Agriculture and Related Agencies:
FY2012 Appropriations

Jim Monke, Coordinator
Specialist in Agricultural Policy
August 11, 2011
Congressional Research Service
7-5700
www.crs.gov
R41964
CRS Report for Congress
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epared for Members and Committees of Congress

Agriculture and Related Agencies:

Summary
The Agriculture appropriations bill provides funding for all of the U.S. Department of Agriculture
(USDA) except the Forest Service, plus the Food and Drug Administration (FDA) and, in
alternating years, the Commodity Futures Trading Commission (CFTC). Appropriations
jurisdiction for the CFTC is split between two subcommittees—the House Agriculture
Appropriations Subcommittee and the Senate Financial Services Appropriations Subcommittee.
An FY2012 Agriculture appropriations bill has been passed by the House, but the Senate has yet
to mark up or report an Agriculture appropriations bill from committee.
In the House, the Agriculture appropriations subcommittee marked up its FY2012 bill by voice
vote on May 24, 2011. The following week, the full appropriations committee reported the bill
(H.R. 2112, H.Rept. 112-101) by voice vote, after adopting several amendments. On June 16,
2011, the House passed H.R. 2112 by a vote of 217-203 after adopting 22 amendments and
removing 4 provisions by point of order.
The House-passed bill would cut discretionary Agriculture appropriations to $17.25 billion, a
reduction of $2.7 billion (-14%) from FY2011 levels, and following a 15% cut in FY2011. Much
of the floor debate related to funding reductions for Women, Infants and Children (WIC) feeding
program (-11%), food safety (-10%), international food aid (-31%), preventing USDA payments
to Brazil in relation to the U.S. loss in the WTO cotton case, and programs promoting locally
produced food (USDA’s “know-your-farmer-know-your-food” initiative). Other more notable
non-money amendments that were adopted would prevent funding of blender pumps for higher
mixtures of ethanol, prevent funding related to the RU-486 abortion pill (proposed relative to the
USDA telemedicine program, but also affecting the FDA), prevent food aid to North Korea, and
prevent implementation of USDA policy on climate change adaptation. The bill also includes a
0.78% across-the-board rescission to discretionary accounts.
If H.R. 2112 were to be enacted, the 10-year change in discretionary agriculture appropriations
would be nearly flat, increasing at an average annualized rate of +0.6%. The nutrition portion of
discretionary appropriations would show a +2.6% average annual increase over 10 years, while
the rest of the bill would have an average annual decline of -0.4% over 10 years. If these amounts
are adjusted for the effect of inflation, the annual rates are each about 2% less.
The House-passed bill for FY2012 contains nearly $2 billion in rescissions and limitations on
mandatory farm bill programs. These actions are used to score savings that help meet the $17.25
billion discretionary budget allocation and help avoid deeper cuts to regular discretionary
accounts. The FY2012 bill has the same $2 billion level of rescissions and limitations as the
FY2011 appropriation. Had the FY2012 House-passed proposal not maintained this level of
reductions—which is significantly greater than in past years—even larger cuts might have been
required to the regular discretionary accounts. The FY2012 House bill proposes a unusually high
$1.4 billion reduction to mandatory farm bill programs, including $1 billion from conservation.
On August 2, 2011, the Budget Control Act of 2011 (P.L. 112-25) was enacted. It sets the total
FY2012 discretionary limit for all 12 appropriations bills at $1.043 trillion, $23.6 billion higher
(+2.3%) than the House budget resolution. Although the Agriculture appropriations bill has not
yet received an allocation from this new amount, some believe that the higher amount in P.L. 112-
25 implies that the final subcommittee allocation might be higher than in the House-passed bill.
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Agriculture and Related Agencies:

Contents
Most Recent Developments ............................................................................................................. 1
Scope of the Agriculture Appropriations Bill .................................................................................. 1
USDA Activities and Relationships to Appropriations Bills ..................................................... 1
Related Agencies ....................................................................................................................... 3
Discretionary vs. Mandatory Spending ..................................................................................... 3
Outlays, Budget Authority, and Program Levels ....................................................................... 4
Action on FY2012 Appropriations .................................................................................................. 5
Budget Resolution ..................................................................................................................... 6
Historical Trends ..................................................................................................................... 14
Limits on Mandatory Program Spending and Other Rescissions............................................ 20
Changes in Mandatory Program Spending (CHIMPS) ..................................................... 20
Rescissions ........................................................................................................................ 22
Selected USDA Agencies and Programs ....................................................................................... 23
Agricultural Research, Education, and Extension ................................................................... 23
Agricultural Research Service........................................................................................... 24
National Institute of Food and Agriculture........................................................................ 25
Economic Research Service .............................................................................................. 25
National Agricultural Statistics Service ............................................................................ 25
Marketing and Regulatory Programs....................................................................................... 27
Animal and Plant Health Inspection Service..................................................................... 27
Agricultural Marketing Service and Section 32 ................................................................ 29
Grain Inspection, Packers, and Stockyards Administration .............................................. 30
Food Safety.............................................................................................................................. 30
Food and Drug Administration (FDA) .............................................................................. 32
Food Safety and Inspection Service (FSIS) ...................................................................... 35
Farm Service Agency .............................................................................................................. 35
FSA Salaries and Expenses ............................................................................................... 35
FSA Farm Loan Programs................................................................................................. 36
Commodity Credit Corporation............................................................................................... 38
Crop Insurance......................................................................................................................... 40
Conservation............................................................................................................................ 41
Discretionary Conservation Programs............................................................................... 41
Mandatory Conservation Programs................................................................................... 42
Rural Development.................................................................................................................. 45
Rural Housing Service (RHS) ........................................................................................... 47
Rural Business-Cooperative Service (RBS)...................................................................... 49
Rural Utilities Service (RUS)............................................................................................ 50
Domestic Food Assistance....................................................................................................... 51
SNAP and Other Programs under the Food and Nutrition Act (Formerly the Food
Stamp Act)...................................................................................................................... 52
Child Nutrition Programs .................................................................................................. 53
The WIC Program ............................................................................................................. 53
Commodity Assistance Program ....................................................................................... 55
Nutrition Programs Administration (and the Congressional Hunger Center) ................... 56
Child Nutrition Grant Programs Authorized and Unfunded in H.R. 2112 ........................ 56
Other Funding Support...................................................................................................... 57
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Agricultural Trade and Food Aid............................................................................................. 58
Foreign Agricultural Service ............................................................................................. 58
Food for Peace Program (P.L. 480) ................................................................................... 59
McGovern-Dole Food for Education and Child Nutrition ................................................ 59
Commodity Credit Corporation—Export Credit Guarantee Programs ............................. 59
USDA’s “Know Your Farmer, Know Your Food” Initiative.................................................... 60

Figures
Figure 1. Agriculture and Related Agencies Appropriations, FY2011 ............................................ 2
Figure 2. Discretionary Agriculture Appropriations, FY1995-FY2011 and FY2012
Proposed ..................................................................................................................................... 14
Figure 3. Agriculture Appropriations: Mandatory vs. Discretionary............................................. 15
Figure 4. Agriculture Appropriations: Domestic Nutrition vs. Rest of Bill................................... 15
Figure 5. Domestic Nutrition Programs in Agriculture Appropriations: Mandatory vs.
Discretionary .............................................................................................................................. 15
Figure 6. Non-Nutrition Programs (Rest of Bill) in Agriculture Appropriations:
Mandatory vs. Discretionary ...................................................................................................... 15
Figure 7. Agriculture Appropriations in Inflation-Adjusted 2011 Dollars..................................... 17
Figure 8. Agriculture Appropriations as a Percentage of Total Federal Budget ............................ 17
Figure 9. Agriculture Appropriations as a Percentage of GDP...................................................... 17
Figure 10. Agriculture Appropriations per Capita of U.S. Population........................................... 17
Figure 11. USDA Research Budget, FY1972-FY2011.................................................................. 24
Figure 12. Mandatory Conservation Program Reductions, FY2003-FY2011 and FY2012
Proposed ..................................................................................................................................... 44
Figure A-1. Timeline of Enactment of Agriculture Appropriations, FY1999-FY2011.................. 63

Tables
Table 1. Congressional Action on FY2012 Agriculture Appropriations.......................................... 5
Table 2. Agriculture and Related Agencies Appropriations, by Title: FY2008-FY2011 and
FY2012 Proposed ......................................................................................................................... 7
Table 3. Agriculture and Related Agencies Appropriations, by Agency and Program:
FY2008-FY2011 and FY2012 Proposed ...................................................................................... 9
Table 4. Agriculture Appropriations: Percentage Changes over Time........................................... 16
Table 5. Agriculture Appropriations: Trends and Benchmarks: FY1997-FY2011 and
FY2012 Proposed ....................................................................................................................... 18
Table 6. Reductions in Mandatory Farm Bill Programs, FY2008-FY2011 and FY2012
Proposed ..................................................................................................................................... 21
Table 7. USDA REE Mission Area Appropriations, FY2008-FY2011 and FY2012
Proposed ..................................................................................................................................... 26
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Table 8. Appropriations for Food Safety....................................................................................... 33
Table 9. USDA Farm Loans: Budget and Loan Authority, FY2010-FY2011, and FY2012
Proposed ..................................................................................................................................... 37
Table 10. Mandatory Conservation Program Reductions, FY2011 and FY2012 Proposed........... 43
Table 11. Rural Development Appropriations, by Agency, FY2010-FY2011 and FY2012
Proposed ..................................................................................................................................... 46
Table 12. Rural Housing Service Appropriations, FY2010-FY2011 and FY2012 Proposed ........ 47
Table 13. Rural Business-Cooperative Service Appropriations, FY2010-FY2011 and
FY2012 Proposed ....................................................................................................................... 49
Table 14. Rural Utilities Service Appropriations, FY2010-FY2011 and FY2012 Proposed......... 51
Table A-1. Timeline of Enactment of Agriculture Appropriations, FY1999-FY2012 ................... 63

Appendixes
Appendix........................................................................................................................................ 63

Contacts
Key Policy Staff............................................................................................................................. 64
Author Contact Information........................................................................................................... 64

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Most Recent Developments
On August 2, 2011, the Budget Control Act of 2011 (P.L. 112-25) was enacted. Among other
actions, it sets the total FY2012 discretionary limit for all 12 appropriations bills at $1.043
trillion—the amount that will be used for the final FY2012 appropriations. This amount is $23.6
billion (+2.3%) higher than the $1.109 trillion discretionary limit in the FY2012 House-passed
budget resolution (H.Con.Res. 34). Although the Agriculture appropriations bill has not yet
received its final allocation, some believe that the higher amount in P.L. 112-25 implies that the
final subcommittee allocation might be higher than $17.2 billion discretionary amount in the
House-passed Agriculture appropriation bill (H.R. 2112) from June 16, 2011. But the effect on
subcommittees of limits within the nonsecurity (nondefense) subtotal is still undetermined.
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
the following agencies and departments:
• all of the U.S. Department of Agriculture (except the Forest Service, which is
funded by the Interior appropriations bill),
• the Food and Drug Administration (FDA) in the Department of Health and
Human Services, and
• in the House, the Commodity Futures Trading Commission (CFTC). In the
Senate, CFTC appropriations are handled by the Financial Services
Appropriations Subcommittee.
Jurisdiction for the appropriations bill rests with the House and Senate Committees on
Appropriations, particularly each committee’s Subcommittee on Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies. These subcommittees are separate from the
agriculture authorizing committees—the House Committee on Agriculture and the Senate
Committee on Agriculture, Nutrition, and Forestry.
USDA Activities and Relationships to Appropriations Bills
The U.S. Department of Agriculture (USDA) carries out widely varied responsibilities through
about 30 separate internal agencies and offices staffed by about 100,000 employees.1 USDA
spending is not synonymous with farm program spending. USDA also is responsible for many
activities outside of the Agriculture budget function, such as conservation and nutrition.
USDA divides its activities into “mission areas.” Food and nutrition programs are the largest
mission area, with more than two-thirds of the budget, to support the Supplemental Nutrition
Assistance Program (SNAP, formerly food stamps), the Women, Infants, and Children (WIC)

1 USDA, FY2012 Budget Summary and Annual Performance Plan, February 2011, p. 123, at
http://www.obpa.usda.gov/budsum/FY12budsum.pdf.
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program, and child nutrition programs.2 The second-largest USDA mission area, with about one-
fifth of USDA’s budget, is farm and foreign agricultural services. This broad mission area
includes the farm commodity price and income support programs of the Commodity Credit
Corporation, crop insurance, certain mandatory conservation and trade programs, farm loans, and
foreign food aid programs. Five other mission areas with a combined one-sixth of USDA’s budget
include natural resource and environmental programs, rural development, research and education
programs, marketing and regulatory programs, and food safety.
About 60% of the budget for the natural resources mission area is for the Forest Service, which is
funded through the Interior appropriations bill.3 The Forest Service is the only USDA agency not
funded through the Agriculture appropriations bill. It also accounts for over one-third of USDA’s
personnel, with about 35,000 staff years in FY2011.4
Comparing USDA’s organization and budget data to the Agriculture appropriations bill in
Congress is not always easy. USDA’s “mission areas” do not always correspond to the titles or
categories in the Agriculture appropriations bill.
• Foreign agricultural assistance is a separate title in the appropriations bill (Title
V, Figure 1), but is joined with domestic farm support in USDA’s “farm and
foreign agriculture” mission area.
• Title I in the agriculture appropriations bill (Agricultural Programs), covers four
USDA’s mission areas: agricultural research, marketing and regulatory programs,
food safety, and the farm support portion of farm and foreign agriculture.
Figure 1. Agriculture and Related Agencies Appropriations, FY2011
$125.3 billion
Title IV: Domestic nutrition
Title I: Agricultural programs
Title III: Rural Development
Title VI: FDA, CFTC
Title V: Foreign assistance
Title II: Conservation

Source: CRS.
Notes: Includes mandatory and discretionary appropriations. Includes CFTC (House-based jurisdiction).

2 USDA, FY2012 Budget Summary, at p. 117.
3 For more on Forest Service appropriations, see CRS Report R41896, Interior, Environment, and Related Agencies:
FY2012 Appropriations
.
4 USDA, FY2012 Budget Summary, at p. 123.
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The type of funding (mandatory vs. discretionary) also is an important difference between how
the appropriations bill and USDA’s mission areas are organized.
• Conservation in the appropriations bill (Title II) includes only discretionary
programs. The mandatory funding for conservation programs is included in Title
I of the appropriations bill as part of the Commodity Credit Corporation.
• Conversely, USDA’s natural resources mission area includes both discretionary
and mandatory conservation programs (and the Forest Service).
Related Agencies
In addition to the USDA agencies mentioned above, the Agriculture appropriations
subcommittees have jurisdiction over appropriations for two related agencies:
• The Food and Drug Administration (FDA) of the Department of Health and
Human Services (HHS), and
• The Commodity Futures Trading Commission (CFTC, an independent financial
markets regulatory agency)—in the House only.
The combined share of FDA and CFTC funding in the overall Agriculture and Related Agencies
appropriations bill is about 2% (Title VI).
Jurisdiction over CFTC appropriations is assigned differently in the House and Senate. Before
FY2008, the agriculture subcommittees in both the House and Senate had jurisdiction over CFTC
funding. In FY2008, Senate jurisdiction moved to the Financial Services Appropriations
Subcommittee. Although jurisdiction may be different, CFTC must reside in one or the other in
an enacted appropriation. Placement in the enacted version now alternates each year. In even-
numbered fiscal years, CFTC has resided in the Agriculture appropriation act. In odd-numbered
fiscal years, CFTC has resided in the enacted Financial Services appropriations act.
These agencies are included in the Agriculture appropriations bill because of their historical
connection to agricultural markets. However, the number and scope of non-agricultural issues has
grown at these agencies in recent decades. Some may argue that these agencies no longer belong
in the Agriculture appropriations bill. But despite the growing importance of non-agricultural
issues, agriculture and food issues are still an important component of FDA’s and CFTC’s work.
At FDA, medical and drug issues have grown in relative importance, but food safety
responsibilities that are shared between USDA and FDA have been in the media during recent
years and are the subject of legislation and hearings. At CFTC, the market for financial futures
contracts has grown significantly compared with agricultural futures contracts, but volatility in
agricultural commodity markets has been a subject of recent scrutiny at CFTC and in Congress.
Discretionary vs. Mandatory Spending
Discretionary and mandatory spending are treated differently in the budget process. Discretionary
spending is controlled by annual appropriations acts and consumes most of the attention during
the appropriations process. The subcommittees of the House and Senate Appropriations
Committees originate bills each year that provide funding and direct activities among
discretionary programs.
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Eligibility for participation in mandatory programs (sometimes referred to as entitlement
programs) is usually written into authorizing laws, and any individual or entity that meets the
eligibility requirements is entitled to the benefits authorized by the law. Congress generally
controls spending on mandatory programs through authorizing committees that set rules for
eligibility, benefit formulas, and other parameters, not through appropriations.
In FY2011, about 16% of the Agriculture appropriations bill was for discretionary programs, and
the remaining balance of 84% was classified as mandatory.
Major discretionary programs include certain conservation programs, most rural development
programs, research and education programs, agricultural credit programs, the Special
Supplemental Nutrition Program for Women, Infants, and Children (WIC), the Food for Peace
international food aid program, meat and poultry inspection, and food marketing and regulatory
programs. The discretionary accounts also include FDA and CFTC appropriations.
The largest component of USDA’s mandatory spending is for food and nutrition programs—
primarily the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps) and
child nutrition (school lunch and related programs)—along with the farm commodity price and
income support programs, the federal crop insurance program, and various agricultural
conservation and trade programs. Some mandatory spending, such as the farm commodity
programs, is highly variable and driven by program participation rates, economic and price
conditions, and weather patterns. Formulas are set in the 2008 farm bill (P.L. 110-246). But in
general, mandatory spending has tended to rise over time, particularly as food stamp participation
and benefits have risen in recent years because of the recession, rise in unemployment, and food
price inflation. See “Historical Trends” in a later section on funding.
Although these programs have mandatory status, many of these accounts receive funding in the
annual Agriculture appropriations act. For example, the food stamp and child nutrition programs
are funded by an annual appropriation based on projected spending needs. Supplemental
appropriations generally are made if these estimates fall short of required spending. The
Commodity Credit Corporation operates on a line of credit with the Treasury, but receives an
annual appropriation to reimburse the Treasury and to maintain its line of credit.
Outlays, Budget Authority, and Program Levels
In addition to the difference between mandatory and discretionary spending, four other terms are
important to understanding differences in discussions about the federal spending: budget
authority, obligations, outlays, and program levels.5
1. Budget authority = How much money Congress allows a federal agency to
commit to spend. It represents a limit on funding and is generally what Congress
focuses on in making most budgetary decisions. It is the legal basis to incur
obligations. Most of the amounts mentioned in this report are budget authority.
2. Obligations = How much money agencies commit to spend. Activities such as
employing personnel, entering into contracts, and submitting purchase orders.

5 See CRS Report 98-405, The Spending Pipeline: Stages of Federal Spending, by Bill Heniff Jr.
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3. Outlays = How much money actually flows out of an agency’s account. Outlays
may differ from appropriations (budget authority) because, for example,
payments on a contract may not flow out until a later year. For construction or
delivery of services, budget authority may be committed (contracted) in one
fiscal year and outlays may be spread across several fiscal years.
4. Program level = Sum of the activities supported or undertaken by an agency. A
program level may be much higher than its budget authority for several reasons.
• User fees support some activities (e.g., food or border inspection).
• The agency makes loans; for example, a large loan authority (program level)
is possible with a small budget authority (loan subsidy) because the loan is
expected be repaid. The appropriated loan subsidy makes allowances for
defaults and interest rate assistance.
• Transfers from other agencies, or funds are carried forward from prior years.
Action on FY2012 Appropriations
An FY2012 Agriculture appropriations bill has been passed by the House, but the Senate has yet
to mark up or report an Agriculture appropriations bill from committee (Table 1).
Table 1. Congressional Action on FY2012 Agriculture Appropriations
Subcommittee
Conference Report
Markup
Approval
House
House
Senate
Senate
Conf.
Public
House Senate Report
Vote
Report
Vote
Report
House Senate Law
5/24/2011

5/31/2011 6/16/2011






Voice vote

H.Rept.
H.R. 2112





112-101
Vote of

Voice vote
217-203
Source: CRS.
In the House, the Agriculture appropriations subcommittee marked up its FY2012 bill by voice
vote on May 24, 2011. A week later, the full appropriations committee reported the bill (H.R.
2112, H.Rept. 112-101) by voice vote, after adopting several amendments. On June 13, the Rules
Committee met to discuss the rule for floor consideration (H.Res. 300), leaving four provisions
unprotected from points of order that were considered controversial amendments from the full
committee markup, waiving points of order against the rest of the committee-reported bill, and
allowing an otherwise open rule for floor amendments to be offered. On June 14, floor
consideration began, and on June 16, 2011, the House passed H.R. 2112 by a vote of 217-203.
Agriculture was the first non-security FY2012 appropriations bill to pass the House, and the third
bill after Homeland Security and Military Construction-Veterans Affairs.
Under the open rule for floor consideration, Members offered 61 amendments: 22 were adopted,
33 were rejected, 3 were withdrawn, and 3 were disallowed by point of order. There were 38
recorded votes on amendments. Four other provisions in the committee-reported bill fell by point
of order, left unprotected by the rule.
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The House-passed bill would cut discretionary Agriculture appropriations by 14% below FY2011
levels, following a 15% cut in FY2011 from FY2010 levels (Table 2). Much of the floor debate
related to funding reductions for Women, Infants and Children (WIC) feeding program (-11%),
food safety (-10%), international food aid (-31%), preventing USDA payments to Brazil in
relation to the U.S. loss in the WTO cotton case, and programs promoting locally produced food
(USDA’s “know-your-farmer-know-your-food” initiative).
Other more notable non-money amendments that were adopted would prevent funding of blender
pumps for higher mixtures of ethanol, prevent funding related to the RU-486 abortion pill
(proposed relative to the USDA telemedicine program, but also affecting the FDA), prevent food
aid to North Korea, and prevent implementation of USDA policy on climate change adaptation.
The bill also includes a 0.78% across-the-board rescission to discretionary accounts (sec. 743),
which is reflected in tables throughout this report.
No action on Agriculture appropriations has occurred in the Senate beyond hearings. This report
will be updated to reflect further action. Some believe that the discretionary limits that are set in
the Budget Control Act (discussed in the next section) may expedite appropriations action now
that both chambers have a top line discretionary appropriations limit for FY2012.
Action on the FY2012 Agriculture appropriation is similar at this point to the FY2007 and
FY2008 bills in that the House has passed a bill but the full Senate has not yet considered one
(Table A-1 in the appendix). Stand-alone bills were enacted in FY2006 and FY2010. Omnibus
appropriations were used in FY2008 and FY2009. Year-long continuing resolutions were used in
FY2007 and FY2011. Table A-1 has links to each appropriation and annual CRS report.
Budget Resolution
The House passed a budget resolution (H.Con.Res. 34) on April 15, 2011, with a $1.019 trillion
discretionary budget limit for FY2012. This would be a $30.4 billion cut from FY2011 (-2.3%)
across all 12 appropriations bills. For the Agriculture bill, the subcommittee “302(b)” allocation
was $17.25 billion, which is $2.7 billion less than for FY2011 (-13%).6 The Senate did not pass a
budget resolution.
On August 2, 2011, the Budget Control Act of 2011 (P.L. 112-25) was enacted. Among other
actions, it sets the total FY2012 discretionary limit for all 12 appropriations bills at $1.043
trillion—an amount akin to the result of a joint budget resolution that will be used for the final
FY2012 appropriation bills. This amount is $23.6 billion (+2.3%) higher than the $1.109 trillion
discretionary limit in the House budget resolution (H.Con.Res. 34). The $1.043 trillion level is
$6.8 billion below the FY2011 discretionary total (-0.6%), rather than the $30.4 billion (-2.3%)
cut from FY2011 envisioned in the House budget resolution.
The Agriculture appropriations subcommittees have not yet received final discretionary
allocations under the new Budget Control Act amounts. Some believe, though, that the higher
amount in P.L. 112-25, relative to H.Con.Res. 34, implies that the final subcommittee allocation
might be higher than $17.2 billion discretionary amount in the House-passed Agriculture

6 House Appropriations Committee, “Regular Fiscal Year 2012 302(b) Suballocations,” May 10, 2011, at http://
appropriations.house.gov/UploadedFiles/051111FY2012SubcommitteeAllocations302bs.pdf. See also H.Rept. 112-96.
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appropriation bill (H.R. 2112). But the Budget Control Act also specifies security and non-
security amounts, and the effect on subcommittee allocations of these limits is still undetermined.
Table 2 summarizes the totals of the FY2011 Agriculture appropriations bill by title or broad
program. Table 3 provides more detail within each title by including accounts and agencies.
Supplemental appropriations are not included in the fiscal year totals because the primary purpose
of this report is to compare the regular annual appropriation across years.

Table 2. Agriculture and Related Agencies Appropriations, by Title: FY2008-FY2011
and FY2012 Proposed
(budget authority in millions of dollars)
% change
Change from FY2011

FY2008
FY2010
FY2011
from
FY2012
to FY2012-House
FY2010
P.L.
P.L.
P.L.
to
House a
Title in Appropriations Bill
110-161
111-80
112-10
FY2011
H.R. 2112
$ %
Agricultural
Programs
25,620 30,192 29,490
-2% 24,437
-5,053
-17%
Mandatory
18,987 22,855 22,605
-1% 18,293
-4,311
-19%
Discretionary
6,633 7,336 6,885
-6% 6,144
-741 -11%
Conservation
Programs
938
1,009 889 -12% 784 -106 -12%
Rural
Development
2,334 2,979 2,638 -11% 2,238
-399 -15%
Domestic Food Programs
60,057
82,783
89,655
+8%
96,266
+6,611
+7%
Mandatory
53,683 75,128 82,527 +10% 89,944
+7,417
+9%
Discretionary
6,374 7,655 7,128
-7% 6,322
-807 -11%
Foreign
Assistance
1,476 2,089 1,891
-9% 1,391
-500 -26%
FDA
1,717 2,357 2,457 +4% 2,155
-302 -12%
CFTC (if in agriculture bill) b 111

169


171
-32
-16%
CFTC (if in financial services bill) b

202
+20%


General
Provisions
-1,490 -238 -1,972 +728% -1,986
-14
+1%
Total in agriculture bill (no adjustment for jurisdiction over CFTC)
Mandatory
72,670 97,983 105,131
+7% 108,237
+3,106
+3%
Discretionary
18,093 23,356 19,918
-15% 17,219
-2,699
-14%
Total
90,763 121,340 125,049
+3% 125,456
+407
+0%
Totals without CFTC in any column (Senate basis) b
Discretionary
17,982 23,187 19,918
-14% 17,048
-2,870
-14%
Total
90,652 121,171 125,049
+3% 125,285
+237
+0%
Totals with CFTC in all columns (House basis)b
Discretionary
18,093 23,356 20,120
-14% 17,219
-2,901
-14%
Total
90,763 121,340 125,251
+3% 125,456
+205
+0%
Source: CRS, compiled from H.R. 2112, H.Rept. 112-101, P.L. 112-10, P.L. 111-80, P.L. 110-161, and
unpublished appropriations tables.
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Notes: na = not available. Regular appropriations only; does not include supplemental appropriations of $2.393
billion in FY2008, and $549 million in FY2010.
a. Amounts shown for H.R. 2112 are estimates that reflect the across-the-board 0.78% rescission to
discretionary accounts in sec. 743.
b. CFTC is shown in different ways because of subcommittee jurisdiction differences between the House and
Senate to make totals comparable.


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Table 3. Agriculture and Related Agencies Appropriations, by Agency and Program: FY2008-FY2011 and FY2012 Proposed
(budget authority in millions of dollars)
% change
Change from FY2011

FY2008
FY2009
FY2010
FY2011
from
FY2012
to FY2012-House
FY2010
P.L. 110-
P.L. 111-
P.L. 112-
to
Admin.
House a
Agency or Major Program
161
P.L. 111-8
80
10
FY2011
Request
H.R. 2112
$ %
Title I: Agricultural Programs









Offices of Secretary and Chief Economist
15.5
15.8
19.3
17.6
-9%
22.1
15.3
-2.3
-13%
Healthy Food Financing Initiative





35.0


Chief
Information
Officer
16.2 17.5 61.6 39.9 -35% 63.6 33.7 -6.2 -16%
Office
of
Inspector
General
79.5 85.8 88.7 88.5 0% 90.8 79.4 -9.2 -10%
Buildings, facilities, and rental payments
194.9
244.2
293.1
246.5
-16%
255.2
198.5
-47.9
-19%
Other Departmental administration offices b
131.0 140.9 164.1 145.6 -11% 169.9 114.2 -31.4 -22%
Under Secretaries (four offices in Title I) c
2.5 2.6 3.5 3.5 0% 3.6 2.9 -0.5
-14%
Research, Education and Economics









Agricultural Research Service
1,167.8
1,187.2
1,250.5
1,133.2
-9%
1,137.7
987.6
-145.6
-13%
National Institute of Food and Agriculture
1,183.8
1,222.2
1,343.2
1,214.8
-10%
1,204.8
1,012.0
-202.8
-17%
Economic
Research
Service
77.4 79.5 82.5 81.8 -1% 86.0 69.5 -12.4 -15%
National Agricultural Statistics Service
162.2
151.6
161.8
156.4
-3%
165.4
148.3
-8.1
-5%
Marketing and Regulatory Programs









Animal and Plant Health Inspection Service
867.6
881.4
909.7
866.8
-5%
837.4
787.0
-79.8
-9%
Agric. Marketing Service
114.7
105.3
92.5
87.9
-5%
97.4
78.5
-9.4
-11%
Section
32
(permanent+transfers)
1,169.0 1,169.0 1,320.1 1,065.0 -19% 1,080.0 1,080.0 +15.0 +1%
Grain Inspection, Packers & Stockyards
38.5
40.3
42.0
40.3
-4%
44.2
36.7
-3.5
-9%
Food Safety









Food Safety & Inspection Service
930.1
971.6
1,018.5
1,006.5
-1%
1,011.4
964.4
-42.1
-4%
Farm and Commodity Programs









Farm Service Agency: Salaries and Exp. d
1,435.2 1,487.6 1,574.9 1,521.2
-3% 1,718.2 1,433.9 -87.3
-6%
CRS-9

Agriculture and Related Agencies:

% change
Change from FY2011

FY2008
FY2009
FY2010
FY2011
from
FY2012
to FY2012-House
FY2010
P.L. 110-
P.L. 111-
P.L. 112-
to
Admin.
House a
Agency or Major Program
161
P.L. 111-8
80
10
FY2011
Request
H.R. 2112
$ %
FSA Farm Loan Program: Subsidy Level
148.6
147.4
140.6
147.7
+5%
110.7
107.4
-40.3
-27%
FSA Farm Loans: Loan Authority e
3,427.6 3,427.6 5,083.9 4,642.0
-9% 4,747.0 4,787.0 +145.0
+3%
Dairy indemnity, mediation, water protect.. f 8.2 11.1 10.3 9.3 -10% 4.5 7.2 -2.1 -23%
Risk Management Agency Salaries & Exp.
76.1
77.2
80.3
78.8
-2%
82.3
67.5
-11.4
-14%
Federal Crop Insurance Corporation g
4,818.1 6,582.9 6,455.3 7,613.2 +18% 3,142.4 3,142.4 -4,470.9 -59%
Commodity Credit Corporation g
12,983.0 11,106.3 15,079.2 13,925.6
-8% 14,071.0 14,071.0 +145.4
+1%
Subtotal









Mandatory
18,987.0 18,877.2 22,855.4 22,604.7
-1% 18,293.5 18,293.5 -4,311.2
-19%
Discretionary
6,632.9 6,850.2 7,336.1 6,885.4
-6% 7,139.9 6,144.0 -741.5 -11%
Subtotal
25,619.9 25,727.5 30,191.6 29,490.1
-2% 25,433.4 24,437.5 -5,052.7
-17%
Title II: Conservation Programs









Conservation
Operations
834.4 853.4 887.6 870.5 -2% 898.6 764.9 -105.6 -12%
Watershed & Flood Prevention
29.8
24.3
30.0
0.0
-100%
0.0
3.0
+3.0

Watershed
Rehabilitation
Program
19.9 40.0 40.2 18.0 -55% 0.0 14.9 -3.1 -17%
Resource Conservation & Development
50.7
50.7
50.7
0.0
-100%
0.0
0.0
0.0
0%
Under
Secretary,
Natural
Resources
0.7 0.8 0.9 0.9 0% 0.9 0.8 -0.1
-11%
Subtotal
937.5 969.2
1,009.4 889.4 -12% 899.6 783.6 -105.8 -12%
Title III: Rural Development









Rural Housing Service
881.6
1,293.5
1,424.2
1,224.0
-14%
1,034.3
1,037.3
-186.6
-15%
RHS Loan Authority e 6,095.4
8,122.9
13,904.7
25,750.7
+85% 25,333.9 26,028.3 +277.6
+1%
Rural Business-Cooperative Service
173.2
127.2
184.8
127.8
-31%
180.5
93.6
-34.3
-27%
RBCS Loan Authority e
1,265.2 1,085.4 1,215.7 952.2 -22% 911.7 679.2 -273.0 -29%
Rural Utilities Service
616.9 614.2 653.4 596.7 -9% 537.0 516.9 -79.8 -13%
RUS Loan Authority e
9,179.5 7,765.5 9,287.2 9,163.3
-1% 7,572.0 8,128.2 -1,035.0 -11%
CRS-10

Agriculture and Related Agencies:

% change
Change from FY2011

FY2008
FY2009
FY2010
FY2011
from
FY2012
to FY2012-House
FY2010
P.L. 110-
P.L. 111-
P.L. 112-
to
Admin.
House a
Agency or Major Program
161
P.L. 111-8
80
10
FY2011
Request
H.R. 2112
$ %
Salaries and Expenses (including transfers)
661.7
696.8
715.5
688.3
-4%
691.0
589.9
-98.4
-14%
RD
Under
Secretary
0.6 0.6 0.9 0.9 0% 0.9 0.8 -0.1
-11%
Subtotal
2,334.0 2,732.3 2,978.8 2,637.8 -11% 2,443.6 2,238.5 -399.3 -15%
Subtotal,
RD
Loan
Authority
16,540.1 16,973.8 24,407.5 35,866.1
+47% 33,817.6 34,835.7 -1,030.4
-3%
Title IV: Domestic Food Programs









Child
Nutrition
Programs
13,901.5 14,951.9 16,855.8 17,319.9
+3% 18,810.6 18,770.6 +1,450.6
+8%
WIC
Program
6,020.0 6,860.0 7,252.0 6,734.0
-7% 7,390.1 6,001.1 -733.0 -11%
SNAP & other Food & Nutrition Act Programs
39,782.7
53,969.2
58,278.2
65,206.7
+12%
73,183.8
71,173.3
+5,966.6
+9%
Commodity
Assistance
Programs
210.3 230.8 248.0 246.1 -1% 249.6 196.0 -50.2 -20%
Nutrition
Programs
Administration
141.7 142.6 147.8 147.5 0% 170.5 124.0 -23.5 -16%
Office
of
Under
Secretary
0.6 0.6 0.8 0.8 0% 0.8 0.7 -0.1
-12%
Subtotal









Mandatory
53,683.2 68,921.2 75,128.0 82,526.6
+10% 91,994.4 89,943.9 +7,417.3
+9%
Discretionary
6,373.6 7,234.0 7,654.6 7,128.5
-7% 7,811.0 6,321.7 -806.7 -11%
Subtotal
60,056.8 76,155.2 82,782.6 89,655.1
+8% 99,805.4 96,265.6 +6,610.5
+7%
Title V: Foreign Assistance









Foreign
Agric.
Service
158.4 165.4 180.4 185.6 +3% 229.7 171.2 -14.5 -8%
Public Law (P.L.) 480
1,213.5
1,228.6
1,692.8
1,499.8
-11%
1,692.8
1,034.5
-465.4
-31%
McGovern-Dole Food for Education
99.3
100.0
209.5
199.1
-5%
200.5
178.6
-20.5
-10%
CCC Export Loan Salaries
5.3
5.3 6.8 6.8 0% 6.8 6.8 0.0 0%
Subtotal

1,476.5 1,499.4 2,089.5 1,891.3
-9% 2,129.9 1,391.0 -500.4 -26%
Title VI: FDA & Related Agencies









Food and Drug Administration
1,716.8
2,051.4
2,357.1
2,457.0
+4%
2,744.0
2,155.3
-301.7
-12%
Commodity Futures Trading Commission h 111.3

168.8

+20%
308.0
170.6
-31.7
-16%
CRS-11

Agriculture and Related Agencies:

% change
Change from FY2011

FY2008
FY2009
FY2010
FY2011
from
FY2012
to FY2012-House
FY2010
P.L. 110-
P.L. 111-
P.L. 112-
to
Admin.
House a
Agency or Major Program
161
P.L. 111-8
80
10
FY2011
Request
H.R. 2112
$ %
Title VII: General Provisions









Limit mandatory farm bill programs
-335.0 -484.0 -511.0 -924.0 +81% -699.5
-1,439.0 -515.0 +56%
Section
32
rescission
-684.0 -293.5 -52.5

-100%
0.0 -150.0 -150.0
na
Other
appropriations
627.9 -42.7 380.8 33.2 -91% 0.0 0.0 -33.2 -100%
Other rescissions & reductions
-1,098.5
-60.3
-55.5
-1,081.0
+1848%
-549.5
-397.0
+684.0
-63%
Subtotal

-1,489.5 -880.5 -238.2
-1,971.8 +728%
-1,249.0
-1,986.0 -14.2 +1%
RECAPITULATION:









I:
Agricultural
Programs
25,619.9 25,727.5 30,191.6 29,490.1
-2% 25,433.4 24,437.5 -5,052.7
-17%
Mandatory
18,987.0 18,877.2 22,855.4 22,604.7
-1% 18,293.5 18,293.5 -4,311.2
-19%
Discretionary
6,632.9 6,850.2 7,336.1 6,885.4
-6% 7,139.9 6,144.0 -741.5 -11%
II: Conservation Programs
937.5
969.2
1,009.4
889.4
-12%
899.6
783.6
-105.8
-12%
III:
Rural
Development
2,334.0 2,732.3 2,978.8 2,637.8 -11% 2,443.6 2,238.5 -381.7 -14%
IV: Domestic Food Programs
60,056.8
76,155.2
82,782.6
89,655.1
+8%
99,805.4
96,265.6
+6,610.5
+7%
Mandatory
53,683.2 68,921.2 75,128.0 82,526.6 +10% 91,994.4 89,943.9 +7,417.3
+9%
Discretionary
6,373.6 7,234.0 7,654.6 7,128.5
-7% 7,811.0 6,321.7 -806.7 -11%
V:
Foreign
Assistance
1,476.5 1,499.4 2,089.5 1,891.3
-9% 2,129.9 1,391.0 -500.4 -26%
VI:
FDA
1,716.8 2,051.4 2,357.1 2,457.0 +4% 2,744.0 2,155.3 -301.7 -12%
CFTC in Agriculture appropriations h 111.3
168.8



308.0
170.6
-31.7
-16%
CFTC in Financial Services appropriations h

146.0
202.3
+20%



VII: General Provisions
-1,489.5
-880.5
-238.2
-1,971.8
+728%
-1,249.0
-1,986.0
-14.2
+1%
Total in agriculture bill (no adjustment for jurisdiction over CFTC)
Mandatory
72,670.2 87,798.4 97,983.4 105,131.3
+7% 110,287.9 108,237.4 +3,106.0
+3%
Discretionary
18,093.0 20,456.0 23,356.1 19,917.5
-15% 22,226.9 17,218.6 -2,698.9
-14%
Total
90,763.2 108,254.4 121,339.6 125,048.9
+3% 132,514.8 125,456.0
+407.1
+0%
CRS-12

Agriculture and Related Agencies:

% change
Change from FY2011

FY2008
FY2009
FY2010
FY2011
from
FY2012
to FY2012-House
FY2010
P.L. 110-
P.L. 111-
P.L. 112-
to
Admin.
House a
Agency or Major Program
161
P.L. 111-8
80
10
FY2011
Request
H.R. 2112
$ %
Totals without CFTC in any column (Senate basis) h
Discretionary
17,981.7 20,456.0 23,187.3 19,917.5
-14% 21,918.9 17,048.0 -2,869.5
-14%
Total
90,652.0 108,254.4 121,170.8 125,048.9
+3% 132,206.8 125,285.4 +236.5
+0%
Totals with CFTC in all columns (House basis) h
Discretionary
18,093.0 20,602.0 23,356.1 20,119.8
-14% 22,226.9 17,218.6 -2,901.2
-14%
Total
90,763.2 108,400.4 121,339.6 125,251.1
+3% 132,514.8 125,456.0 +204.9
+0%
Source: CRS, compiled from House-passed H.R. 2112, H.Rept. 112-101, P.L. 112-10, P.L. 111-80, P.L. 111-8, P.L. 110-161, and unpublished appropriations tables.
Notes: Does not include supplemental appropriations. Supplemental appropriations were $2.4 bil ion in FY2008 (P.L. 110-252 and P.L. 110-329 provided $1.345 billion for
foreign assistance, $695 million for conservation, $188 million for rural development, and $5 million each for APHIS, ARS, and OIG); $27.1 billion in FY2009 (P.L. 111-5 and
P.L. 111-32 provided $22 million to OIG, $24 million for USDA buildings, $176 million for ARS buildings, $50 million to FSA salaries, $91 million for farm loans, $732
million for disaster assistance, $290 million for watershed and flood prevention, $50 million for watershed rehabilitation program, $330 million to Rural Housing Service,
$150 million to Rural Business Cooperative Service, $3.9 billion to Rural Utilities Service, $100 million to child nutrition, $500 million to WIC, $20 billion to food stamps,
$150 million to commodity assistance programs, $700 million to foreign assistance); and $549 million in FY2010 (P.L. 111-118 and P.L. 111-212 provided $400 million for
domestic nutrition, $150 million for foreign assistance, $31 million for farm loans, $18 million for forestry assistance, and offset by a $50 million reduction in BCAP).
a. Amounts shown for H.R. 2112 are estimates that reflect the across-the-board 0.78% rescission to discretionary accounts in sec. 743.
b. Includes offices for Advocacy and Outreach; Chief Financial Officer; Assistant Secretary and Office for Civil Rights; Assistant Secretary for Administration; Hazardous
Materials Mgt.; Dept. Administration; Assistant Secretary for Congressional Relations; Office of Communications; General Counsel; Office of Homeland Security.
c. Includes four Under Secretary offices: Research, Education and Economics; Marketing and Regulatory Programs; Food Safety; and Farm and Foreign Agriculture.
d. Includes regular FSA salaries and expenses, plus transfers for farm loan program salaries and expenses and farm loan program administrative expenses. However,
amounts transferred from the Foreign Agricultural Service for export loans and P.L. 480 administration are included in the originating account.
e. Loan authority is the amount of loans that can be made or guaranteed with a loan subsidy, which covers subsidized interest rates and projected loan losses. The loan
authority amount is not added in the budget authority subtotals or totals.
f.
Includes Dairy Indemnity Program, State Mediation Grants, and Grassroots Source Water Protection Program.
g. Commodity Credit Corporation and Federal Crop Insurance Corporation each receive “such sums as necessary.” Estimates are used in the appropriations bill reports.
h. CFTC is shown in different ways because of jurisdiction differences to make totals comparable.

CRS-13

Agriculture and Related Agencies:

Historical Trends
After years of growth, Agriculture appropriations peaked in absolute terms in FY2010. This
section offers perspective on type of funding (mandatory or discretionary), purpose (nutrition vs.
other), and relationships to inflation, GDP, and the federal budget. The House-passed version of
H.R. 2112 for FY2012 is the basis for comparison throughout most of this section .7
Figure 2 shows total discretionary appropriations levels in the Agriculture appropriations bill.
The total amount is divided between discretionary domestic nutrition assistance programs and the
rest of the bill. Over the past 10 years (FY2002 through the FY2012 House-passed bill), total
discretionary funding in the Agriculture appropriations bill would be nearly flat, increasing at an
average annualized rate of 0.6% (Table 4). The nutrition portion shows a 2.6% average annual
increase over 10 years, while the rest of the bill would have an annual decline of -0.4%.
Figure 2. Discretionary Agriculture Appropriations, FY1995-FY2011 and FY2012
Proposed
$ billion
Total discretionary
25
Domestic nutrition
Rest of bil
20
15
10
5
0
1995 1997 1999 2001 2003 2005 2007 2009 2011

Source: CRS. FY2012 data are from House-passed H.R. 2112.
Notes: Includes only regular annual appropriations for USDA (except the Forest Service), FDA, and CFTC
(regardless of jurisdiction). Fiscal year budget authority. The label “Domestic nutrition” includes WIC,
commodity assistance programs, and nutrition programs administration.
Figure 3 shows the Agriculture appropriations bill divided between mandatory and discretionary
spending. Mandatory appropriations have increased at a 6.6% average annualized rate over 10
years, while discretionary appropriations grew at the 0.6% rate discussed above. Thus the total
for the bill (mandatory plus discretionary) reflects a 5.5% annual increase over 10 years.
Figure 4 shows the same bill total as in Figure 3, but divided between domestic nutrition and
other program spending. The share going to nutrition has risen from 46% in FY2000 to 77% in

7 For percentage changes relative to the FY2011 enacted appropriation, see “Historical Trends” in CRS Report R41475,
Agriculture and Related Agencies: FY2011 Appropriations.
Congressional Research Service
14
























Agriculture and Related Agencies:

the FY2012 House-passed bill (Table 5). Since FY2002, total nutrition spending has increased at
an average 9.8% annual rate, compared to a -1.9% annual change for the “rest of the bill” (the rest
of USDA but excluding the Forest Service, plus FDA and CFTC). Nutrition spending has
increased faster than non-nutrition for the most recent 5-, 10-, and 15-year periods (Table 4).
Figure 3. Agriculture Appropriations:
Figure 4. Agriculture Appropriations:
Mandatory vs. Discretionary
Domestic Nutrition vs. Rest of Bill
$ billion
$ billion
135
Mandatory
135
Rest of bill
120
Discretionary
120
Domestic nutrition
105
36 29
105
39
90
32
90
75
41 41
98105108
75
31
88
39 33
60
83 80
60
70 68
73
28 23
41 41 35 33
45
45
13
55
62 60 57 57
12 20
50
83 90 96
76
40
30
36 41
30
60
40 40 40
15
37 35 35 34 38 42 47 52 59 57
15
13 13 13 14 14 14 15 16 18 17 17 17 18 18 21 23 20 17
0
0
1995 1997 1999 2001 2003 2005 2007 2009 2011

1995 1997 1999 2001 2003 2005 2007 2009 2011

Source: CRS. FY2012 data from H.R. 2112.
Source: CRS. FY2012 data from H.R. 2112.
Notes: Includes regular annual appropriations only
Notes: The largest domestic nutrition programs
for USDA (except the Forest Service), FDA, and
are the child nutrition programs, SNAP (food
CFTC (regardless of where funded). Fiscal year
stamps), and WIC. “Other” includes the rest of
budget authority.
USDA (except the Forest Service), FDA, and CFTC.
Figure 5. Domestic Nutrition Programs
Figure 6. Non-Nutrition Programs (Rest
in Agriculture Appropriations:
of Bill) in Agriculture Appropriations:
Mandatory vs. Discretionary
Mandatory vs. Discretionary
$ billion
$ billion
135
Mandatory
135
Mandatory
120
Discretionary
120
Discretionary
105
105
90
90
75
75
60
60
45
75 83 90
69
45
54
30
30
36 36 36 33
31 30
31 31 30 33 37 42 47 53 52
24 20 27 21 30 28
23 23
19 19
18
15
18
15
14 4 3 10
4 4 4 4 4 4 4 5 5 5 6 6 6 6 7 8 7 6
11
0
9 9 9 9 9 10 11 11 13 12 11 11 12 12 13 16 13
0
1995 1997 1999 2001 2003 2005 2007 2009 2011

1995 1997 1999 2001 2003 2005 2007 2009 2011

Source: CRS. FY2012 data from H.R. 2112.
Source: CRS. FY2012 data from H.R. 2112.
Notes: Mandatory nutrition programs include
Notes: Includes all of USDA except nutrition and
SNAP (food stamps) and the child nutrition
Forest Service, and FDA and CFTC. Mandatory
programs. WIC is the largest discretionary nutrition
includes the farm commodity programs, crop
program.
insurance, some conservation, and trade programs.
Most nutrition program spending is mandatory spending, primarily in the Supplemental Nutrition
Assistance Program (SNAP) and child nutrition (school lunch and related programs). Figure 5
takes the orange-colored bars from Figure 4 (total domestic nutrition programs) and divides them
into mandatory and discretionary. Over the past 10 years, mandatory nutrition spending rose at an
average rate of 10.5% per year, while the discretionary portion increased at about 2.6% per year.
Spending on the non-nutrition programs in the bill is more evenly divided between mandatory
and discretionary, more variable over time, and generally growing more slowly than nutrition.
Congressional Research Service
15

Agriculture and Related Agencies:

Figure 6 divides the yellow-colored bars in Figure 4 into mandatory and discretionary. This
subtotal of mandatory spending has shown a -1.9% average annual change over 10 years, and
+5.1% per year over 15 years. Discretionary spending on this component—arguably where
appropriators have the most control—would be nearly flat since 2002 under the House-passed bill
at -0.4% average annual rate, and -6.4% annual rate over the past 5 years (Table 4).
Table 4. Agriculture Appropriations: Percentage Changes over Time

Annualized change from the past to proposed FY2012 in H.R. 2112

Based on Nominal Value
Based on Real Value (2011 $)
FY2011
FY2007
FY2002
FY1997
FY2011
FY2007
FY2002
FY1997

(1 yr.)
(5 yrs.)
(10 yrs.) (15 yrs.)
(1 yr.)
(5 yrs.)
(10 yrs.) (15 yrs.)
Discretionary
total -14.4% -0.7% +0.6% +1.9% -15.6% -2.1% -1.5% -0.1%
Domestic nutrition a -11.3% +2.7% +2.6% +2.7% -12.5% +1.3% +0.4% +0.7%
Rest of bill b
-16.1% -2.4% -0.4% +1.4% -17.3% -3.7% -2.5% -0.6%
Mandatory
total
+3.0% +6.3% +6.6% +6.8% +1.5% +4.8% +4.4% +4.8%
Domestic
nutrition +9.0% +11.8% +10.5% +6.2% +7.5% +10.2% +8.2% +4.2%
Rest of bill
-19.1%
-8.4%
-2.6%
+11.0%
-20.2%
-9.6%
-4.7%
+8.9%
Total
bill
+0.2% +5.1% +5.5% +5.9% -1.2% +3.7% +3.3% +3.8%
Domestic
nutrition +7.4% +11.0% +9.8% +5.9% +5.9% +9.5% +7.5% +3.9%
Rest of bill
-18.0%
-6.4%
-1.9%
+5.7%
-19.1%
-7.7%
-3.9%
+3.7%
Source: CRS.
Notes: Includes regular annual appropriations for all of USDA (except the Forest Service), the Food and Drug
Administration, and—for consistency—the Commodity Futures Trading Commission (regardless of jurisdiction).
Excludes supplemental appropriations. Reflects rescissions.
a. The largest domestic nutrition programs are the child nutrition programs, the Special Supplemental
Nutrition Assistance Program (SNAP, formerly food stamps)—both of which are mandatory—and the
Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), which is discretionary.
b. “Rest of bill” includes the non-nutrition remainder of USDA (except the Forest Service), FDA, and CFTC.
Within that group, mandatory programs include the farm commodity programs, crop insurance, and some
conservation and foreign aid/trade programs.
The Agriculture appropriations totals can also be viewed in inflation-adjusted terms and in
comparison to other economic variables (Figure 7 through Figure 10, and Table 5). If the
general level of inflation is subtracted, total Agriculture appropriations show positive “real”
growth—that is, growth above the rate of inflation. The total in the House-passed bill has
increased at an average annual real rate of 3.3% over the past 10 years. Within that total, nutrition
programs have increased at a higher average annual real rate of 7.5%, while the rest of the bill
had a -3.9% average annual real change over 10 years (Table 4).
Relative to the entire federal budget, the Agriculture bill’s share has declined from 4.4% of the
federal budget in FY1995 to 2.7% in FY2009, before rising again to about 3.4% since FY2010
(Figure 8). The share for nutrition programs has declined (from 2.5% in FY1995 to 1.8% in
FY2008), although the increase since the recent recession would return the share to 2.6% in
FY2012, a level last seen in FY1995. The share for the rest of the bill also has declined from
1.8% in FY1995 and 2.1% in FY2001, to about 0.8% in FY2012 under the H.R. 2112.
Congressional Research Service
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Agriculture and Related Agencies:

Figure 7. Agriculture Appropriations in
Figure 8. Agriculture Appropriations as a
Inflation-Adjusted 2011 Dollars
Percentage of Total Federal Budget
$ billion
Total bill (2011 dollars)
% Fed. Bud.
Total bill
135
Domestic nutrition
4.5%
Domestic nutrition
120
Rest of bill
Rest of bil
105
90
3.0%
75
60
45
1.5%
30
15
0
0.0%
1995 1997 1999 2001 2003 2005 2007 2009 2011

1995 1997 1999 2001 2003 2005 2007 2009 2011

Source: CRS. FY2012 data from H.R. 2112.
Source: CRS. FY2012 data from H.R. 2112.
Notes: Adjusted with the GDP Price Index, FY2012
Notes: Total federal budget authority, FY2012
President’s Budget, Historical Tables, Table 10.1.
President’s Budget, Historical Tables, Table 5.1.
Figure 9. Agriculture Appropriations as a
Figure 10. Agriculture Appropriations
Percentage of GDP
per Capita of U.S. Population
% of GDP
Total bil
2011 $/capita
Total bill
1.00%
Domestic nutrition
Domestic nutrition
Rest of bil
400
Rest of bil
0.75%
300
0.50%
200
0.25%
100
0.00%
0
1995 1997 1999 2001 2003 2005 2007 2009 2011

1995 1997 1999 2001 2003 2005 2007 2009 2011

Source: CRS. FY2012 data from H.R. 2112.
Source: CRS. FY2012 data from H.R. 2112.
Notes: Gross domestic product (GDP) is from the
Notes: Population figures from Census Bureau, U.S.
President’s Budget, Historical Tables, Table 10.1.
Population Projections, and Statistical Abstract of the
United States
.
As a percentage of gross domestic product (GDP), Agriculture appropriations have been fairly
steady at under 0.75% of GDP from FY2000-FY2009, but have risen to about 0.8% of GDP since
FY2010 (Figure 9). Nutrition programs have been rising as a percentage of GDP since FY2000
(0.33% in FY2001 to 0.61% in FY2012 under the House-passed bill), while non-nutrition
agricultural programs have been declining (0.42% in FY2000 to 0.18% in FY2012). 8
Finally, on a per capita basis, inflation-adjusted total Agriculture appropriations have risen
slightly over the past 10 to 15 years (Figure 10). Nutrition programs have risen more steadily on
a per capita basis, while the non-nutrition “other” agricultural programs have been more steady
over a 15-year period and declining over a 10-year period.


8 Two other CRS reports compare various components of federal spending against GDP at a more aggregate level. See
CRS Report RL33074, Mandatory Spending Since 1962, and CRS Report RL34424, Trends in Discretionary Spending.
Congressional Research Service
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Table 5. Agriculture Appropriations: Trends and Benchmarks: FY1997-FY2011 and FY2012 Proposed
(fiscal year budget authority in billions of dollars, except as noted)


1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012-H
Nominal appropriation
Discretionary total
13.04 13.75 13.69 13.95 14.97 16.28 17.91 16.84 16.83 16.78 17.81 18.09 20.60 23.36 20.12 17.22
Domestic nutrition a 4.22 4.31 4.31 4.42 4.46 4.89 5.00 4.90 5.55 5.53 5.52 6.37 7.23 7.65 7.13 6.32
Rest of bill b
8.82 9.44 9.39 9.53 10.51 11.39 12.91 11.94 11.28 11.25 12.29 11.72 13.37 15.70 12.99 10.90
Mandatory total
40.08 35.80 41.00 61.95 59.77 56.91 56.70 69.75 68.29 83.07 79.80 72.67 87.80 97.98 105.13 108.24
Domestic
nutrition 36.27 32.91 30.51 30.63 29.66 33.06 36.89 42.36 46.94 53.37 51.51 53.68 68.92 75.13 82.53 89.94
Rest
of
bill
3.81 2.89 10.48 31.33 30.12 23.86 19.82 27.38 21.36 29.70 28.29 18.99 18.88 22.86 22.60 18.29
Total bill
53.12 49.55 54.69 75.90 74.74 73.19 74.61 86.59 85.13 99.85 97.61 90.76 108.40 121.34 125.25 125.56
Domestic
nutrition 40.49 37.22 34.82 35.04 34.12 37.95 41.89 47.26 52.49 58.89 57.03 60.06 76.16 82.78 89.66 96.27
Rest
of
bill
12.63 12.33 19.87 40.85 40.63 35.24 32.72 39.32 32.64 40.95 40.58 30.71 32.25 38.56 35.60 29.19
Percentages of Total
1.
Mandatory
75% 72% 75% 82% 80% 78% 76% 81% 80% 83% 82% 80% 81% 81% 84% 86%
2.
Discretionary
25% 28% 25% 18% 20% 22% 24% 19% 20% 17% 18% 20% 19% 19% 16% 14%
1.
Domestic
nutrition
76% 75% 64% 46% 46% 52% 56% 55% 62% 59% 58% 66% 70% 68% 72% 77%
2.
Rest
of
bill
24% 25% 36% 54% 54% 48% 44% 45% 38% 41% 42% 34% 30% 32% 28% 23%
Economic benchmarks for comparison
GDP
($
billions)
8,212 8,663 9,208 9,821 10,225 10,544 10,980 11,686 12,446 13,225 13,896 14,439 14,237 14,508 15,080 15,813
U.S.
budget
authority
1,643 1,692 1,777 1,825 1,959 2,090 2,266 2,408 2,583 2,780 2,863 3,326 4,077 3,485 3,651 3,685
Population
(mil ion)
272.9 276.1 279.3 282.4 285.3 288.0 290.7 293.3 296.0 298.8 301.7 304.5 307.2 310.2 313.2 316.3
GDP
price
index
84.95 86.03 87.17 88.89 90.99 92.49 94.42 96.84 100.00 103.42 106.54 108.98 110.43 111.27 112.75 114.3
Inflation-adjusted 2011 dollars (real dollars)
Discretionary total
17.31 18.02 17.71 17.69 18.55 19.84 21.38 19.61 18.98 18.29 18.85 18.72 21.03 23.67 20.12 16.98
Domestic
nutrition 5.60 5.65 5.57 5.60 5.53 5.96 5.97 5.70 6.26 6.02 5.85 6.59 7.39 7.76 7.13 6.23
Rest
of
bill
11.71 12.37 12.14 12.08 13.02 13.88 15.41 13.90 12.72 12.27 13.00 12.12 13.65 15.91 12.99 10.75
CRS-18




1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012-H
Mandatory total
53.19 46.92 53.03 78.58 74.06 69.38 67.71 81.20 77.00 90.56 84.45 75.18 89.64 99.29 105.13 106.75
Domestic
nutrition 48.14 43.13 39.47 38.85 36.75 40.30 44.05 49.32 52.92 58.18 54.51 55.54 70.37 76.13 82.53 88.71
Rest
of
bill
5.05 3.79 13.56 39.74 37.32 29.08 23.66 31.88 24.08 32.38 29.94 19.64 19.27 23.16 22.60 18.04
Total bill
70.50 64.94 70.74 96.27 92.62 89.22 89.10 100.81 95.98 108.86 103.30 93.90 110.68 122.95 125.25 123.73
Domestic
nutrition 53.74 48.78 45.03 44.45 42.28 46.26 50.02 55.03 59.18 64.21 60.35 62.13 77.76 83.88 89.66 94.94
Rest
of
bill
16.76 16.16 25.70 51.82 50.34 42.96 39.07 45.78 36.80 44.65 42.95 31.77 32.92 39.07 35.60 28.79
Percentages of Total
















Total
bill
3.2% 2.9% 3.1% 4.2% 3.8% 3.5% 3.3% 3.6% 3.3% 3.6% 3.4% 2.7% 2.7% 3.5% 3.4% 3.4%
Domestic
nutrition 2.5% 2.2% 2.0% 1.9% 1.7% 1.8% 1.8% 2.0% 2.0% 2.1% 2.0% 1.8% 1.9% 2.4% 2.5% 2.6%
Rest
of
bill
0.8% 0.7% 1.1% 2.2% 2.1% 1.7% 1.4% 1.6% 1.3% 1.5% 1.4% 0.9% 0.8% 1.1% 1.0% 0.8%
Percentages of Total
















Total
bill
0.65% 0.57% 0.59% 0.77% 0.73% 0.69% 0.68% 0.74% 0.68% 0.75% 0.70% 0.63% 0.76% 0.84% 0.83% 0.79%
Domestic
nutrition 0.49% 0.43% 0.38% 0.36% 0.33% 0.36% 0.38% 0.40% 0.42% 0.45% 0.41% 0.42% 0.53% 0.57% 0.59% 0.61%
Rest
of
bill
0.15% 0.14% 0.22% 0.42% 0.40% 0.33% 0.30% 0.34% 0.26% 0.31% 0.29% 0.21% 0.23% 0.27% 0.24% 0.18%
Percentages of Total
















Total
bill
258 235 253 341 325 310 306 344 324 364 342 308 360 396 400 391
Domestic
nutrition 197 177 161 157 148 161 172 188 200 215 200 204 253 270 286 300
Rest of bill
61
59
92
184 176 149 134 156 124 149 142 104 107 126 114
91
Source: CRS. Data for 2012 are based on House-passed H.R. 2112.
Notes: Includes regular annual appropriations for al of USDA (except the Forest Service), the Food and Drug Administration, and—for consistency—the Commodity
Futures Trading Commission (regardless of jurisdiction). Excludes supplemental appropriations. Reflects rescissions.
a. The largest domestic nutrition programs are the child nutrition programs, the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps)—both of
which are mandatory—and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), which is discretionary.
b. “Rest of bill” includes the non-nutrition remainder of USDA (except the Forest Service), FDA, and CFTC. Within that group, mandatory programs include the farm
commodity programs, crop insurance, and some conservation and foreign aid/trade programs.
c. OMB, Budget of the United States Government, “Historical Tables,” Table 10.1, at http://www.whitehouse.gov/omb/budget/Historicals.
d. OMB, Budget of the United States Government, “Historical Tables,” Table 5.1, total federal budget authority.
e. Census Bureau, U.S. Population Projections, at http://www.census.gov/population/www/projections/index.html, and Statistical Abstract of the United States.
CRS-19

Agriculture and Related Agencies:

Limits on Mandatory Program Spending and Other Rescissions
The House-passed bill for FY2012 contains nearly $2 billion in rescissions and limitations on
mandatory farm bill programs (Title VII in Table 3). These actions are used to score savings that
help meet the $17.25 discretionary budget allocation and help avoid deeper cuts to regular
discretionary accounts.
The FY2012 bill has the same $2 billion level of rescissions and limitations as the FY2011
appropriation. Had the FY2012 House-passed proposal not maintained this level of reductions,
even greater cuts might have been required to the regular discretionary accounts. These types of
reductions grew in importance in the FY2011 appropriation, which required a large discretionary
cut from the year before. Half of the $3.4 billion reduction in total discretionary appropriations
between FY2010 and FY2011 was achieved by a $1.7 billion increase in the use of farm bill
limitations and rescissions. In an era of annual budget cutting, appropriators thus may find
themselves needing to continue such cuts once they start or increase the practice. To lessen the
use of savings achieved in this area of the budget would require an increase of savings from
another area, possibly salaries and expenses accounts at the agency level.
The House-passed bill for FY2012 increases the amount of limitations on farm bill programs
relative to the amount of rescissions relative to the FY2011 appropriation.
Changes in Mandatory Program Spending (CHIMPS)
In recent years, appropriators have placed limitations on mandatory spending authorized in the
farm bill (Table 6). These limitations are also known as CHIMPS, “changes in mandatory
program spending.” Mandatory programs usually are not part of the annual appropriations
process since the authorizing committees set the eligibility rules and payment formulas in multi-
year authorizing legislation (such as the 2008 farm bill). Funding for mandatory programs usually
is assumed to be available based on the authorization without appropriations action.
Passage of a new farm bill in 2008 made more mandatory funds available for programs, some of
which appropriators or the Administration have chosen to reduce, either because of policy
preferences or jurisdictional issues between authorizers and appropriators.
Historically, decisions over expenditures are assumed to rest with the appropriations committees. 9
The division over who should fund certain agriculture programs—appropriators or authorizers—
has roots dating to the 1930s and the creation of the farm commodity programs. Outlays for the
farm commodity programs were highly variable, difficult to predict and budget, and based on
multi-year programs that resembled entitlements. Thus, a mandatory funding system—the
Commodity Credit Corporation (CCC)—was created to remove the unpredictable funding issue
from the appropriations process. This separation worked for many decades. But the dynamic
changed particularly in the late 1990s and the 2002 farm bill when authorizers began writing farm
bills using mandatory funds for programs that typically were discretionary. Appropriators had not
funded some of these programs as much as authorizers had desired, and agriculture authorizing
committees wrote legislation with the mandatory funding at their discretion. Thus, tension arose

9 Summarized from Galen Fountain, Majority Clerk of the Senate Agriculture Appropriations Subcommittee, “Funding
Rural Development Programs: Past, Present, and Future,” p. 4, at the 2009 USDA Agricultural Outlook Forum,
February 22, 2009, at http://www.usda.gov/oce/forum/2009_Speeches/Speeches/Fountain.pdf.
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over who should fund these typically discretionary activities: authorizers with mandatory funding
sources at their disposal, or appropriators having standard appropriating authority. Some question
whether the CCC, which was created to fund the hard-to-predict farm commodity programs,
should be used for programs that are not highly variable and are more often discretionary.
Table 6. Reductions in Mandatory Farm Bill Programs, FY2008-FY2011 and FY2012
Proposed
(dollars in millions)

FY2008
FY2009
FY2010
FY2011
FY2012
House
P.L.
P.L.
P.L.
P.L.
Admin.
H.R.
Program in 2008 farm bill
110-161
111-8
111-80
112-10
Request
2112
Conservation programs






Environmental
Quality
Incentives
Program
-270 -270 -270 -350 -342 -350
Dam Rehabilitation Program
-65
-165 -165 -165 -165 -165
Wetlands Reserve Program



-119
-9
-200
Conservation Stewardship Program



-39
-2
-210
Farmland
Protection
Program

-50
Grasslands
Reserve

-50
-30
Wildlife Habitat Incentive Program




-12
-35
Voluntary
Public
Access
Program
-17
Agricultural
Management
Assistance
-5
-5
Subtotal
conservation
-335 -435 -435 -673 -585
-1,062
Other programs






Fruit and vegetables in schools program a
-49 -76 -117 -114 -133
Emergency Food Assistance Program





-51
Biomass Crop Assistance Program



-134
-45
Bioenergy
Program
for
Advance
Biofuels

-50
Rural Energy for America Program





-70
Crop Insurance good performance discount





-25
Microenterpreneur
Assistance
Program

-3
Subtotal
other
0 -49 -76 -251 -114 -377
Total reduction in these farm bill programs
-335
-484
-511
-924
-699
-1,439
Source: CRS, compiled from H.R. 2112, H.Rept. 112-101, P.L. 112-10, H.R. 1, P.L. 111-80, P.L. 111-8, and P.L.
110-161.
a. Delays funding from July until October of the same calendar year. This effectively allocates the farm bill’s
authorization by fiscal year rather than school year—with no reduction in overal support—and results in
savings being scored by appropriators.
The programs affected by these limits include conservation, rural development, bioenergy, and
some smaller nutrition assistance programs. The limits have not affected the farm commodity
Congressional Research Service
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Agriculture and Related Agencies:

programs or the primary nutrition assistance programs (such as SNAP), both of which are
generally accepted by appropriators as legitimate mandatory programs.
When the appropriators limit mandatory spending, they do not change the authorizing law.
Rather, appropriators have put limits on mandatory programs by using appropriations language
such as: “None of the funds appropriated or otherwise made available by this or any other Act
shall be used to pay the salaries and expenses of personnel to carry out section [ ... ] of Public
Law [ ... ] in excess of $[ ... ].” These provisions usually have appeared in Title VII, General
Provisions, of the Agriculture appropriations bill.
For FY2012, the House-passed bill contains $1.439 billion of reductions from 16 mandatory
programs (Table 6). This level of reduction is 56% greater (+$515 million) than the $924 million
reduction in the FY2011 appropriation, which itself was $413 million greater than FY2009. It
also affects more than twice the number of programs. This level of CHIMPS returns the amount
to the $1.5 billion level reached in FY2006.10
CHIMPS in FY2012—the last year of the 2008 farm bill’s authorization—could have potential
noteworthy effects on the 10-year farm bill baseline budget available to the Agriculture
Committees to write the expected 2012 farm bill. This issue, as well as greater context about the
magnitude and perception of conservation CHIMPS, is discussed in the section “Mandatory
Conservation Programs” later in this report.
Rescissions
Rescissions are a method of permanently cancelling the availability of funds that were provided
by a previous appropriations law, and in doing so achieving or scoring budgetary savings. Often
rescissions relate to the unobligated balances of funds still available for a specific purpose that
were appropriated a year or more ago (e.g., buildings and facilities funding that remains available
until expended for specific projects, or disaster response funds for losses due to a specifically
named hurricane). These are often one-time savings from cancelling unobligated budget
authority that in some cases may no longer have been spent.
The FY2011 appropriation made unusually large rescissions, compared with prior years, to
unobligated balances in accounts such as building and facilities, and rural broadband.
Rescissions in FY2011 totaled nearly $1.1 billion, up from a more typical level of $100 million to
$300 million. Because some of these were one-time savings from cancelling unobligated
balances, the high level was difficult to repeat in FY2012. Rescissions in the House-passed bill
for FY2012 total about $550 million.



10 For more background, see CRS Report R41245, Reductions in Mandatory Agriculture Program Spending.
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Agriculture and Related Agencies:

Selected USDA Agencies and Programs
The Agriculture and Related Agencies appropriations bill covers all of USDA except for the
Forest Service. This amounts to nearly 95% of USDA’s total appropriation. The Forest Service is
funded through the Interior appropriations bill.11 The order of the following sections reflects the
order that the agencies are listed in the Agriculture appropriations bill (except for the portion of
FDA appropriations for food safety, which is discussed in a comprehensive section on food
safety). See Table 3 and tables in some of the following sections for more details on the amounts
for specific agencies.
Agricultural Research, Education, and Extension
Four agencies carry out USDA’s research, education, and economics (REE) mission:
• The Agricultural Research Service (ARS), the Department’s intramural science
agency, conducts long-term, high-risk, basic and applied research on food and
agriculture issues of national and regional importance.
• The National Institute of Food and Agriculture (NIFA) distributes federal
funds to land grant colleges of agriculture to provide partial support for state-
level research, education, and extension.
• The Economic Research Service (ERS) provides economic analysis of issues
regarding public and private interests in agriculture, natural resources, food, and
rural America.
• The National Agricultural Statistics Service (NASS) collects and publishes
current national, state, and county agricultural statistics. NASS also is
responsible for administration of the Census of Agriculture, which occurs every
five years and provides comprehensive data on the U.S. agricultural economy.
The REE mission area was appropriated $2.586 billion in FY2011, which is $251.7 million less (-
9%) than the mission area received in FY2010. Each of the REE agencies received a budget cut
in FY2011, relative to FY2010 levels, with ARS and NIFA experiencing the biggest cuts, almost
10% for each agency. The FY2011 enacted appropriation did not include any earmarks or
congressionally designated spending items. For FY2012, the House-passed bill, H.R. 2112,
would cut the REE mission area even further to $2.217 billion, which is a further reduction by
$369 million (-14%) from FY2011 levels (Table 7).
The 2008 farm bill institutes significant changes in the structure of the REE mission area, but
retains and extends the existing authorities for REE programs. The 2008 farm bill called for the
establishment of a new agency called the National Institute of Food and Agriculture (NIFA,
formerly CSREES), which USDA launched on October 8, 2009. The 2008 farm bill also created
a new competitive grants program, the Agriculture and Food Research Initiative (AFRI), which
replaced two previously authorized competitive grants programs, and created several new
research initiatives related to specialty crops, organic agriculture, and bioenergy.12

11 See CRS Report R41896, Interior, Environment, and Related Agencies: FY2012 Appropriations.
12 For more information on USDA research, education, and extension programs, see CRS Report R40819, Agricultural
(continued...)
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Agriculture and Related Agencies:

When adjusted for inflation, USDA-funding levels for agriculture research, education, and
extension have remained relatively flat from the early 1970s to 2000 (Figure 11).13 From
FY2001 through FY2003, supplemental funds appropriated specifically for anti-terrorism
activities accounted for most of the increases in the USDA research budget. Funding levels since
have remained fairly constant on an inflation-adjusted basis, although ARS received supplemental
funding for buildings and facilities in FY2009. ARS and NIFA account for most of the research
budget and their appropriations generally have tracked each other. Nonetheless, once adjusted for
inflation, these increases are not viewed by some as significant growth in spending for
agricultural research. Agricultural scientists, stakeholders, and partners express concern for
funding over the long term.
Figure 11. USDA Research Budget, FY1972-FY2011
Billion
$3.0
$2.0
$1.0
Actual
2011 dollars
$0.0
1972
1977
1982
1987
1992
1997
2002
2007
2012

Source: Compiled by CRS from Congressional Budget Justifications, various years.
Agricultural Research Service
The enacted FY2011 appropriation provided a total of $1.133 billion for USDA’s in-house
science agency, the Agricultural Research Service (ARS), which is $117.3 million less than (-9%)
the regular FY2010 level and 5.5% less than the President’s request. This FY2011 amount is
allocated entirely to salaries and expenses of the agency and does not include any resources for
ARS Buildings and Facilities. In fact, about $230 million in unobligated balances for ARS
Buildings and Facilities were rescinded.

(...continued)
Research, Education, and Extension: Issues and Background.
13 Based on analysis of USDA data.
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For FY2012, the Administration requested $1.137 billion. The House-passed agricultural
appropriations bill, H.R. 2112, provides $987.5 million for ARS, which is $145.7 million less
than (-13%) appropriated in FY2011.
National Institute of Food and Agriculture
The enacted FY2011 appropriation provided $1.215 billion for NIFA, which represents a $128
million decrease (-10%) from the enacted FY2010 level and the President’s FY2011 request.
Research and Education activities received about a $90 million cut (-11%), though the
Agriculture and Food Research Initiative (AFRI) competitive grants program and several of the
formula fund programs such as the Hatch Act, the Evans-Allen Act, and the McIntire-Stennis
forestry programs actually received funding increases compared to FY2010. Reductions in
research funding was primarily due to the removal of all congressionally earmarked programs.
Extension activities were appropriated about $16 million less (-3%) compared with FY2010,
whereas Integrated Activities were appropriated about $23 million less than (-39%) in FY2010.
For FY2012, the Administration requested $1.205 billion for NIFA. H.R. 2112 provides $1.012
billion, which is $202.8 million less than (-17%) appropriated in FY2011.
Economic Research Service
The enacted FY2011 appropriation provided $81.8 million for the Economic Research Service
(ERS), which was only $0.7 million less than the FY2010 level. The Administration requested
$86.0 million for ERS for FY2012. H.R. 2112 included $69.5 million, which is more than a 15%
cut from the FY2011 level, and about 19% less than the President’s request.
National Agricultural Statistics Service
The enacted FY2011 appropriation provided $156.4 million for the National Agricultural
Statistics Service (NASS), which is a decrease of $5.4 million (-3%) from the FY2010 level. The
Administration requested $165.4 million for NASS for FY2012. H.R. 2112 included $148.3
million, which is a 5% decrease from the FY2011 level, and more than 10% less than the
Administration’s request.

Congressional Research Service
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Table 7. USDA REE Mission Area Appropriations, FY2008-FY2011 and FY2012 Proposed
(budget authority in millions of dollars)
Change from FY2011
Change from

FY2008
FY2009
FY2010
FY2011
FY2012
to H.R. 2112
Request to H.R. 2112
House a
P.L. 110-
P.L. 111-
P.L. 111-
P.L. 112-
Admin.
H.R.
Agency and Program
161
8
80
10
Request
2112
$ % $ %
Agric. Research Service
1,167.8
1,187.2
1,250.5
1,133.2
1,137.7
987.5
-145.7
-12.9
-150.2
-12.5
Nat’l Institute of Food & Agriculture
1,177.4
1,222.2
1,343.2
1,214.8
1,205.0
1,012.0
-202.8
-16.7
-193.0
-14.4
Research
and
Education
668.3 691.0 788.2 698.7 708.0 591.7 -107.0 -15.3 -116.3 -13.9
AFRI
190.8 201.5 262.5 264.5 262.5 227.7 -36.8 -13.9 -34.8 -8.1
Hatch-Act
195.8 207.1 215.0 236.3 215.0 206.4 -29.9 -12.7 -8.6 -4.0
Evans-Al en
41.1 45.5 48.5 50.9 48.5 47.6 -3.3 -6.4 -0.9 -1.8
McIntire-Stennis
24.8 27.5 29.0 32.9 27.6 29.8 -3.2 -9.6 2.2 7.5

Extension
453.3 474.3 494.9 479.1 467.0 408.0 -71.1 -14.9 -59.0 -12.3
Smith-Lever
(b)&(c)
274.7 288.5 297.5 293.9 282.6 257.2 -36.7 -12.5 -25.4 -8.6
Integrated
Activities
55.9 56.9 60.0 36.9 30.0 12.3 -24.6 -66.7 -17.7 -71.1
Economic
Research
Service
77.4 79.5 82.5 81.8 86.0 69.5 -8.1
-15.11 -16.5 -19.0
Nat’l Agricultural Statistics Service
162.2
151.6
161.8
156.4
165.4
148.3
-368.9
-5.2
-17.1
-10.4
Total, REE Mission Area
2,584.8
2,640.4
2,838.0
2,586.3
2,594.1
2,217.4
-368.9
-14.3
-376.7
-13.5
Source: Compiled by CRS
a. Amounts shown for H.R. 2112 are estimates that reflect the across-the-board 0.78% rescission to discretionary accounts in sec. 743.

CRS-26

Agriculture and Related Agencies:

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 Service
The Animal and Plant Health Inspection Service (APHIS) is responsible for protecting U.S.
agriculture from domestic and foreign pests and diseases, responding to domestic animal and
plant health problems, and facilitating agricultural trade through science-based standards. APHIS
has key responsibilities for dealing with prominent concerns such as avian influenza (AI), bovine
spongiform encephalopathy (BSE or “mad cow disease”), bovine tuberculosis, a growing number
of invasive plant pests—such as the Emerald Ash Borer, the Asian Long-horned Beetle, and the
Glassy-winged Sharpshooter—and a national animal identification (ID) program for animal
disease tracking and control. APHIS also is charged with administering the Animal Welfare Act
(AWA), which seeks to protect pets and other animals used for research and entertainment.
The House-passed bill provides a total of $787 million for APHIS for FY2012. This includes
$783.8 million for APHIS salaries and expenses (reflecting the 0.78% rescission), which is $79.5
million less than FY2011 ($863.3 million) and $48.9 million less than the Administration’s
request ($832.7 million). The House bill also authorizes $3.2 million for buildings and facilities.
The House bill authorizes APHIS to collect fees to cover the total costs of providing technical
assistance, goods, or services in certain cases. Also, the House bill directs APHIS to use cost-
sharing agreements or matching requirements with states, territories, producers, foreign
governments, and other entities to reduce the agency’s cost burden.
The Administration’s FY2012 budget request proposed a new budget structure for APHIS to
manage 29 budgetary line items instead of 45 line items. The committee report expresses support
for this proposed budget structure. Currently, APHIS individual budget line items are associated
with a specific animal or plant pest or disease. The new budget structure proposes moving from
specific animal disease line items to a commodity-based structure with commodity “Health” lines
that “integrate the activities needed to address the health concerns for each commodity” and will
facilitate “the Agency’s ability to adjust rapidly or efficiently to new or emerging situations.”14
The House committee report states “this increased flexibility will allow APHIS to apply the
greatest resources to the greatest threats or risks within a line item and to prioritize funds
accordingly”; however, the committee reiterates that it expects APHIS “to apply appropriated
funds to the agency’s historical core programs and mission area first before allocating resources
to those less critical functions or initiatives.”15
Within APHIS (after the 0.78% rescission), the House-passed bill provides the following funding
across each of the newly proposed budget categories: animal health ($288.5 million); plant health
($293.2 million); wildlife services ($88.8 million, including $71.9 million for Wildlife Damage
Control); regulatory services ($31.3 million); safeguarding and emergency preparedness ($18.9

14 USDA, “2012 Explanatory Notes, APHIS,” pp. 18-47 through 18-50, http://www.obpa.usda.gov/
18aphis2012notes.pdf.
15 H.Rept. 112-101.
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million); safe trade and international technical assistance ($31.8 million); animal welfare ($22.3
million); and agency management ($9.1 million).
The House-passed bill identifies funding for certain programs (to remain available until
expended), including: $16.0 million for the cotton pests program for either cost share purposes or
for debt retirement for active eradication zones; $32.5 million for Animal Health Technical
Services; $54.0 million to support avian health; $4.2 million for information technology
infrastructure; $147.0 million for specialty crop pests; $9.0 million for field crop and rangeland
ecosystem pests; $52.0 million for tree and wood pests; $2.3 million for the National Veterinary
Stockpile; $1.5 million for the scrapie program for indemnities; $1.0 million for wildlife services
methods development; and $1.5 million for the wildlife damage management program for
aviation safety (before 0.78% rescission). The bill also requires that up to 25% of the screwworm
program be available until expended, requires that matching state funds be at least 40% for
formulating and administering a brucellosis eradication program, sets limitations on the operation
and maintenance of aircrafts and aircraft purchases, and requires that any repair and alteration of
leased buildings and improvements not exceed 10% of the current replacement value of the
building. The committee further provides that $15 million be used for the cotton pest program;
encourages APHIS to fund the Pale Cyst Nematode eradication program at levels above the
President’s FY2012 budget request of $6.2 million;16 and directs APHIS to provide funding for
sudden oak death and to work with other USDA agencies and states to implement a control
program for the Brown Marmorated Stink Bug.
The House committee report further directs APHIS to use resources to enforce the Horse
Protection Act and maintain the Designated Qualified Person program and use its animal welfare
resources to regulate the pets of extras in filmed entertainment. The House bill also requires that
APHIS submit two reports to the House appropriations committee: one report to examine the
range and degree of equine diseases in the United States, along with estimated program spending
for FY2011-2012, and a second report to address the status of USDA’s Animal Disease
Traceability/National Animal Identification System, whether the mandatory approach is “low
cost,” provide an update on the cost, schedule, and/or milestones, and describe any cost
differences and plans for corrective actions.17
As in previous years, the House-passed bill highlights that appropriators expect USDA to
continue to use the authority provided in this bill to transfer funds from other appropriations or
funds available to USDA for activities related to the arrest and eradication of animal and plant
pests and diseases.18 The Office of Management and Budget (OMB) and congressional
appropriators have sparred for years over whether APHIS should—as appropriators have
preferred—reach as needed into USDA’s Commodity Credit Corporation (CCC) account for
mandatory funds to deal with emerging plant pests and other plant and animal health problems on
an emergency basis, or be provided the funds primarily through the annual USDA appropriation,
as OMB has argued. In particular, the committee states that it expects USDA to continue to use
the authority provided in the bill to transfer CCC funds to address emerging plant pests. The
House-passed bill provides that $2 million be available until expended for a “contingency fund”

16 USDA, “2012 Explanatory Notes, APHIS,” pp. 18-30, http://www.obpa.usda.gov/18aphis2012notes.pdf.
17 See CRS Report R40832, Animal Identification and Traceability: Overview and Issues.
18 Per the conference report, this provision is in accordance with the Animal Health Protection Act (7 U.S.C. 8310 and
8316, sections 10411 and 10417) and the Plant Protection Act (7 U.S.C. 7751 and 7772, sections 431 and 442).
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to control outbreaks of insects, plant diseases, animal diseases and for control of pest animals and
birds to the extent necessary to meet emergency conditions.
Agricultural Marketing Service and Section 32
The Agricultural Marketing Service (AMS) is responsible for promoting the marketing and
distribution of U.S. agricultural products in domestic and international markets. User fees and
reimbursements, rather than appropriated funds, account for a substantial portion of funding for
the agency. Such fees cover AMS activities like product quality and process verification
programs, commodity grading, and Perishable Agricultural Commodities Act licensing.
AMS historically receives additional funding each year through two separate appropriations
mechanisms—the direct annual USDA appropriation, and a transfer from the so-called Section 32
account. For FY2012, the House-passed bill would provide $78.5 million (after the 0.78%
rescission; comprised of $77.5 million for AMS expenses plus $1.3 million for payments to states
and possessions, before rescission). This is 11% less than the FY2011 enacted appropriation of
$87.9 million.
The Section 32 account is funded by a permanent appropriation of 30% of the previous calendar
year’s customs receipts, less certain mandatory transfers. AMS uses these additional Section 32
funds (not reflected in the above totals) to pay for a variety of programs and activities, notably
child nutrition, and government purchases of surplus farm commodities not supported by ongoing
farm price support programs. The 2008 farm bill set the maximum annual amount of Section 32
funds that would be available for obligation by AMS. This amount is $1.199 billion for FY2010,
$1.215 billion for FY2011, and $1.231 billion for FY2012. At the same time, the 2008 farm bill
also mandated that funding for a newly authorized fresh fruit and vegetable program in schools
comes from the amount of Section 32 funds available for obligation by AMS.19 The remaining
amount of Section 32 funds available for obligation by AMS has been used, at the Secretary’s
discretion, primarily to fund commodity purchases for school lunch and other domestic programs,
to support farm prices, and to provide disaster assistance. The 2008 farm bill also requires $203
million of Section 32 funds be used during FY2011 to purchase fruit, vegetables, and nuts for
domestic food assistance programs. 20
The House-passed bill provides $1.08 billion of Section 32 funds for AMS, an increase of 1%
over the $1.065 billion in FY2011. The Section 32 amount is considered mandatory spending.
Rescissions of Section 32 carryover funds are generally used to achieve budgetary savings. The
enacted appropriation for FY2010 contained, under Title VII (General Provisions), a rescission of
$52.5 million from unobligated balances carried over from FY2009. The FY2011 enacted
appropriation did not rescind any Section 32 funds, but the House-passed agriculture
appropriations for FY2012 would rescind $150 million of unobligated balances.

19 Under Sec. 4304, funding for the fresh fruit and vegetable school snack program is mandated to come from Section
32 in the following amounts: $40 million on October 1, 2008; $65 million on July 1, 2009; $101 million on July 1,
2010; $150 million on July 1, 2011; and for each succeeding July 1, the 2011 amount is to be adjusted for inflation.
20 For more details about Section 32 and the farm bill changes, see CRS Report RL34081, Farm and Food Support
Under USDA’s Section 32 Program
.
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Grain Inspection, Packers, and Stockyards Administration
USDA’s Grain Inspection, Packers, and Stockyards Administration (GIPSA) oversees the
marketing of U.S. grain, oilseeds, livestock, poultry, meat, and other commodities. GIPSA’s
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.
The House-passed bill provides $36.7 million (after the 0.78% rescission) for GIPSA salaries and
expenses for FY2012, which is about $3.5 million less than appropriated for FY2011, and $7.5
million less than the Administration’s request of $44.2 million. GIPSA is authorized to collect up
to $47.5 million in user fees to cover inspection and weighing services.
The House bill includes language that prohibits GIPSA from spending funds to write, prepare,
develop, or publish a final rule or an interim final rule in furtherance of, or otherwise to
implement, the proposed rule entitled “Implementation of Regulations Required Under Title XI
of the Food, Conservation, and Energy Act of 2008; Conduct in Violation of the Act’’ (75 Fed.
Reg. 35338, June 22, 2010). In June 2010, GIPSA issued the proposed rule as mandated by the
2008 farm bill. The proposed rule addresses how “harm or likely harm to competition” is treated
under the Packers and Stockyards Act (7 USC §181 et seq.), sets criteria for unfair,
discriminatory, or deceptive practices, and includes arbitration provisions that give contract
growers opportunities to participate in meaningful arbitration.21 The proposed rule is contentious
and generated more than 60,000 public comments.
In the House report accompanying H.R. 2112, the Committee expressed its concern that GIPSA’s
proposed rule misinterpreted the intent of Congress concerning the regulation of livestock
marketing practices. The Committee report also expressed concern that USDA may not have
complied with the Administrative Procedures Act that governs rulemaking by publishing its
“Farm Bill Regulations—Misconceptions and Explanations” document. In addition, by closing
the comment period in November 2010 before holding the last of five workshops on competition
held jointly with the Department of Justice in December 2010, the Department might have limited
the public’s ability to comment on the proposed rule.
Food Safety
Numerous federal, state, and local agencies share responsibilities for regulating the safety of the
U.S. food supply.22 Federal responsibility for food safety rests primarily with the Food and Drug
Administration (FDA) and the U.S. Department of Agriculture (USDA). FDA, an agency of the
Department of Health and Human Services, is responsible for ensuring the safety of the majority
of all domestic and imported food products (except for meat and poultry products). USDA’s Food
Safety and Inspection Service (FSIS) regulates most meat, poultry, and processed egg products.
The agriculture appropriations subcommittees oversee both the FDA and FSIS budgets.

21 See CRS Report R41673, USDA’s Proposed Rule on Livestock and Poultry Marketing Practices.
22 For more information, see CRS Report RS22600, The Federal Food Safety System: A Primer.
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Historically, funding and staffing levels between FDA and FSIS have been disproportionate to
their respective responsibilities to address food safety activities. FSIS is responsible for between
10%-20% of the U.S. food supply, while FDA is responsible for the remainder.23 However, FSIS
has had approximately 60% of the two agencies’ combined food safety budget, and FDA had the
other approximately 40%. For example, in FY2011, FSIS received $1.007 billion in appropriated
funds plus another approximately $150 million in industry-paid user fees. By contrast, FDA’s
FY2011 budget for foods was $781.4 million,24 virtually all of it made available from limited
authorized user fees. Staffing levels also vary considerably among the two agencies: FSIS staff
numbers around 9,500, while FDA staff working on food-related activities numbers about 3,400
(FY2011 estimates).
The comprehensive food safety legislation that was enacted in the 111th Congress (FDA Food
Safety Modernization Act (FSMA), P.L. 111-353) authorized additional appropriations and staff
for FDA’s future food safety activities.25 FSMA was the largest expansion of FDA’s food safety
authorities since the 1930s. Among its many provisions, FSMA increases frequency of
inspections at food facilities, tightens record-keeping requirements, extends oversight to certain
farms, and mandates product recalls. It requires food processing, manufacturing, shipping, and
other facilities to conduct a food safety plan of the most likely safety hazards, and design and
implement risk-based controls. It also mandates improvements to the nation’s foodborne illness
surveillance systems and increased scrutiny of food imports, among other provisions. FSMA did
not directly address meat and poultry products under USDA’s jurisdiction.
Prior to enactment, the Congressional Budget Office (CBO) estimated that implementing FSMA
could increase net federal spending subject to appropriation by about $1.4 billion over a five-year
period (FY2011-FY2015).26 This cost estimate covers activities at FDA and other federal
agencies, and does not include offsetting revenue from the collection of new user fees authorized
under FSMA. New fees authorized under FSMA include an annual fee for participants in the
voluntary qualified importer program (VQIP) and three fees for certain periodic activities
involving reinspection, recall, and export certification.27 FSMA did not impose any new facility
registration fees. Prior to enactment, CBO estimated that about $240 million in new fees would
be collected over the five-year period (FY2011-FY2015).28 Taking into account these new fees,
CBO estimated that covering the five-year cost of new requirements within FDA, including more

23 The 20% estimate is based on information reported by the Government Accountability Office (GAO) in “Revamping
Oversight of Food Safety,” prepared for the 2009 Congressional and Presidential Transition, and appears to represent
proportions of total spending for food consumed at home. The 10% estimate is based on data from USDA’s Economic
Research Service (ERS) on U.S. per capita food consumption at http://www.ers.usda.gov/data/foodconsumption/.
24 HHS, Fiscal Year 2012 FDA, “Justification of Estimates for Appropriations Committees,” February 14, 2011,
http://www.fda.gov/downloads/AboutFDA/ReportsManualsForms/Reports/BudgetReports/UCM243370.pdf.
25 P.L. 111-353 amended the Federal Food, Drug, and Cosmetic Act (FFDCA; 21 U.S.C. §§ 301 et seq.).
26 CBO, Cost Estimate, “S. 510, Food Safety Modernization Act, as reported by the Senate Committee on Health,
Education, Labor, and Pensions on December 18, 2009, incorporating a manager’s amendment released on August 12,
2010,” August 12, 2010, http://www.cbo.gov/ftpdocs/117xx/doc11794/s510.pdf. Reflecting the August 2010 Senate
amendment to S. 510. Estimated total costs would be covered by a combination of user fees and direct appropriations
(budget authority).
27 FSMA, P.L. 111-353, Sections 107 and 401. Details of these annual and periodic fees are presented in CRS Report
R40443, The FDA Food Safety Modernization Act (P.L. 111-353).
28 As estimated by CBO, these fees would be phased in as follows: $15 million (FY2011), $27 million (FY2012); $47
million (FY2013); $63 million (FY2014); and $89 million (FY2015).
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frequent inspections, would require additional outlays of $1.1 billion. FSMA also authorized an
increase in FDA staff, reaching 5,000 by FY2014.29
Although Congress authorized appropriations when it enacted FSMA, it did not provide the full
funding needed for FDA to perform these activities. After FSMA was signed into law in January
2011, concerns were voiced about whether there would be enough money to overhaul the U.S.
food safety system and also whether expanded investment in this area is appropriate in the current
budgetary climate.30 The Administration’s budget requested a more than 30% increase in
additional funding for FDA’s food program, while its request for USDA’s FSIS was lower
compared to FY2010 appropriations (Table 8).31
As part of the House Appropriations Committee Oversight Plan, the Agriculture subcommittee
held two budget hearings on USDA and FDA food safety in March 2011.32 The Subcommittee
also discussed the federal food safety inspection system, including coordination between USDA
and FDA, and also FSMA implementation.
The House-passed FY2012 agriculture appropriations bill (H.R. 2112) provides for a reduction in
agency funding for food safety efforts within FDA (-10%) and USDA (-4%). This raises questions
about how FDA will be able to implement food safety reforms authorized in the 111th Congress,
and also questions about how FDA and USDA will be able to invest in preventive efforts intended
to address existing and emerging food safety threats.
Food and Drug Administration (FDA)
For all FDA programs, which includes appropriations for FDA foods and other programs, the
House-passed bill would appropriate $2.147 billion (after the 0.78% rescission). Including
funding from all authorized FDA user fees, the House bill estimates that total available funding
for all of FDA would be $3.6 billion, which the committee reports as a slight increase in total
available funds compared to FY2011.33 Funding for all FDA program areas is more than $560
million (13%) lower in the House-passed bill, compared to the President’s budget request.
For FDA’s foods program, the House-passed bill appropriates $746.3 million, after the 0.78%
rescission and not including funding from expected user fees—about one-third of FDA’s budget
authority for all its programs. Compared to FY2011, the House bill provides $91 million less for
FDA’s foods program for FY2012, approximately an 11% reduction in appropriated funding
(Table 8). The House-passed bill also assumes FDA will collect another $48 million in new user
fees under its foods program, as authorized under FSMA. These fees include $36 million in VQIP

29 FSMA, P.L. 111-353, Section 401. By fiscal year, staff level increases were authorized to a total of not fewer than:
4,000 staff members (FY2011); 4,200 staff (FY2012); 4,600 staff (FY2013); and 5,000 staff (FY2014).
30 See “Food Safety Bill Advocates Expect Funding Fight,” Food Safety News, January 4, 2011.
31 See “Obama’s Budget Plan Would Boost FDA, Cut FSIS,” Food Safety News, February 15, 2011.
32 House Appropriations Committee, Subcommittee on Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies, Budget Hearing on USDA Food Safety (March 15, 2011) and Food and Drug
Administration (March 11, 2011), http://appropriations.house.gov/Calendar/EventSingle.aspx?EventID=235975 and
http://appropriations.house.gov/Calendar/EventSingle.aspx?EventID=235976.
33 Does not include funding for FDA buildings and facilities, authorized at nearly $9 million, which is also below the
Administration’s request of $13 million.
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fees and $12 million in food and feed recall fees. The bill does not provide break outs by the
various activities within FDA’s foods program.
Table 8. Appropriations for Food Safety
(FTE’s as indicated, and budget authority in millions of dollars)
Program level,
Agency/ Year
FTEs a Appropriation
including fees
HHS Food and Drug Administration (FDA), “Foods” Subtotal Only
FY2010 Appropriation
3,387
783.2
783.2
FY2011 Appropriation
3,387
837.4
837.4
FY2012 Administration Budget
4,173
955.3
1,035.1
H.R. 2112 (before rescission)
NA
752.2
799.8
H.R. 2112 (after 0.78% rescission)
NA
746.3
794.0
Comparison of H.R. 2112 after 0.78% rescission to:
FY2011 Appropriation
NA
-91.1 (-10.9%)
-43.4 (-5.2%)
FY2012 Administration Budget
NA
-209.0 (-21.9%)
-241.1 (-23.3%)
USDA Food Safety and Inspection Service (FSIS)
FY2010 Appropriation
9,401
1,018.5
NA
FY2011 Appropriation
9,587
1,006.5
NA
FY2012 Administration Budget
9,625
1,011.4
NA
H.R. 2112 (before rescission)
NA
972.0
NA
H.R. 2112 (after 0.78% rescission)
NA
964.4
NA
Comparison of H.R. 2112 after 0.78% rescission to:
FY2011 Appropriation
NA
-42.1 (-4.2%)
NA
FY2012 Administration Budget
NA
-47.0 (-4.6%)
NA
Source: CRS using data from House-passed H.R. 2112 (H. Rept. 112-101). FTEs and FDA “Foods” are from
USDA and FDA.
Notes: Percentages in parentheses reflect the difference between H.R. 2112 and FY2011 and budget request.
a. Staffing in full time equivalents. HHS, “Justification of Estimates for Appropriations Committees,” Fiscal
Year 2012 FDA, February 14, 2011, http://www.fda.gov/downloads/AboutFDA/ReportsManualsForms/
Reports/BudgetReports/CM243370.pdf; and USDA, “2012 Explanatory Notes,” Food Safety and Inspection
Service, February 12, 2011, http://www.obpa.usda.gov/ 1fsis2012notes.pdf.
Compared to the Administration’s budget request, the House bill provides $209 million less for
FDA’s foods programs for FY2012, approximately a 22% reduction (Table 8). Including expected
fees, the House bill is roughly $240 million below the Administration’s request, which projected a
total need of $1.035 billion for FDA’s food program for FY2012.34 FDA justifies its requested
increase to implement the various elements of the newly enacted food safety law, FSMA,

34 Includes $955.3 million in budget authority plus $79.8 million in expected user fees. HHS, Fiscal Year 2012 FDA,
“Justification of Estimates for Appropriations Committees,” February 14, 2011, http://www.fda.gov/downloads/
AboutFDA/ReportsManualsForms/Reports/BudgetReports/UCM243370.pdf.
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including preventive controls on farms (FSMA Section 105); preventive controls for food and
feed processing (FSMA Sections 101, 103, 104, 110, 204, 405); safe food transport (FSMA
Section 111); retail food safety (FSMA Section 209); import oversight (FSMA Sections 201, 211,
301-308); and integrated Food Safety System (FSMA Sections 201, 205, 209 and 210), among
other activities.35 The House committee acknowledges CBO’s projected estimate that FSMA
implementation could require an additional $1.4 billion in new program level funding for FDA’s
foods program; however, the committee further states that if the President’s FY2012 budget
request were adopted, this would result in a 156% increase for FDA since 2004—a level of
spending the committee deems “unsustainable.”36 The Obama Administration has criticized the
House-passed reduction in funding for FDA’s foods program.37
During the House floor debate, both Representatives Dingell and DeLauro introduced
amendments to restore funding for FDA’s food safety programs. These amendments were not
adopted. Representative Dingell’s amendment would have increased funding by $49 million for
FDA’s FSMA implementation and other food safety efforts, while Representative DeLauro’s
amendment would have increased funding by $1 million for FDA’s Center for Food Safety and
Applied Nutrition (CFSAN) to invest in foodborne illness preventive efforts.38
The House-passed bill also specifies that funds not be used for USDA’s Microbiological Data
Program, which is administered by the Agricultural Marketing Service (AMS) and tests samples
of domestic and imported fresh fruits and vegetables to monitor for microbial contamination and
foodborne pathogens frequently associated with foodborne illness. The committee report states
that “other Federal and state public health agencies are better equipped to perform this function”
and that these agencies, including FDA, the Centers for Disease Control and Prevention (CDC),
and/or the state departments of health and agriculture, should either collect such data under their
purview or “consider entering into reimbursable agreements with USDA.”39 During House floor
debate, Representative Clarke introduced an amendment to restore $1 million for the
Microbiological Data Program; however, this amendment was not adopted.
The committee-reported bill had included a provision seeking to prohibit funding for FDA
rulemaking activities or guidance “intended to restrict the use of a substance or a compound”
unless such a rule, regulation or guidance is based on “hard science” and “that the weight of
toxicological evidence, epidemiological evidence, and risk assessments clearly justifies such
action.”40 The provision was added in committee as an amendment by Representative Denny
Rehberg. Chairman of the House Energy and Commerce Committee, Fred Upton, challenged the
amendment as a violation of the House rule against legislating on a spending bill. Some media
reports claim this provision is intended to prevent the FDA from restricting the use of antibiotics
in feed for farm animals,41 among other FDA actions including its consumer safety and tobacco
regulation efforts.42 The provision was later removed under a point of order.

35 Ibid.
36 H.Rept. 112-101.
37 See, for example, Helena Bottemiller, “Obama Blasts GOP for Food Safety Budget Cuts,” Food Safety News, June
30, 2011.
38 See, for example, Congressional Record, June 14-15, 2011, pp. H4164-H4165, H4253-H4256, and H4179-H4181.
39 H.Rept. 112-101.
40 Committee-reported bill, H.R. 2112, Section 740.
41 “Upton Wants Amendment on FDA Rule Struck from Spending Bill,” CQ Today Online, June 8, 2011; “Republicans
target Obama anti-obesity measures,” Washington Post, June 2, 2011; and “Farm, Food Programs Up for Cuts In House
(continued...)
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Food Safety and Inspection Service (FSIS)
For USDA’s FSIS, the House-passed bill provides $964.4 million for FY2012, including the
rescission. This compares to $1.007 billion for FY2011 and $1.011 billion in the Administration’s
request, a 4%-5% reduction from each (Table 8). This congressional appropriation would be
augmented by existing (currently authorized) user fees, which FSIS had earlier estimated would
total approximately $150 million,43 as well as another $1 million credited to FSIS from fees
collected for the cost of laboratory accreditation.44 The House bill does not assume the adoption
of two new user fees, proposed by the Administration, to partly recover the increased costs of
providing additional inspections and related services. Estimated revenue from these two fees,
which would require new authorizing legislation, would be an estimated $8.6 million and $4.0
million, respectively. The House report includes recommendations for FSIS to continue its efforts
under an ongoing pilot inspection program for poultry slaughter inspection and its efforts to
improve enforcement of the Humane Methods of Slaughter Act. The committee also urges FSIS
to take the necessary steps to protect the public health from E. coli serotypes other than E. coli
0157:H7. The House-passed bill would further prohibit any funds from being paid for salaries or
expenses of personnel to inspect horses under various meat inspection laws and regulations.
Farm Service Agency
USDA’s Farm Service Agency (FSA) is probably best known for administering the farm
commodity subsidy programs and the disaster assistance programs. It makes these payments to
farmers through a network of county offices. In addition, FSA also administers USDA’s direct and
guaranteed farm loan programs, certain mandatory conservation programs (in cooperation with
the Natural Resources Conservation Service), and supports certain international food assistance
and export credit programs administered by the Foreign Agricultural Service and the U.S. Agency
for International Development.
FSA Salaries and Expenses
All of the administrative funds used by FSA to carry out its programs are consolidated into one
account. A direct appropriation for FSA salaries and expenses pays to carry out the activities such
as the farm commodity programs. Transfers also are received from other USDA agencies to pay
for FSA administering CCC export credit guarantees, P.L. 480 loans, and the farm loan programs.
This section discusses amounts for regular FSA salaries and expenses, plus transfers for the
salaries and expenses of the farm loan programs. Amounts transferred to FSA for export programs
and P.L. 480 are included with the originating account.

(...continued)
Agriculture Spending Bill,” CQ Weekly, June 6, 2011.
42 “House expected to strip FDA language, other parts of agriculture approps bill,” The Hill, June 14, 2011; and “House
Appropriations Amendment Would Weaken FDA’s Authority over Tobacco, Unleash Big Tobacco on America’s
Kids,” American Lung Association, June 1, 2011.
43 USDA, 2012 Explanatory Notes, Food Safety and Inspection Service, February 12, 2011, http://www.obpa.usda.gov/
21fsis2012notes.pdf.
44 Authorized by section 1327 of the Food, Agriculture, Conservation and Trade Act of 1990 (7 U.S.C. 138f).
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Agriculture and Related Agencies:

The House-passed bill for FY2012 would provide $1.434 billion for regular FSA salaries and
expenses, $87 million less than FY2011 (-6%). USDA’s budget justification for FY2012
proposes a 10% reduction (about 504 positions) for FY2012, after reducing the number of
positions by about 363 in FY2011.45 The House-passed bill is $284 million less than the
Administration’s request, and therefore would require greater staffing reductions unless most of
the difference between the House bill and the Administration’s request is a reduction in USDA’s
information technology modernization plan.
FSA Farm Loan Programs
The USDA Farm Service Agency serves as a lender of last resort for family farmers unable to
obtain credit from a commercial lender. USDA provides direct farm loans (loans made directly
from USDA to farmers), and it also guarantees the timely repayment of principal and interest on
qualified loans to farmers from commercial lenders. FSA loans are used to finance farm real
estate, operating expenses, and recovery from natural disasters. Some loans are made at a
subsidized interest rate.
An appropriation is made to FSA each year to cover the federal cost of making direct and
guaranteed loans, referred to as a loan subsidy. Loan subsidy is directly related to any interest rate
subsidy provided by the government, as well as a projection of anticipated loan losses from
farmer non-repayment of the loans. The amount of loans that can be made—the loan authority—
is several times larger than the subsidy level.
The House-passed bill for FY2012 provides $107 million of loan subsidy to support $4.787
billion of direct and guaranteed loans. The loan subsidy is $40 million less than FY2011 (-27%),
while the loan authority is $145 million more than FY2011 (+3%). Compared to FY2011, the
House bill eliminates the guaranteed interest assistance operating loan program, consistent with
the Administration’s request and due to less demand for the program in the current lower interest
rate environment. It increases direct farm operating loan authority by $100 million, and restores
$150 million of loan authority for the 2008 farm bill’s new conservation guaranteed loan
program. The conservation loan program was defunded in FY2011.
Following the global financial crisis that began in 2008, demand for FSA farm loans and
guarantees increased dramatically as bank lending standards became more strict.46 In FY2009
and FY2010, supplemental appropriations increased the FSA loan authority by nearly $1 billion
each year in order to meet demand. Thus, although the FY2012 loan authority proposed in the
House is fairly consistent with the loan authority in recent regular annual appropriations, it is $1.2
billion less than the loan authority available in FY2010 including supplementals. Loan demand
has remained fairly high in FY2011 and some programs in some states have at times exhausted
their loan availability.

45 USDA, FY2012 USDA Budget Explanatory Notes for Committee on Appropriations, p. 22-9 and 22-16, at http://
www.obpa.usda.gov/22fsa2012notes.pdf.
46 For more background, see CRS Report RS21977, Agricultural Credit: Institutions and Issues.
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Table 9. USDA Farm Loans: Budget and Loan Authority, FY2010-FY2011, and FY2012 Proposed
(dollars in millions)

FY2010
FY2011
FY2012
Change
From FY2011 to
From

Regular
Supp.
Total
P.L. 112-10
House H.R. 2112
FY2012-House
FY2010
Loan
Loan
Loan
Budget
Loan
Budget
Loan
Budget
Loan
Loan
FSA Farm Loan Program
Authority Authority Authority Authority Authority Authority Authority Authority Authority Authority
Farm
ownership
loans
Direct 650

650
33
475
23
475
-10.2
0
-175
Guaranteed
1,500 300 1,800
6 1,500
0 1,500
-5.7
0 -300
Farm operating loans










Direct 1,000
350
1,350
57
950
59
1,050
+1.2
+100
-300
Guaranteed
(unsubsidized)
1,500 250 1,750
35 1,500
26 1,500
-9.0
0 -250
Guaranteed (interest assistance)
170
50
220
17
122
0
0
-16.9
-122
-220
Conservation loans










Direct
75

75 0 0 0 0 0.0 0
-75
Guaranteed
75

75 0 0 0
150 0.0
+150
+75
Individual
Development
Accounts

0

Indian tribe land acquisition
4

4
0
4
0
2
+0.2
-2
-2
Indian highly fractured land loans
10

10
0
0
0
10
0.0
+10
0
Boll weevil eradication loans
100

100
0
100
0
100
0.0
0
0
Subtotal
5,084 950
6,034 148
4,651 107
4,787 -40.3
+136
-1,247
Salaries and expenses



305

259

-46.3

Administrative expenses



8

8

-0.1


Total
5,084 950
9,618 461
4,651 374
4,787 -86.7
+136
-1,247
Source: CRS, compiled from House-passed H.R. 2112, H.Rept. 112-101, P.L. 112-10, P.L. 111-80, P.L. 111-212, and unpublished appropriations tables.
Notes: Budget authority reflects the cost of making loans, such as interest subsidies and default. Loan authority reflects the amount of loans that FSA may make or guarantee.

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Commodity Credit Corporation
The Commodity Credit Corporation (CCC) is the funding mechanism for the mandatory subsidy
payments that farmers receive. (Discretionary appropriations for Farm Service Agency salaries
and expenses pay for administration of the programs.) Most spending for USDA’s mandatory
agriculture and conservation programs was authorized by the 2008 farm bill (P.L. 110-246).47
The CCC is a wholly owned government corporation that has the legal authority to borrow up to
$30 billion at any one time from the U.S. Treasury (15 U.S.C. 714 et seq.). These borrowed funds
finance spending for programs such as farm commodity subsidies and various conservation, trade,
food aid, and rural development programs. Emergency supplemental spending also has been paid
from the CCC over the years, particularly for ad hoc farm disaster payments, for direct market
loss payments to growers of various commodities in response to low farm commodity prices, and
for animal and plant disease eradication efforts.
Although the CCC can borrow from the Treasury, it eventually must repay the funds it borrows. It
may earn a small amount of money from activities such as buying and selling commodities and
receiving interest payments on loans. But because the CCC never earns more than it spends, its
borrowing authority must be replenished periodically through a congressional appropriation so
that its $30 billion debt limit is not depleted. Congress generally provides this infusion through
the annual Agriculture appropriation law. In recent years, the CCC has received a “current
indefinite appropriation,” which provides “such sums as are necessary” during the fiscal year.
Mandatory outlays for the commodity programs rise and fall automatically based on economic or
weather conditions. Funding needs are difficult to estimate, which is a primary reason that the
programs are mandatory rather than discretionary. More or less of the Treasury line of credit may
be used year to year. Similarly, the congressional appropriation may not always restore the line of
credit to the previous year’s level, or may repay more than was spent. For these reasons, the
appropriation to the CCC may not reflect outlays.
To replenish CCC’s borrowing authority with the Treasury, the FY2012 House-passed
appropriation concurs with the Administration request for an indefinite appropriation (“such sums
as necessary”) for CCC. The appropriation is estimated to be $14.1 billion, up 1% from FY2011.
Such amounts ranged from $13.0 billion in FY2008, to $15.1 billion in FY2010.
Several amendments were raised in the House Appropriations Committee markup and floor
proceedings that would affect CCC programs.
First, CCC funding that is used to make a payment to the Brazil Cotton Institute—per an
agreement under a WTO settlement stemming from a case that Brazil won against the U.S. farm
subsidy program48—was used as a budgetary offset in a committee-adopted amendment to

47 For more information on the provisions of the farm bill, see CRS Report RL34696, The 2008 Farm Bill: Major
Provisions and Legislative Action
.
48 In 2009, Brazil announced that it was authorized by the WTO to impose trade retaliation against U.S. goods. Among
the countermeasures was $147.3 million for the adverse effects from U.S. price-contingent subsidies. The United States
agreed to pay $147.3 million annually into a Brazilian fund known as the Brazilian Cotton Institute for technical
assistance and capacity building for Brazil’s cotton sector. For more background, see CRS Report RL32571, Brazil’s
WTO Case Against the U.S. Cotton Program
.
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increase funding for the Women, Infants, and Children (WIC) program. An amendment by
Representative DeLauro was adopted in the committee-reported version of the bill that increased
the funding for WIC by $147 million (relative to the subcommittee draft) by prohibiting USDA
from making the Brazil Cotton Institute payment. The DeLauro amendment had two parts. The
increased money for WIC was built into the $6.048 billion for WIC in the committee-reported
version of the bill. The offset portion of the DeLauro amendment—the payment to Brazil—was
to come from mandatory funds under the jurisdiction of the Agriculture authorizing committee
(sec. 743 of the committee-reported bill). This offset provision was left unprotected from points
of order by the rule for floor consideration (H.Res. 300). Subsequently, on the floor,
Representative Lucas successfully raised a point of order against the offset portion on the grounds
that it violated a rule against legislating in an appropriations bill, and the provision was
removed.49
Second, a Brazil Cotton Institute amendment did survive in the House-passed bill, however. A
floor amendment by Representative Kind to prohibit payment to the Brazil Cotton Institute was
adopted by a vote of 223-197 (sec. 751 of the House-passed bill). The Kind amendment had
essentially the same language as the DeLauro offset provision, except it states, “None of the
funds made available by this Act,” rather than the more strict “None of the funds made available
by this Act or any other Act.” The difference was significant enough not to prompt a point of
order. Moreover, the Congressional Budget Office did not assign any budgetary savings to the
provision. Thus, while the House-passed provision appears to prevent the payment to the Brazil
Cotton Institute, CBO’s budget scoring does not suggest that it has the same effect as the original
DeLauro language.
Third, a committee-adopted amendment (sec. 741 of the committee-reported bill) would have
required USDA to reduce the payment rate for upland cotton—part of the direct payment program
in the 2008 farm bill—by an amount to offset the costs of the $147 million payment to the Brazil
Cotton Institute. Like the DeLauro amendment, it was unprotected in the rule for floor
consideration, and was stripped by a point of order for legislating in an appropriations bill.
Fourth, another related committee-adopted amendment (sec. 744 of the committee-reported bill)
would have prevented USDA from making certain farm commodity program payments to farmers
with Adjusted Gross Income (AGI) exceeding $250,000. This would have effectively lowered the
2008 farm bill AGI limitations of $500,000 nonfarm AGI and $750,000 of farm AGI. As in the
cases above, the amendment was unprotected in the rule for floor consideration, and Chairman
Lucas from the Agriculture Committee successfully challenged the provision by a point of order.
Finally, Representative Flake offered a floor amendment to the same effect as the AGI
amendment above, but it was rejected by a vote of 186-228. Representative Blumenauer also
offered a different payment limits amendment—to prevent payments in excess of $125,000 per
year to any individual. It was rejected by a vote of 154-262.

49 But only the prohibition against making the payment to Brazil was removed; the increase to WIC was retained since
it was embedded in a separate portion of the bill. Then, in order to preserve the increased funding for WIC but keep the
bill at the same funding level so that it did not exceed the House’s discretionary limit for the whole agriculture
appropriations bill (since the $147 million of savings from sec. 743 was removed), Rep. Kingston offered an
amendment—adopted by voice vote—for an across-the-board 0.78% rescission to discretionary accounts in the bill (a
new sec. 743 of the House-passed bill) that was scored to save $147 million.
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Crop Insurance
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 (about 60% subsidy, on average). Policies are sold and completely
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.50
The annual Agriculture appropriations bill traditionally makes two separate appropriations for the
federal crop insurance program. First, it provides discretionary funding for the salaries and
expenses of the RMA. Second, it provides “such sums as are necessary” for the Federal Crop
Insurance Fund, which finances all other expenses of the program, including premium subsidies,
indemnity payments, and reimbursements to the private insurance companies.
For the salaries and expenses of the RMA in FY2012, the House-passed bill would provide $68
million, down 14% from FY2011 and in line with the overall reductions in discretionary spending
for agriculture. For FY2012, the Administration requested a 4% increase from FY2011 to cover
additional information technology costs.
In FY2012, the bill would also provide $3.1 billion for the Federal Crop Insurance Fund, or $4.5
billion less than estimated for FY2011.51 The FY2012 amount is substantially lower than for
FY2011, largely because of a one-time shift in the timing of cash flows specified in the 2008 farm
bill to generate budgetary savings within the five-year horizon of the bill. The farm bill provisions
allow USDA to collect two crop years of premiums from farmers during FY2012 (by moving
forward the premium billing date beginning with 2012), and delay the 2012 payment of
reimbursements and underwriting gains to insurance companies into the next fiscal year.
Therefore, the reduction reflected in the FY2012 appropriation mostly reflects an accounting
change, rather than a reduction in program benefits to farmers.
The House-passed bill for FY2012 and the enacted appropriation for FY2011 both prohibit use of
funds under the Federal Crop Insurance Act for performance-based premium discounts to
farmers. In early 2011, RMA had proposed a program to reward farmers participating in the
federal crop insurance program for good performance. It would have been funded by savings
derived from USDA’s renegotiation of the Standard Reinsurance Agreement with insurance
companies in 2010. As designed by USDA, the program would have made payments based on
each qualified producer’s history in the program. Members of Congress were concerned about
program design, including the possibility of sending payments to producers who were no longer
in the program and how such payments would constitute a discount on current crop insurance
purchases.

50 For more information on crop insurance, see CRS Report R40532, Federal Crop Insurance: Background and Issues.
51 The actual amount required to cover program losses and other subsidies is subject to change based on actual crop
losses and farmer participation rates in the program.
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Conservation
More than 20 USDA agricultural conservation programs assist private landowners with natural
resource concerns. These include working land programs, land retirement and easement
programs, watershed programs, technical assistance, and other programs. The two lead
agricultural conservation agencies within USDA are the Natural Resources Conservation Service
(NRCS), which provides technical assistance and administers most programs, and the Farm
Service Agency (FSA), which administers the largest program, the Conservation Reserve
Program (CRP). The majority of conservation program funding is mandatory and funded through
the Commodity Credit Corporation (CCC). Other conservation programs, mostly technical
assistance, are discretionary and funded through annual appropriations.52
The House-passed bill accepted, and in some programs exceeded, many of the Administration’s
proposed reductions to both mandatory and discretionary conservation programs for FY2012. The
House-passed bill would reduce discretionary NRCS funding by $100 million (from $888 million
in FY2011 to $783 million in FY2012, after the 0.78% rescission). The Administration’s proposal
would have increased discretionary funding $10 million to $899 million in FY2012.
Mandatory programs authorized under the 2008 farm bill are authorized to automatically increase
by an estimated $880 million in FY2012. The House-passed bill would reduce certain mandatory
conservation programs by over $1 billion in FY2012. The Administration request would make
smaller total reductions ($585 million) to fewer programs. Both the Bush and Obama
Administrations have proposed reductions in conservation funding in the past; most of which are
more substantial than Congress has supported. The FY2012 appropriation may revert to a trend
prior to the 2008 farm bill that reduces mandatory funding for multiple conservation programs.
Discretionary Conservation Programs
All of the discretionary conservation programs are administered by NRCS. Most of the reduction
in discretionary funding in the House-passed bill is for Conservation Operations (CO), the largest
discretionary program. The House-passed bill would provide $765 million for FY2012 (after
rescission; $106 million less than FY2011 and $134 million less than the Administration’s
request). The House report also directs funding for several Administration initiatives proposed in
the budget, including $5 million for the Conservation Effects Assessment Project (the
Administration requested a $7 million increase), $5 million for the Conservation Delivery
Streamlining Initiative (the Administration requested an $11.3 million increase), and the removal
of funds for the Grazing Lands Conservation Initiative. Other Administrative initiatives proposed
in the budget were rejected in the House report, including a $15 million requested increase for the
Strategic Watershed Action Teams and the Administration’s proposal to charge a fee for
comprehensive conservation planning, a core activity currently provided to producers for free.
The House report also urged NRCS to continue collaboration with the National Marine
Sanctuaries. The U.S. Forest Service and NRCS, along with other public agencies, private
industries, and conservation groups have partnered with the National Oceanic and Atmospheric

52 For a brief description of the individual USDA agricultural conservation programs, see CRS Report R40763,
Agricultural Conservation: A Guide to Programs.
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Administration’s (NOAA) National Marine Sanctuaries to address water quality concerns in the
Monterey Bay watershed of California.53
The House-passed bill maintains funding for other discretionary programs that the Administration
proposed to terminate, including the Watershed and Flood Prevention Operations ($3 million to
remain available until expended) and the Watershed Rehabilitation Program ($15 million).
Funding for the Watershed and Flood Prevention Operations was included in the House-passed
bill as an amendment introduced and passed on the floor. The increase was offset by a reduction
to the agricultural buildings and facilities and rental payments account.
The FY2011 long-term continuing resolution terminated funding for the Resource Conservation
and Development (RC&D) program. The RC&D program was authorized in 1962 and consists of
375 designated RC&D areas across the country. An RC&D area is a locally defined multi-county
area, sponsored and directed by an RC&D council. NRCS assists RC&D councils through an
RC&D coordinator, who facilitates the development and implementation of an individualized and
locally determined program (i.e., area plan). According to testimony offered by the Chief of
NRCS, approximately 80% of the RC&D budget is directed toward personnel.54 The Chief also
testified that termination of RC&D funding could mean that the 140 healthiest RC&D councils
might survive on funds from elsewhere, while the other 235 will likely be dissolved.55
Following termination of the RC&D program, as well as other funding reductions in FY2011, the
Office of Management and Budget (OMB) approved buyout and early retirement packages for
544 positions at USDA. Over 400 of the 544 buyout offers were made available to NRCS
employees.56 It is unclear how many buyout offers will be accepted at NRCS and whether buyout
packages will provide enough budgetary relief from the FY2011 funding reductions. Additional
reductions in staffing could be necessary if the House-passed reductions of $106 million in
discretionary funding and $1 billion in mandatory funding are adopted for FY2012.
Mandatory Conservation Programs
Mandatory conservation programs are administered by NRCS and FSA. Funding comes from the
CCC and therefore does not require an annual appropriation. The House bill accepts many of the
Administration’s proposed $585 million of reductions to mandatory conservation programs and
makes further cuts below authorized levels. The House-passed bill would reduce these programs
by over $1 billion, which is $389 million more than the FY2011 reduction of $673 million (see
discussion in “Changes in Mandatory Program Spending (CHIMPS)” and Table 10).
Funding for the largest conservation program, FSA’s Conservation Reserve Program (CRP),
would not change and was estimated at about $2.2 billion for FY2012. The House-passed bill
would limit the Environmental Quality Incentives Program (EQIP), NRCS’s largest working

53 NOAA, National Marine Sanctuaries, Monterey Bay Issue Name: Water Quality – WQPP Implementation, http://
sanctuaries.noaa.gov/jointplan/mb_wq_wqpp.html.
54 U.S. Congress, House Committee on Appropriations, Subcommittee on Agriculture, Rural Development, Food and
Drug Administration, and Related Agencies, Budget Hearing, USDA—Under Secretary for Natural Resources and
Environment
, Testimony of Dave White, Chief of NRCS, 112th Cong., 1st sess., April 5, 2011.
55 “USDA Natural Resources Conservation Service Leadership Testifies at House Appropriations Hearing,” National
Sustainable Agriculture Coalition
, April 6, 2011, http://sustainableagriculture.net/blog/nrcs-appropriations-hearing/.
56 “USDA: Buyouts offered to 400 conservation-service employees,” Greenwire, June 3, 2011.
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lands program, to $1.4 billion for FY2012—a reduction of $350 million from the authorized level
of $1.75 billion in the 2008 farm bill. The House-passed bill’s reductions are more extensive than
USDA’s proposal for other programs, such as the Conservation Stewardship Program (CSP, $210
million reduction), the Wetlands Reserve Program (WRP, estimated $200 million reduction),
Watershed Rehabilitation Program ($165 million reduction), and the Wildlife Habitat Incentives
Program (WHIP, $35 million reduction). The House-passed bill included reductions to programs
that would not have been reduced under the Administration’s proposal, including the Farmland
Protection Program (FPP, $50 million reduction) and the Voluntary Public Access and Habitat
Incentives Program (VPAHIP, estimated $17 million reduction). The House-passed bill also
would reduce the Grasslands Reserve Program (GRP, estimated $30 million reduction), though
not as much as the Administration’s proposal (Table 10).
Table 10. Mandatory Conservation Program Reductions, FY2011 and FY2012
Proposed
(dollars in millions)

FY2011
FY2012
Differences
Authorized
Between
Allowed
level under
H.R. 2112
Between
levels under
the 2008
Admin.
House H.R.
and
H.R. 2112
Program
P.L. 112-10
farm bill
Request
2112
Authorized
and Request
EQIP
1,238 1,750 1,408 1,400 -350
-8
CSP 649
844
a 842
a 634 -210 -208
WRP 425
a 617
a 608
a 417
a -200 -191
Dam Rehab
0
165
0
0
-165
0
FPP
175 200 200 150 -50 -50
WHIP
85 85 73 50 -35 -23
GRP 120
a 92
a 42
a 62
a -30 20
VPAHIP 21
b 17 17 0 -17 -17
AMA
15 15 10 10 -5 0
Total
2,162 2,232 1,708 2,244 -1,062 -477
Sources: P.L. 112-10, House-passed H.R. 2112, and CBO March 2011 Baseline for CCC & FCIC.
Notes: EQIP = Environmental Quality Incentives Program; CSP = Conservation Stewardship Program; WRP =
Wetlands Reserve Program; Dam Rehab = Watershed Rehabilitation Program; FPP = Farmland Protection
Program; WHIP = Wildlife Habitat Incentives Program; GRP = Grasslands Reserve Program; VPAHIP =
Voluntary Public Access and Habitat Incentives Program; and AMA = Agricultural Management Assistance
Program.
a. Calculated by CRS based on CBO estimates. CSP, WRP, and GRP are authorized to enroll acres and are
not limited by dollar amounts. Estimates are based on the total acres each program is authorized to enroll.
b. VPAHIP is authorized to spend $50 million between FY2009 and FY2012. Annual levels are CBO estimates
based on program expenditures.
Congress has included reductions in mandatory conservation programs each year since FY2003 in
the annual Agricultural appropriations law. Although Congress usually does not reduce funding as
much as requested by the Administration, it does not always use the savings from these reductions
toward other conservation activities. Prior to the 2008 farm bill, reductions to conservation
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programs through appropriations law peaked in FY2006 with a reduction totaling $638 million
(Figure 12). Since the passage of the 2008 farm bill, reductions have been made primarily to
EQIP and the Watershed Rehabilitation Program. The reductions in the House-passed bill for
FY2012 would be the largest reduction to mandatory conservation programs to date.
Figure 12. Mandatory Conservation Program Reductions, FY2003-FY2011 and
FY2012 Proposed
1200
VPAHIP
GRP
AMA
1000
GSWC
FPP
WHIP
800
CSP
WRP
d
Dam Rehab
ce
du

EQIP
e
600
n r
llio

$ mi
400
200
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
H.R. 2112
(2012)
Fiscal Year

Source: CRS. For more information, see CRS Report R41245, Reductions in Mandatory Agriculture Program
Spending
, by Jim Monke and Megan Stubbs.
Notes: The FY2008 appropriations act (P.L. 110-161) limited EQIP, but the 2008 farm bill (P.L. 110-246) was
enacted later and superseded the appropriation reduction. The 2008 farm bill restored and increased EQIP
funding. The FY2008 farm bill also suspended the Conservation Security Program and created the Conservation
Stewardship Program. Therefore, prior to 2008, CSP refers to the Conservation Security Program; after 2008,
CSP refers to the Conservation Stewardship Program.
Several conservation, environmental, and farm constituency groups that support conservation
programs decry reductions from the funding commitment established in the farm bill. Members of
the House Agriculture Committee also have expressed concern over the reductions, which some
consider to be an encroachment of the committee’s jurisdiction.57 House Appropriators
acknowledged these concerns with the following statement in the House report:58

57 Letter from Frank Lucus, Chairman of the House Committee on Agriculture, and Collin Peterson, Ranking Majority
Member, to Paul Ryan, Chairman of the House Committee on Budget, March 15, 2011, http://agriculture.house.gov/
pdf/business-meeting/BudgetviewsestimateletterFY12.pdf; and Letter from Collin Peterson, Ranking Member of the
House Committee on Agriculture, to David Dreier, Chairman of the House Committee on Rules, June 13, 2011, http://
democrats.agriculture.house.gov/06-13-2011%20Peterson%20to%20Rules%20HR2112.pdf.
58 H.Rept. 112-101, page 105.
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The bill includes over $1.5 billion in limitations on mandatory programs, most of them
funded in the 2008 farm bill and most of them in the conservation and bio-energy areas. We
expect deep concern about these cuts from the Agriculture Committee, as well as persons
supporting these programs.
While most conservation advocates criticize reduced conservation funding for any fiscal year,
additional emphasis is placed on reductions proposed in FY2012. Most farm bill program
authority will expire at the end of FY2012. Because CBO uses the last year of authorization to
determine the 10-year funding baseline for the farm bill reauthorization, a reduction in the last
year of a farm bill’s authorization could multiply the effect on the 10-year farm bill.
To address this concern, the House-passed bill would extend select farm bill expiration dates to
2014. These programs’ authorities—EQIP, WHIP, CSP, and FPP—currently expire in 2012. The
extension allows appropriators to score savings in FY2012, but not affect the overall farm bill
baseline. CBO could score the amended conservation programs based on their authorized funding
level in 2014, which is higher than their reduced level in the House-passed bill. Thus the
reductions in the House-passed bill would have less of an effect on the Agriculture Committee’s
overall farm bill baseline. Just as the savings from conservation reductions in the 2012 House-
passed bill are not always redirected toward other conservation activities, the reestablishment of
the farm bill baseline through expiring conservation programs does not guarantee that future farm
bills will extend the same level of support for conservation.
Programs that are reduced in the House-passed bill but do not have a baseline beyond 2012—
when most farm bill program’s authority expires—are not extended. Programs such as WRP and
GRP do not have a budget baseline beyond 2012 and therefore reductions in 2012 would not
affect the overall farm bill baseline. For this reason, some view these programs to be more
vulnerable to reductions in appropriations. For example, the Voluntary Public Access and Habitat
Incentives Program has authority to spend $50 million until September 30, 2012, and has no
baseline funding beyond 2012.59 Under the House-passed bill, no funds are to be expended in
FY2012, effectively terminating the program before its authorized expiration. Extending the
authority of these programs would require an offset or reduction elsewhere under current budget
law and procedures.
Rural Development
Three agencies are responsible for USDA’s rural development mission area: the Rural Housing
Service (RHS), the Rural Business-Cooperative Service (RBS), and the Rural Utilities Service
(RUS). An Office of Community Development provides community development support
through field offices. This mission area also administers Rural Economic Area Partnerships and
the National Rural Development Partnership.60
For FY2012, the House-passed appropriation bill (H.R. 2112) recommends $2.24 billion in
discretionary budget authority (after the 0.78% across-the-board rescission) to support $34.8
billion in USDA rural development loan and grant programs (Table 11). The committee’s

59 For more information about programs without a baseline, see CRS Report R41433, Previewing the Next Farm Bill:
Unfunded and Early-Expiring Provisions
.
60 For more about rural development programs generally, CRS Report RL31837, An Overview of USDA Rural
Development Programs
.
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recommendation is $399 million less (-15%) in budget authority than FY2011 and approximately
$1 billion less in loan authority (-3%). The Administration had requested $2.44 billion in budget
authority and $33.8 billion in loan authority.
Salaries and expenses within Rural Development are funded from a direct appropriation and
transfers from each of the agencies. The combined salaries and expenses total in the House-
passed bill is $590 million, $98 million less than FY2011 (-14%). Amounts for each agency, after
the transfer of salaries, are discussed in the following sections.
Table 11. Rural Development Appropriations, by Agency, FY2010-FY2011 and
FY2012 Proposed
(budget authority in millions of dollars)
Change from FY2011

FY2010
FY2011
FY2012
to FY2012-House
HouseError!
Reference source
P.L. 111-
P.L. 112-
Admin.
not found. a
Program
80
10
Request
H.R. 2112
$
%
Salaries and expenses (direct)
202.0
191.6
234.3
159.8
-31.8
-17%
Transfers from RHS, RBCS, RUS
513.5
496.7
456.7
430.1
-66.6
-13%
Subtotal, salaries and exp.
715.5
688.3
691.0
589.9
-98.4
-14%
Rural Housing Service
1,424.2
1,224.0
1,034.3
1,037.3
-186.6
-15%
Rural Business-Cooperative Service
184.8
127.8
180.5
93.6
-34.3
-27%
Rural Utilities Service
653.4 596.7 537.0 516.9 -79.8 -13%
Undersecretary for Rural Development
0.9
0.9
0.9
0.8
-0.1
-11%
Total, Rural Development
2,978.8
2,637.8
2,443.6
2,238.5
-399.3
-15%
Source: CRS, complied from House-passed H.R. 2112, H.Rept. 112-101, P.L. 112-10, P.L. 111-80, and
unpublished appropriations tables.
a. Amounts shown for H.R. 2112 are estimates that reflect the across-the-board 0.78% rescission to
discretionary accounts in sec. 743.
In report language, the Committee notes that the FY2012 budget request proposed a Regional
Innovation Initiative. The initiative would support a proposed new rural development strategy
based on five pillars: (1) rural broadband, (2) biofuels and biobased products, (3) linking local
production and consumption of farm products, (4) ecosystem markets to pay producers for
sequestering carbon, and (5) forest restoration and private land conservation. The Committee
provides no funding for the Initiative, stating that they have not received requested information
from USDA on the Initiative’s purpose and plans. The Committee directs USDA not to spend any
funds of the Rural Community Development Initiative on the Regional Innovation Initiative.
Likewise, the Committee also directs USDA not to spend any funds on the Know Your Farmer,
Know Your Food Initiative.61 Local and regional food projects may be eligible for funding

61 For more information and a discussion of a funding limitation in the House-passed bill, see the section “USDA’s
“Know Your Farmer, Know Your Food” Initiative” later in this report.
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independently under several USDA Rural Development programs (e.g., Business and Industry
Guaranteed loans, Rural Business Enterprise Grants, Community Facilities loans).
Rural Housing Service (RHS)
The House-passed bill recommends $1.43 billion in budget authority for RHS (after the 0.78%
across-the-board rescission, Table 12). After transferring salaries and expenses, the amount for
RHS loans and grants is $1.04 billion, $187 million less than FY2011 (-15%). The House bill
recommends a total of $26.0 billion in RHS loan authority for FY2012, $278 million more than
enacted for FY2011 (+1%). Within RHS, $18 million of budget authority supports the Rural
Community Facilities account, providing loans and grants for “essential community facilities” in
areas with less than 20,000 population. This is $23 million less than enacted for FY2011 (-57%).
The Community Facilities budget includes $10 million in grants (-33% compared to FY2011), $5
million to support $1.1 billion of direct and guaranteed loans, and $3.0 million for the Rural
Community Development Initiative (-40% compared to FY2011). The House bill proposes to
eliminate funding for Economic Impact Initiative grants and grants to tribal colleges.
Single-family housing loans (also known as “Section 502” direct and guaranteed loans; that is,
Section 502 of the Housing Act of 1949) constitute the largest RHS loan account and represent
95% of the total loan authority under RHS for FY2012. The House bill recommends $24.8 billion
in loan authorization for Section 502 direct and guaranteed loans, $276 million less than FY21011
but $634.2 million more than requested. The guaranteed loan program is by far the larger with
$24 billion of the $24.8 billion total. The bill would eliminate funding for housing repair loans
(Section 504, $23.4 million in FY2011), and multi-family loan guarantees (Section 538, $31.0
million in FY2011). The House bill also recommends $20.0 million in loan subsidies for Section
515 rental housing to support $58.6 million in loans ($11 million less in loans than in FY2011).
For the rental assistance program (Section 521), the House bill recommends $897 million, a
decrease of $70 million from FY2011 (-7%). For mutual and self-help housing grants, the bill
recommends $22 million (-41%); for rural housing assistance grants, $32.0 million (-21%).
Table 12. Rural Housing Service Appropriations, FY2010-FY2011 and FY2012
Proposed
(budget authority in millions of dollars)
Change from FY2011

FY2010
FY2011
FY2012
to FY2012-House
P.L. 111-
P.L. 112-
Admin.
House a
Program
80
10
Request
H.R. 2112
$
%
Rural Housing Insurance Fund (RHIF) programs
Administrative expenses (transfer)
468.6
453.5
411.8
396.9
-56.6
-12%
Single family direct loans (sec. 502)
40.7
70.1
10.0
39.7
-30.4
-43%
Loan authority
1,121.5
1,121.4
211.4
845.7
-275.7
-25%
Single family guaranteed loans b
172.8 0.0 0.0 0.0 0.0 0%
Loan
authority
12,000.0 24,000.0 24,000.0 24,000.0
0.0
0%
Other RHIF programs c
45.1 71.3 51.7 32.2 -39.1 -55%
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Change from FY2011

FY2010
FY2011
FY2012
to FY2012-House
P.L. 111-
P.L. 112-
Admin.
House a
Program
80
10
Request
H.R. 2112
$ %
Loan authority c
281.8 171.0 122.5 76.9 -94.1 -55%
Subtotal,
RHIF
727.2 575.2 473.5 468.8 -106.3 -18%
Loan
authority
13,403.3 25,292.4 24,333.9 24,922.6 -369.8
-1%
Other housing programs
Rental assistance (sec. 521)
968.6
948.7
900.7
879.1
-69.6
-7%
Other rental assistance d
11.4 5.0 6.0 4.0 -1.1
-22%
Multifamily housing revitalization
43.2
29.9
16.0
10.9
-19.0
-63%
Mutual & self-help housing grants
41.9
36.9
0.0
21.8
-15.1
-41%
Rural housing assistance grants
45.5
40.3
11.5
31.8
-8.6
-21%
Rural Community Facilities Program
Community Facilities: Grants
20.4
15.0
30.0
9.9
-5.0
-33%
Community Facilities: Direct loans
3.9
3.9
0.0
0.0
-3.9
-101%
Loan authority
295.0
290.5
1,000.0 1,000.0 +709.5 +244%
Community Facilities: Guarantees
6.6
6.6
0.0
5.0
-1.7
-26%
Loan
authority
206.4 167.7 0.0 105.7 -62.0 -37%
Rural community dev. initiative
6.3
5.0
8.4
3.0
-2.0
-40%
Economic impact initiative grants
13.9
7.0
0.0
0.0
-7.0
-100%
Tribal col ege grants
4.0
4.0
0.0
0.0
-4.0
-101%
Subtotal, Rural Comm. Facil.
55.0
41.4
38.4
17.9
-23.5
-57%
Loan
authority
501.4 458.3 1,000.0 1,105.7 +647.4 +141%
Total, Rural Housing Service
Budget
authority
1,892.8 1,677.5 1,446.0 1,434.2 -243.2 -14%
Less transfer salaries & exp.
-468.6
-453.5
-411.8
-396.9
+56.6
-12%
Total, Rural Housing Service
1,424.2
1,224.0
1,034.3
1,037.3
-186.6
-15%
Loan
authority
13,904.7 25,750.7 25,333.9 26,028.3 +277.6
+1%
Source: CRS, complied from House-passed H.R. 2112, H.Rept. 112-101, P.L. 112-10, P.L. 111-80, and
unpublished appropriations tables.
Notes: Loan authority is the amount of loans that can be made and is not added to budget authority totals.
a. Amounts shown for H.R. 2112 are estimates that reflect the across-the-board 0.78% rescission to
discretionary accounts in sec. 743.
b. The defunding of appropriations for this loan guarantee program does not reflect a reduction in loan
authority. It became self-funding in 2010 after enactment of higher loan guarantee fees being charged to
banks (sec. 102 of P.L. 111-212) and therefore no longer needs an appropriation.
c. Includes Sec. 504 housing repair, Sec. 515 rental housing, Sec. 524 site loans, Sec. 538 multi-family housing
guarantees, single and multi-family housing credit sales, Sec. 523 self-help housing land development, and
farm labor housing,
d. Sec. 502(c)(5)(D) eligible households, Sec. 515 new construction, and farm labor housing new construction.
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Rural Business-Cooperative Service (RBS)
The House-passed bill recommends $93.6 million in budget authority for RBS for FY2012 (after
the 0.78% rescission and after transferring salaries, Table 13), about $36 million less than enacted
for FY2011 (-27%). For all RBS loan programs, the bill recommends $679 million in loan
authorization, approximately $273 million less than FY2011 (-29%).
Table 13. Rural Business-Cooperative Service Appropriations, FY2010-FY2011 and
FY2012 Proposed
(budget authority in millions of dollars)
Change from FY2011

FY2010
FY2011
FY2012
to FY2012-H
P.L. 111-
P.L. 112-
Admin.
House a
Program
80
10
Request
H.R. 2112
$
%
Rural Business Program Account
Guar. Bus. & Ind. (B&I) Loans
52.9
44.9
52.5
39.7
-5.2
-12%
Loan
authority
993.0 889.1 822.9 627.0 -262.2 -29%
Rural bus. enterprise grants
38.7
34.9
29.9
19.8
-15.1
-43%
Rural bus. opportunity grants
2.5
2.5
7.5
2.2
-0.2
-8%
Delta regional authority grants
3.0
3.0
0.0
2.2
-0.7
-24%
Rural Development Loan Fund Program
Admin.
expenses
(transfer)
4.9 4.9 4.9 3.5 -1.5
-30%
Loan
subsidy
8.5 7.4 12.3 5.0 -2.4
-32%
Loan
authority
33.5 19.2 36.4 14.8 -4.4 -23%
Rural Econ. Dev.: Loan authority
33.1
33.1
33.1
33.1
0.0
0%
Rural coop. development grants
34.9
30.2
35.9
22.3
-7.9
-26%
Rural
Microenterprise
Inv.:
Grants 2.5 0.0 2.9 0.0 0.0 0%
Loan
subsidy
2.5 0.0 2.9 0.0 0.0 0%
Loan
authority
11.8 0.0 8.7 0.0 0.0 0%
Rural Energy for America: Grants
19.7
2.5
34.0
1.1
-1.4
-56%
Loan
subsidy
19.7 2.5 2.8 1.1 -1.4
-56%
Loan
authority
144.2 10.8 10.6 4.4 -6.4 -59%
Biorefinery
Assist.:
Loan
subsidy
0.0 0.0 0.0 0.0 0.0 0%
Loan
authority
0.0 0.0 0.0 0.0 0.0 0%
Total, Rural Business-Cooperative Service
Budget
authority
189.7 132.8 185.5 97.0 -35.7 -27%
Less transfer salaries & exp.
-4.9
-4.9
-4.9
-3.5
+1.5
-30%
Total
184.8 127.8 180.5 93.6 -34.3 -27%
Loan
authority
1,215.7 952.2 911.7 679.2 -273.0 -29%
Source: CRS, complied from House-passed H.R. 2112, H.Rept. 112-101, P.L. 112-10, P.L. 111-80, and
unpublished appropriations tables.
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Notes: Loan authority is the amount of loans that can be made and is not added to budget authority totals.
a. Amounts shown for H.R. 2112 are estimates that reflect the across-the-board 0.78% rescission to
discretionary accounts in sec. 743.
Within RBS, the Rural Business Program account would receive $64.5 million in the House bill,
about $21 less than FY2011 (-24.4%). For the Rural Energy for America Program (REAP), the
House bill recommends $2.2 million (-56% FY2011). No discretionary funding is recommended
for the Rural Microentrepreneur Assistance Program, the same as for FY2011. The House bill
also would rescind the $3.0 million in authorized mandatory spending for the program (Table 6).
Rural Utilities Service (RUS)
The House-passed bill recommends $517 million in budget authority for RUS for FY2012 (after
the 0.78% across-the-board rescission, and after transferring salaries, Table 14). This is $80
million less than FY2011 (-13%). The total loan authority for RUS programs would be $8.1
billion, about $1 billion less than FY2011 (-11%).
Loan subsidies and grants under the Rural Water and Waste Disposal Program account represent
the largest share of FY2012 budget authority under RUS programs (approximately 92% of the
total). The House bill recommends $496 million in budget authority, $32 million less than
FY2011 (-6%). This budget authority would support $730.7 million in direct and guaranteed
loans, $168 million less than FY2011 (-19%). The budget authority is divided among the
following programs: (1) Water/Waste Water direct loan subsidies ($70.0 million) and grants
($327.1 million); (2) Solid Waste Management program ($3.4 million); Individual Well Water
grants ($993,000); and Water and Waste Water revolving fund ($497,000). The bill recommends
no funding for High Energy Cost grants ($12.0 million in FY2011).
The House bill would transfer $30.0 million in rural electric loan program administrative
expenses to USDA Rural Development to support $7.3 billion in electric and telecommunication
loans, $500.0 million less than FY2011. Most of the recommended loan authority is for direct
Federal Finance Back electric loans.
Under the Distance Learning/Telemedicine program, the House bill recommends $15 million in
grant support, $17.6 million less than FY2011 (-54%).
The Committee-reported bill would have eliminated funding for rural broadband ($13 million of
grants and $22 million of loan subsidy supporting $400 million of loans in FY2011). However a
floor amendment restored $6 million for rural broadband direct loans. At the loan-to-subsidy
ratio that applied to FY2011, this would allow about $108 million of loans.
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Table 14. Rural Utilities Service Appropriations, FY2010-FY2011 and FY2012
Proposed
(budget authority in millions of dollars)
Change from FY2011

FY2010
FY2011
FY2012
to FY2012-H
P.L. 111-
P.L. 112-
Admin.
House a
Program
80
10
Request
H.R. 2112
$
%
Rural Water and Waste Disposal Program
Loan subsidy and grants
568.7
527.9
489.0
496.1
-31.8
-6%
Direct
loan
authority
1,022.2 898.3 770.0 730.7 -167.6 -19%
Guaranteed loan authority
75.0
75.0
12.0
0.0
-75.0
-100%
Rural Electric and Telecommunication Loans
Admin.
expenses
(transfer)
40.0 38.3 40.0 29.8 -8.5 -22%
Telecommunication
loan
authority
690.0 690.0 690.0 690.0 0.0 0%
Guar. underwriting loan subsidy

0.7
0.0
0.0
-0.7
-100%
Electricity loan authority
7,100.0
7,100.0 6,100.0 6,600.0 -500.0
-7%
Distance Learning, Telemedicine, Broadband
Distance learning & telemedicine
37.8
32.4
30.0
14.9
-17.6
-54%
Broadband:
Grants
18.0 13.4 18.0 0.0 -13.4
-100%
Broadband: Direct loan subsidy
29.0
22.3
0.0
6.0
-16.3
-73%
Direct loan authority
400.0
400.0
0.0
107.5
-292.5
-73%
Subtotal, Rural Utilities Service
Budget
authority
693.4 635.0 576.9 546.7 -88.3 -14%
Less
transfer
salaries
&
exp.
-40.0 -38.3 -40.0 -29.8 +8.5 -22%
Total, Rural Utilities Service
653.4
596.7
537.0
517.0
-79.7
-13%
Loan
authority
9,287.2 9,163.3 7,572.0 8,128.2 -1,035.0 -11%
Source: CRS, complied from House-passed H.R. 2112, H.Rept. 112-101, P.L. 112-10, P.L. 111-80, and
unpublished appropriations tables.
Notes: Loan authority is the amount of loans that can be made and is not added to budget authority totals
a. Amounts shown for H.R. 2112 are estimates that reflect the across-the-board 0.78% rescission to
discretionary accounts in sec. 743.
Domestic Food Assistance
Funding for domestic food assistance represents over two-thirds of USDA’s budget. These
programs are, for the most part, mandatory entitlements; that is, funding depends directly on
program participation and, in some cases, indexing for inflation. The biggest mandatory
programs include the Supplemental Nutrition Assistance Program (SNAP, formerly the Food
Stamp program), child nutrition programs, and The Emergency Food Assistance Program
(TEFAP). The three main 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.
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The House bill would provide a total of $96.3 billion for domestic food assistance.62 This amount
is $3.5 billion less than requested by the Administration ($99.8 billion), although it is $6.6 billion
above the FY2011 figure. While SNAP and child nutrition were increased in accordance with the
Administration’s forecast for need, H.R. 2112 primarily reduced funding to the WIC program,
SNAP contingency reserve fund, and decreased TEFAP funding.
SNAP and Other Programs under the Food and Nutrition Act (Formerly the
Food Stamp Act)

Appropriations under the Food and Nutrition Act support (1) the Supplemental Nutrition
Assistance Program (SNAP), (2) a Nutrition Assistance Block Grant for Puerto Rico and nutrition
assistance grants to American Samoa and the Commonwealth of the Northern Mariana Islands
(all in lieu of the SNAP), (3) the cost of food commodities and administrative/distribution
expenses under the Food Distribution Program on Indian Reservations (FDPIR), (4) the cost of
commodities for TEFAP (but not administrative/distribution expenses, which are covered under
the Commodity Assistance Program budget account), and (5) Community Food Projects and
grants to improve access to the SNAP.
The House bill would provide a total of $71.1 billion63 for programs under the Food and Nutrition
Act. Funding in H.R. 2112 represents a $6.0 billion increase (+9%) over the total amount
available for FY2011 (primarily because of Administration-forecasted increases in SNAP
participation) but is $2.0 billion less than the amount requested by the Administration. H.R. 2112
includes a $3 billion contingency reserve for SNAP, although the Administration requested $5
billion.
The House-passed bill would provide for Food and Nutrition Act appropriations:
• $69.0 billion for SNAP, including a $3 billion contingency reserve and $4.2
billion for administrative costs,
• $1.75 billion for Puerto Rico’s grant, plus some $19 million for American Samoa
and the Commonwealth of the Northern Mariana Islands,
• $200 million for TEFAP commodities (with permission to use up to 10% of this
amount for distribution costs), and
• $103 million for the FDPIR,
• $5 million each for Community Food Projects and SNAP program access grants.
The total H.R. 2112 appropriation for TEFAP commodities is $50 million below the
approximately $250 million that is included in the Food and Nutrition Act and was appropriated
for FY2008, FY2009, FY2010, and FY2011. The House bill achieves this reduction by including
a cap in Section 730 of the bill (included in Table 6).

62 See later section headed “Other Funding Support” for domestic food assistance funding from non-appropriations bill
sources.
63 This total takes into account that Section 730 of H.R. 2112 would effect a $50 million reduction to TEFAP.
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In addition to the FY2012 regular appropriation, the American Recovery and Reinvestment Act
(ARRA, P.L. 111-5) is scheduled to continue to provide added SNAP benefits through October
31, 2012.64
Child Nutrition Programs
Appropriations under the child nutrition budget account fund a number of programs and activities
covered by the Richard B. Russell National School Lunch Act and the Child Nutrition Act. These
include the School Lunch and Breakfast programs, the Child and Adult Care Food Program
(CACFP), the Summer Food Service program, the Special Milk program, assistance for child-
nutrition-related state administrative expenses (SAE), procurement of commodities for child
nutrition programs (in addition to those funded from separate budget accounts within USDA),
state-federal reviews of the integrity of school meal operations (“Coordinated Reviews”), “Team
Nutrition” and food safety education initiatives to improve meal quality and safety in child
nutrition programs, and support activities such as technical assistance to providers and
studies/evaluations. (In addition to these appropriations, child nutrition efforts are supported by
mandatory permanent appropriations and other funding sources discussed below in “Other
Funding Support.”)
The House bill would appropriate $1.4 billion more for the child nutrition account than the
amount provided in FY2011 (+8%) and $40 million below the Administration’s request. It would
provide a total of $18.8 billion. This is primarily the result of added funding for school meal
programs (based on estimates of increased participation) but not providing funding for “Hunger-
Free Community” grants (-$25 million), State Childhood Hunger Challenge grants (-$10 million),
and School Breakfast Expansion grants (-$10 million).65
While the child nutrition appropriation itself is not broken down program by program and funding
can be shifted among program areas if needed, report language in H.Rept. 112-101 breaks out the
FY2012 funding as follows:
• $10.9 billion for the School Lunch program,
• $3.3 billion for the School Breakfast program,
• $2.8 billion for the CACFP,
• $973 million for procurement of commodities for child nutrition programs,66
• $400 million for the Summer Food Service program, and
• $279 million for SAE.
The WIC Program
The House-passed bill would provide $6.001 billion for the WIC program in FY2012.67 This is
$733 million below the FY2011 appropriation (-11%) , and less than the $7.390 billion requested

64 See CRS Report R41374, Reducing SNAP (Food Stamp) Benefits Provided by the ARRA: P.L. 111-226 and P.L. 111-
296
.
65 These programs are discussed later in the section headed “ in H.R. 2112.”
66 This represents approximately half of the expected value of commodities to be provided to child nutrition programs.
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by the Administration. The H.R. 2112 WIC appropriation also allocates some $139 million of the
total for specific WIC support activities: at least $64 million for program infrastructure
development and state management information systems and $75 million for breastfeeding peer
counseling.
While SNAP (and other Food and Nutrition Act programs) and child nutrition programs are
appropriated entitlements, meaning that the money appropriated is to be enough to provide
services to all that are entitled according to underlying law’s program requirements, WIC is a
discretionarily funded program. Nonetheless, historically, appropriators have treated WIC as
though it was an entitlement, appropriating enough to serve all eligible. This H.R. 2112
appropriation may reduce the number of pregnant and postpartum women, infants, and children
that the program can serve, according to data in the Administration’s FY2012 budget request.
WIC Amendments in Committee and House-passed H.R. 2112
The funding level for WIC was subject to amendments in subcommittee and on the floor, and a
topic for extensive floor debate over the direction of and/or need for cuts in the bill. An
amendment by Representative Rosa DeLauro was adopted in the committee-reported version of
the bill that increased the funding for WIC by $147 million (relative to the subcommittee
draft) by prohibiting USDA from making a payment to the Brazil Cotton Institute.68 The
DeLauro amendment was in two parts: (1) an increase to the WIC appropriation section in the
subcommittee draft from $5.901 billion to the $6.048 billion in the committee-reported version of
the bill, and (2) the offset from mandatory funds under the jurisdiction of the Agriculture
authorizing committee (sec. 743 of the committee-reported bill). The rule for floor consideration
(H.Res. 300) of H.R. 2112 did not protect the offset from points of order. On the floor,
Representative Lucas successfully raised a point of order against the offset on the grounds that it
violated a rule against legislating in an appropriations bill, and the offset provision was removed.
With the offset struck, the increase to WIC was retained and unpaid for. In order to preserve the
increased funding for WIC but keep the bill at the same funding level so that it did not exceed the
House’s discretionary limit for the whole agriculture appropriations, Chairman Kingston offered
an amendment, adopted by voice vote, for an across-the-board 0.78% rescission to discretionary
accounts in the bill (a new section 743 of the House-passed bill) that was scored to save $147
million.
This rescission affects the WIC section as well, so that WIC funding in H.R. 2112 is closer to $6
billion rather than the $6.048 billion figure in legislation.

(...continued)
67 Section 743 contains a 0.78% across-the-board cut to discretionary accounts. With the information currently
available, it is not possible to know how the agency would apply this reduction within an account.
68 The payment to the Brazil Cotton Institute is discussed in the “Commodity Credit Corporation” section of this report.
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Additional WIC Issues in H.R. 2112 Subcommittee Report and Floor Debate
In addition to the WIC appropriation itself, Chairman Kingston’s subcommittee report language
and the floor debate included discussion of several WIC issues.69 Some of the issues discussed
include:
Adjunctive eligibility. WIC law allows eligibility for WIC benefits based on
enrollment in other low-income programs, including Medicaid. Because certain
states have Medicaid income limits as high as 250% of the Federal Poverty
Level, some WIC participants in some states have higher incomes than the 185%
FPL limit in WIC’s authorizing statute.70
Administrative costs. Because of how cost data is collected, the costs of
nutrition counseling are included in the overall administrative costs for the
program. This can create a deceptively high percentage of WIC’s administrative
costs, depending on whether one considers nutrition counseling to be a
fundamental service of the WIC program.71
Carryover funds. In both the Subcommittee Print and on the floor, Chairman
Kingston discussed that $562 million in WIC funding, would have been available
as carryover funds if it had not been rescinded as an offset for the Claims
Resolution Act of 2010, P.L. 111-291, a law which funded, among other
provisions, the Pigford settlement and an extension to the Temporary Assistance
for Needy Families program.72
Commodity Assistance Program
Funding under the Commodity Assistance Program budget account supports several discretionary
programs and activities: (1) the Commodity Supplemental Food Program (CSFP), (2) funding for
TEFAP administrative and distribution costs, (3) the WIC Farmers Market Nutrition program, and
(4) special Pacific Island assistance for nuclear-test-affected zones in the Pacific (the Marshall
Islands) and in the case of natural disasters.
The House-passed bill would provide a total of $196 million for the commodity assistance
program account (after the 0.78% across-the-board rescission). This total is $50.2 million less
than was included in FY2011 appropriations for this account (-20%), and $54 million less than
the Administration’s request.

69 For a summary of some of the issues discussed, see Pete Kasperowicz, “House bogged down in fight over women,
infant, and children food program,” The Hill, June 14, 2011, http://thehill.com/blogs/floor-action/house/166415-house-
bogged-down-in-fight-over-women-infant-and-children-food-program.
70 See U.S. Congress, House Committee on Appropriations, Subcommittee on Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies, Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Bill, 2012
, committee print, 112th Cong., 1st sess., June 3, 2011, H. Rprt. 112-101, pp.
43-44.
71 Kerry Young, WIC Program Counseling: All Talk or Essential Action?, CQ Today Online News, June 13, 2011,
http://public.cq.com/docs/news/news-000003887202.html.
72 For more information on the Pigford settlement, see CRS Report RS20430, The Pigford Cases: USDA Settlement of
Discrimination Suits by Black Farmers
, by Tadlock Cowan and Jody Feder.
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Of the total, approximately $138.5 million would be allocated to the CSFP73, which is about $18
million less than FY2011 and the Administration’s request.
The House-passed bill also would provide funding for TEFAP costs other than the value of
federally provided commodities (which are funded under the Food and Nutrition Act budget
account). Though funded at around $50 million in recent years, H.R. 2112 includes approximately
$38 million for this administrative funding.
The House-passed bill would provide $15 million for the FY2010 WIC Farmers’ Market
Nutrition Program.74 The Administration had requested $20 million for this program.
The House-passed bill would a total of $1 million available for Pacific Island assistance in
FY2012; this is the same level as in FY2011.
Nutrition Programs Administration (and the Congressional Hunger Center)
This budget account covers spending for federal administration of all the USDA domestic food
assistance program areas noted above, special projects for improving the integrity and quality of
these programs, and the Center for Nutrition Policy and Promotion (CNPP), which provides
nutrition education and information to consumers (including various dietary guides).
The House-passed bill would provide $124 million, down from $147.5 million in FY2011 (-16%)
and about $46 million less than the Administration requested. Neither the House Appropriations
Subcommittee’s report nor legislative language indicates how the funding would be allocated.
Child Nutrition Grant Programs Authorized and Unfunded in H.R. 2112
Neither the FY2011 continuing resolution (P.L. 112-10) nor would H.R. 2112 fund the authorized
programs discussed below.
Hunger-Free Community Grants
Section 4405 of the 2008 farm bill authorized Hunger-Free Community grants (1) to food
program service providers and nonprofits for collaborative efforts to assess community hunger
problems and to achieve “hunger-free” communities and (2) to emergency feeding organizations
for infrastructure development. This program was last funded in FY2010 with a $5 million
appropriation.
School Community Garden Pilot Program
The National School Lunch Act authorizes, but the House-passed bill would not fund, pilot
projects for school gardens (and other means of accessing local foods). This program was last

73 See footnote 67.
74 Unlike the WIC Farmers’ Market Nutrition Program discussed here, the Seniors Farmers’ Market Nutrition Program
receives $21 million a year from outside the regular appropriations process under the terms of its underlying law.
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funded in FY2010 with a $1 million appropriation. The Administration did not request FY2012
funding for this program.
State Childhood Hunger Challenge Grants
The Administration requested $25 million to fund the State Childhood Hunger Challenge Grants
program. This discretionary grant program was authorized in the Healthy, Hunger-free Kids Act
of 2010, P.L. 111-296, but the House-passed bill would not appropriate any funding for it. These
grants would go to governors to support innovative strategies to end childhood hunger. No
funding was provided in FY2011 for this program.
Other Funding Support
As in earlier years, domestic food assistance programs will receive FY2012 support from sources
other than FY2012 appropriations:
• Food commodities are provided to child nutrition programs in addition to those
purchased with appropriations from the Child Nutrition account. They are
financed through the use of permanent appropriations under Section 32.75 For
example, out of a total of about $1.1 billion in commodity support provided in
FY2008, about $480 million worth came from outside the Child Nutrition
account. Historically, about half the value of commodities distributed to child
nutrition programs has come from the Section 32 account.
• The Fresh Fruit and Vegetable program offers fresh fruits and vegetables in
selected elementary schools nationwide. It is financed with mandatory funding
directed by the 2008 farm bill. The underlying law (Section 4304 of the farm bill)
provides funds at the beginning of every school year (each July)—$101 million
in July 2010, $150 million in July 2011, $133 in July 2012. However, as was
done for FY2009, FY2010, and FY2011, Section 718 of H.R. 2112 delays the
availability of much of the $133 million scheduled for July 2012 until October
2012. As a result, H.R. 2112, as the Agriculture appropriations acts which
preceded it, effectively would allocate the total annual spending for the Fresh
Fruit and Vegetable program mandated by the farm bill by fiscal year rather than
school year, with no reduction in overall support (savings scored in Table 6).
• The Food Service Management Institute (providing technical assistance to child
nutrition providers) is funded through a permanent annual appropriation of $4
million a year.
• The Seniors Farmers’ Market Nutrition program receives $21 million of
mandatory funding per year (FY2008-FY2012) from outside the regular
appropriations process under the terms of its underlying law (Section 4402 of the
2008 farm bill).


75 For more information on Section 32, see CRS Report RL34081, Farm and Food Support Under USDA’s Section 32
Program
.
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Agricultural Trade and Food Aid
The Agriculture appropriations act funds farm bill programs that promote U.S. commercial
agricultural exports, provide international food aid, and provide technical assistance to
developing countries to improve global agricultural productivity and market development. All
programs are administered by the USDA Foreign Agriculture Service, except for the Title II of the
Food for Peace Program—the largest of the suite—that is administered by the U.S. Agency for
International Development (USAID).76
Appropriations for agricultural trade and food aid are made in the following areas:
• The Foreign Agricultural Service (FAS), is the main USDA agency responsible
for international activities. It works to improve the competitive position of U.S.
agriculture and products in the world market, and also administers USDA’s
export credit guarantee and food aid programs.
• The Food for Peace Program (P.L. 480) is administered by the U.S. Agency for
International Development (USAID) and aims to combat hunger and
malnutrition, and promote equitable and sustainable development and global food
security.
• The Commodity Credit Corporation (CCC) Export Credit Guarantee
Program provides payment guarantees for the commercial financing of U.S.
agricultural exports. An appropriation is made for salaries and expenses.
• The McGovern-Dole International Food for Education and Child Nutrition
Program provides donations of U.S. agricultural products and financial and
technical assistance for school feeding and maternal and child nutrition projects
in developing countries.
For FY2012, the Administration requested $2.13 billion for foreign agriculture-related activities.
In addition, the FY2012 request allocated about $416 million in mandatory spending for
programs authorized in the 2008 farm bill, specifically for overseas market development,
technical assistance for specialty crops, and for foreign food assistance. The President’s request
for FY2012, however, did not include funding for dairy export subsidies or trade adjustment
assistance for farmers.
The FY2012 House-passed bill would provide $1.39 billion for foreign agriculture-related
activities, $500 million less than (-26%) the FY2011 appropriation billion. The FY2011
appropriation was 9% less than the FY2010 amount.
Foreign Agricultural Service
The Administration’s FY2012 budget request for FAS is $230 million, and includes $20 million
in discretionary funding for trade expansion and promotion activities as part of the National
Export Initiative (NEI), a government-wide effort to double U.S. exports over the next five
years.77 The FAS budget also includes $14.6 million to support the Department’s participation in

76 For additional information on USDA’s international activities, see CRS Report R41072, International Food Aid
Programs: Background and Issues
.
77 See CRS Report R41929, Boosting U.S. Exports: Selected Issues for Congress.
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reconstruction and stabilization activities in Afghanistan and Iraq, as well as other food insecure
countries. In prior years, this funding was provided to Departmental Management, but is now
requested in the FAS budget because FAS has assumed full management of the operational and
policy components of USDA’s reconstruction and stabilization activities.
The House-passed bill provides $171 million for FAS salaries and expenses, 8% less than the
FY2011 appropriation.
Food for Peace Program (P.L. 480)
Food for Peace (P.L. 480) Title II humanitarian food aid, which is by far the largest component of
international agriculture expenditures, was appropriated $1.5 billion for FY2011. This was a
$193 million decrease (-11%) from the Administration’s request and FY2010 levels.
For FY2012, the Administration requested $1.69 billion for Title II food aid, as it did in FY2011.
H.R. 2112 provided $1.03 billion for Title II, $465 million less than (-31%) FY2011, and 38%
below FY2010 and the President’s FY2012 request. No funding for Title I or Title III activities
has been requested since 2002.
Unlike the Bush Administration, the Obama budget requests have not proposed to allow the
Administrator of USAID to use up to 25% of Food for Peace Title II funds for local or regional
purchases of commodities (i.e., non-U.S. commodities) to address international food crises. To
date, Congress has not supported this request. Instead, for FY2012, similar to the previous two
years, the President requested that $300 million from the International Disaster Assistance (IDA)
account within USAID be made available for local and regional procurement of food assistance to
address food insecurity in emergency situations.78 In addition, the 2008 farm bill authorized $60
million of CCC funds (mandatory funds, not Title II appropriations), over four years for a pilot
project to assess local and regional purchases of food aid for emergency relief.
McGovern-Dole Food for Education and Child Nutrition
The President’s request for FY2012 included $200.5 million for the McGovern-Dole Program, the
same as FY2011.
The House-passed bill would provide $179 million, $20 million less than (-10%) FY2011. The
FY2011 appropriation was $10 million less than FY2010, which marked a doubling of the
appropriation from FY2009. The FY2010 expansion in appropriated funds for McGovern-Dole
built upon an expansion that occurred via a one-time authorization in the 2008 farm bill of $84
million of mandatory CCC funding in FY2009.
Commodity Credit Corporation—Export Credit Guarantee Programs
The FY2012 request includes $6.8 million of discretionary appropriations for administrative
expenses to support an CCC’s overall program level of $5.5 billion, which includes $5.4 billion
for GSM-102 guarantees, and $100 million for the Facilities Financing Guarantees. The House-

78 IDA funding is covered in the Foreign Operations appropriations; see CRS Report R41905, State, Foreign
Operations, and Related Programs: FY2012 Budget and Appropriations
.
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passed bill would provide $6.8 million for CCC export credit guarantee activities, the same as
FY2010-FY2011, and the Administration’s FY2012 request.
In addition, the 2008 farm bill provides mandatory funding to other programs that promote export
market development. These amounts are not directly appropriated, but are included within the
CCC amount elsewhere in the bill. These include:
• $200 million for the Market Access Program;
• $34 million for the Foreign Market Development Program;
• $9 million for the Technical Assistance for Specialty Crops (TASC) Program; and
• $10 million for the Emerging Markets Program;.
Mandatory funding levels requested by the Administration for international food assistance
programs include:
• $156 million for Food for Progress; and
• $5 million for the Local and Regional Commodity Procurement Pilot Program.
USDA’s “Know Your Farmer, Know Your Food” Initiative
The House-passed bill contains a number of provisions that restrict funding for activities under
the USDA-wide initiative, “Know Your Farmer, Know Your Food,” as well as reduce funding for
selected USDA research and rural development programs for local and regional food production.
“Know Your Farmer, Know Your Food” is a USDA-wide initiative that was launched by USDA
in September 2009 to “begin a national conversation to help develop local and regional food
systems and spur economic opportunity.”79 The initiative was designed to eliminate
organizational barriers between existing USDA programs and promote enhanced collaboration
among staff, leveraging existing USDA activities and programs, and thereby “marshalling
resources from across USDA to help create the link between local production and local
consumption.”80 It is not a stand-alone program and does not have its own budget;81 instead, it is a
departmental initiative, and not connected to a specific office or subagency. This is done by
highlighting various existing programs within USDA that are available to support local farmers;
strengthen rural communities; promote healthy eating; protect natural resources; and provide
grants, loans and support.82 Linking local production with local consumption of farm products
also is one of the primary goals of USDA’s Regional Innovation Initiative.83

79 USDA, “USDA Launches ‘Know Your Farmer, Know Your Food’ Initiative to Connect Consumers with Local
Producers to Create New Economic Opportunities for Communities,” September 15, 2009, Release No. 0440.09.
80 USDA, “Our Mission,” http://www.usda.gov/wps/portal/usda/knowyourfarmer?navtype=KYF&navid=
KYF_MISSION; and AMS, “Regional Food Hubs: Linking Producers to New Markets,” May 2011.
81 Letter to Senators McCain, Roberts, and Chambliss from USDA Secretary Vilsack, April 30, 2010.
82 USDA, http://www.usda.gov/wps/portal/usda/knowyourfarmer?navid=KNOWYOURFARMER; see also USDA
memos at http://www.usda.gov/wps/portal/usda/knowyourfarmer?navtype=KYF&navid=KYF_GRANTS.
83 The other goals of USDA’s Regional Innovation Initiative include rural broadband, biofuels and biobased products,
ecosystem markets to pay farmers for storing carbon, and forest restoration and private land conservation. USDA
proposed this initiative as part of its FY2011 budget request (USDA, “FY2011 Budget Summary and Annual
Performance Plan, at http://www.obpa.usda.gov/budsum/FY11budsum.pdf). Like Know Your Farmer, Know Your
(continued...)
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Among the programs mentioned for leveraging local and regional food production systems are:
(1) marketing and promotion programs (such as the Specialty Crop Block Grant Program,
Farmers Market Promotion Program, and Federal State Marketing Improvement Program); (2)
rural and community development programs (such as Value-Added Producer Grants, Community
Food Projects Competitive Grants, Beginning Farmer and Rancher Development Program, Rural
Business Enterprise Grants, Rural Business Opportunity Grant, Rural Cooperative Development
Grant, Business and Industry (B&I) Guaranteed Loan Program, and Farm Storage Facility
Loans); and (3) selected USDA research and cooperative extension programs.84 In response to
demand for farm-to-school activities, certain USDA nutrition and domestic food programs, such
as the farm-to-school and some fresh fruit and vegetable programs, also have been associated
with the initiative. Since its launch, USDA has announced funding for various projects under
these and other programs identified as promoting local-scale sustainable operations.85
Some in Congress have challenged USDA’s “Know Your Farmer, Know Your Food” initiative. In
April 2010, three Senators wrote a letter to USDA Secretary Vilsack expressing concerns about
“Know Your Farmer, Know Your Food.” The letter stated: “[T]his spending doesn't appear geared
toward conventional farmers who produce the vast majority of our nation’s food supply, but is
instead aimed at small, hobbyist and organic producers whose customers generally consist of
affluent patrons at urban farmers markets,” among other concerns regarding USDA’s promotion
and prioritization of local food systems. The letter also requested evidence of USDA’s
congressional authority to spend money for “Know Your Farmer, Know Your Food” and to
provide a full itemized accounting of all spending under the initiative.86
In response, USDA clarified that the initiative: “does not have any budgetary or programmatic
authority... Rather, it is a communications mechanism to further enable our existing programs to
better meet their goals and serve constituents as defined in the respective authorizing legislation
and regulations. While there are no programs under the initiative, since September 2009 a number
of our program funding announcements have included a reference to [“Know Your Farmer, Know
Your Food”].”87
USDA also asserts that “none of these programs are providing preference to local and regional
food system projects, except as provided for in their existing regulatory rules or legislative
authority.”88 Such cases are limited to two statutory cases: (1) a 5% set-aside established in the
2008 farm bill for rural development Business and Industry loans, and (2) an allowance for
schools to use $5 million for local purchases under the Department of Defense Fresh Fruit and

(...continued)
Food, it also spans several mission areas such as Rural Development, Marketing and Regulatory Programs, and Natural
Resources and Environment. See the section on “Rural Development” earlier in this report.
84 See USDA at http://www.usda.gov/wps/portal/usda/knowyourfarmer?navtype=KYF&navid=KYF_MISSION; also,
National Sustainable Agriculture Coalition, “Guide to USDA Funding for Local and Regional Food Systems,” at http://
sustainableagriculture.net/wp-content/uploads/2010/05/NSAC_FoodSystemsFundingGuide_FirstEdition_4_2010.pdf.
85 For example, USDA’s initial press release announced the following funding under the initiative: Risk Management
Agency for collaborative outreach and assistance programs to socially disadvantaged and underserved farmers; Food
Safety and Inspection Service to implement a new voluntary cooperative program for state-inspected establishments to
ship meat and poultry in interstate commerce; Rural Development grants to help local business cooperatives, and grants
to the to the Northwest Food Processors Association under its Rural Business Opportunity Grant.
86 Letter to USDA Secretary Vilsack from Senators McCain, Roberts, and Chambliss, April 27, 2010.
87 Letter to Senators McCain, Roberts, and Chambliss from USDA Secretary Vilsack, April 30, 2010.
88 Ibid.
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Vegetable Program (DoD Fresh). The regulatory case (set by administrative notice) is in USDA’s
Rural Housing and Community Facilities Program that states, “[The] goal that each state must
fund at least one project” that supports the initiative in FY2010.89
The FY2012 House-passed bill includes a number of provisions restricting funding for selected
USDA programs that fund local and regional food production projects, and also for USDA’s
“Know Your Farmer, Know Your Food” initiative. For example, the committee report (H.Rept.
112-101) includes language requiring USDA to “provide an electronic notification to the
Committee at least 72 hours prior to any travel in support of the ‘‘Know Your Farmer-Know Your
Food’’ initiative, and such notification shall include the agenda for the entire trip along with the
cost to U.S. taxpayers.” The committee also directs the USDA to “post media advisories of all
such trips on its website, and that such advisories include the same information.” In addition, the
committee report expresses concern that USDA has awarded “more than $23 million in grants to
improve regional and local food systems,” and directs the agency to focus “its research efforts on
only the highest priority, scientifically merited research.” The committee also provided that no
funding be used “for any work related to the Community Access to Local Food proposal” at
USDA’s Economic Research Service (ERS).
Building on the House report, Representative Foxx introduced a floor amendment, which was
adopted, to prohibit USDA from using funds for USDA’s Know Your Farmer, Know Your Food
initiative. Failed floor amendments from Representatives Pingree, Jackson Lee, and others would
have supported local and regional food systems, removed some of the restrictions, and funded
USDA’s Urban Gardening Program, the Healthy Food Financing Initiative ($5 million) to address
so-called “food deserts” in underserved urban and rural communities.90


89 Letter to State Directors, Rural Development, from Tammye Treviño, Administrator, regarding the Community
Facilities Funding for Local and Regional Food Systems Projects and Know Your Farmer Know Your Food Initiative,
June 2010.
90 See, for example, Congressional Record, June 14-15, 2011, pp. H4164-H4165, H4253-H4256, and HH4179-H4181.
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Appendix.
Table A-1. Timeline of Enactment of Agriculture Appropriations, FY1999-FY2012
House-
Senate-
Appropriations
Fiscal Year
passed
passed
Enacted
vehicle
Public Law
CRS Report
1999 6/24/1998
7/16/1998
10/21/1998 Omnibus
P.L.
105-277 98-201
2000 6/8/1999
8/4/1999
10/22/1999 Separate
P.L.
106-78 RL30201
2001 7/11/2000
7/20/2000
10/28/2000 Separate
P.L.
106-387 RL30501
2002 7/11/2001
10/25/2001
11/28/2001 Separate
P.L.
107-76 RL31001
2003 — —
2/20/2003
Omnibus P.L.
108-7
RL31301
2004 7/14/2003
11/6/2003
1/23/2004 Omnibus
P.L.
108-199 RL31801
2005 7/13/2004 — 12/8/2004 Omnibus
P.L.
108-447 RL32301
2006 6/8/2005
9/22/2005
11/10/2005 Separate
P.L.
109-97 RL32904
2007
5/23/2006

2/15/2007
Year-long CR
P.L. 110-5
RL33412
2008 8/2/2007 — 12/26/2007 Omnibus P.L.
110-161
RL34132
2009 — —
3/11/2009
Omnibus P.L.
111-8
R40000
2010 7/9/2009
8/4/2009
10/21/2009 Separate
P.L.
111-80 R40721
2011
— —
4/15/2011
Year-long CR
P.L. 112-10
R41475
2012 6/16/2011 — —

— —
Source: CRS.
Figure A-1. Timeline of Enactment of Agriculture Appropriations, FY1999-FY2011
FY1999 * 10/21
FY2000
10/22
FY2001
10/28
FY2002
11/28
FY2003
* 2/20
FY2004
* 1/23
FY2005
* 12/8
FY2006
11/10
FY2007
* 2/15
FY2008
* 12/26
FY2009
* 3/11
FY2010
10/21
FY2011
* 4/15
Sep
Nov
Feb
May
Source: CRS.
Notes: An asterisk (*) denotes an omnibus appropriation. FY2007 was a year-long continuing resolution.
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Key Policy Staff

Area of Expertise
Name
Phone
E-mail
Agricultural Marketing Service
Remy Jurenas
7-7281
rjurenas@crs.loc.gov
Animal and Plant Health Inspection Service
Renée Johnson
7-9588
rjohnson@crs.loc.gov
Animal identification
Joel Greene
7-9877
jgreene@crs.loc.gov
Commodity Futures Trading Commission
Mark Jickling
7-7784
mjickling@crs.loc.gov
Conservation Megan
Stubbs
7-8707
mstubbs@crs.loc.gov
Crop insurance and disaster assistance
Dennis A. Shields
7-9051
dshields@crs.loc.gov
Farm Service Agency and Commodity Credit Corp. Jim Monke
7-9664
jmonke@crs.loc.gov
Food and Drug Administration
Susan Thaul
7-0562
sthaul@crs.loc.gov
Grain Inspection, Packers, and Stockyards Admin.
Joel Greene
7-9877
jgreene@crs.loc.gov
Horticulture Renée
Johnson
7-9588
rjohnson@crs.loc.gov
Meat and Poultry Inspection
Renée Johnson
7-9588
rjohnson@crs.loc.gov
Nutrition and domestic food assistance
Randy Aussenberg
7-8641
raussenberg@crs.loc.gov
Research and extension
Melissa D. Ho
7-5342
mho@crs.loc.gov
Rural Development
Tadlock Cowan
7-7600
tcowan@crs.loc.gov
Section 32
Melissa D. Ho
7-5342
mho@crs.loc.gov
Trade and foreign food aid
Melissa D. Ho
7-5342
mho@crs.loc.gov
USDA budget general y
Jim Monke
7-9664
jmonke@crs.loc.gov


Author Contact Information

Jim Monke, Coordinator
Tadlock Cowan
Specialist in Agricultural Policy
Analyst in Natural Resources and Rural
jmonke@crs.loc.gov, 7-9664
Development
tcowan@crs.loc.gov, 7-7600
Megan Stubbs
Randy Alison Aussenberg
Analyst in Agricultural Conservation and Natural
Analyst in Social Policy
Resources Policy
raussenberg@crs.loc.gov, 7-8641
mstubbs@crs.loc.gov, 7-8707
Renée Johnson
Joel L. Greene
Specialist in Agricultural Policy
Analyst in Agricultural Policy
rjohnson@crs.loc.gov, 7-9588
jgreene@crs.loc.gov, 7-9877
Melissa D. Ho
Dennis A. Shields
Specialist in Agricultural Policy
Specialist in Agricultural Policy
mho@crs.loc.gov, 7-5342
dshields@crs.loc.gov, 7-9051

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