SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background

II. Supplemental Disaster Assistance Programs

A. ELAP

1. Assistance for Losses Due to Bird Depredation

2. Honeybee Colony Loss Normal Mortality

3. Assistance for Transportation Costs

4. Other Changes

B. LFP

C. LIP

1. Assistance for Unborn Death Losses

i. Background

ii. Implementation for Program Year 2026 and Subsequent Years

iii. Implementation for Program Years 2024 and 2025

2. Updates to Compensation for Predation Losses to 100 Percent of Market Values

3. Updates to Market Values Used in Payment Calculations, Including Adding a Producer's Alternative Price Option

4. Other Changes

D. TAP

III. Marketing Assistance Loans and Loan Deficiency Payments

A. Honey Nonrecourse Loans

B. Upland and ELS Cotton

1. Payment of Cotton Storage Costs

2. Upland Cotton Prevailing World Market Price Change

3. ELS Prevailing World Market Price Calculation

4. 30-Day Loan Optimization Window (LOW) for Upland Cotton

5. Additional Changes for Cotton

C. Sugar Program

D. Feedstock Flexibility Program

IV. ARC and PLC Correction

V. DMC Correction

VI. Severability

VII. Regulatory Analyses

A. Effective Date, Notice and Comment, and Paperwork Reduction Act

B. Executive Orders 12866, 13563, and 14192

C. Cost Benefit Analysis Summary

D. Environmental Review

E. Executive Order 13175

F. Unfunded Mandates Reform Act

G. E-Government Act Compliance

I. Background

On July 4, 2025, President Trump signed into law H.R. 1 (Pub. L. 119-21), also known as the One Big Beautiful Bill Act (OBBBA). This rule amends the provisions of the supplemental disaster assistance programs (ELAP, LFP, LIP, and TAP), MAL, LDP, and the Sugar ( printed page 42314) Program to implement changes made by OBBBA. This rule also makes discretionary changes to those programs to improve program administration and clarify existing policy, in addition to minor administrative changes such as updating references to the applicable program years and removing outdated provisions.

CCC is updating the regulations for the supplemental disaster assistance programs as mandated by OBBBA. These updates include ELAP assistance for losses due to bird depredation and a change to honeybee colony loss normal mortality, a lower drought threshold for LFP eligibility, LIP assistance for unborn death losses and changes to compensation for predation losses and the market values used in the LIP payment calculations, and changes to the TAP eligibility threshold and reimbursement percentage for certain costs. This rule also makes additional changes to the regulations for these programs to clarify program provisions and requirements and improve program integrity.

This rule increases the MAL and LDP loan rates for all eligible commodities for the 2026 through 2031 crop years as specified by OBBBA. Additional MAL and LDP changes for upland and extra-long staple (ELS) cotton required by OBBBA include revised formulas to calculate the prevailing world market price for upland cotton, the introduction of a prevailing world market price and adjusted world price for ELS cotton, and changes to the payment of cotton storage costs by area. Additionally, CCC is amending the regulations to add provisions for a 30-day post-repayment loan review in which a refund for upland cotton repayment or an additional LDP disbursement could occur. Sugar Program changes are related to effective loan rates, storage rates, and sugar marketing allocation provisions. This rule also makes minor administrative changes to the Sugar Program regulations. Technical amendments are included for grains and similarly handled commodities and honey. This rule updates the Feedstock Flexibility Program (FFP) provisions to indicate that 2026 is the final crop year covered by the program. This rule also amends definitions in the ARC and PLC regulation and corrects a cross-reference in the DMC regulation.

II. Supplemental Agricultural Disaster Assistance Programs

ELAP, LFP, LIP, and TAP were authorized by section 1501 of the Agricultural Act of 2014 (Pub. L. 113-79, 7 U.S.C. 9081). Section 10401 of OBBBA included mandatory changes for each of these programs. This rule implements those changes and includes additional discretionary changes for these programs.

This rule also amends the general administrative provisions for the supplemental agricultural disaster assistance programs in 7 CFR 1416.2, subpart A, for consistency with other FSA and CCC programs and updates references to USDA's debt management provisions, which are provided in 7 CFR part 3. CCC previously issued a rule on June 2, 2026 (91 FR 32880) to implement changes to the payment limitation provisions for qualified pass-through entities and average adjusted gross income (AGI) limitation provisions that were mandated by OBBBA. This rule revises § 1416.6 to remove outdated payment limitation and AGI provisions and to refer to the current provisions in 7 CFR part 1400.

A. ELAP

ELAP provides financial assistance to eligible producers of livestock, honeybees, and farm-raised fish for losses due to disease, certain adverse weather events, or loss conditions, including blizzards and wildfires, as determined by the CCC. In accordance with section 10401(c) of OBBBA, this rule amends the ELAP regulations to add provisions for losses due to bird depredation and establish a honeybee normal mortality rate for determining eligible honeybee colony losses. It also makes additional discretionary changes including adding definitions for terms related to transportation assistance and other minor updates for clarity and consistency.

1. Assistance for Losses Due to Bird Depredation

This rule amends the ELAP regulations to conform with OBBBA provisions that provide assistance for freshwater farm-raised fish damage or loss due to bird depredation, which were not previously covered under ELAP. OBBBA provides that the payment rate for this assistance will take the following factors into account: (1) costs associated with the deterrence of piscivorous birds; (2) the value of lost fish and revenue due to bird depredation; and (3) costs associated with disease loss from bird depredation. OBBBA specifies that the minimum payment rate shall be not less than $600 per acre of farm-raised fish. As provided in this final rule at § 1416.109(e), for program year 2026, CCC has determined that the payment rate will be $600 per eligible acre because CCC does not have data to justify increasing the payment rate above the minimum rate at this time. CCC may increase the rate per acre in future program years if there is documented evidence justifying an increase in the payment rate. For example, CCC welcomes information from independent third-parties, such as a university or cooperative extension service with expertise related to the farm-raised fish industry, that provides documented evidence relating to the costs associated with the deterrence of piscivorous birds, the value of lost fish and revenue due to bird depredation, and costs associated with disease loss from bird depredation. A producer may earn only $600 per eligible acre for each program year; repeated bird depredation events during a year will not result in multiple payments for the same acres. The payment rate is applicable for all eligible farm-raised fish.

In accordance with section 10401(c) of OBBBA, payments for eligible losses due to bird depredation will be equal to the applicable payment rate described above, multiplied by 85 percent of the total number of acres of farm-raised fish farms that the producer has in production for the calendar year (referred to as the “program year” in the ELAP regulations). This rule adds that payment calculation in § 1416.112(c). To be considered eligible acres, the producer must have reported them to FSA on a timely filed acreage report ^[1] in accordance with 7 CFR part 718, as determined by CCC, and they must have been in use for fish production at the time of bird depredation (§ 1416.103(k)). Unused ponds or waterways, bodies of water not under control of the producer, and any water that is reduced due to drought are not eligible acres for bird depredation losses.

In order to administer assistance for losses due to bird depredation, CCC is also adding and amending several definitions in § 1416.102. This rule adds definitions of “bird depredation”, in alignment with OBBBA, and “freshwater” for clarity. It also amends the definition of “eligible loss condition” to include bird depredation. This rule updates the definition of “farm-raised fish” to specify that, for the purpose of loss due to bird depredation, the term means “fish propagated and reared in a controlled freshwater environment” as provided by OBBBA and clarifies that it does not include crawfish or crayfish for that purpose. Crawfish and crayfish are excluded from “farm-raised fish” for losses due to bird depredation because they are ( printed page 42315) crustaceans, not fish, and producers do not have a standard method to track crawfish and crayfish inventory. Residual inventory from prior years is often present, and producers cannot accurately track current inventory because crawfish and crayfish lay hundreds of eggs, which are not hatched prior to seeding.

To be eligible for payment, a producer must have produced eligible farm-raised fish for commercial use as part of a farming operation and must have had a loss due to bird depredation, as described above (§ 1416.105(d)). The farm-raised fish must be propagated or reared in a controlled freshwater environment, have been maintained for commercial use as part of the farming operation, and have been physically located in the county where the piscivorous birds were present on the beginning day of the loss condition (§ 1416.104(f)(3)).

To apply for losses due to bird depredation, a producer must timely file an acreage report as provided in 7 CFR part 718. By March 1 of the following program year, the producer must also file a notice of loss, an Emergency Loss Assistance for Farm-Raised Fish Application, a report indicating eligible acres of freshwater in use at the time of bird depredation, and an active U.S. Fish and Wildlife Depredation permit with cormorant, American white pelican, heron, or Great egret listed on the permit. If requested by FSA, the producer must also submit documentation to substantiate the producer's use of eligible acres of freshwater reported, inventory losses, and a minimum of 3 of the following 5 items:

• Documentation that losses are from bird depredation, supported by evidence including bird sightings, fish mortality records, aerial surveys, or third-party assessments;
• Documentation of annual expenditures on non-lethal and lethal methods to prevent or reduce bird presence in the area;
• Documentation of costs attributed to disease spread by birds, including prescriptions for medicated feed or any other costs showing disease loss from bird depredation;
• A USDA-Wildlife Services or U.S. Fish and Wildlife Service approved bird harassment plan; and
• A year-end collecting report of the number of birds terminated and reported to the U.S. Fish and Wildlife Service.

2. Honeybee Colony Loss Normal Mortality

Section 10401(c) of OBBBA (7 U.S.C. 9081(d)) provides that a normal mortality rate of 15 percent will be used with respect to eligible honeybee colony losses. Prior to this change, the normal mortality rate was established by FSA for each program year based on published data. This rule updates § 1416.111(b)(2) to conform with OBBBA and specifies the normal mortality rate of 15 percent for program year 2026 and subsequent years.

3. Assistance for Transportation Costs

CCC is adding definitions of “harvested feed or feedstuffs,” “miles above normal,” and “truckload” to clarify provisions related to assistance for transportation costs and improve program integrity. As provided in the definition, “harvested feed or feedstuffs” includes mechanically harvested production that must be wrapped, twined, stacked, or combined in a manner that the harvested product can be transported from one area to another, which aligns with the definition of “harvested” under the Noninsured Crop Disaster Assistance Program (NAP; § 1437.3). This definition is intended to alleviate confusion in situations where a producer has cut a crop but has not further processed it into a condition that allows it to be removed from the field. It clarifies that windrows that have not been mechanically processed into a transportable state are not considered harvested. Similarly, straw left in the field that has not been mechanically processed is also not considered harvested.

The definition of “truckload” and new § 1416.110(r) are intended to clarify how FSA will determine eligibility for payment for feed or livestock transportation. The truckload definition specifies that the transportation must be by a motorized land vehicle, which does not include trains, planes, or ships. A truckload is considered a single trip and includes only the mileage from one point to another, not multiple end points or more than one stop. It also excludes mileage for delivery that is not clearly identified by the mileage rate on verifiable documentation. In addition, the definition and § 1416.110(r) exclude transportation provided through services such as the U.S. Postal Service, FedEx, and UPS. Fees from these transportation service providers are considered part of a commercial shipping service and therefore do not qualify as personal vehicle mileage or an eligible trucking-rate expense.

The definition of “miles above normal” specifies that the term only includes transportation from one point to another, and does not include multiple end points where items are offloaded and then reloaded for transport to additional locations. It also clarifies that eligibility requires verifiable documentation that delineates a mileage rate that is quantitatively separate from the price of the feed or animals being transported. This definition has been added to remove confusion in situations where a producer pays for the transport of feed or animals, but the vendor incorporates transportation costs into the total price and does not separately identify the miles above normal used to calculate ELAP assistance.

4. Other Changes

This rule amends § 1416.110(a) to specify that livestock feed payments for an eligible livestock producer will be calculated based on losses for no more than 150 grazing days during the program year. The clarification of “grazing” days was previously omitted from the regulation and this addition provides consistency with payments for grazing losses in §  1416.110(g)(2).

This rule also amends the definition of “program year” for clarity and removes unnecessary references to prior years. CCC is adding definitions of “adult water buffalo bull”, “adult water buffalo cow” and “non-adult water buffalo” in § 1416.102 and adding adult and non-adult water buffalo as separate categories of livestock in § 1416.104. Water buffalo were previously considered eligible under the categories for adult and non-adult buffalo; this change is intended to improve clarity and reduce confusion. This rule also amends § 1416.106 to update the provisions for applications for payment for honeybees and farm-raised fish, which now use separate application forms.

CCC is revising § 1416.107(a) to clarify the requirement to file an acreage report. Acreage reports are required by § 1416.106, and they must be filed in accordance with the provisions of §§ 718.101 through 718.112 that generally apply to FSA and CCC programs. As provided in § 718.101(c), acreage reports must be filed by the final reporting date established by the Deputy Administrator, and late-filed acreage reports are subject to the provisions of § 718.104. CCC is also adding § 1416.107(b) to provide the deadline for producers to submit any additional documentation requested by CCC to verify the producer's eligibility or losses. Such documentation must be ( printed page 42316) provided by a producer by the later of March 1 after the end of the applicable program year or 60 days after the date of the request. This rule also amends paragraph references throughout the regulations where necessary due to the changes discussed above.

B. LFP

LFP provides financial assistance to livestock producers who suffer eligible grazing losses due to a qualifying drought during the normal grazing period or when a Federal agency prohibits grazing the normal permitted livestock on managed rangeland due to a qualifying fire. LFP payments for drought are based on the drought severity, as determined in accordance with the U.S. Drought Monitor. Section 10401(b) of OBBBA (7 U.S.C. 9081) lowered the drought threshold for program eligibility.

Prior to this rule, LFP eligibility required eight consecutive weeks of qualifying severe drought (D2) intensity during the normal grazing period before livestock producers were eligible for drought assistance. OBBBA lowered this threshold to four consecutive weeks of qualifying severe drought (D2) conditions for program eligibility in order for a producer to receive a one-month payment. OBBBA also adds eligibility for a two-month payment if severe drought (D2) conditions continue for 7 out of 8 consecutive weeks during the normal grazing period. All other drought intensities, durations, and payment months for LFP eligibility remain the same. These changes will be effective for program year 2026 and subsequent years.

CCC is adding definitions of “adult water buffalo bull”, “adult water buffalo cow” and “non-adult water buffalo” in § 1416.202 and adding adult and non-adult water buffalo as separate categories of covered livestock in § 1416.204(b). Water buffalo were previously considered eligible under the categories for adult and non-adult buffalo; this change is intended to improve clarity and reduce confusion.

C. LIP

As authorized by section 1501(b) of the Agricultural Act of 2014 (7 U.S.C. 9081(b)), LIP provides financial assistance to eligible livestock producers for eligible death losses, in excess of normal mortality, caused by an eligible cause of loss, including adverse weather, disease, and attacks by animals reintroduced into the wild by the Federal government or protected by Federal law. The program also compensates eligible livestock owners who sell livestock at reduced prices due to injury from an eligible loss condition.

1. Assistance for Unborn Death Losses

i. Background

As mandated by section 10401(a)(2) (7 U.S.C. 9081(b)) of OBBBA, this rule adds provisions to provide compensation to eligible livestock producers for unborn livestock death losses, in excess of normal mortality, that occurred on or after January 1, 2024. Unborn death loss compensation is determined based on losses of eligible adult livestock that were gestating on the date of their death due to an eligible loss condition. Livestock sold due to injury from an eligible loss event and livestock that are stillborn or aborted from adult females that did not die as a result of an eligible loss event are not eligible for unborn death loss compensation.

Section 10401(a)(2) (7 U.S.C. 9081(b)) of OBBBA requires that payments for unborn death losses will be compensated at a rate that is less than or equal to 85 percent of the payment rate established with respect to the lowest weight class of the same kind and type of livestock. As required by OBBBA, the payment amount will be equal to that payment rate multiplied by an applicable number, referred to in this rule as the “birthing factor” (7 U.S.C. 9081(b)(5)(C)). OBBBA established the birthing factors for cattle, bison, horses, sheep, and swine. For other species of livestock, OBBBA requires that the birthing factor for such livestock would be the average number of birthed animals per gestational cycle for each species. This rule adds these birthing factors to § 1416.306(i). Unborn death losses will be compensated based on the number of eligible adult females that were gestating at the time of the adult female livestock's death, after normal mortality has been applied; no additional normal mortality reductions will apply to unborn death losses.

Eligible livestock categories for unborn death losses include alpacas, beef cattle, beefalo, buffalo, bison, caribou (reindeer), dairy cattle, deer, elk, equine, goats, llamas, sheep, swine, and water buffalo, or other species. Historically, the eligible livestock categories for LIP have been identified by livestock kind, type (adults, non-adults, including sex), and weight class, as applicable, for beef cattle, beefalo, buffalo, bison, dairy cattle, goats, sheep, and water buffalo; however, losses of alpacas, caribou, deer, elk, equine, and llamas have been reported under a single category for each livestock kind that encompasses all adults, non-adults, sexes, and weight ranges due to that livestock kind's limited market data and low program participation. Swine have been identified by types and weights of livestock; however, they have not been separately identified by sex.

OBBBA provides that eligible livestock producers will be compensated for eligible unborn livestock death losses that occurred on or after January 1, 2024. As discussed below, to administer this assistance, CCC is updating the way livestock are categorized for 2026 and subsequent years to collect additional information that is relevant to determining unborn livestock death losses. For the 2024 and 2025 program (calendar) years, FSA will ( printed page 42317) use information that was previously reported, as described below.

ii. Implementation for Program Year 2026 and Subsequent Years

Beginning in program year 2026, CCC will update the livestock categories for livestock kinds that were previously reported under a single category, establishing payment rates separately for adults and non-adults using national market data that is available. For those categories that lack ample market data, CCC will use a comparative model of the price ratios between adults and non-adults for other livestock categories that do have ample market data, as applicable. For example, the ratio between the 2025 payment rate for an adult beef cow ($1,810.09) to the payment rate of non-adult beef cattle-less than 400 pounds ($770.86) is 43 percent or a 43:100 ratio. An example of when this scenario could be used is to establish payment rates for alpacas when no market data are available to establish a non-adult rate.

This rule amends the definitions in § 1416.302 to establish separate definitions for adult and non-adult livestock for livestock kinds that were previously reported under a single category and updates the category list to reflect those defined terms in § 1416.304. Form CCC-852, LIP Application for Payment, has been updated to allow producers to certify the number of eligible adult female livestock death losses for livestock that were bred and gestating at the time of the adult female livestock's death. This update enables payments to be calculated for unborn livestock death losses based on the number of eligible adult bred female death losses, after applying normal mortality adjustments. As defined in § 1416.302, “bred” means that an eligible adult female livestock has been exposed to an adult male breeding animal and is gestating or deliberately bred through controlled reproduction. This term does not apply to poultry. Payments will be based on the number of eligible adult bred female death losses identified by the producer on the Application For Payment—livestock producers typically use the term “bred” rather than “gestating” when identifying pregnant livestock and track breeding dates and expected gestation status in accordance with the producer's specific breeding practices for their operation rather than confirmed gestation.

CCC may request additional supporting documentation from eligible livestock producers or conduct spot checks to confirm that livestock were gestating at the time of the eligible loss of the adult female. Additional information that may be requested includes, but is not limited to, verification of breeding records, exposure dates, herd health or veterinary documentation, inventory logs, and other supporting operational records consistent with the producer's normal business practices. A spot check or request for additional information is appropriate when CCC identifies any of the following:

• Missing, inconsistent, or incomplete breeding or inventory records;
• Reported death losses that appear excessive or outside normal expectations for the operation type, size, or production practices;
• Conflicting information between the application, supporting documentation, or prior-year program participation;
• Patterns of repeated corrections, revisions, or documentation gaps by the producer; or
• Situations where CCC has reason to question whether livestock were bred at the time of loss based on reported exposure dates, breeding windows, or herd management practices.

If discrepancies are identified, further documentation may be requested and adjustments may be made to approved death loss numbers.

Payment rates for unborn livestock death losses will be 85 percent of the lowest non-adult weight class, as applicable, of the same livestock kind; this is the maximum payment rate authorized by OBBBA.

iii. Implementation for Program Years 2024 and 2025

The application periods for the 2024 and 2025 program (calendar) years have ended, and CCC's implementation of this provision is intended to minimize the burden on producers who have previously applied for LIP compensation for the adult female in those prior years. To implement this provision retroactively for the 2024 and 2025 program years, CCC is using a two-pronged approach: one approach for eligible livestock categories where producer data on file already identifies eligible adult female losses, and another for livestock categories for which losses of adults, non-adults, males, and females were reported collectively and not identified by type.

For program years 2024 and 2025, FSA records indicate that approximately 4,400 LIP applications have been approved that may require review for unborn death losses. CCC has established LIP payment rates based on livestock kind, type, and weight range for the categories of adult beef, beefalo, bison, buffalo, dairy, and water buffalo cows, nanny goats, and ewes (sheep); as a result, CCC can identify all eligible adult female livestock death losses, after normal mortality, from producers' approved applications. However, CCC does not have the data on file to identify the number of those adult females that were gestating at the time of death. Additionally, CCC can identify all approved eligible losses for livestock categories for which adults, non-adults, males, and females were combined, as applicable, but cannot identify the number of eligible adult females included in those losses.

CCC evaluated the operational challenges of implementing this provision retroactively because all 2024 and 2025 LIP applications would need to be reviewed and revised to indicate whether livestock were female and, if applicable, gestating at the time of death. Instead, CCC reviewed available loss data and typical breeding and disaster patterns to determine an approach based on the best available data. Records show that 86 percent of LIP applications submitted for these program years were for beef cattle losses, and within this category, CCC can identify adult female losses classified as “adult beef cow.” Furthermore, FSA records indicate that 52 percent of eligible loss events in 2024 and 2025 occurred in January, February, and March; this period typically aligns with beef cow gestation in preparation for late winter and spring calving. Under U.S. commercial livestock production practices, breeding females of major livestock species are typically gestating for a substantial portion of the calendar year, commonly more than half the year and, for some species, approaching three-quarters or more (including beef and dairy cattle). Requiring producers to self-certify bred livestock or submit breeding records for 2024 and 2025 losses—information not previously required for LIP participation—would create significant administrative burden and impede timely delivery of critical disaster assistance authorized by OBBBA. These considerations support CCC's decision for 2024 and 2025 to focus on livestock categories where accurate identification is feasible and to apply reasonable assumptions regarding timing and gestation while maintaining program integrity and minimizing producer burden and operational risk.

Accordingly, rather than requiring all producers to revise their 2024 or 2025 LIP application to identify which females were bred at the time of death, CCC will implement a streamlined approach in 2024 and 2025 for ( printed page 42318) producers who reported losses for livestock categories for which the number of eligible adult female livestock is already on file. Based on the rationale and analysis of the timing of loss events, and the livestock categories experiencing the losses, all approved female livestock deaths in 2024 and 2025 will be presumed gestating at the time of loss, and CCC will automatically issue an unborn livestock death loss payment to the applicant based on the number of eligible adult female losses after normal mortality has been applied. No additional action is required by the LIP applicant to receive this payment. The payment for these specific livestock categories will be calculated at 85 percent of the payment rate of the lowest weight range category established for the applicable livestock, multiplied by the applicable birthing factor.

Losses for livestock categories for which adults, non-adults, males, and females were reported collectively, and for which livestock types were not separated by sex for program years 2024 and 2025, account for approximately 100 applications, primarily for deer, elk, equine, and llamas. These species have gestational periods ranging from roughly 200 days to 11 months. Because CCC does not have data to determine how many of these losses were female, applicants with approved losses in these categories may revise their previously approved 2024 and 2025 CCC-852 LIP applications to identify the number of adult females included in their reported losses. Swine have established adult livestock types that combine boars and sows, and they also have established payment rates for adults and non-adults. Applications for these types for program years 2024 and 2025 will need to be revised to identify females specifically. Other revisions to 2024 and 2025 applications, such as any increases to adult livestock losses, are not authorized.

To maintain consistency across the two reporting situations (those who have identified livestock deaths by gender at the time of adult female loss and those who have reported collectively without separating by gender), CCC will only require identification of female losses retroactively for the latter group and will not request additional documentation or proof of breeding status for either group. Once producers identify female livestock and the revised application is reviewed and determined to be accurate, CCC may issue an additional payment to compensate for unborn death losses. With the exception of swine, this payment will be based on the newly determined eligible female losses after normal mortality and will be calculated at 40 percent of the payment rate, since the payment rate for these categories includes both adults and non-adults and does not have an established lower weight class rate. This 40 percent factor was determined using similar ratios of adult and non-adult LIP payment rates in other livestock categories. Swine that are newly identified as sows will be compensated at 85 percent of the lowest weight category already established (sucklings or nursery pigs). The payment calculation will also incorporate the applicable birthing factor that accounts for the average number of offspring per birthing cycle.

For applications that require identification of female losses to receive a payment for unborn livestock death losses, FSA will notify all eligible producers of the opportunity to submit revisions to their approved 2024 or 2025 LIP applications by an established deadline. Any applications that are not revised by this deadline will remain unchanged, and no additional payment will be issued. CCC is not extending the original deadlines to submit an application for these years, and no other revisions to approved applications are authorized.

2. Updates to Compensation for Predation Losses to 100 Percent of Market Values

Section 10401(a) of OBBBA (7 U.S.C. 9081(b)) required changes to the payment calculation for eligible livestock losses due to predation, which includes attacks by animals reintroduced into the wild by the Federal Government or protected by Federal law, including wolves and avian predators. Previously, losses due to predation were compensated at 75 percent of the market value established by CCC. Under OBBBA, losses due to predation must be compensated at 100 percent of the market value as determined by CCC. CCC has added § 1416.306(d) and (f) to provide the updated payment calculation for predation losses and will implement this change starting with the 2026 program year.

3. Updates to Market Values Used in Payment Calculations, Including Adding a Producer's Alternative Price Option

Section 10401(a) of OBBBA (7 U.S.C. 9081(b)) amends the Agricultural Act of 2014 to require that indemnity payments to eligible producers must be based on the applicable percentage of the market value of the affected livestock on the “applicable date,” as determined by CCC. In accordance with these OBBBA amendments, the “applicable date” is defined as “the day before the date of death of the livestock” or “the day before the date of the event that caused the harm to the livestock that resulted in a reduced sale price.” Since LIP began, the daily market prices have not been established because consistent market data and resources are not available for most livestock kinds, types, and weight classes. Therefore, payment rates have been set nationally using the previous year's national average market data from USDA's National Agricultural Statistical Service (NASS) or Agricultural Marketing Service (AMS) for most livestock species.

OBBBA includes provisions that allow producers to document regional price premiums that exceed the national average market price established by CCC. Beginning with the 2026 program year, CCC will enhance the process for establishing LIP payment rates to better reflect accurate market values for eligible livestock categories. CCC will continue to set national payment rates using national average market data, but will also provide additional options to allow compensation to be based on the highest of the following:

• National average market value by livestock kind, type, and weight class at the beginning of the program year, based on prior-year market data as determined by CCC;
• National average market value by livestock kind, type, and weight class at the end of the program year, based on current-year market data as determined by CCC;
• The producer's verifiable market value for livestock of the same kind, type, and weight class, based on the market value closest to the date of loss or date of event that caused the injury, specific to the producer's operation and program year, not to exceed 145 percent of the higher of the national average market values established by CCC; or
• Another price approved by CCC on data showing market value the day before the livestock loss or the day before the date of the event that caused the loss.

Effective for 2026 and subsequent program years, LIP payment rates are based on the higher of the national average market values determined by CCC or the producer's approved alternative market value, not to exceed 145 percent of the national average market value. The determined market values are multiplied by 75 percent for losses due to an eligible adverse weather ( printed page 42319) event or disease, and 100 percent for losses due to an eligible attack.

For 2026 and subsequent program years, CCC has updated the CCC-852 LIP Application to separate the “Notice of Loss” from the “Application for Payment” to be consistent with other CCC disaster programs and to align with policy and software development. The revised Application for Payment allows producers to document an alternative market price specific to their operation for eligible livestock losses, including unborn livestock, which will use the alternative market price for the lowest weight category within the applicable livestock category.

Acceptable documentation for an alternative market price includes, but is not limited to, a producer's verifiable third-party sales or marketing document for their operation. The documentation must include the producer's name as the seller; the buyer's name and contact information; the date and location of the sales transaction; the number of livestock marketed by kind, type, and weight; and the sales price received per head. Alternative pricing must be supported by producer-specific market data for the applicable livestock kind, type, and weight class in the applicable program year.

The CCC-852, LIP Notice of Loss and Application for Payment, including all required supporting documentation and any alternative price documentation, must be submitted by the program deadline of March 1 following the calendar year in which the loss occurred.

4. Other Changes

CCC is updating and adding definitions in § 1416.302 for clarity. In addition to updates to the definitions of livestock categories to administer assistance for unborn death losses, this rule also specifies in the definitions of adult and non-adult “caribou” that reindeer and caribou are synonymous, as they are the same species (Rangifer tarandus). It also adds definitions for the categories of water buffalo that are separate from the categories for buffalo; previously, water buffalo were included under “buffalo” for LFP, and this change is intended to reduce confusion. In addition, the rule adds definitions for “program year,” which for LIP means the calendar year, and for “reliable record or documentation” and “verifiable record or documentation” to align with other CCC and FSA disaster programs. This rule also amends § 1416.305 to remove a reference to prior program years in paragraph (c), correct a typographical error in paragraph (d)(8), and clarify that paragraph (g) applies to eligible diseases. It also updates cross-references in § 1416.306.

D. TAP

TAP provides assistance to eligible orchardists and nursery tree growers (collectively referred to as “producers”) to replant or rehabilitate trees, bushes, and vines that were lost because of an eligible natural disaster. To receive TAP assistance, a producer must first suffer a qualifying tree, bush, or vine mortality loss in the calendar year (or loss period in the case of plant disease); once that threshold is met, the producer may receive assistance for both loss and damage of eligible trees, bushes, and vines. Prior to OBBBA, a producer had to suffer a minimum 15 percent loss, adjusted for normal mortality, in the calendar year (or loss period in the case of plant disease) to be eligible for TAP payments. OBBBA lowered the loss threshold so that a producer qualifies for TAP if they exceed the normal mortality for a tree, bush, or vine, and this rule amends §§ 1416.403(a) and 1416.406(b) to be consistent with that change.

Additionally, OBBBA increases the portion of a producer's lost or damaged trees, bushes, or vines for which they may receive assistance. This rule amends § 1416.400(b) and § 1416.406(a) to provide that payments will be calculated for the cost of replanting or rehabilitating trees, bushes, or vines that were damaged or lost due to a natural disaster, in excess of normal damage or normal mortality, consistent with OBBBA. Previously, payments were calculated based on the trees, bushes, or vines in excess of 15 percent damage or mortality, adjusted for normal damage or mortality.

To illustrate these changes, suppose a producer has a stand of 1,000 citrus trees and normal mortality for the stand is 3 percent. The producer lost 200 citrus trees due to an eligible natural disaster. Prior to OBBBA implementation, the producer would have had to lose more than 180 trees in the stand (18 percent of the trees, which represents the 15 percent statutory threshold plus 3 percent normal mortality) to be eligible for TAP. With the OBBBA change, the producer is eligible for a TAP payment if they lose more than 30 trees, which represents 3 percent normal mortality.

Prior to OBBBA implementation, the producer would have been eligible for reimbursement for replanting costs for 164 of the 200 citrus trees lost. To calculate this number, the number of trees lost (200 trees) was multiplied by 18 percent (15 percent threshold plus 3 percent normal mortality), which equals 36 trees. That number was then subtracted from the total trees lost (200 − 36 = 164). With the change in this rule, the number of trees lost (200 trees) is multiplied by 3 percent normal mortality, which equals 6 trees, and that number is subtracted from the total trees lost, resulting in 194 trees for which the producer would be eligible for payment.

This rule also increases the reimbursement percentage from 50 percent to 65 percent for the cost of pruning, removal, and other costs to salvage existing trees, bushes, or vines, or, in the case of mortality, to prepare the land for replanting, as mandated by OBBBA (§ 1416.406(a)(2)(i)). The reimbursement amount of 65 percent for replanting costs is not changing, and beginning and veteran farmers and ranchers, as defined in § 718.2, are still eligible for an increased reimbursement amount of 75 percent for both categories of expenses.

The regulatory amendments to implement OBBBA provisions will be effective for the 2026 and subsequent program years, including for any losses in the 2026 program year that occurred prior to the publication of this rule.

In addition to the OBBBA changes, CCC is also amending § 1416.407(a) to extend the time for participants to execute required documents and complete TAP practices from 12 months to 24 months after the application is approved, and to allow CCC to grant an extension of up to 36 months when delays are due to circumstances beyond a participant's control. These changes are intended to allow CCC to address situations where participants need additional time for reasons such as backorders or cancellations of orders of replacement trees, which often occur when suppliers are also affected by disaster events. This rule also removes unnecessary provisions in §§ 1416.400(c) and 1416.403(a) related to the loss threshold for pecan tree losses for the 2017 and 2018 calendar years.

III. Marketing Assistance Loans and Loan Deficiency Payments

Producers of eligible commodities may apply for MALs or LDPs, subject to requirements codified at 7 U.S.C. 9031 and 7 CFR part 1421. MALs are loans that typically mature within 9 months with the commodity pledged as collateral. Alternatively, a producer eligible for an MAL may elect to receive an LDP instead when the alternative repayment rate for the commodity falls below the loan rate, without requiring the commodity to be pledged as collateral. ( printed page 42320)

Section 10309 of OBBBA increased loan rates for crop years 2026 through 2031 for all commodities eligible under the MAL and LDP programs but did not otherwise change the structure of the MAL and LDP programs. Commodities included in these programs include wheat, feed grains, soybeans and other oilseeds, peanuts, pulse crops, rice, cotton, honey, wool (including unshorn pelts), and mohair.

MALs and LDPs are available beginning with harvest or shearing season for each commodity and extend through the remainder of that commodity's crop year. Nearly all MALs are nonrecourse, meaning that the commodity is used as collateral and may be delivered at maturity as full repayment of the loan. Recourse loans are available for a few commodities that are low quality, contaminated, or for which long term storage is not readily available, meaning that the collateral cannot be delivered as full repayment of the loan. MALs and LDPs must be requested on or before the final loan availability date for the commodity.

Producers may repay the MAL at a rate that is the lesser of the loan rate plus interest or at a repayment rate announced by USDA. The repayment rate is based on average market prices for the preceding 30 days or an alternative rate set by USDA. If the repayment rate is below the loan rate for that commodity, producers can redeem an MAL at the repayment rate and receive the financial benefit of the difference between the loan rate and the repayment rate, referred to as a marketing loan gain. Hence, MALs act as a price floor. This price floor ensures that producers have a guaranteed minimum price for their commodity and helps stabilize producer incomes during periods of low market prices.

As an alternative to taking an MAL, a producer may choose to receive an LDP on their crop, provided an LDP is available for the commodity, and the producer is eligible for an MAL. LDPs provide a payment when the repayment rate for a commodity is lower than its loan rate.

This rule makes technical revisions to the MAL program at 7 CFR part 1421. These revisions include clarification of the role of the Agricultural Marketing Service (AMS) in CCC activities involving Electronic Warehouse Receipts (EWR). Historically, this functionality fell under FSA until Commodity Operations roles moved to AMS in 2018. References to Grain Inspection, Packers and Stockyards Administration (GIPSA) functions were also updated to be functions of AMS. References at 7 CFR part 1421 to Designated Marketing Association (DMA) drawdown accounts for peanuts have been removed because the process to transfer loan or LDP funds to alternative delivery partners, as necessary for disbursement to producers, has been enhanced by using a direct wire process offered by the Federal Reserve Banks known as Fedwire. Parts 1421 and 1427 are amended to make clear that price support provided to producers is limited to commodities produced in the United States. Other technical corrections add clarity to the regulations.

A. Honey Nonrecourse Loans

Section 10309(b) of OBBBA extends the honey MAL and LDP programs from crop years 2026 through 2031 and increases the honey loan rate. This rule also makes minor technical corrections to the honey regulations in 7 CFR part 1434.

B. Upland and ELS Cotton

This rule updates 7 CFR part 1427 to reflect OBBBA changes for the 2026 through 2031 crop years, including higher storage rates for upland and ELS cotton, a revised formula for the prevailing world market price for upland cotton to include the 3 lowest-price quotes (rather than the use of 5 lowest-priced quotes), introduction of a prevailing world market price and adjusted world price for ELS cotton, and a formula to determine a refund amount for upland cotton loan redemptions when the adjusted world price (AWP) ^[2] declines within 30-days of the loan repayment date. This rule also makes technical clarifying changes and removes expired provisions.

1. Payment of Cotton Storage Costs

USDA does not pay for storage on non-forfeited commodities; however, for cotton, USDA credits storage (up to the maximum storage credit rate) toward the loan at redemption when the loan rate plus interest plus storage exceeds the AWP. Depending on the AWP, this can result in a partial or full storage credit. Storage payment rates are calculated as the lower of the current marketing year warehouse storage charge or the area-specific storage payment rate cap. Section 10309 of OBBBA (7 U.S.C. 9034(g)) increases storage payment rates compared to previous levels established by CCC in 2006. Effective with the 2026 cotton crop, these storage payment rates are capped at $4.90 for locations in California and Arizona, and at $3.00 for all other states. Additionally effective with the 2026 cotton crop, OBBBA eliminates the prior percentage-based reduction of 10 percent of the storage payment rate cap that was included in section 1204 of the Agricultural Act of 2014 (7 U.S.C. 9034(g)).

2. Upland Cotton Prevailing World Market Price Change

Historically, the prevailing world market price for upland cotton, referred to as the “Far East price” (FE), was based on the average of the quotations from the preceding Friday through Thursday for the 5 lowest-priced growths of Middling one and three-thirty-second inch (M 1 3/32 inch) cotton, CFR (cost and freight) Far East. Section 10310 of OBBBA changed the prevailing world market price for upland cotton to be based on the 3 lowest-priced growth quotes, effective retroactively starting from the date of OBBBA's enactment on July 4, 2025. As has been the case historically, the world market price for upland cotton, which is a benchmark for global upland cotton prices, is adjusted for quality and the estimated cost to market for U.S. producers to calculate the upland cotton AWP (repayment rate).

3. ELS Prevailing World Market Price Calculation

Historically, ELS cotton was redeemed at the loan rate plus interest with no alternative repayment rate, and a prevailing world market price and adjusted world price were not calculated. Section 10310 of OBBBA (7 U.S.C. 9034) provides that a prevailing world market price will be calculated and announced weekly in a manner similar to the process for upland cotton—using the 3 lowest-priced growth quotes adjusted for quality. The prevailing world market price (“extra long staple Far East price” or ELSFE), regardless of whether or not a quality adjustment is made, will then be adjusted for the U.S. producers' average cost to market to calculate the ELS cotton AWP used for repayments.

4. 30-Day Loan Optimization Window (LOW) for Upland Cotton

Upland cotton redemptions are to be made at the lesser of the loan rate, plus interest and other charges, or the AWP (repayment rate) as announced by CCC at 4 p.m. Eastern time each Thursday. Section 10310 of OBBBA, which amends section 1204(b) of the Agricultural Act of 2014, states that in ( printed page 42321) the event that a lower AWP is announced within the 30 calendar days immediately following the date of loan repayment, FSA will issue a refund to the producer equal to the difference between the lowest AWP during the 30-day period and the AWP in effect on the date of loan repayment. The term “producer” includes the remitter or redeemer of the marketing assistance loan. This provision ensures that if market prices drop shortly after repayment, the producer benefits from the lower price through a refund. If a producer requests an LDP in lieu of an MAL, and a lower AWP is announced during the 30-day period immediately following the request, the producer will receive an additional LDP disbursement. The additional LDP disbursement will be equal to the difference in the LDP rate used in the producer's initial LDP request and the lowest AWP during the 30-day period. The term “producer” in this case, will be the requestor of the initial LDP. Producers who elect to receive an LDP in lieu of an MAL cannot pledge the same cotton as collateral under the MAL program and therefore any LDP recipients forfeit any storage credits or other benefits associated with MAL participation.^[3] A recalculated rate may not, under any circumstances, result in an LDP for which the producer has not already submitted an approved application. This rule amends §§ 1427.19 and 1427.23.

5. Additional Changes for Cotton

In addition to implementing OBBBA changes, FSA is making some technical changes for clarity and consistency within the regulations.

This rule amends § 1427.3 to remove the definition for “cotton commercial bank” and to clarify the definitions of “upland cotton” and “ELS cotton.” ELS cotton is cotton of the Gossypium barbadense variety or any hybrid where the barbadense variety predominates. Upland cotton is any strain of the Gossypium variety or a variety that does not include the barbadense species.

Section 1427.22 is updated to include the availability of Commodity Certificate Exchanges (CCE) for ELS cotton on or before loan maturity. Under this rule, CCEs will allow a producer to redeem collateral at the prevailing world market price using a certificate exchange process that provides a market loan gain that is not subject to payment limits and AGI provisions.

This rule also makes technical corrections to §§ 1427.6, 1427.19, and 1427.23. References to “cotton commercial bank” are removed and contact information is provided for AMS's Warehouse and Commodity Management Division. References to the tariff storage rate for warehouse storage for cotton crops under loan are updated to reflect the current marketing year. The term “upland” is removed where it applies to both upland and ELS cotton. With the introduction of the ELS cotton AWP (repayment rate), storage credit applied to loan repayments when the adjusted world market price is less than the combined value of loan principal, accrued interest, and warehouse storage, are now applicable to both upland and ELS cotton.

C. Sugar Program

This rule amends the Sugar Program regulations in 7 CFR part 1435 to implement the changes in section 10312(a) of OBBBA (42 U.S.C. 7272), which extends the Sugar Program from crop year 2025 to 2031 and increased raw cane and refined beet sugar loan rates (§ 1435.101(a) and (b)). Section 10312(b)(1)(a) of OBBBA (7 U.S.C. 7287) also requires the CCC to establish storage rates for forfeited sugar in amounts not less than newly established rates (§ 1435.105(j)).

OBBBA added an exception to certain procedures that apply when reassigning beet sugar allocations following an upward adjustment in the Overall Allotment Quantity (§ 1435.303(d)). If an upward adjustment in sugar marketing allotments was made at the beginning of the fiscal year, each processor's allocation will be increased by the same percentage that the allotment increased. Section 10312(c)(2) of OBBBA (7 U.S.C. 1359cc(g)(2)) added an exception such that when adjusting beet sugar allocations priority will be given to beet sugar processors with available sugar (§ 1435.303(d)). Section 10312(c)(3) of OBBBA (7 U.S.C. 1359ee(b)(2)) also provides consistency for beet sugar processors who will need additional allocations to market their sugar supplies. Under the requirements established by OBBBA, the first reassignment of sugar marketing allocations now must be published no later than 30 days after the publication of each January's World Supply and Demand Estimates report (§ 1435.309(d)(5)).

This rule also makes technical corrections to other sugar provisions, such as clarifying that FSA, Farm Production and Conservation (FPAC), and AMS will administer the Sugar Program for the CCC (§ 1435.1(a)). This rule specifies that sugar pledged as collateral during the crop year may not be pledged as collateral in a subsequent crop year (§ 1435.102(c)(6)). Additionally, this rule provides the rates of storage to be used for crop years 2012 through 2024 that were inadvertently omitted from 7 CFR part 1435 (§ 1435.105(j)).

This rule also updates definitions related to sugar. Section 1435.2 adds a definition for the domestic sugar industry. Three definitional changes are made in § 1435.2: (1) the definition of “crop year” is updated to clarify that a crop year relates to the year in which harvest and processing of the crop begins; (2) clarifying language is added to the definition of “imports” to provide the same level of specificity used in USDA's survey for importers; and (3) a definition of “new entrant” is added because §§ 1435.305, 1435.306, and 1435.308 all relate to new entrant provisions, yet the term had not yet been defined. In addition, § 1435.200h(i) is amended to reflect specific audit terms that have been adopted over time. USDA found that the previous terms were too rigid for sugar industry reporters (who are required to report data monthly to USDA) to manage without incurring burdensome costs.

D. Feedstock Flexibility Program

Although the Feedstock Flexibility Program (FFP) was not mentioned in OBBBA, this rule also updates the regulations in Subpart G to extend FFP through crop year 2026 as authorized in the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026 (Pub. L. 119-37). FFP provides an alternative for USDA to dispose of sugar when the marketplace is oversupplied.

VI. ARC and PLC Correction

On January 12, 2026, CCC published a final rule amending the regulations for the ARC and PLC programs to conform to OBBBA provisions and make minor administrative changes and updates (91 FR 1043). In that rule, CCC revised the definition of “historically irrigated percentage” in § 1412.3 to update the applicable years; however, CCC inadvertently omitted an update to reflect that it will be calculated using both the planted and considered planted (P&CP) acreage of the commodity plus subsequently planted acreage of the commodity. Use of both P&CP and subsequently planted crop acreage provides a more accurate reflection of a farm's historical irrigation of a commodity. This rule also corrects a typographical error in the applicable ( printed page 42322) beginning year in paragraph (1) of the definition of “reference price” in § 1412.3. As specified in section 10301(b) of OBBBA, the references prices in paragraph (1) are effective beginning with the 2025 crop year.

V. DMC Correction

On January 12, 2026, CCC published a final rule amending the regulations for the DMC Program to conform to OBBBA provisions and make minor administrative changes and updates (91 FR 1043). In that rule, CCC revised § 1430.407(i) but it contained an erroneous cross-reference. That error is corrected in this rule.

VI. Severability

The modifications to ARC, PLC, DMC, ELAP, LFP, LIP, TAP, MAL, LDP, and the Sugar Program authorized by OBBBA are distinct and severable from one another, as well as from the minor administrative changes and updates to the regulations. Each provision is designed to function independently, ensuring that the rule as a whole remains effective and aligned with the agency's intent, even if certain provisions were to be invalidated.

VII. Regulatory Analyses

A. Effective Date, Notice and Comment, and Paperwork Reduction Act

As specified in 7 U.S.C. 9091(c)(2), the regulations to implement ARC, PLC, DMC, ELAP, LFP, LIP, TAP, MAL, LDP, and the Sugar Program are exempt from:

• The Paperwork Reduction Act (44 U.S.C. chapter 35), and
• The notice and comment provisions of5 U.S.C. 553.

Further, the Administrative Procedure Act (APA, 5 U.S.C. 553(a)(2)) provides that the provisions requiring notice and comment and a 30-day delay in the effective date do not apply when the rule involves specified actions, including matters relating to benefits or contracts. This rule governs payments to agricultural producers and therefore falls within the benefits exemption.

The Office of Information and Regulatory Affairs has found that this rule meets the criteria at 5 U.S.C. 804(2) of the Congressional Review Act (CRA). Ordinarily, such a finding would necessitate delaying its effective date for 60 days (5 U.S.C. 801(a)(3)(A)). However, 7 U.S.C. 9091(c)(3) directs the Secretary to use the authority provided by the CRA at 5 U.S.C. 808(2), which allows an agency to make such regulations effective immediately with good cause. USDA has determined that such good cause exists. For the reasons noted above—the APA exception at 7 U.S.C. 9091(c)(2)(B) and the applicability of 5 U.S.C. 553(a)(2)—such notice and public procedure are unnecessary for this rule. Further, this rule implements mandatory requirements of the OBBBA, and the assistance provided by this rule is necessary to help beneficiaries sustain their normal business operations. As a result, USDA finds that notice and public procedure are contrary to the public interest. Therefore, USDA is not required to delay the effective date for 60 days from the date of publication. Accordingly, this rule is effective upon publication in the Federal Register .

This rule is exempt from the regulatory analysis requirements of the Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) because it involves matters relating to benefits. The requirements for the regulatory flexibility analysis in 5 U.S.C. 603 and 604 are specifically tied to the requirement for a proposed rule by section 553 or any other law; in addition, the definition of rule in 5 U.S.C. 601 is tied to the publication of a proposed rule.

B. Executive Orders 12866, 13563, and 14192

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. Executive Order 14192, “Unleashing Prosperity Through Deregulation,” announced the Administration policy to significantly reduce the private expenditures required to comply with Federal regulations to secure America's economic prosperity and national security and the highest possible quality of life for each citizen and to alleviate unnecessary regulatory burdens placed on the American people. In line with the Executive order requirements, the Agency chose this regulatory approach, which implements mandatory provisions of the OBBBA and clarifies and simplifies program requirements, to maximize benefits and minimize burden on American producers. This rule is not an Executive Order 14192 regulatory action because it does not impose any more than de minimis regulatory costs.

The Office of Management and Budget (OMB) designated this rule as economically significant under Executive Order 12866, section 3(f)(1), and therefore, OMB has reviewed this rule. The costs and benefits of this rule are summarized below. The full CBA is available on regulations.gov.

C. Cost Benefit Analysis Summary

The program changes in this rule are, except in the case of MALs and LDPs, largely independent of one another and, generally, affect payment parameters or expand the situations that are now eligible for payment.

• Supplemental Disaster Assistance —CCC is making numerous changes to the supplemental disaster assistance programs, which encompass ELAP, LFP, LIP, and TAP. Examples of OBBBA-driven changes include setting a fixed mortality rate for honeybees for ELAP and increasing the timeliness and amount of LFP payments. By far, the largest increase in projected outlays within this category is due to the LFP changes, which are estimated at $343 million annually. For the other disaster programs combined, the annual increase is $39 million, bringing the total for this category to $382 million annually.
• MALs and LDPs —The major driver increasing MALs and LDPs is the OBBBA increase in marketing assistance loan rates. In addition, OBBBA mandates certain changes to the cotton and sugar programs. The intertwined nature of the OBBBA changes (including for cotton and sugar) is analyzed in a composite fashion and the aggregate estimate (taking into account the intertwined nature of the changes) results in a projected outlay increase of $545 million annually. The cotton and sugar changes are embedded within this estimate.

The total cost of these changes is estimated at $927 million ($382 million + $545 million) annually.

D. Environmental Review

The environmental impacts have been considered in a manner consistent with the provisions of the National Environmental Policy Act (NEPA, 42 U.S.C. 4321-4347) and the USDA regulation for compliance with NEPA (7 CFR part 1b).

This rule implements primarily mandatory changes to the ELAP, LFP, LIP, TAP, MAL, LDP, and Sugar Program provisions that are required by the OBBBA, with limited discretionary aspects that do not have the potential to impact the human environment as they are administrative. Accordingly, these ( printed page 42323) discretionary aspects are covered by the FSA Categorical Exclusions specified in 7 CFR 1b.4(c)(16)(ix) that applies to safety net programs and § 1b.(c)(16)(vii) that applies to price support programs.

No Extraordinary Circumstances (§  1b.3(f)) exist because these are administrative payment programs. As such, the implementation of and participation in the ELAP, LFP, LIP, TAP, MAL, LDP, and Sugar Program do not constitute major Federal actions that would significantly affect the quality of the human environment, individually or cumulatively. Therefore, FSA will not prepare an environmental assessment or environmental impact statement for this action and, consistent with §  1b.3(g), this document serves as the programmatic finding of applicability and no extraordinary circumstance (FANEC) for this Federal action.

E. Executive Order 13175

This rule has been reviewed in accordance with the requirements of Executive Order 13175, “Consultation and Coordination with Indian Tribal Governments.” Executive Order 13175 requires Federal agencies to consult and coordinate with Tribes on a Government-to-Government basis on policies that have Tribal implications, including regulations, legislative comments or proposed legislation, and other policy statements or actions that have substantial direct effects on one or more Indian Tribes, on the relationship between the Federal Government and Indian Tribes, or on the distribution of power and responsibilities between the Federal Government and Indian Tribes.

USDA has assessed the impact of this rule on Indian Tribes and determined that this rule does not, to our knowledge, have Tribal implications that required Tribal consultation at this time. If a Tribe requests consultation, the USDA Farm Service Agency will work with the FSA Federal Preservation Officer, who will engage the Office of Tribal Relations as needed, to ensure meaningful consultation is provided.

F. Unfunded Mandates Reform Act

Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L. 104-4) requires Federal agencies to assess the effects of their regulatory actions on State, local, and Tribal governments, or the private sector. Agencies generally must prepare a written statement, including cost benefit analysis, for proposed and final rules with Federal mandates that may result in expenditures of $100 million or more in any 1 year for State, local, or Tribal governments, in the aggregate, or to the private sector. UMRA generally requires agencies to consider alternatives and adopt the more cost effective or least burdensome alternative that achieves the objectives of the rule. This rule contains no Federal mandates, as defined in Title II of UMRA, for State, local, and Tribal governments or the private sector. Therefore, this rule is not subject to the requirements of sections 202 and 205 of UMRA.

G. E-Government Act Compliance

FSA is committed to complying with the E-Government Act of 2002, to promote the use of the internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other purposes.

Federal Assistance Programs

The titles and numbers of the Federal assistance programs, as found in the Assistance Listing, to which this document applies are 10.112—Price Loss Coverage, 10.113—Agriculture Risk Coverage, 10.127—Dairy Margin Coverage, 10.051—Commodity Loans and Loan Deficiency Payments, 10.088—Livestock Indemnity Program, 10.089—Livestock Forage Disaster Program, 10.091—Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program, and 10.092—Tree Assistance Program.

For the reasons discussed above, CCC amends the regulations in 7 CFR parts 1412, 1416, 1421, 1427, 1430, 1434, and 1435 as follows: