The conference agreement provides $2,992,000 for the Office of the Secretary as proposed by the Senate instead of $3,015,000 as proposed by the House.

The conferees strongly support the extension of the Global Food for Education Initiative program for fiscal year 2002. While both the House and Senate Committee reports demonstrated strong support for the program, the Department has still not announced its intentions for fiscal year 2002. The conferees urge the Secretary in the strongest possible terms to use available authorities to continue the Global Food for Education Initiative for fiscal year 2002.

The Secretary shall report to the Committees on Appropriations no later than March 1, 2002 on USDA's plans for the National Finance Center.

The conferees have recommended $40,000,000 under `Agricultural Research Service, Buildings and Facilities' to incrementally fund a long-term project for consolidation and replacement of laboratory facilities in Ames, IA. In addition, the President has proposed $14,081,000 for the Animal and Plant Health Inspection Service for relocation of facilities in Ames, IA, and this proposal will be considered in subsequent appropriations action related to emergency expenses to respond to the September 11, 2001, terrorist attacks on the United States. The conferees are concerned about the management of this very substantial effort involving two agencies of the Department and, therefore, direct the Office of the Secretary to submit a report to the Committees on Appropriations by March 1, 2002, that will include current estimates of full costs and the proposed construction schedule for this project as well as the Department's management plan for coordinating the efforts of ARS and APHIS in the performance of this long range construction program.

The conferees are seriously concerned that domestic lamb prices have fallen by 50 percent or more since June 2001, causing sheep producers to incur unprecedented losses which are unexplained by historic pricing patterns. The conferees direct the Secretary to conduct a study of lamb prices in the U.S. including comparison of live lamb prices to carcass and boxed lamb prices for 2001, determination of the spreads between these categories, and documentation of what market factors are affecting and establishing live lamb and carcass prices since January. A report on this study shall be submitted to the Committees on Appropriations and Agriculture by February 1, 2002, and this report should also include the degree and influence, if any, that imports, concentration, and mandatory price reporting have had on the lamb market this year as compared to the past five years.

The conferees strongly encourage the Secretary, in direct consultation with the wheat industry, to review the need for regulating Karnal bunt as a pest. The conferees are also concerned with the financial impacts incurred by producers and handlers as a result of Karnal bunt and direct the Secretary to continue compensation activities with all affected entities.

The conferees are concerned with the severe drought conditions along the U.S./Mexico border in the area of the Rio Grande watershed and Mexico's continuing failure to meet its water obligations to the area as delineated in the 1944 water treaty. The conferees are concerned with Mexico's lack of progress in implementing a repayment plan for its water deficit under this treaty, and the resulting negative effect on U.S. agricultural production. The conferees direct the Secretary to provide a report to the Committees on Appropriations of the House and Senate by March 1, 2002, detailing the value of the annual loss of U.S. agricultural production resulting from this deficit and the Department's authorities and plans to assist agricultural interests in the Rio Grande watershed with the financial ramifications of Mexico's water debt.

Ohio School Food Service Authorities continue to work with other State agencies and the Department to develop an inspection system that ensures safety while maximizing the number of eligible children receiving the benefit of the program. The conferees direct the Department to continue to work towards developing a pilot project for school food safety inspections in Ohio, and to keep the Committees advised of any action on this matter.

The conferees are aware that certain states have meat and poultry inspection standards that are as stringent as Federal standards, and that those states would like to be able to ship state-inspected meat interstate. The conferees encourage the Department to consider developing a limited pilot project that would allow for such shipment, involving the state of Ohio. The conferees direct the Department to provide a report to the Committees on Appropriations before the fiscal year 2003 appropriations hearings regarding the feasibility of such a pilot project, including the legal requirements and a proposed design.

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