[Federal Register: May 8, 2003 (Volume 68, Number 89)]
[Rules and Regulations]
[Page 24829-24845]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08my03-18]
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Part IV
Department of Agriculture
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Commodity Credit Corporation
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7 CFR Part 1410
2002 Farm Bill--Conservation Reserve Program--Long-Term Policy; Interim
Rule
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1410
RIN 0560-AG74
2002 Farm Bill--Conservation Reserve Program--Long-Term Policy
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Interim rule.
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SUMMARY: The Commodity Credit Corporation (CCC) amends the Conservation
Reserve Program (CRP) regulations to set forth the terms and conditions
of enrolling acreage in the CRP, update program eligibility
requirements, eliminate unnecessary regulations and improve the
remaining regulations. This action is being taken to cost-effectively
target the CRP to more environmentally sensitive acreage and to comply
with amendments made by the Farm Security and Rural Investment Act of
2002 (2002 Act).
DATES: This rule is effective May 5, 2003. Comments must be received on
or before July 7, 2003 to be assured of consideration.
ADDRESSES: Comments should be directed to Matt Ponish at Mangi
Environmental Group, 7915 Jones Branch Drive, Suite 2300 McLean,
Virginia 22102, by calling 800-760-1421, by faxing at 703-760-4899, or
by e-mail at crprulecomment@mangi.com.
FOR FURTHER INFORMATION CONTACT: Beverly J. Preston, CRP Program
Manager, at USDA/FSA/CEPD/STOP 0513, 1400 Independence Avenue SW.,
Washington, DC 20250-0513; telephone 202-720-9563; e-mail: Beverly
Preston@wdc.usda.gov. Persons with disabilities who require alternative
means for communication (braille, large print, audiotape, etc.) should
contact the USDA Target Center at 202-720-2600 (voice and ADD).
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be economically significant and
was reviewed by the Office of Management and Budget (OMB) under
Executive Order 12866. A Cost/Benefit Analysis was completed and is
summarized following the Background section.
Regulatory Flexibility Act
It has been determined that the Regulatory Flexibility Act is not
applicable to this interim rule because the Commodity Credit
Corporation (CCC) is not required by 5 U.S.C. 553 or any other
provision of law to publish a notice of proposed rulemaking with
respect to the subject matter of this rule. CCC is authorized by
section 2702 of the 2002 Act to issue an interim rule.
Environmental Evaluation
The environmental impacts of this rule have been considered in
accordance with the provisions of the National Environmental Policy Act
of 1969 (NEPA), 42 U.S.C. 4321 et seq.; the regulations of the Council
on Environmental Quality (40 CFR parts 1500-1508); and FSA's
regulations for compliance with NEPA at 7 CFR part 799. It was
determined that this rule constitutes a major Federal action.
Therefore, FSA completed a final Environmental Impact Statement, which
is on file and available to the public in the Administrative Record at
the address specified in the ADDRESSES section. It is also available
electronically at: http://www.fsa.usda.gov/dafp/cepd/epb/nepa.htm.
Executive Order 12372
This program is not subject to the provisions of Executive Order
12372, which require intergovernmental consultation with State and
local officials. See the Notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115 (June 24, 1983).
Unfunded Mandates
Title II of the Unfunded Mandate Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions that impose ``Federal Mandates''
that may result in expenditures to State, local, or tribal governments,
in the aggregate, or the private sector, of $100 million or more in any
one year. This rule contains no Federal mandates as defined by Title II
of UMRA. Therefore, this rule is not subject to sections 202 and 205 of
the UMRA.
Federal Domestic Assistance Program
The title and number of the Federal Domestic Assistance Program, as
found in the Catalog of Federal Domestic Assistance, to which this rule
applies, is the Conservation Reserve Program--10.069.
Paperwork Reduction Act
The 2002 Act specified that the issuance of regulations promulgated
pursuant to this new authority would be made without regard to chapter
35 of title 44, U.S. Code (commonly known as the ``Paperwork Reduction
Act'').
Executive Order 12778
This interim rule has been reviewed under Executive Order 12778.
The provisions of this rule are not retroactive and preempt State and
local laws that are inconsistent with this rule. Before any judicial
action may be brought concerning this rule, appeal rights afforded
program participants at 7 CFR parts 11, 624, and 780 must be exhausted.
Government Paperwork Elimination Act
FSA is working to comply with the Government Paperwork Elimination
Act (GPEA) and the Freedom to E-File Act, which require Government
agencies in general and FSA in particular to provide the public the
option of submitting information or transacting business electronically
to the maximum extent possible. The forms and other information
collection activities required for participation in the program are not
yet fully implemented for the public to conduct business with FSA
electronically.
Currently, four CRP forms are available electronically through the
USDA eForms Web site at www.sc.egov.usda.gov for downloading and
regulations are available on the Internet at www.fsa.usda.gov/dafp/cepd.
Offers may be submitted at FSA county offices, by mail, or by
FAX. At this time, electronic submission is not available, but full
implementation of electronic submission is underway.
Background
This rule revises the regulations of the Conservation Reserve
Program (CRP) at 7 CFR part 1410 to improve the overall administration
of the program and to implement statutory changes to the CRP. The CRP
was first authorized by the Food Security Act of 1985 (1985 Act), which
was recently amended by the Farm Security and Rural Investment Act of
2002, Public Law 107-171 (2002 Act), which, among other things,
provided the Secretary of Agriculture (Secretary) the authority to
maintain up to 39.2 million acres in the CRP. The purpose of the CRP
continues to be cost-effectively assisting producers in conserving and
improving soil, water, and wildlife resources by converting highly
erodible and other environmentally-sensitive acreage generally devoted
to the production of agricultural commodities to a long-term vegetative
cover. CRP participants enroll land under contracts for 10 to 15 years
in exchange for annual rental payments and financial assistance to
install certain conservation practices and to
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maintain approved vegetative or tree covers.
Native seed and vegetation species that are suited to the soil and
climatic conditions of a site provide high wildlife benefits.
Accordingly, FSA encourages the use of native vegetation whenever
suitable. The CRP application selection criteria (i.e., the
Environmental Benefits Index (EBI)) gives greater weight to contract
offers that devote acreage to native seeds and plantings that are
consistent with the ecosystem (discussed below). In some cases,
however, critical area planting (e.g., land that is severely sloped or
has high potential for erosion) may require the use of introduced
vegetation species because they can stabilize the soil more quickly in
order to protect the soil and water resources. In addition, introduced
species may be easier to establish and provide more cost-effective
conservation covers.
In determining the amount of annual rental payments to be paid, CCC
considers, among other things, the amount necessary to encourage owners
or operators of eligible land to participate in the CRP. The maximum
rental payment CCC will pay reflects site-based soil productivity,
prevailing local cash-equivalent rental rates, and maintenance costs.
Offers to participate in the CRP are submitted in such a manner as the
Secretary prescribes. Requests for rental payments greater than the
amount that CCC determines to be reasonable for the area and soil type
are automatically rejected. In order to maximize the environmental and
conservation benefit of the funds to be expended, conservation
practices and the land for which offers may be accepted may vary as
conditions change.
CCC conducts periodic, competitive general signups in which all
offers are ranked competitively based on their environmental benefits
considering the cost of the contract. The acceptability of such offers
is determined by a formula based upon a number of environmental factors
and benefits. Along with the cost of enrolling the acreage, these
factors are used to construct an EBI to compare offers.
CCC scores general signup offers using the EBI, which measures the
anticipated environmental benefits from several factors and costs. The
Department has used an EBI to prioritize and rank CRP offers since the
tenth signup in March 1991. It was developed to comply with the section
1234(c) of the 1985 Act. The goal of the EBI is to provide a relative
rank order of submitted offers based on environmental factors and cost
in a uniform and consistent manner for all offers. In addition, the EBI
provides incentives to increase cost-effectiveness. Ultimately, the EBI
is used to rank the anticipated environmental benefits from each CRP
offer.
The EBI considers a number of environment factors, including water
quality, soil erosion, air quality, and enduring benefits. In addition
to these factors, wildlife and the quality of vegetation for wildlife
habitat are factors in the ranking criteria. Because native grasses
generally offer better habitat than introduced grasses, the FSA has
revised the EBI selection criteria to give greater weight to the use of
native seed and vegetation species. This provides incentives for
producers to offer and use native species in their CRP contracts.
The effect of the greater EBI weight given for using species can be
seen by examining the change in the proportion of CRP enrolled acres
planted in native grasses. In 1993, when there were nearly 30 million
acres of grass in the CRP, only 28 percent of these acres were planted
in native grasses. Since 1998, 67 percent of the grasses established
under new CRP contracts used native grasses.
Since 1996, between 70,000 and 280,000 offers were received during
each four- to six-week signup period. Environmental data were collected
for each of the EBI ranking factors and subfactors. Each offer was
assigned a point score based upon the relative environmental indices
scores. All offers were ranked in comparison to all other offers and
the selections were made from that ranking.
CCC also conducts continuous, non-competitive signup of certain
acreage. Under the CRP continuous signup process implemented in
September 1996 and the Conservation Reserve Enhancement Program (CREP)
signup process implemented in February 1997, only those practices
determined to have relatively high environmental benefits are eligible.
Acreage determined to be eligible for the continuous CRP or CREP signup
is automatically accepted if all other eligibility requirements are
met. Continuous signup affords farmers and ranchers the management
flexibility in implementing certain working lands conservation
practices on cropland such as filter strips, riparian buffers,
shelterbelts, field windbreaks, living snow fences, grass waterways,
shallow water areas for wildlife, salt-tolerant vegetation and
practices to protect certain approved public wellhead protection areas.
These practices are designed to achieve significant environmental
benefits, giving participants a flexible option to enroll acres on a
continuous basis to help protect and enhance wildlife habitat, improve
air quality, and improve the condition of streams, rivers, and
permanent water bodies. While acreage is accepted on a non-competitive
basis, the practices provide environmental benefits that likely would
consistently exceed the highest EBI score making this acreage
acceptable for enrollment under a general signup.
Further, CCC may enter into a CREP agreement with States, Tribes,
local governments, or private entities to use the CRP to cost-
effectively address specific conservation and environmental issues of
the State and the nation. Proposals, developed locally and submitted
for approval by the Secretary, must address resource concerns, provide
for cooperation with the CREP partners, present clear program goals
with measurable objectives, and detail non-federal financial
contributions.
The 2001 Agricultural Appropriations Act amended the 1985 Act and
authorized a Farmable Wetlands Pilot Program (FWP) to enroll in the
States of Iowa, Minnesota, Montana, Nebraska, North Dakota, and South
Dakota certain wetlands and buffer acreage on a pilot basis. Enrollment
under this pilot could not exceed 500,000 acres for all States and
150,000 acres in any State. The maximum enrollment for both the wetland
and buffer acreage could not exceed 40 acres per tract. Also, wetlands
could not exceed five acres in size to be eligible for enrollment.
Acreage enrolled must be cropland that has a cropping history in at
least three of the most recent ten years. Acreage offered under this
pilot uses the CRP's continuous signup procedures.
On December 6, 2001, CCC published a proposed rule (66 FR 63339)
that proposed a series of amendments that, if adopted, would make
certain orchard lands, vineyards, berry lands, and hay lands eligible
for enrollment, provide for acquisition of private sector technical
assistance and make minor technical and clerical adjustments to the
regulations. This action was taken to allow producers greater
flexibility in enrolling in the CRP and enhance the environmental
benefits under the CRP. CCC proposed that for the continuous signups
held for the CRP and for enrollments in the CREP, certain orchard
lands, vineyards, berry fields, and hay land be permitted to be
enrolled. The 2002 Farm Bill broadened land eligibility to include hay
lands if the land is otherwise cropland that has been devoted to a
conserving use and expanded authority for the use of private-sector and
other technical service providers. These provisions are
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included in this interim rule. Fourteen comments supported the
inclusion of certain orchard lands, vineyards, or berry lands as
proposed. There were no comments opposed to the proposed inclusion.
Therefore, the interim rule also makes certain orchard lands,
vineyards, or berry lands eligible for enrollment under the continuous
CRP and CREP.
Discussion of the Interim Rule
Based on the 2002 Act and FSA discretion, changes have been made to
cropping history requirements, eligible land, the EBI, the FWP, managed
haying and grazing authorities, and providers of technical assistance.
Generally, by statute, CRP land enrolled in the program must be
cropland, but the rules for the program provide that the crop history
must generally be a history of production of tillable crops. That
limitation provides for focusing the CRP on the conversion of land with
the most intensive uses to a cover crop. Also, this focus emphasizes
the ``reserve'' nature of the program and can provide a greater amount
of public benefit by producing savings in other programs as recompense
for the funds spent on this program.
This rule, at 7 CFR part 1410.6(a)(3)(b)(13), makes certain orchard
lands, vineyards and berry lands eligible for the continuous sign-ups
held for the CRP and for enrollments in the CREP. FSA has determined
that these lands could provide significant environmental benefits in
these signups which involve certain geographical practices such as
conservation buffers along stream banks. Such an expansion of the
eligibility criteria for the program was requested by a number of State
governments involved in CREP agreements.
Cropping History Requirements
This rule, at 7 CFR part 1410.6(a), changes the cropping history
requirements required for certain land to be eligible. Before, by rule,
land must have been cropped in two of the five years preceding
enrollment to be eligible. However, the 2002 Act changed that
requirement so that cropland, to be eligible, must be planted or
considered planted for four of the six years preceding the date of
enactment of the 2002 Act on May 13, 2002. Also, in 7 CFR part 1410.6,
this rule provides that land may be eligible if it was devoted to a
conserving use under section 1231(c) of the 1985 Act. For CRP purposes,
conserving use means, during 1996 through 2001, any planted alfalfa and
planted other multi-year grasses and legumes and summer fallow in a
rotation with agricultural commodities are defined as conserving uses
for CRP purposes.
Other Changes in Land Eligibility Requirements
The 2002 Act amendments to the 1985 Act expanded eligibility
authority for marginal pasture land from riparian buffers ``devoted to
trees'' to ``devoted to appropriate vegetation, including trees,'' in
or near riparian areas. Thus, under 7 CFR part 1410.6, CCC has made
marginal pasture land acreage eligible if it is devoted to a riparian
buffer practice, a new wetland practice, or a new wildlife habitat
buffer practice. This enhancement will allow riparian buffers,
wetlands, and wildlife habitat practices intrinsically valuable in
addressing Federal and State environmental and wildlife issues near
streams, rivers, or other water bodies to be established where tree
plantings are not practical or appropriate. These practices improve
water quality, reduce flood and storm event damage, help control soil
erosion, and provide important fish and wildlife habitat. Certain
wetlands are also valuable in providing filtering functions because of
their location between land and water.
The 2002 Act amendments also extends eligibility to cropland when
enrollment would facilitate a net savings in groundwater or surface
water resources of the agricultural operation of the producer. To
implement this new provision, CCC has added to the list of eligible
conservation practices in 7 CFR part 1410.6 a practice that has water
savings as its primary function. Water savings will advance the goal of
providing the nation and States with adequate water to meet farming and
ranching needs as well as the needs of an increasing population.
Another new land eligibility provision in the 2002 Act amendments
provides that the remainder of cropland in a field that is not enrolled
as a ``buffer'' may be enrolled if it is less than 50 percent of the
cropland in that field, is infeasible to farm, and is enrolled at
regular enrollment rates. For this provision, at 7 CFR part 1410.6
provides that a ``buffer'' will be considered to be riparian buffers,
filter strips, or areas buffering wellhead protection areas.
``Infeasible to farm'' is defined as areas that are too small or
isolated to be economically farmed, as determined by the FSA.
The 2002 Act also made land enrolled in the CRP but nearing
contract completion eligible for new enrollment. Accordingly, any
acreage currently in the CRP will be basically eligible to be offered
for continued enrollment if the current contract is scheduled to expire
the day before a new contract would become effective. However, land
will be ineligible for enrollment if it is subject to a CRP useful life
easement that extends beyond the current contract term. The interim
rule provides that re-enrollment of currently enrolled acreage will be
based on the same criteria as for enrolling new acreage.
The EBI has been modified after extensive negotiations with
resource professionals from the Forest Service, Natural Resource
Conservation Service (NRCS), U.S. Environmental Protection Agency, U.S.
and Wildlife Service (FWS), U.S. Geological Survey (USGS) and others
and from public scoping and public comments submitted during
development of the programmatic environmental impact statement.
The 2002 Act made no changes to the EBI authority. However, the EBI
has been re-engineered to continue to encourage the restoration of
plantings consistent with the ecosystem where the land is offered. The
EBI has also been simplified to enable producers to run different
scenarios independently, reduce error rates, improve customer service
by significantly reducing the time needed for a producer to submit an
offer, and reduce resources needed to process an offer.
The index may include consideration of soil erosion, water quality,
wildlife habitat, enduring benefits, air quality, and cost while also
including consideration of other technical factors such as
recommendations of the State technical committee, conservation priority
areas, permanent wildlife habitat, and tree plantings.
Farmable Wetlands Program (FWP)
Under the 2002 Act amendments, the FWP, at 7 CFR part 1410.11, was
expanded from a six-State pilot to all States and may include up to a
total of 1 million acres. In general, up to 100,000 acres may be
enrolled in any State, except that enrollment of a State may be
increased to 150,000 acres after 3 years. The 2002 Act amendments also
changed the maximum size of any wetland enrolled under the FWP from
five to ten contiguous acres, of which not more than five acres shall
be eligible for payment. No more than 40 acres from a tract may be
enrolled under the FWP. All acres, including acres ineligible for
payment, must be maintained according to an approved conservation plan.
Managed Haying and Grazing
Before the 2002 Act amendments, the 1985 Act generally provided
that no
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commercial use could be made of land enrolled in CRP but permitted
haying or grazing during droughts or similar weather-related
emergencies. The 2002 Act amended that provision by adding an exception
for managed harvesting and grazing, including the managed harvesting of
biomass and the installation of wind turbines.
Wind turbines generally have a limited impact on the environment
due to their small footprint of approximately one-tenth acre. They are
non-polluting sources of energy and generally have a limited impact on
wildlife. Wind turbines will be installed according to standards and in
such numbers as determined appropriate by FSA.
Managed haying and grazing is anticipated to be a useful tool to
manage CRP stands and to assist CRP participants in managing their
operation. Allowing non-emergency managed haying and grazing, conducted
in accordance with a conservation plan, will increase the amount of
cover disturbance that will occur. Managed disturbance of vegetative
covers (i.e., a disturbance cycle) established on CRP land generally
increases diversity and quality of vegetative covers and improves
wildlife habitat benefits. Based on surveys of CRP participants, these
managed haying uses could potentially affect about 25 percent of
eligible CRP grassland acreage. Haying and grazing will be limited to
no more than once every 3 years, depending on conservation plan
guidelines, with additional restrictions in environmentally sensitive
areas or practices.
All haying and grazing activities will be conducted only after a
detailed conservation plan is developed for haying or grazing
management according to the NRCS Field Office Technical Guide (FOTG)
haying and grazing standards. The conservation plan will ensure the
long-term viability of the stand while protecting and enhancing the
soil, water, wildlife and other natural resources of the CRP acreage.
The conservation plan will require the control of noxious weeds and
other weeds, insects, and pests. All haying and grazing activities must
be conducted consistent with the terms and conditions of the haying and
grazing management plan. USDA will conduct compliance reviews to ensure
compliance.
In November 2001, a panel of grassland ecologists with special
expertise in grassland bird ecology representing academia, Government
and non-profit organizations developed a number of consensus
recommendations for guidance regarding haying and grazing of CRP as
well as long-term protection of existing grasslands.
The panel's consensus view was ``to establish a general rule
favoring grazing 1 in 3 years on one-third of the enrolled CRP lands.''
Other species-specific haying and grazing requirements were also
recommended. However, FSA was advised that the specific recommendations
assumed a mono-culture for a particular species (e.g., short-grass
prairie) and did not take into account the landscape's natural
diversity. Therefore, FSA adopted the NRCS FOTG haying and grazing
standard to augment the panel's consensus view.
FSA determined that managed haying and grazing of CRP acreage once
every 3 years as recommended by the grassland ecologist panel was the
appropriate disturbance cycle. State committees will not be
establishing disturbance cycles more frequently than the 1-in-3 year
cycle. Less frequent disturbance cycles may be established by State
committees with State Technical Committee consultation. The year 2003
will be considered year 1 of the management cycle for all CRP contracts
in effect. For all new CRP contracts, the disturbance cycle will begin
when the cover is established.
For contracts where all eligible acreage is already established,
year 1 of the disturbance cycle will begin during the first managed
haying and grazing period after the CRP contract is approved. For
contract acreage where an acceptable cover may need to be established,
year 1 will begin during the managed haying and grazing period 12
months after the applicable cover is fully established. This will
ensure that the applicable acreage will be capable of withstanding the
applied haying or grazing pressure without failing to recover.
Farm Service Agency State committees, in consultation with State
technical committees, will determine the beginning of the primary
nesting and brood rearing season during which managed haying and
grazing will not be performed. The ending dates were established by
FSA, in consultation with the FWS, in the 1990's and are not intended
to be changed. The appropriate managed haying and grazing period, which
may not overlap with the primary nesting and brood-rearing season, will
be determined by the FSA State committee in consultation with the NRCS
State technical committee.
Managed haying and grazing will interact with emergency
authorizations of haying and grazing by including acres hayed or grazed
under the emergency authority into the managed haying and grazing
disturbance cycle. Thus, any acreage hayed or grazed under emergency
authority would not be eligible to be hayed or grazed under managed
haying or grazing provisions the following 2 years. Managed haying or
grazing of CRP does not affect the eligibility of CRP acreage for
emergency haying or grazing.
Emergency Haying and Grazing
Under existing emergency authority, any eligible CRP acreage may be
hayed or grazed each year the county is approved. Under the new rule,
any CRP acreage eligible for emergency haying or grazing within the
county may be hayed or grazed within the emergency authorization
regardless of whether it was hayed or grazed in previous years under
managed provisions or emergency authority. This would remain consistent
with current emergency authority. However, any eligible acreage hayed
or grazed under either managed or emergency provisions would not be
eligible for managed haying or grazing for the next two years.
Providers of Technical Assistance
The CRP is carried out by CCC through FSA using FSA State and
county offices. The Farm Service Agency supplements its staff by using
providers of technical assistance including, for example, NRCS, FS
State foresters, individuals, private-sector entities, and public
agencies certified under the regulations at 7 CFR part 652.
Conservation Priority Areas (CPA's)
Land designated as either a State or National CPA is considered
eligible to be offered for enrollment in the CRP (provided it meets the
cropping history and physically and legally capable of being cropped
standards). Although land is considered eligible for enrollment, the
offer is not automatically acceptable. CPA's are designated based on
entire counties or hydrologic unit codes (HUC's). All CPA's must have a
primary purpose of wildlife, water quality, or air quality. State and
National CPA's may have a designated zone associated with the CPA. The
zone must be designated as either a wildlife, water quality, or air
quality zone. Acreage offered for enrollment in the CRP that is
designated as a CPA and is located within the applicable zone is
awarded EBI points.
The 2002 Act re-authorized the watershed areas of the Chesapeake
Bay Region, the Great Lakes Region, the Long Island Sound Region, and
other areas of special environmental sensitivity to be designated as
conservation priority areas for a period
[[Page 24834]]
of 5 years, subject to re-designation. The purpose of the conservation
priority area designation is to enhance the CRP by better addressing
conservation and environmental issues in a planned and coordinated
manner within a State. In addition to the national priority areas
provided in the 1985 Act, CCC re-authorized two other national
conservation priority areas: the Prairie Pothole and Longleaf Pine
Regions with certain adjustments, as explained later. CCC will continue
national conservation priority areas after reviewing and revising them,
as appropriate, to conform to HUC's or county boundaries.
CCC also re-authorized State conservation priority areas. Prior to
the 2002 Act, State conservation priority areas were limited to no more
than 10 percent of the cropland (net of any national conservation
priority area) in the State. When requesting conservation priority area
designation, FSA State committees were required to develop an
evaluation and monitoring system to determine the effectiveness of
designating a particular area as a priority. Designations are valid for
5 years and many of these areas are approaching the expiration of their
5-year designation.
The regulations at 7 CFR part 1410.8 authorize FSA State committees
to designate State conservation priority areas after consulting with
the NRCS State technical committee. Conservation priority areas make
cropland basically eligible for enrollment. Other qualifications
including the physically and legally capable of being cropped standards
at 7 CFR part 1410.6 and ownership eligibility at 7 CFR part 1410.5
continue to apply. This rule, in 7 CFR part 1410.8, changes the total
area in a State eligible to be designated as a State conservation
priority area from no more than 10 percent to no more than 33 percent
of the cropland in the State. This change increases local flexibility
in enrolling eligible land into the program and provide local natural
resource managers increased flexibility in achieving environmental
improvement and in achieving water quality objectives under the Clean
Water Act. The increase from 10 percent to 33 percent will assist USDA
in addressing certain water quality issues and is consistent with water
quality areas designated for certain environmental benefit ranking
factors.
Mid-Contract Cover Management
USDA will require that all new covers under new contract to be
maintained and managed in a manner that will maximize wildlife benefits
while ensuring soil, water, and other resources are protected. Eligible
management activities incorporating native seeds and planting will be
developed by FSA State committees based on recommendations from State
technical committees with input from resource professionals with
knowledge of wildlife, forestry, hydrology and other appropriate
disciplines. Other management activities could include light discing
and burning. Mid-cover management shall be conducted according to an
approved conservation plan as part of the CRP contractual obligation
that will maximize wildlife benefits while ensuring soil, water, and
other resources are protected as determined by FSA.
Request for Comment
The regulations at 7 CFR part 1410.30 provide for enrollment
methods that generally include periodic competitive signup periods and,
for certain environmental practices, continuous non-competitive
enrollments. Since 1996 when continuous signup was authorized, FSA has
expanded the kinds of environmental practices to meet legislative and
other needs. The added practices include contour grass strips on
terraces, two farmable wetland practices and the marginal pasture land
practices. Further, USDA recently announced the intention to include
certain hardwoods under continuous signup.
We request comments on environmental and other criteria that should
be used to qualify practices for a continuous signup and to distinguish
the non-competitive from the competitive general signup.
Cost-Benefit Assessment (CBA)
The CBA analyzes the environmental, economic, and budgetary impacts
of enrolling additional land in CRP under provisions of the
accompanying rule. Principal issues analyzed are land eligibility
changes and extension of authority to enroll new lands in CRP. Two
enrollment options are considered: (1) Enrollment of additional acres
under general signup provisions to reach the statutory maximum
enrollment of 39.2 million acres and (2) enrollment of additional
acreage under general signup provisions up to the pre-existing 36.4
million-acre cap. The first scenario is the selected option. It
corresponds to enrollment levels included in the Office of Management
and Budget's Fiscal Year (FY) 2003 Mid-Session Review budget baseline,
and includes enrollment of an additional 2.8 million acres compared
with option 2. Other issues analyzed include basic cropland and
resource-based eligibility criteria, FWP expansion, eligibility of
infeasible-to-farm field remainders, and management of enrolled fields
to maintain and improve vegetative vigor and diversity.
Cropland eligibility will be based on crop history during 1996
through 2001. To be eligible, land must have been cropped, considered
cropped, or in conserving uses in at least 4 of the 6 years. Land
planted to an agricultural commodity at least 4 of the 6 years is
estimated to total 310 million acres. Allowing land in crop/fallow
rotations adds about 28.3 million acres, primarily in the Northern
Plains and Mountain regions where wheat/fallow rotations are common.
Including land in hay/crop rotations (25.2 million acres) brings total
land meeting crop history requirements to 363.5 million acres, a 1.9
million-acre (0.5 percent) increase from estimated eligibility under
prior provisions.
About 268 million acres, or 74 percent, of land meeting crop
history requirements are estimated to meet one or more resource-based
eligibility criteria, including 104 million acres of highly erodible
cropland, 116 million acres in national conservation priority areas,
and up to 94 million acres in State conservation priority areas.
Because CRP enrollment in a county is limited to 25 percent of cropland
in the county, only about 106 million of these acres are potentially
enrollable.
Allowing non-emergency managed haying or grazing, conducted in
accordance with a conservation plan, will increase the amount of cover
disturbance that will occur. Managed disturbance of vegetative covers
established on CRP land generally increases diversity and quality of
vegetative covers, improving wildlife habitat benefits. Based on
surveys of CRP participants, these managed uses could potentially
affect about 25 percent of eligible CRP grassland acreage. Haying and
grazing will be limited to no more than once every 3 years, depending
on conservation plan guidelines, with additional restrictions in
environmentally sensitive areas or practices. Thus, around 2 to 3
million acres could be hayed or grazed in any year, improving wildlife
habitat benefits on a total of about 7 million acres. If the current
25-percent payment reduction is applied and there is equitable regional
distribution of participation, CRP outlays could be reduced by $20
million to $25 million per year.
Establishing long-term vegetative cover on the additional 2.8
million acres of cropland enrolled under the selected option (option 1)
will provide numerous environmental benefits. Soil productivity is
enhanced because erosion is essentially ceased during the 10- to 15-
year contract period. CRP enrollment reduces sheet and rill (water
[[Page 24835]]
driven) soil erosion, and the quantity of agricultural pollutants
available to reach water bodies and impair water uses. Reduced wind
erosion provides air quality benefits. The additional 2.8 million acres
will reduce estimated annual erosion 21 million tons compared with 1997
erosion rates: sheet and rill and wind erosion will be reduced by about
10 million tons and 11 million tons, respectively. Carbon
sequestration, the storage of carbon in soils and vegetation, will
increase by an estimated 1.3 million metric tons per year.
While comprehensive estimates of changes in wildlife populations
are not generally available, expanded and enhanced wildlife habitat
should result in substantial increases in the abundance of game and
non-game species. Many CRP practices are specifically or primarily
directed toward improving wildlife habitat. Almost 10 million acres are
currently enrolled in conservation priority areas, selected for
wildlife habitat enhancement purposes. Over 3 million acres of specific
wildlife practices, including wildlife corridors, shallow water areas
for wildlife, riparian buffers, and wetland restoration, currently
provide critical wildlife habitat benefits. In addition, 1.4 million
flood-prone and riparian area acres and 3.4 million cropped wetland and
wetland complex acres are currently enrolled. Wildlife benefits are
further enhanced by establishment of 374,000 acres of rare and
declining habitats, 2.3 million acres of permanent wildlife habitat,
and enrollment of 92,000 acres of former water bank land. Many of these
wildlife-enhancing practices will be included in the 2.8 million acres
enrolled under the selected option.
Comprehensive measures of environmental benefit values obtained
from enrolling environmentally sensitive land in CRP do not currently
exist. Published estimates of CRP benefits, based on currently and
previously enrolled acreage, using indirect measures or secondary
sources generally provide regional estimates of benefits per acre
enrolled or per ton erosion reduction. Using these derived estimates
enrolling the additional 2.8 million acres is estimated to provide
environmental benefits of $129 million per year. These benefits
include: $11 million from improved soil productivity, $19 million from
improved surface water quality, $41 million from enhanced wildlife
viewing opportunities, $57 million in small game and migratory
waterfowl hunting benefits, and $2 million in air quality benefits.
Many major benefit categories are not yet quantified, including
benefits from numerous recreational activities, big game hunting,
flood-control, wetland restoration, groundwater quality, improved human
health from improved water and air quality, fishing, and carbon
sequestration.
With about 350 million acres typically in crop production annually,
idling an additional 2.8 million acres under CRP (less than 1 percent
of plantings) will have minimal impacts on crop production, crop
prices, and farm income. Net crop sector income is estimated to
increase $307 million per year (1 percent) during the 2003-2012 crop
years, due to the additional CRP enrollment. This increase is a result
of larger estimated market-based net returns ($349 million per year),
decreased commodity program payments ($186 million per year), and
increased net CRP payments ($144 million per year) over the 10-year
period. Underlying these changes is a 900,000 acre estimated decline in
combined wheat, feed grains, and soybean plantings per year over the
period. As a result of these reduced plantings, crop prices are
estimated to increase on average $0.02 per bushel for wheat, $0.02 for
corn, $0.01 to $0.02 for other feed grains, and $0.06 for soybeans per
year.
Total CRP outlays are estimated to increase $1.5 billion, while
commodity program outlays are estimated to decline about $1.7 billion
during FY 2003 through 2012, primarily due to a $1.5 billion counter-
cyclical payment decline. The additional 2.8 million-acre enrollment is
estimated to decrease combined CRP and commodity program outlays by
$208 million annually during the 10-year period.
Total estimated impacts for the additional CRP enrollment,
including $326 million annual economic losses due to higher crop prices
and reduced crop supplies (buyers' loss) and estimated average annual
economic benefits (increased farm incomes and environmental benefits),
results in estimated net economic benefits of $131 million per year.
This amount probably understates the net impacts to society because
many of the environmental benefits are not included.
List of Subjects in 7 CFR Part 1410
Administrative practices and procedures, Agriculture, Conservation
plan, Contracts, Environmental protection, Natural resources, Soil
conservation, Water resources, and Wildlife.
0
Accordingly, 7 CFR part 1410 is revised to read as follows:
PART 1410--CONSERVATION RESERVE PROGRAM
Sec.
1410.1 Administration.
1410.2 Definitions.
1410.3 General description.
1410.4 Maximum county acreage.
1410.5 Eligible persons.
1410.6 Eligible land.
1410.7 Duration of contracts.
1410.8 Conservation priority areas.
1410.9 Conversion to trees.
1410.10 Restoration of wetlands.
1410.11 Farmable Wetlands Program.
1410.12-1410.19 [Reserved]
1410.20 Obligations of participant.
1410.21 Obligations of the Commodity Credit Corporation.
1410.22 CRP Conservation Plan.
1410.23 Eligible practices.
1410.24-1410.29 [Reserved]
1410.30 Signup.
1410.31 Acceptability of offers.
1410.32 CRP contract.
1410.33 Contract modifications.
1410.34-1410.39 [Reserved]
1410.40 Cost-share payments.
1410.41 Levels and rates for cost-share payments.
1410.42 Annual rental payments.
1410.43 Method of payment.
1410.44 Adjusted Gross Income
1410.45-1410.49 [Reserved]
1410.50 Enhancement programs.
1410.51 Transfer of land.
1410.52 Violations.
1410.53 Executed CRP contract not in conformity with regulations.
1410.54 Performance based upon advice or action of the Department.
1410.55 Access to land under contract.
1410.56 Division of payments and provisions about tenants and
sharecroppers.
1410.57 Payments not subject to claims.
1410.58 Assignments.
1410.59 Appeals.
1410.60 Scheme or device.
1410.61 Filing of false claims.
1410.62 Miscellaneous.
1410.63 Permissive uses.
Authority: 15 U.S.C. 714b and 714c; 16 U.S.C. 3801-3847.
Sec. 1410.1 Administration.
(a) The regulations in this part will be implemented under the
general supervision and direction of the Executive Vice President,
Commodity Credit Corporation (CCC), the Administrator, Farm Service
Agency (FSA), or a designee, or the Deputy Administrator, FSA. In the
field, the regulations in this part will be implemented by the FSA
State and county committees (``State committees'' and ``county
committees,'' respectively).
(b) State executive directors, county executive directors, and
State and county committees do not have the authority to modify or
waive any of the provisions in this part unless
[[Page 24836]]
specifically authorized by the Deputy Administrator.
(c) The State committee may take any action authorized or required
by this part to be taken by the county committee, but which has not
been taken by such committee, such as:
(1) Correct or require a county committee to correct any action
taken by such county committee that is not in accordance with this
part; or
(2) Require a county committee to withhold taking any action that
is not in accordance with this part.
(d) No delegation of authority herein to a State or county
committee shall preclude the Executive Vice President, CCC, the
Administrator, FSA, or a designee, or the Deputy Administrator, from
determining any question arising under this part or from reversing or
modifying any determination made by a State or county committee.
(e) Data furnished by prospective participants will be used to
determine eligibility for program benefits. Furnishing the data is
voluntary; however, the failure to provide data could result in program
benefits being withheld or denied.
(f) Notwithstanding other provisions of this section, the
Erodibility Index (EI), suitability of land for permanent vegetative or
water cover, factors for determining the likelihood of improved water
quality, and adequacy of the planned practice to achieve desired
objectives shall be determined by the Natural Resource Conservation
Service (NRCS) or other sources approved by CCC, in accordance with the
Field Office Technical Guide (FOTG) of NRCS or other guidelines deemed
appropriate by NRCS. In no case shall such determination compel CCC to
execute a contract that CCC does not believe will serve the purposes of
the program established by this part. Any approved technical authority
shall utilize CRP guidelines established by CCC.
(g) CCC may consult with the Forest Service (FS), a State forestry
agency, or other organizations as determined by CCC to be necessary for
developing and implementing conservation plans that include tree
planting as the appropriate practice or as a component of a practice.
(h) CCC may consult with the Cooperative State Research, Education,
and Extension Service to coordinate a related information and education
program as deemed appropriate to implement the Conservation Reserve
Program (CRP).
(i) CCC may consult with the National Marine Fisheries Service,
U.S. Fish and Wildlife Service (FWS), or State wildlife agencies for
such assistance as is determined necessary by CCC to implement the CRP.
(j) The regulations governing the CRP as of May 12, 2002, shall
continue to govern contracts in effect as of that date (see 7 CFR part
1410 contained in the edition of 7 CFR Parts 1200 to 1599 revised as of
January 1, 2003). This part shall apply to contracts executed on or
after May 13, 2002
Sec. 1410.2 Definitions.
(a) The definitions in part 718 of this chapter shall be applicable
to this part and all documents issued in accordance with this part,
except as otherwise provided in this section.
(b) The following definitions shall be applicable to this part:
Agricultural commodity means any crop planted and produced:
(1) By annual tilling of the soil;
(2) On an annual basis by one-trip planters; or
(3) Sugarcane planted or produced in a State.
Annual rental payment means, unless the context indicates
otherwise, the annual payment specified in the CRP contract that,
subject to the availability of funds, is made to a participant to
compensate a participant for placing eligible land in the CRP.
Conservation district means a political subdivision of a State,
Indian Tribe, or territory, organized pursuant to the State or
territorial soil conservation district law, or Tribal law. The
subdivision may be a conservation district, soil conservation district,
soil and water conservation district, resource conservation district,
natural resource district, land conservation committee, or similar
legally constituted body.
Conservation plan means a record of the participant's decisions and
supporting information for treatment of a unit of land or water, and
includes a schedule of operations, activities, and estimated
expenditures needed to solve identified natural resource problems by
devoting eligible land to permanent vegetative cover, trees, water, or
other comparable measures.
Conservation priority area means an area designated with actual and
adverse water quality, wildlife habitat, air quality, or other natural
resource impacts related to agricultural production activities or to
assist agricultural producers to comply with Federal and State
environmental laws or to meet other conservation needs, such as for air
quality, as determined by the Deputy Administrator.
Conserving use means any alfalfa, other multi-year grasses and
legumes planted during 1996 through 2001, and any summer fallow during
1996 through 2001.
Considered planted means: land devoted to a conserving use or land
enrolled in the WBP during the crop year or during any of the 2 years
preceding the crop year if the contract expired or will expire during
calendar year 2000, 2001, or 2002; cropland enrolled in CRP; or land
for which the producer received insurance indemnity payment for
prevented planting.
Contour grass strip means a vegetation area that follows the
contour of the land that complies with the FOTG and a conservation plan
developed under this part.
Contract period means the term of the contract which is not less
than 10, nor more than 15 years.
Cost-share payment means the payment made by CCC to assist program
participants in establishing the practices required in a contract.
Cropland means land defined as cropland in part 718 of this title,
except for land in terraces that are no longer capable of being
cropped.
Cropped wetlands means farmed wetlands and wetlands farmed under
natural conditions.
Deputy Administrator means the Deputy Administrator for Farm
Programs, FSA, the CRP Program Manager, or a designee.
Erodibility Index (EI) is, as prescribed by CCC, used to determine
the inherent erodibility (water or wind) of a soil.
Farmed wetlands means land defined as farmed wetlands in part 12 of
this title.
Federally-owned land means land owned by the Federal Government or
any department, instrumentality, bureau, or agency thereof, or any
corporation whose stock is wholly owned by the Federal Government.
Field means a part of a farm that is separated from the balance of
the farm by permanent boundaries such as fences, roads, permanent
waterways, woodlands, other similar features, or crop-lines, as
determined by CCC.
Field Office Technical Guide (FOTG) means the official USDA
guidelines, criteria, and standards for planning and applying
conservation treatments and conservation management systems. It
contains detailed information on the conservation of soil, water, air,
plant, animal resources, and cultural resources applicable to the local
area for which it is prepared.
Field windbreak, shelterbelt, and/or living snowfence mean a
vegetative barrier with a linear configuration composed of trees,
shrubs, or other vegetation, as determined by CCC, that are designated
as such in a conservation
[[Page 24837]]
plan and that are planted for the purpose of reducing wind erosion,
controlling snow, improving wildlife habitat, or conserving energy.
Filter strip means a strip or area of vegetation adjacent to a body
of water the purpose of which is to remove nutrients, sediment, organic
matter, pesticides, and other pollutants from surface runoff and
subsurface flow by deposition, absorption, plant uptake, and other
processes, thereby reducing pollution and protecting surface water and
subsurface water quality and of a width determined appropriate for the
purpose by the Deputy Administrator.
Highly Erodible Land (HEL) means land determined to have an EI
equal to or greater than 8 on the acreage offered.
Infeasible to farm means an area that is too small or isolated to
be economically farmed, as determined by the Deputy Administrator.
Landlord means a person who rents or leases acreage to another
person.
Local FSA office means the FSA office serving the area in which the
FSA records are located for the farm or ranch.
Offer means, unless the context indicates otherwise, if required by
CCC, the per-acre rental payment requested by the owner or operator in
such owner's or operator's request to participate in the CRP.
Offeror means an eligible person as determined by CCC who submits
an offer of eligible acreage for enrollment into the CRP to enter into
a CRP contract.
Operator means a person who is in general control of the farming
operation on the farm, as determined by CCC.
Payment period means the 10- to 15-year contract period for which
the participant receives an annual rental payment.
Perennial crop means an agricultural commodity that is produced
from the same root structure for two or more years, as determined by
CCC.
Permanent vegetative cover means perennial stands of approved
combinations of certain grasses, legumes, forbs, shrubs and trees with
a life span of 10 or more years.
Permanent wildlife habitat means a vegetative cover with the
specific purpose of providing habitat, food, or cover for wildlife and
protecting other environmental concerns for the life of the contract.
Practice means a conservation, wildlife habitat, or water quality
measure with appropriate operations and management as agreed to in the
conservation plan to accomplish the desired program objectives
according to CRP and FOTG standards and specifications as a part of a
conservation management system.
Riparian buffer means a strip or area of vegetation adjacent to a
river or stream of sufficient width as determined by the Deputy
Administrator to remove nutrients, sediment, organic matter,
pesticides, and other pollutants from surface runoff and subsurface
flow by deposition, absorption, plant uptake, and other processes,
thereby reducing pollution and protecting surface water and subsurface
water quality, which are also intended to provide shade to reduce water
temperature for improved habitat for aquatic organisms and supply large
woody debris for aquatic organisms and habitat for wildlife.
Soil loss tolerance (T) means the maximum average annual erosion
rate specified in the FOTG that will not adversely impact the long-term
productivity of the soil.
State means State agencies, departments, districts, county or city
governments, municipalities or any other State or local government of
the State.
State Technical Committee means a committee established pursuant to
part 610 of this chapter to provide information, analysis, and
recommendations to the U.S. Department of Agriculture.
State water quality priority areas means any area so designated by
the State committee, in consultation with the State Technical
Committee, where agricultural pollutants contribute to water
degradation or create the potential for failure to meet applicable
water quality standards or the goals and requirements of Federal or
State water quality laws. These areas may include areas designated
under section 319 of the Federal Water Pollution Control Act (33 U.S.C.
1329) as water quality protection areas, sole source aquifers or other
designated areas that result from agricultural nonpoint sources of
pollution. Acreage in these areas may be determined eligible as
conservation priority areas.
Technical assistance means the assistance provided in connection
with the CRP to owners or operators as approved by CCC, for developing
conservation and/or tree planting plans, determining the eligibility of
land and practices, implementing and certifying practices, and ensuring
contract performance.
Violation means an act by the participant, either intentional or
unintentional, that would cause the participant to no longer be
eligible for all or a portion of cost-share, incentive, or annual
contract payments.
Water Bank Program (WBP) means the program authorized by the Water
Bank Act of 1970, as amended, in which eligible persons enter into 10-
year agreements to preserve, restore, and improve wetlands.
Water cover means flooding of land by water either to develop or
restore shallow water areas for wildlife or wetlands, or as a result of
a natural disaster.
Wellhead protection area means the area designated by EPA or the
appropriate State agency with an Environmental Protection Agency
approved Wellhead Protection Program for water being drawn for public
use, as defined for public use by the Safe Drinking Water Act, as
amended.
Wetland means land defined as wetland in accordance with provisions
of part 12 of this title.
Wetlands farmed under natural conditions means land defined as
wetlands farmed under natural conditions in accordance with provisions
of part 12 of this title.
Wetlands Reserve Program (WRP) means the program authorized by part
1467 of this chapter in which eligible persons enter into long-term
agreements to restore and protect wetlands.
Sec. 1410.3 General description.
(a) Under the CRP, CCC will enter into contracts with eligible
participants to convert eligible land to a conserving use during the
contract period in return for financial and technical assistance.
(b) A participant must obtain and adhere to a conservation plan
prepared in accordance with CRP guidelines, as established and
determined by CCC. A conservation plan for eligible acreage must be
obtained by a participant and must be approved by the conservation
district in which the lands are located unless the conservation
district declines to review the plan, in which case the provider of
technical assistance may take such further action as is needed to
account for lack of such review.
(c) The objectives of the CRP are to cost-effectively reduce water
and wind erosion, protect the Nation's long-term capability to produce
food and fiber, reduce sedimentation, improve water quality, create and
enhance wildlife habitat, and other objectives including encouraging
more permanent conservation practices and tree planting.
(d) Except as otherwise provided, a participant may, in addition to
any payments under this part, receive cost-share assistance, rental or
easement payments, tax benefits, or other payments from a State or a
private organization in return for enrolling lands in CRP. However, a
participant
[[Page 24838]]
may not receive or retain CRP cost-share assistance if other Federal
cost-share assistance is provided for such acreage under any law, as
determined by the Deputy Administrator. Further, under no circumstances
may the cost-share payments received under this part, or otherwise,
exceed the cost of the practice, as determined by CCC.
Sec. 1410.4 Maximum county acreage.
(a) Except as provided in paragraph (b) of this section, the
maximum acreage that may be placed in the CRP and the WRP may not
exceed 25 percent of the total cropland in the county; further, no more
than 10 percent of the cropland may be subject, in the aggregate, to a
CRP or WRP easement.
(b) The restrictions in paragraph (a) of this section may be waived
by CCC if CCC determines that such action would not adversely affect
the local economy of the county and that operators in the county are
having difficulties complying with conservation plans implemented under
part 12 of this title.
(c) These restrictions on participation shall be in addition to any
other restriction imposed by law.
Sec. 1410.5 Eligible persons.
(a) In order to be eligible to enter into a CRP contract in
accordance with this part, a person must be an owner, operator, or
tenant of eligible land and:
(1) If an operator of eligible land, seeking to participate without
the owner, must have operated such land for at least 12 months prior to
the close of the applicable signup period and must provide satisfactory
evidence that such operator will be in control of such eligible land
for the full term of the CRP contract period;
(2) If an owner of eligible land, must have owned such land for at
least 12 months prior to the close of the applicable signup period,
unless:
(i) The new owner acquired such land by will or succession as a
result of the death of the previous owner;
(ii) The only ownership change in the 12-month period occurred due
to foreclosure on the land and the owner of the land, immediately
before the foreclosure, exercises a timely right of redemption from the
mortgage holder in accordance with State law; or
(iii) As determined by the Deputy Administrator, the circumstances
of the acquisition are such that present adequate assurance that the
new owner of such eligible land did not acquire such land for the
purpose of placing it in the CRP; or
(3) If a tenant, the tenant is a participant with an eligible owner
or operator.
(b) Notwithstanding paragraph (a) of this section, under continuous
signup provisions authorized by Sec. 1410.30, an otherwise eligible
person must have owned or operated, as appropriate, the eligible land
for at least 12 months before submitting the offer.
Sec. 1410.6 Eligible land.
(a) In order to be eligible to be placed in the CRP, land must be
one of the following:
(1) Cropland that is subject to a conservation plan and has been
annually planted or considered planted, as defined in Sec. 1410.2, to
an agricultural commodity in 4 of the 6 crop years from 1996 through
2001, as determined by the Deputy Administrator, provided further that
field margins that are incidental to the planting of crops may also be
considered qualifying cropland to the extent determined appropriate by
the Deputy Administrator; and is physically and legally capable of
being planted in a normal manner to an agricultural commodity, as
determined by the Deputy Administrator; or
(2) marginal pasture land, as determined by the Deputy
Administrator, that:
(i) is enrolled in the crop year or has been enrolled during any of
the 2 years preceding the crop year in the WBP; and
(A) The WBP contract of the owner or operator of the cropland
expired or will expire in calendar year 2000, 2001, or 2002; and
(B) The acreage is not classified as naturally occurring type 3
through 7 wetlands, as determined by the Deputy Administrator,
regardless of whether the acreage is or is not protected by a Federal
agency easement or mortgage restriction (types 3 through 7 wetlands
that are normally artificially flooded shall not be precluded from
eligibility), and;
(C) Enrollment in CRP would enhance the environmental benefits of
the site, as determined by Deputy Administrator; or
(ii) Is determined to be suitable for use as a riparian buffer. A
field or portion of a field of marginal pasture land may be considered
to be suitable for use as a riparian buffer only if, as determined by
CCC, it:
(A) Is located adjacent to permanent stream corridors excluding
corridors that are considered gullies or sod waterways; and
(B) Is capable, when permanent grass, forbs, shrubs, or trees, are
grown, or when planted with appropriate vegetation for the area,
including vegetation suitable for wetland restoration or wildlife
habitat, as determined appropriate by the Deputy Administrator, of
substantially reducing sediment and/or nutrient runoff that otherwise
would be delivered to the adjacent stream or waterbody or for water
quality purposes; or
(3) Must be acreage enrolled in the CRP during the final year of
the CRP contract provided the scheduled expiration date of the current
CRP contract is before the effective date the new CRP contract, as
determined by the Deputy Administrator.
(b) Land qualifying under paragraphs (a)(1) or (a) (2) of this
section must also meet one of the following criteria, to be eligible
for a contract:
(1) Be a field or portion of a field determined to be suitable for
use, as determined by the Deputy Administrator, as a permanent wildlife
habitat, filter strip, riparian buffer, contour grass strip, grass
waterway, field windbreak, shelterbelt, living snowfence, other uses as
determined by the Deputy Administrator, land devoted to vegetation on
salinity producing areas, including any applicable recharge area, or
any area determined eligible for CRP based on wetland or wellhead
protection area criteria. A field or portion of a field may be
considered to be suitable for use as a filter strip or riparian buffer
only if it, as determined by CCC:
(i) Is located adjacent to a stream, other waterbody of a permanent
nature (such as a lake, pond, or sinkhole), or wetland; excluding such
areas as gullies or sod waterways; and
(ii) Is capable, when permanent grass, forbs, shrubs or trees are
grown, of substantially reducing sediment or nutrient runoff that
otherwise would be delivered to the adjacent stream or waterbody;
(2) Be a field that has evidence of scour erosion caused by out-of-
bank flows of water, as determined by CCC:
(i) In addition, such land must:
(A) Be expected to flood a minimum of once every 10 years; and
(B) Have evidence of scour erosion as a result of such flooding.
(ii) To the extent practicable, be the actual affected cropland
areas of a field; however, the entire cropland area of an eligible
field may be enrolled if:
(A) The size of the field is 9 acres or less; or
(B) More than one third of the cropland in the field is land that
lies between the water source and the inland limit of the scour
erosion.
(iii) Or, if the full field is not eligible for enrollment under
this paragraph, be the cropland between the waterbody and inland limit
of the scour erosion together with, as determined by the Deputy
Administrator, additional areas that would otherwise be unmanageable
[[Page 24839]]
and would be isolated by the eligible areas.
(iv) Be planted to an appropriate tree species according to the
FOTG, unless tree planting is determined to be inappropriate by NRCS,
in consultation with the Forest Service, in which case the eligible
cropland shall be devoted to another acceptable permanent vegetative
cover in accordance with the FOTG;
(3) Be cropland that would facilitate a net savings in groundwater
or surface water of the agricultural operation of the producer as
determined by CCC;
(4) Be cropland in a portion of a field not enrolled in the CRP, if
more than 50 percent of the remainder of the field is enrolled as a
buffer practice, if the portion of the field not enrolled in the CRP
will be enrolled as part of the buffer practice, and if as determined
by CCC:
(i) The remainder of the field is infeasible to farm; and
(ii) The remainder of the field is enrolled at an annual payment
rate not to exceed the maximum annual calculated soil rental rate;
(5) Be contributing to the degradation of water quality or posing
an on-site or off-site environmental threat to water quality if such
land remains in production;
(6) Be devoted to certain covers, as determined by the Deputy
Administrator, that are established and maintained according to the
FOTG, provided such acreage is not required to be maintained as such
under any life-span obligations, as determined by the Deputy
Administrator;
(7) Be non-irrigated or irrigated cropland that produces or serves
as the recharge area, as determined by the Deputy Administrator, for
saline seeps, or acreage that is functionally related to such saline
seeps, or where a rising water table contributes to increased levels of
salinity at or near the ground surface;
(8) Have an EI of greater than or equal to 8 calculated by using
the weighted average of the EI's of soil map units within the field;
(9) Be within a public wellhead protection area;
(10) Be within a designated conservation priority area;
(11) Be designated as a cropped wetland and appropriate associated
acreage, as determined by the Deputy Administrator;
(12) Be cropland that, as determined by the Deputy Administrator,
is associated with noncropped wetlands and would provide significant
environmental benefits; or
(13) Notwithstanding paragraph (a)(1) of this section, be cropland
devoted to a perennial crop, as determined by CCC; such cropland will
only be eligible for continuous signup practices authorized by Sec.
1410.30 and CREP practices authorized by Sec. 1410.50(b).
(c) Notwithstanding paragraphs (a) and (b) of this section, land
shall be ineligible for enrollment if, as determined by the Deputy
Administrator, land is:
(1) Federally-owned land unless the applicant has a lease for the
contract period;
(2) Land on which the use of the land is restricted through deed or
other restriction prior to enrollment in CRP prohibiting the production
of agricultural commodities during any part of the contract term except
for eligible land under paragraph (a)(2) and (3) of this section, as
determined by CCC; or
(3) Land already enrolled in the CRP unless authorized by Sec.
1410.6(a)(3), as determined by the Deputy Administrator.
Sec. 1410.7 Duration of contracts.
(a) Except as provided in paragraphs (b) or (c) of this section,
contracts under this part shall be for a term of 10 years.
(b) In the case of land devoted to riparian buffers, filter strips,
restoration of wetlands, hardwood trees, shelterbelts, windbreaks,
wildlife corridors, or other practices deemed appropriate by CCC under
the original terms of a contract subject to this part or for land
devoted to eligible practices under a contract modified under Sec.
1410.10, the participant may specify the duration of the contract
between 10 years and 15 years in length.
(c) All contracts shall expire on September 30 of the appropriate
year.
Sec. 1410.8 Conservation priority areas.
(a) CCC may designate National conservation priority areas
according to paragraph (c) of this section.
(b) Subject to CCC review, State FSA committees, in consultation
with NRCS and the State Technical Committee, may designate conservation
priority areas within guidelines established by the Deputy
Administrator. Such designation must clearly define conservation and
environmental objectives and provide analysis of how CRP can cost-
effectively address such objectives. Generally, the total acreage of
all conservation priority areas, in aggregate, shall not total more
than 33 percent of the cropland in a State unless there are identified
and documented extraordinary environmental needs, as determined by the
Deputy Administrator.
(c) As determined by the Deputy Administrator, a region shall be
eligible for designation as a priority area only if the region has
actual significant adverse water quality, air quality, wildlife
habitat, or other natural resource impacts related to activities of
agricultural production, or if the designation helps agricultural
producers to comply with Federal and State environmental laws.
(d) Conservation priority area designations shall expire after 5
years unless re-designated, except they may be withdrawn:
(1) At the request of the appropriate State water quality agency;
or
(2) By the Deputy Administrator.
(e) In those areas designated as conservation priority areas, under
this section, cropland is considered eligible for enrollment according
Sec. 1410.6(b)(10) based on identified environmental concerns. These
concerns may include water quality, such as assisting agricultural
producers to comply with nonpoint source pollution requirements, air
quality, or wildlife habitat (especially for threatened and endangered
species or those species that may become threatened and endangered), as
determined by the Deputy Administrator.
Sec. 1410.9 Conversion to trees.
An owner or operator who has entered into a CRP contract prior to
November 28, 1990, may elect to convert areas of highly erodible
cropland, subject to such contract, that is devoted to permanent
vegetative cover, from such cover to hardwood trees, (including alley
cropping and riparian buffers of hardwood trees, where permitted by
CCC), windbreaks, shelterbelts, or wildlife corridors.
(a) For any contract modified under this section, the participant
may elect to extend such contract in accordance with the provisions of
Sec. 1410.7(b).
(b) For any contract modified under this section in which such
areas are converted to windbreaks, shelterbelts, or wildlife corridors,
the owner must agree to maintain such plantings for a time period
established by the Deputy Administrator at the time of the contract
modification.
(c) CCC shall, as it determines appropriate, pay up to 50 percent
of the eligible cost of establishing new conservation measures
authorized under this section, except that the total cost-share paid
under such contract, including cost-share assistance paid when the
original cover was established, may not exceed the amount by which CCC
would have paid had such land
[[Page 24840]]
been originally devoted to such new conservation measures.
(d) For any contract modified under this section, the participant
must participate in the Forest Stewardship Program (16 U.S.C. 2103a).
Sec. 1410.10 Restoration of wetlands.
(a) An owner or operator who entered into a CRP contract on land
that is suitable for restoration to wetlands or that was restored to
wetlands while under such contract, may, if approved by CCC, subject to
any restrictions as may be imposed by law, apply to transfer such
eligible acres subject to such contract that are devoted to an approved
cover from the CRP to the WRP. Transferred acreage shall be terminated
from the CRP effective the day a WRP easement is filed. Participants
will receive a prorated CRP annual payment for that part of the year
the acreage was enrolled in the CRP according to Sec. 1410.42. Refunds
of cost-share payments or applicable incentive payments need not be
refunded unless specified by the Deputy Administrator.
(b) An owner or operator who has enrolled acreage in the CRP may,
as determined and approved by CCC, restore suitable acres to wetlands
with cost-share assistance provided that Federal cost-share assistance
has not been received for wetland restoration on the same land. In
addition to the cost-share limitation in Sec. 1410.41, an additional
one-time financial incentive may be provided to encourage restoration
of the hydrology of the site.
Sec. 1410.11 Farmable Wetlands Program.
(a) In addition to other allowable enrollments, land may be
enrolled in this program through the Farmable Wetlands Program within
the overall Conservation Reserve Program provided for in this part.
(b) As determined by the Deputy Administrator, owners and/or
operators may enroll cropland that has been planted or considered
planted to an agricultural commodity, as defined in Sec. 1410.2 in
three of the ten most recent crop years, provided that the cropland:
(1) Is a wetland, including a converted wetland, as determined by
CCC, that does not exceed the size limitations of this section; and
(2) Subject to other provisions of this section, is buffer acreage
that provides protection for and is contiguous to the wetland.
(c) An owner or operator may not enroll in this program any
wetland, or land in a flood plain, that:
(1) Is located adjacent to a perennial riverine system wetland as
identified on the final national wetland inventory map of the
Department of the Interior; or
(2) Is located adjacent to a perennial stream identified on a 1-
24,000 scale map of the United States Geological Survey, when the area
is not delineated on a final national wetland inventory map.
(d) Total enrollment in the CRP under this section shall not exceed
1 million acres.
(e) The maximum size of a wetland enrolled under this section shall
be 10 contiguous acres of which only the first 5 acres shall be
eligible for payments.
(f) The maximum size of any buffer acreage described in paragraph
(b)(2)(ii) of this section shall be the greater of:
(1) An area three times the size of the wetland described in
paragraph (b)(1) of this section; or
(2) An area that continues no more than 150 feet from the edge of
the wetland.
(g) The maximum total acreage enrolled in the CRP under this
section, including any wetland and buffer acreage described in
paragraph (b)(2) of this section, in a tract, as determined by the
Deputy Administrator, of an owner or operator, is 40 acres.
(h) All participants subject to a CRP contract under this section
must agree to restore the hydrology of the wetland described in
paragraph (b)(1) of this section to the maximum extent possible, as
determined by the Deputy Administrator, in accordance with the FOTG.
(i) Offers for contracts under this section shall be submitted
under continuous signup provisions as authorized in Sec. 1410.30.
(j) Except as otherwise determined by the Deputy Administrator, all
other requirements of this part shall apply to enrollments under this
section, and the Deputy Administrator by contract or otherwise may add
such other requirements or conditions as are deemed necessary. Such
additional conditions include but are not limited to payment
limitations, adjusted gross income limitations, and limitations on the
amount of acreage that can be enrolled in any one county.
Sec. Sec. 1410.12-Sec. Sec. 1410.19 [Reserved]
Sec. 1410.20 Obligations of participant.
(a) All participants subject to a CRP contract must agree to:
(1) Carry out the terms and conditions of such CRP contract;
(2) Implement the conservation plan, which is part of such
contract, in accordance with the schedule of dates included in such
conservation plan unless the Deputy Administrator determines that the
participant cannot fully implement the conservation plan for reasons
beyond the participant's control, and CCC agrees to a modified plan.
However, a contract will not be terminated for failure to establish an
approved vegetative or water cover on the land if, as determined by the
Deputy Administrator:
(i) The failure to plant or establish such cover was due to
excessive rainfall, flooding, or drought;
(ii) The land subject to the contract on which the participant
could practicably plant or establish to such cover is planted or
established to such cover; and
(iii) The land on which the participant was unable to plant or
establish such cover is planted or established to such cover after the
wet or drought conditions that prevented the planting or establishment
subside;
(3) Establish temporary vegetative cover either when required by
the conservation plan or, as determined by the Deputy Administrator, if
the permanent vegetative cover cannot be timely established;
(4) Comply with part 12 of this title;
(5) Not allow grazing, harvesting, or other commercial use of any
crop from the cropland subject to such contract except for those
periods of time approved in accordance with instructions issued by the
Deputy Administrator;
(6) Establish and maintain the required vegetative or water cover
and the required practices on the land subject to such contract and
take other actions that may be required by CCC to achieve the desired
environmental benefits and to maintain the productive capability of the
soil throughout the contract period;
(7) Comply with noxious weed laws of the applicable State or local
jurisdiction on such land;
(8) Control on land subject to such contract all weeds, insects,
pests and other undesirable species to the extent necessary to ensure
that the establishment and maintenance of the approved cover as
necessary or may be specified in the CRP conservation plan and to avoid
an adverse impact on surrounding land, taking into consideration water
quality, wildlife, and other needs, as determined by the Deputy
Administrator; and
(9) Be jointly and severally responsible, if the participant has a
share of the payment greater than zero, with the other contract
participants in compliance with the provisions of such contract and the
provisions of this part and for any refunds or payment adjustments that
may be required for
[[Page 24841]]
violations of any of the terms and conditions of the CRP contract and
this part.
Sec. 1410.21 Obligations of the Commodity Credit Corporation.
CCC shall, subject to the availability of funds:
(a) Share up to 50 percent of the cost with participants of
establishing eligible practices specified in the conservation plan at
the levels and rates of cost-sharing determined in accordance with the
provisions of this part; and
(b) Pay to the participant for a period of years not in excess of
the contract period an annual rental payment, including applicable
incentive payments, in such amounts as may be specified in the CRP
contract.
Sec. 1410.22 CRP conservation plan.
(a) The producer shall obtain a CRP conservation plan that complies
with CCC guidelines and is approved by the conservation district for
the land to be entered in the CRP. If the conservation district
declines to review the CRP conservation plan, or disapproves the
conservation plan, such approval may be waived by CCC.
(b) The practices included in the CRP conservation plan and agreed
to by the participant must cost-effectively reduce erosion necessary to
maintain the productive capability of the soil, improve water quality,
protect wildlife or wetlands, protect a public well head, or achieve
other environmental benefits as applicable.
(c) If applicable, a tree planting plan shall be developed and
included in the CRP conservation plan. Such tree planting plan may
allow up to 3 years to complete plantings if 10 or more acres of
hardwood trees are to be established.
(d) If applicable, the CRP conservation plan shall address the
goals included in the conservation priority area designation authorized
under Sec. 1410.8.
(e) All CRP conservation plans and revisions of such plans shall be
subject to the approval of CCC.
(f) Mid-cover management shall be conducted according to an
approved conservation plan as part of the CRP contractual obligation
such as light discing and burning as determined by the Deputy
Administrator.
Sec. 1410.23 Eligible practices.
(a) Eligible practices are those practices specified in the
conservation plan that meet all standards needed to cost-effectively:
(1) Establish permanent vegetative or water cover, including
introduced or native species of grasses and legumes, forest trees, and
permanent wildlife habitat;
(2) Meet other environmental benefits, as applicable, for the
contract period; and
(3) Accomplish other purposes of the program.
(b) Water cover is eligible cover for purposes of paragraph (a) of
this section only if approved by the Deputy Administrator for purposes
such as the enhancement of wildlife or the improvement of water
quality. Such water cover shall not include ponds for the purpose of
watering livestock, irrigating crops, or raising aquiculture for
commercial purposes.
Sec. Sec. 1410.24-1410.29 [Reserved]
Sec. 1410.30 Signup.
Offers for contracts shall be submitted only during signup periods
as announced periodically by the Deputy Administrator, except that CCC
may hold a continuous signup for land to be devoted to particular uses,
as CCC deems necessary. Generally, continuous signup is limited to
those offers that would otherwise rank highly under Sec. 1410.31(b)
and may include high priority practices such as filter strips, riparian
buffers, shelterbelts, field windbreaks, and living snow fences, grass
waterways, shallow water areas for wildlife, salt-tolerant vegetation,
and practices to benefit certain approved public wellhead protection
areas.
Sec. 1410.31 Acceptability of offers.
(a) Except as provided in paragraph (c) of this section, producers
may submit offers for the amounts they are willing to accept as rental
payments to enroll their acreage in the CRP. The offers may, to the
extent practicable, be evaluated on a competitive basis in which the
offers selected will be those where the greatest environmental benefits
relative to cost are generated, and provided that the offer is not in
excess of the maximum acceptable payment rate established by the Deputy
Administrator for the for the area offered. Acceptance or rejection of
any offer, however, shall be in the sole discretion of the CCC and
offers may be rejected for any reason as determined needed to
accomplish the goals of the program.
(b) In evaluating contract offers, different factors, as determined
by CCC, may be considered from time to time for priority purposes to
accomplish the goals of the program. Such factors may include, but are
not limited to:
(1) Soil erosion;
(2) Water quality (both surface and ground water);
(3) Wildlife benefits;
(4) Soil productivity;
(5) Likelihood that enrolled land will remain in non-agriculture
use beyond the contract period, considering, for example, tree
planting, permanent wildlife habitat, or commitments by a participant
to a State or other entity to extend the conservation plan;
(6) Air quality; and
(7) Cost of enrolling acreage in the program.
(c) Acreage determined eligible for continuous signup, as provided
in Sec. 1410.30, may be automatically accepted in the program if the:
(1) Land is eligible under Sec. 1410.6, as determined by the
Deputy Administrator;
(2) A producer is eligible under Sec. 1410.5; and
(3) A producer accepts either the maximum payment rate CCC is
willing to offer to enroll the acreage in the program or a lesser rate.
Sec. 1410.32 CRP contract.
(a) In order to enroll land in the CRP, the participant must enter
into a contract with CCC.
(b) The CRP contract is comprised of:
(1) The terms and conditions for participation in the CRP;
(2) The CRP conservation plan; and
(3) Any other materials or agreements determined necessary by CCC.
(c)(1) In order to enter into a CRP contract, the producer must
submit an offer to participate as provided in Sec. 1410.30;
(2) An offer to enroll land in the CRP shall be irrevocable for
such period as is determined and announced by CCC. The producer shall
be liable to CCC for liquidated damages if the applicant revokes an
offer during the period in which the offer is irrevocable as determined
by the Deputy Administrator. CCC may waive payment of such liquidated
damages if CCC determines that the assessment of such damages, in a
particular case, is not in the best interest of CCC and the program.
(d) The CRP contract must, within the dates established by CCC, be
signed by:
(1) The producer; and
(2) The owners of the cropland to be placed in the CRP and other
eligible participants, if applicable.
(e) The Deputy Administrator is authorized to approve CRP contracts
on behalf of CCC.
(f) CRP contracts may be terminated by CCC before the full term of
the contract has expired if:
(1) The owner loses control of or transfers all or part of the
acreage under contract and the new owner does not wish to continue the
contract;
[[Page 24842]]
(2) The participant voluntarily requests in writing to terminate
the contract and obtains the approval of CCC according to terms and
conditions as determined by CCC;
(3) The participant is not in compliance with the terms and
conditions of the contract;
(4) Acreage is enrolled in another Federal, State or local
conservation program;
(5) The CRP practice fails or is not established after a certain
time period, as determined by the Deputy Administrator, and the cost of
restoring the practice outweighs the benefits received from the
restoration;
(6) The CRP contract was approved based on erroneous eligibility
determinations; or
(7) CCC determines that such a termination is needed in the public
interest.
(g)(1) Contracts for land enrolled in CRP before January 1, 1995,
that have been continuously in effect may be unilaterally terminated by
all CRP participants on a contract except for contract acreage:
(i) Located within a certain distance determined appropriate by the
applicable FOTG of a perennial stream, or other permanent waterbody to
reduce pollution and to protect surface and subsurface water quality;
(ii) On which a CRP easement is filed;
(iii) That is considered to be a wetland by USDA according to part
12 of this title;
(iv) Located within a wellhead protection area;
(v) That is subject to frequent flooding, as determined by the
Deputy Administrator;
(vi) That may be required to serve as a wetland buffer according to
the FOTG to protect the functions and values of a wetland; or
(vii) On which there exist one or more of the following practices,
installed or developed as a result of participation in the CRP or as
otherwise required by the conservation plan:
(A) Grass waterways;
(B) Filter strips;
(C) Shallow water areas for wildlife;
(D) Bottom land timber established on wetlands;
(E) Field windbreaks; and
(F) Shelterbelts.
(2) With respect to terminations under this paragraph:
(i) Any land for which an early termination is sought by the
participant must have an EI of 15 or less;
(ii) The termination shall become effective 60 days from the date
the participant submits notification to CCC of the participant's desire
to terminate the contract;
(iii) Acreage terminated under this provision is eligible to be re-
offered for CRP during future signup periods, provided that the acreage
otherwise meets the current eligibility criteria; and
(iv) Participants must meet conservation compliance requirements of
part 12 of this title to the extent applicable to other land.
(h) Except as allowed and approved by CCC where the new owner of
land enrolled in CRP is a Federal agency that agrees to abide by the
terms and conditions of the terminated contract, the participant in a
contract that has been terminated must refund all or part of the
payments made with respect to the contract plus interest thereon, as
determined by CCC, and shall pay liquidated damages as provided for in
the contract. CCC may permit the amount to be repaid to be reduced to
the extent that such a reduction will not impair the purposes of the
program. Further, a refund of all payments need not be required from a
participant who is otherwise in full compliance with the CRP contract
when the land is purchased by or for the United States, as determined
by CCC.
Sec. 1410.33 Contract modifications.
(a) As agreed between CCC and the participant, a CRP contract may
be modified in order to:
(1) Decrease acreage in the CRP;
(2) Permit the production of an agricultural commodity under
extraordinary circumstances during a crop year on all or part of the
land subject to the CRP contract as determined by the Deputy
Administrator;
(3) Facilitate the practical administration of the CRP; or
(4) Accomplish the goals and objectives of the CRP, as determined
by the Deputy Administrator.
(b) CCC may modify CRP contracts to add, delete, or substitute
practices when, as determined by the Deputy Administrator:
(1) The installed practice failed to adequately provide for the
desired environmental benefit through no fault of the participant; or
(2) The installed measure deteriorated because of conditions beyond
the control of the participant; and
(3) Another practice will achieve at least the same level of
environmental benefit.
(c) Offers to extend contracts may be made as allowed by law.
(d) CCC may terminate a CRP contract if the participant agrees to
such termination and CCC determines such termination to be in the
public interest.
Sec. Sec. 1410.34-1410.39 [Reserved]
Sec. 1410.40 Cost-share payments.
(a) Cost-share payments shall be made available upon a
determination by CCC that an eligible practice, or an identifiable unit
thereof, has been established in compliance with the appropriate
standards and specifications.
(b) Except as otherwise provided for in this part, cost-share
payments may be made only for the cost-effective establishment or
installation of an eligible practice, as determined by CCC.
(c) Except as provided in paragraph (d) of this section, cost-share
payments shall not be made to the same owner or operator on the same
acreage for any eligible practices that have been previously
established, or for which such owner or operator has received cost-
share assistance from any Federal agency.
(d) Except as provided for under Sec. 1410.9(c), cost-share
payments may be authorized for the replacement or restoration of
practices for which cost-share assistance has been previously allowed
under the CRP, only if:
(1) Replacement or restoration of the practice is needed to achieve
adequate erosion control, enhance water quality, wildlife habitat, or
increase protection of public wellheads; and
(2) The failure of the original practice was due to reasons beyond
the control of the participant.
(e) The cost-share payment made to a participant shall not exceed
the participant's actual contribution to the cost of establishing the
practice and the amount of the cost-share may not be an amount that,
when added to such assistance from other sources, exceeds the cost of
the practices.
(f) CCC shall not make cost-share payments with respect to a CRP
contract if any other Federal cost-share assistance has been, or is
being, made with respect to the establishment of the cover crop on land
subject to such contract.
Sec. 1410.41 Levels and rates for cost-share payments.
(a) As determined by the Deputy Administrator, CCC shall not pay
more than 50 percent of the actual or average cost of establishing
eligible practices specified in the conservation plan. CCC may allow
cost-share payments for maintenance costs, consistent with the
provisions of Sec. 1410.40 and CCC may determine the period and amount
of such cost-share payments.
(b) The average cost of performing a practice may be determined by
CCC based on recommendations from the
[[Page 24843]]
State Technical Committee. Such cost may be the average cost in a
State, a county, or a part of a State or county, as determined by the
Deputy Administrator.
(c) Except as otherwise provided, a participant may, in addition to
any payment under this part, receive cost-share assistance, rental
payments, or tax benefits from a State or a private organization in
return for enrolling lands in CRP. However, as provided under Sec.
1410.40(f), a participant may not receive or retain CRP cost-share
assistance if other Federal cost-share assistance is provided for such
acreage, as determined by the Deputy Administrator. Further, under no
circumstances may the cost-share payments received under this part, or
otherwise, exceed the cost of the practice, as determined by CCC.
Sec. 1410.42 Annual rental payments.
(a) Subject to the availability of funds, annual rental payments
shall be made in such amount and in accordance with such time schedule
as may be agreed upon and specified in the CRP contract.
(b) Annual rental payments, except for land accepted that was
formerly enrolled under the WBP, include a payment based on a weighted
average soil rental rate or marginal pastureland rental rate, as
appropriate, and an incentive payment as a portion of the annual
payment of certain practices, as determined by the Deputy
Administrator. Payments for land accepted that was formerly enrolled
under the WBP are limited to annual rental payments received under the
WBP.
(c) The annual rental payment shall be divided among the
participants on a single contract as agreed to in such contract.
(d) The maximum amount of rental payments that a person may receive
under the CRP for any fiscal year shall not exceed $50,000. The
regulations set forth at part 1400 of this chapter shall be applicable
in making eligibility and ``person'' determinations as they apply to
payment limitations under this part.
(e) In the case of a contract succession, annual rental payments
shall be divided between the predecessor and the successor participants
as agreed to among the participants and approved by CCC. If there is no
agreement among the participants, annual rental payments shall be
divided in such manner deemed appropriate by the Deputy Administrator
and such distribution may be prorated based on the actual days of
ownership of the property by each party.
(f) CCC shall, when appropriate, prepare a schedule for each county
that shows the maximum soil rental rate CCC may pay which may be
supplemented to reflect special contract requirements. As determined by
the Deputy Administrator, such schedule will be calculated based on the
relative productivity of soils within the county using NRCS data and
local FSA average cash rental estimates. The schedule will be available
in the local FSA office and, as determined by the Deputy Administrator,
shall indicate, when appropriate, that:
(1) Offers of contracts by producers who request rental payments
greater than the schedule for their soil(s) will be rejected;
(2) Offers of contracts submitted under continuous signup
authorized at Sec. 1410.30 may be accepted without further evaluation
when the requested rental rate is less than or equal to the calculated
weighted soil rental rate, based on the three predominant soils listed;
and
(3) Otherwise qualifying offers shall be ranked competitively based
on factors established under Sec. 1410.31 of this part in order to
provide the most cost-effective environmental benefits, as determined
by the Deputy Administrator.
(g) Additional financial incentives may be provided to producers
who offer contracts expected to provide especially high environmental
benefits, as determined by the Deputy Administrator.
Sec. 1410.43 Method of payment.
Except as provided in Sec. 1410.50, payments made by CCC under
this part may be made in cash or other methods of payment in accordance
with part 1401 of this chapter, unless otherwise specified by CCC.
Sec. 1410.44 Adjusted Gross Income.
Benefits under this part shall not be available to persons whose
adjusted gross income exceeds 2.5 million dollars annually as
determined under the standards set out in part 1400 of this chapter
which shall be applicable in making adjusted gross income
determinations as they apply to the CRP.
Sec. Sec. 1410.45-1410.49 [Reserved]
Sec. 1410.50 Enhancement programs.
(a) For contracts to which a State, political subdivision, or
agency thereof, has succeeded in connection with an approved
conservation reserve state enhancement program, payments shall be made
in the form of cash only. The provisions that limit the amount of
payments per year that a person may receive under this part shall not
be applicable to payments received by such State, political
subdivision, or agency thereof in connection with agreements entered
into under such enhancement programs carried out by such State,
political subdivision, or agency thereof that has been approved for
that purpose by CCC.
(b) CCC may enter into other conservation reserve enhancement
program agreements in accordance with terms deemed appropriate by CCC,
with a State, political subdivision, or agency thereof, to use the CRP
to cost-effectively further specific conservation and environmental
objectives of that State and the nation.
Sec. 1410.51 Transfer of land.
(a)(1) If a new owner or operator purchases or obtains the right
and interest in, or right to occupancy of, the land subject to a CRP
contract, as determined by the Deputy Administrator, such new owner or
operator, upon the approval of CCC, may become a participant to a new
CRP contract with CCC for the transferred land.
(2) For the transferred land, if the new owner or operator becomes
a successor to the existing CRP contract, the new owner or operator
shall assume all obligations of the CRP contract of the previous
participant.
(3) If the new owner or operator is approved as a successor to a
CRP contract with CCC, then, except as otherwise determined appropriate
by the Deputy Administrator:
(i) Cost-share payments shall be made to the past or present
participant who established the practice; and
(ii) Annual rental payments to be paid during the fiscal year when
the land was transferred shall be divided between the new participant
and the previous participant in the manner specified in Sec. 1410.42.
(b) If a participant transfers all or part of the right and
interest in, or right to occupancy of, land subject to a CRP contract
and the new owner or operator does not become a successor to such
contract within 60 days, or such other time as the Deputy Administrator
determines to be appropriate, of such transfer, such contract shall be
terminated with respect to the affected portion of such land and the
original participant:
(1) Forfeits all rights to any future payments for that acreage;
(2) Shall refund all previous payments received under the contract
by the participant or prior participants, plus interest, except as
otherwise specified
[[Page 24844]]
by the Deputy Administrator. The provisions of Sec. 1410.32(h) shall
apply.
(c) Federal agencies acquiring property, by foreclosure or
otherwise, that contains CRP contract acreage cannot be a party to the
contract by succession. However, through an addendum to the CRP
contract, if the current operator of the property is one of the
contract participants, such operator may, as permitted by CCC, continue
to receive payments under such contract if:
(1) The property is maintained in accordance with the terms of the
contract;
(2) Such operator continues to be the operator of the property; and
(3) Ownership of the property remains with such federal agency.
Sec. 1410.52 Violations.
(a)(1) If a participant fails to carry out the terms and conditions
of a CRP contract, CCC may terminate the CRP contract.
(2) If the CRP contract is terminated by CCC in accordance with
this paragraph:
(i) The participant shall forfeit all rights to further payments
under such contract and refund all payments previously received
together, plus interest; and
(ii) Pay liquidated damages to CCC in an amount as specified in the
contract.
(b) If the Deputy Administrator determines such failure does not
warrant termination of such contract, the Deputy Administrator may
authorize relief as the Deputy Administrator deems appropriate.
(c) CCC may reduce a demand for a refund under this section to the
extent CCC determines that such relief would be appropriate and will
not deter the accomplishment of the goals of the program.
Sec. 1410.53 Executed CRP contract not in conformity with
regulations.
If, after a CRP contract is approved by CCC, it is discovered that
such CRP contract is not in conformity with this part, these
regulations shall prevail, and CCC may, at its sole discretion,
terminate or modify the CRP contract, effective immediately or at a
later date as CCC determines appropriate.
Sec. 1410.54 Performance based upon advice or action of the
Department.
The provisions of Sec. 718.8 of this chapter relating to
performance based upon the action or advice of an authorized
representative of the Department shall be applicable to this part, and
may be considered as a basis to provide relief to persons subject to
sanctions under this part to the extent that relief is otherwise
required by this part.
Sec. 1410.55 Access to land under contract.
(a) Any representative of the U.S. Department of Agriculture, or
designee thereof, shall, for purposes related to this program, be
provided by the offeror or participant as the case may be, with access
to land that is:
(1) The subject of an application for a contract under this part;
or
(2) Under contract or otherwise subject to this part.
(b) For land identified in paragraph (a) of this section, the
participant or producer shall provide such representatives with access
to examine records for the land to determine land classification,
erosion rates, or other purposes and to determine whether it is in
compliance with the terms and conditions of the CRP contract.
Sec. 1410.56 Division of payments and provisions about tenants and
sharecroppers.
(a) Payments received under this part shall be divided as specified
in the applicable contract and CCC shall ensure that producers who
would have an interest in acreage being offered receive treatment that
is equitable, as determined by the Deputy Administrator. CCC may refuse
to enter into a contract when there is a disagreement among persons
seeking enrollment as to a person's eligibility to participate in the
contract as a tenant and there is insufficient evidence to indicate
whether the person seeking participation as a tenant does or does not
have an interest in the acreage offered for enrollment in the CRP.
(b) CCC may remove an operator or tenant from a CRP contract when:
(1) The operator or tenant requests in writing to be removed from
the CRP contract;
(2) The operator or tenant files for bankruptcy and the trustee or
debtor in possession fails to affirm the contract, to the extent
permitted by applicable bankruptcy laws;
(3) The operator or tenant dies during the contract period and the
administrator of the estate fails to succeed to the contract within a
period of time determined by the Deputy Administrator; or
(4) A court of competent jurisdiction orders the removal from the
CRP contract of the operator or tenant and such order is received by
FSA, as determined by the Deputy Administrator.
(c) In addition to paragraph (b) of this section, tenants shall
maintain their tenancy throughout the contract period in order to
remain on a contract. Tenants who fail to maintain tenancy on the
acreage under contract, including failure to comply with applicable
State law, may be removed from a contract by CCC. CCC shall assume the
tenancy is being maintained unless notified otherwise by a party to
contract.
Sec. 1410.57 Payments not subject to claims.
Subject to part 1403 of this chapter, any cost-share or annual
payment or portion thereof due any person under this part shall be
allowed without regard to questions of title under State law, and
without regard to any claim or lien in favor of any creditor, except
agencies of the United States Government.
Sec. 1410.58 Assignments.
Participants may assign the right to receive such cash payments, in
whole or in part, as provided in part 1404 of this chapter.
Sec. 1410.59 Appeals.
(a) Except as provided in paragraph (b) of this section, a
participant or person seeking participation may appeal or request
reconsideration of an adverse determination in accordance with the
administrative appeal regulations at parts 11 and 780 of this title.
(b) Determinations by NRCS assigned to make such determination for
the Deputy Administrator may be appealed in accordance with procedures
established under part 614 of this title or otherwise established by
NRCS.
Sec. 1410.60 Scheme or device.
(a) If CCC determines that a person has employed a scheme or device
to defeat the purposes of this part, or any part, of any program,
payment otherwise due or paid such person during the applicable period
may be required to be refunded with interest thereon as determined
appropriate by CCC.
(b) A scheme or device includes, but is not limited to, coercion,
fraud, misrepresentation, depriving any other person of cost-share
assistance or annual rental payments, or obtaining a payment that
otherwise would not be payable.
(c) A new owner or operator or tenant of land subject to this part
who succeeds to the contract responsibilities shall report in writing
to CCC any interest of any kind in the land subject to this part that
is retained by a previous participant. Such interest shall include a
present, future, or conditional interest, reversionary interest, or any
option, future or present, on such land, and any interest of any lender
in such land where the lender has, will, or can
[[Page 24845]]
legally obtain, a right of occupancy to such land or an interest in the
equity in such land other than an interest in the appreciation in the
value of such land occurring after the loan was made. Failure to fully
disclose such interest shall be considered a scheme or device under
this section.
Sec. 1410.61 Filing of false claims.
If CCC determines that any participant has knowingly supplied false
information or has knowingly filed a false claim, such participant
shall be ineligible for payments under this part with respect to the
program year in which the false information or claim was filed and the
contract may be terminated, in which case a full refund of all prior
payments may be demanded. False information or false claims include,
but are not limited to, claims for payment for practices that do not
comply with the conservation plan. Any amounts paid under these
circumstances shall be refunded, together plus with interest as
determined by CCC, and any amounts otherwise due to the participant
shall be withheld. The remedies provided for in this section shall be
in addition to any and all other remedies, criminal and/or civil, that
may apply.
Sec. 1410.62 Miscellaneous.
(a) Except as otherwise provided in this part, in the case of
death, incompetency, or disappearance of any participant, any payments
due under this part shall be paid to the participant's successor(s)
under part 707 of this title.
(b) Unless otherwise specified in this part, payments under this
part shall be subject to the requirements of part 12 of this title
concerning highly erodible land and wetland conservation and payments.
(c) Any remedies permitted CCC under this part shall be in addition
to any other remedy, including, but not limited to, criminal remedies,
or actions for damages in favor of CCC, or the United States, as may be
permitted by law; provided further the Deputy Administrator may add to
the contract such additional terms as needed to enforce these
regulations that shall be binding on the parties and may be enforced to
the same degree as provisions of these regulations.
(d) Absent a scheme or device to defeat the purpose of the program,
when an owner loses control of CRP acreage due to foreclosure and the
new owner chooses not to continue the contract in accordance with Sec.
1410.51, refunds shall not be required from any participant on the
contract to the extent that the Deputy Administrator determines that
forgiving such repayment is appropriate in order to provide fair and
equitable treatment.
(e) Cropland enrolled in CRP shall be classified as cropland for
the time period enrolled in CRP and, after the time period of
enrollment, may be removed from such classification upon a
determination by the county committee that such land no longer meets
the definition in part 718 of this title.
(f) Research projects may be submitted by the State committee and
authorized by the Deputy Administrator to further the purposes of CRP.
The research projects must include objectives that are consistent with
this part, provide economic and environmental information, not
adversely affect local agricultural markets, and be conducted and
monitored by a bona fide research entity, as determined by the Deputy
Administrator.
Sec. 1410.63 Permissive uses.
(a) Unless otherwise specified by the Deputy Administrator, no uses
of any kind are authorized on designated CRP acreage during the
contract period.
(b) Commercial shooting preserves may be operated on CRP acreage
provided:
(1) The commercial shooting preserve is licensed by a State agency
such as the State fish and wildlife agency or State department of
natural resources;
(2) The commercial shooting preserve is operated in a manner
consistent with the applicable State agency rules governing commercial
shooting preserves;
(3) CRP cover is maintained according to the conservation plan; and
(4) No barrier fencing or boundary limitations exist that prohibit
wildlife access to or from the CRP acreage unless required by State
law.
(c) The following activities may be permitted on CRP enrolled land:
(1) Managed haying and grazing, including the harvest of biomass:
(i) In exchange for a reduction of the annual payment in an amount
determined by the Deputy Administrator;
(ii) Not to exceed once every three years after the CRP vegetative
cover has been established; and
(iii) According to an approved CRP conservation plan consistent
with the conservation of soil, water quality, and wildlife habitat
(including habitat during nesting and brood rearing seasons) and in
accordance with FOTG standards.
(2) Managed grazing that is incidental to the gleaning of crop
residue, but only in exchange for a reduction in the annual rental
payment, as determined appropriate by the Deputy Administrator.
(3) Wind turbines on CRP land installed in numbers and locations as
determined appropriate by the Deputy Administrator considering the
location, size, and other physical characteristics of the land, the
extent to which the land contains wildlife, wildlife habitat, and the
purposes of the CRP.
(4) Spot grazing, if necessary for control of weed infestation, not
to exceed a 30-day period according to an approved conservation plan,
but only in exchange for a payment reduction determined by the Deputy
Administrator.
(5) Forestry maintenance such as pruning, thinning, and timber
stand improvement on lands converted to forestry use only in accordance
with a conservation plan and in exchange for an applicable reduction in
the annual rental payment as determined by the Deputy Administrator.
(6) The sale of carbon, water quality, or other environmental
credits, as determined by the Deputy Administrator.
Signed at Washington, DC, on May 2, 2003.
James R. Little,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 03-11405 Filed 5-5-03; 3:35 pm]
BILLING CODE 3410-05-P