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Federal Register / Vol. 86, No. 236 / Monday, December 13, 2021 / Rules and Regulations
Business Regulatory Enforcement Fairness Act of 1996 SBREFA. The requirements for the regulatory flexibility analysis in 5 U.S.C. 603 and 604 are specifically tied to the agency being required to issue a proposed rule by section 553 or any other law, further, the definition of rule in 5 U.S.C. 601 is tied to the publication of a proposed rule.

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Executive Orders 12866 and 13563
Executive Order 12866, Regulatory Planning and Review, and Executive 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. The requirements in Executive Orders 12866
and 13573 for the analysis of costs and benefits apply to rules that are determined to be significant.
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.
Cost Benefit Analysis Summary The Supplemental DMC payments are authorized by the Consolidated Appropriations Act, 2021. The use of 100-percent premium and supreme 3
hay in the DMC calculation is an administrative change made by FSA.
Changes to DIPP are initiated by FSA as a result of PFAS chemical residue cases.
The OFF program is authorized by the Consolidated Appropriations Act, 2019.
The CRP changes remove discretionary limitations in order to provide greater flexibility to CREP partners and increase payments modestly in situations where state law intersects with CRP. The MAL
and LDP provisions are technical changes that implement provisions of the 2018 Farm Bill.
DMC provides eligible dairy producers with a risk management tool that pays producers when the difference between the price of milk and the cost of feed that is, the margin falls below a certain level. This determination is based on a formula using the milk price 3 Referred
to as premium for simplicity.

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and feed costs corn, soybean meal, and alfalfa hay. In June 2019 84 FR 28171, June 18, 2019, the regulation was changed to specifying the alfalfa hay price used in the calculation. Prior to that time, the calculation used only the price of conventional alfalfa hay. The 2019 regulation implemented a factored price, which was based on 50 percent of the premium alfalfa hay price and 50
percent of the conventional alfalfa hay price. Given USDA analysis indicating that the DMC feed cost formula does not adequately capture the costs experienced by dairy producers, 100percent premium alfalfa hay will be used in the calculation. This change in the DMC margin formula will be retroactive and will start in January 2020. The accrued Fiscal Year FY 2021
costs associated with this change, including the retroactive January 2020
through September 2020 payment period, are estimated at $108.47 million Table 1. A 3-fiscal year FY 2021
through FY 2023 cost estimate, including the estimate for the first quarter of FY 2024 in the FY 2023 data, is $335.43 million. The 10-year FY
2021 through FY 2030 cost estimate is $705.32 million.
The Consolidated Appropriations Act, 2021, allows eligible dairy operations with less than 5 million pounds of established milk production history to enroll supplemental pounds of milk in DMC using 2019 actual milk marketings.4 Participating dairy operations with supplemental production may receive additional payments over and above their currently established production history.
Supplemental DMC is available to participating DMC dairy operations starting in January of 2021 and lasting through December 31, 2023.
Supplemental DMC payments will be made retroactively, starting in January 2021, for the months when DMC
triggered. The Supplemental DMC
estimates are calculated using the DMC
formula based on 100-percent premium alfalfa hay.
FY 2021 accrued gross costs for Supplemental DMC are estimated at $114.62 million. After subtracting premiums paid by farmers for supplemental milk production enrollment, net costs are estimated at $110.31 million see Table 1. To provide perspective, DMC gross costs for FY 2021 prior to Supplemental DMC are estimated at $1.70 billion.; as a result, supplemental DMC is estimated to increase payments to dairy producers by 6.7 percent $114.62 million/$1.7
4 Supplemental DMC allows for enrollment above and beyond what is already enrolled in 2021 DMC.

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billion accrued in FY 2021. As indicated above, Supplemental DMC is available to participating operations from January 2021 to December 2023.
Total stochastic gross and net outlays for the entirety of the 3-year program are estimated at $661.77 million and $644.52 million, respectively.
The rule also amends DIPP. DIPP is available to dairy farmers and dairy product manufacturers who, through no fault of their own, suffer income losses because milk or milk products were contaminated with harmful pesticide residues, chemicals, toxic substances, or nuclear radiation or fallout. The rule change allows affected farmers and manufacturers to be compensated for their milk or their cows and heifers. The rule:
1 Amends the duration a dairy claimant under DIPP is eligible to receive indemnification for milk and milk products from 18 months to 3 months except in cases in which it is shorter when cow indemnity is approved or when case-by-case extensions are granted, and 2 Allows for indemnification of cows and heifers that are affected by chemical residues and likely to be not marketable long term and will require removal of dairy cows from the farm by depopulation, transport, and disposal.

DIPP accrued costs in FY 2021, relative to what they would have been otherwise, are estimated to increase by $4.19 million due to retroactive payment for depopulated cows that were indemnified for the term of milk indemnity limitation according to the prior regulation. These payments will be made in FY 2022. In the future, the regulatory change will result in savings, rather than outlays.
The Consolidated Appropriations Act, 2019, provides $9 million to FSA to assist producers affected by an Oriental Fruit Fly Bactrocera dorsalis quarantine as referenced in House Report 115232. Producers must have suffered eligible losses due to the quarantine that occurred in the Redland area of Miami-Dade County, Florida, from August 28, 2015, through February 13, 2016. The payment covers 70
percent of the 2015 and 2016 revenue losses suffered relative to 2014 revenue or 2019 revenue, if the producer does not have access to 2014 revenue. At the close of the OFF sign-up period, a national payment factor may be determined and announced by FSA if the total of calculated payments exceeds the authorized funding of $9 million, less a reserve amount of 3 percent $270,000. Gross OFF Program outlays in FY 2022 may be as high as in the $23
million range and net outlays are estimated at $8.73 million. Given the
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