[Federal Register Volume 88, Number 148 (Thursday, August 3, 2023)]
[Notices]
[Pages 51260-51265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-16489]


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DEPARTMENT OF AGRICULTURE

Farm Service Agency

[Docket ID FSA-2023-0005]


Application Fast Track Pilot Program

AGENCY: Farm Service Agency, USDA.

ACTION: Notice.

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SUMMARY: The Farm Service Agency (FSA) is announcing a pilot program 
called ``Application Fast Track'' that will expedite the processing of 
direct Operating Loans (OL) and Farm Ownership Loans (FO) to family 
farmers and ranchers if qualified. The Application Fast Track Pilot 
Program (AFT) provides an alternative underwriting process for 
applicants that meet certain financial benchmarks. AFT will be 
available in selected pilot office locations beginning August 7, 2023, 
and will be available in all locations nationwide beginning January 1, 
2024. AFT will run through September 30, 2024. The Consolidated Farm 
and Rural Development Act (CONACT) authorizes pilot projects of limited 
scope and duration to evaluate processes and techniques to improve 
program efficiency and effectiveness.

DATES: Comment due date: We will consider comments on the AFT as 
described in this notice that we receive by: October 2, 2023.

ADDRESSES: You may submit comments, identified by FSA docket number 
FSA-2023-0005 by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: AFT Comments--Deputy Administrator for Farm Loan 
Programs, Farm Service Agency, 1400 Independence Ave. SW, Stop 0522, 
Room 3605, Washington, DC 20250-0522.
     Hand Delivery/Courier: Houston Bruck, Assistant to the 
Deputy Administrator for Farm Loan Programs, Farm Service Agency, 1400 
Independence Ave. SW, Stop 0522, Room 3605, Washington, DC 20250-0522.
    FSA will post all comments on http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Houston Bruck; telephone: (202) 650-
7874; or by email: [email protected]. Individuals who require 
alternative means for communication should contact the USDA TARGET 
Center at (202) 720-2600 (voice and text telephone (TTY)) or dial 711 
for Telecommunications Relay service (both voice and text telephone 
users can initiate this call from any telephone).

[[Page 51261]]


SUPPLEMENTARY INFORMATION:

Background

    FSA makes and services a variety of direct and guaranteed loans to 
farmers who are temporarily unable to obtain private commercial credit. 
FSA also provides direct loan borrowers with credit counseling and 
supervision, so they have a better chance for success. FSA loan 
applicants are often Beginning Farmers (BF), some of whom do not 
qualify for commercial loans because of insufficient net worth, or 
established farmers who have suffered financial setbacks due to natural 
disasters or economic downturns. FSA loans are intended to be tailored 
to the specific needs of an applicant and may be used for a variety of 
purposes including the financing of agricultural production and to 
purchase livestock, equipment, and farmland. FSA staff are statutorily 
required to evaluate the farm operating plan and financial situation of 
each applicant. The farm operating plan assesses various aspects of the 
operation, including the financial viability of each operation 
requesting loan assistance.
    FSA underwriting processes require a thorough evaluation of each 
farm operating plan to ensure eligibility, security and feasibility 
criteria are satisfied, and loan applications are required to be 
processed within 60 days of receipt of a complete application. 
Completing a feasibility evaluation based on an applicant's cash flow 
budget is often a time-consuming undertaking that adds significant time 
to the processing of a loan application. Additionally, the CONACT (Pub. 
L. 92-419; 7 U.S.C. 1921-2009cc-18) requires FSA loan underwriting to 
be completed in a manner similar to commercial lending methods. FSA 
policy has historically provided for the completion of an in-depth cash 
flow evaluation for all applicants. An extensive manual underwriting 
process is often appropriate, as FSA borrowers frequently are at an 
elevated level of financial risk, which resulted in the inability to 
obtain commercial credit at reasonable rates and terms. However, 
commercial lenders increasingly rely on data analytics to develop 
alternative underwriting methods to streamline the financial viability 
evaluation of certain operations while minimizing the risk of loan 
default.
    To capture loan making efficiencies that result from innovative 
underwriting methods that rely on data analytics, FSA has developed and 
is piloting an alternative method of evaluating financial viability 
designed specifically to address the unique characteristics of the FSA 
loan portfolio and satisfy the unique goals and requirements of the 
Farm Loan Programs. This innovative process is referred to as AFT, and 
is modeled after similar scoring tools that have been successfully used 
by commercial lenders for many years. To continue effective stewardship 
of taxpayer resources, the AFT underwriting process is designed to 
improve processing times while ensuring portfolio performance and loan 
default rates remain constant. To achieve this outcome, applicants who 
meet certain financial benchmarking criteria will be qualified for an 
expedited underwriting evaluation available through AFT.
    Using the actual portfolio performance data of over 100,000 direct 
loans, FSA analyzed hundreds of potential variables to identify 
commonalities of loans with strong repayment history. The analysis 
identified several financial variables and minimum thresholds that are 
statistically reliable indicators of whether or not a debt will be 
repaid according to the terms of the loan. The identified benchmark 
variables were modeled with optimized ranges and weights and used to 
develop a scoring tool that can identify with over 92 percent accuracy 
the probability of successful loan repayment for approximately a 
quarter of all applications. Importantly, the AFT scoring tool does not 
rely on projected cash flow budget data, which provides the opportunity 
for the AFT scoring tool to be an alternative method for FSA to 
reliably evaluate an applicant's financial viability and likelihood of 
repayment. For those customers who meet the minimum scoring threshold, 
FSA is provided with adequate assurance of an applicant's ability to 
successfully repay the FSA loan. Accordingly, FSA staff will not have 
to rely on traditional underwriting evaluation methods that require 
time-consuming income and expense validation of a projected cash flow 
budget. The AFT underwriting process is estimated to improve 
application processing timeframes by more than a week for those 
estimated 25 percent of customers who qualify for AFT under these AFT 
benchmarks, which under full implementation would translate to a 
projected annual time savings of 70,000 staff hours nationwide. This 
time savings will allow existing staffing resources to better assist 
all other applicants timelier.
    As AFT is a pilot program to evaluate the administrative 
effectiveness of this new process, FSA has identified a limited number 
of targeted USDA service centers for participation in the initial 
implementation of the pilot beginning August 7, 2023 (see Initial Pilot 
Locations section below). Limiting the number of initial pilot 
locations will allow for a control group where AFT is not implemented, 
enabling accurate and actionable analysis of data collected on the AFT 
process. FSA will evaluate the time savings, number of producers 
qualifying, and user functionality of the AFT process in the initial 
pilot offices. If the anticipated benefits are realized, AFT will be 
implemented to all USDA service centers nationwide beginning January 1, 
2024. Expanding the number of pilot locations will enable FSA to 
further evaluate the effectiveness of AFT when the scope of AFT is 
limited to a pilot program benchmark of 25 percent of applicants. If 
anticipated benefits are not realized, FSA will modify or terminate AFT 
through a subsequent notice in the Federal Register prior to January 1, 
2024.
    The authority to conduct AFT is provided in section 333D of the 
CONACT (7 U.S.C. 1983d), which authorizes pilot projects of limited 
scope and duration to evaluate processes and techniques to improve 
program efficiency and effectiveness.

AFT

    AFT will expedite the processing of direct OLs and FOs to qualified 
family farmers and ranchers by providing an alternative underwriting 
process for applicants that meet certain financial benchmarks. While 
application submission, eligibility, and security requirements are 
unaffected by AFT, the feasibility evaluation for each loan application 
will be improved. Specifically, an initial feasibility assessment of 
each loan application will be conducted based on financial 
benchmarking. Applications that satisfy certain benchmark thresholds 
will be determined to meet the AFT standards and will not be subject to 
the traditional feasibility evaluation. If a loan application does not 
satisfy the AFT benchmarking criteria, additional feasibility 
evaluation will be completed on the loan application in accordance with 
existing loan making regulations. AFT will be effective August 7, 2023, 
and will continue through September 30, 2024.

Initial Pilot Locations

    To adequately evaluate the effectiveness of the AFT underwriting 
method, FSA has targeted USDA service centers from each state and 
Puerto Rico as initial pilot locations for AFT. FSA coordinated with 
the National Agricultural Statistics Service (NASS) to

[[Page 51262]]

identify 150 initial pilot locations that provide a statistically 
relevant random sample of all FSA service centers with 16 additional 
offices selected by FSA to facilitate specific state-level input on the 
effectiveness of the AFT processes. FSA will closely monitor the 
implementation of AFT in the initial pilot locations to validate the 
anticipated efficiencies and identify areas for improvement. Applicants 
whose standard county code falls within the jurisdiction of one of the 
identified 166 initial pilot locations will be considered for AFT 
beginning August 7, 2024. Beginning January 1, 2024, AFT will be 
implemented in all USDA service centers nationwide unless the projected 
AFT benefits are not realized, in which case FSA will modify or 
terminate the AFT through a subsequent notice prior to January 1, 2024. 
The following FSA county service centers are identified as initial 
pilot locations:

------------------------------------------------------------------------
                   State                        County service center
------------------------------------------------------------------------
Alabama...................................  Elmore
Alabama...................................  Tuscaloosa
Alaska....................................  Palmer
Arizona...................................  Pinal
Arkansas..................................  Boone
Arkansas..................................  Lincoln
Arkansas..................................  Sevier
Arkansas..................................  Sharp
Arkansas..................................  Cross
California................................  Fresno
California................................  San Joaquin
California................................  Santa Barbara
California................................  Siskiyou
California................................  Monterey
Colorado..................................  Alamosa
Connecticut...............................  Norwich
Delaware..................................  Sussex
Florida...................................  Holmes
Florida...................................  Miami-Dade
Georgia...................................  Coffee
Georgia...................................  Dodge
Georgia...................................  Terrell
Hawaii....................................  American Samoa
Hawaii....................................  Honolulu
Idaho.....................................  Minidoka
Idaho.....................................  Nezperce
Illinois..................................  Champaign
Illinois..................................  Jersey
Illinois..................................  Johnson
Illinois..................................  Livingston
Illinois..................................  Macoupin
Indiana...................................  Grant
Indiana...................................  Jasper
Indiana...................................  Parke
Iowa......................................  Buchanan
Iowa......................................  Cerro Gordo
Iowa......................................  Guthrie
Iowa......................................  Hardin
Iowa......................................  Ida
Iowa......................................  Palo Alto
Iowa......................................  Pocahontas
Iowa......................................  Sioux
Iowa......................................  Tama
Iowa......................................  Van Buren
Kansas....................................  Lyon
Kansas....................................  Pratt
Kansas....................................  Russell
Kansas....................................  Sherman
Kansas....................................  Stevens
Kansas....................................  Sumner
Kentucky..................................  Adair
Kentucky..................................  Harrison
Kentucky..................................  Logan
Kentucky..................................  Montgomery
Kentucky..................................  Warren
Louisiana.................................  Acadia
Louisiana.................................  Avoyelles
Louisiana.................................  Jefferson Davis
Louisiana.................................  St Landry
Maine.....................................  Kennebec
Maryland..................................  Caroline
Michigan..................................  Grand Traverse
Michigan..................................  Huron
Michigan..................................  Isabella
Michigan..................................  Mecosta
Michigan..................................  Ottawa
Michigan..................................  Hillsdale
Minnesota.................................  Blue Earth
Minnesota.................................  Fillmore
Minnesota.................................  Morrison
Minnesota.................................  Olmsted
Minnesota.................................  Roseau
Minnesota.................................  West Ottertail
Mississippi...............................  Forrest
Mississippi...............................  Jones
Mississippi...............................  Neshoba
Mississippi...............................  Pike
Mississippi...............................  Warren
Missouri..................................  Carroll
Missouri..................................  Dunklin
Missouri..................................  Grundy
Missouri..................................  Harrison
Missouri..................................  Pettis
Missouri..................................  Polk
Montana...................................  Glacier
Montana...................................  Yellowstone
Nebraska..................................  Cedar
Nebraska..................................  Cherry
Nebraska..................................  Hall
Nebraska..................................  Otoe
Nebraska..................................  Platte
Nebraska..................................  Scotts Bluff
Nebraska..................................  Butler
Nevada....................................  Fallon
New Jersey................................  Cumberland
New Mexico................................  Curry
New Mexico................................  Dona Ana
New York..................................  Genesee
New York..................................  Steuben
North Carolina............................  Craven
North Carolina............................  Wilkes
North Dakota..............................  Bottineau
North Dakota..............................  Cass
North Dakota..............................  Emmons
North Dakota..............................  Ramsey
North Dakota..............................  Traill
North Dakota..............................  Sioux
Ohio......................................  Defiance
Ohio......................................  Logan
Ohio......................................  Preble
Ohio......................................  Tuscarawas
Oklahoma..................................  Choctaw
Oklahoma..................................  Craig
Oklahoma..................................  Harmon
Oklahoma..................................  Johnston
Oklahoma..................................  Leflore
Oklahoma..................................  Nowata
Oregon....................................  Baker
Oregon....................................  Douglas
Oregon....................................  Klamath
Oregon....................................  Umatilla
Oregon....................................  Wasco
Pennsylvania..............................  Huntingdon
Pennsylvania..............................  Mercer
Pennsylvania..............................  Somerset
Pennsylvania..............................  Tioga
Puerto Rico...............................  Lares
Puerto Rico...............................  Ponce
South Carolina............................  Florence
South Dakota..............................  Brown
South Dakota..............................  Brule
South Dakota..............................  Charles Mix
South Dakota..............................  Haakon
South Dakota..............................  Potter
South Dakota..............................  Tripp
Tennessee.................................  Carroll
Tennessee.................................  Dickson
Texas.....................................  Donley
Texas.....................................  Guadalupe
Texas.....................................  Haskell
Texas.....................................  Hidalgo
Texas.....................................  Hopkins
Texas.....................................  Ochiltree
Texas.....................................  Parmer
Texas.....................................  Pecos
Texas.....................................  Swisher
Utah......................................  Emery
Utah......................................  Millard
Utah......................................  Sevier
Utah......................................  Summit
Utah......................................  Utah
Vermont...................................  Addison
Virginia..................................  Accomack
Virginia..................................  Fredericksburg
Virginia..................................  Pittsylvania
Washington................................  Grant
Washington................................  Okanogan
Washington................................  Spokane
West Virginia.............................  White Hall
West Virginia.............................  Grant
West Virginia.............................  Harrison
West Virginia.............................  Roane
Wisconsin.................................  Clark
Wisconsin.................................  Fond Du Lac
Wisconsin.................................  Trempealeau
Wyoming...................................  Park
------------------------------------------------------------------------

Application Process

    All direct OL and FO applicants will be considered for AFT, except 
for applicants requesting Youth Loans or loan servicing.
    There is no need for customers to apply for AFT, as applicants in 
selected pilot locations will be evaluated for AFT using the 
traditional Farm Loan Programs application materials. Therefore, AFT 
will use the standard Farm Loan Programs application criteria described 
throughout 7 CFR parts 761 and 764.
    Applications that satisfy the AFT standards do not ultimately 
depend on FSA validation of cash flow budgets to determine feasibility; 
however, each applicant is still required to complete a cash flow 
budget as a part of their business plan, regardless of whether or not 
the applicant satisfies the AFT standards. Creation of realistic cash 
flow budgets remains an important component of successful business

[[Page 51263]]

planning, but those applications meeting the AFT standards will undergo 
formal loan evaluation of repayment ability and farm operating plan 
viability through the alternative AFT process. Furthermore, only 25 
percent of applications are anticipated to qualify for AFT, which means 
the majority of loan applications will still require thorough 
evaluation of cash flow budgets by FSA staff as part of the standard 
underwriting process.

AFT Evaluation

    Upon receipt of a complete application, FSA staff will load 
application data into its underwriting platform. Once loaded, the AFT 
scoring tool developed in the underwriting platform will be used by 
loan staff to evaluate a consistent set of selected financial variables 
for each application. To avoid potential manipulation of financial 
data, the ranges and weights of each benchmarked variable are 
maintained solely by select FSA headquarters development staff. The 
variables evaluated are optimized to identify applications with a 
reduced probability of default based on the analysis of the historic 
Farm Loan Programs portfolio data. The variables assessed in AFT 
consist only of validated data from financial statements submitted by 
the applicant to FSA and an applicant's repayment history.
    The scoring tool evaluates the selected financial variables against 
the pre-determined benchmark ranges and determines if the applicant 
meets the minimum scoring threshold to qualify for the AFT underwriting 
process. If the applicant meets the AFT standards, a modified 
feasibility evaluation will be conducted by FSA staff as described in 
the Feasibility Evaluation section. Alternatively, applicants who do 
not qualify for the AFT process will continue to have their application 
processed consistent with the traditional underwriting and feasibility 
evaluation processes that require cash flow budget validation.
    It is emphasized that the inability to qualify for the AFT process 
will never result in a loan application being denied. Instead of a 
potential expedited AFT feasibility evaluation, the applications that 
do not meet the AFT scoring threshold will undergo the routine 
evaluation and underwriting process currently in effect. AFT is 
designed to complement existing underwriting methods and is being used 
to create an efficiency in direct loan processing for the entire 
portfolio.
    Also, applicants who meet the AFT standards will not receive an 
automatic loan approval, as other criteria, including eligibility and 
security provisions, still need to be satisfied.

General Eligibility Evaluation

    General eligibility requirements are unchanged for loans processed 
under AFT. FSA staff will still be required to evaluate the ability of 
an applicant to obtain credit at reasonable rates and terms from 
commercial credit sources. For those applications qualified to be 
processed under AFT, test for other credit eligibility will need to be 
based on factors other than projected cash flow budget data. This may 
include, but is not limited to, an analysis of area lender standards, 
an applicant's historic performance and current financial statements.

Feasibility Evaluation

    Applicants who qualify for AFT will undergo a modified feasibility 
evaluation by FSA staff. FSA staff will assess the applicant's 
financial strengths and viability in the farm assessment based on the 
selected AFT financial variables. For AFT-qualifying applicants, FSA 
staff will not take additional steps to validate the income and expense 
projections as is typically completed per established regulation.

Security

    AFT will not change existing security requirements for loans.

Loan Requirements, Amounts, Rates, Terms, Conditions, and Regulatory 
Waivers

    The loan making requirements, amounts, terms, and conditions of the 
loans processed under AFT are the same as standard Farm Loan Programs 
loans with the following exceptions to existing processes and 
regulatory requirements which otherwise apply to loans authorized under 
subtitle A, B, and C of the CONACT:
    (1) An AFT applicant must provide a farm operating plan that is 
accurate and verifiable, which will be evaluated by FSA to assess 
compliance with loan requirements and to determine loan terms. The 
regulations in 7 CFR 761.103(b)(6) and (7), 7 CFR 761.103(c)(2) and 
(4), and 7 CFR 761.104(c), (d), (e), (f) and (g), which provide 
guidance on income, expense, yield, and price planning to create 
accurate and verifiable cash flow budgets for farm operating plans, are 
waived only to the extent these regulations require FSA to verify the 
accuracy of a cash flow budget, because FSA will not verify the 
accuracy of cash flow budget projections for applicants participating 
in AFT due to sufficient assurances of plan feasibility from the AFT 
benchmarking financial review process;
    (2) While the farm operating plan will be evaluated by FSA, its 
cash flow evaluation will not be the basis for feasibility 
determinations for applicants participating in AFT. The AFT evaluation 
itself reflects the applicant's ability to successfully repay the loan. 
The requirements in 7 CFR 764.401(a)(1)(i) and (b)(1) are waived to the 
extent the regulation requires FSA to validate the farm operating plan 
cash flow budget;
    (3) All regular FOs under AFT will have a 40-year equally amortized 
repayment term while all Microloan FOs under AFT will have a 25-year 
term, and all Down Payment FOs will have a 20-year term, 
notwithstanding that FO repayment terms will not exceed the useful life 
of security. A reduced repayment term must be requested by the 
applicant in writing. A consistent repayment term is necessary because 
AFT does not require a validated cash flow operating plan, which would 
be necessary to determine the ability of the applicant to accommodate 
alternate repayment terms. The requirements in 7 CFR 764.154(b) and 
(b)(1) are waived to the extent the regulation requires FO loan 
repayment terms to be based on the applicant's ability to repay;
    (4) All OLs under AFT other than annual OLs will have a 7-year 
equally amortized repayment term. OL repayment terms for purposes other 
than annual operating expenses will be equal to the useful life of 
security or 7 years, whichever is less. A reduced repayment term must 
be requested by the applicant in writing. A consistent repayment term 
is necessary because AFT does not require a validated cash flow 
operating plan, which would be necessary to determine the ability of 
the applicant to accommodate alternate repayment terms. The requirement 
in 7 CFR 764.254(b)(2) is waived to the extent the regulation provides 
for alternative OL repayment terms;
    (5) Repayment installments will be equally amortized over the life 
of the loan and are not eligible for unequal installments including 
interest only or balloon payments. A consistent repayment term is 
necessary because AFT does not require a validated cash flow operating 
plan, which would be necessary to determine the ability of the 
applicant to accommodate alternate repayment terms;
    (6) Approved AFT applications are not eligible to be considered for 
limited resource rates because AFT does not require a validated cash 
flow operating plan, which would be necessary to

[[Page 51264]]

determine the potential need for limited resource rates. Instead, the 
standard cost of money interest rate will be used for AFT applicants. 
The requirements in 7 CFR 764.154(a)(2) and 764.254(a)(2) are waived to 
the extent the regulations allow FSA to provide a limited resource 
interest rate to applicants who are unable to develop a feasible plan;
    (7) FSA must ensure the maximum loan limits in 7 CFR 761.8 are not 
exceeded at the time of loan closing. However, 7 CFR 761.8(a) is waived 
to the extent the regulation requires an evaluation of a cash flow 
budget to make that assessment at closing;
    (8) The OL amount for AFT loans for annual operating expense 
purposes are subject to existing maximum loan limits and will not 
exceed both:
    a. 75 percent of the Gross Farm Income reported on the most recent 
available Tax Return; and
    b. the total Gross Farm Income in the projected cash flow budget 
submitted by the applicant as part of the loan application.
    The requirement in 7 CFR 764.107(b)(1), which establishes the 
security value of annual crop production as equal to the annual OL 
amount developed as part of the farm operating plan cash flow budget, 
is waived to the extent inconsistent with part A and B of this 
exception because AFT does not require a validated cash flow operating 
plan, which would be necessary to validate the value of annual crop 
production;
    (9) An applicant who qualifies and has their loan approved through 
AFT will be granted a waiver of borrower training requirements as they 
have demonstrated sufficient management ability to qualify for the 
waiver as reflected by the financial strength of their operations that 
qualified those applicants for AFT. The requirements in 7 CFR 
764.453(a) and (b) are waived to the extent the regulation sets other 
conditions for a borrower to receive a waiver of borrower training 
requirements; and
    (10) To be consistent with existing regulations, FSA must complete 
a Year-end analysis when a borrower is being considered for a new loan. 
However, the requirement in 7 CFR 765.105(b) is waived to the extent 
the regulation requires an evaluation of a cash flow budget to complete 
that analysis.
    All provisions of the CONACT applicable to the Farm Loan Programs 
apply to loans made under AFT. Unless waived or adjusted by this 
document, all regulatory requirements applicable to the Farm Loan 
Programs apply to loans made under AFT. All standard operating 
procedures applicable to the Farm Loan Programs that are not superseded 
by any provision of this document apply to loans made under AFT.

Approval Notification and Loan Closing

    As the application process for customers remains the same 
regardless of whether or not they qualify for AFT, the first time an 
applicant will be officially notified that their application was 
processed using the AFT method will be at the time of loan approval. 
Specifically, a customer will be informed on Part C of form FSA-2313 
``Notification of Loan Approval and Borrower Responsibilities'' that 
their loan application was approved using the AFT process. The 
applicant will be required to acknowledge their application was 
approved using the AFT underwriting evaluation and concur that they 
wish to proceed with loan closing. The applicant will also be given the 
opportunity to not accept the loan approval conditions and request a 
meeting with FSA to discuss any concerns. If the applicant requests a 
traditional underwriting evaluation be completed, FSA will reevaluate 
the application and make an updated final disposition. If the loan 
application is approved using traditional underwriting evaluation, a 
new form FSA-2313 will be issued. If the application is not approved 
using traditional underwriting evaluation, FSA will issue a written 
denial letter with appeal rights.

Loan Servicing

    Loan servicing requirements are unchanged for loans processed under 
AFT.

Contact Information

    Questions on AFT may be directed to the Farm Loan Programs staff in 
the local FSA county office. The local FSA county office may be found 
at http://www.farmers.gov/working-with-us/USDA-service-centers.

Paperwork Reduction Act Requirements

    In accordance with the provisions of the Paperwork Reduction Act of 
1995 (44 U.S.C. chapter 35), there are no changes the information 
collection approved by OMB under control numbers 0560-0236 and 0560-
0237.

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), the regulations of the Council on 
Environmental Quality (40 CFR parts 1500-1508), and the FSA regulations 
for compliance with NEPA (7 CFR part 799).
    The purpose of AFT is to improve internal underwriting processes to 
expedite Farm Loan Programs application processing. The limited 
discretionary aspects of AFT do not have the potential to impact the 
human environment as they are administrative. Accordingly, these 
discretionary aspects are covered by the categorical exclusions in 7 
CFR 799.31(b)(3)(i) that applies to Farm Loan Programs, provided no 
extraordinary circumstances are found to exist. As such, the 
implementation of AFT and the participation in AFT 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 this document serves as documentation of 
the programmatic environmental compliance decision for this federal 
action.

Federal Assistance Programs

    The title and number of the Federal assistance programs, as found 
in the Assistance Listing, to which this document applies is 10.406 
Farm Operating Loans and 10.407 Farm Ownership Loans.

USDA Non-Discrimination Policy

    In accordance with Federal civil rights law and USDA civil rights 
regulations and policies, USDA, its Agencies, offices, and employees, 
and institutions participating in or administering USDA programs are 
prohibited from discriminating based on race, color, national origin, 
religion, sex, gender identity (including gender expression), sexual 
orientation, disability, age, marital status, family or parental 
status, income derived from a public assistance program, political 
beliefs, or reprisal or retaliation for prior civil rights activity, in 
any program or activity conducted or funded by USDA (not all bases 
apply to all programs). Remedies and complaint filing deadlines vary by 
program or incident.
    Individuals who require alternative means of communication for 
program information (for example, braille, large print, audiotape, 
American Sign Language, etc.) should contact the responsible Agency or 
USDA TARGET Center at (202) 720-2600 (voice and text telephone (TTY) or 
dial 711 for Telecommunications Relay Service (both voice and text 
telephone users can initiate this call from any telephone). 
Additionally, program information may

[[Page 51265]]

be made available in languages other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint and 
at any USDA office or write a letter addressed to USDA and provide in 
the letter all the information requested in the form. To request a copy 
of the complaint form, call (866) 632-9992. Submit your completed form 
or letter to USDA by mail to: U.S. Department of Agriculture, Office of 
the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, 
Washington, DC 20250-9410 or email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Zach Ducheneaux,
Administrator, Farm Service Agency.
[FR Doc. 2023-16489 Filed 8-2-23; 8:45 am]
BILLING CODE 3411-E2-P