[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: 7CFR1491]

[Page 733-734]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1491--FARM AND RANCH LANDS PROTECTION PROGRAM--Table of Contents
 
    Subpart B--Cooperative Agreements and Conservation Easement Deeds
 
Sec.  1491.21  Funding.

    (a) The State Conservationist, in coordination with the cooperating 
entity, shall determine the NRCS share of the cost of purchasing a 
conservation easement.
    (b) Under the FRPP, NRCS may provide up to 50 percent of the 
appraised fair market value of the conservation easement. Entities are 
required to supplement the NRCS share of the cost of the conservation 
easement.
    (c) Landowner donations up to 25 percent of the appraised fair 
market value of the conservation easement may be considered part of the 
entity's matching offer.
    (d) For the entity, two cost-share options are available when 
providing its matching offer.
    (1) The entity may provide in cash at least 25 percent of the 
appraised fair market value of the conservation easement, or
    (2) The entity may provide at least 50 percent of the purchase price 
in cash, of the conservation easement. This second option may be 
preferable to an entity in the case of a large bargain sale

[[Page 734]]

by the landowner. If this option is selected, the NRCS share cannot 
exceed the entity's contribution.
    (e) FRPP funds may not be used for expenditures such as appraisals, 
surveys, title insurance, legal fees, costs of easement monitoring, and 
other related administrative and transaction costs incurred by the 
entity.
    (f) If the State Conservationist determines that the purchase of two 
or more conservation easements are comparable in achieving FRPP goals, 
the State Conservationist shall not assign a higher priority to any one 
of these conservation easements based on lesser cost to FRPP.