	Most Recent Developments

On October 22, 1999, the President signed into law the FY2000 appropriationsact for the U.S. Department of Agriculture and related agencies ( P.L. 106-78 , H.R. Discretionary Spending

Approximately three-fourths of total USDA spending is classified as mandatory, which by definition occurs outside the control of annual appropriations. An annual appropriation is also made to reimburse the Commodity CreditCorporation for losses it incurs in financing the commodity support programs and thevarious other programs it finances. 106-78 , a consolidated appropriations act for FY2000 ( P.L. A separate Coburn amendment also was agreed to by a 217-214 votewhich prevents FDA from using any FY2000 funds for the approval of RU-486, orany other drug to induce abortion. The conference agreement contains $60.559 billion in regular (non-emergency) FY2000 appropriations for USDA and related agenciesand $8.7 billion in emergency spending for economic and disaster assistance forfarmers. 3194 ) are a number of provisions affectingagricultural programs, including additional emergency USDA funding of $576million, primarily in response to damage caused by Hurricane Floyd in the Southeast,a two-year extension of the Northeast dairy compact until September 30, 2001, anda requirement that USDA adopt a federal milk pricing option (1A) supported byEastern and Southern dairy farmers, but opposed by dairy processors and UpperMidwest dairy farmers. 106-113 also includes a 0.38% across-the-board cut intotal discretionary budget authority for FY2000, which will require a $49 million cutwithin USDA and a $4 million cut in FDA programs funded through P.L. 106-78 , with specific cuts to be determined by the Administration. 1906 , theAdministration request, and the FY1999 levels. 106-113). Included in the total is $186 million in farm disaster paymentsand $10 million in livestock assistance added to the $1.2 billion in disaster paymentsand $200 million in livestock assistance provided by P.L. In FY1999, two emergency spending packages were enacted, including $6 billion provided in October 1998 in the FY1999 omnibus appropriations act ( P.L.105-277 ) and $574 million in a supplemental appropriations act ( P.L. 106-113 ) signed into law on November 29, 1999 contains provisions ( H.R. Commodity Credit Corporation

Outlays for the farm commodity programs, farm disaster payments and certain farm export and conservation programs are funded through USDA's CommodityCredit Corporation (CCC). 106-78 provides an appropriation of $951 million for P.L. 1906 would have provided an FY2000 appropriation for P.L. 106-78 does not include a provision that would have exempted agricultural exports fromeconomic sanctions that the United States imposes on certain countries for foreignpolicy reasons. 105-185 ),or for the Fund for Rural America. The amount in P.L.106-78 is lower than both the House and Senate level primarily because of a"downward re-estimate" of required funding for the food stamp program. P.L.106-78 provides: (1) $19.6 billion for food stamp expenses, which is $500 millionbelow the original request, and reflects a re-estimate of the needs of the program; (2)$100 million for the food stamp contingency reserve, instead of the $1 billionproposed by the Administration; (3) no advance funding for FY2001 (compared with$4.8 billion proposed by the Administration); and (4) $1.27 billion, the same as theAdministration and the House and Senate bills for Nutrition Assistance for PuertoRico. Included in P.L.
The FY2000 appropriations bill ( P.L. 106-78 , H.R. 1906 ) for the U.S. Department of Agriculture (USDA) and related agencies was signed into law on October 22, 1999. P.L. 106-78 contains regular (non-emergency) appropriations of $60.559 billion, which is $2 billion below theAdministration request, but nearly $6 billion above the FY1999 level. Just over three-fourths($46.57 billion) of the total amount in the act is classified as mandatory spending (primarily foodstamps and farm programs funded through USDA's Commodity Credit Corporation), which inessence is governed by authorizing statutes and is out of the direct control of appropriators. Theremaining spending of $13.988 billion is for discretionary programs, which require an annualappropriation.
In addition to the regular appropriations, P.L. 106-78 provides $8.7 billion in emergency spending for farm income and disaster assistance, including $5.5 billion in direct payments to grainand cotton farmers and $1.2 billion in natural disaster assistance. An additional $576 million in farmdisaster assistance, primarily in response to damage caused by Hurricane Floyd, is included in theFY2000 consolidated appropriations act ( P.L. 106-113 , H.R. 3194 ) signed into law onNovember 29, 1999. Controversial dairy policy provisions that were considered but not included in P.L. 106-78 are part of P.L. 106-113 , including a 2-year extension of the Northeast dairy compactand a mandate that USDA adopt a milk pricing scheme for fluid farm milk that is close to currentprice levels. P.L. 106-113 also includes a 0.38% across-the-board cut in total discretionary budgetauthority for FY2000, which will require a $49 million cut within USDA and a $4 million cut inFDA programs, with specific cuts to be determined by the Administration.
Exclusive of the FY2000 emergency spending provisions, most of the difference between the FY1999 and FY2000 enacted levels in P.L. 106-78 is explained by a $5.9 billion increase in therequested appropriation for the Commodity Credit Corporation (CCC). The CCC is the fundingmechanism for the commodity support programs and farm disaster assistance. It borrows directlyfrom the Treasury and subsequently requests an appropriation for a reimbursement of its net losses. CCC spending was at a 12-year high in FY1999, because of a weak farm economy and regionalnatural disasters, and some $6 billion in supplemental spending approved by the Congress in FY1999for emergency assistance to farmers.
To stay within the measure's allocation for discretionary spending, P.L. 106-78 contains spending restrictions for several mandatory programs, including a new research program, certainconservation programs, and the Fund for Rural America. Separately, conferees deleted a provisionin the House bill that would have prevented FDA from using any FY2000 funds for the approvalof RU-486, or any other drug to induce abortion. P.L. 106-78 also does not include a Senate-passedprovision that would have exempted the export of agricultural and medical products from currentand future unilateral trade sanctions on Cuba and other countries.
Key Policy Staff
Division abbreviations: RSI = Resources, Science and Industry; G&F = Government and Finance; DSP= Domestic Social Policy.