GAO-03-785R 

United States General Accounting Office

Washington, DC 20548 

B-292300 

May 29, 2003 

The Honorable Thad Cochran 

Chairman 

The Honorable Tom Harkin 

Ranking Minority Member 

Committee on Agriculture, Nutrition, and Forestry 

United States Senate 

The Honorable Bob Goodlatte 

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--

Conservation Reserve Program--Long-Term Policy

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--Conservation Reserve Program-- 

Long-Term Policy” (RIN: 0560-AG74). We received the rule on May 15, 2003. It was 

published in the Federal Register as an interim rule on May 8, 2003. 68 Fed. Reg. 

24830. 

The interim rule amends the Conservation Reserve Program (CPR) regulations to set 

forth the terms and conditions of enrolling acreage in the CPR, update program 

eligibility requirements, eliminate unnecessary regulations, and improve the 

remaining regulations. The rule implements changes made to the CPR by the Farm 

Security and Rural Investment Act of 2002 (2002 Act). 

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, 
Page 2 GAO-03-785R 

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 

Director, Regulatory Review Group 

Department of Agriculture 
GAO-03-785R 

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--CONSERVATION RESERVE PROGRAM-- 

LONG-TERM POLICY" 

(RIN: 0560-AG74) 

(i) Cost-benefit analysis

The CCC performed a cost-benefit analysis of the interim rule. Total CRP outlays are 

estimated to increase $1.5 billion, while commodity program outlays are estimated to 

decline about $1.7 billion during FY 2003 through 2012, primarily due to a $1.5 billion 

counter-cyclical payment decline. The additional 2.8 million-acre enrollment is 

estimated to decrease combined CRP and commodity program outlays by $208 

million annually during the 10-year period. 

Total estimated impacts for the additional CRP enrollment, including $326 million 

annual economic losses due to higher crop prices and reduced crop supplies (buyers’

loss) and estimated average annual economic benefits (increased farm incomes and 

environmental benefits), results in estimated net economic benefits of $131 million 

per year. 

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

607, and 609

As the interim rule was not preceded by 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 interim 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 et seq. 

Section 2702 of the 2002 Act states that the rule may be issued without regard to the 

requirement for notice and comment. 
Page 2 GAO-03-785R 

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

Section 2702 of the 2002 Act states that the rule may be promulgated without regard 

to the requirements of the Paperwork Reduction Act. 

Statutory authorization for the rule 

The interim rule was promulgated under the authority contained in the Farm 

Security and Rural Investment Act of 2002 (Pub. L. 107-171) and 15 U.S.C. 714b and 

714c and 16 U.S.C. 3801-3847. 

Executive Order No. 12866 

The interim rule was reviewed by the Office of Management and Budget and found to 

be an “economically significant” regulatory action under the order.