Summary: Since 1995, the Department of Agriculture has been reorganizing and modernizing to improve the efficiency, effectiveness, and economy of programs that support agriculture and rural areas. Much of this effort has focused on USDA's county-based agencies: the Farm Service Agency, the Natural Resources Conservation Service, and the agencies involved in rural development. GAO found that USDA's progress in carrying out its initiatives has been mixed. USDA has closed more than 1,000 of its 3,726 county offices and established collocated service centers throughout the country. It has also set up personal computers and a modern telecommunications network at most of its service centers. Despite these efforts, little has changed in how the three agencies serve their customers, and many modernization and reengineering projects have encountered delays. The three major issues that have impeded USDA's progress are the (1) lack of a comprehensive plan to guide the modernization effort, (2) lack of a management structure with the accountability and the authority to resolve differences among the agencies, and (3) need for change in the existing organizational structure.