[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1466.23]

[Page 624-625]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1466--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM--Table of Contents
 
                    Subpart B--Contracts and Payments
 
Sec.  1466.23  Cost-share rates and incentive payment levels.

    (a) Determining Cost-share payment rates.
    (1) The maximum cost-share payments made to a participant under the 
program will not be more than 75 percent of the actual cost of a 
structural practice, as determined by the State Conservationist or 
Designated Conservationist, except that for a Limited Resource Farmer or 
Rancher or Beginning Farmer and Rancher cost-share payments may be up to 
90 percent, as determined by the State Conservationist or Designated 
Conservationist.
    (2) The cost-share payments to a participant under the program will 
be reduced proportionately below the rate established by the State 
Conservationist or Designated Conservationist, or the cost-share limit 
as set in paragraph (c) of this section, to the extent that total 
financial contributions for a structural practice from all public and 
private sources exceed 100 percent of the actual cost of the practice.
    (b) Determining Incentive Payment levels. NRCS may provide incentive 
payments to participants for performing a land management practice or to 
develop a comprehensive nutrient management plan in an amount and at a 
rate necessary to encourage a participant to perform the practice that

[[Page 625]]

would not otherwise be initiated without government assistance. The 
State Conservationist or Designated Conservationist, with the advice of 
the State Technical Committee or Local Work Groups, may consider 
establishing limits on the extent of land management practices that may 
be included in a contract.
    (c) Cost-share rates and incentive payment levels for conservation 
practices will be established by the State Conservationist or Designated 
Conservationist with advice from the State Technical Committee and Local 
Work Groups. The State Conservationist or Designated Conservationist 
will develop a list of eligible conservation practices with varied cost-
share rates and incentive payment levels that considers:
    (1) The conservation practice cost-effectiveness and innovation,
    (2) The degree of treatment of priority natural resource concerns,
    (3) The number of resource concerns the practice will address,
    (4) The longevity of the practice's environmental benefits, and
    (5) Other pertinent local considerations.
    (d) Practice cost lists that include any structural practice with 
greater than 50 percent cost share rate are to be approved by the State 
Conservationist with concurrence of the Regional Conservationist.