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Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Rules and Regulations Order 13563, Improving Regulation and Regulatory Review, direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits including potential economic, environmental, public health and safety effects, distributive impacts, and equity. Executive Order 13563
emphasized the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. Executive Order 13777, Enforcing the Regulatory Reform Agenda, established a Federal policy to alleviate unnecessary regulatory burdens on the American people.
The Office of Management and Budget OMB designated this rule as economically significant under Executive Order 12866, and therefore, OMB has reviewed this rule. The costs and benefits of this rule are summarized below. The full cost benefit analysis is available on regulations.gov.
Executive Order 13771, titled Reducing Regulation and Controlling Regulatory Costs, was issued on January 30, 2017. The OMB guidance in M17
21, dated April 5, 2017, specifies that transfers are not covered by Executive Order 13771 but that requirements imposed apart from transfers in transfer rules may qualify as costs or cost savings under Executive Order 13771, for example the information collection requirements in this rule. This rule is not subject to the requirements of E.O.
13771 because this rule results in no more than de minimis costs.

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Cost Benefit Analysis Summary WHIP+ initially provided approximately $3 billion in
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supplemental assistance to producers for qualifying agricultural production losses. In the Further Consolidated Appropriations Act, 2020, Congress changed provisions of the Disaster Relief Act as follows:
1. Extended eligibility under WHIP+
to also cover 4
a. Crop production losses due to excessive moisture in calendar years 2018 and 2019;
b. Crop production losses due to drought in calendar years 2018 and 2019 if the area within the county in which the loss occurred was rated by the U.S. Drought Monitor as having a D3
extreme drought or higher level of drought intensity during the applicable calendar year;
2. Provided assistance for sugar beet losses in 2018 and 2019 to be paid through cooperative processors; 5 and 3. Authorized assistance for crop quality losses that occurred in calendar years 2018 and 2019 through the QLA
Program implemented by this rule.
Eligible crops under the QLA Program include crops for which Federal crop insurance or NAP coverage is available.
To be eligible for the QLA Program, a crop must have suffered a quality loss due to a qualifying disaster event and had at least a 5 percent quality discount due to a combination of the qualifying disaster event and any other QLAeligible causes of loss. Eligible crops may have been sold, fed on farm to 4 The addition of excessive moisture and certain drought conditions as qualifying causes of loss under WHIP+ is specific, not open to interpretation, and is therefore self-enacting. Accordingly, the provision was previously implemented. FSA began the sign-up period on March 23, 2020, and sign-up ended on October 30, 2020.
5 Assistance for sugar beet losses for members of cooperative processors is provided through a separate program.

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livestock, or been in storage at the time of application.
USDA estimates the Further Consolidated Appropriations Act, 2020
will provide approximately $950
million for the continuation of disaster assistance program delivery, including payments to eligible producers for production losses due to excessive moisture and extreme drought under WHIP+ and for quality losses covered by the QLA Program. Of that amount, USDA anticipates that an estimated $500 million will be available for QLA
Program payments. However, the amount of funding ultimately available for the QLA Program will not be known until other payments, for example for excessive moisture and drought under WHIP+, are finalized.
The QLA Program payment calculation depends on several factors, as shown in Figure 1. A producer is ineligible for a QLA Program payment if they received a crop insurance indemnity, NAP payment, or WHIP+
payment for a crop that was unmarketable, sold for salvage value or secondary use, or if the payment was based on a comparison of the sales price of the affected production and the applicable reference price. Otherwise, payments or benefits received under the Federal crop insurance, NAP or WHIP+
do not affect a producers eligibility or payment received from the QLA
Program. The payment calculation depends on the use of production nonforage or forage and evidence at hand of the crop quality loss. Producers who do not have evidence of the quality loss are ineligible.

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