Conservation Reserve Program--Good Faith Reliance and Excessive

From: GPO_OnLine_USDA
Date: 2001/03/15


[Federal Register: March 15, 2001 (Volume 66, Number 51)]
[Proposed Rules]
[Page 15048-15049]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15mr01-18]

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[[Page 15048]]

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1410

RIN 0560-AG37

Conservation Reserve Program--Good Faith Reliance and Excessive
Rainfall

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Proposed rule.

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SUMMARY: The Commodity Credit Corporation (CCC) proposes an amendment
to the Conservation Reserve Program (CRP) regulations. This proposed
amendment would provide, under certain conditions, for equitable relief
to producers who violated their contract based on a good faith reliance
on the action or advice of certain USDA representatives, or while
attempting to comply with their contract. It will also provide that CRP
contracts will not be terminated for failure to plant cover when that
failure was due to excess rainfall or flooding.

DATES: Comments must be submitted on or before May 14, 2001.

ADDRESSES: All comments concerning these proposed regulations should be
addressed to James Michaels, Conservation and Environmental Programs
Division, USDA/FSA/CEPD/STOP 0513, 1400 Independence Avenue, S.W.,
Washington, D.C. 20250-0513 or sent electronically to:
crprule1@wdc.usda.gov.

FOR FURTHER INFORMATION CONTACT: James Michaels, (202) 720-8774.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    The proposed rule is issued in conformance with Executive Order
12866 and has been determined to not significant and, therefore, was
not reviewed by the Office of Management and Budget (OMB).

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not
applicable to this rule since the Commodity Credit Corporation (CCC) is
not 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 have no significant impact on the quality of the human
environment. Therefore, neither an environmental impact assessment nor
an Environmental Impact Statement is needed.

Executive Order 12988

    This proposed rule has been reviewed in accordance with Executive
Order 12988. This proposed rule is not retroactive and does not pre-
empt State laws. Before any judicial action may be taken with respect
to the provisions of the proposed rule, administrative remedies at 7
CFR part 790 must be exhausted.

Executive Order 12372

    This program is not subject to the provisions of Executive Order
12372, which requires intergovernmental consultation with State and
local officials. See the notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115 (June 24, 1983).

Unfunded Mandates

    Title II of the Unfunded Mandate Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their proposed and final rules with ``Federal mandates''
that may result in expenditures to State, local, or tribal governments,
in the aggregate, or the private sector, of $100 million or more in any
1 year. This rule contains no Federal mandates under the regulatory
provisions of Title II of the UMRA for State, local, and tribal
governments or the private sector. Therefore, this rule is not subject
to the requirements of sections 202 and 205 of the UMRA.

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

    A request for approval under 44 U.S.C. Chapter 33 of the
information collection requirements contained in the regulations at 7
CFR part 1410 has been submitted to OMB. The OMB Control Number is
0560-0125.

Background

    The purpose of the Conservation Reserve Program (CRP) is to cost-
effectively assist owners and operators in conserving and improving
soil, water, and wildlife resources by converting highly erodible and
other environmentally sensitive acreage normally devoted to the
production of agricultural commodities to a long-term vegetative cover.
CRP participants enter into contracts for 10 to 15 years in exchange
for annual rental payments and cost-share assistance for installing
certain conservation practices. In determining the amount of annual
rental payments to be paid, CCC considers, among other things, the
amount necessary to encourage owners or operators of eligible cropland
to participate in the CRP. Offers are submitted in such a manner as the
Secretary prescribes. The maximum rental payments CCC will pay reflect
site-based soil productivity, prevailing local cash equivalent rental
rates, and maintenance costs. Offers by producers who request rental
payments greater than the amount CCC is willing to pay for their soil
type are automatically rejected by CCC. Except for the continuous
signup process, remaining offers are evaluated for possible acceptance
based on a comparison of environmental benefits indicators with the
rental payment cost. The continuous signup process does not include an
evaluation based on environmental benefits indicators because only
those practices designed to obtain high environmental benefits are
eligible to be offered during the continuous signup. Acreage determined
eligible and suitable to be devoted to continuous signup practices by
the Secretary is automatically accepted in the CRP provided all other
eligibility requirements are met.

Program Changes

    Section 755 of the Agriculture, Rural Development, Food and Drug

[[Page 15049]]

Administration, and Related Agencies Appropriations Act, 2001 (the 2001
Act) (Pub. L. 106-387) provides that the Secretary shall provide
equitable relief to an owner or operator who is in violation of a CRP
contract if, in attempting to comply with the terms of the contract and
enrollment requirements, the owner or contractor took actions in good
faith reliance on the action or advice of an authorized representative
of the Secretary. To the extent the Secretary determines that an owner
or operator has been injured by such good faith reliance, the Secretary
shall allow the owner or operator to do any one or more of the
following: (1) Retain payments received under that contract, (2)
continue to receive payments under the contract, (3) keep all or part
of the land covered by the contract enrolled in the program, (4) re-
enroll all or part of the land covered by the contract, or any other
equitable relief the Secretary deems appropriate. The owner or operator
shall be required to take such actions as are necessary to remedy any
failure to comply with the contract. Equitable relief shall apply to
all contracts in effect on January 1, 2000, and all subsequent
contracts.
    Section 817 of the 2001 Act provides that the Secretary shall not
terminate a CRP contract for failure to establish approved or
vegetative cover if the failure to plant such cover was due to
excessive rainfall or flooding, the land subject to the contract that
could practicably be planted to such cover is planted to such cover,
and the land that could not be planted to such cover is planted to such
cover after the wet condition that prevented the planting subsides.

List of Subjects in 7 CFR Part 1410

    Administrative practices and procedures, Agriculture, Grazing
lands, Soil conservation, Water resources.
    For reasons set out in the preamble, 7 CFR part 1410 is proposed to
be amended as follows:

PART 1410--CONSERVATION RESERVE PROGRAM

    1. The authority citation for 7 CFR Part 1410 continues to reads as
follows:

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

    2. In Sec. 1410.2, the definition of ``violation'' is added to read
as follows:

Sec. 1410.2 Definitions.

* * * * *
    Violation means an act by the participant, either intentional or
unintentional, which would cause the participant to no longer be
eligible for cost-share or annual contract payments.
* * * * *
    3. Section 1410.20(a)(2) is revised to read as follows:

Sec. 1410.20 Obligations of participant.

* * * * *
    (a) * * *
    (2) Implement the conservation plan, which is part of such
contract, in accordance with the schedule of dates included in such
conservation plan unless the Deputy Administrator determines that the
participant cannot fully implement the conservation plan for reasons
beyond the participant's control and CCC agrees to a modified plan. The
Deputy Administrator may not terminate the contract for failure to
establish an approved vegetative or water cover on the land if, as
determined by the Deputy Administrator:
    (i) The failure to plant such cover was due to excessive rainfall
or flooding;
    (ii) The land subject to the contract that could practicably be
planted to such cover is planted to such cover; and
    (iii) The land on which the participant was unable to plant such
cover is planted to such cover after the wet conditions the prevented
the planting subsides;
* * * * *
    4. Section 1410.54 is revised to read as follows:

Sec. 1410.54 Performance based upon advice or action of the
Department.

* * * * *
    (a) The provisions of Sec. 718.8 of this title relating to
performance based upon the action or advice of a representative of the
Department shall be applicable to this part.
    (b) Except as provided in paragraph (b)(3) of this section, and
notwithstanding any other provision of this chapter, the Deputy
Administrator may provide equitable relief to a participant that has
entered into a contract under this chapter, and that is subsequently
determined to be in violation of the contract, if the owner or
operator, in attempting to comply with the terms of the contract and
enrollment requirements, took actions in good faith reliance on the
action or advice of an authorized USDA representative as determined by
the Deputy Administrator, provided:
    (1) The Deputy Administrator determines that a participant has been
injured by good faith reliance. In such cases, the participant may be
authorized, as determined by the Deputy Administrator, to do any one or
more of the following;
    (i) Retain payments received under the contract;
    (ii) Continue to receive payments under the contract;
    (iii) Keep all or part of the land covered by the contract enrolled
in the applicable program under this chapter;
    (iv) Re-enroll all or part of the land covered by the contract in
the applicable program under this chapter; or
    (v) Any other equitable relief the Deputy Administrator deems
appropriate, and
    (2) If relief under this section is authorized by the Deputy
Administrator, the participant must take such actions as are determined
by the Deputy Administrator to remedy any failure to comply with the
contract.
    (3) This section shall not apply to a pattern of conduct, as
determined by the Deputy Administrator, in which an authorized USDA
representative takes actions or provides advice with respect to a
participant that the representative and the participant know, or should
have known, are inconsistent with applicable law (including
regulations).
    (4) Relief under this section shall be available for contracts in
effect beginning January 1, 2000.
* * * * *

    Signed at Washington, DC, on March 12, 2001.
James R. Little,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 01-6450 Filed 3-14-01; 8:45 am]
BILLING CODE 3410-05-p



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