1986-1990 Conservation Reserve Program; 1991-1995 Conservation Reserve Program

DEPARTMENT OF AGRICULTURE

Consolidated Farm Service Agency

Commodity Credit Corporation

7 CFR Parts 704 and 1410

RIN 0560-AD95

1986-1990 Conservation Reserve Program; 1991-1995 Conservation

Reserve Program

AGENCY: Consolidated Farm Service Agency, Commodity Credit Corporation

USDA.

ACTION: Interim rule with request for comments.

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SUMMARY: This interim rule amends the regulations at 7 CFR Part 704 and

7 CFR Part 1410 to allow holders of Conservation Reserve Program (CRP)

contracts the opportunity to request and receive early release from

contracts or to reduce the amount of acreage subject to the contracts.

The purpose of the early release of acreage by current contract holders

is to allow enrollment of new acreage in CRP which will meet higher

environmental and conservation criteria. This action is required to

implement provisions announced by the Secretary of Agriculture on

December 14, 1994.

DATES: Effective Date: Interim rule effective May 8, 1995. Comments:

Comments must be received on or before June 7, 1995 in order to be

assured of consideration.

ADDRESSES: Comments should be mailed to George T. Denley, Consolidated

Farm Service Agency, P.O. Box 2415, Room 4714-S, Washington, DC 20013-

2415; telephone 202-720- [[Page 22457]] 6304. Comments received may be

inspected between 9 a.m. and 4 p.m., Monday through Friday, except

holidays, in room 4768, South Agriculture Building, United States

Department of Agriculture, 14th Street and Independence Avenue, SW.,

Washington, DC.

FOR FURTHER INFORMATION CONTACT: George T. Denley, Conservation and

Environmental Protection Division, CFSA, P.O. Box 2415, Room 4768-S,

Washington, DC 20013-2415.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This interim rule has been determined to be significant and was

reviewed by OMB under Executive Order 12866.

Regulatory Flexibility Act

It has been determined that the Regulatory Flexibility Act is not

applicable to this interim rule because neither CFSA nor the Commodity

Credit Corporation (CCC) is required by 5 U.S.C. 553 or any other

provision of law to publish a notice of proposed rulemaking with

respect to the subject matter of this rule.

Environmental Evaluation

It has been determined by an environmental evaluation that this

action will not adversely affect the environmental, historical, social,

or economic resources of the Nation. Therefore, it has been determined

that these actions will not require an Environmental Assessment or an

Environmental Impact Statement.

Executive Order 12372

This program is not subject to the provisions of Executive Order

12372, which require intergovernmental consultation with State and

local officials. See notice related to 7 CFR part 3015, subpart V,

published at 48 FR 29115 (June 24, 1983).

Federal Domestic Assistance Program

The title and number of the Federal Domestic Assistance Program, as

found in the Catalog of Federal Domestic Assistance, to which this rule

applies, are the Conservation Reserve Program--10.069.

Paperwork Reduction Act

This interim rule amends the existing information collection as

approved by the Office of Management and Budget (OMB) pursuant to the

Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.) under OMB

control number 0560-0125 and has been submitted to OMB for clearance.

Executive Order 12778

This interim rule has been reviewed in accordance with Executive

Order 12778. The provisions of this rule are not retroactive and

preempt State and local laws to the extent such laws are inconsistent

with the provisions of this rule. Before any action may be brought in a

Federal court of competent jurisdiction, the administrative appeal

rights afforded program participants at 7 CFR part 780 must be

exhausted.

Request for Comments

Comments are requested with respect to this interim rule and such

comments shall be considered in developing the final rule.

Background

The current regulations in 7 CFR Part 704 and 7 CFR Part 1410

implemented the CRP, which was authorized by Title XII of the Food

Security Act of 1985, as amended.

The intent of CRP is to permit the CCC to enter into contracts with

owners and operators of highly erodible and certain other cropland to

assist such owners and operators in conserving and improving the

Nation's soil and water resources and wildlife habitat. By entering

into a contract, the owner or operator agrees to implement a

conservation plan approved by the local Conservation District for

converting highly erodible cropland normally devoted to the production

of an agricultural commodity to a conserving use and to a reduction in

certain crop acreage bases, allotments, or quotas. CCC provides (1)

technical assistance by way of a conservation plan, (2) financial

assistance for the costs of establishing the conservation practices

required by the conservation plan, and (3) annual land rental payments

to compensate the owner or operator for taking the cropland out of

production.

Program Changes

On December 14, 1994, the Secretary of Agriculture announced that

during calendar year 1995 the Department will take several actions

regarding the CRP, including targeting the CRP to more environmentally

sensitive acres. These actions will be implemented in two separate

rules. This interim rule provides for considering requests from CRP

participants to be released from CRP contracts or to modify current

contracts to reduce the amount of acreage subject to the contracts. A

subsequent proposed rule will address enrollment of acreage under new

contracts which meets higher environmental and conservation criteria to

``replace'' the acreage that was released and to bring the amount of

acres in the CRP to the statutory maximum of 38 million acres.

This interim rule provides CRP participants the option for early

termination with an effective date not to exceed September 30, 1995, of

certain acreage under CRP contract in whole or in part without penalty

or obligation to refund previous payments issued under the contract,

provided the acreage released, if farmed, is farmed under a basic

conservation system as determined by the Natural Resources Conservation

Service (NRCS) until the date the contract would have expired or, if

hayed or grazed, is hayed or grazed in accordance with an approved

haying or grazing plan as determined by NRCS.

Crop acreage bases, allotments, and quotas will be reinstated

effective for the 1996 crop year.

Prior to this rule, participants requesting to release CRP acreage

before contract termination were required to refund with interest

annual rental and, in many cases, cost-share payments previously paid

under the contract and to pay liquidated damages unless CCC determined

that the release was in the public interest. If farmed, released acres

were only required to be farmed according to an Alternative

Conservation System to be eligible for certain USDA benefits. Further,

the purpose of this early release option is to replace those acres

released under this authority with acreage under new contracts. Acreage

released either before or after this limited early release period

cannot be replaced with other acreage. Producers who voluntarily

terminated their contracts did so with the understanding that payments

would have to be refunded and damages would have to be paid. This

requirement was a term of all CRP contracts and participants were aware

of this requirement before the contracts were entered into. To

retroactively relieve these participants from this obligation would

treat unfairly those participants who did not terminate their contracts

because of the refund and penalty requirement. Accordingly, the early

contract termination authority under this rule is not retroactive.

CRP contract acreage which is not eligible for early contract

termination under this rule includes acreage within an average of 100

feet of a stream or other waterbody, acreage on which a CRP easement is

filed, and acreage on which there exist the following practices

installed or developed as a result of participation in the CRP: grass

waterways, filter strips, shallow water areas for wildlife, bottomland

timber established on wetlands, field [[Page 22458]] windbreaks, and

shelterbelts. Exclusion of these areas will contribute to continued

prevention of soil erosion and protection of water quality and certain

wildlife habitat. Acreage enrolled in the CRP, however, may be devoted

to one or more of many different conservation or wildlife practices

which are designed to provide the highest benefits for the specific

land in question. The broader expanse of environmental issues reflected

in the CRP, ranging from reducing soil erosion to fostering diverse

wildlife habitats to improving water quality, will be addressed in the

subsequent proposed rule.

The acreage released under this voluntary opportunity to current

contract holders will be replaced with acreage targeted to obtain

enhanced environmental benefits such as wildlife habitat, water

quality, or soil erosion.

CRP participants are not obligated to request early release from

their contracts. All signatories to the CRP contract must agree to

release of the acreage before it can be released from CRP.

Because CRP participants are making planting plans and wish to

carry out these plans as early as possible, it is necessary that this

regulation be effective upon publication. The purpose of the early

release is to allow enrollment of replacement acreage in the CRP which

will meet higher environmental and conservation criteria. In order to

optimize the acreage released, this action must be effective

immediately to provide CRP participants the opportunity to finalize

their farming plans. Accordingly, good cause is shown for making this

rule effective upon publication in the Federal Register.

List of Subjects

7 CFR Part 704

Administrative practices and procedures, Conservation System,

Contracts, Technical assistance, Natural resources, Environmental

indicators, and Base protection.

7 CFR Part 1410

Administrative practices and procedures, Conservation System,

Contracts, Technical assistance, Natural resources, Environmental

indicators, and Base protection.

Accordingly, 7 CFR Parts 704 and 1410 are amended as follows:

PART 704--1986-1990 CONSERVATION RESERVE PROGRAM

1. The authority citation for 7 CFR Part 704 continues to read as

follows:

Authority: 15 U.S.C. 714b and 714c; 16 U.S.C 3801-3847.

2. Section 704.20 is amended by adding paragraph (a)(4) to read as

follows:

Sec. 704.20 Contract modifications.

(a) * * *

(4) Terminate certain contracts prior to the expiration date with

an effective date no later than September 30, 1995, provided the

acreage released, if farmed, is farmed under a basic conservation

system as determined by the Natural Resources Conservation Service

(NRCS) until the date the contracts would have expired or, if hayed or

grazed, is hayed or grazed in accordance with an approved haying or

grazing plan as determined by the NRCS. Annual payments will be

prorated to the effective date of termination and will be made as

otherwise provided in this part. Contract acreage located within an

average of 100 feet of a stream or other waterbody, on which a CRP

easement is filed, and contract acreage on which there exist the

following practices installed or developed as a result of participation

in the CRP are not eligible for termination prior to the expiration

date of the contract as provided in this paragraph (a)(4): grass

waterways, filter strips, shallow water areas for wildlife, bottomland

timber established on wetlands, field windbreaks, and shelterbelts.

* * * * *

PART 1410--CONSERVATION RESERVE PROGRAM

1. The authority citation for 7 CFR Part 1410 continues to read as

follows:

Authority: 15 U.S.C. 714b and 714c; 16 U.S.C. 3831-3847.

2. Section 1410.116 is amended by adding paragraph (a)(5) to read a

follows:

Sec. 1410.116 Contract modifications.

(a) * * *

(5) Terminate certain contracts prior to the expiration date with

an effective date no later than September 30, 1995, provided the

acreage released, if farmed, is farmed under a basic conservation

system as determined by the Natural Resources Conservation Service

(NRCS) until the date the contracts would have expired or, if hayed or

grazed, is hayed or grazed in accordance with an approved haying or

grazing plan as determined by the NRCS. Payments will be prorated to

the effective date of termination and will be made as otherwise

provided in this part. Contract acreage located within an average of

100 feet of a stream or other waterbody, acreage on which a CRP

easement is filed, and contract acreage on which there exist the

following practices installed or developed as a result of participation

in the CRP are not eligible for termination prior to the expiration

date of the contract as provided in this paragraph (a)(5): grass

waterways, filter strips, shallow water areas for wildlife, bottomland

timber established on wetlands, field windbreaks, and shelterbelts.

* * * * *

Signed at Washington, DC, on May 3, 1995.

Grant Buntrock,

Acting Administrator, Consolidated Farm Service Agency and Acting

Executive Vice President Commodity Credit Corporation.

[FR Doc. 95-11260 Filed 5-5-95; 8:45 am]

BILLING CODE 3410-05-P