[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: 7CFR1467.8]

[Page 633-634]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1467--WETLANDS RESERVE PROGRAM--Table of Contents
 
Sec.  1467.8  Compensation for easements.

    (a) Establishment of rates. (1) The State Conservationist, in 
consultation with the State Technical Committee, shall determine 
easement payment rates to be applied to specific geographic areas within 
the State or to individual easement areas.
    (2) In order to provide for better uniformity among States, the 
Regional Conservationist and Chief may review and adjust, as 
appropriate, State or other geographically based easement payment rates.
    (b) Determination of easement payment rates. (1) Easement payment 
rates will be based upon analyses of the values of the lands when used 
for agricultural purposes. The landowner will receive the lesser of the 
following:

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    (i) the geographic area rate;
    (ii) the value based on a market appraisal analysis/assessment; or
    (iii) the landowner offer.
    (2) Each State Conservationist will determine the easement payment 
rates using the best information which is readily available in that 
State for assessing the values of land for agricultural purposes. Such 
information may include: soil types, type(s) of crops capable of being 
grown, production history, location, real estate market values, 
appraisals and market analyses, and tax rates and assessments. The State 
Conservationist may consult with other Federal agencies, real estate 
market experts, appraisers, local tax authorities, and other entities or 
persons which may provide information on productivity and market 
conditions.
    (3) Easement payments for non-permanent easements will be less than 
those for permanent easements because the quality and duration of the 
ecological benefits derived from a non-permanent easement are 
significantly less than those derived from a permanent easement on the 
same land. Additionally, the economic value of the easement interests 
being acquired is less for a non-permanent easement than that associated 
with a permanent easement. An easement payment for the short-term 30-
year easement shall not be less than 50 percent nor more than 75 percent 
of that which would have been paid for a permanent easement.
    (c) Maximum payments. In order to ensure that limited program funds 
are expended to maximize program benefits, the State Conservationist, in 
consultation with the State Technical Committee, may establish a maximum 
easement payment for any one easement within a State or for geographic 
areas within a State.
    (d) Preliminary estimates of easement payments. Upon request of the 
landowner prior to filing an application for enrollment, a landowner may 
be appraised of the maximum easement payment rates.
    (e) Acceptance of offered easement compensation. (1) The Department 
will not acquire any easement unless the landowner accepts the amount of 
the easement payment which is offered by the Department. The easement 
payment may or may not equal the fair market value of the interests and 
rights to be conveyed by the landowner under the easement. By 
voluntarily participating in the program, a landowner waives any claim 
to additional compensation based on fair market value.
    (2) Annual easement payments may be made in no less than 5 annual 
payments and no more than 30 annual payments of equal or unequal size.
    (f) Reimbursement of a landowner's expenses. For completed easement 
conveyances, the Department will reimburse landowners for their fair and 
reasonable expenses, if any, incurred for surveying and related costs, 
as determined by the Department. The State Conservationist, in 
consultation with the State Technical Committee, may establish maximum 
payments to reimburse landowners for reasonable expenses.
    (g) Tax implications of easement conveyances. Subject to applicable 
regulations of the Internal Revenue Service, a landowner may be eligible 
for a bargain sale tax deduction which is the difference between the 
fair market value of the easement conveyed to the United States and the 
easement payment made to the landowner. The Department disclaims any 
representations concerning the tax implications of any easement or cost-
share transaction.
    (h) Payment limitation on non-permanent easements. With respect to 
non-permanent easements, the annual amount of easement payments to any 
person may not exceed $50,000 except for:
    (1) Payments made pursuant to projects involving partnership funding 
or participation; or
    (2) Payment received by a State, political subdivision, or agency 
thereof in connection with agreements entered into under a special 
wetland and environmental enhancement program carried out by that entity 
that has been approved by Department.
    (i) If easement payments are calculated on a per acre basis, 
adjustment to stated easement payment will be made based on final 
determination of acreage.

[60 FR 28514, June 1, 1995. Redesignated and amended at 61 FR 42141, 
42142, Aug. 14, 1996]

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