Commodity Credit Corporation: 1998 Single-Year and Multi-Year Crop Loss Disaster Assistance Program

Published by the Government Accountability Office on 1999-05-27.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

      United States

GAO   General Accounting Office
      Washington, D.C. 20548

      Office of the General Counsel


      May 27, 1999

      The Honorable Richard G. Lugar
      The Honorable Tom Harkin
      Ranking Minority Member
      Committee on Agriculture, Nutrition, and Forestry
      United States Senate

      The Honorable Larry Combest
      The Honorable Charles W. Stenholm
      Ranking Minority Member
      Committee on Agriculture
      House of Representatives

      Subject: Department of Agriculture, Commodity Credit Corporation: 1998 Single-Year
               and Multi-Year Crop Loss Disaster Assistance Program

      Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a
      major rule promulgated by Department of Agriculture, Commodity Credit Corporation
      (CCC), entitled “1998 Single-Year and Multi-Year Crop Loss Disaster Assistance
      Program” (RIN: 0560-AF75). We received the rule on May 14, 1999. It was published
      in the Federal Register as a final rule on April 15, 1999. 64 Fed. Reg. 18553.

      The final rule sets forth the terms and conditions of the 1998 Single-Year and Multi-
      Year Crop Loss Disaster Assistance Program. The purpose of the program is to
      provide payments to eligible producers who suffered losses because of an eligible
      disaster in crop year 1998, or in at least three of the crop years from 1994 through

      Enclosed is our assessment of the CCC’s compliance with the procedural steps
      required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. Our
      review indicates that the CCC complied with the applicable requirements.

If you have any questions about this report, please contact James W. Vickers, at (202)
512-8210. The official responsible for GAO evaluation work relating to the subject
matter of the rule is Larry Dyckman, Director, Food and Agriculture Issues.
Mr. Dyckman can be reached at (202) 512-5138.

Sincerely yours,

Robert P. Murphy
General Counsel


cc: Mr. Keith Kelly
    Administrator, Farm Service
    Department of Agriculture

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        ANALYSIS UNDER 5 U.S.C. § 801(a)(1)(B)(i)-(iv) OF A MAJOR RULE
                                 ISSUED BY
                      DEPARTMENT OF AGRICULTURE,
                      DISASTER ASSISTANCE PROGRAM"
                              (RIN: 0560-AF75)

(i) Cost-benefit analysis

CCC performed a cost-benefit assessment of the final rule. The cost of the final rule
includes $1.5 billion in assistance directed to producers who have incurred losses on
1998 crops due to weather-related disasters. An additional $875 million is made
available to provide assistance to producers who have incurred multi-year losses in
the period to include 1998 and proceeding crop years.

According to the assessment, the benefits include an increase in farm income of
$2.375 billion that will help stabilize farm income and help farmers remain in

(ii) Agency actions relevant to the Regulatory Flexibility Act, 5 U.S.C. §§ 603-605, 607,
and 609

Since the final rule was not published as a proposed rule, it is not subject to the
requirements of the Act.

(iii) Agency actions relevant to sections 202-205 of the Unfunded Mandates Reform
Act of 1995, 2 U.S.C. §§ 1532-1535

The final rule does not contain an intergovernmental or private sector mandate as
defined in title II of the Unfunded Mandates Reform Act of 1995.

(iv) Other relevant information or requirements under acts and executive orders

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.

Section 1133 of the authorizing legislation, Public L. 105-277, permitted the final rule
to be issued without regard to the notice and comment procedures contained in
5 U.S.C. 553.

Likewise, section 1133 permitted the CCC to utilize the authority in 5 U.S.C. 808 to
make the final rule effective when the CCC determined, thereby negating the 60-day

delay in the effective date of a major rule requirement of 5 U.S.C. 801 to permit
congressional review of the rulemaking.

Paperwork Reduction Act, 44 U.S.C. §§ 3501-3520

The authorizing legislation for the final rule, Pub. L. 105-277, at section 1133 provides
that the rule should be issued as soon as practicable and without regard to the
Paperwork Reduction Act. Therefore, the information collections contained in the
final rule do not require prior approval by the Office of Management and Budget.

Statutory authorization for the rule

The final rule was issued pursuant to the authority of Sections 1101 and 1102 of
Public Law 105-277, 112 Stat. 2681; 15 U.S.C. 714b and 714c.

Executive Order No. 12866

The final rule was determined to be an “economically significant” regulatory action
under Executive Order No. 12866 by the Office of Management and Budget. It was
reviewed and found to comply with the Order.

Executive Order No. 12612 (Federalism)

CCC has determined that this rule does not have sufficient federalism implications to
warrant the preparation of a federalism assessment.

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