	Most Recent Developments

After the FY2006 Agriculture Appropriations Act was signed into law (below), Congress enacted emergency supplemental appropriations for hurricane recovery and pandemic influenza (Division B of P.L. Accounts in the agriculture appropriations bill receive $1.08 billion for hurricane recovery, and $111 million for avian influenza. 109-97 , H.R. The act includes all of the U.S. Department of Agriculture (except the Forest Service), plus the Food and Drug Administration and the Commodity Futures Trading Commission. The $100.1 billion law is $15.0 billion (+18%) above FY2005 levels overall, and contains $17.03 billion in discretionary spending (+1.2% above FY2005) and $83.07 billion for mandatory programs (+22% above FY2005). 2744 ) into law on November 10, 2005. Increases in mandatory programs affected by economic or weather conditions account for nearly 99% of the increase over FY2005 levels. The discretionary amount, the category of spending over which appropriators have direct control, is 1.2% above FY2005 levels, and 1.2% above the House-passed bill, but 1.8% below the Senate-passed bill ( Table 3 ). Mandatory programs administered by USDA (primarily food and nutrition programs, farm commodity support, and crop insurance) account for 83% of the total. The supplemental act also contains targeted rescissions totaling $66 million to agriculture accounts and a 1% across-the-board rescission to discretionary spending. Because most of this spending rises or falls automatically on economic or weather conditions, funding needs are sometimes difficult to estimate. The agreement rejects many of the Administration's proposed reductions from FY2005 funding for discretionary programs. Foreign Food Assistance

For P.L. The President's budget contained a proposal to shift about $300 million from P.L. The conference agreement concurs with both the House and Senate versions of the bill in rejecting the Administration proposal to cut formula funds for the state agricultural experiment stations (under the Hatch Act) by 50% and to provide a new pool of $75 million for distribution through competitively awarded grants, plus an additional $70 million for the National Research Initiative (NRI), the primary existing competitive grants program in agriculture. 2744 , to prohibit nonambulatory livestock (also called "downers") from being used for human food. Horse Slaughter Amendment

Conferees retained a provision in both the House and Senate-passed versions which prohibits the use of funds to pay for the inspection of horses destined for human food. U.S.-Japan Beef Trade Issue

Dropped by conferees was an amendment, adopted 72 to 26 by the Senate on September 20, 2005, to bar USDA implementation of a proposed rule enabling Japan to export beef to the United States, unless Japan has opened its own markets for U.S. beef and beef products. 109-97 postpones for an additional two years—until September 30, 2008—a requirement that retailers provide country of origin labeling (COOL) for raw cuts of ground beef, lamb, and pork; fresh fruits and vegetables; and peanuts. 109-148 , the FY2006 Department of Defense Appropriations Act, contains supplemental appropriations and rescissions that change the amounts available under the regular agriculture appropriations law cited above ( P.L.
The President signed the FY2006 Agriculture Appropriations Act (P.L. 109-97, H.R. 2744) into law on November 10, 2005. The act includes all of the U.S. Department of Agriculture (except the Forest Service), plus the Food and Drug Administration, and the Commodity Futures Trading Commission. The $100.1 billion law is $15.0 billion (+18%) above FY2005 levels, and contains $17.03 billion in discretionary spending and $83.07 billion for mandatory programs. The discretionary amount is $199 million (+1.2%) above FY2005 levels, $201 million (+1.2%) more than the House bill, and $317 million (-1.8%) below the Senate bill.
Increases in mandatory programs account for 99% of the increase over FY2005 levels. About 83% of the $100.1 billion total is for mandatory programs (primarily food and nutrition assistance, farm commodity support, and crop insurance), and most of this spending rises or falls on economic or weather conditions. Appropriators have direct control over discretionary programs, the remaining 17%.
P.L. 109-97 rejects or limits many of the Administration's proposed reductions to many conservation and rural development programs. It rejects the Administration's proposal to redirect $300 million in foreign food assistance funds to purchase food in foreign markets. This has proven controversial with farm groups and private voluntary organizations. The law also rejects the Administration's proposal to cut formula funds for state agricultural experiment stations (under the Hatch Act) by 50% and provide a new pool of competitive grants.
The act postpones country of origin labeling (COOL) for two more years (until 2008) and expands the scope of the delay to include not only beef, but also lamb, pork, fresh fruits and vegetables, and peanuts. Regarding a trade dispute, conferees dropped a Senate amendment that would have stopped USDA from allowing Japan to resume exporting beef to the United States; conferees instead inserted report language encouraging negotiations with Japan to reopen its market to U.S. beef. A Senate amendment prohibiting nonambulatory livestock ("downers") from being used for human food was dropped by conferees. However, an amendment was retained that prohibits the inspection of horses destined for human food, but it remains unclear whether the provision will be entirely effective. The National Organic Program was amended in response to a recent court decision on organic standards that prohibits the use of synthetic substances and non-organic feed.
Conferees did not adopt a House amendment that would have allowed prescription drug re-importation, thus averting a possible veto.
Supplementals and Rescissions. Subsequent to the regular agriculture appropriation, Congress enacted emergency supplemental appropriations (Division B of P.L. 109-148, the FY2006 Defense Appropriations Act). Agriculture accounts receive $1.08 billion for hurricane recovery, and $111 million for avian influenza. The supplemental act also contains targeted rescissions totaling $66 million to agriculture accounts and a 1% across-the-board rescission to discretionary spending.