[Federal Register Volume 59, Number 85 (Wednesday, May 4, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10619]


  Federal Register / Vol. 59, No. 85 / Wednesday, May 4, 1994 /
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[[Page Unknown]]

[Federal Register: May 4, 1994]


                                                    VOL. 59, NO. 85

                                             Wednesday, May 4, 1994

 

DEPARTMENT OF AGRICULTURE

Farmers Home Administration

7 CFR Parts 1941, 1943, and 1945

RIN 0575-AB30

Final Implementation of Appraisal of Farms and Leasehold Interests

AGENCY: Farmers Home Administration, USDA.

ACTION: Final rule.

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SUMMARY: The Farmers Home Administration (FmHA) amends its farm tract 
appraisal regulations in order to implement and conform to the 
provisions of the Financial Institutions Reform, Recovery, and 
Enforcement Act (FIRREA) of 1989. The intended effect of this rule is 
to meet the provisions of title XI of FIRREA and the Uniform Standards 
of Professional Appraisal Practice (USPAP) as directed from the Office 
of Management and Budget (OMB Bulletin A-129).

EFFECTIVE DATE: May 4, 1994.

FOR FURTHER INFORMATION CONTACT: Ronald T. Thelen, Senior Loan Officer, 
Program Development Staff, USDA, FmHA, room 4918-S, South Building, 
Washington, DC 20250, telephone: (202) 720-0830.

SUPPLEMENTARY INFORMATION:

Classification

    We are issuing this final rule in conformance with Executive Order 
12866, and we have determined that it is not a ``significant regulatory 
action.'' Based on information compiled by the Department, we have 
determined that this final rule: (1) Would have an effect on the 
economy of less than $100 million; (2) would not adversely affect in a 
material way the economy, a sector of the economy, productivity, 
competition, jobs, the environment, public health or safety, or State, 
local, or tribal governments or communities; (3) would not create a 
serious inconsistency or otherwise interfere with an action taken or 
planned by another agency; (4) would not alter the budgetary impact of 
entitlements, grants, user fees, or loan programs or rights and 
obligations or recipients thereof; and (5) would not raise novel legal 
or policy issues arising out of legal mandates, the President's 
priorities, or principles set forth in Executive Order 12866.

Intergovernmental Consultation

    For the reasons set forth in the final rule related to Notice, 7 
CFR part 3015, subpart V (48 FR 29115, June 24, 1983), this program/
activity is excluded from the scope of Executive Order 12372, which 
requires intergovernmental consultation with State and local officials.

Programs Affected

    This program/activity affects the following FmHA programs as listed 
in the Catalog of Federal Domestic Assistance:

10.406--Farm Operating Loans,
10.407--Farm Ownership Loans, and
10.416--Soil and Water Loans.

Environmental Impact Statement

    This document has been reviewed in accordance with 7 CFR part 1940, 
subpart G, ``Environmental Program.'' It is the determination of FmHA 
that this action does not constitute a major Federal action 
significantly affecting the quality of the human environment, and in 
accordance with the National Environmental Policy Act of 1969, Public 
Law 91-190, an Environmental Impact Statement is not required.

Discussion of Final Rule

    On August 25, 1993, FmHA published an interim rule which removed 7 
CFR part 1809, subpart A, ``Appraisal of Farms and Leasehold 
Interests,'' from the Federal Register. It also did the following: (1) 
Revised and renumbered part 1809 to FmHA Instruction 1922, subpart E--
``Appraisal of Farms and Leasehold Interests.''; (2) Issued revised 
Sec. 1922.201 ``General'' (old Sec. 1809.1 ``General'') and (3) Issued 
new Sec. 1922.209 ``Easements and appraising property subject to 
easements.''
    Other Secs. 1809.2 through 1809.8 of subpart A were amended to meet 
USPAP and placed in Secs. 1922.202 through 1922.208 of FmHA Instruction 
1922-E. Sections 1922.202 through 1922.208 were not published in the 
Federal Register because they involve internal Agency management.
    These changes were implemented upon publication in the Federal 
Register in order to provide immediate guidance to FmHA designated farm 
real estate appraisers and FmHA contract farm real estate appraisers 
concerning the use of the uniform standards as set out in Sections I, 
II and III of USPAP. This action was necessary because most States 
enacted legislation and implemented FIRREA on January 1, 1993, and 
required farm real estate appraisers to follow uniform appraisal 
standards or Sections I, II and III of USPAP. Further delays by FmHA 
would have had an adverse impact on FmHA borrowers and loan applicants 
due to delays which may have resulted from the continued use of 
outdated farm appraisal techniques and methods.
    The comment period ended September 24, 1993. No comments were 
received. Accordingly, no substantive change is made from the interim 
rule. Minor editorial changes of an administrative nature have been 
made. Inadvertently, a few FmHA Instructions were overlooked when 
revising references from FmHA Instruction 422.1 to FmHA Instruction 
1922-E.

List of Subjects in 7 CFR Parts 1941, 1943, and 1945

    Agriculture, Credit, Crops, Disaster assistance, Livestock, Loan 
programs-- agriculture, Recreation, Real property--appraisals, Rural 
areas, Water resources, Youth.

    Therefore, Chapter XVIII, title 7, Code of Federal Regulations is 
amended as follows:

PARTS 1941, 1943, 1945--[AMENDED]

    1. The authority citations for parts 1941, 1943, 1945 continue to 
read as follows:

    Authority: 7 U.S.C. 1989; 5 U.S.C. 301; 7 CFR 2.23 and 2.70.
    Authority: 7 U.S.C. 1989; 42 U.S.C. 1480; 5 U.S.C. 301; 7 CFR 
2.23; 7 CFR 2.70.

CHAPTER XVIII--[AMENDED]

    2. 7 CFR Chapter XVIII is amended by revising the reference ``FmHA 
Instruction 422.1'' to read ``FmHA Instruction 1922-E'' in the 
following places:
    a. Sec. 1941.19 (b)(2).
    b. Sec. 1943.19 (b)(1).
    c. Sec. 1943.69 (b)(1).
    d. Sec. 1945.169 (b)(1).

    Dated: February 1, 1994.
Bob Nash,
Under Secretary for Small Community and Rural Development.
[FR Doc. 94-10619 Filed 5-3-94; 8:45 am]
BILLING CODE 3410-07-U