Department of Agriculture

The enacted budget funds the Department of Agriculture (USDA) at $106 billion for FY09, with increases over FY08 funding for several programs related to TBED. Most of the USDA appropriation, $86.6 billion, is reserved for mandatory spending programs such as food and nutrition assistance and farm commodity programs. The remaining $19.4 billion is appropriated for discretionary spending, including most USDA research and TBED-related programs.

Most USDA programs related to TBED and traditional economic development are administered through Rural Development, which received $2.7 billion, an increase of $398 million over FY08. The Rural Development's Rural-Business Cooperative Service, which administers loan subsidies and grants, is funded at $132 million. Funded programs include:

• Rural Business Enterprise Grants - $38.7 million for rural projects that finance and facilitate development of small and emerging rural businesses, help fund distance learning networks, and help fund employment related adult education programs;
• Rural Business Opportunity Grants - $2.5 million to promote sustainable economic development in rural communities with exceptional needs through provision of training and technical assistance for business development, entrepreneurs, and economic development officials and to assist with economic development planning; and,
• Delta Regional Authority - $3 million for loan subsidies and grants.

Rural Development's Rural Economic Development Loans Program received $4.4 million for Rural Cooperative Development Grants and $2.6 million for appropriate technology transfer in rural areas. The budget also provides $5 million for the Rural-Business Cooperative Service's Renewable Energy for America Program (REAP). Value-Added Producer grants, which support planning activities and working capital for marketing value-added agricultural products and for farm-based renewable energy, received $3.9 million in FY09.

USDA's Rural Utilities Service, in addition to providing electricity, water and waste disposal services to rural areas, also supports the expansion of telecommunications networks and high-speed digital resources. TBED-related programs within the Rural Utilities Service include:

• Distance Learning and Telemedicine Grants - $34.7 million for grants, including $5 million for public broadcasting system grants;
• Broadband Telecommunications Loan Subsidy - $15.6 million for loan guarantees; and,
• Broadband Telecommunications Grants - $13.4 million, which includes the Rural Development Community Connect Program.

Funding for three of the four major research organizations of USDA have had their funding level increased over FY08.

The Cooperative State Research, Education and Extension Service (CRSEES) partners with colleges and universities to conduct research, education and outreach activities. The CRSEES appropriation in FY09 is $1.2 billion, up $38.3 million over the previous year. Research programs supported with this funding include:

• Research and Education Activities - $691 million, including $1.1 million for the Food and Agricultural Policy Institute;
• Extension Activities - $474 million including support for the Rural Technologies program, which  invests in areas that develop job opportunities and expand the technological skill base of rural residents; and,
• Integrated Activities - $56.9 million for integrated grants to support research, education and extension functions to solve critical agricultural issues, priorities or problems in a broad array of disciplines.

USDA's Agricultural Research Service (ARS) conducts research to develop and transfer solutions to agricultural problems of high national priority and disseminates the information. ARS was appropriated $1.2 billion in FY09, including $1.5 million to develop Ug99-resistant wheat varieties and $1 million to improve monitoring diagnosis, epidemiology, treatment and prevention of viral hemorrhagic septicemia (VHS). An additional $1.35 million is targeted for research on food allergies.

The Economic Research Service (ERS) budget grew by $2.1 million for FY09 to $79.5 million. ERS is a primary source of economic information and research in the U.S. Department of Agriculture. The bill directs the service to add to its research portfolio a study of the factors contributing to a continued decline in the basis for crops. ERS also is encouraged to work in collaboration with the Agricultural Marketing Service, Rural Business-Cooperative Service, Food and Nutrition Service and other agencies to study government policies to support local food markets.

The National Agricultural Statistics Service (NASS) conducts hundreds of surveys every year and prepares reports covering virtually every aspect of U.S. agriculture such as the production and supplies of food and fiber, prices paid and received by farmers, farm labor and wages, farm finances, chemical use, and changes in the demographics of U.S. producers. The service received $151.6 million in FY09, down $10.6 million from the previous year. Much of this reduction is due to a $14.7 million cut in funding for the Census of Agriculture. The census is conducted every five years and the 2007 version was support by an additional appropriation in FY08.