DEPARTMENT OF AGRICULTURE

0.001 AGRICULTURAL RESEARCH-BASIC AND APPLIED

RESEARCH

FINANCIAL INFORMATION:

Obligations:

(Grants) FY 87 $4,247,000; FY 88 est $4,254,000; and FY

89 est $4,200,000.

PROGRAM ACCOMPLISHMENTS:

In fiscal year 1988, the primary objective of ARS major programs are to improve the quality of animal productivity; plant productivity; soil and water conservation; commodity conversion and delivery; adequate human nutrition and the integration of agricultural systems. INFORMATION CONTACTS:

Headquarters Office:

Administrator for Agricultural Research Service, Department of Agriculture, Washington, DC 20250. Telephone: (202) 447-3656. Contact: R.C. Muniak. Telephone: (301) 344-2706.

0.025 PLANT AND ANIMAL DISEASE AND PEST CONTROL

ELIGIBILITY REQUIREMENTS:

Credentials/Documentation:

Costs will be determined in accordance with OMB Circular No. A-87 for State and local governments, OMB Circular No. A-21 for educational institutions, and OMB Circular No. A-122 for nonprofit organizations. APPLICATION AND AWARD PROCESS: Preapplication Coordination:

Letters should be submitted to APHIS area, region, or headquarters office. This program is eligible for coverage under E.O. 12372, “Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. The standard application forms as furnished by the Federal Agency and required by OMB Circular No. A-102 must be used for this program. Assistance is available from APHIS to aid in the preparation of this application.

Application Procedure:

A letter from applicants seeking cooperation with the Animal and Plant Health Inspection Service. Applicants must indicate the nature and severity of the problem to be considered, and explain how they will address the problem. This program is subject to the provisions of OMB Circular No. A-110.

10.028 ANIMAL DAMAGE CONTROL

AUTHORIZATION:

Animal Damage Control Act of March 2, 1931, 7 U.S.C. 426-426b, as amended.

OBJECTIVES:

To control or reduce damage caused by nuisance mam-
mals and birds and those mammal and bird species that
are reservoirs for zoonotic diseases, except for urban
rodent control.

ELIGIBILITY REQUIREMENTS:
Beneficiary Eligibility:

States, local jurisdictions, U.S. territorial government
agencies, federally recognized Indian tribal govern-
ments, public and private institutions and organiza-
tions, farmers, ranchers, agricultural producers, and
land/property owners benefit from Federal assistance
in the control of nuisance mammals and birds and

those mammal and bird species that are reservoirs for zoonotic diseases, except for urban rodent control. ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:

Recipients share the project or program costs. The costsharing arrangements are developed between the Agency and the recipients in advance of the program unless otherwise stated by Congress.

10.051 COMMODITY LOANS AND PURCHASES USES AND USE RESTRICTIONS:

Support loans and purchases, give farmers a ready means
of promoting more orderly marketing. Price support
loans to producers are "nonrecourse." Producers are
not obligated to make good any decline in the market
price of the commodity they have put up as collateral.
If market prices rise above support, producers can pay
off their loan and market their commodity. If market
prices fail to rise above support prices, producers can
pay off the loan through forfeiture of collateral. If the
commodity is stored on the farm, the farmer is respon-
sible for maintaining the condition of the commodity.
Eligible commodities are feed grains, wheat, rice, rye,
soybeans, honey, upland cotton, extra-long staple
cotton, dairy products (purchases only), peanuts, to-
bacco, and sugar. Effective with the 1986 crop, the
Secretary of Agriculture has the authority to permit
commodity loan repayments at less than the original
loan principal, the "marketing loan" provision. Loan
deficiency payments will be offered under the 1988
upland cotton program if the loan repayment rate is
less than the established loan level. For 1988, cotton
producers can forgo loan eligibility on a bale- by-bale
basis. The payment rate will equal the difference be-
tween the loan rate and the loan repayment rate in
effect during the week in which the cotton is sold.
Upland cotton loan deficiency payments, and any gain
realized from repaying a loan at a level lower than the
original loan level (marketing loan) are subject to the
$250,000 payment limitation.

FINANCIAL INFORMATION:
Obligations:

(Commodity purchases) FY 87 $1,829,871,844; FY 88 est
$1,557,825,000; and FY 89 est $885,406,000. (Loans)
FY 87 $16,566,050,368; FY 88 est $13,286,302,000; and
FY 89 est $5,806,720,000.

PROGRAM ACCOMPLISHMENTS:

A total of 1,274,979 new loans were made in fiscal year
1987. As of June 30, 1988, there were 816,945 new
loans made in fiscal year 1988 with a dollar volume of
$12,874,217,000. The dollar volume of commodity
loans and purchase transactions for fiscal year 1987 to-
taled $18,395,922,212 (comprised of loans made
$16,566,050,368, and purchase of commodities
$1,829,871,844).

10.052 COTTON PRODUCTION STABILIZATION
USES AND USE RESTRICTIONS:

To be eligible for 1988 crop program benefits, producers must agree to reduce their historical plantings--farm acreage base--of upland cotton by at least 12.5 percent and of extra long staple (ELS) cotton by at least 10 percent. The acreage removed from production must be maintained in approved conservation uses. Benefits received include target price "deficiency" payments, which are made on planted acreage whenever the national average market price falls below the established target price. The 1988 target price for upland cotton is 75.9 cents per pound; the ELS cotton target price is

95.7 cents per pound, which is 118.3 percent of the ELS loan rate. Advance deficiency payments equal to 40 percent of the estimated rate will be made available to producers who sign a program contract for the upland cotton program. (50 percent in cash at signup and 50 percent in generic certificates on or about May 16, 1988.) Upland cotton producers repay loans at the lesser of the loan rate or the adjusted world price in effect for the week in which the loan redemption occurs. If the adjusted world price is below 80 percent of the loan rate, the Secretary has discretion to set the loan repayment rate at a level not in excess of 80 percent of the loan rate. Program contracts for the 1988 crop are binding and liquidated damages will be assessed for failure to fulfill the terms of the contract. APPLICATION AND AWARD PROCESS: Preapplication Coordination:

None. This program is excluded from coverage under OMB Circular No. A-102 and E.O. 12372. Deadlines:

1988 program sign-up was from February 16, 1988 through April 15, 1988 for upland and ELS cotton. Producers must report acreages and compliance with program requirements by specified dates, which vary by State and within States. Producers must sign a contract before any payments are made. Final deficiency payments will be made after February 1, 1989 for upland cotton and May 1, 1989 for ELS cotton. Contact State or county ASCS offices for applicable deadlines.

FINANCIAL INFORMATION:

Obligations:

(Direct cash payments) FY 87 $989,203,166; FY 88 est $203,276,000; and FY 89 est $1,038,350,000.

Range and Average of Financial Assistance:

$3 to $250,000 per person. As of February 29, 1988, the average deficiency payment per producer for the 1986 upland cotton crop was $12,734. The average deficiency payment per producer for the 1987 crop was $8,705. (Cotton, feed grain, wheat and rice deficiency and diversion payments, in total, may not exceed $50,000 to any one person for the 1986 through 1990 crop years. In addition, the total of any (1) gains realized by repaying a loan at a level lower than the original loan level; (2) disaster payments; (3) deficiency payments for wheat or feed grains attributable to a reduction in the statutory loan level; (4) loan deficiency payments; (5) inventory reduction payments; and (6) payments representing compensation for resource adjustment (other than diversion payments) or public access for recreation, combined with the total deficiency and diversion payments, may not exceed $250,000 for the 1987 through 1990 crops.)

PROGRAM ACCOMPLISHMENTS:

For the 1987 upland cotton crop, there were 110,123 participating farms which received total deficiency payments of $951,607,000 through June 30, 1988. There were no ELS cotton crop deficiency payments issued for the 1987 crop. As of June 30, 1988, upland cotton farmers received $213,574,000 in 1987 crop cash deficiency payments and $738,033,000 in 1987 crop deficiency certificates. In fiscal year 1988, 104,642 enrolled farms also received $191,087,000 in advance 1988 crop cash deficiency payments and $173,065,000 in advance 1988 crop deficiency certificates through June 30, 1988.

REGULATIONS, GUIDELINES, AND LITERATURE: Program regulations published in the Federal Register; announcements issued to news media and letters to producers. "ASCS Production Adjustment/Price Support Programs," BI-3 USDA, no cost; Preliminary

Impact Analysis, Final Impact Analysis and Fact
Sheet, no cost; Agricultural Stabilization and Conser
vation Service, U.S. Department of Agriculture, P.0.
Box 2415, Washington, DC 20013.

10.053 DAIRY INDEMNITY PROGRAM
APPLICATION AND AWARD PROCESS:
Range of Approval/Disapproval Time:
From 60 to 90 days.

FINANCIAL INFORMATION:
Obligations:

(Direct payments) FY 87 $6,689,000; FY 88 ex
$1,228,000; and FY 89 est $95,000.

PROGRAM ACCOMPLISHMENTS:

In fiscal year 1987, 116 dairy farmers received $4,871,724 and 15 manufacturers received $3,299,770 in payments for losses due to heptachior contaminations. As of August 1, 1988, three dairy farmers have received $442,010 in payments. Estimated payments are expect ed to total $95,000 in fiscal year 1989.

10.054 EMERGENCY CONSERVATION PROGRAM FINANCIAL INFORMATION:

Obligations:

(Direct payments) FY 87 $5,400,386; FY 88 est $7,448,000; and FY 89 est $11,500,000.

PROGRAM ACCOMPLISHMENTS:

As a result of natural disasters in fiscal year 1987, $4,657,000 in cost-share assistance was provided to 26 States to help rehabilitate farmland. It is estimated that $7.5 million in cost-share assistance will be paid to farmers and ranchers in fiscal year 1988. In fiscal yer 1989 it is estimated that $11.0 million in cost-share & sistance will be paid to farmers and ranchers to help rehabilitate farmland.

10.055 FEED GRAIN PRODUCTION STABILIZATION
USES AND USE RESTRICTIONS:

To be eligible for 1988 crop program benefits, program
participants must agree to reduce their historical plant
ings--crop acreage base--of corn, sorghum, and barley
by at least 20 percent and oats by 5 percent. Corn, sor
ghum, and barley producers in the 20 percent program
may also participate in an additional 10 percent paid
land diversion. The acreage removed from feed grain
production must be maintained in approved conserva
tion uses. Benefits received by producers include
target price protection with deficiency payments and
land diversion payments. Deficiency payments are
made whenever prices during the months of Septem-
ber through January for corn and sorghum and June
through October for barley and oats average below
the respective target prices per bushel of: Com $2.93;
sorghum $2.78; barley $2.51; and oats $1.55. Since the
Secretary adjusted loan rates, emergency compensation
payments are made to provide the same total return
if loan rates were not adjusted. Such payments are
made when feed grain prices during the entire market
ing year average below the loan rate prior to the ad-
justment. The maximum combined payment rate per
bushel (deficiency plus emergency compensation) is
the difference between the target price and the nation-
al average loan rate. Producers receive respective paid
diversion payment rates per bushel of corn $1.75; sor-
ghum $1.65; and barley $1.40. Producers may receive
40 percent of the estimated deficiency payment (50
percent in cash at signup and 50 percent in certificates
on or about May 16, 1988), and all of their paid land
diversion payments (100 percent in certificates on or
about May 16, 1988) after a program contract has been
signed and before compliance when program require
ments have been met. Program contracts are binding

and liquidated damages will be assessed for failure to
fulfill the terms of the contract.

APPLICATION AND AWARD PROCESS:
Preapplication Coordination:

None. This program is excluded from coverage under
OMB Circular No. A-102 and E.O. 12372.
Deadlines:

1988 program sign-up was from February 16, 1988 through April 15, 1988. Producers must report acreages and compliance with program requirements by specified dates which vary by State and within States. Producers must sign a contract before any payments are made. Contact State or County ASCS offices for ble deadlines.

a'

(Direct cash payments) FY 87 $2,363,213,918; FY 88 est $2,886,636,000; and FY 89 est $2,755,000,000.

Range and Average of Financial Assistance:

$3 to $250,000 per person. As of February 29, 1988, the average deficiency payment per producer for the 1986 feed grain crop was $7,623 and the average 1986 crop diversion payment was $138. The average deficiency payment per producer for the 1987 crop was $2,858 and the average 1987 crop diversion payment was $1,935. (Feed grain, wheat, cotton and rice deficiency and diversion payments, in total, may not exceed $50,000 to any one person for each of the 1986 - 1990 crop years. In addition, the total of any (1) gains realized by repaying a loan at a level lower than the original loan level; (2) disaster payments; (3) deficiency payments for wheat or feed grain attributable to a reduction in the statutory loan level; (4) loan deficiency payments; (5) inventory reduction payments; and (6) payments representing compensation for resource adjustment (other than diversion payments) or public access for recreation, combined with the total deficiency and diversion payments, may not exceed $250,000 for each of the 1987 through 1990 crops.)

PROGRAM ACCOMPLISHMENTS:

For the 1987 feed grain crop, there were 1,364,903 participating farms which received total deficiency payments of $4,692,917,000 and total diversion payments of $1,623,358,000 through June 30, 1988. Farmers received $1,510,406,000 in 1987 crop cash deficiency payments, $390,657,000 in 1987 crop cash diversion payments, $3,182,511,000 in 1987 crop deficiency certificates and $1,232,701,000 in 1987 crop diversion certificates through June 30, 1988. In fiscal year 1988, 1,293,302 enrolled farms also received $1,462,039,000 in advance 1988 crop cash deficiency payments, $485,000 in 1988 crop cash diversion payments, $1,409,795,000 in advance 1988 crop deficiency certificates and $612,751,000 in 1988 crop diversion certificates, through June 30, 1988.

10.056 STORAGE FACILITIES AND EQUIPMENT LOANS APPLICATION AND AWARD PROCESS:

Renewals:

Loans may be extended past maturity with approval of the ASCS county committee or the Deputy Administrator, State and county operations, as applicable. FINANCIAL INFORMATION:

Obligations:

(Loans) FY 87 $236,002; FY 88 est $300,000; and FY 89 est $0.

10.058 WHEAT PRODUCTION STABILIZATION USES AND USE RESTRICTIONS:

To be eligible for 1989 crop program benefits, producers must agree to reduce their historical plantings of wheat (average of previous 5 years) by at least 10.0 percent. The acreage removed from wheat production

must be maintained in approved conservation uses. Benefits received by producers include target price "deficiency" payments which are made whenever wheat prices during the months of June through October average below the target price of $4.10 per bushel. Since the Secretary adjusted loan rates below the basic level, emergency compensation (also known as "Findley”) payments are made to provide the same total return as if loan rates were not adjusted. Such payments are made when wheat prices during the entire marketing year average below the basic loan rate prior to the adjustment. The maximum payment rate per bushel is the difference between the target price and the national average loan price. Producers may receive a minimum of 40 percent of the estimated deficiency payment in advance after a program contract has been signed and before compliance with program requirements have been met. Program contracts are binding and liquidated damages will be assessed for failure to fulfill the terms of the contract. APPLICATION AND AWARD PROCESS: Deadlines:

Program sign-up for the 1989 crop has not been set. The
program sign-up for 1988 was from February 16, 1988
through April 15, 1988. Producers must report acre-
ages and compliance with program requirements by
specified dates which vary by State and within States.
All interested producers must sign a contract for pay-
ment before any payments are made.

FINANCIAL INFORMATION:
Obligations:

(Direct cash payments) FY 87 $1,546,826,838; FY 88 est
$727,689,000; and FY 89 est $525,000,000.

Range and Average of Financial Assistance: Up to $250,000 per person. As of Febraury 29, 1988, the average deficiency payment per producer for the 1986 crop was $7,268 and the average 1986 crop diversion payment was $367. The estimated average deficiency payment per producer for the 1987 crop was about $5,500. The average level of payment for the 1988 crop is expected to decline by greater than 50 percent. (Cotton, feed grain, wheat, and rice deficiency and diversion payments, in total, may not exceed $50,000 to any one person for each of the 1986 through 1990 crop years. In addition, the total of any (1) gains realized by repaying a loan at a level lower than the original loan level; (2) disaster payments; (3) deficiency payments for wheat or feed grains attributable to a reduction in the statutory loan level; (4) loan deficiency payments; (5) inventory reduction payments; and (6) payments representing compensation for resource adjustment (other than diversion payments) or public access for recreation, combined with total deficiency and diversion payments, may not exceed $250,000 for each of the 1987 through 1990 crops.)

PROGRAM ACCOMPLISHMENTS:

As of June 30, 1988, cumulative data for the 1987 crop included 554,543 participating farms receiving deficiency payments of $3,118,255,000. Farmers received $738,370,000 in 1987 cash deficiency payments and $2,379,885,000 in 1987 crop deficiency certificates through June 30, 1988. For the 1988 crop, 551,262 farms enrolled 72,622,763 million acres (85.2 percent of the total acreage base) of wheat base into the acreage reduction program. Producers were required to reduce their acreage base by 27.5 percent to gain program benefits. Through June 30, 1988, these 551,262 enrolled farms received $542,999,000 in advance 1988 crop cash deficiency payments and $524,311,000 in advance deficiency certificates in fiscal year 1988.

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10.059 NATIONAL WOOL ACT PAYMENTS

APPLICATION AND AWARD PROCESS:

Preapplication Coordination:

None. This program is excluded from coverage under E.O. 12372 and OMB Circular No. A-102. FINANCIAL INFORMATION:

Obligations:

(Direct payments) FY 87 $145,407,061; FY 88 est $131,000,000; and FY 89 est $80,900,000.

Range and Average of Financial Assistance:

Wool $5 to $478,758; Mohair $5 to $383,652. In fiscal year 1987, the average wool payment was $1,300 and the average mohair payment was $3,500. (In fiscal years 1987 and 1988 the respective maximum perpound sales value on which wool and mohair payments were made was 4 times the 1986 and 1987 calendar year national average market price received for wool and mohair, respectively. The maximum per-unit payment for 1988 marketings has not yet been determined.)

PROGRAM ACCOMPLISHMENTS:

In fiscal year 1987, $102,459,756 was paid to wool producers and $42,947,305 was paid to mohair producers for calendar year 1986 marketings. Approximately $89,600,000 will be paid to wool producers and $41,400,000 to mohair producers in fiscal year 1988 for calendar year 1987 marketings.

10.062 WATER BANK PROGRAM

FINANCIAL INFORMATION:
Obligations:

(Direct payments) FY 87 $10,783,000; FY 88 est
$9,139,000; and FY 89 est $9,871,000.

PROGRAM ACCOMPLISHMENTS:

In fiscal year 1988, approximately 365 agreements were signed with land owners to protect 46,000 acres. From 1979 through December 1987, 5,044 agreements were signed covering 565,609 acres.

10.063 AGRICULTURAL CONSERVATION PROGRAM FINANCIAL INFORMATION:

Obligations:

(Direct payments) FY 87 $181,894,000; FY 88 est $177,331,000; and FY 89 est $248,935,000.

PROGRAM ACCOMPLISHMENTS:

In fiscal year 1987, $157.5 million in cost-share assistance was provided to farmers and ranchers in the 50 States, Puerto Rico, and the Virgin Islands. It is estimated that approximately $177.5 million in cost-share assistance will be paid to farmers and ranchers in fiscal year 1988 and $219.0 million will be paid in fiscal year 1989.

EXAMPLES OF FUNDED PROJECTS:

In 1988, $6.8 million was allocated to States with approved water quality special projects. Targeting was directed to the most cost-effective practices instead of geographical areas.

10.064 FORESTRY INCENTIVES PROGRAM

FINANCIAL INFORMATION:

Obligations:

(Direct payments) FY 87 $11,925,245; FY 88 est $11,571,000; and FY 89 est $13,891,000.

PROGRAM ACCOMPLISHMENTS:

For fiscal year 1987, $9.0 million in cost-share assistance was provided to owners of forest land. It is estimated that approximately $11.5 million in cost-share assistance will be paid to owners of forest land in fiscal year 1988 and $13.1 million will be paid in fiscal year 1989.

10.065 RICE PRODUCTION STABILIZATION

USES AND USE RESTRICTIONS:

The 1988 crop rice program includes a 25 percent acreage reduction program. To be eligible for 1988 crop program benefits, producers must limit 1988 rice acre

12-88

age to no more than 75 percent of the farm's rice base
The acreage removed from rice production must be
maintained in approved conservation uses. Benefits i
clude target price "deficiency payments" which
made if rice prices during the first five months of the
marketing year (August-December) averages below
the target price. The target price for the 1988 crop i
$11.15 per hundredweight. The maximum deficien
payment rate is the difference between the target prix
and the national average loan and purchase rate. Th
national average loan and purchase rate for the 1988
crop is $6.63 per hundredweight. Producers may r
ceive 40 percent of the estimated deficiency payment
(50 percent in cash at signup and 50 percent in certif
cates on or about May 16, 1988) after a program con
tract has been signed and before compliance with pro
gram requirements have been met. The signup period
is February 16, 1988 through April 15, 1988. Produc
ers may repay loans at a rate which is the lower of the
loan rate or the higher of the world price of such rice,
as determined by the Secretary, or the loan level time
60 percent. Generic commodity certificates may be
paid to producers if the world price is below the mini-
mum loan repayment level at the time the rice is sold
or redeemed from a price support loan. Program co-
tracts for the 1988 crop are binding and liquidated
damages will be assessed for failure to fulfill the term
of the contract.

APPLICATION AND AWARD PROCESS:
Preapplication Coordination:

None. This program is excluded from coverage under E.O. 12372 and OMB Circular No. A-102. Deadlines:

1988 program signup is from February 16, 1988 through April 15, 1988. Producers must report acreages and compliance with program requirements by specified dates which vary by States. Producers must sign contract before any payments are made. The final por tion of deficiency payments will be after February 1, 1989. Marketing certificate payments must be request ed within 30 days from the day the rice was sold or redeemed from loan. Contact State or county ASCS offices for applicable deadlines. FINANCIAL INFORMATION: Obligations:

(Direct Cash Payments) FY 87 $376,206,089; FY 88 est $57,900,000; and FY 89 est $207,200,000. Range and Average of Financial Assistance: $3 to $250,000 per person. As of February 1988, the av erage deficiency payment per producer was estimated at $16,350 for the 1987 crop and $15,670 for the 198% crop. (Cotton, feed grain, wheat, and rice deficiency and diversion payments, in total, may not exceed $50,000 to any one person for the 1986 through 1990 crop years. In addition, the total of any (1) gains real ized by repaying a loan at a level lower than the orig nal loan level, (2) disaster payments, (3) deficiency payments for wheat or feed grains attributable to duction in the statutory loan level, (4) loan deficiency payments, (5) inventory reduction payments, and (0) payments representing compensation for resource a justment (other than diversion payments) or public access for recreation, combined with the total deficien cy and diversion payments, may not exceed $250,000 for the 1987 through 1990 crops.) PROGRAM ACCOMPLISHMENTS: As of September 30, 1987, cumulative data for the 1986 crop included 19,431 participating farms receiving def ciency payments of $494,505,000. As of September 30, 1987, farmers received $438,435,000 in 1986 crop cash