Agricultural Management Assistance Program, 70245-70256 [E8-27398]
Download as PDF
70245
Rules and Regulations
Federal Register
Vol. 73, No. 225
Thursday, November 20, 2008
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1465
RIN 0578–AA50
Agricultural Management Assistance
Program
Commodity Credit Corporation,
United States Department of
Agriculture.
ACTION: Interim final rule with request
for comment.
AGENCY:
The Natural Resources
Conservation Service (NRCS) is
amending the regulations for the
Agricultural Management Assistance
program (AMA). Section 2801 of the
Food, Conservation, and Energy Act of
2008 (2008 Act) amended the
Agricultural Management Assistance
program (AMA) by: Expanding the
program’s geographic scope to include
Hawaii; and providing $15 million in
mandatory funding for each of fiscal
years 2008 through 2012. NRCS issues
this interim final rule with request for
comment to incorporate statutory
changes resulting from the 2008 Act and
to make administrative changes to
improve program efficiency.
DATES: Effective Date: The rule is
effective November 20, 2008. Comment
date: Submit comments on or before
January 20, 2009.
ADDRESSES: You may send comments
(identified by Docket Number NRCS–
IFR–08002) using any of the following
methods:
• Government-wide rulemaking Web
site: go to https://www.regulations.gov
and follow the instructions for sending
comments electronically.
• Mail: Director, Financial Assistance
Programs Division, Natural Resources
Conservation Service, Agricultural
Management Assistance Program
rwilkins on PROD1PC63 with RULES
SUMMARY:
VerDate Aug<31>2005
18:21 Nov 19, 2008
Jkt 217001
Comments, P.O. Box 2890, Room 5237–
S, Washington, DC 20013.
• Fax: (202) 720–4265
• Hand Delivery: Room 5237–S of the
USDA South Office Building, 1400
Independence Avenue, SW.,
Washington, DC 20250, between 9 a.m.
and 4 p.m., Monday through Friday,
except Federal Holidays. Please ask the
guard at the entrance to the South Office
Building to call: (202) 720–4527 in order
to be escorted into the building.
• This interim final rule may be
accessed via Internet. Users can access
the NRCS homepage at https://
www.nrcs.usda.gov/; select the Farm
Bill link from the menu; select the
Interim final link from beneath the Final
and Interim Final Rules Index title.
Persons with disabilities who require
alternative means for communication
(Braille, large print, audio tape, etc.)
should contact the USDA TARGET
Center at: (202) 720–2600 (voice and
TDD).
FOR FURTHER INFORMATION CONTACT:
Director, Financial Assistance Programs
Division, Natural Resources
Conservation Service, P.O. Box 2890,
Washington, DC 20013–2890; Phone:
(202) 720–1844; Fax: (202) 720–4265; or
e-mail: AMA2008@wdc.usda.gov.
SUPPLEMENTARY INFORMATION:
Regulatory Certifications
Executive Order 12866
The Office of Management and Budget
(OMB) has determined that this interim
final rule is a non-significant regulatory
action under Executive Order 12866.
Regulatory Flexibility Act
NRCS has determined that the
Regulatory Flexibility Act is not
applicable to this interim final rule
because NRCS is not required by 5
U.S.C. 553, or any other provision of
law, to publish a notice of proposed rule
making with respect to the subject
matter of this rule.
Environmental Analysis
The National Environmental Policy
Act (NEPA) applies to ‘‘major Federal
actions’’ where the agency has control
and responsibility over the actions and
has discretion as to how the actions will
be carried out (40 CFR part 1508.18).
Accordingly, any actions that are
directed by Congress to be implemented
in such manner that there is no
discretion on the part of the agency are
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
not required to undergo an
environmental review under NEPA. The
lack of discretion over the action by the
agency undermines the rationale for
NEPA review—evaluation of the
environmental impacts of the proposed
action and consideration of alternative
actions to avoid or mitigate the impacts.
Where Congress has directed that a
specific action be implemented and an
agency has no discretion to consider
and take alternative actions, NEPA
review would be moot.
For AMA, Congress has mandated the
addition of Hawaii to the list of States
to which the Secretary is authorized to
provide financial assistance. The
Secretary of Agriculture is, therefore,
required to make this addition to the
program. There is no discretion on the
part of the agency to take this action.
For this reason, an environmental
review of these changes under NEPA is
not required.
Civil Rights Impact Analysis
NRCS has determined through a Civil
Rights Impact Analysis that the issuance
of this interim final rule will not have
a significant effect on minorities. Copies
of the Civil Rights Impact Analysis may
be obtained from Director, Financial
Assistance Programs Division, U.S.
Department of Agriculture (USDA),
Natural Resources Conservation Service
(NRCS), P.O. Box 2890, Washington, DC
20013–2890.
Paperwork Reduction Act
Section 2904 of the 2008 Act requires
that implementation of programs
authorized by Title II of the 2008 Act be
made without regard to the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.) Therefore, NRCS is not reporting
recordkeeping or estimated paperwork
burden associated with this interim
final rule.
Government Paperwork Elimination Act
NRCS is committed to compliance
with the Government Paperwork
Elimination Act, which requires
Government agencies, in general, to
provide the public the option of
submitting information or transacting
business electronically to the maximum
extent possible. To better accommodate
public access, NRCS has developed an
online application and information
system for public use.
E:\FR\FM\20NOR1.SGM
20NOR1
70246
Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 / Rules and Regulations
Executive Order 12988
This interim final rule has been
reviewed in accordance with Executive
Order 12988, Civil Justice Reform. The
provisions of this interim final rule are
not retroactive. Furthermore, the
provisions of this interim final rule
preempt State and local laws to the
extent such laws are inconsistent with
this interim final rule. Before an action
may be brought in a Federal court of
competent jurisdiction, the
administrative appeal rights afforded
persons at 7 CFR parts 11 and 614 must
be exhausted.
Federal Crop Insurance Reform and
Department of Agriculture
Reorganization Act of 1994
USDA classified this interim final rule
as ‘‘not major’’ under Section 304 of the
Department of Agriculture
Reorganization Act of 1994, Public Law
104–354. Therefore, a risk assessment is
not required.
rwilkins on PROD1PC63 with RULES
Unfunded Mandates Reform Act of 1995
Pursuant to Title II of the Unfunded
Mandates Reform Act of 1995, Public
Law 104–4, NRCS assessed the effects of
this rulemaking action on State, local,
and Tribal governments, and the public.
This action does not compel the
expenditure of $100 million or more by
any State, local, or Tribal governments,
or anyone in the private sector, and
therefore, a statement under section 202
of the Unfunded Mandates Reform Act
is not required.
Discussion of Program
The conservation provisions of AMA
are administered and implemented
under the general supervision and
direction of the Chief of NRCS, who is
a Vice President of the Commodity
Credit Corporation (CCC). Accordingly,
where NRCS is mentioned in this rule
it also refers to the CCC’s funds,
facilities, and authorities where
applicable. While NRCS has leadership
for the conservation provisions of AMA,
other agencies have authority for
different aspects of the program. The
Agricultural Marketing Service (AMS)
has responsibility for the organic
certification cost-share program and the
Risk Management Agency (RMA) has
responsibility for the insurance costshare program for mitigation of financial
risk.
Through AMA, NRCS provides
technical and financial assistance to
participants in eligible States to address
issues, such as water management,
water quality, and erosion control by
incorporating conservation practices
into their agricultural operations.
Producers may construct or improve
VerDate Aug<31>2005
18:21 Nov 19, 2008
Jkt 217001
water management structures or
irrigation structures; plant trees for
windbreaks or to improve water quality;
and mitigate risk through production
diversification or resource conservation
practices, including soil erosion control,
integrated pest management, or organic
farming.
Section 524(b) of the Federal Crop
Insurance Act, as amended by Section
133 of the Agricultural Risk Protection
Act of 2000, authorized AMA to provide
assistance to producers in States that
historically had low participation in the
Federal Crop Insurance Program. The
Farm Security and Rural Investment Act
of 2002 (2002 Act) made amendments to
AMA to specify the eligible States and
provide additional clarity to the
assistance to be made available. The
AMA regulation (7 CFR part 1465) was
published in the Federal Register on
April 9, 2003.
Section 2801 of the 2008 Act
amended AMA to include Hawaii as an
eligible State, and to authorize $15
million in funding each year from fiscal
year (FY) 2008 through FY 2012. NRCS
has evaluated seven years of program
implementation and identified
opportunities to improve program
administration and alignment with
other financial assistance programs
administered by the Agency. The
revisions to the AMA regulation,
described below, reflect the changes
mandated by the 2008 Act and
opportunities to improve program
administration for greater efficiency.
Summary of Provisions
Section 1465.1, Purposes and
Applicability
Section 1465.1, ‘‘Purposes and
Applicability,’’ sets forth the purpose,
scope, and objectives of AMA. Through
AMA, NRCS provides technical and
financial assistance to producers in
statutorily-designated States. Section
2801 of the 2008 Act expanded AMA’s
geographic scope to include the State of
Hawaii. In response, NRCS revises
§ 1465.1 to add Hawaii to the list of
States eligible for AMA assistance and
replaces ‘‘15’’ with the number ‘‘16’’
when referring to the number of eligible
States. AMA is now available in
Connecticut, Delaware, Hawaii,
Maryland, Massachusetts, Maine,
Nevada, New Hampshire, New Jersey,
New York, Pennsylvania, Rhode Island,
Utah, Vermont, West Virginia, and
Wyoming.
Section 1465.2, Administration
Section 1465.2, ‘‘Administration,’’
describes the role of NRCS and provides
a brief overview of the Agency’s
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
administrative responsibilities. NRCS
amends § 1465.2 to reflect the 2003
decision made by USDA to have NRCS
administer the AMA natural resource
conservation provisions and to clarify
NRCS’s relationship with the
Commodity Credit Corporation (CCC).
Prior to FY 2004, NRCS and the Farm
Service Agency (FSA) jointly
administered the AMA natural resource
conservation provisions. A 2003
decision made by USDA transferred all
administrative responsibilities to NRCS.
Therefore, § 1465.2 is revised to remove
reference to Farm Service Agency (FSA)
and reflect that NRCS has the
responsibility for issuing payments for
conservation practices. NRCS also
revises § 1465.2(c) to clarify that lower
delegations of authority can be
overridden by the Chief, if necessary, to
uphold the purposes of AMA. This
addition is consistent with other NRCS
natural resource conservation programs.
Section 1465.3, Definitions
Section 1465.3 sets forth definitions
for terms used throughout this
regulation. Several new definitions have
been added or revised to align AMA
terms with terms used by other NRCS
conservation programs. The following
existing definitions are revised:
‘‘Applicant,’’ ‘‘Conservation district,’’
‘‘Conservation practice,’’ ‘‘Contract,’’
‘‘Indian Tribe,’’ ‘‘Liquidated damages,’’
‘‘Participant,’’ ‘‘Producer,’’ ‘‘State
Conservationist,’’ and ‘‘Technical
assistance.’’ NRCS also replaces several
existing terms with terms more
reflective of AMA’s purposes. The
term,‘‘Cost-share payment’’ is replaced
with ‘‘Payment,’’ to reflect the breadth
of the types of costs that may be
considered in determining payments.
The term ‘‘Indian trust lands’’ is
replaced with the term ‘‘Indian land’’ to
broaden the scope and align AMA with
other NRCS conservation programs.
Finally, the term ‘‘Conservation plan’’ is
replaced with the term ‘‘AMA plan of
operations (APO)’’ to align AMA with
other NRCS conservation programs that
identify a plan of operations. NRCS
adds the following terms and definitions
to the AMA regulations to be consistent
with related conservation programs:
‘‘Agricultural land,’’ ‘‘Agricultural
operation,’’ ‘‘Beginning farmer or
rancher,’’ ‘‘Historically underserved
producer,’’ ‘‘Joint operation,’’ ‘‘Legal
entity,’’ ‘‘Limited resource farmer or
rancher,’’ ‘‘Livestock,’’ ‘‘Natural
Resources Conservation Service
(NRCS),’’ ‘‘Nonindustrial private forest
land,’’ ‘‘Operation and maintenance
(O&M) agreement,’’ ‘‘Person,’’ ‘‘Resource
concern,’’ ‘‘Socially disadvantaged
farmer or rancher,’’ ‘‘Structural
E:\FR\FM\20NOR1.SGM
20NOR1
rwilkins on PROD1PC63 with RULES
Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 / Rules and Regulations
practice,’’ and ‘‘Technical Service
Provider (TSP).’’ The terms, ‘‘Unit of
concern’’ and ‘‘State Technical
Committees’’ are removed since they are
no longer used in the AMA regulations.
Specifically, the following definitions
have been amended:
NRCS adds the definition of
‘‘agricultural land’’ to better define the
land where AMA assistance will be
provided. Agricultural land is cropland,
grassland, rangeland, pasture, and other
agricultural land, on which agricultural
and forest-related products or livestock
are produced and resource concerns
may be addressed. Agricultural lands
include cropped woodland, marshes,
incidental areas included in the
agricultural operation, and other types
of agricultural land used for the
production of livestock.
NRCS adds the definition of
‘‘agricultural operation’’ to closely align
AMA’s definitions with definitions used
by other NRCS conservation programs.
Section 1465.3 defines an ‘‘agricultural
operation’’ as ‘‘a parcel or parcels of
land whether contiguous or
noncontiguous, which the producer is
listed as the operator or owner/operator
in the Farm Service Agency (FSA)
record system, which is under the
effective control of the producer at the
time the producer applies for a contract,
and which is operated by the producer
with equipment, labor, management,
and production, forestry, or cultivation
practices that are substantially separate
from other operations.’’
NRCS replaces the term,
‘‘conservation plan’’ with ‘‘AMA plan of
operations’’ to ensure consistency across
NRCS programs. Prior to this regulation,
AMA participants developed and
implemented an AMA plan of
operations. The addition of this term
and associated definition clarifies what
constitutes an AMA plan of operations
and clarifies existing processes and
documentation procedures. An AMA
plan of operations, which is part of the
AMA contract, identifies the location
and timing of conservation practices
that the participant agrees to implement.
NRCS revises the definition,
‘‘applicant,’’ to simplify the definition
and incorporate the 2008 Act’s
references to ‘‘person’’ and ‘‘legal
entity.’’ The term, ‘‘applicant,’’ is
defined as follows: ‘‘a person, legal
entity, or joint operation that has an
interest in an agricultural operation,
who has requested in writing to
participate in AMA.’’
NRCS adds the definition, ‘‘beginning
farmer and rancher’’ in accordance with
Section 2708 of the 2008 Act which
seeks to expand conservation program
participation among farmers and
VerDate Aug<31>2005
18:21 Nov 19, 2008
Jkt 217001
ranchers who have been historically
underserved. The definition of
‘‘beginning farmer and rancher’’ reflects
the definition provided defined in
1201(a) of the Food Security Act of
1985. Generally speaking, a ‘‘beginning
farmer or rancher’’ is an individual who
has not operated a farm or ranch, or who
has operated a farm or ranch for not
more than 10 consecutive years. This
requirement applies to all members of
an entity, who will materially and
substantially participate in the
operation of the farm or ranch. NRCS
also revises the ‘‘conservation district’’
definition to reflect the 2008 Act’s
definition. A conservation district
means ‘‘any district or unit of State,
Tribal, or local government formed
under State, Tribal, or territorial law for
the express purpose of developing and
carrying out a local soil and water
conservation program.’’ Such district or
unit of government may be referred to
as a ‘‘conservation district,’’ ‘‘soil
conservation district,’’ ‘‘soil and water
conservation district,’’ ‘‘resource
conservation district,’’ ‘‘natural resource
district,’’ ‘‘land conservation
committee,’’ or similar name.
NRCS revises ‘‘conservation practice’’
to clarify what is meant by conservation
treatment. Specifically, a conservation
practice means ‘‘one or more
conservation improvements and
activities, including structural practices,
land management practices, vegetative
practices, forest management, and other
improvements that achieve program
purposes.’’
NRCS revises the definition of
‘‘contract’’ in an effort to make
definitions consistent across other
programs. A contract is ‘‘a legal
document that specifies the rights and
obligations of any participant in the
program. An AMA contract is a binding
agreement for the transfer of assistance
from USDA to the participant to share
in the costs of applying conservation
practices.’’
The term, ‘‘historically underserved
producer,’’ merges the terms ‘‘beginning
farmer or rancher,’’ ‘‘limited resource
farmer or rancher,’’ and ‘‘socially
disadvantaged farmer or rancher’’ into
one definition to simplify terms within
this regulation.
NRCS revises the definition of
‘‘Indian Tribe’’ to ensure the definition
incorporates Alaska Native village
corporations, as established pursuant to
the Alaska Claims Settlement Act (43
U.S.C. 1601 et seq.).
NRCS replaces the term and
definition, ‘‘Indian trust land,’’ to make
it consistent with the term and
associated definition, ‘‘Indian land,’’
which is used by other NRCS
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
70247
conservation programs. The ‘‘Indian
land’’ definition encompasses lands
which are also held in fee title by Indian
tribes or Tribal members. Specifically,
‘‘Indian land’’ is ‘‘an inclusive term
describing all lands held in trust by the
United States for individual Indians or
Tribes, or all lands, titles to which are
held by individual Indians or Tribes,
subject to Federal restrictions against
alienation or encumbrance, or all lands
which are subject to the rights of use,
occupancy and/or benefit of certain
Tribes.’’
NRCS adds the term, ‘‘joint
operation,’’ to maintain consistency
across all NRCS conservation programs.
A joint operation is ‘‘a general
partnership, joint venture, or other
similar business arrangement, in which
the members are jointly or severally
liable for the obligations of the
organization.’’
NRCS adds the term, ‘‘legal entity,’’ to
maintain consistency across all NRCS
conservation programs. As defined by 7
CFR 1400, ‘‘a legal entity is an entity
created under Federal or State law that:
(1) Owns land or an agricultural
commodity, product, or livestock; or (2)
produces an agricultural commodity,
product, or livestock.’’
NRCS adds the term and associated
definition ‘‘limited resource farmer,’’ in
accordance with Section 2708 of the
2008 Act which seeks to expand
conservation program participation
among farmers and ranchers who have
been historically underserved. The
definition of ‘‘limited resource farmer’’
reflects the definition used in the
Environmental Quality Incentive
Program’s regulation, 7 CFR part 1466.
Generally speaking, a limited resource
farmer is a person with direct or indirect
gross farms sales not more than $155200
in each of the previous two years, who
has a total household income at or
below the national poverty level for a
family of four, or less than 50 percent
of the county median household income
in each of the two previous years.
NRCS revises the definition,
‘‘liquidated damages,’’ to make the
definition consistent with the definition
used by other NRCS conservation
programs; however, the overall meaning
of the term remains the same as the
original regulation’s definition.
Liquidated damages is ‘‘a sum of money
stipulated in the AMA contract that the
participant agrees to pay NRCS if the
participant fails to adequately complete
the terms of the contract. The sum
represents an estimate of the expenses
incurred to service the contract and
reflects the difficulties of proof of loss
and the inconvenience or non-feasibility
E:\FR\FM\20NOR1.SGM
20NOR1
rwilkins on PROD1PC63 with RULES
70248
Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 / Rules and Regulations
of otherwise obtaining an adequate
remedy.’’
NRCS adds the term, ‘‘livestock,’’ to
maintain consistency across NRCS
conservation programs. Livestock means
‘‘all animals produced on farms and
ranches, as determined by the Chief.’’
NRCS adds the term, ‘‘Natural
Resources Conservation Service,’’ to
define the USDA agency that has
responsibility for administering AMA.
NRCS adds the term, ‘‘nonindustrial
private forest land,’’ to further define
land eligible for AMA assistance.
Nonindustrial forest land is rural land
that has existing tree cover or is suitable
for growing trees; and is owned by any
nonindustrial private individual, group,
association, corporation, Indian Tribe,
or other private legal entity that has
definitive decisionmaking authority
over the land.
NRCS adds the term ‘‘operation and
maintenance agreement’’ to describe the
document that, in conjunction with the
AMA plan of operations, specifies the
participant’s operation and maintenance
responsibilities for conservation
practices installed with AMA
assistance.
NRCS revises the definition of
‘‘participant,’’ to make it consistent with
other NRCS conservation programs. A
participant is ‘‘a person, joint operation,
or legal entity who is receiving payment
or is responsible for implementing an
AMA contract’s terms and conditions.’’
NRCS replaces the term, ‘‘cost share
payment’’ with the term, ‘‘payment’’ to
more adequately describe how
participants will be compensated.
Payment means the ‘‘financial
assistance provided to the participant
based on the estimated costs incurred in
performing or implementing
conservation practices, including costs
for: planning, design, materials,
equipment, installation, labor,
maintenance, management, or training,
as well as the estimated income
foregone by the producer for the
designated conservation practices.’’
NRCS adds the term, ‘‘person,’’ to
maintain consistency across all NRCS
conservation programs. As defined by 7
CFR part 1400, a person is ‘‘an
individual, natural person and does not
include a legal entity.’’
NRCS expands upon the definition of
‘‘producer,’’ to include persons or
entities involved in forestry
management.
NRCS adds the term, ‘‘resource
concern,’’ to maintain a consistency of
terms across NRCS conservation
programs. A resource concern is ‘‘a
specific natural resource problem that
represents a significant concern in a
State or region and is likely to be
VerDate Aug<31>2005
18:21 Nov 19, 2008
Jkt 217001
addressed successfully through the
implementation of the conservation
practices by producers.’’
NRCS adds the term, ‘‘socially
disadvantaged farmer or rancher,’’ in
accordance with Section 2708 of the
2008 Act which seeks to expand
conservation program participation
among farmers and ranchers who have
been historically underserved. A
socially disadvantaged famer or rancher
is one ‘‘who has been subjected to racial
or ethnic prejudices because of their
identity as a member of a group without
regard to their individual qualities.’’
NRCS revises the definition, ‘‘State
Conservationist,’’ to clarify that the
former State Conservationist of Hawaii
has become the director of the Pacific
Islands.
NRCS adds the term, ‘‘structural
practice,’’ to better define a conservation
practice that involves establishing,
constructing, or installing a site-specific
measure to conserve and protect a
resource from degradation, or improve
soil, water, air, or related natural
resources in the most cost-effective
manner.
NRCS revises the term, ‘‘technical
assistance,’’ to further clarify the nature
of technical assistance under AMA, as
well as the types of land where AMA
technical assistance is available.
NRCS adds the term and definition,
‘‘Technical Service Provider (TSP)’’ to
clarify that participants may receive
technical assistance from an individual,
private-sector entity, or public agency
certified by NRCS to provide technical
services, in lieu of or on behalf of NRCS.
Section 1465.4, National Priorities
NRCS inserts a new § 1465.4, entitled
‘‘National Priorities,’’ and redesignates
the subsequent sections accordingly.
The new § 1465.4 provides that NRCS
establishes national priorities to guide
funding allocations to States, selection
of AMA contracts, and implementation
priority for AMA conservation practices.
This new section also states that the
national priorities are reviewed
periodically by NRCS to ensure that the
program is addressing priority
conservation concerns. This addition
improves AMA consistency with related
conservation programs administered by
NRCS.
Section 1465.5, Program Requirements
Section 1465.5, ‘‘Program
requirements,’’ sets forth land and
applicant eligibility. Throughout the
Section the terminology is revised to
make it consistent with the terms used
in § 1465.3, ‘‘Definitions.’’
Specifically, NRCS revises paragraph
(a), replacing the term, ‘‘cost share’’
PO 00000
Frm 00004
Fmt 4700
Sfmt 4700
payment with the term, ‘‘payment,’’ to
more adequately reflect the type of
payments a participant may receive.
NRCS also replaces the term,
‘‘conservation plan,’’ with the term,
‘‘AMA plan of operations,’’ to describe
the specific document that contains the
conservation practice implementation
schedule.
NRCS revises paragraph (c)(2), which
requires that the applicant provide
written evidence of ownership or legal
control for the life of the contract and
its associated O&M agreement, which is
consistent with additions in §§ 1465.3
and 1465.22. NRCS also revises
paragraph (c)(4) to clarify that
additional information required by
NRCS is for the purposes of assessing a
proposed project’s merits and to assist
in monitoring contract compliance.
Section 1465.5 is revised to
incorporate existing program
requirements that previously have not
been included in the AMA regulations
because they apply via other statutory
provisions. In particular, NRCS revises
§ 1465.5(c)(6) to clarify that AMA
participants are subject to AGI
limitations, 7 CFR Part 1400 and
amendments to Section 1001D of the
Food Security Act of 1985 as authorized
by Section 1604 of Title I of the 2008
Act. The AGI and program eligibility
requirements also necessitate that NRCS
obtain from legal entities a list of
members, including members in
embedded entities, along with their
social security numbers, and percent
interest in the legal entity. Specifically,
text has been added to § 1465.5,
‘‘Program requirements,’’ that requires
participants to ‘‘supply other
information, as required by NRCS, to
determine payment eligibility as
established by 7 CFR 1400, Adjusted
Gross Income (AGI).’’ This revision also
makes AMA consistent with other NRCS
conservation programs.
Paragraph (c) is revised to further
clarify that applicants must provide a
list of all members of the legal entity
and embedded entities along with
members’ social security numbers and
percentage interest in the entity. In the
event an applicant uses a unique
identification number rather than a
social security or tax identification
number, the unique identification
number must be used universally for
any and all AMA contracts. The original
subparagraph 1465.5(c)(4) has been
removed as it is redundant with
§ 1465.5(c)(6), and subparagraph
1465.5(c)(5) has been redesignated as
§ 1465.5(c)(8). Subparagraph
1465.5(c)(10) is added to clarify that a
participant must develop and agree to
comply with an APO and to describe the
E:\FR\FM\20NOR1.SGM
20NOR1
Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 / Rules and Regulations
Agency expectation regarding the O&M
agreement.
NRCS adds new program
requirements in paragraph (c)(9) to
improve program administration and
ensure that AMA program goals are met.
A provision is added that requires AMA
participants to be in compliance with
terms of all other USDA-administered
agreements to which they are a party. In
this manner, NRCS ensures that a
participant who receives NRCS
conservation program benefits is
meeting existing responsibilities prior to
receiving additional assistance.
Sections 1465.5(d)(2)(i) through
§ 1465.5(d)(2)(iii) are redesignated as
§ 1465.5(d)(2)(A), § 1465.5(d)(2)(B), and
§ 1465.5(d)(2)(C), respectively. In an
effort to make AMA consistent with
other programs, the language contained
within paragraph (d)(2) that addresses
enrolling public land is slightly revised,
although the overall intent of the
language remains the same.
Subpart B—Contracts
Section 1465.6, AMA Plan of Operations
Section 1465.21, Contract Requirements
Section 1466.21, ‘‘Contract
requirements,’’ identifies elements
contained within an AMA contract and
the responsibilities of the participant
who is party to the AMA contract.
Specifically, paragraph (a) is revised to
change the term ‘‘cost-share payments’’
to ‘‘payments,’’ and clarify that costs
related to technical services may be
included in the contract. This revision
does not change current program
practice.
Under § 1465.21(b)(2), contract
duration is revised from 3 to 10 years to
a minimum duration of one year after
completion of the last practice, and a
maximum of 10 years. This provides the
flexibility needed for establishing
agreement lengths based on
conservation concerns and other factors,
and aligns AMA with other
conservation programs administered by
NRCS.
Overall, § 1465.21(b) is restructured to
account for additions to the section and
to make the formatting consistent
throughout the AMA regulations,
although with the exception of replacing
the terms, ‘‘contract and conservation
plan’’ with ‘‘APO,’’ the text has not
changed. Accordingly, subparagraphs
1465.21(b)(3)(i) through
1465.21(b)(3)(iv) are redesignated as
1465.21(b)(3)(A) through
1465.21(b)(3)(D).
NRCS inserts a new section § 1465.6,
entitled ‘‘AMA plan of operations,’’
which describes the AMA plan of
operations as the document that
contains the information related to
practices and activities to be
implemented under AMA. Section
1465.6 specifies the requirements for the
APO and that participants are
responsible for implementing the APO.
This addition brings AMA into
alignment with other NRCS
conservation programs. Subsequent
sections are redesignated accordingly.
rwilkins on PROD1PC63 with RULES
Section 1465.7, Conservation Practices
Section 1465.7, ‘‘Conservation
practices,’’ describes how NRCS
determines eligible conservation
practices. Specifically, § 1465.7(a) is
revised to clarify that NRCS will
identify and provide public notice of the
conservation practices eligible for
payments under the program. This
revision improves AMA consistency
with related NRCS conservation
programs. The reference to ‘‘State
Technical Committees’’ providing
advice on the types of conservation
practices eligible for payment is
removed, since State Technical
Committees are permitted only to
provide advice on conservation
programs, authorized by Title XII of the
Food Security Act of 1985. AMA is
authorized by the Federal Crop
Insurance Act; therefore, State
Technical Committees are not
authorized to provide advice on AMA.
VerDate Aug<31>2005
18:21 Nov 19, 2008
Jkt 217001
Section 1465.20, Application for
Participation and Selecting
Applications for Contracting
Section 1465.20, ‘‘Application for
participation and selecting applications
for contracting,’’ describes the processes
for submitting and selecting
applications. This Section remains the
same; however, the term, ‘‘national
priorities,’’ is inserted in paragraphs (c)
and (d) to account for the policy
outlined in § 1465.4, ‘‘National
priorities.’’ The reference to ‘‘State
Technical Committees’’ providing
advice on AMA ranking criteria is
removed, since State Technical
Committees are permitted only to
provide advice on conservation
programs, authorized by Title XII of the
Food Security Act of 1985. AMA is
authorized by the Federal Crop
Insurance Act; therefore, State
Technical Committees are not
authorized to provide advice on AMA.
Section 1465.22, Conservation Practice
Operation and Maintenance
Section 1465.22, ‘‘Conservation
practice operation and maintenance,’’
addresses the participant’s
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
70249
responsibility for operating and
maintaining conservation practices.
Section 1465.22 is divided into logical
content paragraphs and revised to be
consistent with the O&M agreement
definition in § 1465.3. NRCS revised
§ 1465.22 to clarify that the O&M
agreement is part of the AMA contract.
The O&M agreement specifies the terms
and conditions under which the
participant must operate and maintain
the conservation practices installed with
AMA assistance. This section also
clarifies that NRCS may periodically
inspect conservation practices to ensure
that they are being maintained for the
conservation practice lifespan as
detailed in the O&M agreement. In the
event that NRCS finds that a participant
is not operating and maintaining
practices for the specified lifespan
during the contract duration, NRCS may
request a refund of payments in
accordance with the AMA contract.
NRCS has created an O&M agreement to
articulate the Agency’s expectation that
the participant is responsible for
maintaining each conservation practice.
NRCS has developed this O&M
agreement for two reasons: (1) To
increase transparency of a participant’s
contract responsibilities; and (2) To
ensure these conservation practices are
maintained for the length in time in
which they were designed and created.
NRCS adds § 1465.22(d) to clarify to
the participant that conservation
practices installed before contract
approval, but included in the
application in order to obtain ranking
points, must be operated and
maintained as specified in the contract
and O&M agreement. This addition is
consistent with other NRCS
conservation programs’ policies.
Section 1465.23, Payments
The Section title is revised from
‘‘Cost-share payments’’ to ‘‘Payments’’
to reflect the variety of costs that are
considered in establishing program
payments. Accordingly, the term ‘‘costshare payment’’ is replaced by
‘‘payment’’ throughout the Section. This
section addresses payments and
payment limitations applicable to a
participant. Subparagraphs
1465.23(a)(1), 1465.23(a)(2),
1465.23(a)(3), 1465.23(b), 1465.23(c),
and 1465.23(d) are redesignated as
1465.23(a), 1465.23(b), 1465.23(c),
1465.23(d), 1465.23(e), 1465.23(f), and
1465.23(g), respectively, to
accommodate additions to the section
and to make the formatting consistent
throughout the AMA regulations.
Section 1465.23(a) is revised to allow
payments of ‘‘up to 75 percent of the
estimated cost of an eligible practice
E:\FR\FM\20NOR1.SGM
20NOR1
rwilkins on PROD1PC63 with RULES
70250
Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 / Rules and Regulations
and up to 100 percent of the estimated
income foregone’’ rather than providing
a flat rate of 75 percent. Allowing for a
range of payment rates makes it possible
to provide reduced rates where
participants can implement a
conservation practice at a lower cost.
This allows the opportunity to
distribute AMA funds to more
participants. A new section
1465.23(a)(2) is added to allow
historically underserved producers to
receive the applicable payment rate plus
an additional rate that is not less than
25 percent, provided that this increase
does not exceed 90 percent. These
changes implement the 2008 Act’s
emphasis on encouraging participation
by those who have been historically
underserved and are consistent with
other related NRCS conservation
programs.
Section 1465.23(c) is revised to clarify
how conservation practices
implemented or initiated prior to AMA
contract approval will be handled.
Section 1465.23(c)(1) states that
payments will not be made for practices
applied prior to contract approval.
Section 1465.23(c)(2) describes that
practices initiated prior to contract
approval are not eligible for payment,
unless the participant had obtained a
waiver in advance from the State or
Designated Conservationist. This
revision aligns AMA with other NRCSadministered conservation programs.
NRCS revises § 1465.23(e) as follows:
§ 1465.23(e) is expanded to include the
statutory reference of the ‘‘Payment
Limitation and Payment Eligibility’’ at 7
CFR part 1400. NRCS will attribute
payments to each participating person
and legal entity using the same protocol
outlined in 7 CFR part 1400 for
commodity and conservation programs.
This is consistent with other
conservation programs administered by
NRCS. Subparagraphs 1465.23(c)(i)
through 1465.23(c)(iv) are removed as
the majority of the provisions are
addressed by reference to 7 CFR part
1400 in the Section.
Section 1465.23(f) is added to state
that payments will not be made for
conservation practices on eligible land if
payments are already being received for
the same practice on the same land
under a USDA conservation program.
These additions are consistent with
other related conservation programs
administered by NRCS.
Section 1465.23(h) is added to state
that subject to fund availability, the
payment rates for conservation practices
scheduled after the year of contract
obligation may be adjusted to reflect
increased costs. NRCS adds this
paragraph to enable the Agency to
VerDate Aug<31>2005
18:21 Nov 19, 2008
Jkt 217001
adjust payments to accommodate for
inflation, higher fuel costs, and
increased labor, which impact the cost
of implementing a conservation
practice.
Section 1465.24, Contract
Modifications, Extensions, and
Transfers of Land
Section 1465.24, ‘‘Contract
modifications, extensions, and transfers
of land,’’ addresses contract
modifications, changes in land
ownership or control of the land, and
contract implications if the participant
loses control of the land. Specifically,
§ 1465.24(a) is revised to state that when
an AMA contract is revised, the APO
also must be revised. The designated
conservationist must approve the
modified contract. This new language is
consistent with modifications made in
§ 1465.6 and with other conservation
programs administered by NRCS.
Language related to contract
extensions for up to the 10-year limit is
deleted in § 1465.24(b) because contract
duration is addressed in § 1465.21(b)(2).
New language is included to clarify that
participants are responsible for
notifying NRCS if they anticipate loss of
control of the land. This addition is
consistent with other related
conservation programs administered by
NRCS.
Section 1465.24(c) is revised to clarify
contract transfer issues related to
division of payments and transferee
eligibility. Subparagraphs 1465.24(c)(1)
and 1465.24(c)(2) explain the
requirements for a transferee to receive
payments, the obligations of the
transferee to comply with the terms of
the contract and O&M agreement, and
the rights of the parties in distribution
of payments. This revision brings AMA
into alignment with related
conservation programs administered by
NRCS.
Section 1465.24(e) is added to clarify
that participants to a contract will be
jointly and severally responsible for
refunding payments. The language is
consistent with related NRCSadministered conservation programs.
Section 1465.24(f) is added to ensure
that in the event a conservation practice
fails through no fault of the participant,
the State Conservationist may issue
payments to re-establish the
conservation practice, in accordance
with established payment rates and
limitations.
Section 1465.25, Contract Violations
and Terminations
Section 1465.25, ‘‘Contract violations
and terminations,’’ addresses the
procedures that NRCS takes where a
PO 00000
Frm 00006
Fmt 4700
Sfmt 4700
violation has occurred or a contract
termination is necessary. Section
1465.25 is revised to account for
additions to the Section and to make the
formatting consistent throughout the
AMA regulations. Section 1465.25(a) is
revised by removing the term
‘‘reasonable’’ as it is too subjective and
replaces it with ‘‘60 days, unless
otherwise determined by the State
Conservationist.’’ This language is
consistent with related NRCSadministered conservation programs.
Subparagraphs 1465.25(a)(1) and
1465.25(a)(2) are redesignated as
§ 1465.25(a) and § 1465.25(b),
respectively.
The terms ‘‘scheme or device’’ are
added to § 1465.25(b) to be clear that
such actions may result in contract
violation or termination. This revision is
consistent with § 1465.35 and with
related conservation programs
administered by NRCS. Subparagraphs
1465.25(b)(1), 1465.25(b)(2),
1465.25(b)(3), 1465.25(b)(4), and
1465.25(b)(5) are redesignated as
1465.25(c), 1465.25(c)(2),
1465.25(c)(2)(A), 1465.25(c)(2)(B), and
1465.25(c)(2)(C), respectively.
Section 1465.25(c) is revised as
follows: § 1465.25(c) is expanded to
clarify that participants who are in
violation of AMA contracts may be
ineligible for future NRCS-administered
conservation program funding. The
language is consistent with other NRCS
conservation programs. Subparagraph
1465.25(c)(2)(A) is revised to clarify that
hardship claims must be well
documented and must result from
conditions that did not exist prior to
application to the program. This
revision is consistent with related
conservation programs administered by
NRCS.
Subpart C—General Administration
Section 1465.30, Appeals
Section 1465.30, ‘‘Appeals,’’
references the policies that govern when
a producer seeks an appeal to an
adverse decision made by NRCS. NRCS
has not made any substantive changes to
this section, other than formatting. The
following formatting changes are made
to § 1465.30: § 1465.30(b)(4)(i) through
§ 1465.30(b)(4)(iii) are redesignated as
§ 1465.30(b)(4)(A), § 1465.30(b)(4)(B),
and § 1465.30(b)(4)(C), respectively.
Section 1465.31, Compliance With
Regulatory Measures
No changes have been made in this
section.
E:\FR\FM\20NOR1.SGM
20NOR1
Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 / Rules and Regulations
Section 1465.32, Access to Operating
Unit
Section 1465.32, ‘‘Access to operating
unit,’’ provides notice to applicants,
participants, and the public that NRCS
has the right to enter an operating unit
or tract for the purpose of ascertaining
the accuracy of any representations
related to contract performance. Section
1465.32 is amended to notify potential
AMA applicants that an authorized
NRCS representative may enter an
agricultural operation for the purposes
of eligibility determinations. NRCS will
continue to provide the participant
notice, prior to entering the property.
Section 1465.33, Equitable Relief
The caption of § 1465.33 is changed
from ‘‘Performance based upon advice
or action or representatives of NRCS’’ to
‘‘Equitable relief’’ to be consistent with
related NRCS-administered
conservation programs. Section 1465.33,
‘‘Equitable relief,’’ outlines the policy
when a participant relies upon
erroneous advice provided by NRCS.
Specifically, § 1465.33 is divided into
two paragraphs. Paragraph 1465.33(b) is
revised to add that any action the
participant has taken based on the
advice of a certified TSP is the
responsibility of that certified TSP. The
language clarifies program
administration and is consistent with
other NRCS conservation programs.
Paragraph 1465.33(c) clarifies that
AMA participants who acted in good
faith based on erroneous information
provided by NRCS or its representatives
may be entitled to equitable relief. This
revision makes AMA consistent with
other conservation programs
administered by NRCS.
rwilkins on PROD1PC63 with RULES
Section 1465.34, Offsets and
Assignments
Section 1465.34, ‘‘Offsets and
assignments,’’ governs offsets and
withholdings, as well as assignment of
payments. The term ‘‘person’’ is
changed to ‘‘participant’’ to reflect that
this policy applies to persons, joint
operations, and legal entities who are
party to an AMA contract.
Section 1465.35, Misrepresentation and
Scheme or Device
Section 1465.35, ‘‘Misrepresentation
and scheme or device,’’ outlines the
policies governing producers who have
erroneously or fraudulently represented
themselves. Section 1465.35 is revised
to improve transparency related to the
participant actions and consequences of
engaging in misrepresentation or
scheme or device. This revision aligns
AMA with other NRCS conservation
programs.
VerDate Aug<31>2005
18:21 Nov 19, 2008
Jkt 217001
Paragraph 1465.35(b) expands on the
actions that may be deemed
misrepresentation or scheme or device
to include any action intended to
deprive a tenant or sharecropper of
entitled payments. These revisions are
consistent with other NRCS
conservation programs.
Paragraph 1465.35(c) is added to
clarify that if paragraphs § 1465.35(a) or
§ 1465.35(b) apply to a participant, their
interest in all contracts will be
terminated and they may be determined
ineligible for future funding from any
NRCS conservation programs.
Section 1465.36, Environmental
Services Credits for Conservation
Improvements
Section 1465.36 is added to provide
clarity related to environmental credits
that may be produced on lands under
AMA contracts. It establishes that NRCS
asserts no interest in credits earned, but
that the Agency retains the authority to
ensure that the requirements for AMAfunded improvements are met and
maintained consistent with the terms of
the contract. Where activities may affect
the land covered by an AMA contract,
participants are highly encouraged to
request a compatibility assessment from
NRCS prior to entering into any
environmental credit agreements. This
provision is consistent with other
conservation programs administered by
NRCS.
List of Subjects in 7 CFR Part 1465
Conservation contract, Conservation
plan, Conservation practices, Soil and
water conservation.
■ For the reasons stated in the preamble,
the Natural Resources Conservation
Service revises Part 1465 of Title 7 of
the Code of Federal Regulations to read
as follows:
PART 1465—AGRICULTURAL
MANAGEMENT ASSISTANCE
Subpart A—General Provisions
Sec.
1465.1 Purposes and applicability.
1465.2 Administration.
1465.3 Definitions.
1465.4 National priorities.
1465.5 Program requirements.
1465.6 AMA plan of operations.
1465.7 Conservation practices.
Subpart B—Contracts
1465.20 Applications for participation and
selecting applications for contracting.
1465.21 Contract requirements.
1465.22 Conservation practice operation
and maintenance.
1465.23 Payments.
1465.24 Contract modification, extension,
and transfer of land.
PO 00000
Frm 00007
Fmt 4700
Sfmt 4700
70251
1465.25 Contract violations and
termination.
Subpart C—General Administration
1465.30 Appeals.
1465.31 Compliance with regulatory
measures.
1465.32 Access to operating unit.
1465.33 Equitable relief.
1465.34 Offsets and assignments.
1465.35 Misrepresentation and scheme or
device.
1465.36 Environmental Services Credits for
Conservation Improvements.
Authority: 7 U.S.C. 1524(b).
Subpart A—General Provisions
§ 1465.1
Purposes and applicability.
Through the Agricultural
Management Assistance program
(AMA), the Natural Resources
Conservation Service (NRCS) provides
financial assistance funds annually to
producers in 16 statutorily designated
States to: Construct or improve water
management structures or irrigation
structures; plant trees to form
windbreaks or to improve water quality;
and mitigate risk through production
diversification or resource conservation
practices, including soil erosion control,
integrated pest management, or the
transition to organic farming. AMA is
applicable in Connecticut, Delaware,
Hawaii, Maine, Maryland,
Massachusetts, Nevada, New
Hampshire, New Jersey, New York,
Pennsylvania, Rhode Island, Utah,
Vermont, West Virginia, and Wyoming.
§ 1465.2
Administration.
(a) Administration and
implementation of the conservation
provisions of AMA for the Commodity
Credit Corporation (CCC) is assigned to
the NRCS, using the funds, facilities,
and authorities of the CCC. Accordingly,
where NRCS is mentioned in this Part,
it also refers to the CCC’s funds,
facilities, and authorities, where
applicable.
(b) NRCS will:
(1) Provide overall management and
implementation leadership for AMA;
(2) Establish policies, procedures,
priorities, and guidance for
implementation;
(3) Establish payment limits;
(4) Determine eligible practices;
(5) Develop and approve AMA plans
of operation and contracts with selected
participants;
(6) Provide technical leadership for
implementation, quality assurance, and
evaluation of performance;
(7) Make funding decisions and
determine allocations of AMA funds;
and
(8) Issue payments for conservation
practices completed.
E:\FR\FM\20NOR1.SGM
20NOR1
70252
Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 / Rules and Regulations
(c) No delegation in this part to lower
organizational levels shall preclude the
Chief of NRCS from determining any
issues arising under this Part or from
reversing or modifying any
determination made under this Part.
rwilkins on PROD1PC63 with RULES
§ 1465.3
Definitions.
The following definitions apply to
this part and all documents used in
accordance with this part, unless
specified otherwise:
Agricultural land means cropland,
grassland, rangeland, pasture, and other
agricultural land on which agricultural
or forest-related products or livestock
are produced. Other agricultural lands
may include cropped woodland,
marshes, incidental areas included in
the agricultural operation, and other
types of agricultural land used for
production of livestock.
Agricultural operation means a parcel
or parcels of land whether contiguous or
noncontiguous, which the producer is
listed as the operator or owner/operator
in the Farm Service Agency (FSA)
record system, which is under the
effective control of the producer at the
time the producer applies for a contract,
and which is operated by the producer
with equipment, labor, management,
and production, forestry, or cultivation
practices that are substantially separate
from other operations.
AMA plan of operations (APO) means
the document that identifies the
location and timing of conservation
practices that the participant agrees to
implement on eligible land in order to
address the resource concerns and
program purposes. The APO is part of
the AMA contract.
Applicant means a person, legal
entity, or joint operation that has an
interest in an agricultural operation, as
defined in 7 CFR 1400, who has
requested in writing to participate in
AMA.
Beginning farmer or rancher means a
person or legal entity who:
(1) Has not operated a farm or ranch,
or who has operated a farm or ranch for
not more than 10 consecutive years.
This requirement applies to all members
of an entity who will materially and
substantially participate in the
operation of the farm or ranch.
(2) In the case of a contract with an
individual, individually or with the
immediate family, material and
substantial participation requires that
the individual provide substantial dayto-day labor and management of the
farm or ranch, consistent with the
practices in the county or State where
the farm or ranch is located.
(3) In the case of a contract with an
entity or joint operation, all members
VerDate Aug<31>2005
18:21 Nov 19, 2008
Jkt 217001
must materially and substantially
participate in the operation of the farm
or ranch. Material and substantial
participation requires that each of the
members provide some amount of the
management, or labor and management
necessary for day-to-day activities, such
that if each of the members did not
provide these inputs, operation of the
farm or ranch would be seriously
impaired.
Chief means the Chief of NRCS,
United States Department of Agriculture
(USDA), or designee.
Conservation district means any
district or unit of State, Tribal, or local
government formed under State, Tribal,
or territorial law for the express purpose
of developing and carrying out a local
soil and water conservation program.
Such district or unit of government may
be referred to as a ‘‘conservation
district,’’ ‘‘soil conservation district,’’
‘‘soil and water conservation district,’’
‘‘resource conservation district,’’
‘‘natural resource district,’’ ‘‘land
conservation committee,’’ or similar
name.
Conservation practice means one or
more conservation improvements and
activities, including structural practices,
land management practices, vegetative
practices, forest management, and other
improvements that achieve program
purposes.
Contract means a legal document that
specifies the rights and obligations of
any participant accepted into the
program. An AMA contract is a binding
agreement for the transfer of assistance
from USDA to the participant to share
in the costs of applying conservation
practices.
Designated conservationist means an
NRCS employee whom the State
Conservationist has designated as
responsible for AMA administration in
a specific area.
Historically underserved producer
means an eligible person, joint
operation, or legal entity who is a
beginning farmer or rancher, socially
disadvantaged farmer or rancher, or
limited resource farmer or rancher.
Indian land is an inclusive term
describing all lands held in trust by the
United States for individual Indians or
Tribes, or all lands, titles to which are
held by individual Indians or Tribes,
subject to Federal restrictions against
alienation or encumbrance, or all lands
which are subject to the rights of use,
occupancy and/or benefit of certain
Tribes. For purposes of this Part, the
term Indian land also includes land for
which the title is held in fee status by
Indian tribes, and the U.S. Governmentowned land under the Bureau of Indian
Affairs jurisdiction.
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
Indian Tribe means any Indian tribe,
band, nation, or other organized group
or community, including any Alaska
Native village or regional or village
corporation as defined in or established
pursuant to the Alaska Native Claims
Settlement Act (43 U.S.C. 1601 et seq.)
that is eligible for the special programs
and services provided by the United
States to Indians because of their status
as Indians.
Joint operation means, as defined in 7
CFR part 1400, a general partnership,
joint venture, or other similar business
arrangement in which the members are
jointly and severally liable for the
obligations of the organization.
Legal entity means, as defined in 7
CFR part 1400, an entity created under
Federal or State law that:
(1) Owns land or an agricultural
commodity, product, or livestock; or
(2) Produces an agricultural
commodity, product, or livestock.
Lifespan means the period of time in
which a conservation practice should be
operated and maintained and used for
the intended purpose.
Limited resource farmer or rancher
means:
(1) A person with direct or indirect
gross farm sales of not more than
$155,200 in each of the previous two
years (adjusted for inflation using the
Prices Paid by Farmer Index as
compiled by the National Agricultural
Statistics Service), and
(2) Has a total household income at or
below the national poverty level for a
family of four, or less than 50 percent
of county median household income in
each of the previous two years (to be
determined annually using Commerce
Department data).
Liquidated damages means a sum of
money stipulated in the AMA contract
that the participant agrees to pay NRCS
if the participant fails to adequately
complete the terms of the contract. The
sum represents an estimate of the
expenses incurred to service the
contract and reflects the difficulties of
proof of loss and the inconvenience or
non-feasibility of otherwise obtaining an
adequate remedy.
Livestock means all animals produced
on farms and ranches, as determined by
the Chief.
Natural Resources Conservation
Service (NRCS) is an agency of the
USDA, which has responsibility for
administering AMA using the funds,
facilities, and authorities of the CCC.
Nonindustrial private forest land
means rural land that has existing tree
cover or is suitable for growing trees;
and is owned by any nonindustrial
private individual, group, association,
corporation, Indian Tribe, or other
E:\FR\FM\20NOR1.SGM
20NOR1
rwilkins on PROD1PC63 with RULES
Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 / Rules and Regulations
private legal entity that has definitive
decision-making authority over the
land.
Operation and maintenance means
work performed by the participant to
keep the applied conservation practice
functioning for the intended purpose
during the conservation practice
lifespan. Operation includes the
administration, management, and
performance of non-maintenance
actions needed to keep the completed
practice safe and functioning as
intended. Maintenance includes work to
prevent deterioration of the practice,
repairing damage, or replacement of the
practice to its original condition if one
or more components fail.
Operation and maintenance (O&M)
agreement means the document that, in
conjunction with the APO, specifies the
operation and maintenance
responsibilities of the participants for
conservation practices installed with
AMA assistance.
Participant means a person, legal
entity, or joint operation who is
receiving payment or is responsible for
implementing the terms and conditions
of an AMA contract.
Payment means the financial
assistance provided to the participant
based on the estimated costs incurred in
performing or implementing
conservation practices, including costs
for: Planning, design, materials,
equipment, installation, labor,
maintenance, management, or training,
as well as the estimated income
foregone by the producer for the
designated conservation practices.
Person means, as defined in 7 CFR
part 1400, an individual, natural person
and does not include a legal entity.
Producer means a person, legal entity,
or joint operation who has an interest in
the agricultural operation, according to
7 CFR part 1400, or who is engaged in
agricultural production or forestry
management.
Resource concern means a specific
natural resource problem that represents
a significant concern in a State or region
and is likely to be addressed
successfully through the
implementation of the conservation
practices by producers.
Secretary means the Secretary of the
USDA.
Socially disadvantaged farmer or
rancher means a farmer or rancher who
has been subjected to racial or ethnic
prejudices because of their identity as a
member of a group without regard to
their individual qualities.
State Conservationist means the
NRCS employee authorized to direct
and supervise NRCS activities in a State,
VerDate Aug<31>2005
18:21 Nov 19, 2008
Jkt 217001
the Caribbean Area, or the Pacific Island
Area.
Structural practice means a
conservation practice, including a
vegetative practice, that involves
establishing, constructing, or installing a
site-specific measure to conserve and
protect a resource from degradation, or
improve soil, water, air, or related
natural resources in the most costeffective manner. Examples include, but
are not limited to, animal waste
management facilities, terraces, grassed
waterways, tailwater pits, livestock
water developments, contour grass
strips, filterstrips, critical area plantings,
tree plantings, establishment or
improvement of wildlife habitat, and
capping of abandoned wells.
Technical assistance means technical
expertise, information, and tools
necessary for the conservation of natural
resources on land active in agricultural,
forestry, or related uses. The term
includes the following: (1) Technical
services provided directly to farmers,
ranchers, and other eligible entities,
such as conservation planning,
technical consultation, and assistance
with design and implementation of
conservation practices; and (2) technical
infrastructure, including activities,
processes, tools, and agency functions
needed to support delivery of technical
services, such as technical standards,
resource inventories, training, data,
technology, monitoring, and effects
analyses.
Technical Service Provider (TSP)
means an individual, private-sector
entity, or public agency certified by
NRCS to provide technical services to
program participants or in lieu of or on
behalf of NRCS.
§ 1465.4
National priorities.
(a) The Chief, with advice from State
Conservationists, will identify national
priorities to achieve the conservation
objectives of AMA.
(b) National priorities will be used to
guide annual funding allocations to
States.
(c) State Conservationists will use
national priorities in conjunction with
State and local priorities to prioritize
and select AMA applications for
funding.
(d) NRCS will undertake periodic
reviews of the national priorities and
the effects of program delivery at the
State and local level to adapt the
program to address emerging resource
issues.
§ 1465.5
Program requirements.
(a) Participation in AMA is voluntary.
The participant, in cooperation with the
local conservation district, applies for
PO 00000
Frm 00009
Fmt 4700
Sfmt 4700
70253
practice installation for the agricultural
operation. The NRCS provides
payments through contracts to apply
needed conservation practices within a
time schedule specified in the APO.
(b) The Chief determines the funds
available for financial assistance
according to the purpose and projected
cost for which the financial assistance is
provided in a fiscal year. The Chief
allocates the funds available to carry out
AMA in consideration of national
priorities established under § 1465.4.
(c) To be eligible to participate in
AMA, an applicant must:
(1) Own or operate an agricultural
operation within an applicable State, as
listed in § 1465.1;
(2) Provide NRCS with written
evidence of ownership or legal control
for the life of the proposed contract,
including the O&M agreement. An
exception may be made by the Chief:
(i) In the case of land allotted by the
Bureau of Indian Affairs (BIA), Tribal
land, or other instances in which the
Chief determines that there is sufficient
assurance of control; or
(ii) If the applicant is a tenant of the
land involved in agricultural
production, the applicant shall provide
NRCS with the written concurrence of
the landowner in order to apply a
structural practice(s);
(3) Submit an application form
NRCS–CPA–1200, which is located
electronically at https://
www.nrcs.usda.gov/programs/AMA/
index.html;
(4) Agree to provide all information to
NRCS determined to be necessary to
assess the merits of a proposed project
and to monitor contract compliance;
(5) Provide a list of all members of the
legal entity and embedded entities along
with members’ tax identification
numbers and percentage interest in the
entity. Where applicable, American
Indians, Alaska Natives, and Pacific
Islanders may use another unique
identification number for each
individual eligible for payment;
(6) Supply other information, as
required by NRCS, to determine
payment eligibility as established by 7
CFR part 1400, Adjusted Gross Income
(AGI);
(7) With regard to any participant that
utilizes a unique identification number
as an alternative to a tax identification
number will utilize only that identifier
for any and all other AMA contracts to
which the participant is a party.
Violators will be considered to have
provided fraudulent representation and
be subject to full penalties of § 1465.25;
(8) States, political subdivisions, and
entities thereof will not be persons
eligible for payment. Any cooperative
E:\FR\FM\20NOR1.SGM
20NOR1
70254
Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 / Rules and Regulations
association of producers that markets
commodities for producers shall not be
considered to be a person eligible for
payment;
(9) Be in compliance with the terms
of all other USDA-administered
conservation program agreements to
which the participant is a party; and
(10) Develop and agree to comply
with an APO and O&M agreement, as
described in § 1465.3.
(d) Land may only be considered for
enrollment in AMA if NRCS determines
that the land is:
(1) Privately owned land;
(2) Publicly owned land where:
(i) The land is a working component
of the participant’s agricultural and
forestry operation; and
(ii) The participant has control of the
land for the term of the contract; and
(iii) The conservation practices to be
implemented on the public land are
necessary and will contribute to an
improvement in the identified resource
concern that is on private land; or
(3) The land is federally recognized
Tribal, BIA allotted, or Indian land.
rwilkins on PROD1PC63 with RULES
§ 1465.6
AMA plan of operations.
(a) All conservation practices in the
APO must be approved by NRCS and
developed and carried out in
accordance with the applicable NRCS
technical guidance.
(b) The participant is responsible for
implementing the APO.
(c) The APO must include:
(1) A description of the participant’s
specific conservation and
environmental objectives to be
achieved;
(2) To the extent practicable, the
quantitative or qualitative goals for
achieving the participant’s conservation
and environmental objectives;
(3) A description of one or more
conservation practices in the
conservation system, including
conservation planning, design, or
installation activities, to be
implemented to achieve the
conservation and environmental
objectives;
(4) A description of the schedule for
implementing the conservation
practices, including timing, sequence,
operation, and maintenance; and
(5) Information that will enable
evaluation of the effectiveness of the
plan in achieving the environmental
objectives.
(d) An APO may be modified in
accordance with § 1465.24.
§ 1465.7
Conservation practices.
(a) The State Conservationist will
determine the conservation practices
eligible for AMA payments. To be
VerDate Aug<31>2005
18:21 Nov 19, 2008
Jkt 217001
considered eligible conservation
practices, the practices must meet the
purposes of the AMA as set out in
§ 1465.1. A list of eligible practices will
be available to the public.
(b) The APO includes the schedule of
operations, activities, and payment rates
of the practices needed to solve
identified natural resource concerns.
Subpart B—Contracts
§ 1465.20 Applications for participation
and selecting applications for contracting.
(a) Any producer who has eligible
land may submit an application for
participation in AMA at a USDA service
center. Producers who are members of a
joint operation shall file a single
application for the joint operation.
(b) NRCS will accept applications
throughout the year. The State
Conservationist will distribute
information on the availability of
assistance, national priorities, and the
State-specific goals. Information will be
provided that explains the process to
request assistance.
(c) The State Conservationist will
develop ranking criteria and a ranking
process to select applications, taking
into account national, State, Tribal, and
local priorities.
(d) The State Conservationist or
designated conservationist using a
locally led process will evaluate, rank
and select applications for contracting
based on the State-developed ranking
criteria and ranking process.
(e) The State Conservationist or
designated conservationist will work
with the applicant to collect the
information necessary to evaluate the
application using the ranking criteria.
§ 1465.21
Contract requirements.
(a) In order for a participant to receive
payments, the participant shall enter
into a contract agreeing to implement
one or more eligible conservation
practices. Costs for technical services
may be included in the contract.
(b) An AMA contract will:
(1) Incorporate by reference all
portions of an agricultural operation
receiving AMA assistance;
(2) Be for a minimum duration of one
year after completion of the last
practice, but not more than 10 years;
(3) Incorporate all provisions as
required by law or statute, including
participant requirements to:
(i) Not conduct any practices on the
agricultural operation that would tend
to defeat the purposes of the contract
according to § 1465.25;
(ii) Refund any AMA payments
received with interest, and forfeit any
future payments under AMA, on the
PO 00000
Frm 00010
Fmt 4700
Sfmt 4700
violation of a term or condition of the
contract, consistent with the provisions
of § 1465.25;
(iii) Refund all AMA payments
received on the transfer of the right and
interest of the producer in land subject
to the contract, unless the transferee of
the right and interest agrees to assume
all obligations, including operation and
maintenance of the AMA contract’s
conservation practices, consistent with
the provisions of § 1465.24; and
(iv) Supply information as required by
NRCS to determine compliance with the
contract and requirements of AMA.
(4) Specify the participant’s
requirements for operation and
maintenance of the applied
conservation practices consistent with
the provisions of § 1465.22; and
(5) Specify any other provision
determined necessary or appropriate by
NRCS.
(c) The participant must apply the
practice(s) according to the schedule set
out in the APO.
§ 1465.22 Conservation practice operation
and maintenance.
(a) The contract will incorporate the
O&M agreement that describes the
lifespan and operation and maintenance
of the conservation practices applied
under the contract.
(b) The O&M agreement incorporates
the Agency expectation that the
participant will operate and maintain
the conservation practice(s) installed
under the contract for its intended
purpose for the lifespan of the
conservation practice, as specified in
the O&M agreement.
(c) NRCS may periodically inspect the
conservation practice(s) during the
contract duration to ensure that
operation and maintenance
requirements are being carried out, and
that the conservation practice is
fulfilling its intended objectives.
(d) Conservation practices installed
before the contract execution, but
included in the contract to obtain the
environmental benefits agreed upon,
must be operated and maintained as
specified in the contract and O&M
agreement.
§ 1465.23
Payments.
(a) The Federal share of payments to
a participant will be:
(1) Up to 75 percent of the estimated
incurred cost or 100 percent of the
estimated income foregone of an eligible
practice, except as provided in
paragraph (a)(2) of this section.
(2) In the case of historically
underserved producers, the payment
rate will be the applicable rate and an
additional rate that is not less than 25
E:\FR\FM\20NOR1.SGM
20NOR1
Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 / Rules and Regulations
percent above the applicable rate,
provided that this increase does not
exceed 90 percent of the estimated
incurred costs or estimated income
foregone.
(3) In no instance shall the total
financial contributions for an eligible
practice from other sources exceed 100
percent of the estimated incurred cost of
the practice.
(b) Participants may contribute their
portion of the estimated costs of
practices through in-kind contributions,
including labor and materials, providing
the materials contributed meet the
NRCS standard and specifications for
the practice being installed.
(c) Payments for practices applied
prior to application or contract
approval—
(1) Payments will not be made to a
participant for a conservation practice
that was applied prior to application for
the program.
(2) Payments will not be made to a
participant for a conservation practice
that was initiated or implemented prior
to contract approval, unless the
participant obtained a waiver from the
State Conservationist or designated
conservationist prior to practice
implementation
(d) The total amount of payments paid
to a participant under this Part may not
exceed $50,000 for any fiscal year.
(e) For purposes of applying the
payment limitations provided for in this
section, NRCS will use the provisions in
7 CFR part 1400, Payment Limitation
and Payment Eligibility.
(f) A participant will not be eligible
for payments for conservation practices
on eligible land if the participant
receives payments or other benefits for
the same practice on the same land
under any other conservation program
administered by USDA.
(g) The participant and NRCS must
certify that a conservation practice is
completed in accordance with the
contract before NRCS will approve any
Payment.
(h) Subject to fund availability, the
payment rates for conservation practices
scheduled after the year of contract
obligation may be adjusted to reflect
increased costs.
rwilkins on PROD1PC63 with RULES
§ 1465.24 Contract modifications,
extensions, and transfers of land.
(a) The participant and NRCS may
modify a contract if both parties agree
to the contract modification, the APO is
revised in accordance with NRCS
requirements, and the designated
conservationist approves the modified
contract.
(b) It is the participant’s responsibility
to notify NRCS when he/she either
VerDate Aug<31>2005
18:21 Nov 19, 2008
Jkt 217001
anticipates the voluntary or involuntary
loss of control of the land.
(c) The participant and NRCS may
mutually agree to transfer a contract to
another party.
(1) To receive an AMA payment, the
transferee must be determined by NRCS
to be eligible to participate in AMA and
shall assume full responsibility under
the contract, including the O&M
agreement for those conservation
practices already installed and those
conservation practices to be installed as
a condition of the contract.
(2) With respect to any and all
payment owed to participants who wish
to transfer ownership or control of land
subject to a contract, the division of
payment shall be determined by the
original party and the party’s successor.
In the event of a dispute or claim on the
distribution of payments, NRCS may
withhold payments without the accrual
of interest pending a settlement or
adjudication on the rights to the funds.
(d) NRCS may require a participant to
refund all or a portion of any assistance
earned under AMA if the participant
sells or loses control of the land under
an AMA contract and the successor in
interest is not eligible or refuses to
accept future payments to participate in
the AMA or refuses to assume
responsibility under the contract.
(e) The participants to the contract
shall be jointly and severally
responsible for refunding the payments
with applicable interest pursuant to
paragraph (d) of this section.
(f) In the event a conservation practice
fails through no fault of the participant,
the State Conservationist may issue
payments to re-establish the
conservation practice, at the rates
established in accordance with
§ 1465.23, provided such payments do
not exceed the payment limitation
requirements as set forth in § 1465.23.
§ 1465.25 Contract violations and
termination.
(a) If NRCS determines that a
participant is in violation of the terms
of a contract, O&M agreement, or
documents incorporated by reference
into the contract, NRCS shall give the
participant notice and 60 days, unless
otherwise determined by the State
Conservationist, to correct the violation
and comply with the terms of the
contract and attachments thereto. If a
participant continues in violation, the
State Conservationist may terminate the
AMA contract.
(b) Notwithstanding the provisions of
paragraph (a) of this section, a contract
termination shall be effective
immediately upon a determination by
the State Conservationist that the
PO 00000
Frm 00011
Fmt 4700
Sfmt 4700
70255
participant has submitted false
information or filed a false claim, or
engaged in any act, scheme, or device
for which a finding of ineligibility for
payments is permitted under the
provisions of § 1465.35, or in a case in
which the actions of the party involved
are deemed to be sufficiently purposeful
or negligent to warrant a termination
without delay.
(c) If NRCS terminates a contract, the
participant shall forfeit all rights to
future payments under the contract and
refund all or part of the payments
received, plus interest. Participants
violating AMA contracts may be
determined ineligible for future NRCSadministered conservation program
funding.
(1) The State Conservationist may
require only a partial refund of the
payments received if the State
Conservationist determines that a
previously installed conservation
practice can function independently, is
not affected by the violation or the
absence of other conservation practices
that would have been installed under
the contract, and the participant agrees
to operate and maintain the installed
conservation practice for the life span of
the practice.
(2) If NRCS terminates a contract due
to breach of contract or the participant
voluntarily terminates the contract
before any contractual payments have
been made, the participant shall forfeit
all rights for further payments under the
contract and shall pay such liquidated
damages as prescribed in the contract.
The State Conservationist will have the
option to waive the liquidated damages
depending upon the circumstances of
the case.
(i) When making all contract
termination decisions, NRCS may
reduce the amount of money owed by
the participant by a proportion that
reflects the good faith effort of the
participant to comply with the contract
or the existence of hardships beyond the
participant’s control that have
prevented compliance with the contract.
If the participant claims hardship, that
claim must be well documented and
cannot have existed when the applicant
applied for participation in the program.
(ii) The participant may voluntarily
terminate a contract if NRCS agrees
based on NRCS’s determination that
termination is in the public interest.
(iii) In carrying out NRCS’s role in
this section, NRCS may consult with the
local conservation district.
E:\FR\FM\20NOR1.SGM
20NOR1
70256
Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 / Rules and Regulations
Subpart C—General Administration
§ 1465.30
Appeals.
(a) A participant may obtain
administrative review of an adverse
decision under AMA in accordance
with 7 CFR parts 11 and 614, except as
provided in paragraph (b) of this
section.
(b) The following decisions are not
appealable:
(1) Payment rates, payment limits;
(2) Funding allocations;
(3) Eligible conservation practices;
and
(4) Other matters of general
applicability, including:
(i) Technical standards and formulas;
(ii) Denial of assistance due to lack of
funds or authority; or
(iii) Science-based formulas and
criteria.
§ 1465.31 Compliance with regulatory
measures.
Participants who carry out
conservation practices shall be
responsible for obtaining the authorities,
rights, easements, permits, or other
approvals necessary for the
implementation, operation, and
maintenance of the conservation
practices in keeping with applicable
laws and regulations. Participants shall
be responsible for compliance with all
laws and for all effects or actions
resulting from the participant’s
performance under the contract.
§ 1465.32
Access to operating unit.
Any authorized NRCS representative
shall have the right to enter an operating
unit or tract for the purpose of
determining eligibility and for
ascertaining the accuracy of any
representations related to contracts and
performance. Access shall include the
right to provide technical assistance;
determine eligibility; inspect any work
undertaken under the contracts,
including the APO and O&M agreement;
and collect information necessary to
evaluate the conservation practice
performance as specified in the
contracts. The NRCS representative
shall make an effort to contact the
participant prior to exercising this
provision.
rwilkins on PROD1PC63 with RULES
§ 1465.33
Equitable relief.
(a) If a participant relied upon the
advice or action of any authorized NRCS
representative and did not know, or
have reason to know, that the action or
advice was improper or erroneous, the
State Conservationist may grant relief to
the extent it is deemed appropriate by
NRCS. Where a participant believes that
detrimental reliance on the advice or
VerDate Aug<31>2005
18:21 Nov 19, 2008
Jkt 217001
action of a NRCS representative resulted
in an ineligibility or program violation,
the participant may request equitable
relief under 7 CFR part 635.
(b) The financial or technical liability
for any action by a participant that was
taken based on the advice of an NRCS
certified non-USDA TSP is the
responsibility of the certified TSP and
will not be assumed by NRCS when
NRCS authorizes payment.
(c) If, during the term of an AMA
contract, a participant has been found in
violation of a provision of the contract,
the O&M agreement, or any document
incorporated by reference through
failure to fully comply with that
provision, the participant may be
eligible for equitable relief under 7 CFR
part 635.
§ 1465.34
Offsets and assignments.
(a) Except as provided in paragraph
(b) of this section, any payment or
portion thereof to any participant shall
be made without regard to questions of
title under State law and without regard
to any claim or lien against the crop, or
proceeds thereof, in favor of the owner
or any other creditor except agencies of
the United States Government. The
regulations governing offsets and
withholdings found at 7 CFR part 1403
shall be applicable to contract
payments.
(b) AMA participants may assign any
payments in accordance with 7 CFR part
1404.
§ 1465.35 Misrepresentation and scheme
or device.
(a) A participant who is determined to
have erroneously represented any fact
affecting an AMA determination made
in accordance with this part shall not be
entitled to contract payments and must
refund to NRCS all payments plus
interest, as determined in accordance
with 7 CFR part 1403.
(b) A participant shall refund to NRCS
all payments, plus interest, as
determined by NRCS, with respect to all
NRCS contracts to which they are a
party if they are determined to have
knowingly:
(1) Adopted any scheme or device
that tends to defeat the purpose of
AMA;
(2) Made any fraudulent
representation;
(3) Adopted any scheme or device for
the purpose of depriving any tenant or
sharecropper of the payments to which
such person would otherwise be
entitled under the program; or
(4) Misrepresented any fact affecting
an AMA determination.
(c) Where paragraph (a) or paragraph
(b) of this section apply, the
PO 00000
Frm 00012
Fmt 4700
Sfmt 4700
participant’s interest in all contracts
shall be terminated. In accordance with
§ 1465.25(c), NRCS may determine the
producer ineligible for future funding
from any NRCS conservation programs.
§ 1465.36 Environmental Services Credits
for Conservation Improvements.
USDA recognizes that environmental
benefits will be achieved by
implementing conservation practices
funded through AMA, and that
environmental credits may be gained as
a result of implementing activities
compatible with the purposes of an
AMA contract. NRCS asserts no direct
or indirect interest on these credits.
However, NRCS retains the authority to
ensure that the requirements for AMA
funded improvements are met and
maintained consistent with § 1465.22.
Where activities required under an
environmental credit agreement may
affect land covered under an AMA
contract, participants are highly
encouraged to request a compatibility
assessment from NRCS prior to entering
into such agreements.
Dated: November 12, 2008.
Arlen L. Lancaster,
Vice President, Commodity Credit
Corporation and Chief, Natural Resources
Conservation Service.
[FR Doc. E8–27398 Filed 11–19–08; 8:45 am]
BILLING CODE 3410–05–P
DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection
Service
9 CFR Part 93
[Docket No. APHIS–2008–0108]
Remove South Carolina From the Lists
of States Approved To Receive
Stallions and Mares From CEMAffected Regions
Animal and Plant Health
Inspection Service, USDA.
ACTION: Final rule.
AGENCY:
SUMMARY: We are amending the animal
importation regulations by removing
South Carolina from the lists of States
approved to receive certain stallions and
mares imported into the United States
from regions affected with contagious
equine metritis. This action is necessary
because South Carolina no longer offers
contagious equine metritis quarantine or
treatment services and has requested
removal from the lists.
DATES: Effective Date: November 20,
2008.
FOR FURTHER INFORMATION CONTACT: Dr.
Ellen Buck, Senior Staff Veterinarian,
E:\FR\FM\20NOR1.SGM
20NOR1
Agencies
[Federal Register Volume 73, Number 225 (Thursday, November 20, 2008)]
[Rules and Regulations]
[Pages 70245-70256]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-27398]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 /
Rules and Regulations
[[Page 70245]]
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1465
RIN 0578-AA50
Agricultural Management Assistance Program
AGENCY: Commodity Credit Corporation, United States Department of
Agriculture.
ACTION: Interim final rule with request for comment.
-----------------------------------------------------------------------
SUMMARY: The Natural Resources Conservation Service (NRCS) is amending
the regulations for the Agricultural Management Assistance program
(AMA). Section 2801 of the Food, Conservation, and Energy Act of 2008
(2008 Act) amended the Agricultural Management Assistance program (AMA)
by: Expanding the program's geographic scope to include Hawaii; and
providing $15 million in mandatory funding for each of fiscal years
2008 through 2012. NRCS issues this interim final rule with request for
comment to incorporate statutory changes resulting from the 2008 Act
and to make administrative changes to improve program efficiency.
DATES: Effective Date: The rule is effective November 20, 2008. Comment
date: Submit comments on or before January 20, 2009.
ADDRESSES: You may send comments (identified by Docket Number NRCS-IFR-
08002) using any of the following methods:
Government-wide rulemaking Web site: go to https://
www.regulations.gov and follow the instructions for sending comments
electronically.
Mail: Director, Financial Assistance Programs Division,
Natural Resources Conservation Service, Agricultural Management
Assistance Program Comments, P.O. Box 2890, Room 5237-S, Washington, DC
20013.
Fax: (202) 720-4265
Hand Delivery: Room 5237-S of the USDA South Office
Building, 1400 Independence Avenue, SW., Washington, DC 20250, between
9 a.m. and 4 p.m., Monday through Friday, except Federal Holidays.
Please ask the guard at the entrance to the South Office Building to
call: (202) 720-4527 in order to be escorted into the building.
This interim final rule may be accessed via Internet.
Users can access the NRCS homepage at https://www.nrcs.usda.gov/; select
the Farm Bill link from the menu; select the Interim final link from
beneath the Final and Interim Final Rules Index title. Persons with
disabilities who require alternative means for communication (Braille,
large print, audio tape, etc.) should contact the USDA TARGET Center
at: (202) 720-2600 (voice and TDD).
FOR FURTHER INFORMATION CONTACT: Director, Financial Assistance
Programs Division, Natural Resources Conservation Service, P.O. Box
2890, Washington, DC 20013-2890; Phone: (202) 720-1844; Fax: (202) 720-
4265; or e-mail: AMA2008@wdc.usda.gov.
SUPPLEMENTARY INFORMATION:
Regulatory Certifications
Executive Order 12866
The Office of Management and Budget (OMB) has determined that this
interim final rule is a non-significant regulatory action under
Executive Order 12866.
Regulatory Flexibility Act
NRCS has determined that the Regulatory Flexibility Act is not
applicable to this interim final rule because NRCS is not required by 5
U.S.C. 553, or any other provision of law, to publish a notice of
proposed rule making with respect to the subject matter of this rule.
Environmental Analysis
The National Environmental Policy Act (NEPA) applies to ``major
Federal actions'' where the agency has control and responsibility over
the actions and has discretion as to how the actions will be carried
out (40 CFR part 1508.18). Accordingly, any actions that are directed
by Congress to be implemented in such manner that there is no
discretion on the part of the agency are not required to undergo an
environmental review under NEPA. The lack of discretion over the action
by the agency undermines the rationale for NEPA review--evaluation of
the environmental impacts of the proposed action and consideration of
alternative actions to avoid or mitigate the impacts. Where Congress
has directed that a specific action be implemented and an agency has no
discretion to consider and take alternative actions, NEPA review would
be moot.
For AMA, Congress has mandated the addition of Hawaii to the list
of States to which the Secretary is authorized to provide financial
assistance. The Secretary of Agriculture is, therefore, required to
make this addition to the program. There is no discretion on the part
of the agency to take this action. For this reason, an environmental
review of these changes under NEPA is not required.
Civil Rights Impact Analysis
NRCS has determined through a Civil Rights Impact Analysis that the
issuance of this interim final rule will not have a significant effect
on minorities. Copies of the Civil Rights Impact Analysis may be
obtained from Director, Financial Assistance Programs Division, U.S.
Department of Agriculture (USDA), Natural Resources Conservation
Service (NRCS), P.O. Box 2890, Washington, DC 20013-2890.
Paperwork Reduction Act
Section 2904 of the 2008 Act requires that implementation of
programs authorized by Title II of the 2008 Act be made without regard
to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.)
Therefore, NRCS is not reporting recordkeeping or estimated paperwork
burden associated with this interim final rule.
Government Paperwork Elimination Act
NRCS is committed to compliance with the Government Paperwork
Elimination Act, which requires Government agencies, in general, to
provide the public the option of submitting information or transacting
business electronically to the maximum extent possible. To better
accommodate public access, NRCS has developed an online application and
information system for public use.
[[Page 70246]]
Executive Order 12988
This interim final rule has been reviewed in accordance with
Executive Order 12988, Civil Justice Reform. The provisions of this
interim final rule are not retroactive. Furthermore, the provisions of
this interim final rule preempt State and local laws to the extent such
laws are inconsistent with this interim final rule. Before an action
may be brought in a Federal court of competent jurisdiction, the
administrative appeal rights afforded persons at 7 CFR parts 11 and 614
must be exhausted.
Federal Crop Insurance Reform and Department of Agriculture
Reorganization Act of 1994
USDA classified this interim final rule as ``not major'' under
Section 304 of the Department of Agriculture Reorganization Act of
1994, Public Law 104-354. Therefore, a risk assessment is not required.
Unfunded Mandates Reform Act of 1995
Pursuant to Title II of the Unfunded Mandates Reform Act of 1995,
Public Law 104-4, NRCS assessed the effects of this rulemaking action
on State, local, and Tribal governments, and the public. This action
does not compel the expenditure of $100 million or more by any State,
local, or Tribal governments, or anyone in the private sector, and
therefore, a statement under section 202 of the Unfunded Mandates
Reform Act is not required.
Discussion of Program
The conservation provisions of AMA are administered and implemented
under the general supervision and direction of the Chief of NRCS, who
is a Vice President of the Commodity Credit Corporation (CCC).
Accordingly, where NRCS is mentioned in this rule it also refers to the
CCC's funds, facilities, and authorities where applicable. While NRCS
has leadership for the conservation provisions of AMA, other agencies
have authority for different aspects of the program. The Agricultural
Marketing Service (AMS) has responsibility for the organic
certification cost-share program and the Risk Management Agency (RMA)
has responsibility for the insurance cost-share program for mitigation
of financial risk.
Through AMA, NRCS provides technical and financial assistance to
participants in eligible States to address issues, such as water
management, water quality, and erosion control by incorporating
conservation practices into their agricultural operations. Producers
may construct or improve water management structures or irrigation
structures; plant trees for windbreaks or to improve water quality; and
mitigate risk through production diversification or resource
conservation practices, including soil erosion control, integrated pest
management, or organic farming.
Section 524(b) of the Federal Crop Insurance Act, as amended by
Section 133 of the Agricultural Risk Protection Act of 2000, authorized
AMA to provide assistance to producers in States that historically had
low participation in the Federal Crop Insurance Program. The Farm
Security and Rural Investment Act of 2002 (2002 Act) made amendments to
AMA to specify the eligible States and provide additional clarity to
the assistance to be made available. The AMA regulation (7 CFR part
1465) was published in the Federal Register on April 9, 2003.
Section 2801 of the 2008 Act amended AMA to include Hawaii as an
eligible State, and to authorize $15 million in funding each year from
fiscal year (FY) 2008 through FY 2012. NRCS has evaluated seven years
of program implementation and identified opportunities to improve
program administration and alignment with other financial assistance
programs administered by the Agency. The revisions to the AMA
regulation, described below, reflect the changes mandated by the 2008
Act and opportunities to improve program administration for greater
efficiency.
Summary of Provisions
Section 1465.1, Purposes and Applicability
Section 1465.1, ``Purposes and Applicability,'' sets forth the
purpose, scope, and objectives of AMA. Through AMA, NRCS provides
technical and financial assistance to producers in statutorily-
designated States. Section 2801 of the 2008 Act expanded AMA's
geographic scope to include the State of Hawaii. In response, NRCS
revises Sec. 1465.1 to add Hawaii to the list of States eligible for
AMA assistance and replaces ``15'' with the number ``16'' when
referring to the number of eligible States. AMA is now available in
Connecticut, Delaware, Hawaii, Maryland, Massachusetts, Maine, Nevada,
New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Utah,
Vermont, West Virginia, and Wyoming.
Section 1465.2, Administration
Section 1465.2, ``Administration,'' describes the role of NRCS and
provides a brief overview of the Agency's administrative
responsibilities. NRCS amends Sec. 1465.2 to reflect the 2003 decision
made by USDA to have NRCS administer the AMA natural resource
conservation provisions and to clarify NRCS's relationship with the
Commodity Credit Corporation (CCC). Prior to FY 2004, NRCS and the Farm
Service Agency (FSA) jointly administered the AMA natural resource
conservation provisions. A 2003 decision made by USDA transferred all
administrative responsibilities to NRCS. Therefore, Sec. 1465.2 is
revised to remove reference to Farm Service Agency (FSA) and reflect
that NRCS has the responsibility for issuing payments for conservation
practices. NRCS also revises Sec. 1465.2(c) to clarify that lower
delegations of authority can be overridden by the Chief, if necessary,
to uphold the purposes of AMA. This addition is consistent with other
NRCS natural resource conservation programs.
Section 1465.3, Definitions
Section 1465.3 sets forth definitions for terms used throughout
this regulation. Several new definitions have been added or revised to
align AMA terms with terms used by other NRCS conservation programs.
The following existing definitions are revised: ``Applicant,''
``Conservation district,'' ``Conservation practice,'' ``Contract,''
``Indian Tribe,'' ``Liquidated damages,'' ``Participant,''
``Producer,'' ``State Conservationist,'' and ``Technical assistance.''
NRCS also replaces several existing terms with terms more reflective of
AMA's purposes. The term,``Cost-share payment'' is replaced with
``Payment,'' to reflect the breadth of the types of costs that may be
considered in determining payments. The term ``Indian trust lands'' is
replaced with the term ``Indian land'' to broaden the scope and align
AMA with other NRCS conservation programs. Finally, the term
``Conservation plan'' is replaced with the term ``AMA plan of
operations (APO)'' to align AMA with other NRCS conservation programs
that identify a plan of operations. NRCS adds the following terms and
definitions to the AMA regulations to be consistent with related
conservation programs: ``Agricultural land,'' ``Agricultural
operation,'' ``Beginning farmer or rancher,'' ``Historically
underserved producer,'' ``Joint operation,'' ``Legal entity,''
``Limited resource farmer or rancher,'' ``Livestock,'' ``Natural
Resources Conservation Service (NRCS),'' ``Nonindustrial private forest
land,'' ``Operation and maintenance (O&M) agreement,'' ``Person,''
``Resource concern,'' ``Socially disadvantaged farmer or rancher,''
``Structural
[[Page 70247]]
practice,'' and ``Technical Service Provider (TSP).'' The terms, ``Unit
of concern'' and ``State Technical Committees'' are removed since they
are no longer used in the AMA regulations.
Specifically, the following definitions have been amended:
NRCS adds the definition of ``agricultural land'' to better define
the land where AMA assistance will be provided. Agricultural land is
cropland, grassland, rangeland, pasture, and other agricultural land,
on which agricultural and forest-related products or livestock are
produced and resource concerns may be addressed. Agricultural lands
include cropped woodland, marshes, incidental areas included in the
agricultural operation, and other types of agricultural land used for
the production of livestock.
NRCS adds the definition of ``agricultural operation'' to closely
align AMA's definitions with definitions used by other NRCS
conservation programs. Section 1465.3 defines an ``agricultural
operation'' as ``a parcel or parcels of land whether contiguous or
noncontiguous, which the producer is listed as the operator or owner/
operator in the Farm Service Agency (FSA) record system, which is under
the effective control of the producer at the time the producer applies
for a contract, and which is operated by the producer with equipment,
labor, management, and production, forestry, or cultivation practices
that are substantially separate from other operations.''
NRCS replaces the term, ``conservation plan'' with ``AMA plan of
operations'' to ensure consistency across NRCS programs. Prior to this
regulation, AMA participants developed and implemented an AMA plan of
operations. The addition of this term and associated definition
clarifies what constitutes an AMA plan of operations and clarifies
existing processes and documentation procedures. An AMA plan of
operations, which is part of the AMA contract, identifies the location
and timing of conservation practices that the participant agrees to
implement.
NRCS revises the definition, ``applicant,'' to simplify the
definition and incorporate the 2008 Act's references to ``person'' and
``legal entity.'' The term, ``applicant,'' is defined as follows: ``a
person, legal entity, or joint operation that has an interest in an
agricultural operation, who has requested in writing to participate in
AMA.''
NRCS adds the definition, ``beginning farmer and rancher'' in
accordance with Section 2708 of the 2008 Act which seeks to expand
conservation program participation among farmers and ranchers who have
been historically underserved. The definition of ``beginning farmer and
rancher'' reflects the definition provided defined in 1201(a) of the
Food Security Act of 1985. Generally speaking, a ``beginning farmer or
rancher'' is an individual who has not operated a farm or ranch, or who
has operated a farm or ranch for not more than 10 consecutive years.
This requirement applies to all members of an entity, who will
materially and substantially participate in the operation of the farm
or ranch. NRCS also revises the ``conservation district'' definition to
reflect the 2008 Act's definition. A conservation district means ``any
district or unit of State, Tribal, or local government formed under
State, Tribal, or territorial law for the express purpose of developing
and carrying out a local soil and water conservation program.'' Such
district or unit of government may be referred to as a ``conservation
district,'' ``soil conservation district,'' ``soil and water
conservation district,'' ``resource conservation district,'' ``natural
resource district,'' ``land conservation committee,'' or similar name.
NRCS revises ``conservation practice'' to clarify what is meant by
conservation treatment. Specifically, a conservation practice means
``one or more conservation improvements and activities, including
structural practices, land management practices, vegetative practices,
forest management, and other improvements that achieve program
purposes.''
NRCS revises the definition of ``contract'' in an effort to make
definitions consistent across other programs. A contract is ``a legal
document that specifies the rights and obligations of any participant
in the program. An AMA contract is a binding agreement for the transfer
of assistance from USDA to the participant to share in the costs of
applying conservation practices.''
The term, ``historically underserved producer,'' merges the terms
``beginning farmer or rancher,'' ``limited resource farmer or
rancher,'' and ``socially disadvantaged farmer or rancher'' into one
definition to simplify terms within this regulation.
NRCS revises the definition of ``Indian Tribe'' to ensure the
definition incorporates Alaska Native village corporations, as
established pursuant to the Alaska Claims Settlement Act (43 U.S.C.
1601 et seq.).
NRCS replaces the term and definition, ``Indian trust land,'' to
make it consistent with the term and associated definition, ``Indian
land,'' which is used by other NRCS conservation programs. The ``Indian
land'' definition encompasses lands which are also held in fee title by
Indian tribes or Tribal members. Specifically, ``Indian land'' is ``an
inclusive term describing all lands held in trust by the United States
for individual Indians or Tribes, or all lands, titles to which are
held by individual Indians or Tribes, subject to Federal restrictions
against alienation or encumbrance, or all lands which are subject to
the rights of use, occupancy and/or benefit of certain Tribes.''
NRCS adds the term, ``joint operation,'' to maintain consistency
across all NRCS conservation programs. A joint operation is ``a general
partnership, joint venture, or other similar business arrangement, in
which the members are jointly or severally liable for the obligations
of the organization.''
NRCS adds the term, ``legal entity,'' to maintain consistency
across all NRCS conservation programs. As defined by 7 CFR 1400, ``a
legal entity is an entity created under Federal or State law that: (1)
Owns land or an agricultural commodity, product, or livestock; or (2)
produces an agricultural commodity, product, or livestock.''
NRCS adds the term and associated definition ``limited resource
farmer,'' in accordance with Section 2708 of the 2008 Act which seeks
to expand conservation program participation among farmers and ranchers
who have been historically underserved. The definition of ``limited
resource farmer'' reflects the definition used in the Environmental
Quality Incentive Program's regulation, 7 CFR part 1466. Generally
speaking, a limited resource farmer is a person with direct or indirect
gross farms sales not more than $155200 in each of the previous two
years, who has a total household income at or below the national
poverty level for a family of four, or less than 50 percent of the
county median household income in each of the two previous years.
NRCS revises the definition, ``liquidated damages,'' to make the
definition consistent with the definition used by other NRCS
conservation programs; however, the overall meaning of the term remains
the same as the original regulation's definition. Liquidated damages is
``a sum of money stipulated in the AMA contract that the participant
agrees to pay NRCS if the participant fails to adequately complete the
terms of the contract. The sum represents an estimate of the expenses
incurred to service the contract and reflects the difficulties of proof
of loss and the inconvenience or non-feasibility
[[Page 70248]]
of otherwise obtaining an adequate remedy.''
NRCS adds the term, ``livestock,'' to maintain consistency across
NRCS conservation programs. Livestock means ``all animals produced on
farms and ranches, as determined by the Chief.'' NRCS adds the term,
``Natural Resources Conservation Service,'' to define the USDA agency
that has responsibility for administering AMA.
NRCS adds the term, ``nonindustrial private forest land,'' to
further define land eligible for AMA assistance. Nonindustrial forest
land is rural land that has existing tree cover or is suitable for
growing trees; and is owned by any nonindustrial private individual,
group, association, corporation, Indian Tribe, or other private legal
entity that has definitive decisionmaking authority over the land.
NRCS adds the term ``operation and maintenance agreement'' to
describe the document that, in conjunction with the AMA plan of
operations, specifies the participant's operation and maintenance
responsibilities for conservation practices installed with AMA
assistance.
NRCS revises the definition of ``participant,'' to make it
consistent with other NRCS conservation programs. A participant is ``a
person, joint operation, or legal entity who is receiving payment or is
responsible for implementing an AMA contract's terms and conditions.''
NRCS replaces the term, ``cost share payment'' with the term,
``payment'' to more adequately describe how participants will be
compensated. Payment means the ``financial assistance provided to the
participant based on the estimated costs incurred in performing or
implementing conservation practices, including costs for: planning,
design, materials, equipment, installation, labor, maintenance,
management, or training, as well as the estimated income foregone by
the producer for the designated conservation practices.''
NRCS adds the term, ``person,'' to maintain consistency across all
NRCS conservation programs. As defined by 7 CFR part 1400, a person is
``an individual, natural person and does not include a legal entity.''
NRCS expands upon the definition of ``producer,'' to include
persons or entities involved in forestry management.
NRCS adds the term, ``resource concern,'' to maintain a consistency
of terms across NRCS conservation programs. A resource concern is ``a
specific natural resource problem that represents a significant concern
in a State or region and is likely to be addressed successfully through
the implementation of the conservation practices by producers.''
NRCS adds the term, ``socially disadvantaged farmer or rancher,''
in accordance with Section 2708 of the 2008 Act which seeks to expand
conservation program participation among farmers and ranchers who have
been historically underserved. A socially disadvantaged famer or
rancher is one ``who has been subjected to racial or ethnic prejudices
because of their identity as a member of a group without regard to
their individual qualities.''
NRCS revises the definition, ``State Conservationist,'' to clarify
that the former State Conservationist of Hawaii has become the director
of the Pacific Islands.
NRCS adds the term, ``structural practice,'' to better define a
conservation practice that involves establishing, constructing, or
installing a site-specific measure to conserve and protect a resource
from degradation, or improve soil, water, air, or related natural
resources in the most cost-effective manner.
NRCS revises the term, ``technical assistance,'' to further clarify
the nature of technical assistance under AMA, as well as the types of
land where AMA technical assistance is available.
NRCS adds the term and definition, ``Technical Service Provider
(TSP)'' to clarify that participants may receive technical assistance
from an individual, private-sector entity, or public agency certified
by NRCS to provide technical services, in lieu of or on behalf of NRCS.
Section 1465.4, National Priorities
NRCS inserts a new Sec. 1465.4, entitled ``National Priorities,''
and redesignates the subsequent sections accordingly. The new Sec.
1465.4 provides that NRCS establishes national priorities to guide
funding allocations to States, selection of AMA contracts, and
implementation priority for AMA conservation practices. This new
section also states that the national priorities are reviewed
periodically by NRCS to ensure that the program is addressing priority
conservation concerns. This addition improves AMA consistency with
related conservation programs administered by NRCS.
Section 1465.5, Program Requirements
Section 1465.5, ``Program requirements,'' sets forth land and
applicant eligibility. Throughout the Section the terminology is
revised to make it consistent with the terms used in Sec. 1465.3,
``Definitions.''
Specifically, NRCS revises paragraph (a), replacing the term,
``cost share'' payment with the term, ``payment,'' to more adequately
reflect the type of payments a participant may receive. NRCS also
replaces the term, ``conservation plan,'' with the term, ``AMA plan of
operations,'' to describe the specific document that contains the
conservation practice implementation schedule.
NRCS revises paragraph (c)(2), which requires that the applicant
provide written evidence of ownership or legal control for the life of
the contract and its associated O&M agreement, which is consistent with
additions in Sec. Sec. 1465.3 and 1465.22. NRCS also revises paragraph
(c)(4) to clarify that additional information required by NRCS is for
the purposes of assessing a proposed project's merits and to assist in
monitoring contract compliance.
Section 1465.5 is revised to incorporate existing program
requirements that previously have not been included in the AMA
regulations because they apply via other statutory provisions. In
particular, NRCS revises Sec. 1465.5(c)(6) to clarify that AMA
participants are subject to AGI limitations, 7 CFR Part 1400 and
amendments to Section 1001D of the Food Security Act of 1985 as
authorized by Section 1604 of Title I of the 2008 Act. The AGI and
program eligibility requirements also necessitate that NRCS obtain from
legal entities a list of members, including members in embedded
entities, along with their social security numbers, and percent
interest in the legal entity. Specifically, text has been added to
Sec. 1465.5, ``Program requirements,'' that requires participants to
``supply other information, as required by NRCS, to determine payment
eligibility as established by 7 CFR 1400, Adjusted Gross Income
(AGI).'' This revision also makes AMA consistent with other NRCS
conservation programs.
Paragraph (c) is revised to further clarify that applicants must
provide a list of all members of the legal entity and embedded entities
along with members' social security numbers and percentage interest in
the entity. In the event an applicant uses a unique identification
number rather than a social security or tax identification number, the
unique identification number must be used universally for any and all
AMA contracts. The original subparagraph 1465.5(c)(4) has been removed
as it is redundant with Sec. 1465.5(c)(6), and subparagraph
1465.5(c)(5) has been redesignated as Sec. 1465.5(c)(8). Subparagraph
1465.5(c)(10) is added to clarify that a participant must develop and
agree to comply with an APO and to describe the
[[Page 70249]]
Agency expectation regarding the O&M agreement.
NRCS adds new program requirements in paragraph (c)(9) to improve
program administration and ensure that AMA program goals are met. A
provision is added that requires AMA participants to be in compliance
with terms of all other USDA-administered agreements to which they are
a party. In this manner, NRCS ensures that a participant who receives
NRCS conservation program benefits is meeting existing responsibilities
prior to receiving additional assistance.
Sections 1465.5(d)(2)(i) through Sec. 1465.5(d)(2)(iii) are
redesignated as Sec. 1465.5(d)(2)(A), Sec. 1465.5(d)(2)(B), and Sec.
1465.5(d)(2)(C), respectively. In an effort to make AMA consistent with
other programs, the language contained within paragraph (d)(2) that
addresses enrolling public land is slightly revised, although the
overall intent of the language remains the same.
Section 1465.6, AMA Plan of Operations
NRCS inserts a new section Sec. 1465.6, entitled ``AMA plan of
operations,'' which describes the AMA plan of operations as the
document that contains the information related to practices and
activities to be implemented under AMA. Section 1465.6 specifies the
requirements for the APO and that participants are responsible for
implementing the APO. This addition brings AMA into alignment with
other NRCS conservation programs. Subsequent sections are redesignated
accordingly.
Section 1465.7, Conservation Practices
Section 1465.7, ``Conservation practices,'' describes how NRCS
determines eligible conservation practices. Specifically, Sec.
1465.7(a) is revised to clarify that NRCS will identify and provide
public notice of the conservation practices eligible for payments under
the program. This revision improves AMA consistency with related NRCS
conservation programs. The reference to ``State Technical Committees''
providing advice on the types of conservation practices eligible for
payment is removed, since State Technical Committees are permitted only
to provide advice on conservation programs, authorized by Title XII of
the Food Security Act of 1985. AMA is authorized by the Federal Crop
Insurance Act; therefore, State Technical Committees are not authorized
to provide advice on AMA.
Subpart B--Contracts
Section 1465.20, Application for Participation and Selecting
Applications for Contracting
Section 1465.20, ``Application for participation and selecting
applications for contracting,'' describes the processes for submitting
and selecting applications. This Section remains the same; however, the
term, ``national priorities,'' is inserted in paragraphs (c) and (d) to
account for the policy outlined in Sec. 1465.4, ``National
priorities.'' The reference to ``State Technical Committees'' providing
advice on AMA ranking criteria is removed, since State Technical
Committees are permitted only to provide advice on conservation
programs, authorized by Title XII of the Food Security Act of 1985. AMA
is authorized by the Federal Crop Insurance Act; therefore, State
Technical Committees are not authorized to provide advice on AMA.
Section 1465.21, Contract Requirements
Section 1466.21, ``Contract requirements,'' identifies elements
contained within an AMA contract and the responsibilities of the
participant who is party to the AMA contract. Specifically, paragraph
(a) is revised to change the term ``cost-share payments'' to
``payments,'' and clarify that costs related to technical services may
be included in the contract. This revision does not change current
program practice.
Under Sec. 1465.21(b)(2), contract duration is revised from 3 to
10 years to a minimum duration of one year after completion of the last
practice, and a maximum of 10 years. This provides the flexibility
needed for establishing agreement lengths based on conservation
concerns and other factors, and aligns AMA with other conservation
programs administered by NRCS.
Overall, Sec. 1465.21(b) is restructured to account for additions
to the section and to make the formatting consistent throughout the AMA
regulations, although with the exception of replacing the terms,
``contract and conservation plan'' with ``APO,'' the text has not
changed. Accordingly, subparagraphs 1465.21(b)(3)(i) through
1465.21(b)(3)(iv) are redesignated as 1465.21(b)(3)(A) through
1465.21(b)(3)(D).
Section 1465.22, Conservation Practice Operation and Maintenance
Section 1465.22, ``Conservation practice operation and
maintenance,'' addresses the participant's responsibility for operating
and maintaining conservation practices. Section 1465.22 is divided into
logical content paragraphs and revised to be consistent with the O&M
agreement definition in Sec. 1465.3. NRCS revised Sec. 1465.22 to
clarify that the O&M agreement is part of the AMA contract. The O&M
agreement specifies the terms and conditions under which the
participant must operate and maintain the conservation practices
installed with AMA assistance. This section also clarifies that NRCS
may periodically inspect conservation practices to ensure that they are
being maintained for the conservation practice lifespan as detailed in
the O&M agreement. In the event that NRCS finds that a participant is
not operating and maintaining practices for the specified lifespan
during the contract duration, NRCS may request a refund of payments in
accordance with the AMA contract. NRCS has created an O&M agreement to
articulate the Agency's expectation that the participant is responsible
for maintaining each conservation practice. NRCS has developed this O&M
agreement for two reasons: (1) To increase transparency of a
participant's contract responsibilities; and (2) To ensure these
conservation practices are maintained for the length in time in which
they were designed and created.
NRCS adds Sec. 1465.22(d) to clarify to the participant that
conservation practices installed before contract approval, but included
in the application in order to obtain ranking points, must be operated
and maintained as specified in the contract and O&M agreement. This
addition is consistent with other NRCS conservation programs' policies.
Section 1465.23, Payments
The Section title is revised from ``Cost-share payments'' to
``Payments'' to reflect the variety of costs that are considered in
establishing program payments. Accordingly, the term ``cost-share
payment'' is replaced by ``payment'' throughout the Section. This
section addresses payments and payment limitations applicable to a
participant. Subparagraphs 1465.23(a)(1), 1465.23(a)(2), 1465.23(a)(3),
1465.23(b), 1465.23(c), and 1465.23(d) are redesignated as 1465.23(a),
1465.23(b), 1465.23(c), 1465.23(d), 1465.23(e), 1465.23(f), and
1465.23(g), respectively, to accommodate additions to the section and
to make the formatting consistent throughout the AMA regulations.
Section 1465.23(a) is revised to allow payments of ``up to 75
percent of the estimated cost of an eligible practice
[[Page 70250]]
and up to 100 percent of the estimated income foregone'' rather than
providing a flat rate of 75 percent. Allowing for a range of payment
rates makes it possible to provide reduced rates where participants can
implement a conservation practice at a lower cost. This allows the
opportunity to distribute AMA funds to more participants. A new section
1465.23(a)(2) is added to allow historically underserved producers to
receive the applicable payment rate plus an additional rate that is not
less than 25 percent, provided that this increase does not exceed 90
percent. These changes implement the 2008 Act's emphasis on encouraging
participation by those who have been historically underserved and are
consistent with other related NRCS conservation programs.
Section 1465.23(c) is revised to clarify how conservation practices
implemented or initiated prior to AMA contract approval will be
handled. Section 1465.23(c)(1) states that payments will not be made
for practices applied prior to contract approval. Section 1465.23(c)(2)
describes that practices initiated prior to contract approval are not
eligible for payment, unless the participant had obtained a waiver in
advance from the State or Designated Conservationist. This revision
aligns AMA with other NRCS-administered conservation programs.
NRCS revises Sec. 1465.23(e) as follows: Sec. 1465.23(e) is
expanded to include the statutory reference of the ``Payment Limitation
and Payment Eligibility'' at 7 CFR part 1400. NRCS will attribute
payments to each participating person and legal entity using the same
protocol outlined in 7 CFR part 1400 for commodity and conservation
programs. This is consistent with other conservation programs
administered by NRCS. Subparagraphs 1465.23(c)(i) through
1465.23(c)(iv) are removed as the majority of the provisions are
addressed by reference to 7 CFR part 1400 in the Section.
Section 1465.23(f) is added to state that payments will not be made
for conservation practices on eligible land if payments are already
being received for the same practice on the same land under a USDA
conservation program. These additions are consistent with other related
conservation programs administered by NRCS.
Section 1465.23(h) is added to state that subject to fund
availability, the payment rates for conservation practices scheduled
after the year of contract obligation may be adjusted to reflect
increased costs. NRCS adds this paragraph to enable the Agency to
adjust payments to accommodate for inflation, higher fuel costs, and
increased labor, which impact the cost of implementing a conservation
practice.
Section 1465.24, Contract Modifications, Extensions, and Transfers of
Land
Section 1465.24, ``Contract modifications, extensions, and
transfers of land,'' addresses contract modifications, changes in land
ownership or control of the land, and contract implications if the
participant loses control of the land. Specifically, Sec. 1465.24(a)
is revised to state that when an AMA contract is revised, the APO also
must be revised. The designated conservationist must approve the
modified contract. This new language is consistent with modifications
made in Sec. 1465.6 and with other conservation programs administered
by NRCS.
Language related to contract extensions for up to the 10-year limit
is deleted in Sec. 1465.24(b) because contract duration is addressed
in Sec. 1465.21(b)(2). New language is included to clarify that
participants are responsible for notifying NRCS if they anticipate loss
of control of the land. This addition is consistent with other related
conservation programs administered by NRCS.
Section 1465.24(c) is revised to clarify contract transfer issues
related to division of payments and transferee eligibility.
Subparagraphs 1465.24(c)(1) and 1465.24(c)(2) explain the requirements
for a transferee to receive payments, the obligations of the transferee
to comply with the terms of the contract and O&M agreement, and the
rights of the parties in distribution of payments. This revision brings
AMA into alignment with related conservation programs administered by
NRCS.
Section 1465.24(e) is added to clarify that participants to a
contract will be jointly and severally responsible for refunding
payments. The language is consistent with related NRCS-administered
conservation programs.
Section 1465.24(f) is added to ensure that in the event a
conservation practice fails through no fault of the participant, the
State Conservationist may issue payments to re-establish the
conservation practice, in accordance with established payment rates and
limitations.
Section 1465.25, Contract Violations and Terminations
Section 1465.25, ``Contract violations and terminations,''
addresses the procedures that NRCS takes where a violation has occurred
or a contract termination is necessary. Section 1465.25 is revised to
account for additions to the Section and to make the formatting
consistent throughout the AMA regulations. Section 1465.25(a) is
revised by removing the term ``reasonable'' as it is too subjective and
replaces it with ``60 days, unless otherwise determined by the State
Conservationist.'' This language is consistent with related NRCS-
administered conservation programs. Subparagraphs 1465.25(a)(1) and
1465.25(a)(2) are redesignated as Sec. 1465.25(a) and Sec.
1465.25(b), respectively.
The terms ``scheme or device'' are added to Sec. 1465.25(b) to be
clear that such actions may result in contract violation or
termination. This revision is consistent with Sec. 1465.35 and with
related conservation programs administered by NRCS. Subparagraphs
1465.25(b)(1), 1465.25(b)(2), 1465.25(b)(3), 1465.25(b)(4), and
1465.25(b)(5) are redesignated as 1465.25(c), 1465.25(c)(2),
1465.25(c)(2)(A), 1465.25(c)(2)(B), and 1465.25(c)(2)(C), respectively.
Section 1465.25(c) is revised as follows: Sec. 1465.25(c) is
expanded to clarify that participants who are in violation of AMA
contracts may be ineligible for future NRCS-administered conservation
program funding. The language is consistent with other NRCS
conservation programs. Subparagraph 1465.25(c)(2)(A) is revised to
clarify that hardship claims must be well documented and must result
from conditions that did not exist prior to application to the program.
This revision is consistent with related conservation programs
administered by NRCS.
Subpart C--General Administration
Section 1465.30, Appeals
Section 1465.30, ``Appeals,'' references the policies that govern
when a producer seeks an appeal to an adverse decision made by NRCS.
NRCS has not made any substantive changes to this section, other than
formatting. The following formatting changes are made to Sec. 1465.30:
Sec. 1465.30(b)(4)(i) through Sec. 1465.30(b)(4)(iii) are
redesignated as Sec. 1465.30(b)(4)(A), Sec. 1465.30(b)(4)(B), and
Sec. 1465.30(b)(4)(C), respectively.
Section 1465.31, Compliance With Regulatory Measures
No changes have been made in this section.
[[Page 70251]]
Section 1465.32, Access to Operating Unit
Section 1465.32, ``Access to operating unit,'' provides notice to
applicants, participants, and the public that NRCS has the right to
enter an operating unit or tract for the purpose of ascertaining the
accuracy of any representations related to contract performance.
Section 1465.32 is amended to notify potential AMA applicants that an
authorized NRCS representative may enter an agricultural operation for
the purposes of eligibility determinations. NRCS will continue to
provide the participant notice, prior to entering the property.
Section 1465.33, Equitable Relief
The caption of Sec. 1465.33 is changed from ``Performance based
upon advice or action or representatives of NRCS'' to ``Equitable
relief'' to be consistent with related NRCS-administered conservation
programs. Section 1465.33, ``Equitable relief,'' outlines the policy
when a participant relies upon erroneous advice provided by NRCS.
Specifically, Sec. 1465.33 is divided into two paragraphs. Paragraph
1465.33(b) is revised to add that any action the participant has taken
based on the advice of a certified TSP is the responsibility of that
certified TSP. The language clarifies program administration and is
consistent with other NRCS conservation programs.
Paragraph 1465.33(c) clarifies that AMA participants who acted in
good faith based on erroneous information provided by NRCS or its
representatives may be entitled to equitable relief. This revision
makes AMA consistent with other conservation programs administered by
NRCS.
Section 1465.34, Offsets and Assignments
Section 1465.34, ``Offsets and assignments,'' governs offsets and
withholdings, as well as assignment of payments. The term ``person'' is
changed to ``participant'' to reflect that this policy applies to
persons, joint operations, and legal entities who are party to an AMA
contract.
Section 1465.35, Misrepresentation and Scheme or Device
Section 1465.35, ``Misrepresentation and scheme or device,''
outlines the policies governing producers who have erroneously or
fraudulently represented themselves. Section 1465.35 is revised to
improve transparency related to the participant actions and
consequences of engaging in misrepresentation or scheme or device. This
revision aligns AMA with other NRCS conservation programs.
Paragraph 1465.35(b) expands on the actions that may be deemed
misrepresentation or scheme or device to include any action intended to
deprive a tenant or sharecropper of entitled payments. These revisions
are consistent with other NRCS conservation programs.
Paragraph 1465.35(c) is added to clarify that if paragraphs Sec.
1465.35(a) or Sec. 1465.35(b) apply to a participant, their interest
in all contracts will be terminated and they may be determined
ineligible for future funding from any NRCS conservation programs.
Section 1465.36, Environmental Services Credits for Conservation
Improvements
Section 1465.36 is added to provide clarity related to
environmental credits that may be produced on lands under AMA
contracts. It establishes that NRCS asserts no interest in credits
earned, but that the Agency retains the authority to ensure that the
requirements for AMA-funded improvements are met and maintained
consistent with the terms of the contract. Where activities may affect
the land covered by an AMA contract, participants are highly encouraged
to request a compatibility assessment from NRCS prior to entering into
any environmental credit agreements. This provision is consistent with
other conservation programs administered by NRCS.
List of Subjects in 7 CFR Part 1465
Conservation contract, Conservation plan, Conservation practices,
Soil and water conservation.
0
For the reasons stated in the preamble, the Natural Resources
Conservation Service revises Part 1465 of Title 7 of the Code of
Federal Regulations to read as follows:
PART 1465--AGRICULTURAL MANAGEMENT ASSISTANCE
Subpart A--General Provisions
Sec.
1465.1 Purposes and applicability.
1465.2 Administration.
1465.3 Definitions.
1465.4 National priorities.
1465.5 Program requirements.
1465.6 AMA plan of operations.
1465.7 Conservation practices.
Subpart B--Contracts
1465.20 Applications for participation and selecting applications
for contracting.
1465.21 Contract requirements.
1465.22 Conservation practice operation and maintenance.
1465.23 Payments.
1465.24 Contract modification, extension, and transfer of land.
1465.25 Contract violations and termination.
Subpart C--General Administration
1465.30 Appeals.
1465.31 Compliance with regulatory measures.
1465.32 Access to operating unit.
1465.33 Equitable relief.
1465.34 Offsets and assignments.
1465.35 Misrepresentation and scheme or device.
1465.36 Environmental Services Credits for Conservation
Improvements.
Authority: 7 U.S.C. 1524(b).
Subpart A--General Provisions
Sec. 1465.1 Purposes and applicability.
Through the Agricultural Management Assistance program (AMA), the
Natural Resources Conservation Service (NRCS) provides financial
assistance funds annually to producers in 16 statutorily designated
States to: Construct or improve water management structures or
irrigation structures; plant trees to form windbreaks or to improve
water quality; and mitigate risk through production diversification or
resource conservation practices, including soil erosion control,
integrated pest management, or the transition to organic farming. AMA
is applicable in Connecticut, Delaware, Hawaii, Maine, Maryland,
Massachusetts, Nevada, New Hampshire, New Jersey, New York,
Pennsylvania, Rhode Island, Utah, Vermont, West Virginia, and Wyoming.
Sec. 1465.2 Administration.
(a) Administration and implementation of the conservation
provisions of AMA for the Commodity Credit Corporation (CCC) is
assigned to the NRCS, using the funds, facilities, and authorities of
the CCC. Accordingly, where NRCS is mentioned in this Part, it also
refers to the CCC's funds, facilities, and authorities, where
applicable.
(b) NRCS will:
(1) Provide overall management and implementation leadership for
AMA;
(2) Establish policies, procedures, priorities, and guidance for
implementation;
(3) Establish payment limits;
(4) Determine eligible practices;
(5) Develop and approve AMA plans of operation and contracts with
selected participants;
(6) Provide technical leadership for implementation, quality
assurance, and evaluation of performance;
(7) Make funding decisions and determine allocations of AMA funds;
and
(8) Issue payments for conservation practices completed.
[[Page 70252]]
(c) No delegation in this part to lower organizational levels shall
preclude the Chief of NRCS from determining any issues arising under
this Part or from reversing or modifying any determination made under
this Part.
Sec. 1465.3 Definitions.
The following definitions apply to this part and all documents used
in accordance with this part, unless specified otherwise:
Agricultural land means cropland, grassland, rangeland, pasture,
and other agricultural land on which agricultural or forest-related
products or livestock are produced. Other agricultural lands may
include cropped woodland, marshes, incidental areas included in the
agricultural operation, and other types of agricultural land used for
production of livestock.
Agricultural operation means a parcel or parcels of land whether
contiguous or noncontiguous, which the producer is listed as the
operator or owner/operator in the Farm Service Agency (FSA) record
system, which is under the effective control of the producer at the
time the producer applies for a contract, and which is operated by the
producer with equipment, labor, management, and production, forestry,
or cultivation practices that are substantially separate from other
operations.
AMA plan of operations (APO) means the document that identifies the
location and timing of conservation practices that the participant
agrees to implement on eligible land in order to address the resource
concerns and program purposes. The APO is part of the AMA contract.
Applicant means a person, legal entity, or joint operation that has
an interest in an agricultural operation, as defined in 7 CFR 1400, who
has requested in writing to participate in AMA.
Beginning farmer or rancher means a person or legal entity who:
(1) Has not operated a farm or ranch, or who has operated a farm or
ranch for not more than 10 consecutive years. This requirement applies
to all members of an entity who will materially and substantially
participate in the operation of the farm or ranch.
(2) In the case of a contract with an individual, individually or
with the immediate family, material and substantial participation
requires that the individual provide substantial day-to-day labor and
management of the farm or ranch, consistent with the practices in the
county or State where the farm or ranch is located.
(3) In the case of a contract with an entity or joint operation,
all members must materially and substantially participate in the
operation of the farm or ranch. Material and substantial participation
requires that each of the members provide some amount of the
management, or labor and management necessary for day-to-day
activities, such that if each of the members did not provide these
inputs, operation of the farm or ranch would be seriously impaired.
Chief means the Chief of NRCS, United States Department of
Agriculture (USDA), or designee.
Conservation district means any district or unit of State, Tribal,
or local government formed under State, Tribal, or territorial law for
the express purpose of developing and carrying out a local soil and
water conservation program. Such district or unit of government may be
referred to as a ``conservation district,'' ``soil conservation
district,'' ``soil and water conservation district,'' ``resource
conservation district,'' ``natural resource district,'' ``land
conservation committee,'' or similar name.
Conservation practice means one or more conservation improvements
and activities, including structural practices, land management
practices, vegetative practices, forest management, and other
improvements that achieve program purposes.
Contract means a legal document that specifies the rights and
obligations of any participant accepted into the program. An AMA
contract is a binding agreement for the transfer of assistance from
USDA to the participant to share in the costs of applying conservation
practices.
Designated conservationist means an NRCS employee whom the State
Conservationist has designated as responsible for AMA administration in
a specific area.
Historically underserved producer means an eligible person, joint
operation, or legal entity who is a beginning farmer or rancher,
socially disadvantaged farmer or rancher, or limited resource farmer or
rancher.
Indian land is an inclusive term describing all lands held in trust
by the United States for individual Indians or Tribes, or all lands,
titles to which are held by individual Indians or Tribes, subject to
Federal restrictions against alienation or encumbrance, or all lands
which are subject to the rights of use, occupancy and/or benefit of
certain Tribes. For purposes of this Part, the term Indian land also
includes land for which the title is held in fee status by Indian
tribes, and the U.S. Government-owned land under the Bureau of Indian
Affairs jurisdiction.
Indian Tribe means any Indian tribe, band, nation, or other
organized group or community, including any Alaska Native village or
regional or village corporation as defined in or established pursuant
to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.)
that is eligible for the special programs and services provided by the
United States to Indians because of their status as Indians.
Joint operation means, as defined in 7 CFR part 1400, a general
partnership, joint venture, or other similar business arrangement in
which the members are jointly and severally liable for the obligations
of the organization.
Legal entity means, as defined in 7 CFR part 1400, an entity
created under Federal or State law that:
(1) Owns land or an agricultural commodity, product, or livestock;
or
(2) Produces an agricultural commodity, product, or livestock.
Lifespan means the period of time in which a conservation practice
should be operated and maintained and used for the intended purpose.
Limited resource farmer or rancher means:
(1) A person with direct or indirect gross farm sales of not more
than $155,200 in each of the previous two years (adjusted for inflation
using the Prices Paid by Farmer Index as compiled by the National
Agricultural Statistics Service), and
(2) Has a total household income at or below the national poverty
level for a family of four, or less than 50 percent of county median
household income in each of the previous two years (to be determined
annually using Commerce Department data).
Liquidated damages means a sum of money stipulated in the AMA
contract that the participant agrees to pay NRCS if the participant
fails to adequately complete the terms of the contract. The sum
represents an estimate of the expenses incurred to service the contract
and reflects the difficulties of proof of loss and the inconvenience or
non-feasibility of otherwise obtaining an adequate remedy.
Livestock means all animals produced on farms and ranches, as
determined by the Chief.
Natural Resources Conservation Service (NRCS) is an agency of the
USDA, which has responsibility for administering AMA using the funds,
facilities, and authorities of the CCC.
Nonindustrial private forest land means rural land that has
existing tree cover or is suitable for growing trees; and is owned by
any nonindustrial private individual, group, association, corporation,
Indian Tribe, or other
[[Page 70253]]
private legal entity that has definitive decision-making authority over
the land.
Operation and maintenance means work performed by the participant
to keep the applied conservation practice functioning for the intended
purpose during the conservation practice lifespan. Operation includes
the administration, management, and performance of non-maintenance
actions needed to keep the completed practice safe and functioning as
intended. Maintenance includes work to prevent deterioration of the
practice, repairing damage, or replacement of the practice to its
original condition if one or more components fail.
Operation and maintenance (O&M) agreement means the document that,
in conjunction with the APO, specifies the operation and maintenance
responsibilities of the participants for conservation practices
installed with AMA assistance.
Participant means a person, legal entity, or joint operation who is
receiving payment or is responsible for implementing the terms and
conditions of an AMA contract.
Payment means the financial assistance provided to the participant
based on the estimated costs incurred in performing or implementing
conservation practices, including costs for: Planning, design,
materials, equipment, installation, labor, maintenance, management, or
training, as well as the estimated income foregone by the producer for
the designated conservation practices.
Person means, as defined in 7 CFR part 1400, an individual, natural
person and does not include a legal entity.
Producer means a person, legal entity, or joint operation who has
an interest in the agricultural operation, according to 7 CFR part
1400, or who is engaged in agricultural production or forestry
management.
Resource concern means a specific natural resource problem that
represents a significant concern in a State or region and is likely to
be addressed successfully through the implementation of the
conservation practices by producers.
Secretary means the Secretary of the USDA.
Socially disadvantaged farmer or rancher means a farmer or rancher
who has been subjected to racial or ethnic prejudices because of their
identity as a member of a group without regard to their individual
qualities.
State Conservationist means the NRCS employee authorized to direct
and supervise NRCS activities in a State, the Caribbean Area, or the
Pacific Island Area.
Structural practice means a conservation practice, including a
vegetative practice, that involves establishing, constructing, or
installing a site-specific measure to conserve and protect a resource
from degradation, or improve soil, water, air, or related natural
resources in the most cost-effective manner. Examples include, but are
not limited to, animal waste management facilities, terraces, grassed
waterways, tailwater pits, livestock water developments, contour grass
strips, filterstrips, critical area plantings, tree plantings,
establishment or improvement of wildlife habitat, and capping of
abandoned wells.
Technical assistance means technical expertise, information, and
tools necessary for the conservation of natural resources on land
active in agricultural, forestry, or related uses. The term includes
the following: (1) Technical services provided directly to farmers,
ranchers, and other eligible entities, such as conservation planning,
technical consultation, and assistance with design and implementation
of conservation practices; and (2) technical infrastructure, including
activities, processes, tools, and agency functions needed to support
delivery of technical services, such as technical standards, resource
inventories, training, data, technology, monitoring, and effects
analyses.
Technical Service Provider (TSP) means an individual, private-
sector entity, or public agency certified by NRCS to provide technical
services to program participants or in lieu of or on behalf of NRCS.
Sec. 1465.4 National priorities.
(a) The Chief, with advice from State Conservationists, will
identify national priorities to achieve the conservation objectives of
AMA.
(b) National priorities will be used to guide annual funding
allocations to States.
(c) State Conservationists will use national priorities in
conjunction with State and local priorities to prioritize and select
AMA applications for funding.
(d) NRCS will undertake periodic reviews of the national priorities
and the effects of program delivery at the State and local level to
adapt the program to address emerging resource issues.
Sec. 1465.5 Program requirements.
(a) Participation in AMA is voluntary. The participant, in
cooperation with the local conservation district, applies for practice
installation for the agricultural operation. The NRCS provides payments
through contracts to apply needed conservation practices within a time
schedule specified in the APO.
(b) The Chief determines the funds available for financial
assistance according to the purpose and projected cost for which the
financial assistance is provided in a fiscal year. The Chief allocates
the funds available to carry out AMA in consideration of national
priorities established under Sec. 1465.4.
(c) To be eligible to participate in AMA, an applicant must:
(1) Own or operate an agricultural operation within an applicable
State, as listed in Sec. 1465.1;
(2) Provide NRCS with written evidence of ownership or legal
control for the life of the proposed contract, including the O&M
agreement. An exception may be made by the Chief:
(i) In the case of land allotted by the Bureau of Indian Affairs
(BIA), Tribal land, or other instances in which the Chief determines
that there is sufficient assurance of control; or
(ii) If the applicant is a tenant of the land involved in
agricultural production, the applicant shall provide NRCS with the
written concurrence of the landowner in order to apply a structural
practice(s);
(3) Submit an application form NRCS-CPA-1200, which is located
electronically at https://www.nrcs.usda.gov/programs/AMA/;
(4) Agree to provide all information to NRCS determined to be
necessary to assess the merits of a proposed project and to monitor
contract compliance;
(5) Provide a list of all members of the legal entity and embedded
entities along with members' tax identification numbers and percentage
interest in the entity. Where applicable, American Indians, Alaska
Natives, and Pacific Islanders may use another unique identification
number for each individual eligible for payment;
(6) Supply other information, as required by NRCS, to determine
payment eligibility as established by 7 CFR part 1400, Adjusted Gross
Income (AGI);
(7) With regard to any participant that utilizes a unique
identification number as an alternative to a tax identification number
will utilize only that identifier for any and all other AMA contracts
to which the participant is a party. Violators will be considered to
have provided fraudulent representation and be subject to full
penalties of Sec. 1465.25;
(8) States, political subdivisions, and entities thereof will not
be persons eligible for payment. Any cooperative
[[Page 70254]]
association of producers that markets commodities for producers shall
not be considered to be a person eligible for payment;
(9) Be in compliance with the terms of all other USDA-administered
conservation prog