**GAO-03-244R**                      Dec 04, 2002                  

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## Highlights

GAO reviewed the Department of Agriculture, Commodity Credit Corporation's (CCC) new rule on 2002 Farm Bill Regulations. GAO found that (1) the rule would implement a portion of Title I of the Farm Security and Rural Investment Act of 2002 relating to farm commodity price support programs of the Farm Service Agency and the CCC; and (2) CCC complied with applicable requirements in promulgating the rule.

##  Department of Agriculture, Commodity Credit Corporation: 2002 Farm Bill Regulations--Marketing Assistance Loans and Loan Deficiency Payments for Peanuts, Pulse Crops, Wheat, FeedGrains, Soybeans and Other Oilseeds, GAO-03-244R, December 4, 2002

B-291575December 4, 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 Bill Regulations--Marketing Assistance Loans and Loan Deficiency    Payments for Peanuts, Pulse Crops, Wheat, Feed Grains, Soybeans and Other Oilseeds*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, Commodity Credit Corporation (CCC), entitled 2002 Farm Bill Regulations--Marketing Assistance Loans and Loan Deficiency Payments for Peanuts, Pulse Crops, Wheat, Feed Grains,    Soybeans and Other Oilseeds (RIN: 0560-AG72).  We received the rule on November 29, 2002.  It was published in the Federal Register as a final rule on October 11,    2002.  67 Fed. Reg. 63506.     The final rule implements a portion of Title I of the Farm Security and Rural Investment Act of 2002 (the 2002 Act)(Pub. L. 107-171) relating to the farm commodity price support programs of the    Farm Service Agency and the CCC.  The 2002 Act authorizes Marketing Assistance Loans and Loan Deficiency Payments for peanuts, wool, mohair, pulse crops (lentils, small chickpeas, dry peas),    wheat, feed grains, soybeans, and other oilseeds.  Peanuts, wool, mohair, and pulse crops have not been eligible for these programs prior to the enactment of this law and the final rule adds    these new commodities.     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:   Thomas J. Witzig     Chief, Regulatory Review Group     Department of Agriculture            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 BILL REGULATIONS--MARKETING ASSISTANCE LOANS     AND LOAN DEFICIENCY PAYMENTS FOR PEANUTS, PULSE CROPS,     WHEAT, FEED GRAINS, SOYBEANS AND OTHER OILSEEDS"     (RIN: 0560-AG72)(i) Cost-benefit analysis     The Commodity Credit Corporation estimates the average annual change in government outlays for fiscal years 2002-2007 as follows:ProgramAverage                                                                              (in millions)     Loan Rates for Covered     Commodities                                                       $859     Loan Deficiency-like Payments     For Grazed--Wheat, Barley, Oats                       12     Triticale                                                                    26     Pulse    Crops                                                              18     Wool and    Mohair                                                       2     Honey                                                                        80     Peanuts                                                                        997     Total                                                                    $1,994(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).     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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