1986-1990 Conservation Reserve Program; 1991-2002 Conservation Reserve Program

DEPARTMENT OF AGRICULTURE

Farm Service Agency

Commodity Credit Corporation

7 CFR Parts 704 and 1410

RIN 0560-AE84

1986-1990 Conservation Reserve Program; 1991-2002 Conservation

Reserve Program

AGENCY: Farm Service Agency and Commodity Credit Corporation, USDA.

ACTION: Interim rule.

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SUMMARY: This interim rule modifies provisions for the Conservation

Reserve Program (CRP) which were addressed in rules published on May 8,

1995 (60 FR 22456) and March 15, 1996 (61 FR 10671) concerning the

opportunity for early release of certain acreage from the CRP. The

modifications reflect new provisions enacted in the Federal Agriculture

Improvement and Reform Act of 1996 (1996 Act). This rule also sets out

other modifications to reflect new provisions in the 1996 Act and to

make technical corrections and other minor modifications to the rule.

These additional modifications include: revisions of the ``contour

grass strip'' and ``filterstrip'' definitions to remove size

limitations; a correction of a landlord-tenant reference in the rule; a

reassignment of provisions dealing with the preservation of cropland

bases; and technical changes to reflect a Department of Agriculture

(USDA) reorganization. Further, this rule also updates the base period

for the cropping history needed to enter cropland into the CRP.

DATES: This rule is effective August 27, 1996. Comments concerning this

rule should be received by October 28, 1996, to be assured

consideration.

ADDRESSES: Comments and requests for additional information should be

directed to Cheryl Zavodny, Conservation and Environmental Protection

Division, FSA, P.O. Box 2415, STOP Box 0513, Room 4768-S, Washington,

DC 20013-2415, telephone 202-720-7333.

FOR FURTHER INFORMATION CONTACT: Cheryl Zavodny, (202) 720-7333.

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 FSA 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

rule does not have a significant impact on 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, is the Conservation Program-10.069.

Paperwork Reduction Act

The previous information collection under OMB control number 0560-

0125 has been reinstated with changes and has received emergency

clearance. A regular information collection submission will be

submitted pursuant to the Paperwork Reduction Act of 1995.

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 parts 11, 624, and 780

must be exhausted.

Background

Current regulations in 7 CFR part 704 and 7 CFR part 1410 implement

the CRP, which was first authorized by Title XII of the Food Security

Act of 1985 (1985 Act). Acreage enrolled in signups held from 1986

through 1990 are controlled by regulations in 7 CFR part 704 whereas

acreage enrolled in subsequent signups is controlled under part 1410.

In the CRP, the CCC pays owners and operators of highly erodible and

other environmentally sensitive cropland to convert the land to a

[[Page 43944]]

conserving use cover for a period of at least 10 years. Because of a

desire to redirect CRP to more sensitive land, interim rules published

May 8, 1995, and March 15, 1996, allowed for an early release of some

acreage from some contracts. Subsequently, in the 1996 Act, enacted on

April 4, 1996, CRP enrollments were re-authorized through 2002, and

with respect to existing contracts it was provided that certain CRP

participants could unilaterally obtain an early release of contracts

entered into before January 1, 1995, if the contract had been in effect

for at least 5 years. Under the statute, there is a 60 day waiting

period before the application to terminate is effective. That

termination will not relieve the participant of liability for a pre-

existing contract violation. The 1996 Act provides that land which is

not eligible for the early termination includes filterstrips, grass

waterways, riparian areas, field windbreaks, shelterbelts, shallow

water areas, acreage with an erodibility index of more than 15, and

other lands of high environmental value (including wetlands), as may be

determined by the Secretary. This rule implements those provisions and

modifies the May 1995, and March 1996, interim rules accordingly. In

addition, Title III of the 1996 Act (which covers a number of

conservation issues for the CRP and other programs) allows for the

Secretary to permit technical assistance in connection with the

creation of new enrollments to be obtained from private sources. That

provision has also been incorporated into the regulations. Other

changes to reflect the new legislation include modifications in the

1996 rule which change the CRP statute to reduce from 3 to 1 the number

of years which an owner or operator of cropland must have that status

prior to offering land for enrollment in the CRP.

In addition, this rule makes certain technical changes to the rule.

These include: (1) Affording more flexibility in enrollments by

removing size limits in the definitions of filterstrip and contour

grass strip; (2) correcting the reference to the general regulations

governing landlord-tenant matters and assignments and moving the

reference concerning the preservation of cropland bases from its former

position in part 719, and; (3) changing references from SCS to Natural

Resources Conservation Service.

Further, the rule is amended to change the 1986-1990 base period

previously used to determine whether land qualifies as cropland for CRP

purposes. The new base period will be a 1992-1996 base period. This is

to insure that the limitations of the program to cropland are applied

as fully as possible consistent with the goals of the program.

The Department seeks public comment regarding the acreage

determined ineligible for early release. The Secretary determined, in

addition to the acreage excluded by statute, acreage enrolled under

wetland criteria during signup periods 8 and 9 and acreage on which a

CRP useful life easement is filed will not be eligible. A cost/benefit

analysis was conducted to evaluate two options concerning the types of

enrolled acreage that would not be eligible for early release under

this rule. The first (selected) option included the acreage and cover

types listed in sections 704.20 and 1410.116. The second option added

wetland not enrolled in the eighth and ninth signups, buffer acreage

for all wetland, wellhead protection acres, and acres affected by scour

erosion to the list. About 1.7 million fewer acres would be eligible

for early release under the second option and almost 110,000 fewer

acres would have been released early. The increased plantings from the

higher amount of early release acreage under the first option would

have minimal impacts on farm prices and income. CRP payments would be

$6 million lower under the second option, if none of the withdrawn

acres are replaced with new enrollments until after they would have

normally expired. The loss of environmental benefits under the first

option would be only slightly larger than under the second option. For

additional information or to obtain a copy of the cost/benefit

analysis, contact Tom Browning, USDA/FSA/EPAS, P.O. Box 2415 STOP 0519,

Washington, D.C. 20013-2415.

This interim rule had a statutory requirement to be issued within

90 days following enactment of the Federal Agriculture Improvement and

Reform Act of 1996 on April 4, 1996, as required by Section 1243(c) of

the 1985 Act, as amended by the 1996 Act. Because the modifications in

this rule are required by law, technical in nature, do not limit any

entitlement, and/or involve the provisions of immediate benefits

provided for in the 1996 Act, it has been determined that the delay of

this rule pending comment would be contrary to both the law and the

public interest.

List of Subjects

7 CFR Part 704

Administrative practices and procedures, Base protection,

Conservation plan, Contracts, Environmental indicators, Natural

resources, and Technical assistance.

7 CFR Part 1410

Administrative practices and procedures, Base protection,

Conservation plan, Contracts, Environmental indicators, Natural

resources, and Technical assistance.

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.

Sec. 704.1 [Amended]

2. Section 704.1 is amended by adding ``, as amended'' after

``(Pub. L. 99-198).''

Sec. 704.2 [Amended]

3. Section 704.2(a)(23) is amended by adding the words ``or as

otherwise authorized by the Secretary'' after the word ``Department.''

Sec. 704.3 [Amended]

4. Section 704.3 is amended in paragraph (a) by removing the words

``State ASC Committees (STC) and County ASC Committees (COC)'' and

adding in their place the words ``State FSA committees (STC) and county

FSA committees (COC)''; in paragraph (b) by removing the words ``Soil

Conservation Service (SCS)'' and adding in their place the words

``Natural Resources Conservation Service (NRCS)''; in paragraph (d) by

removing the words ``Extension Service (ES)'' and adding in their place

``Cooperative State Research, Education and Extension Service''.

Sec. 704.7 [Amended]

5. Section 704.7 is amended in paragraph (a)(3)(ii) by removing

``SCS'' and adding in its place ``NRCS''; in paragraph (d)(4) by

removing the word ``exceeded'' and adding the word ``adjusted'' in its

place and by removing ``SCS'' and adding ``NRCS'' in its place; in

paragraphs (e)(1) and (e)(8) by removing ``SCS'' and adding ``NRCS'' in

its place.

Sec. 704.9 [Amended]

6. Section 704.9 is amended in paragraph (a) by removing the words

``Soil Conservation Service (SCS)'' and adding the words ``NRCS or

another source as approved by the NRCS, in consultation with FSA'' in

its place; in paragraphs (b) and (d) by removing ``SCS'' and adding in

its place ``NRCS.''

[[Page 43945]]

Sec. 704.18 [Amended]

7. Section 704.18 is amended by removing the words ``part 709,

Assignment of Payment'' and adding in their place the words ``part

1404, Assignment of Payments.''

8. Section 704.20 is amended in paragraph (b) by removing ``SCS''

and adding in its place ``NRCS'', and paragraph (a)(4) is revised to

read as follows:

Sec. 704.20 Contract modifications.

(a) * * *

(4) Terminate contracts enrolled in CRP before January 1, 1995,

which have been in effect for at least 5 years as determined by CCC.

Contract acreage located within an average of 100 feet of a perennial

stream or other permanent waterbody, on which a CRP easement is filed,

that was enrolled under the wetland eligibility criteria established in

signup periods eight and nine, and contract acreage on which there

exist the following practices installed or developed as a result of

participation in the CRP or are otherwise required by the NRCS local

Field Office Technical Guide are not eligible for termination prior to

the expiration date of the contract as provided in this paragraph:

grass waterways; filter strips; shallow water areas for wildlife;

bottomland timber established on wetlands; field windbreaks; and,

shelterbelts. In addition, for any land for which an early termination

is sought, the land must have an EI of 15 or less. With respect to any

terminations made under this paragraph (a)(4):

(i) The termination shall become effective 60 days from the date

the participant(s) submits notification to CCC of the participant's

desire to terminate the contract;

(ii) Acreage terminated under this provision is eligible to be re-

offered for CRP during future signup periods providing the acreage

otherwise meets the eligibility criteria established for that signup;

and,

(iii) Participants shall be required to meet conservation

compliance requirements of 7 CFR part 12 to the extent applicable to

other land.

* * * * *

Sec. 704.24 [Amended]

9. Section 704.24 is amended by removing all references therein to

``SCS'' and adding in their place ``NRCS.''

Sec. 704.26 [Amended]

10. Section 704.26 is amended by removing ``713.109 and 713.150''

and adding in its place ``1413.150.''

Sec. 704.27 [Amended]

11. Section 704.27 is amended in paragraph (b) by removing ``SCS''

and adding in its place ``NRCS.''

12. Section 704.30 is amended by adding paragraph (c) as follows:

Sec. 704.30 Miscellaneous.

* * * * *

(c) Cropland acreage established and maintained in vegetative cover

under CRP, including approved volunteer cover, shall retain its

cropland classification for the period of time that the cover is

maintained or as otherwise established by the Deputy Administrator.

PART 1410--1991-1995 CONSERVATION RESERVE PROGRAM

13. 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.

14. The title of Part 1410 is amended by removing ``1991-95'' and

adding ``1991-2002'' in its place.

Sec. 1410.1 [Amended]

15. Section 1410.1 is amended by adding, ``as amended'' after

``Food Security Act of 1985.''

Sec. 1410.2 [Amended]

16. Section 1410.2 is amended by: removing the words ``Soil

Conservation Service (SCS)'' in paragraph (f)(2) and adding ``NRCS'' in

their place; in paragraph (h) removing the words ``Extension Service

(ES)'' and adding in their place the words ``Cooperative State

Research, Education, and Extension Service (CSREES)''; and

redesignating paragraphs (g) and (h) as (h) and (i) respectively.

17. Section 1410.2 is further amended by revising paragraphs (a)

and (f)(1) and adding a new paragraph (g), to read as follows:

Sec. 1410.2 Administration.

(a) The regulations in this part will be administered under the

general supervision and direction of the Executive Vice President,

Commodity Credit Corporation (CCC), and the Administrator, Farm Service

Agency (FSA), through the Deputy Administrator for Farm Programs, FSA.

In the field, the regulations in this part will be administered by the

State and county FSA committees (``State committees'' and ``county

committees,'' respectively).

* * * * *

(f)(1) The erosion index (EI), suitability of land for permanent

vegetative or water cover, factors for determining the likelihood of

improved water quality, and adequacy of the planned practice to achieve

desired objectives, shall be determined by the Natural Resource

Conservation Service (NRCS) in accordance with the local field office

technical guide or other guidelines deemed appropriate by the NRCS,

except that no such determination by the NRCS shall compel CCC to

execute a contract which CCC does not believe will serve the purposes

of the program established by this part.

* * * * *

(g) State FSA committees, with NRCS, may develop a State ranking

process to evaluate acreage based on State specific goals and

objectives. Such STC's may choose between developing a State ranking

process or utilizing a national ranking process. States' ranking

processes shall be developed based on recommendations from State

Technical committees, follow national guidelines, and be approved by

the Deputy Administrator.''

* * * * *

Sec. 1410.3 [Amended]

18. Section 1410.3(b) is amended by: removing the definition of

``SCS''; placing the definition of ``FSA'' in its correct alphabetical

position; and in the definition of ``Highly erodible land'' removing

``SCS'' and adding ``NRCS'' in its place.

19. Section 1410.3(b) is further amended by adding, at its

appropriate alphabetical location, a new definition for ``NRCS'' and by

revising the definitions of ``Contour grass strip'', ``Filterstrip'',

and ``FSA'', to read as follows:

* * * * *

``Contour grass strip means a vegetation area that follows the

contour of the land, whose width is determined by the NRCS local office

Field Office Technical Guide and whose designation is included as a

contour grass strip by a conservation plan required under this part;''

* * * * *

``Filterstrip means a strip or area of vegetation of a width

determined appropriate for the purpose by the NRCS local office Field

Office Technical Guide;''

``FSA means the Farm Service Agency of the United States Department

of Agriculture;''

* * * * *

``NRCS means the Natural Resources Conservation Service of the

United States Department of Agriculture;''

* * * * *

[[Page 43946]]

20. Section 1410.13 is amended by adding paragraph (d) to read as

follows:

Sec. 1410.13 Miscellaneous.

* * * * *

(d) Cropland acreage established and maintained in vegetative cover

under CRP, including approved volunteer cover, shall retain its

cropland classification for the period of time that the cover is

maintained or as otherwise established by the Deputy Administrator.

Sec. 1410.102 [Amended]

21. Section 1410.102 is amended in paragraphs (a) and (b) by

removing ``3 years'' and adding in its place ``1 year.''

Sec. 1410.103 [Amended]

22. Section 1410.103 is amended:

In paragraph (a)(1) by removing ``1986 through 1990'' and adding in

its place ``1992 through 1996'';

In paragraph (b)(4) by removing the word ``exceeded'' and adding in

its place the word ``adjusted'' and by removing ``SCS'' and adding in

its place ``NRCS'';

In paragraph (c) by removing ``SCS'' wherever it appears and adding

in its place ``NRCS''; and

In paragraph (f)(2) by removing ``part 703'' and adding in its

place ``part 620''.

Sec. 1410.111 [Amended]

23. Section 1410.111 is amended:

In paragraph (a) by adding after the words ``conservation

district,'' the words ``or another source as approved by the NRCS,''

and

In paragraph (a) removing ``SCS'' and adding in its place ``NRCS''.

24. Section 1410.116 is amended by revising paragraph (a)(5) to

read as follows:

Sec. 1410.116 Contract modifications.

(a) * * *

(5) Terminate contracts enrolled in CRP before January 1, 1995,

which have been in effect for at least 5 years. Contract acreage

located within an average of 100 feet of a perennial stream or other

permanent waterbody, on which a CRP easement is filed, that was

enrolled under the wetland eligibility criteria established in signup

periods 8 and 9, and contract acreage on which there exist the

following practices, installed or developed as a result of

participation in the CRP or as otherwise required by the NRCS local

Field Office Technical Guide, are not eligible for termination prior to

the expiration date of the contract as provided in this paragraph:

grass waterways; filter strips; shallow water areas for wildlife;

bottomland timber established on wetlands; field windbreaks; and,

shelterbelts. In addition, for any land for which an early termination

is sought, the land must have an EI of 15 or less. With respect to

terminations under this paragraph:

(i) The termination shall become effective 60 days from the date

the participant(s) submit notification to CCC of the participant's

desire to terminate the contract;

(ii) Acreage terminated under this provision is eligible to be re-

offered for CRP during future signup periods providing the acreage

otherwise meets the eligibility criteria established for that signup;

and,

(iii) Participants shall be required to meet conservation

compliance requirements of 7 CFR part 12 to the extent applicable to

other land.

* * * * *

Signed at Washington, DC, on August 19, 1996.

Bruce R. Weber,

Acting Administrator, Farm Service Agency and Executive Vice President,

Commodity Credit Corporation.

[FR Doc. 96-21624 Filed 8-26-96; 8:45 am]

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