**GAO-03-226R**                      Oct 15, 2002                  

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## Highlights

GAO reviewed the Department of Agriculture, Commodity Credit Corporation's (CCC) new rule on the Farm Security and Rural Investment Act of 2002 Sugar Programs and Farm Facility Storage Loan Program. GAO noted that (1) the rule would implement Title 1 of the Farm Security and Rural Investment Act of 2002 relating to the various activities affecting sugar beet and sugar cane producers and processors and the marketing of sugar, and (2) CCC complied with the applicable requirements in promulgating the rule.

##  Department of Agriculture, Commodity Credit Corporation: 2002 Farm Security and Rural Investment Act of 2002 Sugar Programs and Farm Facility Storage Loan Program, GAO-03-226R,October 15, 2002

B-291293October 15, 2002The Honorable Tom Harkin     Chairman     The Honorable Richard G. Lugar     Ranking Minority Member     Committee on Agriculture, Nutrition, and Forestry     United States SenateThe Honorable Larry Combest     Chairman     The Honorable Charles W. Stenholm     Ranking Minority Member     Committee on Agriculture     House of Representatives     Subject:Department of Agriculture, Commodity Credit Corporation: 2002 Farm Security and Rural Investment Act of 2002 Sugar Programs and Farm    Facility Storage Loan ProgramPursuant 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, Commodity Credit Corporation (CCC), entitled 2002 Farm Security and Rural Investment Act of 2002 Sugar Programs and Farm Facility Storage Loan Program (RIN:    0560-AG73).  We received the rule on October 9, 2002.  It was published in the Federal Register as a final rule on August 26, 2002.  67 Fed. Reg. 54926.     The final rule implements the provisions of Title I of the Farm Security and Rural Investment Act of 2002 (Pub. L. 107-171) relating to the various activities affecting sugar beet and sugar cane    producers and processors and the marketing of sugar.     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, Assistant General Counsel, at (202) 512-8210.  The official responsible for GAO evaluation work relating to the    subject matter of the rule is Robert Robinson, Managing Director, Natural Resources and Environment.  Mr. Robinson can be reached at (202) 512-3841.                 signed     Kathleen E. Wannisky     Managing Associate General Counsel     Enclosure     cc:       James R. Little     Administrator     Farm Service Agency     Department of Transportation            ENCLOSURE     ANALYSIS UNDER 5 U.S.C.  801(a)(1)(B)(i)-(iv) OF A MAJOR RULE     ISSUED BY THE     DEPARTMENT OF AGRICULTURE,     COMMODITY CREDIT CORPORATION     ENTITLED     "2002 FARM SECURITY AND RURAL INVESTMENT ACT OF 2002 SUGAR PROGRAMS AND FARM FACILITY STORAGE LOAN PROGRAM"     (RIN: 0560-AG73)(i) Cost-benefit analysis     The cost-benefit analysis finds that the final rule will result in a slight decrease in domestic sugar production.  The changes are expected to decrease the annual average available    stocks-to-use ratio by 26 percent; increase sugar prices by about 9 percent; increase sugar loan collateral forfeitures by 15 percent; decrease the Commodity Credit Corporation's average    inventory by 67 percent; and slightly reduce, by $13 million per year, CCC's expenditures on the sugar program.(ii) Agency actions relevant to the Regulatory Flexibility Act, 5 U.S.C.  603-605, 607, and 609     Since the final rule was not issued following a notice of proposed rulemaking, the requirements of the Regulatory Flexibility Act do not apply.(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 either an intergovernmental or private sector mandate, as defined in title II, of more than $100 million in any one year.(iv) Other relevant information or requirements under acts and executive orders     Administrative Procedure Act, 5 U.S.C.  551 etseq.     Section 1601(c) of the Farm Security and Rural Investment Act of 2002 states that the final rule shall be issued without regard to the requirements of 5 U.S.C. 553.     Paperwork Reduction Act, 44 U.S.C.  3501-3520     Section 1601(c) of the Farm Security and Rural Investment Act of 2002 states that the final rule shall be issued without regard to the requirements of the Paperwork Reduction Act.     Statutory authorization for the rule     The final rule is promulgated under the authority contained in Title I of the Farm Security and Rural Investment Act of 2002 (Pub. L. 107-171) and 7 U.S.C. 1359aa-1359jj and 7272 etseq. and 15 U.S.C. 714b and 714c.     Executive Order No. 12866     The final rule was reviewed by the Office of Management and Budget and found to be an economically significant regulatory action under the order.

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