping adjustments

-191.0

-398.0

-332.0

-524.0

-524.0

-524.0

-525.0

-193.0

+58.1%

Subtotal, Scorekeeping adjustments

-191.0

-514.0

-462.0

-524.0

-524.0

-524.0

-731.1

-269.1

+58.3%

Total, General Provisions

Scorekeeping Adjustmentsi

Disaster declaration in this bill

CRS-13

FY2014

FY2015

FY2016

P.L. 11376

P.L. 113235

P.L. 114113

Admin.

Request

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 11531

Discretionary: Senate basis w/o CFTC

[20,665.0]

20,575.0

[21,500.0]

21,225.9

[21,049.0]

21,250.0

20,877.0

-623.0

-2.9%

Discretionary: House basis w/ CFTC

20,880.0

[20,825.0]

21,750.0

21,555.9

21,299.0

[21,500.0]f

[21,127.0]

-623.0

-2.9%

Mandatory (M)

124,582.0

126,756.5

118,990.7

128,469.3

126,441.4

126,479.3

132,506.9

+13,516.2

+11.4%

Total: Senate basis w/o CFTC

145,247.0

147,331.5

140,490.7

149,695.3

147,490.4

147,729.3

153,383.9

+12,893.2

+9.2%

Agency or Major Program

FY2017

Change: FY2016 to

FY2017 Enacted

Totals

Source: CRS, using referenced appropriations text and report tables, and unpublished Congressional Budget Office (CBO) tables.

Notes: Amounts are nominal budget authority in millions of dollars. Amounts are discretionary authority unless labeled otherwise; (M) indicates that the account is

mandatory authority (or primarily mandatory authority). Bracketed amounts are not in the official totals due to differing House-Senate jurisdiction for CFTC but are

shown for comparison.

a. Includes regular FSA salaries and expenses plus transfers for farm loan program salaries and 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 appropriations to the

Foreign Agricultural Service for export loans and P.L. 480 administration that are transferred to FSA.

b. 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.

c. Includes Rural Development salaries and expenses and transfers from the three rural development agencies for salaries and expenses. Amounts for the agencies thus

reflect program funds for loans and grants.

d. Amounts for the Rural Business-Cooperative Service (RBCS) are before the rescission in the Cushion of Credit account, unlike in Appropriations committee tables.

The rescission is included with the changes in mandatory program spending (CHIMPS) as classified by CBO, which allows the RBCS subtotal to remain positive.

e. In addition to the regular appropriations for Food for Peace Title II grants in Title V ($1.466 billion), extra appropriations were made under General Provisions in

FY2016 ($250 million) and FY2017 ($134 million). The effective total for Food for Peace Title II grants is $1.716 billion in FY2016 and $1.600 billion in FY2017.

f.

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.

Bracketed amounts are not in the official totals due to differing House-Senate jurisdiction for CFTC but are shown for comparison. For the FY2017 Senate amount,

see the Senate-reported Financial Services appropriation, S. 3067.

g. Includes reductions (limitations and rescissions) to mandatory programs that may also be known as CHIMPS.

h. Includes $206 million appropriated for the Emergency Conservation Program (ECP) and Emergency Watershed Program (EWP) in the second continuing resolution

(P.L. 114-254, Section 185) that were offset as emergency spending. Another $29 million for ECP was included in the final appropriation (Section 753).

i.

“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 predominantly include “negative subsidies” in loan program accounts and adjustments for disaster designations in the bill.

CRS-14

Agriculture and Related Agencies: FY2017 Appropriations

Continuing Resolutions

In the absence of an FY2017 appropriation before the beginning of the fiscal year on October 1,

2016, Congress passed three CRs that lasted for seven months of the fiscal year. In general, a CR

continues the funding rate and other provisions of the previous year’s appropriation. However, the

Office of Management and Budget (OMB) prorates funding to the agencies on an annualized

basis for the duration of the CR through a process known as apportionment.25 CRs may also

provide a different amount through anomalies or make specific administrative changes.

First Continuing Resolution

The first continuing resolution for FY2017 (Division C of P.L. 114-223) lasted until December 9,

2016.26 It continued FY2016 funding levels and provisions with the following exceptions:

Not continuing FY2016 supplemental funding for land rehabilitation programs

(Section 101(a)(1)).27

A 0.496% across-the-board reduction (Section 101(b)).

Sufficient funding to maintain mandatory program levels, including for nutrition

programs (Section 111).

Four other anomalies affected the agriculture portion individually:

An increase of about $14 million for the Commodity Supplemental Food

Program, a domestic food assistance program that predominantly serves the lowincome elderly. Rather than the $222 million FY2016 funding level, the CR

provides about $236 million. This anomaly is typically included to maintain

current caseload and participation with increased food costs (Section 117).

An earlier than normal transfer to the Commodity Credit Corporation (CCC). The

CR allows CCC to receive its estimated $13 billion appropriation about a month

earlier than usual to avoid running out of money. Most farm bill payments to

farmers were due in October; without the anomaly, CCC may have exhausted its

$30 billion credit line at the Treasury (Section 118).

A higher than normal rate of apportionment for the Rural Housing Rental

Assistance Program. About 40% of rental assistance contract renewal costs occur

in the first few months of the fiscal year, requiring a higher rate of spending in

the first quarter (Section 119).

An extension of theFDA’s Rare Pediatric Disease Priority Review Voucher

Program. After the CR was enacted, the Advancing Hope Act (P.L. 114-229)

further extended the program until December 31, 2016, and made other changes

to the voucher program (Section 120).

25

For example, if a CR lasts for three months, OMB may apportion 3/12 of the previous fiscal year amount during the

CR. Specifically, for the first CR, see OMB Bulletin 16-01, “Apportionment of the Continuing Resolution(s) for Fiscal

Year 2017,” September 29, 2016, https://www.whitehouse.gov/sites/default/files/omb/bulletins/2016/16-01.pdf.

26

See CRS Report R44653, Overview of Continuing Appropriations for FY2017 (H.R. 5325).

27

Section 728 of the FY2016 Agriculture appropriation (P.L. 114-113, Division A).

Congressional Research Service

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Agriculture and Related Agencies: FY2017 Appropriations

Second Continuing Resolution

In the absence of completing the FY2017 appropriation after the 2016 elections, a second CR was

enacted that lasted until April 28, 2017 (P.L. 114-254, Division A).28 This CR extends the

provisions and anomalies of the first CR, changes the across-the-board reduction rate, and adds

several new anomalies for the agriculture portion:

A lower across-the-board reduction of 0.1901% (Section 101(2)).

Flexible apportionment for the Farm Loan Program so that it can fund all loans

that are approved. USDA direct and guaranteed farm loans may face higher than

normal demand because of low farm income and since the CR extends into the

spring planting season. The anomaly does not increase funding but potentially

makes available the entire FY2016 amount during the CR (Section 146).

Flexible apportionment for Summer Electronic Benefits Transfer (EBT)

demonstration projects so that the program can fully operate by May 2017. These

projects, an alternative to the Summer Food Service Program that has operated in

select states since FY2011, provide EBT benefits over the summer months to

low-income households with school-age children29 (Section 147).

Funding for the National Hunger Clearinghouse. Since FY2010, the Richard B.

Russell National School Lunch Act has provided $250,000 annually in

mandatory funding. The clearinghouse funding was extended in FY2016

appropriations (P.L. 114-113) and then expired September 30, 2016. Since that

time, the USDA-FNS had been funding the clearinghouse using carryover

balances (Section 148).

Transfer authority within the Rural Utilities Service (RUS) to support increased

subsidy costs of Treasury direct telecommunication loans. The FY2016 subsidy

rate of 0.03% will increase to 0.89% in FY 2017. By permitting a transfer of

budget authority from RUS programs with lower subsidy costs, the CR will allow

for support of the Treasury direct loan level as needed (Section 149).

Flexible apportionment for the Guaranteed Multi-Family Housing Loan Program

at a higher rate than would normally be permitted to fund approved loans. This

program offers loan guarantees for the development of affordable rental housing

for low- and moderate-income families in rural areas (Section 150).

Emergency funding for two USDA land rehabilitation programs––the Emergency

Conservation Program (ECP, $103 million) and the Emergency Watershed

Protection Program (EWP, $103 million). This funding is not directed to a

specific disaster or region, nor is it subject to discretionary budget caps. For more

information, see “Disaster Assistance” later in this report (Section 185).

New funding for the FDA Innovation Account ($20 million for FY2017) that was

established by the 21st Century Cures Act (P.L. 114-255). The Innovation

Account funds agency activities such as changing FDA drug and device approval

pathways (Section 193).30

28

See CRS Report R44723, Overview of Further Continuing Appropriations for FY2017 (H.R. 2028).

See CRS Report R43783, School Meals Programs and Other USDA Child Nutrition Programs: A Primer.

30

See CRS Report R44071, H.R. 6: The 21st Century Cures Act. See also CRS Report R44502, Senate Medical

Innovation Bills: Overview and Comparison with the 21st Century Cures Act (H.R. 6).

29

Congressional Research Service

16

Agriculture and Related Agencies: FY2017 Appropriations

Policy Issues

In addition to setting budgetary amounts, the Agriculture appropriations bill is also a vehicle for

policy-related provisions that direct how the executive branch should carry out the appropriation.

These provisions may have the force of law if they are included in the text of the appropriation,

usually in the General Provisions, but their effect is generally limited to the current fiscal year.

The explanatory statement that accompanies the appropriation, and the House and Senate report

language that accompanies the committee-reported bills, may also provide policy instructions.

These documents do not have the force of law but often explain congressional intent and are

expected to be followed by the agencies. Indeed, the committee reports and explanatory statement

may need to be read together to capture all of the congressional intent for the fiscal year:

Congressional Directives. The explanatory statement is silent on provisions that were in

both the House Report (H. Rpt. 114-531) and Senate Report (S. Rpt. 114-259) that

remain unchanged by this agreement, except as noted in this explanatory statement.... The

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.31

The list below describes some of the major policy issues. These and other policy-related issues

are discussed in greater detail in relevant sections later in this report.

GIPSA rule. The enacted appropriation does not include language that would

prohibit the Grain Inspection, Packers, and Stockyards Administration (GIPSA)

from finalizing and implementing a livestock and poultry marketing rule—the

“GIPSA rule,” as was proposed in the House bill.

Horse slaughter. The Food Safety Inspection Service (FSIS) is responsible for

horse slaughter inspection if the meat is for human consumption. The FY2017

appropriation prohibits FSIS from inspecting horse slaughter facilities.

Poultry imports from China. The FY2017 appropriation prohibits the purchase

of processed (cooked) poultry meat imported from China for use in various

domestic feeding programs.

SNAP-authorized retailers. The enacted appropriation limits the scope of rules

for the 2014 farm bill’s changes to inventory requirements for SNAP-authorized

retailers.

SNAP households reporting requirements. The enacted appropriation requires

SNAP households to report to the state agency a move out of the state beginning

in FY2017 and each year thereafter.

School meals nutrition standards. The enacted appropriation requires USDA to

provide hardship exemptions from a 100% whole grain requirement and prevent

USDA from implementing a sodium requirement without scientific evidence.

31

Explanatory Statement regarding the Consolidated Appropriations Act, Congressional Record, May 3, 2017, p.

H3327.

Congressional Research Service

17

Agriculture and Related Agencies: FY2017 Appropriations

Recent Trends in Agriculture Appropriations

Over the past 10 years, changes by title of the Agriculture appropriations bill have generally been

proportionate to changes in the bill’s total discretionary limit, though some activities have

sustained relative increases and decreases. Agriculture appropriations peaked in FY2010 and

declined through FY2013. Since then, total Agriculture appropriations have increased (Figure 3).

However, whether that increase returns the appropriation to various historical benchmarks

depends upon inflation adjustments and other factors.

The stacked bars in Figure 3 represent the discretionary spending authorized for each title in the

10 years since FY2007. The total of the positive stacked bars is the budget authority contained in

Titles I-VI. It is higher than the official 302(b) discretionary spending limit (the line) because of

the budgetary offset from negative amounts in Title VII General Provisions and other

scorekeeping adjustments. General Provisions are negative mostly because of limits placed on

mandatory programs, which are scored as savings (Table 3, Table 15).

For example, in the FY2017 appropriation, budget authority for the primary agencies in the bill

(Titles I-VI) increased $462 million (the top of the stacked bars in Figure 3) even though the

official discretionary spending allocation decreased $623 million (the line in Figure 3).

Increases in the use of CHIMPS and other tools to offset discretionary appropriations ameliorated

reductions in discretionary budget authority in FY2011 and succeeding years. For example, the

official 302(b) discretionary total for the bill was given credit for declining 13.6% in FY2011,

while the total of Titles I-VI declined only 6.4% that year (Figure 3). The effect is less

pronounced in FY2016, since the offset was smaller, in part because of additional spending in

General Provisions for foreign food aid and emergency programs.

Some areas have sustained real increases, while others have declined (apart from the peak in

2010). Agencies with sustained real increases (that is, inflation-adjusted; Figure 4) since FY2007

include FDA and CFTC (Related Agencies) and, to a lesser extent, foreign food assistance. Areas

with real decreases in discretionary spending since 2007 include general agricultural programs

and domestic nutrition programs. Rural development and conservation also had a real decrease

over the same period, though FY2016 reversed that trend for rural development, and FY2017

reversed it for conservation.

Appendix A offers a 20-year historical perspective on other trends from FY1998 to FY2017,

such as mandatory versus discretionary, nutrition versus the rest of the bill, and comparisons

against other economic factors such as the share of the federal budget, GDP, and population.

Congressional Research Service

18

Agriculture and Related Agencies: FY2017 Appropriations

Figure 3. Discretionary Agriculture Appropriations, by Title, Since FY2007

Source: CRS. Includes CFTC in Related Agencies regardless of jurisdiction, except as noted for FY2017.

Figure 4. Inflation-Adjusted Discretionary Agriculture Appropriations Since FY2007

Source: CRS. Includes CFTC in Related Agencies regardless of jurisdiction, except as noted for FY2017.

Notes: Budget authority adjusted for inflation by CRS using the gross domestic product price deflator.

Congressional Research Service

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Agriculture and Related Agencies: FY2017 Appropriations

USDA Agencies and Programs

USDA was created in 1862 and carries out a range of activities through about 17 agencies and a

dozen administrative offices staffed by nearly 100,000 employees.32 About 95% of its funding is

in the Agriculture appropriation, covering about two-thirds of those employees. The remainder is

the Forest Service and is funded by the Interior and Related Agencies Appropriations bill.33

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

Organization of USDA Is Different Than the Appropriations Bill

Agriculture appropriations are not perfectly correlated with USDA spending. Agriculture appropriations include

the FDA and CFTC (which are outside USDA) and do not fund the Forest Service (which is part of USDA).

Similarly, USDA spending is broader than farm program spending.

USDA divides its activities into mission areas that are different from titles in the appropriation:

Food and nutrition programs are the largest mission area (three-fourths of the budget) and are Title IV in the

bill.

Farm and Foreign Agricultural Services are the second-largest mission area (one-eighth of the budget) and are

split between Title I of the appropriation (for the domestic side) and Title V (for foreign trade and food aid).

Five other mission areas share one-eighth of USDA’s budget, including natural resources (Title II), rural

development (Title III), research (Title I), marketing and regulatory programs (Title I), and food safety (Title I).

The type of funding (mandatory or discretionary) is also an important difference between how the appropriations

bill and USDA’s mission areas are organized:

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 carried within the

CCC amount in Title I.

Departmental Administration34

The Agriculture appropriations bill contains several accounts for the general administration of the

USDA, ranging from the immediate Office of the Secretary to the Office of Inspector General.

For FY2017, the enacted appropriation keeps the amount for most accounts in departmental

administration constant compared to the enacted FY2016 appropriation, with a few notable

exceptions. Overall, the FY2017 appropriation increases departmental administration by $30.8

million (+8.2%) over FY2016 (Table 4).

The FY2017 appropriation increases the buildings and facilities account by the USDA-requested

$20 million (+31%), largely to pay for long-planned renovations to the South Building in the

USDA headquarters complex. It increases the amounts for the Chief Information Officer (+$5

million) and Chief Financial Officer (+$2 million) to increase cybersecurity and meet new digital

accountability standards. The Office of Inspector General receives an increase of $2.5 million,

including $1.1 million for additional oversight of the department’s information technology

upgrades. And it increases the amount for the Office of the Chief Economist by $1.1 million to

acquire data and support to prepare for the 2018 farm bill.

32

USDA, FY2017 USDA Budget Summary, http://www.obpa.usda.gov/budsum/fy17budsum.pdf.

See CRS Report R44470, Interior, Environment, and Related Agencies: FY2017 Appropriations.

34

This section was written by (name redacted)

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

).

33

Congressional Research Service

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Table 4. USDA Departmental Administration Appropriations

(budget authority in millions of dollars)

FY2014

FY2015

FY2016

P.L. 113-76

P.L. 113235

P.L. 114113

Office of the Secretary

5.05

5.05

5.05

Office of Tribal Relations

0.50

0.50

Office of Homeland Security

1.50

Advocacy and Outreach

FY2017

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 11531

10.18

5.05

10.18

5.05

+0.0

+0.0%

0.50

0.76

0.50

0.51

0.50

+0.0

+0.0%

1.50

1.50

1.59

1.50

1.59

1.50

+0.0

+0.0%

1.21

1.21

1.21

11.22

1.21

4.22

1.21

+0.0

+0.0%

Assistant Secretary for Administration

0.80

0.80

0.80

0.81

0.80

0.81

0.80

+0.0

+0.0%

Departmental Administration

22.79

25.12

25.12

27.42

24.12

25.40

24.12

-1.0

-4.0%

Asst. Sec. Congressional Relations

3.87

3.87

3.87

3.92

3.87

3.92

3.87

+0.0

+0.0%

Office of Communications

8.07

7.75

7.50

8.51

7.50

7.53

7.50

+0.0

+0.0%

43.78

45.81

45.56

64.40

44.56

54.15

44.56

-1.0

-2.2%

Office of Chief Economist

16.78

17.38

17.78

17.59

16.78

16.92

18.92

+1.1

+6.4%

National Appeals Division

12.84

13.32

13.32

13.48

13.32

13.48

13.40

+0.1

+0.6%

Office of Budget and Program Analysis

9.06

9.39

9.39

9.53

9.39

9.53

9.53

+0.1

+1.4%

38.68

40.09

40.49

40.60

39.49

39.92

41.84

+1.4

+3.3%

Chief Information Officer

44.03

45.05

44.54

65.72

44.54

49.92

49.54

+5.0

+11.2%

Chief Financial Officer

6.21

6.03

6.03

9.12

6.03

8.12

8.03

+2.0

+33.2%

Assistant Secretary for Civil Rights

0.89

0.90

0.90

0.90

0.90

0.90

0.90

+0.0

+0.3%

Office of Civil Rights

21.40

24.07

24.07

24.75

24.07

24.34

24.21

+0.1

+0.6%

Buildings and facilities a

233.00

55.87

64.19

84.37

84.19

74.37

84.19

+20.0

+31.2%

Agency or Major Program

Admin.

Request

Change: FY2016 to

FY2017 Enacted

Office of the Secretary

Subtotal

Executive Operations

Subtotal

Other Administration

CRS-21

FY2014

FY2015

FY2016

Agency or Major Program

P.L. 113-76

P.L. 113235

P.L. 114113

Hazardous materials management

3.59

3.60

3.62

Office of Inspector General

89.90

95.03

General Counsel

41.20

Office of Ethics

Subtotal

Total, Departmental Administration

FY2017

Admin.

Request

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 11531

Change: FY2016 to

FY2017 Enacted

3.63

3.62

3.63

3.63

+0.0

+0.4%

95.74

101.00

96.04

99.38

98.21

+2.5

+2.6%

44.38

44.38

49.60

44.38

45.01

44.70

+0.3

+0.7%

3.44

3.65

3.65

4.62

4.56

3.72

4.14

+0.5

+13.2%

443.67

278.57

287.12

343.70

308.32

309.38

317.54

+30.4

+10.6%

526.13

364.46

373.16

448.70

392.36

403.45

403.93

+30.8

+8.2%

Source: CRS, compiled from tables in the joint explanatory statements or committee reports for the referenced appropriations acts or bills.

a. Beginning in FY2015, the amount for buildings and facilities no longer includes rental payments to the General Services Administration (GSA) or Department of

Homeland Security, which amounted to $178 million in FY2014. Although the federal government owns many of the facilities in which agencies are housed, USDA

rents some buildings and facilities from private vendors, which are contracted through GSA. Rather than paying rental obligations from a central account, rental

expenses now are paid by the individual agencies and have been absorbed into their budgets. Therefore, amounts for buildings and facilities in this account now refer

to operations, maintenance, and improvements of primarily the USDA-owned headquarters complex (the Whitten Building and the South Building).

CRS-22

Agriculture and Related Agencies: FY2017 Appropriations

Agricultural Research, Education, and Extension35

Agricultural research was one of the founding purposes when USDA was created in 1862. USDA

conducts intramural research at federal facilities with government-employed scientists and

supports external research at universities and other facilities through competitive grants and

formula-based funding. Contemporary research spans traditional, organic, and sustainable

agricultural production; bioenergy; nutrition; food safety; pests and diseases of plants and

animals; and economics.

Four agencies carry out USDA’s research, education, and economics 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 competitive

grants and formula-based funding to land grant colleges of agriculture to provide

partial support for state-level research, education, and extension.

The National Agricultural Statistics Service (NASS) collects and publishes

national, state, and county statistics. NASS is also responsible for the five-year

cycle of the Census of Agriculture.

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

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

The enacted FY2017 appropriation provides $2.891 billion for agricultural research, down $45

million from the enacted FY2016 total (-1.5%; Table 5). This overall change is comprised of $67

million more for research programming across the four agencies and $112 million less for

buildings and facilities than in FY2016. The enacted bill is less of a reduction than either the

House or Senate bills, generally providing more to research programs than the House bill

proposed and reducing building and facilities by less than the Senate bill proposed.

In addition to discretionary appropriations, agricultural research is also funded by state matching

contributions and private donations or grants, as well as mandatory funding from the farm bill.36

Agricultural Research Service

The ARS is USDA’s in-house basic and applied research agency. It operates approximately 90

laboratories nationwide with about 6,600 employees. ARS also operates the National Agricultural

Library, one of USDA’s primary information repositories for food, agriculture, and natural

resource sciences. ARS laboratories focus on efficient food and fiber production, development of

new products and uses for agricultural commodities, development of effective controls for pest

management, and support of USDA regulatory and technical assistance programs.

For FY2017, the enacted appropriation provides $1.170 billion for ARS salaries and expenses,

$26 million more than FY2016 (+2.3%; Table 5). The House-reported bill would have increased

the FY2016 amount by $8 million and the Senate-reported bill by $34 million.

35

36

This section was written by (name redacted)

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

).

See CRS Report R40819, Agricultural Research: Background and Issues

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Agriculture and Related Agencies: FY2017 Appropriations

ARS had proposed increases across several programmatic areas for prioritized research projects,

coupled with reductions in funding for several existing programs. The enacted appropriation, via

the explanatory statement, expressly rejects those specific reductions and reprogramming.

The enacted appropriation does not include concerns that were mentioned in the FY2016

appropriation about animal care at ARS research facilities. However, the Animal and Plant Health

Inspection Service (APHIS) is instructed in the explanatory statement to continue its inspections

of ARS facilities and post the results online.

For the ARS buildings and facilities account, the enacted appropriation provides $99.6 million in

FY2017, a decrease from the $212 million appropriated in FY2016. USDA had requested $94.5

million for FY2017. The appropriation directs that funding be used for priorities identified in the

“USDA ARS Capital Investment Strategy.”37 ARS’s priorities include completion of the Foreign

Disease and Weed Science Research Unit in Fort Detrick, MD ($30.2 million), and Phase I of the

Agricultural Research Technology Center in Salinas, CA ($64.3 million).38

National Institute of Food and Agriculture

NIFA provides federal funding for research, education, and extension projects conducted in

partnership with the State Agricultural Experiment Stations, the State Cooperative Extension

System, land grant universities, colleges, and other research and education institutions, as well as

individual researchers. These partnerships include the 1862 land-grant institutions, 1890

historically black colleges and universities, 1994 tribal land-grant colleges, and Hispanic-serving

institutions. Federal funds enhance capacity at universities and institutions by statutory formula

funding, competitive awards, and grants.

For FY2017, the enacted appropriation provides $1.363 billion for NIFA, an increase of $36

million over FY2016 (+2.7%; Table 5). The President had requested slightly more discretionary

funding for NIFA plus an increase in mandatory funding as described below.

The Agriculture and Food Research Initiative (AFRI)—USDA’s flagship competitive grants

program with 25% of NIFA’s total budget—received the Administration’s requested increase of

$25 million for a $375 million appropriation. The Administration had also requested an additional

$325 million of new mandatory money to “fully fund” AFRI at its farm-bill authorized level of

$700 million. New mandatory funding is generally more germane to the authorization process

(such as the farm bill) rather than the annual appropriations, and the House and Senate did not

include this request in their bills or the final appropriation.

Formula-funded programs in both research and extension are held constant under the FY2017

appropriation, though the Administration had requested an increase for the Evans-Allen program

that supports historically black colleges of agriculture.

The FY2017 appropriation continues to direct that at least 15% of NIFA’s competitive grant

funding be available for research enhancement awards such as USDA-EPSCoR.

The President’s request again proposed to consolidate federal science, technology, engineering,

and mathematics (STEM) education funding so that USDA would no longer fund Higher

37

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

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

38

In FY2016, ARS buildings and facilities funding went to construction of a biocontainment laboratory at the ARS

poultry research facility in Athens, GA ($145 million); a foreign disease-weed science facility in Frederick, MD ($70

million); and an animal science, human nutrition, and bee research center in Beltsville, MD ($33 million).

Congressional Research Service

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Agriculture and Related Agencies: FY2017 Appropriations

Education Challenge Grants, Graduate and Post-graduate Fellowship Grants, the Higher

Education Multicultural Scholars Program, the Women and Minorities in STEM Program,

Agriculture in the Classroom, and Secondary/Postsecondary Challenge Grants. As in prior years,

the enacted appropriation rejected that proposal and continues to fund these STEM programs in

USDA. In fact, an additional $500,000 was appropriated to Rural Development to develop a plan

to increase access to STEM education in rural areas via the Distance Learning and Telemedicine

program.

National Agricultural Statistics Service

NASS conducts the Census of Agriculture and provides official statistics on agricultural

production and indicators of the economic and environmental status of the farm sector.

For FY2017, the enacted appropriation provides NASS $171 million, an increase of $2.8 million

over FY2016 (+2.7%). Most of that increase ($1.6 million) is targeted to expand a feed cost

survey at the national level.

The House report language directs NASS to restart surveys and reports for pecans. The Senate

report language directs continuing coverage of chemical use and integrated pest management,

especially for fruits and vegetables, and additional organic production surveys.

Economic Research Service

ERS supports economic and social science information analysis on agriculture, rural

development, food, commodity markets, and the environment. It collects and disseminates data

concerning USDA programs and policies to various stakeholders.

For FY2017, the enacted appropriation provides ERS $86.8 million, a $1.4 million increase over

FY2016 (+1.6%). USDA had requested a larger increase to $91 million. The enacted increase is

supposed to support additional research on groundwater modeling and drought resilience, as

indicated in both the joint explanatory statement and in the House report language. The Senate

report language directs ERS to expand its organic data analysis.

Congressional Research Service

25

Table 5. USDA Research, Extension, and Economics (REE) Appropriations

FY2014

FY2015

FY2016

P.L. 113-76

P.L. 113235

P.L. 114113

1,122.5

1,132.6

1,143.8

—

45.0

1,122.5

AFRI (competitive grants)

Budget authority in millions of dollars

FY2017

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 11531

1,161.3

1,151.8

1,177.9

1,170.2

+26.4

+2.3%

212.1

94.5

99.6

64.3

99.6

-112.5

-53.0%

1,177.6

1,355.9

1,255.8

1,251.4

1,242.2

1,269.8

-86.1

-6.3%

316.4

325.0

350.0

375.0

375.0

375.0

375.0

+25.0

+7.1%

Hatch Act (1862 institutions)

243.7

243.7

243.7

243.7

243.7

243.7

243.7

+0.0

+0.0%

Evans-Allen (1890s institutions)

52.5

52.5

54.2

58.0

54.2

54.2

54.2

+0.0

+0.0%

McIntire-Stennis (forestry)

34.0

34.0

34.0

34.0

34.0

34.0

34.0

+0.0

+0.0%

Other

126.0

131.7

137.8

126.3

126.0

144.6

142.7

+4.8

+3.5%

Subtotal

772.6

786.9

819.7

836.9

832.9

851.5

849.5

+29.8

+3.6%

Smith-Lever (b) & (c)

300.0

300.0

300.0

300.0

300.0

300.0

300.0

+0.0

+0.0%

Smith-Lever (d)

85.5

85.5

85.5

106.9

85.5

85.5

85.5

+0.0

+0.0%

Other

83.7

86.2

90.4

95.0

91.9

90.7

91.9

+1.5

+1.7%

Subtotal

469.2

471.7

475.9

501.9

477.4

476.2

477.4

+1.5

+0.3%

Integrated Activities

35.3

30.9

30.9

28.9

30.9

36.0

36.0

+5.1

+16.5%

1,277.1

1,289.5

1,326.5

1,374.0

1,341.2

1,363.7

1,362.9

+36.4

+2.7%

National Agricultural Statistics Service

161.2

172.4

168.4

176.6

168.4

169.6

171.2

+2.8

+1.7%

Economic Research Service

78.1

85.4

85.4

91.3

86.0

86.8

86.8

+1.4

+1.6%

2,638.8

2,724.9

2,936.2

2,897.7

2,847.0

2,862.4

2,890.7

-45.5

-1.5%

Agency or Major Program

Agricultural Research Service

Buildings and Facilities

Subtotal, ARS

Admin.

Request

Change: FY2016 to

FY2017 Enacted

National Inst. of Food and Agriculture

Research and Education

Extension

Subtotal, NIFA

Total, REE appropriation

Source: CRS, compiled from tables in the joint explanatory statements or committee reports for the referenced appropriations acts or bills.

CRS-26

Agriculture and Related Agencies: FY2017 Appropriations

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 Service39

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. Prominent concerns include avian influenza (AI), bovine

spongiform encephalopathy (BSE or “mad cow disease”), foot-and-mouth disease (FMD),

invasive plant pests (e.g., emerald ash borer, the Asian long-horned beetle, glassy-winged

sharpshooter), and animal disease and traceability. APHIS also administers the Animal Welfare

Act, which protects animals used in research and public exhibitions, and the Horse Protection

Act, which supports inspections at horse shows and sales to prohibit the practice of soring.

APHIS also administers the Wildlife Services Program to resolve human/wildlife conflicts and to

protect against wildlife damage (e.g., predator control, feral swine control).

For FY2017, the enacted appropriation would provide $946.2 million for APHIS, plus $3.2

million for building and facilities (Table 6). This is $51.8 million more than FY2016 (+5.8%),

and $45.0 million more than requested by the Administration.

From the Animal Health budget line, the bill provides $55.3 million for avian health. The Animal

Welfare appropriation includes an increase over FY2016 of $400,000 to provide oversight of

animal research at ARS facilities. In addition, a general provision (Section 739) prohibits any

funding supporting licensing for Class B dealers who sell dogs and cats for use in research,

experiments, teaching, or testing. In addition to the Specialty Crop Pests budget line, Section 757

of the enacted appropriation provides an additional $5.5 million to address citrus greening.

Section 738 of the enacted appropriations requires APHIS to conduct international animal health

status audits based on seven factors as defined in regulations for determinations of animal health

status (9 C.F.R. 92.2), and APHIS is to promptly make audit reports publicly available. The

section also requires that the audits be conducted in a manner consistent with U.S. international

trade agreements.

Table 6. Animal and Plant Health Inspection Service (APHIS) Appropriations

(budget authority in millions of dollars)

FY2016

P.L. 114113

FY2017

Admin.

Request

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 11531

Animal Health

295.2

305.3

309.9

307.1

309.9

Plant Health

308.4a

287.5

309.8a

310.9

318.3a

Wildlife Services

120.0

105.0

119.2

121.2

122.2

Regulatory Services

35.1

35.4

35.1

35.5

35.1

Emergency Management, Contingency

17.4

44.6

38.4

44.6

41.4

39

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

Congressional Research Service

[redacted]@crs.loc.gov

).

27

Agriculture and Related Agencies: FY2017 Appropriations

FY2016

P.L. 114113

FY2017

Admin.

Request

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 11531

Safe Trade, International Tech. Assist.

37.2

42.0

37.2

38.5

37.7

Animal Welfare

29.1

29.4

29.2

29.4

29.5

Administrative Funds

52.0

52.0

52.0

52.0

52.0

894.4

901.2

930.8

939.3

946.2

3.2

3.2

3.2b

3.2

3.2c

897.6

904.4

934.0

942.5

949.2

Subtotal, salaries and expenses

Buildings and facilities

Total, APHIS

Source: CRS, compiled from tables in the joint explanatory statements or committee reports for the

referenced appropriations acts or bills.

a. In addition to this amount, the General Provisions section of the appropriation provides $5.5 million for

citrus greening.

b. In addition to this amount, the General Provisions section of the House-reported bill would have provided

$30 million for fruit fly eradication facilities.

c. In addition to this amount, the General Provisions section of the enacted appropriation provides $47 million

for fruit fly eradication facilities.

Agricultural Marketing Service and “Section 32”40

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 $1.3 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 commodity support programs for the primary field

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

activities.

Marketing Activities

For FY2017, the enacted appropriation provides $86.2 million for AMS salaries and expenses,

including $1.2 million for payments to states and possessions for marketing activities. This is

$3.7 million higher than enacted in FY2016. The enacted legislation places a $61.2 million limit

on the amount of user fees that AMS may collect for grading and classifying cotton and tobacco.41

The AMS discretionary appropriation funds four main marketing activities: 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,

the country-of-origin labeling (COOL) program, and 22 commodity research and promotion

40

41

This section was written by (name redacted) (7

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

).

Authorized by the Omnibus Budget Reconciliation Act of 1981 (P.L. 97-35).

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Agriculture and Related Agencies: FY2017 Appropriations

programs (checkoffs). AMS monitors the agriculture transportation system and conducts market

analysis that supports the transport of agricultural products domestically and internationally.

The appropriation for payments to states and possessions are for the Federal-State Marketing

Improvement Program, which provides matching grants to state marketing agencies to explore

new market opportunities for U.S. food and agricultural products, and to encourage research and

innovation to improve marketing efficiency and performance.

In addition to the cotton and tobacco inspection and classification fees (limited to $61.2 million),

AMS collects user fees and reimbursements to cover product quality and process verification

programs, commodity grading, and Perishable Agricultural Commodities Act (PACA; 7 U.S.C.

499a) licensing. AMS expects to collect about $175 million in FY2017 for these activities. 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.42

The National Organic Standards Board (NOSB) has completed its sunset review of the National

List of substances and ingredients allowed and prohibited in organic production. In the enacted

legislation’s explanatory statement, Congress directs USDA to fully consider available scientific

information and stakeholder comments as it reviews the NOSB sunset review recommendations

in the rulemaking process. Congress also directs USDA to “stay within the parameters of the

required study” included in the National Bioengineered Food Disclosure Standard (P.L. 114-216).

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

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 (estimated at $10.9 billion in FY2017). This amount is reduced by various

mandatory transfers ($9.6 billion in FY2017) to child nutrition and other programs.43

The remaining 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 (Section 14222) capped the annual amount of Section 32 funds available for

obligation by AMS in FY2017 at $1.322 billion. Also, to increase the amount of fruits and

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

Section 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) Section 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).

42

Separate from the appropriations process, the 2014 farm bill (P.L. 113-79) authorized 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 FY2017)

for the AMS share of costs to support organic certification. For FY2017, AMS expects to administer an estimated

$107.1 million ($115 million, less 6.9% for sequestration) for these mandatory farm bill initiatives.

43

For more details, see CRS Report RL34081, Farm and Food Support Under USDA’s Section 32 Program.

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Agriculture and Related Agencies: FY2017 Appropriations

For FY2017, P.L. 115-31 authorizes $1.322 billion of Section 32 funds for AMS, as provided in

the 2008 farm bill. After a rescission of $231 million, a sequestration cut of $80 million, and

required transfers for fresh fruit and vegetable programs, $886 million is available for AMS

activities.

Section 715 of the enacted legislation, a provision that has been in enacted agricultural

appropriations since FY2012, effectively prohibits the use of Section 32 funds for emergency

disaster payments:

[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.44

Grain Inspection, Packers and Stockyards Administration45

The 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 FY2017, the enacted appropriation provides GIPSA $43.5 million for salaries and expenses,

$425,000 more than enacted for FY2016. The enacted legislation authorizes GIPSA to collect up

to $55 million in user fees for inspection and weighing services. If grain export activity requires

additional services, the user fee limit may be exceeded by up to 10% upon notification to the

Committee on Appropriations in both the House and Senate.

The general provisions of the enacted appropriation do not include language regarding the GIPSA

rule46 that was proposed in 2010 nor the Farmer Fair Practices Rules47 that were issued in

December 2016. From FY2012 to FY2015, enacted appropriations riders prohibited USDA from

finalizing and implementing most parts of the GIPSA rule. The FY2016 appropriations act did not

include such a provision. Subsequently, USDA reissued parts of the original rule in three separate

rules:

The first was an interim final rule that holds that harm to an individual could be a

violation of the Packers and Stockyards Act (7 U.S.C. §181 et seq.) without a

finding of harm to competition.

The other two proposed rules addressed (1) criteria for determining unfair

practices and undue preferences and (2) criteria that could be used to determine if

44

Clause 3 of Section 32 provides that funds shall be used to reestablish 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).

45

This section was written by (name redacted) (7

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

).

46

75 Federal Register 35338. See CRS Report R41673, USDA’s “GIPSA Rule” on Livestock and Poultry Marketing

Practices.

47

81 Federal Register 92566, 81 Federal Register 92703, and 81 Federal Register 92723. See CRS Insight IN10638,

USDA Releases GIPSA Rules.

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Agriculture and Related Agencies: FY2017 Appropriations

the poultry tournament system was in violation of the Packers and Stockyards

Act.

In January 2017, the Trump Administration delayed the effective dates and extended the comment

periods of the Farmers Fair Practices Rules.48 In April 2017, USDA further delayed the effective

date of the interim final rule to October 19, 2017. USDA also asked for comments on whether or

not the interim final rule should (1) become effective, (2) be suspended indefinitely, (3) delay the

effective date further, or (4) be withdrawn.

Food Safety and Inspection Service (FSIS)49

The Food Safety and Inspection Service (FSIS) is responsible for inspecting U.S. supplies of

meat, poultry, and processed egg products to ensure that they are safe, wholesome, and properly

labeled.50 The FSIS Meat and Poultry Inspection Program conducts continuous inspections at

federal meat and poultry plants and ensures that state inspection programs have standards that are

at least equivalent to federal standards. The Egg Products Inspection Program ensures that liquid,

frozen, and dried egg products are also safe, wholesome, and correctly labeled. In addition, FSIS

inspects U.S. imports of meat, poultry, and egg products, and ensures that they are produced

under standards equivalent to U.S. inspection standards.

For FY2017, the enacted appropriations act provides FSIS $1.03 billion, $17.2 million more than

enacted for FY2016. The FSIS appropriations are divided between five subaccounts: federal

inspection ($915.8 million), state inspection ($61.6 million), international inspection ($16.5

million), Codex Alimentarius ($3.7 million), and the Public Health Data Communications

Infrastructure System ($34.6 million). The appropriation authorizes FSIS to collect $1.0 million

in laboratory accreditation fees. It requires that FSIS have no fewer than 148 full-time equivalents

dedicated to the inspection and enforcement of the Humane Methods of Slaughter Act in FY2017.

The appropriation directs FSIS to continue to implement catfish inspection that was transferred

from the Food and Drug Administration to USDA in the 2008 farm bill (P.L. 110-246, §11016)

and 2014 farm bill (P.L. 114-79, §12106). FSIS issued the final rule on catfish inspection in

December 2015, and it went into effect on March 1, 2016, with a phase-in period continuing until

September 1, 2017.51 In the explanatory statement of the enacted appropriation, Congress directs

FSIS to re-inspect all imported catfish and to complete equivalency determinations for foreign

countries exporting catfish to the United States no later than 180 days following the end of the

phase-in period of September 1, 2017.

For FY2017, Section 762 of the enacted appropriations prohibit FSIS from using funds to inspect

horse slaughter facilities, as well as the use of voluntary inspection fees. Horses are an amenable

species under the Federal Meat Inspection Act and FSIS is responsible for horse slaughter

inspection if the horsemeat is for human consumption. However, the FY2006 and FY2007

appropriations acts prohibited FSIS from funding horse slaughter inspections. In subsequent

appropriations (FY2008-FY2011 and FY2014-FY2016), the inspection bans were expanded to

include a prohibition on voluntary, fee-based horse slaughter inspections. Inspection bans were

48

See CRS Insight IN10638, USDA Releases GIPSA Rules.

This section was written by (name redacted) (7

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

).

50

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

Act (21 U.S.C. §451 et seq.), the Egg Products Inspection Act (21 U.S.C. §1031 et seq.), and the Humane Methods of

Slaughter Act (7 U.S.C. §1901 et seq.).

51

80 Federal Register 75590 (December 2, 2015).

49

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31

Agriculture and Related Agencies: FY2017 Appropriations

not in force during FY2012 and FY2013, but no horse slaughter facilities opened before the

appropriations ban was reinstated.

Section 728 of the FY2017 appropriation prohibits the purchase of processed (cooked) poultry

meat imported from China for use in the school lunch program under the Richard B. Russell

National School Lunch Act (42 U.S.C. 1751 et seq.), the Child and Adult Food Care Program

under Section 17 of such act (42 U.S.C. 1766), the Summer Food Service Program for Children

under Section 13 of such act (42 U.S.C. 1761), or the school breakfast program under the Child

Nutrition Act of 1966 (42 U.S.C. 1771 et seq.). This provision has been included in

appropriations acts since FY2015 after FSIS concluded that China could export processed poultry

to the United States. This raised concern among some Members of Congress because of China’s

poor food safety record. In August 2013, FSIS determined that China’s processed poultry system

is equivalent52 to the U.S. system. This determination allows China to source raw poultry

slaughtered in the United States or countries eligible to export raw poultry to the United States,

process the raw product, and then export the processed poultry.

In November 2014, China provided FSIS a list of four processing plants that meet processing

equivalency requirements and thus could send processed poultry to the United States. To date, no

Chinese processed product has been exported to the United States. But FSIS is in the process of

writing a proposed rule that recognizes the equivalency of China’s poultry slaughter system and

would allow China to export processed poultry that is domestically raised. A positive equivalency

determination for China’s slaughter system would likely result in U.S. imports of poultry from

China.

Farm Service Agency53

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 and 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 FY2017, the enacted appropriation provides $1.513 billion to FSA for salaries and expenses

(including $1.206 billion for regular FSA salaries and expenses, plus the transfer within FSA of

$307 million for farm loan program salaries and expenses), an increase of $5.9 million over

FY2016 (Table 7).54

The joint explanatory statement indicates that the increase in the appropriation is for $5 million to

improve security at county offices, $500,000 to support youth-serving organizations, $250,000 to

establish a pilot network to mentor beginning farmers, and $90,000 to train veteran farmers to be

prequalified for direct farm ownership loans.

52

Under equivalency, foreign inspection measures do not have to be the same as in the United States, but they must

provide the same level of sanitary and public health protection as U.S. measures. Equivalency for poultry is authorized

in 21 U.S.C. §466 of the PPIA.

53

This section was written by (name redacted)

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

).

54

Excludes transfers to FSA from FAS for administrative support (about $2.6 million).

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Agriculture and Related Agencies: FY2017 Appropriations

Regarding information technology (IT), the enacted appropriation continues strong requirements

that began in FY2015 about FSA’s implementation of IT plans. The intention is to address the

Modernize and Innovate the Delivery of Agricultural Systems (MIDAS) plan that was flagged for

concern by the Federal IT Dashboard in December 2012 but has shown progress in 2015 and

2016.55 FSA has struggled with the scope and schedule of work on MIDAS and did not deliver

the expected results. The Government Accountability Office (GAO)56 and the USDA Office of

Inspector General continue to observe management and schedule problems in recent reports.57

Specifically, the statutory language continues a requirement begun in FY2015 that FSA—before

it can spend more than 50% of the $101 million for IT—submit to Congress and GAO a detailed

IT plan that meets several specific criteria.

Regarding office closures and staff reductions, the enacted FY2017 appropriation prohibits FSA

from closing any county offices and prohibits FSA from permanently relocating any county

employees if it results in two or fewer employees, unless the Appropriations Committees approve.

The FY2015 and FY2016 appropriations similarly prohibited county office closure and contained

the relocation provision, but these were the first time that FSA office closure had been mentioned

in appropriations since FY2006-FY2008. The recent one-year moratoriums in appropriations act

surpass a permanent provision in statute from the 2008 farm bill (7 U.S.C. 6932a; P.L. 110-246,

§14212) that sets conditions and requires congressional notification and local hearings before

FSA can close or consolidate a county office.

FSA Farm Loan Programs

FSA makes and guarantees loans to farmers and is a lender of last resort for family farmers who

are unable to obtain credit from commercial lenders. 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.58

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 many times larger than the subsidy level.

For FY2017, the enacted appropriation exceeds the Administration’s request and the House and

Senate proposals, likely due to the delay in enactment and new information about higher demand

for farm loans. Overall, the FY2017 appropriation provides $90 million of loan subsidy to support

$8.0 billion of loan authority. The loan subsidy is increasing 29% over FY2016, and the loan

authority is increasing 25% over the FY2016 appropriation (Table 8).

Following the global financial crisis that began in 2008, the farm loan program has grown in size,

reflecting farmers’ borrowing needs. Supplemental appropriations in FY2009 and FY2010 raised

55

IT Dashboard, “Farm Program Modernization (MIDAS) #097,” https://itdashboard.gov/drupal/summary/005/225.

GAO, “Farm Service Agency Needs to Demonstrate the Capacity to Manage IT Initiatives,” GAO-15-506, June 18,

2015, http://gao.gov/products/GAO-15-506.

57

USDA, Office of Inspector General, “Review of Farm Service Agency’s Initiative to Modernize and Innovate the

Delivery of Agricultural Systems (MIDAS),” 03501-0001-12, May 2015, http://www.usda.gov/oig/webdocs/035010001-12.pdf.

58

For more background, see CRS Report RS21977, Agricultural Credit: Institutions and Issues.

56

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Agriculture and Related Agencies: FY2017 Appropriations

loan authority by $2 billion to the $6 billion level, and, with the exception of fiscal pressures in

FY2011-FY2013, recent appropriations have sustained and increased loan authorities to about

$6.4 billion. Low default rates and interest rates have allowed this increase at lower budgetary

costs compared to a decade ago.

As an indicator of the rapid demand for USDA farm loans, in FY2016 USDA used supplemental

authority that was provided in the appropriation to increase the guaranteed farm ownership

program loan authority by $500 million to $2.5 billion.59 An appropriations provision allows

USDA to increase the loan authority of programs that are self-funding (from loan application fees

such as the farm ownership loan program) by 25% with prior notification to the Appropriations

Committees. The FY2017 appropriation increases the base amount for this loan program to $2.75

billion (+37%) and retains the provision that would allow USDA to increase it by another 25% if

needed (§726).

The FY2017 appropriation also increases the loan authority for the direct farm operating loan

program to $1.53 billion (+22%) and the guaranteed farm operating loan program to $1.96

billion (+41%).

The enacted appropriation continues to not fund the Individual Development Accounts program,60

though the Administration’s request and the Senate bill would have provided $1.5 million.

The enacted appropriation increases funding for administrative expenses in the loan program by

$2.2 million, largely to support service to veteran farmers. Veteran farmers would also benefit

from the Administration’s plan to waive certain loan fees.

59

USDA used this authority in July 2016. Updates on the year-to-date use of FSA loan authority are available at

http://www.fsa.usda.gov/programs-and-services/farm-loan-programs/funding/index.

60

The Individual Development Account program was authorized in the 2008 farm bill but has not been funded. It is a

subsidized savings program (7 U.S.C. 1983b). USDA would make grants to private entities to deliver the program,

which would match farmer deposits at a rate up to 2:1. Withdrawals would be allowed for various capital expenses.

Congressional Research Service

34

Table 7. Farm Service Agency (FSA) Appropriations

(budget authority in millions of dollars)

FY2014

FY2015

FY2016

P.L. 113-76

P.L. 113235

P.L. 114113

1,177.9

1,200.2

1,200.2

FSA farm loan program S&E transfer

307.0

307.0

Subtotal, appropriated to FSA

1,484.9

Farm loan program (loan subsidy)

FY2017

Admin.

Request

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 11531

Change: FY2016 to

FY2017 Enacted

1,209.8

1,200.2

1,210.4

1,206.1

+5.9

+0.5%

307.0

307.0

307.0

307.0

307.0

+0.0

+0.0%

1,507.2

1,507.2

1,516.7

1,507.2

1,517.4

1,513.1

+5.9

+0.4%

90.0

78.7

69.6

82.8

82.0

82.8

90.0

+20.4

+29.3%

Farm loan program admin. expenses

7.7

7.9

7.9

10.1

7.9

10.1

10.1

+2.2

+27.1%

State mediation grants

3.8

3.4

3.4

3.4

3.4

3.9

3.9

+0.5

+14.7%

Grassroots source water protection

5.5

5.5

6.5

0.0

6.5

6.5

6.5

+0.0

+0.0%

Dairy indemnity program (M)

0.3

0.5

0.5

0.5

0.5

0.5

0.5

+0.0

+0.0%

Total: Appropriation to FSA

1,592.2

1,603.3

1,595.1

1,613.6

1,607.5

1,621.2

1,624.0

+29.0

+1.8%

Salaries and expenses

Farm Service Agency (S&E base)

Programs

Source: CRS, compiled from tables in the joint explanatory statements or committee reports for the referenced appropriations acts or bills.

Notes: Does not include about $3 million of salaries and expenses that are appropriated to the Foreign Agricultural Service and transferred to FSA to administer Food

for Peace and export loans. Discretionary budget authority unless labeled “(M)” to indicate mandatory authority.

CRS-35

Table 8. Farm Service Agency: Farm Loan Program

(budget authority and loan authority, as specified, in millions of dollars)

FY2014

FY2015

FY2016

P.L. 113-76

P.L. 113235

P.L. 114113

4.4

—

—

Direct

65.5

63.1

Guaranteed (unsubsidized)

18.3

Emergency loans

FY2017

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 11531

—

—

—

—

+0.0

+0.0

54.0

62.2

62.2

62.2

65.2

+11.2

+20.8%

14.8

14.4

15.3

15.3

15.3

21.0

+6.6

+46.1%

1.7

0.9

1.3

1.3

1.9

1.3

1.3

+0.0

+0.0%

Indian highly fractionated land loans

0.1

—

—

2.6

2.6

2.6

2.6

+2.6

—

Individual Development Accounts

—

—

—

1.5

—

1.5

0.0

+0.0

—

90.0

78.7

69.6

82.8

82.0

82.8

90.0

+20.4

+29.3%

FLP salaries and expenses

307.0

307.0

307.0

307.0

307.0

307.0

307.0

+0.0

+0.0%

FLP administrative expenses

7.7

7.9

7.9

10.1

7.9

10.1

10.1

+2.2

+27.1%

Total, FLP budget authority

404.7

393.6

384.5

399.9

396.9

399.9

407.0

+22.5

+5.9%

Admin.

Request

Change: FY2016 to

FY2017 Enacted

1. Budget Authority (loan subsidy)

Farm ownership loans

Direct

Farm operating loans

Other direct loans

Subtotal, loan subsidy

CRS-36

FY2014

FY2015

FY2016

P.L. 113-76

P.L. 113235

P.L. 114113

575.0

1,500.0

1,500.0

2,000.0

2,000.0

2,000.0 a

Direct

1,195.6

1,252.0

Guaranteed (unsubsidized)

1,500.0

FY2017

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 11531

1,500.0

1,500.0

1,500.0

1,500.0

+0.0

+0.0%

2,000.0

2,000.0

2,000.0

2,750.0

+750.0

+37.5%

1,252.0

1,460.0

1,460.0

1,460.0

1,530.0

+278.0

+22.2%

1,393.4

1,393.4

1,432.4

1,432.4

1,432.4

1,960.0

+566.6

+40.7%

150.0

150.0

150.0

150.0

150.0

150.0

150.0

+0.0

+0.0%

Emergency loans

34.7

34.7

34.7

22.6

34.7

22.6

22.6

-12.1

-34.9%

Indian tribe land acquisition loans

2.0

2.0

2.0

20.0

20.0

20.0

20.0

+18.0

+900.0%

Indian highly fractionated land loans

10.0

10.0

10.0

10.0

10.0

10.0

10.0

+0.0

+0.0%

Boll weevil eradication loans

60.0

60.0

60.0

60.0

60.0

60.0

60.0

+0.0

+0.0%

5,527.3

6,402.1

6,402.1

6,655.1

6,667.1

6,655.1

8,002.6

+1,600.5

+25.0%

Admin.

Request

Change: FY2016 to

FY2017 Enacted

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 the referenced appropriations acts or bills.

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.

a. In July 2016, USDA increased this amount by $500 million, to $2,500 million, by using the authority provided in the FY2016 appropriation (P.L. 114-113, §727) to

increase by 25% the loan authority for programs that are self-funding such as the farm ownership loans.

CRS-37

Agriculture and Related Agencies: FY2017 Appropriations

Commodity Credit Corporation61

The CCC is the funding mechanism for most of the agriculture-related mandatory spending

programs in the 2014 farm bill (P.L. 113-79, the Agricultural Act of 2014). 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 other than the CCC include crop insurance,

SNAP, child nutrition, and Section 32.) Supplemental spending has also been paid from the CCC,

particularly for ad hoc farm disaster payments, direct market loss payments because of low farm

commodity prices, and disease eradication efforts. Separate discretionary appropriations to

various agencies pay for salaries to administer the CCC-funded 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 to finance program spending (15 U.S.C. 714,

et seq.). The CCC 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 is replenished through a congressional appropriation.62

Mandatory outlays for the commodity programs rise and fall based on market 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 and that the CCC uses a Treasury line of credit.

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 current year outlays. Moreover, the CCC appropriation is several billion dollars greater

than the amount of farm commodity subsidies because other programs (e.g., certain conservation

and biofuels programs) are also paid from CCC.63

To replenish CCC’s borrowing authority, the enacted FY2017 appropriation continues to provide

an indefinite appropriation (“such sums as necessary”). The amount estimated for FY2017 is

$21.291 billion (triple the amount provided in FY2016 and higher than estimates in 2016 that

were in the Administration’s request and the House and Senate markups). The increase does not

indicate any action by Congress to raise spending but rather follows market conditions and the

payment timelines.

In policy matters, the enacted appropriation creates a pilot program (Section 772), to be available

during FY2017, within one of the new farm commodity support programs under the 2014 farm

bill. Concerns have been raised that the Agricultural Risk Coverage (ARC) county-level

payments64 have not been equitable across certain adjacent counties. The issue is the accuracy of

yields calculated at the county level under methods allowed by the farm bill (primarily, the

61

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

) and (name redacted)

-. ...,

(7

[redacted]@crs.loc.gov

).

62

For more background on the origins and structure of CCC, see CRS Report R44606, The Commodity Credit

Corporation: In Brief.

63

For an example of CCC’s accounting, see USDA, Commodity Estimates Book, “Output 07-CCC Financing Status,”

http://www.fsa.usda.gov/about-fsa/budget-and-performance-management/budget/ccc-budget-essentials/index.

64

The county ARC program is a revenue guarantee, triggered by crop revenue losses at the county level. Payments are

made when actual county crop revenue drops below the county revenue guarantee per acre, which equals the average

historical county yield for the most recent five crop years (excluding the highest and lowest yields) times the national

average market price. See CRS Report R43448, Farm Commodity Provisions in the 2014 Farm Bill (P.L. 113-79).

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Agriculture and Related Agencies: FY2017 Appropriations

availability of sufficient data in standard sources). The pilot would allow USDA state offices to

use alternative calculations for the 2016 crop year if they believe that the current formula results

in discrepancies among adjacent counties. A supplementary payment would make up any

difference between the alternative calculation (if higher) and the original yield estimate. The

appropriation provides $5 million for the pilot program and allows the Secretary to choose

participating states.

This one-year pilot (and last year’s permanent change that allows commodity certificates to again

be used)65 is a way of adjusting the farm bill without “reopening” it.

The enacted appropriation does not make any changes to add cottonseed as an eligible oilseed for

the farm commodity program. In February 2016, USDA said that it did not have the authority to

make that declaration administratively.66 In the House and Senate markups of the appropriation,

report language included statements expressing disappointment that the Secretary had not used

his authority to provide such assistance and encouraged him to do so, but neither bill would have

compelled any change. The joint explanatory statement directs the Secretary to issue a report

within 60 days that describes administrative options and recommends legislative actions for the

cotton industry.

Regarding ad hoc disaster assistance allowed under the CCC Charter Act, both the Housereported and Senate-reported bills continue a provision (§715) that has appeared since FY2012

that effectively prohibits the use of the CCC 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.67

Finally, for the first time since FY2011, neither the House-reported nor Senate-reported bills

contain a provision that prevents USDA from providing marketing assistance loans for mohair.

Crop Insurance68

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.69

Two separate appropriations support the federal crop insurance program. The first provides

discretionary funding for the salaries and expenses of the RMA. The second provides mandatory

65

P.L. 114-113, §740; see CRS Report R44240, Agriculture and Related Agencies: FY2016 Appropriations.

USDA Secretary Tom Vilsack, letter to House Agriculture Committee on the decision whether to name cottonseed as

an eligible oilseed, February 3, 2016, http://www.agri-pulse.com/Uploaded/Conaway-Feb-3-2016%20.pdf.

67

For an explanation of the statutory references, see footnote 44.

68

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

) and (name redacted)

-....,(7

[redacted]@crs.loc.gov

).

69

For more information, see CRS Report R40532, Federal Crop Insurance: Background.

66

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Agriculture and Related Agencies: FY2017 Appropriations

funding for the Federal Crop Insurance Fund (FCIC), which finances other program expenses,

including premium subsidies, indemnities, and reimbursements to the insurance companies.

For the discretionary salaries and expenses of the RMA, the enacted FY2017 appropriation is the

same as FY2016, $74.8 million. The Administration had requested a smaller discretionary

appropriation ($66.6 million) plus $20 million of mandatory funding from the crop insurance

fund. Congress did not concur with the requested change for this use of mandatory funding.

For the mandatory appropriation to the Federal Crop Insurance Fund, the enacted appropriation

provides an indefinite amount (“such sums as necessary”), estimated at $8.667 billion. This is

about $800 million more than FY2016 (+10%) but does not reflect any change by Congress to

increase program benefits. The actual amount required is subject to change and is based on actual

crop losses and farmer participation rates in the program.

The explanatory statement for the enacted appropriation identifies “livestock products” as

separate and distinct from “livestock” for purposes of developing new insurance products. This

distinction supports the development of new insurance products. The authorizing statute refers

only to livestock and lists types of livestock in the definition (7 U.S.C. 1523(b)) but lists no

livestock products. There is no indication that Congress intended for livestock products to fall

under the limitation of livestock insurance policies, and this restriction has hindered the

availability of policies for livestock products like milk. The act encourages the Risk Management

Agency (RMA) to present this reinterpretation to the Federal Crop Insurance Corporation board

at the next scheduled meeting and develop additional policies for milk to provide dairy farmers

with more robust risk management options before the end of the year.

Disaster Assistance70

USDA offers several programs to help producers recover from natural disasters. Most of these

programs are permanently authorized and do not require a federal disaster designation. Most

receive mandatory funding (“such sums as necessary”) and are not subject to annual

appropriations.71 However, agricultural land rehabilitation programs receive discretionary funding

on an ad hoc basis. In recent years, funding has been incorporated into annual appropriations

bills, even though it remains supplemental in nature and amounts vary over time.

For FY2017, the second CR (P.L. 114-254, Division A, Section 185) provided new emergency

funding for two USDA land rehabilitation programs––the Emergency Conservation Program

(ECP, $103 million) and the Emergency Watershed Protection Program (EWP, $103 million).72

Funding was not directed to a specific disaster, event, or geographic region. The final, enacted

FY2017 appropriation (P.L. 115-31, Division A, Section 714) provides an additional $28.7

million for ECP for emergencies not declared a major disaster.

Under ECP and EWP, a national or state emergency does not have to be declared in order to

receive assistance. Recent years’ funding, however, have required that all or a portion of the funds

be used for activities carried out pursuant to the Robert T. Stafford Disaster Relief and Emergency

Act (Stafford Act).73 The Stafford Act requirement limits the type of eligible disaster to those with

a national or state declared emergency. The enacted FY2017 funding does not include the

70

This section was written by (name redacted) (7

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

).

For additional information on these programs, see CRS Report RS21212, Agricultural Disaster Assistance.

72

For additional information about ECP and EWP, see CRS Report R42854, Emergency Assistance for Agricultural

Land Rehabilitation.

73

42 U.S.C. 5121 et seq.

71

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Agriculture and Related Agencies: FY2017 Appropriations

Stafford Act requirement; instead it requires that the funds be used for non-Stafford Act

emergencies.

Conservation74

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 Conservation Reserve Program (CRP).75

Most conservation program funding is mandatory, funded through the CCC and authorized in

omnibus farm bills (about $5.2 billion of CCC funds for conservation in FY2017). Other

conservation programs—mostly technical assistance—are discretionary and funded through

annual appropriations.

The enacted appropriation includes reductions to mandatory conservation programs and provides

an increase from FY2016 levels for discretionary programs.

Discretionary Conservation Programs

All discretionary conservation programs are administered by NRCS. The largest program and the

account that funds most NRCS activities is Conservation Operations (CO). The enacted FY2017

appropriation provides $864 million—more than the FY2016 enacted amount and the Obama

Administration’s request and House-reported bill and the same as the Senate-reported bill. The

enacted appropriation directs CO funding for a number of conservation programs (Table 9).

Table 9. Conservation Operations Funding

(budget authority in millions of dollars)

FY2016

FY2017

P.L. 114113

Admin.

Request

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 11531

851

860

855

864

864

Conservation Technical Assistance

752

761

757

759

759

Soil Survey

80

81

80

81

81

Snow Survey

9.3

9.4

9.3

9.4

9.4

Plant Material Center

9.4

9.5

9.4

9.5

9.5

Watershed Projects (Watershed Operations)

10.6

0

0

5.6

5.6

Program

Conservation Operations

Source: CRS, from H.R. 5054, S. 2956, H.Rept. 114-531, S.Rept. 114-259, and P.L. 114-113.

Notes: Watershed projects are generally funded under a separate authority (Watershed Operations). In recent

years, including FY2017, Congress has required a portion of CO funds to be used for select watershed projects.

74

75

This section was written by (name redacted) (7

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

).

For more information, see CRS Report R40763, Agricultural Conservation: A Guide to Programs.

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Agriculture and Related Agencies: FY2017 Appropriations

The enacted FY2017 appropriation also contains funding for watershed activities, including $150

million for Watershed and Flood Prevention Operations (WFPO)—a program that assists state

and local organizations to plan and install measures to prevent erosion, sedimentation, and flood

damage.76 This is the first appropriated funding for the WFPO program since FY2010. Beginning

in FY2006, the Administration requested no funding for WFPO, citing program inflexibility and a

backlog of congressionally designated projects that were frequently not merited. The

Administration’s FY2017 request proposed no funding for the program, purportedly preferring

fully funding other mandatory conservation programs.77 Since FY2014 Congress has directed a

portion of CO funds to select WFPO activities. Similar directive language ($5.6 million, see

Table 9) is in the FY2017 appropriations, in addition to the $150 million made available for the

program as a whole.

The enacted FY2017 appropriation includes $12 million for the Watershed Rehabilitation

program––the same level enacted in FY2016. The Watershed Rehabilitation program repairs

aging dams previously built by USDA under WFPO. The Obama Administration proposed no

funding, contending that the maintenance, repair, and operation of dams are local responsibilities.

The 2014 farm bill (P.L. 113-79) provided additional mandatory funding for the program to

remain available until expended.78

Mandatory Conservation Programs

Mandatory conservation programs are generally authorized in omnibus farm bills and receive

funding from the CCC, thus not requiring an annual appropriation.79 But Congress has reduced

mandatory conservation programs through 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.

The enacted FY2017 appropriation includes $235 million in CHIMPS to conservation

programs—less than both the House- and Senate-reported bills but more than the Obama

Administration’s proposal.80 The CHIMPS for FY2017 include $179 million from the

Environmental Quality Incentives Program (EQIP), $54 million from the Watershed

Rehabilitation program, and $2 million from the Agricultural Management Assistance (AMA)

program.81 Sequestration further reduces available funding for these and other mandatory

conservation programs in FY2017. Estimated sequestration combined with proposed CHIMPS

would result in an estimated total reduction of over $500 million, or roughly 9% of all mandatory

conservation funding.82

Continued funding reductions to certain conservation programs may be one cause for the

increasing number of unfunded applications. For example, the annual funding authority for EQIP

76

See CRS Report RL30478, Federally Supported Water Supply and Wastewater Treatment Programs.

U.S. Congress, House Committee on Appropriations, Subcommittee on Agriculture, Rural Development, Food and

Drug Administration, and Related Agencies, Budget Hearing—Department of Agriculture, Natural Resources and

Environment, 114th Cong., 2nd sess., February 26, 2016.

78

A series of reductions in program funding has resulted in mandatory funding for the Watershed Rehabilitation

program to go unspent and carry forward into FY2017. This is discussed in greater detail in CRS In Focus IF10041,

Reductions to Mandatory Agricultural Conservation Programs in Appropriations Law.

79

For authorized funding and background, see CRS Report R40763, Agricultural Conservation: A Guide to Programs.

80

For a list of proposed CHIMPS, see Table 15.

81

The reduction to AMA applies only to conservation and risk management activities.

82

OMB estimates a 6.9% level of sequestration for non-exempt, non-defense mandatory accounts. See Appendix B.

77

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Agriculture and Related Agencies: FY2017 Appropriations

increases incrementally from $1.35 billion in FY2014 to $1.75 billion in FY2018. Despite this

increase in authority, annual sequestration and CHIMPS continue to reduce the amount available

to an average of $1.34 billion annually over the past three fiscal years. In FY2015, 23% of all

eligible EQIP applications were funded, down from 37% in FY2014 and 46% in FY2013. The

FY2017 budget request marked the first time in over a decade that the Administration (under both

G. W. Bush and Obama) did not request CHIMPS to EQIP. The enacted FY2017 appropriation,

however, contains CHIMPS to EQIP by limiting funding to $1.357 billion––$293 million less

than its authorized level of $1.65 billion. The stagnant EQIP funding levels may be only one

reason for the decline in funded applications; however, further funding reductions appear unlikely

to reverse the decline. For more discussion, see CRS In Focus IF10041, Reductions to Mandatory

Agricultural Conservation Programs in Appropriations Law.

Rural Development83

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). This mission area also administers Rural Economic Area Partnerships and the National

Rural Development Partnership.

Overall, the enacted FY2017 appropriation provides a total of $2.94 billion in discretionary

budget authority for rural development programs.84 This is $166.2 million more than enacted for

FY2016 (Table 10). The bill will support approximately $37.3 billion in loan authorization,

$602.2 million more than FY2016.85

Salaries and expenses within Rural Development are funded from a direct appropriation plus

transfers from each of the agencies. The enacted appropriation House bill provides a combined

salaries and expenses total of $675.8 million for FY2017, $7.0 million less than in FY2016.

The bill also includes a general provision (Section 768) directing $500,000 from the salaries and

expenses account to develop an implementation plan for increasing access to education in the

fields of science, technology, engineering, and mathematics in rural communities through the

Distance Learning and Telemedicine program. Another general provision (Section 750) requires

that 10% of the funding for various loan and grant programs administered by RHS, RBS, and

RUS be used to support programs in counties designated as “persistent poverty counties.”

Rural Housing Service

The enacted appropriation provides $2.1 billion in budget authority for RHS programs (before

transfers of salary and expenses). This is approximately $32 million (+1.6%) more than FY2016

and $23 million more than requested. With this budget authority, the bill will provide

approximately $28.1 billion in loan authority, $586.6 million more than FY2016.

The single-family housing loan program (Housing Act of 1949, §502) is the largest housing loan

account, representing 89% of RHS’s total loan authority. The bill provides loan authority of $25

83

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

).

If the Cushion of Credit rescission (-$151.5 million in the House bill and -$165 in the Senate bill) is incorporated in

the rural development section as in the committee reports tables (rather than with CHIMPS as in the CBO score), then

the net budget authority would be $2.88 billion and $2.84 billion in the House and Senate bills, respectively.

85

An appropriation covers the federal cost of making direct and guaranteed loans. This loan subsidy is related to any

interest rate subsidy provided by the government, as well as a projection of anticipated loan losses from non-repayment

of loans. The amount of loans that can be made—the loan authority—is several times larger than the subsidy level.

84

Congressional Research Service

43

Agriculture and Related Agencies: FY2017 Appropriations

billion for Section 502 loan guarantees, $100 million more than for FY2016. For Section 502

direct loans, the enacted appropriation provides $1 billion in loan authority, $100 million more

than FY2016, and $67.7 million for loan subsidies. Section 725 also directs RHS to establish an

intermediary loan packaging program based on the pilot program in effect for FY2013 for

packaging and reviewing section 502 single family direct loans.

Rental Assistance Program grants (Housing Act of 1949, §521) are the largest budget authority

line item in RHS, accounting for approximately 68% of the total RHS budget authority

appropriation in FY2017 (Table 10). The enacted appropriation provides $1.40 billion in new

budget authority, an increase of $15.3 million over FY2016 (+1.1%) and the same as requested.

Section 771 addresses concerns by Congress that, as mortgages mature, housing units will be

removed from RHS’s affordable housing program. This will put low-income residents in jeopardy

of facing unaffordable rent increases. The provision directs RHS to modify the pilot program

initiated March 1, 2017, designed to preserve affordable rental housing through nonprofit transfer

or acquisition of Section 515 properties with expiring mortgages.

RHS also administers the Rural Community Facilities program, which provides direct loans, loan

guarantees, and grants for “essential community facilities” in rural areas with less than 20,000 in

population. The enacted appropriation provides $47.1 million in new budget authority for the

program to support a loan authorization level of $2.75 billion in direct and guaranteed loans, $400

million more than FY2016. Several other programs are supported through the Community

Facilities appropriation: the Rural Community Development Initiative ($4.0 million), Economic

Impact Initiative Grants ($5.8 million), and Tribal College grants ($4.0 million). These programs

are funded at the same level as FY2016.

Rural Business-Cooperative Service

The enacted appropriation provides $102 million to the RBS before the Cushion of Credit86

rescission and transfers of salaries and expenses. If the Cushion of Credit rescission is

incorporated as in the Appropriations committee tables, the net RBS budget authority provided

would be -$30 million. For loan authority, the enacted appropriation provides $988 million for the

various RBS loan programs.

For Rural Cooperative Development Grants, the House bill would provide $26.5 million for

FY2017, $4.5 million more than FY2016, with the increase focused on Value Added Product

Development grants. Overall, this includes cooperative development grants ($5.8 million),

Appropriate Technology Transfer for Rural Areas ($2.7 million), Value-Added Product

Development grants ($15 million), and grants to assist minority producers ($3 million). The

enacted appropriation provides the same level of funding for all but the Value-Added Product

Development Grant program ($10.7 million).

For the Rural Business Program account, the enacted appropriation provides $65.3 million in loan

subsidies and grants to support Business and Industry loan guarantees ($35.3 million), Rural

Business Enterprise grants ($24 million), and the Delta Regional Authority ($6.0 million). The

subsidies for the Business and Industry Loan Guarantee program will support $919.8 million in

loan authority.

86

The cushion of credit is part of the Rural Economic Development Loan program that does not receive appropriated

budget authority, but rather operates from a cushion of credit account in the U.S. Treasury. Borrowers forward pay on

their loans into a Treasury account that earns a 5% interest rate. Appropriators authorize a loan level that is funded by

the cushion of credit account. Unused or extra funds in the cushion of credit account are periodically rescinded.

Congressional Research Service

44

Agriculture and Related Agencies: FY2017 Appropriations

The enacted appropriation provides of $5.5 million in budget authority to support loans of nearly

$19.0 million under the Intermediary Relending Program. The bill also provides $8.0 million for

the Rural Energy Savings Program authorized in the 2014 farm bill.

For the first time, the appropriation provides funding for the Healthy Food Financing Initiative

(HFFI, $1 million in Section 767). The HFFI was authorized in the 2014 farm bill (P.L. 113-79,

§4206).

Rural Utilities Service

The enacted appropriation provides $673 million in budget authority for RUS (before transferring

salaries and expenses), about $79 million more than FY2016. This level would support $8.2

billion in loan authorization, the same as in FY2016.

Loan subsidies and grants under the Rural Water and Waste Disposal Program account represent

the largest share of FY2017 enacted budget authority under RUS programs, approximately 85%.

The enacted appropriation provides $571 million in loan subsidies and grants, $49 million more

than FY2016 and $110 million more than the Administration requested. Most of the increase goes

to loan subsidies and water and waste disposal grants. The bill will support $1.25 billion in direct

and guaranteed loans, the same as FY2016.

Besides loan support, the appropriation is divided among several grant accounts:

Water/Waste Disposal grants ($392.0 million),

Direct Loan Subsidies ($52.1 million),

Solid Waste Management grants ($4.0 million),

Individual Well Water grants ($993,000),

Water and Waste Water revolving fund ($1.0 million),

Circuit Rider program ($16.9 million),

Technical Assistance ($20 million),

Grants to Colonias and Alaska and Hawaii Natives ($64 million), and

High Energy Cost grants ($10 million).

The appropriation authorizes loan levels of $6.25 billion for the electrification program, the same

level as FY2016. For the combined distance learning, telemedicine, and broadband account, the

enacted appropriation provides $65.6 million in budget authority, $28.7 million more (78%) than

FY2016. Within the account, the bill provides $34.5 million for rural broadband grants, $24.1

million more than FY2016, and loan authority of $27.0 million, an increase of $6.5 million.

Congressional Research Service

45

Table 10. USDA Rural Development Appropriations

(budget authority in millions of dollars)

FY2014

FY2015

FY2016

P.L. 113-76

P.L. 113235

P.L. 114113

Salaries and expenses (direct)

203.4

224.2

225.8

Transfers from RHS, RBCS, RUS

454.0

454.0

Subtotal, salaries and expenses

657.4

FY2017

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 115-31

230.7

225.8

226.3

225.8

+0.0

+0.0%

457.0

467.8

447.0

457.0

450.0

-7.0

-1.5%

678.2

682.9

698.5

672.8

683.3

675.8

-7.0

-1.0%

1,279.6

1,298.4

1,616.4

1,616.9

1,653.5

1,639.4

1,654.9

+38.4

+2.4%

2. Rural Business-Cooperative Servicea

130.2

103.2

90.5

148.5

109.4

92.0

97.7

+7.2

+8.0%

3. Rural Utilities Service

501.6

501.7

559.3

550.1

598.8

586.0

639.9

+80.5

+14.4%

Office of the Under Secretary

0.9

0.9

0.9

0.9

0.9

0.9

0.9

+0.0

+0.3%

Total, Rural Development

2,569.7

2,582.4

2,950.0

3,014.9

3,035.4

3,001.7

3,069.2

+119.2

+4.0%

Subtotal, RD Loan Authority

35,945.4

35,870.1

36,686.7

36,543.0

36,862.1

36,792.7

37,288.9

+602.2

+1.6%

Less rescission of Cushion of Credit

-172.0

-179.0

-179.0

-151.5

-151.5

-165.0

-132.0

+47.0

-26.3%

Net, Rural Development (in cmte. rept.)

2,397.7

2,403.4

2,771.0

2,863.4

2,883.9

2,836.7

2,937.2

+166.2

+6.0%

Administrative expenses (transfer)

415.1

415.1

417.9

426.8

410.1

417.9

412.3

-5.6

-1.3%

Single family direct loans (§502)

24.5

66.4

60.8

60.9

67.7

60.9

67.7

+7.0

+11.4%

Loan authority

900.0

900.0

900.0

900.0

1,000.0

900.0

1,000.0

+100.0

+11.1%

Rural Development

Admin.

Request

Change: FY2016 to

FY2017 Enacted

Programs

1. Rural Housing Service

Alternate total (including rescissions)a

1. Rural Housing Service

Single family guaranteed loans: Loan authorityb

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

22.8

29.4

27.0

29.4

29.9

31.4

29.9

+3.0

+11.0%

Loan authority

248.6

248.3

248.5

333.2

305.1

340.1

335.1

+86.6

+34.8%

Subtotal, RHIF

462.4

510.9

505.6

517.1

507.7

510.2

509.9

+4.3

+0.9%

CRS-46

FY2014

FY2015

FY2016

P.L. 113-76

P.L. 113235

P.L. 114113

25,148.6

25,148.3

25,148.5

1,110.0

1,088.5

Multifamily housing revitalization

32.6

Mutual and self-help housing grants

Rural housing assistance grants

FY2017

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 115-31

25,233.2

25,305.1

25,240.1

25,335.1

+186.6

+0.7%

1,389.7

1,405.0

1,405.0

1,405.0

1,405.0

+15.3

+1.1%

24.0

37.0

37.4

40.0

40.0

41.4

+4.4

+11.9%

25.0

27.5

27.5

18.5

30.0

27.5

30.0

+2.5

+9.1%

32.2

32.2

32.2

28.7

33.7

32.2

33.7

+1.5

+4.5%

13.0

13.0

25.0

25.0

30.0

25.0

30.0

+5.0

+20.0%

2,200.0

2,200.0

2,200.0

2,200.0

2,200.0

2,200.0

2,600.0

+400.0

+18.2%

Community Facilities: Guarantees

3.8

3.5

3.5

0.0

3.3

3.5

3.3

-0.2

-5.1%

Loan authority

59.5

73.2

148.3

0.0

148.3

156.3

148.3

+0.0

+0.0%

Rural community development initiative

6.0

4.0

4.0

4.0

4.0

4.0

4.0

+0.0

+0.0%

Economic impact initiative grants

5.8

5.8

5.8

0.0

5.8

5.8

5.8

+0.0

+0.0%

Tribal college grants

4.0

4.0

4.0

8.0

4.0

4.0

4.0

+0.0

+0.0%

32.5

30.3

42.3

37.0

47.1

42.3

47.1

+4.8

+11.4%

Loan authority

2,259.5

2,273.2

2,348.3

2,200.0

2,348.3

2,356.3

2,748.3

+400.0

+17.0%

Total, Rural Housing Service

1,694.7

1,713.5

2,034.3

2,043.7

2,063.6

2,057.3

2,067.1

+32.8

+1.6%

Less transfer salaries and expenses

-415.1

-415.1

-417.9

-426.8

-410.1

-417.9

-412.3

+5.6

-1.3%

Rural Housing Service (programs)

1,279.6

1,298.4

1,616.4

1,616.9

1,653.5

1,639.4

1,654.9

+38.4

+2.4%

Loan authority

27,408.1

27,421.5

27,496.8

27,433.2

27,653.4

27,596.4

28,083.4

+586.6

+2.1%

67.0

47.0

35.7

35.8

36.9

36.9

35.3

-0.4

-1.0%

Rural Development

Loan authority

Admin.

Request

Change: FY2016 to

FY2017 Enacted

Other housing programs

Rental assistance (§521)

Rural Community Facilities Program

Community Facilities: Grants

Community Facilities: Direct loan authority

Subtotal, Rural Community Facilities

2. Rural Business Cooperative Service

Rural Business Program Account

Guaranteed Business and Industry Loans

CRS-47

FY2014

FY2015

FY2016

P.L. 113-76

P.L. 113235

P.L. 114113

Loan authority

958.1

919.8

919.8

Rural business enterprise grants

24.3

24.0

Rural business opportunity grants

2.3

Delta regional authority grants

Rural child poverty

FY2017

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 115-31

892.2

919.8

919.8

919.8

+0.0

+0.0%

24.0

30.0

35.0

24.0

24.0

+0.0

+0.0%

—

—

—

—

—

—

+0.0

+0.0%

3.0

3.0

3.0

—

5.0

3.0

6.0

+3.0

+100.0%

—

—

—

25.0

—

—

—

+0.0

+0.0%

Administrative expenses (transfer)

4.4

4.4

4.5

4.6

3.5

4.5

4.5

+0.0

+0.0%

Loan subsidy

4.1

5.8

5.2

5.5

5.5

5.5

5.5

+0.3

+5.0%

Loan authority

18.9

18.9

18.9

18.9

18.9

18.9

18.9

+0.0

+0.0%

Rural Economic Development: Loan authority

33.1

33.1

33.1

85.0

50.0

33.1

42.2

+9.1

+27.6%

Rural Cooperative Development grants

26.1

22.1

22.1

22.3

26.6

22.3

26.6

+4.5

+20.4%

Rural Microenterprise Investment: Grants

—

—

—

2.0

—

—

—

+0.0

+0.0%

Rural Microenterprise: Loan subsidy

—

—

—

2.9

—

—

—

+0.0

+0.0%

Loan authority

—

—

—

23.4

—

—

—

+0.0

+0.0%

Rural Business Investment Program: Grants

—

—

—

4.0

—

—

—

+0.0

+0.0%

Loan subsidy

—

—

—

2.6

—

—

—

+0.0

+0.0%

Loan authority

—

—

—

20.6

—

—

—

+0.0

+0.0%

Rural Energy for America: Grants

—

—

—

15.0

—

—

—

+0.0

+0.0%

Loan subsidy

3.5

1.4

0.5

3.5

0.5

0.4

0.4

-0.1

-29.6%

Loan authority

12.8

12.8

7.6

75.8

10.0

7.6

7.6

+0.0

+0.0%

Total, Rural Business-Cooperative

Service

134.6

107.7

94.9

153.1

112.9

96.5

102.2

+7.2

+7.6%

Rural Development

Admin.

Request

Change: FY2016 to

FY2017 Enacted

Rural Development Loan Fund

Program

CRS-48

FY2014

FY2015

FY2016

Rural Development

P.L. 113-76

P.L. 113235

P.L. 114113

Less transfer salaries and expenses

FY2017

Admin.

Request

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 115-31

Change: FY2016 to

FY2017 Enacted

-4.4

-4.4

-4.5

-4.6

-3.5

-4.5

-4.5

+0.0

+0.0%

Rural Bus.-Coop. Service (programs)a

130.2

103.2

90.5

148.5

109.4

92.0

97.7

+7.2

+8.0%

Loan authority

1,022.8

984.5

979.3

1,116.0

998.7

979.3

988.4

+9.1

+0.9%

Total, Rural Business-Cooperative Service

134.6

107.7

94.9

153.1

112.9

96.5

102.2

+7.2

+7.6%

Less rescission of Cushion of Credit

-172.0

-179.0

-179.0

-151.5

-151.5

-165.0

-132.0

+47.0

-26.3%

Net, Rural Bus.-Coop. Svc. (cmte. report)

-37.4

-71.3

-84.1

1.6

-38.6

-68.5

-29.8

+54.2

-64.5%

462.4

464.9

522.4

461.6

533.2

546.1

571.2

+48.8

+9.3%

Direct loan authority

1,200.0

1,200.0

1,200.0

803.8

1,200.0

1,200.0

1,200.0

+0.0

+0.0%

P.L. 83-566 loans

40.0

—

—

—

—

—

—

+0.0

+0.0%

Guaranteed loan authority

50.0

50.0

50.0

—

50.0

50.0

50.0

+0.0

+0.0%

Administrative expenses (transfer)

34.5

34.5

34.7

36.5

33.4

34.7

33.3

-1.4

-4.1%

Telecommunication loan subsidy

—

—

0.1

14.1

3.1

3.1

3.1

+3.0

+2852.9%

Telecommunication loan authority

690.0

690.0

690.0

690.0

690.0

690.0

690.0

+0.0

+0.0%

5,500.0

5,500.0

6,250.0

6,500.0

6,250.0

6,250.0

6,250.0

+0.0

+0.0%

Distance learning and telemedicine

24.3

22.0

22.0

35.0

25.0

22.0

26.6

+4.6

+20.9%

Broadband: Grants

10.4

10.4

10.4

39.5

33.0

10.4

34.5

+24.1

+232.6%

Alternate total (including rescission)a

3. Rural Utilities Service

Rural Water and Waste Disposal

Program

Loan subsidy and grants

Rural Electric and Telecom. Loans

Electricity loan authority

Distance Learning, Telemed.,

Broadband

CRS-49

FY2014

FY2015

FY2016

P.L. 113-76

P.L. 113235

P.L. 114113

Broadband: Direct loan subsidy

4.5

4.5

4.5

Direct loan authority

34.5

24.1

Subtotal, Rural Utilities Service

536.0

Less transfer salaries and expenses

FY2017

H. Cmte.

H.R. 5054

S. Cmte.

S. 2956

P.L. 115-31

—

4.6

4.5

4.5

+0.0

+0.0%

20.6

—

20.0

27.0

27.0

+6.5

+31.4%

536.2

594.0

586.6

632.3

620.7

673.1

+79.1

+13.3%

-34.5

-34.5

-34.7

-36.5

-33.4

-34.7

-33.3

+1.4

-4.1%

Total, Rural Utilities Service

501.6

501.7

559.3

550.1

598.8

586.0

639.9

+80.5

+14.4%

Loan authority

7,514.5

7,464.1

8,210.6

7,993.8

8,210.0

8,217.0

8,217.0

+6.5

+0.1%

Rural Development

Admin.

Request

Change: FY2016 to

FY2017 Enacted

Source: CRS, compiled from tables in the joint explanatory statements or committee reports for the referenced appropriations acts or bills.

Notes: Loan authority is the amount of loans that can be made and is not added to budget authority in the totals.

a. Amounts for the Rural Business Cooperative Service in this report are before the rescission from the Cushion of Credit account. This allows the agency total to

remain positive. Appropriations Committee report tables show the rescission in the agency section, causing the agency total to be less than zero. This CRS report

includes the Cushion of Credit rescission in the General Provisions section with changes in mandatory spending, as it is scored by CBO (Table 15).

b. This program became self-funding after enactment of loan guarantee fees being charged to banks that are sufficient to cover the loan subsidy.

c. Includes Section 504 housing repair, Section 515 rental housing, Section 524 site loans, Section 518 multi-family housing guarantees, single and multi-family housing

credit sales, Section 523 self-help housing land development, and farm labor housing.

CRS-50

Agriculture and Related Agencies: FY2017 Appropriations

Domestic Food Assistance87

Domestic food assistance represents over two-thirds of USDA’s budget. Funding is largely for

open-ended appropriated mandatory programs—that is, it varies with program participation (and

in some cases inflation) under the terms of the underlying authorization law. The largest

mandatory programs include the Supplemental Nutrition Assistance Program (SNAP, formerly

the Food Stamps Program) and the child nutrition programs (including the National School Lunch

Program and School Breakfast Program).

The three largest discretionary budget items are the Special Supplemental Nutrition Program for

Women, Infants, and Children (WIC); the Commodity Supplemental Food Program (CSFP); and

federal nutrition program administration.88

The enacted FY2017 appropriation would provide over $108 billion for domestic food assistance

(Table 11). This is a decrease of approximately $1.7 billion from FY2016. SNAP’s declining

participation is responsible for most of the difference.

In addition to the accounts’ appropriations language, the enacted appropriation’s general

provisions include additional funding, rescissions, and/or policy changes. These general

provisions are summarized in the sections to follow.

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

For the Under Secretary’s office, the enacted appropriation would provide approximately $0.8

million. This office received approximately equal funding in FY2016.

The enacted appropriation (§732) requires the coordination of FNS research efforts with USDA’s

Research, Education and Economics mission area. This is to include a research and evaluation

plan submitted to Congress.

SNAP and Other Programs under the Food and Nutrition Act

Appropriations under the Food and Nutrition Act (formerly the Food Stamp Act) support (1)

SNAP (and related grants), (2) a Nutrition Assistance Block Grant for Puerto Rico and nutrition

assistance block grants to American Samoa and the Commonwealth of the Northern Mariana

Islands (all in lieu of SNAP), (3) the cost of food commodities as well as administrative and

distribution expenses under the Food Distribution Program on Indian Reservations (FDPIR), (4)

the cost of commodities for the Emergency Food Assistance Program (TEFAP)—but not

administrative/distribution expenses, which are covered under the Com

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