[Code of Federal Regulations]
[Title 7, Volume 7]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR701.16]

[Page 27-28]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 701--CONSERVATION AND ENVIRONMENTAL PROGRAMS--Table of Contents
 
               Subpart--Agricultural Conservation Program
 
Sec. 701.16  Long-term agreements.

    (a) The period of a long-term agreement will be for not less than 
three (3) program years nor more than ten (10) program years. The county 
committee and the signatories to the agreement in consultation with the 
Soil Conservation Service representative, will mutually determine the 
period of the agreement.
    (b) The long-term agreement will be based on a conservation plan of 
operations for the farm or ranch or portion thereof which has been 
approved by the Soil Conservation District (or comparable district) or, 
for farms or ranches not located in a Soil Conservation District (or 
comparable district), by an appropriate State Official or the Soil 
Conservation Service, as applicable.
    (c) The long-term agreement will provide that the farmer or rancher 
will carry out those measures in the conservation plan of operations 
which are determined to be essential to meeting the basic conservation 
needs of the farm or ranch, or portion thereof, whether or not cost-
sharing is approved for such measures.
    (d) The owner of the farm or ranch will be required to be a 
signatory to a long-term agreement, whether or not that person 
contributes to the cost of approved practices thereon.
    (e) Any signatory to a long-term agreement who is not an owner of 
the farm or ranch must provide assurance of control of the land for the 
duration of the period of the agreement.
    (f) The level of cost-sharing, as provided in Sec. 701.13, 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.
    (g) A long-term agreement may be cancelled for failure to comply 
with the terms of the agreement if, after consulting with the Soil 
Conservation District (or comparable district) board or, if none exists, 
with a representative of the Soil Conservation Service, the county 
committee and State committee find that the seriousness of the 
irregularities warrant such action. If the agreement is cancelled, 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

[[Page 28]]

agreement. In such a case, no other refund or forfeiture provisions of 
these regulations apply.
    (h) A long-term agreement may be revised in accordance with 
instructions issued by the Deputy Administrator, State and County 
Operations, by mutual agreement between the signatories to the agreement 
and the county committee based on approved changes in the Conservation 
plan of operations for the farm or ranch.
    (i) An eligible person who acquires control of land under an 
approved agreement may elect to become a successor in interest under 
such agreement.
    (j) 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 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 to the agreement, the signatories 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. However, a refund will not be required for 
cost-shares where, the county committee and the State committee 
determine, after consulting with a representative of the Soil 
Conservation Service, 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 have provided 
conservation benefits consistent with the cost-shares which have been 
paid.
    (k) An agreement may be terminated by the county committee, after 
considering the recommendation of the Soil Conservation District (or 
comparable district) board or, if none exists, with a representative of 
the Soil Conservation Service, if such action is in the public interest. 
The county committee will determine the amount of cost-shares previously 
paid that shall be refunded.
    (l) An agreement may be terminated by the county committee upon the 
written request of the participant(s) to an agreement where no cost-
shares have been paid for any of the scheduled practices and where the 
participant(s) does(do) not intend to perform any of the scheduled 
practices.