LegiStorm

Summary:
Highlights

GAO reviewed the Department of Agriculture (USDA), Federal Crop Insurance Corporation (FCIC), Farm Service Agency (FSA), and the Commodity Credit Corporation's (CCC) new rule on agricultural disaster indemnity programs. GAO found that the final rule (1) prescribes how USDA will provide agricultural disaster assistance as authorized by the Additional Supplemental Appropriations for Disaster Relief Act of 2019; (2) contains specific administrative provisions for payments to eligible producers and dairy operations for milk through the Wildfire and Hurricane Indemnity Program Plus (WHIP+), the On-Farm Storage Loss Program, and the Wildfire and Hurricane Indemnity Program; (3) expands the eligibility for 2017 WHIP to include losses incurred from Tropical Storm Cindy and updates regulations from the Tree Assistance Program; and (4) provides support to producers who were prevented from planting eligible crops in 2019 due to various natural disaster events.







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B-331417
September 25, 2019
The Honorable Pat Roberts
Chairman
The Honorable Debbie Stabenow
Ranking Member
Committee on Agriculture, Nutrition, and Forestry
United States Senate
The Honorable Collin C. Peterson
Chairman
The Honorable K. Michael Conaway
Ranking Member
Committee on Agriculture
House of Representatives
Subject: Department of Agriculture,
Federal Crop Insurance Corporation, Farm Service Agency, Commodity Credit Corporation:
Agricultural Disaster Indemnity Programs
Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a
major rule promulgated by the Department of Agriculture (USDA), Federal Crop Insurance
Corporation (FCIC), Farm Service Agency (FSA), Commodity Credit Corporation (CCC) entitled
?Agricultural Disaster Indemnity Programs? (RIN: 0560-AI52).  We received the rule on
September 13, 2019.  It was published in the Federal Register as a final rule
on September 13, 2019.  84 Fed. Reg. 48518.  The effective date of the rule is
September 13, 2019.
This final rule prescribes how USDA will provide agricultural disaster assistance as
authorized by the Additional Supplemental Appropriations for Disaster Relief Act of 2019
(Disaster Relief Act).  The final rule also contains specific administrative
provisions for payments to eligible producers and dairy operations for milk through the
Wildfire and Hurricane Indemnity Program Plus (WHIP+), the On-Farm Storage Loss Program,
and the Wildfire and Hurricane Indemnity Program (WHIP).  This final rule expands the
eligibility for 2017 WHIP to include losses incurred from Tropical Storm Cindy and updates
regulations from the Tree Assistance Program (TAP).  Finally, the rule provides
support to producers who were prevented from planting eligible crops in 2019 due to various
natural disaster events.
The Congressional Review Act (CRA) requires a 60-day delay in the effective date of a
major rule from the date of publication in the Federal Register or receipt of the
rule by Congress, whichever is later.  5 U.S.C. § 801(a)(3)(A).  The 60-day delay
in effective date can be waived, however, if the agency finds for good cause that delay is
impracticable, unnecessary, or contrary to the public interest, and the agency incorporates
a statement of the findings and its reasons in the rule issued.  5 U.S.C.
§§ 553(b)(3)(B).  USDA found good cause for the provisions of this rule to become
effective immediately upon publication because it determined that the notice and public
procedures are contrary to the public interest given the nature and need to implement the
regulations expeditiously to provide agricultural disaster assistance to producers who
suffered certain loses in 2018 and 2019.  USDA therefore determined that they are not
required to delay the effective date for 60 days from the date of publication and that this
rule is effective upon publication in the Federal Register.
Enclosed is our assessment of USDA?s compliance with the procedural steps required by
section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule.  If you have
any questions about this report or wish to contact GAO officials responsible for the
evaluation work relating to the subject matter of the rule, please contact Janet
Temko-Blinder, Assistant General Counsel, at (202) 512-7104.
  signed
Shirley A. Jones
Managing Associate General Counsel
Enclosure
cc: Mary Ann Ball
Management Analyst
Department of AgricultureENCLOSURE
REPORT UNDER 5 U.S.C. § 801(a)(2)(A) ON A
MAJOR RULE
ISSUED BY THE
Department of Agriculture,
Federal Crop Insurance Corporation,
Farm Service Agency,
Commodity Credit Corporation
ENTITLED
?Agricultural Disaster Indemnity Programs? (RIN: 0560-AI52)
(i) Cost-benefit analysis
The Department of Agriculture (USDA) stated that the final rule is expected to result in
about $2.9 billion in combined payments out of the 2018 Wildfire and Hurricane Indemnity
Program Plus (WHIP+) and remaining 2017 Wildfire and Hurricane Indemnity Program (WHIP)
appropriations, with most benefits going to producers with 2018 hurricane losses in the
Southeast and 2019 prevented planting in the Midwestern states.  USDA also estimates
that the rule includes an estimated $1.223 billion in indemnities for 2018 and 2019
eligible disasters to date, and $535 million for a 10 to 15 percent expansion of existing
coverage on prevented planting.  Lastly, after factoring in estimated payments for
on-farm storage losses of $50 million and eligible milk losses of $5 million, USDA
anticipates expenditures of $1.813 billion to count against the $3 billion
appropriated funds under the Disaster Relief Act of 2019.
(ii) Agency actions relevant to the Regulatory Flexibility Act (RFA), 5 U.S.C. §§
603?605, 607, and 609
USDA determined this final rule is not subject to RFA because USDA is not required by
the Administrative Procedure Act (APA) or any law to publish a proposed rule for this
rulemaking.
(iii) Agency actions relevant to sections 202?205 of the Unfunded Mandates
Reform Act of 1995, 2 U.S.C. §§ 1532?1535
USDA determined this final rule does not mandate any requirements for state, local, or
tribal governments, or for the private sector.
(iv) Other relevant information or requirements under acts and executive
orders
Administrative Procedure Act, 5 U.S.C. §§ 551et seq.
As noted above, USDA stated that it is not required by APA to publish a proposed rule
for this rulemaking.  USDA determined that the 30-day delay in effective date
provisions under APA do not apply to this rule because this rule involves programs for
payments to certain agricultural commodity producers.  USDA believes there is good
cause for this rule to become effective immediately upon publication, so as to
expeditiously provide agricultural disaster assistance to producers who suffered certain
losses in 2018 and 2019.
Paperwork Reduction Act (PRA), 44 U.S.C. §§ 3501?3520
USDA determined that this final rule contains a new information collection requirement
(ICR) under the Act.  It is entitled ?Wildfire and Hurricane Indemnity Program
Plus.?  USDA estimated that it will have an annual number of 26,592 respondents with a
total annual burden of 18,405 hours.  It was submitted to the Office of Management and
Budget (OMB) for emergency approval and OMB approved it for 6 months.  With this final
rule, the Farm Service Agency (FSA) is requesting comments from interested individuals and
organizations on the ICR.  USDA stated that following the 60-day public comment period
for this rule, this ICR will be submitted to OMB for approval for 3 years. 
Statutory authorization for the rule
USDA promulgated this final rule under sections 1506, 1531, and 4501 of title 7; section
3801 of title 16; and section 2497 of title 19, United States Code, and title III of Public
Law 109-234; title IX of Public Law 110-28; section 748 of Public Law 111-80; title I
of Public Law 113-179; and title VII of Public Law 115-141.
Executive Order No. 12,866 (Regulatory Planning and Review)
OMB determined that this final rule is economically significant under the Order and has
reviewed the rule.
Executive Order No. 13,132 (Federalism)
USDA determined this final rule will not have any substantial direct effect on states, on the
relationship between the federal government and the states, or on the distribution of power
and responsibilities among the various levels of government, except as required by law and
that this rule does not impose substantial direct compliance costs on
state and local governments.




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