Appropriations for FY2002: U.S. Department of Agriculture and Related Agencies

Publication Date: December 2001

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Agriculture, forestry and fishing

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Abstract:

On November 28, 2001, the President signed into law the FY2002 agriculture appropriations act (P.L. 107-76, H.R. 2330), which provides $75.902 billion in budget authority for the U.S. Department of Agriculture and related agencies. The amount provided in the act is $118 million below the Senate-passed level, $1.3 billion above the House-passed level, $1.6 billion above the Administration request, and $2.5 billion above the enacted FY2001 level (excluding FY2001 supplementals). The House- and Senate-passed versions of H.R. 2330 differed by about $1.5 billion going into conference. The largest dollar difference between the two bills was that the Senate bill provided a food stamp contingency reserve of $2 billion, while the House bill contained $1 billion, as recommended by the Administration. Conferees concurred with the Senate level of $2 billion for the reserve.

Among other major differences resolved by conferees -- conferees dropped a provision only in the House bill that would have allowed consumers to import FDA-approved drugs into the United States. Conferees also provided $75 million in market loss assistance for apple growers, compared with $150 million in the House-passed bill and no funding in the Senate bill. The Senate-passed bill contained significantly more funding for USDA rural development programs, particularly for the Rural Community Advancement Program (RCAP), with $1.0 billion in the Senate bill compared with $767.5 million in the House bill. Conferees provided $806 million for RCAP and $2.581 billion for all rural development programs, levels much closer to the House bill than the Senate. Conferees also extended the dairy price support program through May 31, 2002, a provision found in neither bill.

As in previous years’ appropriations measures, P.L. 107-76 limits funding for several USDA mandatory programs and applies the savings toward discretionary spending. This includes a prohibition of all FY2002 funding for the Fund for Rural America, the research-oriented Initiative for Future Agriculture and Food Systems, and the Conservation Farm Option. P.L. 107-76 also assumes no new funding for several mandatory conservation programs that have exhausted their authorized funding. Report language in both the House and the Senate encourages USDA to continue funding the Global Food for Education Initiative, which was funded at $300 million in FY2001.

Separate from the appropriations process, but related to federal farm spending, a supplemental authorization act (P.L. 107-25) enacted on August 13, 2001, provided $5.5 billion to help farmers recover from low commodity prices. The supplemental (P.L. 107-38) enacted in response to the terrorist attacks has provided $72 million to date for P.L. 480 food assistance for Afghans, with a portion of the funding in the act unallocated.