H. Rept. 112-542 - 112th Congress (2011-2012)
June 20, 2012, As Reported by the Appropriations Committee

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




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


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

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



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

                                _______
                                

 June 20, 2012.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

          Mr. Kingston, from the Committee on Appropriations, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 5973]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for Agriculture, Rural Development, Food and 
Drug Administration, and Related Agencies for fiscal year 2013.

                                CONTENTS

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

                                OVERVIEW

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

                         Oversight and Hearings

    Consistent with the Committee on Appropriations Oversight 
Plan, as approved and transmitted to the Committee on Oversight 
and Government Reform and the Committee on House Administration 
on February 8, 2011, the Subcommittee continued the process 
that began with fiscal year 2012 and kept the Committee's 
strong commitment to comprehensive oversight of Federal 
discretionary spending under the Subcommittee's jurisdiction. 
In order to thoroughly review the President's budget request 
for fiscal year 2013 and examine how funds appropriated in 
previous fiscal years had been spent and managed, the 
Subcommittee held 11 hearings for the mission areas, agencies, 
and programs of USDA, FDA, and CFTC. The hearings included:
        Secretary of Agriculture--February 17, 2012
         USDA Food, Nutrition, and Consumer Services--February 
        28, 2012
        Food and Drug Administration--February 29, 2012
        USDA Inspector General--February 29, 2012
        USDA Rural Development--March 1, 2012
         USDA Marketing and Regulatory Programs--March 6, 2012
        USDA Natural Resources and Environment--March 7, 2012
        USDA Food Safety--March 8, 2012
         USDA Farm and Foreign Agricultural Services--March 20, 
        2012
        USDA Research, Education, and Economics--March 21, 2012
        Commodity Futures Trading Commission--March 22, 2012
    Several significant topics were covered at the hearings. 
The Subcommittee discussed with the Secretary of Agriculture 
the administrative savings and efficiencies underway at the 
Department, concerns about the number of people enrolled in the 
Supplemental Nutrition Assistance Program (SNAP) and its costs, 
and the administration's proposals for the 2012 farm bill. The 
Subcommittee continued the discussion about SNAP and reviewed 
the costs and administrative structures of the Special 
Supplemental Program for Women, Infants, and Children (WIC). 
During the hearing with FDA, the Subcommittee considered the 
interplay between the reauthorization of Prescription Drug User 
Fee Act, the Medical Device User Fee Act, and others and the 
Subcommittee's fiscal year 2013 bill. The Subcommittee focused 
on rooting out fraud and abuse in SNAP, WIC, and farm programs 
during its hearing with USDA's Inspector General and discussed 
the agency's work regarding USDA's rural development programs. 
The Subcommittee continued this discussion at its hearing with 
the Rural Development mission area, delving into the issues 
related to rural housing, broadband, and electricity programs. 
It considered pest management and livestock programs and the 
positive effects of USDA's conservation programs on America's 
farms and ranches. The Subcommittee reviewed poultry and meat 
inspection issues, especially the Food Safety and Inspection 
Service's new poultry inspection rule and considered the 
agricultural trade outlook, crop insurance reform, and farm 
safety net proposals. With CFTC, it reviewed the agency's 
staffing needs and regulatory proposals and the CFTC's use of 
notional value to size the swaps market at $700 trillion in 
defense of a 50 percent increase in its budget request. The 
Bank for International Settlements and the Office of the 
Comptroller of the Currency indicate that gross value is a more 
accurate measure of risk and sizes the market at approximately 
$20 trillion. The Committee finds the $680 trillion difference 
misleading when rationalizing such an increase.
    The Subcommittee will continue to actively monitor the 
issues identified and discussed at the hearings, as well as 
others relevant to the management of USDA, FDA, CFTC, and FCA 
and will maintain its oversight efforts throughout the 
remainder of the 112th Congress to ensure taxpayer dollars are 
being used wisely and prudently on behalf of the American 
people.

                                TITLE I


                         AGRICULTURAL PROGRAMS


                 Production, Processing, and Marketing


                        Office of the Secretary


                     (INCLUDING TRANSFERS OF FUNDS)




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



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

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

                          COMMITTEE PROVISIONS

    Spending Plans.--Legislative language is included that 
requires the Secretary to submit spending plans within 15 days 
from the enactment of this Act. The Committee notes that House 
Report 112-101, and affirmed in House Report 112-284, requested 
that spending plans be submitted within 30 days of enactment of 
the fiscal year 2012 Agriculture Appropriations Act. To date, 
USDA has yet to submit a single spending plan.
    Design-Build.--The Committee encourages the Department to 
use the design-build method of project delivery when 
appropriate.
    CCC Report.--The Committee directs the Secretary to provide 
a report on November 15, 2012, and May 15, 2013, on planned 
uses of funding under the authorities of Section 4 and Section 
11 of the Commodity Credit Corporation Act.
    Notification.--Within 30 days from the enactment of this 
Act, the Secretary shall notify the House and Senate Committees 
on Appropriations on the allocation of the funds provided to 
the Assistant Secretary for Congressional Relations by USDA 
agency, along with an explanation for the agency-by-agency 
distribution of the funds.
    Explanatory Notes.--The Committee appreciates the detailed 
information provided in the Explanatory Notes and relies on 
this information when considering budget proposals. The 
Committee directs the Secretary, beginning with presentation of 
the fiscal year 2014 budget, to provide additional information 
on programs and activities measured against a baseline of 
actual spending in fiscal year 2008 and the previous three 
fiscal years. Any increase or decrease to the funding proposed 
for fiscal year 2014 should be compared to these years, using 
both a numeric table and an accompanying descriptive 
explanation. The Committee directs the Department to include an 
errata sheet in the Explanatory Notes of any proposed budget 
authority levels that do not conform to the budget appendix. 
The Committee directs the Department's attention to the 
specific changes required of the fiscal year 2014 budget for 
certain programs within the National Institute of Food and 
Agriculture. The Explanatory Notes should be assembled with the 
accounts in the same order as the accounts in the bill. Any 
additional deviations from this format must be approved in 
advance by the Committee.
    Late Reports.--Reports requested by the House and Senate 
Appropriations Committees are an important part of the exercise 
of the Committees' oversight responsibilities. The Committee is 
concerned about the Department's delinquency in completing 
these reports. The Committee is also concerned that the delay 
is due to excessively long reviews, especially in the Office of 
the Secretary. The reports are due on the dates specified in 
either the House, Senate, or conference report. Each agency of 
the Department is directed to comply with the deadlines and to 
cooperate fully with the Office of Budget and Program Analysis 
in providing these reports. The Committee reserves the right to 
call before it any agency that does not submit its report or 
reports on time.
    State Office Collocation.--The Committee continues to 
direct that any reallocation of resources related to the 
collocation of State offices scheduled for 2013 and subsequent 
years is subject to the Committee's reprogramming procedures.
    Administrative Provision.--The Committee directs the 
Secretary to advise the Committees on Appropriations, through 
the Office of Budget and Program Analysis, of the status of all 
reports requested of the Department in this bill at the time of 
submission of the fiscal year 2014 budget and monthly 
thereafter. The Committee reminds the Secretary that all 
correspondence related to the directives in this bill must be 
addressed to the Committee on Appropriations.
    Loan and Grant Programs.--The Committee directs the 
Department, through the Office of Budget and Program Analysis, 
to provide quarterly reports to the Committees on 
Appropriations of the House of Representatives and the Senate 
on the status of obligations and funds availability for the 
loan and grant programs provided in this bill.
    The Committee further directs that if an estimate of loan 
activity for any program funded in Titles I and III of this 
bill indicates that a limitation on authority to make 
commitments for a fiscal year will be reached before the end of 
that fiscal year, or in any event whenever 75 per centum of the 
authority to make commitments has been utilized, the Secretary 
shall promptly notify the Committees in writing, through the 
Office of Budget and Program Analysis.

                          Executive Operations


                     OFFICE OF THE CHIEF ECONOMIST




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


                          COMMITTEE PROVISIONS

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

                 OFFICE OF BUDGET AND PROGRAM ANALYSIS




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


                          COMMITTEE PROVISIONS

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

                Office of the Chief Information Officer





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


                          COMMITTEE PROVISIONS

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

                 Office of the Chief Financial Officer





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


                          COMMITTEE PROVISIONS

    For the Office of the Chief Financial Officer, the 
Committee provides an appropriation of $5,537,000.
    Assessments.--The assessments that the Department charges 
its agencies for other government- and department-wide 
activities continue to escalate. Since these assessments are 
borne by the agencies, and Congress did not specifically 
provide increases to the agencies for these costs, most of the 
funding for the increase has come at the expense of programs. 
The Committee continues to direct the Office of the Chief 
Financial Officer to scrutinize the need for each activity, to 
consider its benefit to the mission of each agency, and to 
limit spending wherever possible.

           Office of the Assistant Secretary for Civil Rights





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


                          COMMITTEE PROVISIONS

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

                         Office of Civil Rights





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


                          COMMITTEE PROVISIONS

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

        Agriculture Buildings and Facilities and Rental Payments





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


                          COMMITTEE PROVISIONS

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

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

                     Hazardous Materials Management





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


                          COMMITTEE PROVISIONS

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

                      Office of Inspector General





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


                          COMMITTEE PROVISIONS

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

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





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


                          COMMITTEE PROVISIONS

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

                       Economic Research Service





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


                          COMMITTEE PROVISIONS

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

                National Agricultural Statistics Service





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


                          COMMITTEE PROVISIONS

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

                     Agricultural Research Service


                         SALARIES AND EXPENSES




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


                          COMMITTEE PROVISIONS

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

               National Institute of Food and Agriculture


                   RESEARCH AND EDUCATION ACTIVITIES




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


                          COMMITTEE PROVISIONS

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

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

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

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

              NATIVE AMERICAN INSTITUTIONS ENDOWMENT FUND




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


                          COMMITTEE PROVISIONS

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

                          EXTENSION ACTIVITIES




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


                          COMMITTEE PROVISIONS

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

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

                         INTEGRATED ACTIVITIES




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


                          COMMITTEE PROVISIONS

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


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

  Office of the Under Secretary for Marketing and Regulatory Programs





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


                          COMMITTEE PROVISIONS

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

               Animal and Plant Health Inspection Service


                         SALARIES AND EXPENSES




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


                          COMMITTEE PROVISIONS

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

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

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

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

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

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

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

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

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

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

                        BUILDINGS AND FACILITIES




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


                          COMMITTEE PROVISIONS

    The Committee does not provide an appropriation for this 
account.

                     Agricultural Marketing Service


                           MARKETING SERVICES




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


                          COMMITTEE PROVISIONS

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

                 LIMITATION ON ADMINISTRATIVE EXPENSES




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


                          COMMITTEE PROVISIONS

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

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

                     MARKETING AGREEMENT AND ORDERS




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


                          COMMITTEE PROVISIONS

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

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

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

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

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

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

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

                   PAYMENTS TO STATES AND POSSESSIONS




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


                          COMMITTEE PROVISIONS

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

        Grain Inspection, Packers and Stockyards Administration


                         SALARIES AND EXPENSES




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


                          COMMITTEE PROVISIONS

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

        LIMITATION ON INSPECTION AND WEIGHING SERVICES EXPENSES




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


                          COMMITTEE PROVISIONS

    The Committee includes a limitation on inspection and 
weighing services expenses of $50,000,000. The bill includes 
authority to exceed by 10 percent the limitation on inspection 
and weighing services with notification to the Committees on 
Appropriations.

             Office of the Under Secretary for Food Safety





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


                          COMMITTEE PROVISIONS

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

                   Food Safety and Inspection Service





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


                          COMMITTEE PROVISIONS

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

                        FARM ASSISTANCE PROGRAMS


    Office of the Under Secretary for Farm and Foreign Agricultural 
                                Services





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


                          COMMITTEE PROVISIONS

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

                          FARM SERVICE AGENCY


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFERS OF FUNDS)

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

                          COMMITTEE PROVISIONS

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

                         STATE MEDIATION GRANTS




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


                          COMMITTEE PROVISIONS

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

               GRASSROOTS SOURCE WATER PROTECTION PROGRAM




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


                          COMMITTEE PROVISIONS

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

                        DAIRY INDEMNITY PROGRAM

                     (INCLUDING TRANSFER OF FUNDS)




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

\1\Current indefinite appropriation.

                          COMMITTEE PROVISIONS

    For the Dairy Indemnity Program, the Committee provides an 
appropriation of such sums as may be necessary (estimated to be 
$100,000 in the President's fiscal year 2013 budget request).

           AGRICULTURAL CREDIT INSURANCE FUND PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

                         ESTIMATED LOAN LEVELS




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


                          COMMITTEE PROVISIONS

    For the Agricultural Credit Insurance Fund program account, 
the Committee provides a loan level of $4,787,090,000.
    The following table reflects the loan levels for the 
Agricultural Credit Insurance Fund program account:

                AGRICULTURAL CREDIT PROGRAMS--LOAN LEVELS
                         [Dollars in Thousands]
------------------------------------------------------------------------
                                   FY 2012       FY 2013      Committee
                                    level       estimate     provisions
------------------------------------------------------------------------
Farm loan programs:
    Farm ownership:
        Direct................      $475,000      $475,000      $475,000
        Guaranteed............     1,500,000     1,500,000     1,500,000
    Farm operating:
        Direct................     1,050,090     1,050,089     1,050,090
        Unsubsidized               1,500,000     1,500,000     1,500,000
         guaranteed...........
    Emergency loans...........             0        34,658             0
    Indian tribe land                  2,000         2,000         2,000
     acquisition loans........
    Conservation loans:
        Guaranteed............       150,000       150,000       150,000
    Indian highly fractionated        10,000        10,000        10,000
     land.....................
    Boll weevil eradication...       100,000        60,000       100,000
                               -----------------------------------------
        Total.................     4,787,090     4,781,747     4,787,090
------------------------------------------------------------------------


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

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

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

                         Risk Management Agency





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


                          COMMITTEE PROVISIONS

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

                              CORPORATIONS


                Federal Crop Insurance Corporation Fund





2012 appropriation....................................  \1\$3,142,375,00
                                                                       0
2013 budget estimate..................................  \1\9,517,433,000
Provided in the bill..................................  \1\9,517,433,000
Comparison:
    2012 appropriation................................    +6,375,058,000
    2013 budget estimate..............................             - - -


\1\Current indefinite appropriation.

                          COMMITTEE PROVISIONS

    For the Federal Crop Insurance Corporation Fund, the 
Committee provides an appropriation of such sums as may be 
necessary (estimated to be $9,517,433,000 in the President's 
fiscal year 2013 budget request).

                   Commodity Credit Corporation Fund


                 REIMBURSEMENT FOR NET REALIZED LOSSES

                   (INCLUDING TRANSFERS OF FUNDS)\1\




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

\1\Current indefinite appropriation.

                          COMMITTEE PROVISIONS

    For Reimbursement for Net Realized Losses to the Commodity 
Credit Corporation, the Committee provides such sums as may be 
necessary to reimburse for net realized losses sustained, but 
not previously reimbursed (estimated to be $11,018,509,000 in 
the President's fiscal year 2013 budget request).

                       HAZARDOUS WASTE MANAGEMENT

                        (LIMITATION ON EXPENSES)




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


                          COMMITTEE PROVISIONS

    For CCC Hazardous Waste Management, the Committee provides 
a limitation of $5,000,000.

                                TITLE II


                         CONSERVATION PROGRAMS


  Office of the Under Secretary for Natural Resources and Environment





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


                          COMMITTEE PROVISIONS

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

                 Natural Resources Conservation Service


                        CONSERVATION OPERATIONS




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


                          COMMITTEE PROVISIONS

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

                    WATERSHED REHABILITATION PROGRAM




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


                          COMMITTEE PROVISIONS

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

                               TITLE III


                       RURAL DEVELOPMENT PROGRAMS


          Office of the Under Secretary for Rural Development





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


                          COMMITTEE PROVISIONS

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

                Rural Development Salaries and Expenses


                     (INCLUDING TRANSFERS OF FUNDS)

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

                          COMMITTEE PROVISIONS

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

                         Rural Housing Service


              RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

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

                          COMMITTEE PROVISIONS

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

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

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

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

                       RENTAL ASSISTANCE PROGRAM




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


                          COMMITTEE PROVISIONS

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

           MULTIFAMILY HOUSING REVITALIZATION PROGRAM ACCOUNT




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


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

                  MUTUAL AND SELF-HELP HOUSING GRANTS




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


                          COMMITTEE PROVISIONS

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

                    RURAL HOUSING ASSISTANCE GRANTS




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


                          COMMITTEE PROVISIONS

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

               RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)




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


                          COMMITTEE PROVISIONS

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

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

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

                   Rural Business-Cooperative Service


                     RURAL BUSINESS PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)




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


                          COMMITTEE PROVISIONS

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

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

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

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

                          COMMITTEE PROVISIONS

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

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

                          COMMITTEE PROVISIONS

    For the Rural Economic Development Loans Program Account, 
the Committee provides for a loan level of $33,077,000.

                  RURAL COOPERATIVE DEVELOPMENT GRANTS




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


                          COMMITTEE PROVISIONS

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

                  RENEWABLE ENERGY FOR AMERICA PROGRAM




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


                          COMMITTEE PROVISIONS

    For the Renewable Energy for America Program, the Committee 
provides a loan level of $13,878,000 and an appropriation of 
$3,332,000 for the loan subsidy to make loans as authorized by 
section 9007 of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8107).

                        Rural Utilities Service


             RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT

                     (INCLUDING TRANSFERS OF FUNDS)




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


                          COMMITTEE PROVISIONS

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

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


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

                          COMMITTEE PROVISIONS

    For the Rural Electrification and Telecommunications Loans 
Program Account, the Committee provides a loan level of 
$7,290,000,000. In addition, the Committee provides $34,467,000 
for administrative expenses.
    The Committee does not concur with the proposal to limit 
the use of rural electrification loans and instead expects USDA 
to work with borrowers to finance the most reliable and cost-
effective electricity source that meets their needs.
    The following table reflects the loan levels for the Rural 
Electrification and Telecommunications Loans Program account:

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

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


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

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

                          COMMITTEE PROVISIONS

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

                                TITLE IV


                         DOMESTIC FOOD PROGRAMS


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





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


                          COMMITTEE PROVISIONS

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

                       Food and Nutrition Service


                        CHILD NUTRITION PROGRAMS

                     (INCLUDING TRANSFERS OF FUNDS)




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


                          COMMITTEE PROVISIONS

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

[Dollars in Thousands]

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

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




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


                          COMMITTEE PROVISIONS

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

               SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM




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


                          COMMITTEE PROVISIONS

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

[Dollars in Thousands]

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

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

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

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

                      COMMODITY ASSISTANCE PROGRAM




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


                          COMMITTEE PROVISIONS

    The Committee provides an appropriation of $237,489,000 for 
the Commodity Assistance Program. The recommended funding level 
for the Commodity Supplemental Food Program (CSFP) is 
$173,252,000.
    The Committee recommendation includes $16,217,000 for the 
Farmers' Market Nutrition Program.
    The Committee has included $47,040,000 for administrative 
funding for the Emergency Food Assistance Program (TEFAP).
    For the Food Donations Programs, the Committee provides an 
appropriation of $980,000 for Pacific Island Assistance.
    TEFAP Handling and Distribution Costs.--In addition to the 
grant funds to support commodity handling and distribution 
costs, the bill permits States to use up to 10 percent of the 
funds provided for purchasing TEFAP commodities to help with 
the costs of storing, transporting, and distributing 
commodities. The Committee expects State agencies to consult 
with their emergency feeding organizations on the need for the 
conversion of such funds.

                   NUTRITION PROGRAMS ADMINISTRATION




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


                          COMMITTEE PROVISIONS

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

                                TITLE V


                FOREIGN ASSISTANCE AND RELATED PROGRAMS


                      Foreign Agricultural Service


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFERS OF FUNDS)

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

                          COMMITTEE PROVISIONS

    For the Foreign Agricultural Service (FAS), the Committee 
provides an appropriation of $172,820,000 and transfers of 
$6,336,000.
    The Committee directs the Secretary, through the Office of 
Budget and Program Analysis, in consultation with the 
Administrator of the U.S. Agency for International Development, 
to submit quarterly reports to the Committee on the status of 
the Bill Emerson Humanitarian Trust, as well as immediately 
notify the Committee when the Trust has been drawn down.
    Reconstruction and Stabilization Activities.--The Committee 
does not include funding for agricultural reconstruction and 
stabilization activities. While the Committee provides support 
for developmental projects through P.L. 480, Title II funds, 
the Committee believes that reconstruction and stabilization 
activities should continue to be supported through other 
existing programs and accounts in the U.S. Government. FAS 
needs to focus on an enhanced strategic plan and direction for 
agriculture trade policy and urges the Department to take a 
more proactive role in developing such a policy.

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


                     (INCLUDING TRANSFERS OF FUNDS)




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


                          COMMITTEE PROVISIONS

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

                     Food for Peace Title II Grants





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


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

                    CCC EXPORT LOANS PROGRAM ACCOUNT

                        ADMINISTRATIVE EXPENSES




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


                          COMMITTEE PROVISIONS

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

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




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


                          COMMITTEE PROVISIONS

    For McGovern-Dole International Food for Education and 
Child Nutrition Program Grants, as authorized by Section 3107 
of P.L. 107-171 (7 U.S.C. 1736o-1), the Committee provides an 
appropriation of $180,320,000.

                                TITLE VI


           RELATED AGENCIES AND FOOD AND DRUG ADMINISTRATION


                DEPARTMENT OF HEALTH AND HUMAN SERVICES


                      Food and Drug Administration


                         SALARIES AND EXPENSES

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

                          COMMITTEE PROVISIONS

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

                        BUILDINGS AND FACILITIES




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


                          COMMITTEE PROVISIONS

    The Committee does not provide an appropriation for this 
account.

                          INDEPENDENT AGENCIES


                  Commodity Futures Trading Commission





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


                          COMMITTEE PROVISIONS

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

                       Farm Credit Administration


                 LIMITATION ON ADMINISTRATIVE EXPENSES




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


                          COMMITTEE PROVISIONS

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

                               TITLE VII


                           GENERAL PROVISIONS


             (INCLUDING RESCISSIONS AND TRANSFERS OF FUNDS)

    The General Provisions contained in the accompanying bill 
for fiscal year 2013 are fundamentally the same as those 
included in last year's appropriations bill.
    The following general provisions are included in the bill:
    Section 701: Limitation on the purchase of passenger motor 
vehicles.
    Section 702: Transfer authority regarding the Working 
Capital Fund.
    Section 703: Limitation on certain obligations.
    Section 704: Indirect cost rates for cooperative agreements 
with nonprofit institutions.
    Section 705: Disbursement of rural development loans.
    Section 706: Authority of the Chief Information Officer 
relating to new IT systems.
    Section 707: Availability of mandatory conservation program 
funding.
    Section 708: Rural Utility Service borrower eligibility.
    Section 709: Indirect costs related to research grants.
    Section 710: Availability of agency funds for information 
technology purposes.
    Section 711: Funding availability for liquid infant 
formula.
    Section 712: Prohibition on first-class airline travel.
    Section 713: Use of funds authorized by the Commodity 
Credit Corporation Act.
    Section 714. Use of funds for humanitarian food assistance 
programs.
    Section 715: Disbursement of loans made under the Rural 
Electrification Act.
    Section 716: Limitation on funds for commodities under the 
Bill Emerson Humanitarian Trust.
    Section 717: Funding for advisory committees.
    Section 718: Indirect costs for competitive agricultural 
research grants.
    Section 719: Regulations under the Grain Inspection, 
Packers and Stockyards Administration.
    Section 720: Rescission of certain unobligated balances.
    Section 721: Language regarding certain limitations.
    Section 722: Rescission and limitation on certain funds.
    Section 723: Language on user fee proposals without 
offsets.
    Section 724: Language on reprogramming.
    Section 725: Language on fees for the business and industry 
guaranteed loan program.
    Section 726: Language on questions for the record.
    Section 727: Language regarding prepackaged news stories.
    Section 728: Language on prohibition on paid details in 
excess of 30 days.
    Section 729: Language regarding grants and loans to 
corporations convicted of a felony.
    Section 730: Language regarding grants and loans to 
corporations with a Federal tax liability.
    Section 731: Language on controls over humanitarian food 
assistance.
    Section 732: Language on the mohair program.
    Section 733: Language regarding regulation of certain 
agricultural products.
    Section 734: Language on dam mitigation.
    Section 735: Rescission of certain unobligated balances.
    Section 736: Rescission of certain unobligated balances.
    Section 737: Language regarding the Grasslands Reserve 
Program.
    Section 738: Language regarding the Wetlands Reserve 
Program.
    Section 739: Language regarding servicing of Rural Housing 
Service loans.
    Section 740: Rescission of certain unobligated balances.
    Section 741: Rescission of certain unobligated balances.
    Section 742: Language on farm payments.
    Section 743: Language on WIC.
    Section 744: Language on horse slaughter.
    Section 745: Spending Reduction Account.

              HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS


                        CONSTITUTIONAL AUTHORITY

    Clause 6(e) of the Rules of the Appropriations Committee 
requires each committee report on a public bill or joint 
resolution to contain a statement citing the specific powers 
granted to Congress in the Constitution to enact the law 
proposed by the bill or joint resolution.
    The Committee on Appropriations bases its authority to 
report this legislation on clause 7 of section 9 of article I 
of the Constitution of the United States, which states ``No 
money shall be drawn from the Treasury, but in Consequence of 
Appropriations made by Law. . . .''
    Appropriations contained in this Act are made pursuant to 
this specific power granted by the Constitution.

                           TRANSFER OF FUNDS

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following lists the transfers of 
unexpended balances included in the accompanying bill.
    1. Agriculture Buildings and Facilities and Rental 
Payments.--The bill allows funds to be transferred to recover 
the full cost of space and security expenses.
    2. Hazardous Materials Management.--The bill allows the 
funds appropriated to the Department for hazardous materials 
management to be transferred to agencies of the Department as 
required.
    3. Departmental Administration.--The bill requires 
reimbursement for expenses related to certain hearings.
    4. Office of the Assistant Secretary for Congressional 
Relations.--The bill allows a portion of the funds appropriated 
to the Office of the Assistant Secretary to be transferred to 
agencies.
    5. Animal and Plant Health Inspection Service.--Authority 
is included to enable the Secretary of Agriculture to transfer 
from other appropriations or funds of the Department such sums 
as may be necessary to combat emergency outbreaks of certain 
diseases of animals, plants, and poultry.
    6. Funds for Strengthening Markets, Income, and Supply.--
The bill limits the transfer of section 32 funds to purposes 
specified in the bill.
    7. Farm Service Agency Salaries and Expenses.--The bill 
provides that funds provided to other accounts in the agency 
may be merged with the salaries and expenses account of the 
Farm Service Agency.
    8. Dairy Indemnity Program.--The bill authorizes the 
transfer of funds to the Commodity Credit Corporation, by 
reference.
    9. Commodity Credit Corporation.--The bill includes 
language allowing certain funds to be transferred to the 
Foreign Agricultural Service for information resource 
management activities.
    10. Rural Development Salaries and Expenses.--The bill 
provides that prior year balances from certain accounts shall 
be transferred to and merged with this account.
    11. Rural Community Facilities Program Account, Rural 
Business Program Account, and Rural Water and Waste Disposal 
Program Account.--The bill provides that balances from the 
Rural Community Advancement Program may be transferred to and 
merged with these accounts.
    12. Child Nutrition Programs.--The bill includes authority 
to transfer section 32 funds to these programs.
    13. Foreign Agricultural Service Salaries and Expenses.--
The bill allows for the transfer of funds from the Commodity 
Credit Corporation Export Loan Program Account.
    14. Food for Peace Title I Direct Credit and Food for 
Progress Program Account.--The bill allows funds to be 
transferred to the Farm Service Agency, Salaries and Expenses 
account. The bill also provides that funds made available for 
the cost of title I agreements and for title I ocean freight 
differential may be used interchangeably.
    15. Commodity Credit Corporation Export Loans Program.--The 
bill provides for transfer of funds to the Foreign Agricultural 
Service and to the Farm Service Agency for overhead expenses 
associated with credit reform.
    16. Food and Drug Administration, Salaries and Expenses.--
The bill allows funds to be transferred among activities.
    17. General Provisions.--The bill allows unobligated 
balances of discretionary funds to be transferred to the 
Working Capital Fund.

               CHANGES IN THE APPLICATION OF EXISTING LAW

    Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of 
the House of Representatives, the following statements are 
submitted describing the effect of provisions in the 
accompanying bill that directly or indirectly change the 
application of existing law.
    The bill includes a number of provisions which place 
limitations on the use of funds in the bill or change existing 
limitations and which might, under some circumstances, be 
construed as changing the application of existing law:
    1. Office of the Secretary.--Language is included to limit 
the amount of funds for official reception and representation 
expenses, as determined by the Secretary.
    2. Departmental Administration.--Language is included to 
reimburse the agency for travel expenses incident to the 
holding of hearings.
    3. Agricultural Research Service.--Language is included 
that allows the Agricultural Research Service to grant 
easements at the Beltsville, MD, agricultural research center.
    4. Agricultural Research Service.--Language is included 
that allows the Agricultural Research Service to grant 
easements and accept as a gift facilities constructed by 
private entities for agricultural research that benefits the 
public.
    5. Animal and Plant Health Inspection Service.--A provision 
carried in the bill since fiscal year 1973 regarding state 
matching funds has been continued to assure more effective 
operation of the brucellosis control program through state cost 
sharing, with resulting savings to the Federal budget.
    Language is included to allow APHIS to recoup expenses 
incurred from providing technical assistance goods, or services 
to non-APHIS personnel, and to allow transfers of funds for 
Agricultural emergencies.
    Language is included to limit the amount of funds for 
representational allowances.
    6. Agricultural Marketing Service, Limitation on 
Administrative Expenses.--The bill includes language to allow 
AMS to exceed the limitation on administrative expenses by 10 
percent with notification to the Appropriations Committees. 
This allows flexibility in case crop size is understated and/or 
other uncontrollable events occur.
    7. Grain Inspection, Packers and Stockyards Administration, 
Inspection and Weighing Services.--The bill includes authority 
to exceed the limitation on inspection and weighing services by 
10 percent with notification to the Appropriations Committees. 
This allows for flexibility if export activities require 
additional supervision and oversight, or other uncontrollable 
factors occur.
    8. Dairy Indemnity Program.--Language is included by 
reference that allows the Secretary to utilize the services of 
the Commodity Credit Corporation for the purpose of making 
dairy indemnity payments.
    9. Agricultural Credit Insurance Fund Program Account.--
Language is included that deems the pink bollworm a boll weevil 
for the purposes of administering the boll weevil loan program.
    10. Risk Management Agency.--Language is included to limit 
the amount of funds for official reception and representation 
expenses.
    11. Commodity Credit Corporation Fund.--Language is 
included to provide for the reimbursement appropriation. 
Language is also included to allow certain funds transferred 
from the Commodity Credit Corporation to be used for 
information resource management. In addition, language is 
included which limits the amount of funds that can be spent on 
operation and maintenance costs of CCC hazardous waste sites.
    12. Natural Resources Conservation Service--Conservation 
Operations.--Language which has been included in the bill since 
1938 prohibits construction of buildings on land not owned by 
the government, although construction on land owned by states 
and counties is authorized by basic law.
    13. Rural Development Salaries and Expenses.--Language is 
included to allow funds to be used for advertising and 
promotional activities.
    14. Rental Assistance Program.--Language is included which 
provides that agreements entered into during the current fiscal 
year be funded for a one-year period.
    15. Special Supplemental Nutrition Program for Women, 
Infants, and Children (WIC).--Language is included to purchase 
infant formula except in accordance with law and pay for 
activities that are not fully reimbursed by other departments 
or agencies unless authorized by law.
    16. Supplemental Nutrition Assistance Program.--Language is 
included on funds availability for Employment and Training and 
to enter into contracts and employ staff to conduct studies, 
evaluations, or to conduct activities related to program 
integrity.
    17. Foreign Agricultural Service.--Language carried since 
1979 enables this agency to use funds received by an advance or 
by reimbursement to carry out its activities involving 
international development and technical cooperation. Language 
is included to limit the amount of funds for official reception 
and representation expenses.
    18. Commodity Futures Trading Commission.--Language is 
included to limit the amount of funds for official reception 
and representation expenses.
    19. General Provisions.--
    Section 704: This provision provides that none of the funds 
in this Act may be made available to pay indirect cost rates on 
cooperative agreements with nonprofit institutions in excess of 
10 percent of total direct costs.
    Section 705: This provision allows funds made available in 
the current fiscal year for the Rural Development Loan Fund 
program account; the Rural Electrification and 
Telecommunications Loans program account; and the Rural Housing 
Insurance Fund program account to remain available until 
expended to disburse obligations.
    Section 706: Language is included that requires approval of 
the Chief Information Officer and the concurrence of the 
Executive Information Technology Investment Review Board for 
acquisition of new information technology systems or 
significant upgrades, and that prohibits the transfer of funds 
to the Office of the Chief Information Officer without the 
notification of the Committees on Appropriations of both Houses 
of Congress.
    Section 707: Language is included regarding the 
availability of funds for certain conservation programs.
    Section 708: Language is included regarding certain Rural 
Utilities Service Programs.
    Section 709: Language is included regarding indirect costs 
to grants made under section 412 of the Agricultural Research, 
Extension, and Education Reform Act of 1998.
    Section 710: Language is included that allows unobligated 
balances of the Farm Service Agency and Rural Development 
mission areas to be used for information technology purposes.
    Section 711: Language is included regarding reconstituted 
liquid concentrate infant formula issuance to WIC participants.
    Section 712: Language is included regarding the prohibition 
of first-class travel by the employees of agencies funded in 
this Act.
    Section 713: Language is included regarding the use of 
authorities of the Commodity Credit Corporation.
    Section 714: Language is included regarding the use of 
funds for emergency humanitarian food assistance.
    Section 715: Language is included regarding the 
disbursement of valid obligations for certain Rural 
Electrification Loans.
    Section 716: Language is included that limits funds for 
commodities under the Bill Emerson Humanitarian Trust.
    Section 717: Language is included that limits the amount of 
spending for USDA Advisory Committees.
    Section 718: Language is included modifying matching 
requirements for certain research grants.
    Section 719: Language is included regarding regulations 
under the Packers and Stockyards Act.
    Section 720: Language is included regarding the rescission 
of certain unobligated balances.
    Section 721: Language is included regarding limitation on 
certain funds.
    Section 722: Language is included that limits and rescinds 
section 32 balances.
    Section 723: Language is included that prohibits funds from 
being used to prepare a budget submission to Congress that 
assumes reductions from the previous year's budget due to user 
fee proposals unless the submission also identifies spending 
reductions which should occur if the user fees are not enacted.
    Section 724: Language is included that requires certain 
reprogramming procedures of funds provided in Appropriations 
Acts.
    Section 725: Language is included regarding fees for the 
business and industry guaranteed loan program.
    Section 726: This provision prohibits the Department of 
Agriculture or the Food and Drug Administration from 
transmitting or making available to any non-Department of 
Agriculture or non-Department of Health and Human Services 
employee questions or responses to questions that are a result 
of information requested for the appropriations hearing 
process.
    Section 727: Language regarding prepackaged news stories.
    Section 728: This provision prohibits any employee of the 
Department of Agriculture from being detailed or assigned to 
any other agency or office of the Department for more than 30 
days unless the individual's employing agency or office is 
fully reimbursed by the receiving agency or office for the 
salary and expenses of the employee for the period of 
assignment.
    Section 729: Language is included on Federal grants, loans, 
and contracts to corporations convicted of a felony under State 
or Federal law.
    Section 730: Language is included on grants, loans, and 
contracts to corporations with a Federal tax liability.
    Section 731: Language is included regarding controls over 
humanitarian food assistance.
    Section 732: Language is included regarding the mohair 
program.
    Section 733: Language is included regarding the regulation 
of certain agricultural products.
    Section 734: Language is included regarding certain dam 
mitigation projects.
    Section 736: Language is included rescinding certain 
unobligated balances.
    Section 737: Language in included regarding the Grasslands 
Reserve Program.
    Section 738: Language is included regarding the Wetlands 
Reserve Program.
    Section 739: Language is included regarding the servicing 
of Rural Housing Service loans.
    Section 742: Language on farm payments.
    Section 743: Language on WIC.
    Section 744: Language on horse slaughter.
    Section 745: Spending Reduction Account.

   DISCLOSURE OF EARMARKS AND CONGRESSIONALLY DIRECTED SPENDING ITEMS

    Neither the bill nor the report contains any 
Congressionally directed earmarks, limited tax benefits, or 
limited tariff benefits as defined in clause 9 of rule XXI.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding.
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

          COMPLIANCE WITH RULE XIII, CL. 3(E) (RAMSEYER RULE)

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                       FOOD SECURITY ACT OF 1985




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

           *       *       *       *       *       *       *



        Subtitle D--Agricultural Resources Conservation Program


CHAPTER 1--COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM

           *       *       *       *       *       *       *



                 Subchapter C--Wetlands Reserve Program


SEC. 1237. WETLANDS RESERVE PROGRAM.

  (a) * * *

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *


CHAPTER 2--CONSERVATION SECURITY AND FARMLAND PROTECTION

           *       *       *       *       *       *       *



                Subchapter D--Grassland Reserve Program


SEC. 1238N. GRASSLAND RESERVE PROGRAM.

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

           *       *       *       *       *       *       *


                 Subtitle E--Funding and Administration

SEC. 1241. COMMODITY CREDIT CORPORATION.

  (a) In General.--For each of fiscal years 2002 through 2012 
(and fiscal year 2014 in the case of the programs specified in 
paragraphs (2), (3)(B), (4), (5), (6), and (7)), the Secretary 
shall use the funds, facilities, and authorities of the 
Commodity Credit Corporation to carry out the following 
programs under subtitle D (including the provision of technical 
assistance):
          (1) * * *

           *       *       *       *       *       *       *


                  APPROPRIATIONS NOT AUTHORIZED BY LAW

    Pursuant to clause 3(f)(1)(B) of rule XIII of the Rules of 
the House of Representatives, the following table lists the 
appropriations in the accompanying bill which are not 
authorized by law for the period concerned:

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

<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

                              RESCISSIONS

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following lists the rescissions 
of unexpended balances included in the accompanying bill:
    The bill proposes rescissions of $180,000,000 of funds 
derived from interest on the cushion of credit payments under 
the Rural Economic Development Loans Program Account; 
$180,000,000 from Section 32 funds; $11,000,000 from 
Supplemental Nutrition Assistance Program employment and 
training funds; $26,126,000 from the Distance Learning, 
Telemedicine and Broadband Program Account; $28,450,000 from 
the Repowering Assistance Program; $47,723,000 from the Food 
and Drug Administration; and $11,000,000 from the Department of 
Agriculture.

                 COMPARISON WITH THE BUDGET RESOLUTION

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a)(1)(A) of the 
Congressional Budget Act of 1974, the following table compares 
the levels of new budget authority provided in the bill with 
the appropriate allocation under section 302(b) of the Budget 
Act:

                        [In millions of dollars]

----------------------------------------------------------------------------------------------------------------
                                                         302(b) allocation                   This bill
                                                 ---------------------------------------------------------------
                                                      Budget                          Budget
                                                     authority        Outlays        authority        Outlays
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee
 allocations to its subcommittees of amounts in
 the Budget Resolution for 2013:
    Discretionary...............................         $19,405         $22,759         $19,405      \1\$22,759
    Mandatory...................................          42,558          33,003          42,558       \1\33,003
----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.

                      FIVE-YEAR OUTLAY PROJECTIONS

    Pursuant to section 308(a)(1)(B) of the Congressional 
Budget Act of 1974, the following table contains five-year 
projections prepared by the Congressional Budget Office of 
outlays associated with the budget authority provided in the 
accompanying bill:

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

\1\Excludes outlays from prior-year budget authority.
---------------------------------------------------------------------------

               ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

    Pursuant to section 308(a)(1)(C) of the Congressional 
Budget Act of 1974, the amounts of financial assistance to 
State and local governments is as follows:

                        [In millions of dollars]

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

<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>


                            ADDITIONAL VIEWS

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

                                   Norman D. Dicks.
                                   Sam Farr.