The Farm Credit Administration (FCA) has implemented a rule to adjust civil money penalties (CMPs) for inflation. This adjustment is required annually by law to maintain the penalties' effectiveness as a deterrent. The penalties are related to violations under the Farm Credit Act and the Flood Disaster Protection Act. The new penalty amounts are $2,395 for certain violations of the Farm Credit Act and $2,252 for flood insurance-related violations, effective from January 15, 2021. These changes do not require public notice or comments because they are mandatory and noncontroversial.
Simple Explanation
The Farm Credit Administration changed the fine amounts for breaking certain rules to keep them fair and updated with money value changes; now, if someone breaks the rules, they have to pay $2,395 or $2,252, depending on what they did wrong.