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Federal Register / Vol. 86, No. 11 / Tuesday, January 19, 2021 / Rules and Regulations
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.
In general response to the requirements of Executive Order 13777, USDA created a Regulatory Reform Task Forces, and USDA agencies were directed to remove barriers, reduce burdens, and provide better customer service both as part of the regulatory reform of existing regulations and as an on-going approach. USDA reviewed this regulation and made changes to provide better customer service. The costs and benefits of this rule are summarized below. The full cost benefit analysis is available on regulations.gov.
Cost Benefit Analysis Summary CFAP 1 and CFAP 2 assist producers of agricultural commodities marketed in 2020 who face continuing market disruptions, reduced farm-level prices, and increased production and marketing
costs due to COVID19. These additional costs are associated with declines in demand, surplus production, or disruptions to shipping patterns and marketing channels.
As mentioned above, in implementing the CFAP 1 and CFAP 2, FSA received feedback from local office staff and the agricultural industry. As a result, additional CFAP assistance and other changes are being made to provide assistance to additional growers that suffered COVID-related revenue losses, to ensure that calculations most accurately reflect sales, to provide equitable producer treatment, and to clarify certain provisions appearing in CFAP 2.
These changes referred to as CFAP
Additional Assistance, along with the associated gross and net estimated outlays, are shown in Table 1 at the end of this section. Payments for item 1 the top up for swine producers and item 2 payments to contract livestock producers will draw on CARES
funding. Payments for items 3, 4, and 5
in Table 1 all payments referenced as CFAP 2 payments or modified CFAP 2
payments draw on CCC funding that remains given CFAP 1 and CFAP 2

payments. These payments are authorized by the CCC Charter Act section 5 b, d and e.
Estimated gross outlays for CFAP
Additional Assistance are estimated at $3.10 billion see Table 1. After taking into account payment limitations, net outlays are estimated at $2.28 billion.
Payments to contract swine, chicken, egg, and turkey producers account for 87 percent of the total.
FSA, which implemented CFAP 1 and 2, will start accepting CFAP Additional Assistance applications for contract producers and turfgrass sod and pullet producers on January 19, 2021.
Producers who did not apply by the CFAP 1 deadline September 11, 2020
are not eligible for the swine top-up payment.
Net payments represent benefits to producers, which is the government cost of the program. Outlays shown in Table 1 are estimated at expected maximum levels. Some producers must take additional actions under this rule if they are interested in receiving benefits.
These producers realize administrative costs associated with participation, which are estimated at $4.15 million.

TABLE 1SUMMARY OF CFAP ADDITIONAL ASSISTANCE REGULATORY CHANGES AND ESTIMATED COSTS
Gross estimated outlays in billion $

Item Item 1Provide a top up inventory payment to swine producers eligible for CFAP 1
Item 2Assist contract producers of swine, chickens, eggs, and turkeys
Item 3Include turfgrass sod, pullets, and by-products of live animals as sales-based commodities for CFAP 2 eligibility.
Item 4Include 2019 crop insurance indemnities and 2019 NAP WHIP+ payments to the producers 2019 sales to compute CFAP 2 payments.
Item 5Change the calculation for price-trigger commodities with respect to ARCCO
Item 6Clarify that reptiles and bees are ineligible for CFAP 2
Item 7Make minor corrections to the definitions of fruits and tree nuts in 9.201 and 9.202c.

$0.81
$1.98
$0.21

$0.15.
$1.98.
$0.10.

$0.08

$0.03.

$0.02
No change in outlays ..
No change in outlays ..

$0.02.
No change in outlays.
No change in outlays.

Total

$3.10

$2.28.

Regulatory Flexibility Act
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Net estimated outlays in billion $

The Regulatory Flexibility Act 5
U.S.C. 601612, as amended by the Small Business Regulatory Enforcement Fairness Act of 1996 SBREFA, generally requires an agency to prepare a regulatory analysis of any rule whenever an agency is required by APA
or any other law to publish a proposed rule, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. This rule is not subject to the Regulatory Flexibility Act because as noted above, this rule is exempt from notice and comment rulemaking requirements of the APA
and no other law requires that a
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proposed rule be published for this rulemaking initiative.
Environmental Review The environmental impacts of this final rule have been considered in a manner consistent with the provisions of the National Environmental Policy Act NEPA, 42 U.S.C. 43214347, the regulations of the Council on Environmental Quality 40 CFR parts 15001508, and because USDA will be making the payments to producers the USDA regulations for compliance with NEPA 7 CFR part 1b.
Although OMB has designated this rule as economically significant under Executive Order 12866, . . .

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economic or social effects are not intended by themselves to require preparation of an environmental impact statement when not interrelated to natural or physical environmental effects see 40 CFR 1502.16b. CFAP
was designed to avoid skewing planting decisions. Producers continue to make their planting and production decisions with the market signals in mind, rather than any expectation of what a new USDA program might look like. The discretionary aspects of CFAP for example, determining AGI and payment limitations were designed to be consistent with established USDA and the CCC programs and are not expected to have any impact on the human
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