[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1469]

[Page 706-707]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1469_CONSERVATION SECURITY PROGRAM--Table of Contents
 
                    Subpart B_Contracts and Payments
 
Sec.  1469.21  Contract requirements.

    (a) To receive payments, each participant must enter into a 
conservation stewardship contract and comply with its provisions. Among 
other provisions, the participant agrees to maintain at least the level 
of stewardship identified in the benchmark inventory for the portion of 
land being enrolled for the entire contract period, as appropriate, and 
implement and maintain any new practices or activities required in the 
contract.
    (b) Program participants will only receive payments from one 
conservation stewardship contract.
    (c) CSP participants must address the following requirements or 
additional resource concerns to the minimum level of treatment by the 
end of their conservation stewardship contract:
    (1) Tier I contract requirement: additional practices and activities 
as included by the applicant in the conservation stewardship plan and 
approved by NRCS, over the part of the agricultural operation enrolled 
in CSP.
    (2) Tier II contract requirements:
    (i) Address an additional locally significant resource concern, as 
described in section III of the NRCS FOTG over the entire agricultural 
operation. Applicants may satisfy this requirement by demonstrating that 
the locally significant resource concern is not applicable to their 
operation or that they have already addressed it in accordance with 
NRCS'; quality criteria; and
    (ii) Additional practices and activities as included by the 
applicant in the conservation stewardship plan and approved by NRCS, 
over the entire agricultural operation, where applicable.
    (3) Tier III contract requirement: additional practices and 
activities as included by the applicant in the conservation stewardship 
plan and approved by NRCS, over the entire agricultural operation, where 
applicable.
    (d) Transition to a higher tier of participation. (1) Upon agreement 
by NRCS and the participant, a conservation stewardship contract may 
include provisions that lead to a higher tier of participation during 
the contract period. Such a transition does not require a contract 
modification if that transition is laid out in the schedule of contract 
activities. In the event that such a transition begins with Tier I, only 
the land area in the agricultural operation that meets the requirements 
for enrollment in Tier I can be enrolled in the contract until the 
transition occurs. Upon transition from Tier I to a higher tier of 
participation, the entire agricultural operation must be incorporated 
into the contract. All requirements applicable to the higher tier of 
participation would then apply. NRCS will calculate all stewardship, 
existing practice, new practice payments, and enhancement payments using 
the applicable enrolled acreage at the time of the payment.

[[Page 707]]

    (2) A contract which transitions to higher tier(s) of participation 
must include:
    (i) A schedule for the activities associated with the transition(s);
    (ii) A date certain by which time the transition(s) must occur; and,
    (iii) A specification that the CSP payment will be based on the 
current Tier of participation, which may change over the life of the 
contract.
    (3) A contract which transitions to a higher tier will be modified 
to receive the higher payments once the required level of treatment has 
been achieved and field verified by NRCS.
    (4) A contract which includes a transition from Tier I to Tier II or 
III may be adjusted in length up to 10 years beginning from the original 
contract date.
    (e) A conservation stewardship contract must:
    (1) Incorporate by reference the conservation stewardship plan;
    (2) Be for 5 years for Tier I, and 5 to 10 years for Tier II or Tier 
III;
    (3) Incorporate all provisions as required by law or statute, 
including participant requirements to--
    (i) Implement and maintain the practices as identified and scheduled 
in the conservation stewardship plan, including those needed to be 
eligible for the specified tier of participation and comply with any 
additional sign-up requirements,
    (ii) Not conduct any practices on the farm or ranch that tend to 
defeat the purposes of the contract,
    (iii) Comply with the terms of the contract, or documents 
incorporated by reference into the contract. NRCS will give the 
participant a reasonable time, as determined by the State 
Conservationist, to correct any violation and comply with the terms of 
the contract and attachments thereto. If a violation continues, the 
State Conservationist may terminate the conservation stewardship 
contract, and
    (iv) Supply records and information as required by CCC to determine 
compliance with the contract and requirements of CSP;
    (4) Specify the requirements for operation and maintenance of the 
applied conservation practices;
    (5) Specify the schedule of payments under the life of the contract, 
including how those payments--
    (i) Relate to the schedule for implementing additional conservation 
measures as described in the conservation stewardship plan,
    (ii) Relate to the actual implementation of additional conservation 
measures as described in the conservation stewardship plan, and
    (iii) May be adjusted by NRCS if the participant's management 
decisions change the appropriate set or schedule of conservation 
measures on the operation; and,
    (6) Incorporate any other provisions determined necessary or 
appropriate by NRCS, or included as a requirement for the sign-up.
    (f) Practices scheduled in contracts must be applied and maintained 
within the timelines specified in the contract.
    (g) Contracts expire on September 30 in the last year of the 
contract.
    (h) Participants must:
    (1) Implement the conservation stewardship contract approved by 
NRCS;
    (2) Make available to NRCS, appropriate records showing the timely 
implementation of the contract;
    (3) Comply with the regulations of this part; and
    (4) Not engage in any activity that interferes with the purposes of 
the program, as determined by NRCS.
    (i) NRCS will determine the payments under the contract as described 
in Sec.  1469.23.
    (j) For contracts encompassing the entire agricultural operation, 
the geographic boundaries of the acreage enrolled in the contract must 
include all fields and facilities under the participant's direct 
control, as determined by NRCS.