[Code of Federal Regulations]
[Title 7, Volume 7, Parts 700 to 899]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR701.40]

[Page 32-33]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 701--CONSERVATION AND ENVIRONMENTAL PROGRAMS--Table of Contents
 
                  Subpart--Forestry Incentives Program
 
Sec. 701.40  Long-term agreements.

    (a) The period of a long-term agreement will be for not less than 
three (3) years nor more than 10 (10) years. The county committee and 
the signatories to the agreement in consultation with the State forestry 
representative, will mutually determine the scheduling of essential 
practices and practice cost-sharing over the period of the agreement.
    (b) The long-term agreement will be based on a forest management 
plan for the land which has been developed by the service forester.
    (c) The long-term agreement will provide that the owner will carry 
out those measures in the forest management plan which are determined to 
be essential whether or not cost-sharing is approved for such measures.
    (d) The level of cost-sharing in effect for practices in all years 
of a long-term agreement shall be the level in effect for the beginning 
year of the agreement. The rate of cost-sharing for payment purposes for 
such practice will be based on the average cost of performing the 
practice at the time the practice is performed.
    (e) A long-term agreement may be canceled for failure to comply with 
the terms of the agreement if, after consulting with the service 
forester, the county committee and State committee find that the 
seriousness of the irregularities warrant such action. If the agreement 
is canceled, the signatories to the agreement are jointly and severally 
responsible for refunding all cost-shares paid and will forfeit all 
rights to further payments under the agreement. In such a case no other 
refund or forfeiture provisions of these regulations apply.
    (f) A long-term agreement may be revised in accordance with 
instructions issued by the Deputy Administrator, State and County 
Operations, where there is a change in status of the participants or the 
land under agreement.
    (g) An eligible person who acquires control of land under an 
approved agreement may elect to become a successor in interest under 
such agreement.
    (h) An agreement will be terminated with respect to land for which 
loss of control has occurred and where the person acquiring control of 
such land elects not to become a successor in interest under the 
agreement. If the loss of control is for reasons beyond the

[[Page 33]]

control of the signatories to the agreement, the county committee will 
determine whether or not any cost-shares previously paid shall be 
refunded, but in no event shall the refund be greater than would be 
required in cases where loss of control is voluntary. If the loss of 
control is voluntary on the part of the signatories, they will be 
jointly and severally responsible for refunding all cost-shares paid and 
will forfeit all rights to further payments, with respect to the land 
for which control is lost. A refund will not be required for cost-shares 
where, the county committee and the State committee determine, after 
consulting with the service forester, that failure to perform the 
remaining practices in the agreement will not impair the effectiveness 
of the practices which have been performed and that the completed 
practices will provide forestry benefits consistent with the cost-shares 
which have been paid.
    (i) An agreement may be terminated if, after considering the 
recommendation of the service forester, the county committee recommends 
and the State committee concurs that such action is in the public 
interest.