FY 2002 

BUDGET SUMMARY

U. S. DEPARTMENT OF AGRICULTURE

INTRODUCTION.........................................................................................................................          iii

FUNDING OVERVIEW.................................................................................................................          1

MISSION AREA HIGHLIGHTS..................................................................................................           5

MISSION AREA/AGENCY DETAILS:

   FARM AND FOREIGN AGRICULTURAL SERVICES:

        Farm Service Agency..............................................................................................................         12

        Risk Management Agency.......................................................................................................         22

        Foreign Agricultural Service.....................................................................................................         24

   RURAL DEVELOPMENT:

        Rural Development..................................................................................................................         32

            Rural Utilities Service..........................................................................................................         35

            Rural Housing Service.........................................................................................................         37

            Rural Business-Cooperative Service.....................................................................................         40

   FOOD, NUTRITION, AND CONSUMER SERVICES:

        Food and Nutrition Service.......................................................................................................         42

   FOOD SAFETY:

        Food Safety and Inspection Service..........................................................................................         46

   NATURAL RESOURCES AND ENVIRONMENT:

        Natural Resources Conservation Service...................................................................................         50

        Forest Service.........................................................................................................................         54

   MARKETING AND REGULATORY PROGRAMS:

        Animal and Plant Health Inspection Service..............................................................................         60

        Agricultural Marketing Service.................................................................................................         64

        Grain Inspection, Packers and Stockyards Administration...........................................................         66

   RESEARCH, EDUCATION, AND ECONOMICS:

        Agricultural Research Service.................................................................................................        69

        Cooperative State Research, Education, and Extension Service...............................................        73

        Economic Research Service....................................................................................................        77

        National Agricultural Statistics Service....................................................................................        78

   DEPARTMENTAL ACTIVITIES..............................................................................................        79

   OFFICE OF THE INSPECTOR GENERAL.............................................................................        84

FUND FOR RURAL AMERICA...............................................................................................        85

APPENDIX:

        Budget Authority by Agency, 2000-2002...............................................................................        87

        Discretionary Budget Authority by Agency, 2000-2002..........................................................        88

        Outlays by Agency, 2000-2002..............................................................................................        89

        Discretionary Budget Outlays by Agency, 2000-2002.............................................................        90

        Staff Years by Agency, 2000-2002........................................................................................        91

        2002 User Fee Proposals.......................................................................................................        92

        2002 Proposed Budget-Related Legislation............................................................................        93

INTRODUCTION

  The Budget Summary describes the fiscal year 2002 budget for the U.S. Department of Agriculture (USDA).  All references to years refer to fiscal year, except where specifically noted.  Throughout the booklet, “1996 Farm Bill” is used to refer to the Federal Agriculture Improvement and Reform Act of 1996.

The Summary is organized into four sections:  Funding Overview, Mission Area Highlights, Mission Area/Agency Details, and Appendix Tables.

Basic budget terminology:

   !      Program Level represents the gross value of all financial assistance USDA provides to the public.  This assistance may be in the form of grants, guaranteed or direct loans, cost-sharing, professional services such as research or technical assistance activities, or in-kind benefits such as commodities.

   !      Budget Authority is the authority to commit funds of the Federal Treasury.  Congress provides this authority through annual appropriations acts and substantive legislation which authorizes direct spending.  The President's budget requests the Congress to appropriate or otherwise provide an amount of budget authority sufficient to carry out recommended government programs.

   !      Obligations  are commitments of government funds.  In order for USDA to make a valid obligation, it must have a sufficient amount of budget authority to cover the obligation.

   !      Outlays are cash disbursements from the Federal Treasury to satisfy a valid obligation.

Program level measures are used in most instances.  However, there are some cases when other measures are used and the reader should take care to note which measure is being used.  Estimates for 2001 have been adjusted to reflect the impact of rescissions under Public Law 106-554, the Consolidated Appropriations Act of 2001.  Finally, the reader should understand that many 2002 estimates are very tentative, especially where programs are sensitive to weather or economic conditions.

Questions may be directed to the Office of Budget and Program Analysis via e-mail at bca@obpa.usda.gov or telephone at (202) 720-6176.

2002 Funding Overview

Emergency funding to address natural and economic disasters in the agriculture and rural economies in recent years is reflected in USDA outlay trends.  About $15 billion, or one-fifth, of 2000 outlays were associated with supplemental funding to address farm income and natural disasters.  Supplemental funding enacted in the 2001 Agriculture and Interior Appropriations Acts, together with funding in the Agricultural Risk Protection Act of 2000 (ARPA), is projected to result in $6.9 billion, or about ten percent of total 2001 outlays.  Outlay estimates for 2002, although about $6.3 billion below 2001, are above the 2001 enacted level for ongoing operations, reflecting budget proposals which ensure adequate funding for key priorities.

USDA’s 2002 discretionary program outlays, about $19.1 billion, or about 30 percent of total USDA outlays, include the Special Supplemental Nutrition Program for Women, Infants and Children (WIC); programs to address agricultural pest and disease threats; rural development;  research and education; soil and water conservation technical assistance; management of the National Forests and Grasslands and other Forest Service activities; and domestic and international marketing assistance. Mandatory programs account for the remaining 70 percent of USDA outlays, about $44.2 billion in 2002.  These programs provide services as required by law and include the majority of the nutrition assistance programs, commodity programs, and a number of conservation programs.   

Funding for emergency needs, such as Forest Service firefighting, emergency watershed protection, emergency conservation and other programs is addressed in 2002 through a National Emergency Reserve funded on a governmentwide basis at $5.6 billion to cover sudden, urgent, unforeseen and non-permanent needs.  Funds would be released from the Reserve only after approval by both the President and the Congress.  The President’s Budget also provides approximately $1 trillion over a ten-year period for a reserve to meet unforeseen needs on a governmentwide basis, including the potential need for assistance to farmers above levels in existing programs, such as the Marketing Assistance Loan and Loan Deficiency Payment Programs.  More detailed information is provided under the relevant sections of this document.