[Federal Register: April 9, 2003 (Volume 68, Number 68)]
[Rules and Regulations]
[Page 17272-17276]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09ap03-3]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1465
RIN 0578-AA31
Agricultural Management Assistance Program
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Final rule.
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SUMMARY: This final rule implements section 2501 of the Farm Security
and Rural Investment Act of 2002 (the 2002 Act) which amended section
524 of the Federal Crop Insurance Act which permits CCC to fund the
Agricultural Management Assistance (AMA) program. This final rule
describes how NRCS intends to implement AMA as authorized by the
amendment in the 2002 Act.
EFFECTIVE DATE: May 9, 2003.
ADDRESSES: This rule may also be accessed via Internet. Users can
access the Natural Resources Conservation Service (NRCS) homepage at
http://www.nrcs.usda.gov; select Farm Bill 2002, and click on AMA Final
rule.
FOR FURTHER INFORMATION CONTACT: Dave Mason, Program Manager,
Conservation Operations Division, NRCS, P.O. Box 2890, Washington, DC
20013-2890, telephone: (202) 720-1873; fax: (202) 720-4265; e-mail:
dave.mason@usda.gov, Attention: Agricultural Management Assistance.
SUPPLEMENTARY INFORMATION:
Discussion of Program
Section 2501 of the Farm Security and Rural Investment Act of 2002
(the 2002 Act) amended section 524 of the Federal Crop Insurance Act (7
U.S.C. 1524) to permit CCC to fund the Agricultural Management
Assistance (AMA) program at the amount of $20,000,000 for each of the
fiscal years 2003 through 2007. Section 524(b) of the Federal Crop
Insurance Act of 2000, as amended by section 133 of the Agricultural
Risk Protection Act of 2000, authorized the AMA program.
As provided by section 524 of the Federal Crop Insurance Act (7
U.S.C. 1524), as amended by the 2002 Act, the funds, facilities, and
authorities of the Commodity Credit Corporation (CCC) are available to
NRCS for carrying out AMA. (The Chief of the NRCS is vice-president of
the CCC.) Accordingly, where NRCS is mentioned in this rule, it also
refers to the CCC's funds, facilities, and authorities where
applicable.
The Commodity Credit Corporation (CCC) administers the funds under
the general supervision of a Vice President of the CCC who is the Chief
of the Natural Resources Conservation Service (NRCS). These funds will
be used annually for cost share assistance to producers in 15 States in
which participation in the Federal Crop Insurance Program is
historically low. The 15 States include Connecticut, Delaware, Maine,
Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New York,
Pennsylvania, Rhode Island, Utah, Vermont, West Virginia, and Wyoming.
The cost share assistance will encourage and assist producers in the
selected States to adopt natural resources conservation practices and
investment strategies that will reduce or mitigate risks to their
agricultural enterprises.
NRCS will use an allocation formula to determine the amount of
funds that each state will receive that have been weighted to meet
National objectives for the AMA conservation program. The formula used
to determine allocation of funds to states consists of ranking factors
of natural resource concerns. The formula is similar in nature to ones
that have been used for other NRCS conservation programs.
However, this formula is primarily used to allocate funds to the
states for practices that will mitigate a producer's risk of production
through the implementation of resource conservation practices that
reduce soil erosion, utilize integrated pest management principles and
assist producers in transition to organic farming based operations.
Production and marketing diversification is enhanced by utilizing
integrated pest management principles by reducing and applying
chemicals for production as needed. Producers who elect to eliminate
chemical usage by converting to organic farming will be able to provide
products to a growing sector of the American population whose daily
diet consists partially or totally of organically produced food items.
This allows producers to use marketing diversification as a tool to
enhance their operations. AMA is targeted to 15 states that have been
historically low in participation in programs that provide
opportunities for producers to environmentally and financially
implement conservation practices and marketing strategies to provide
safeguards against the cyclic economic variances of the agricultural
economy.
Other practices that producers may elect to implement include the
opportunity to construct or improve watershed management or irrigation
structures and plant trees to form windbreaks or improve water quality.
Based on national program objectives and state priorities and
resource concerns, the State Conservationist in conjunction with advice
from the State Technical Committee will determine which practices are
eligible for program payments. The practices must meet the purposes set
out in section 1465.1 of this rule.
The State Conservationist or designated conservationist with advice
from the State Technical Committee and using a locally led process will
rank and select applications for contracting based on the state-
developed ranking criteria and ranking process. The NRCS representative
will work with the applicant to collect the necessary information to
evaluate the application using the ranking criteria.
[[Page 17273]]
Executive Order 12866
Pursuant to Executive Order 12866 (58 FR 51735, October 4, 1993),
the Office of Management and Budget has determined that this final rule
is not a significant regulatory action.
Regulatory Flexibility Act
The Regulatory Flexibility Act is not applicable to this rule
because NRCS 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 Analysis
NRCS has determined through an Environmental Assessment (EA) for
the Agricultural Management Assistance Program that the issuance of
this final rule would not have a significant impact on the human
environment. Copies of the Environmental Assessment and the Finding of
No Significant Impact may be obtained from Dave Mason, Conservation
Operations Division, Natural Resources Conservation Service, P.O. Box
2890, Washington, DC 20013-2890.
Civil Rights Impact Analysis
NRCS has determined through a Civil Rights Impact Analysis that the
issuance of this final rule will not have a significant effect on
minorities. Copies of the Civil Rights Impact Analysis and Finding of
No Significant Impact may be obtained from Dave Mason, Conservation
Operations Division, Natural Resources Conservation Service, P.O. Box
2890, Washington, DC 20013-2890.
Paperwork Reduction Act
Section 2702 (b)(1)(A) of the 2002 Act exempts the promulgation of
regulations and the administration of the AMA from the requirements of
the Paperwork Reduction Act.
Executive Order 12988
This final rule has been reviewed in accordance with Executive
Order 12988. The provisions of this final rule are not retroactive.
Furthermore, the provisions of this final rule preempt State and local
laws to the extent such laws are inconsistent with this 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 614, 780 and 11 must be exhausted.
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;
therefore a statement under section 202 of the Unfunded Mandates Reform
Act of 1995 is not required.
Federal Crop Insurance Reform and Department of Agriculture
Reorganization Act of 1994
USDA classified this final rule as ``not major'' under section 304
of the Department of Agriculture Reorganization Act of 1994, Pub. L.
104-354. Therefore, a risk assessment is not required.
Discussion of Comments
NRCS issued a proposed rule with request for comments on August 28,
2002, in the Federal Register, Volume 67, Number 167, Pages 55171-
55175.
One comment was received during the comment period on the proposed
regulation. The commenter stated that they were interested in
organizing a meeting with a group of farmers in Illinois. Since the
state of Illinois is not eligible for participation in the program and
the comment was not directed to any section of the proposed rule, no
changes were made to the rule.
List of Subjects in 7 CFR Part 1465
Conservation contract, Conservation plan, Conservation practices,
Soil and water conservation.
0
Accordingly, Title 7 of the Code of Federal Regulations is amended by
adding a new part 1465 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 Program requirements.
1465.5 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 Cost-share 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 Performance based upon advice or action of representatives
of NRCS.
1465.34 Offsets and assignments.
1466.35 Misrepresentation and scheme or device.
Authority: 7 U.S.C. 1524(b), 16 U.S.C. 3801.
Subpart A--General Provisions
Sec. 1465.1 Purposes and applicability.
Through the Agricultural Management Assistance (AMA) program, the
NRCS provides financial assistance funds annually to producers in 15
statutorily designated states to construct or improve water management
structures or irrigation structures; to plant trees to form windbreaks
or to improve water quality; and to mitigate risk through production
diversification or resource conservation practices, including soil
erosion control, integrated pest management, or transition to organic
farming. The AMA Program is applicable in Connecticut, Delaware,
Maryland, Massachusetts, Maine, 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 Program for the CCC is assigned to the Natural
Resources Conservation Service (NRCS). The Farm Service Agency (FSA) is
responsible for `person' determinations under Sec. 1465.23(c) and
making cost-share payments.
(b) NRCS will:
(1) Provide overall management and implementation leadership for
the AMA Program;
(2) Establish policies, procedures, priorities, and guidance for
implementation;
(3) Establish cost-share payment limits;
(4) Determine eligible practices;
(5) Develop and approve conservation plans and contracts with
selected participants;
(6) Provide technical leadership for implementation, quality
assurance, and evaluation of performance; and
(7) Make funding decisions and determine allocations of AMA funds.
(c) FSA will:
(1) Determine `person' and producer eligibility; and
(2) Make cost-share payments for practices completed.
Sec. 1465.3 Definitions.
The following definitions apply to this part and all documents
issued in
[[Page 17274]]
accordance with this part, unless specified otherwise:
Applicant means an agricultural producer who has requested in
writing to participate in the AMA Program. Producers who are members of
a joint operation shall be considered one applicant.
Chief means the Chief of NRCS, or designee.
Conservation district means a political subdivision of a State,
Indian tribe, or territory, organized pursuant to the State or
territorial soil conservation district law, or tribal law. The
subdivision may be a conservation district, soil conservation district,
soil and water conservation district, resource conservation district,
natural resource district, land conservation committee, or similar
legally constituted body.
Conservation plan means a record of the participant's decisions,
and supporting information, for treatment of a unit of land or water,
and includes the schedule of operations, activities, and estimated
expenditures needed to solve identified natural resource concerns.
Conservation practice means a specified treatment, such as a
structural or vegetative practice or a land management practice, which
is planned and applied according to NRCS standards and specifications.
Contract means a legal document that specifies the rights and
obligations of any person who has been accepted for participation in
the AMA Program.
Cost-share payment means the financial assistance from NRCS to the
participant to share the cost of installing eligible practices.
Designated conservationist means an NRCS employee whom the State
conservationist has designated as responsible for administration of the
AMA Program.
Indian tribe means any Indian tribe, band, nation, or other
organized group or community which is recognized as eligible for the
special assistance and services provided by the United States to
Indians because of their status as Indians.
Indian trust lands means real property in which the United States
holds title as trustee for an Indian or tribal beneficiary, or a Indian
or tribal beneficiary holds title and the United States maintains a
trust relationship.
Life-span means the minimum time period in which the conservation
practices are to be maintained and used for their intended purpose.
Liquidated damages means a sum of money stipulated in the contract
that the participant agrees to pay if the participant breaches the
contract. The sum represents an estimate of the anticipated or actual
harm caused by the breach, and reflects the difficulties of proof of
loss and the inconvenience or non-feasibility of otherwise obtaining an
adequate remedy.
Operation and maintenance means work that is to be performed by the
participant to keep the applied conservation practice functioning for
the intended purpose during its life span. 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.
Participant means a producer who is a party to an AMA contract.
Producer means a person who is engaged in agricultural production.
Secretary means the Secretary of the United States Department of
Agriculture.
State Conservationist means the NRCS employee authorized to direct
and supervise NRCS activities in a State, the Caribbean Area, or the
Pacific Basin Area.
State Technical Committee means a committee established by the
Secretary in a State pursuant to 16 U.S.C. 3861.
Technical assistance means the personnel and support resources
needed to conduct conservation practice survey, layout, design,
installation, and certification; training and providing quality
assurance for professional conservationists; and evaluation and
assessment of the AMA Program.
Unit of concern means a parcel of agricultural land that has
natural resource conditions that are of concern to the participant.
Sec. 1465.4 Program requirements.
(a) Participation in the AMA Program is voluntary. The participant,
in cooperation with the local conservation district, applies for
practice installation for the farm or ranching unit of concern. The
NRCS provides cost-share payments through contracts to apply needed
conservation practices within a time schedule specified in the
contract.
(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 the AMA Program.
(c) To be eligible to participate in the AMA Program, an applicant
must:
(1) Be an agricultural producer;
(2) Have control of the land for the life of the proposed contract
period, except that:
(i) An exception may be made by the Chief 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 an eligible
practice(s);
(3) Submit an application form CCC-1200;
(4) Supply information as required by NRCS to determine eligibility
for the AMA Program; and
(5) States, political subdivisions, and entities thereof will not
be persons eligible for payment. Any cooperative association of
producers that markets commodities for producers shall not be
considered to be a person eligible for payment.
(d) Land may only be considered for enrollment in the AMA program
if NRCS determines that the land is:
(1) Privately owned land;
(2) Publicly owned land where:
(i) The land is under private control for the contract period and
is included in the participant's operating unit;
(ii) Conservation practices will contribute to an improvement in
the identified natural resource concern; and
(iii) The participant has provided NRCS with written authorization
from the government landowner to apply the conservation practices; or
(3) The land is federally recognized Tribal, BIA allotted, or
Indian trust land.
Sec. 1465.5 Conservation practices.
(a) The State Conservationist, with advice from the State Technical
Committee, will determine the conservation practices eligible for AMA
Program payments. To be considered eligible conservation practices, the
practices must meet the purposes of the AMA as set out in Sec. 1465.1.
(b) The conservation plan includes the schedule of operations,
activities, and estimated expenditures of the practices needed to solve
identified natural resource concerns.
Subpart B--Contracts
Sec. 1465.20 Applications for participation and selecting
applications for contracting.
(a) Any producer who has eligible land may submit an application
for participation in the AMA Program at a USDA service center.
Producers who are members of a joint operation shall file
[[Page 17275]]
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 and the state-specific goals. Information will be provided
that explains the process to request assistance.
(c) The State Conservationist, with advice from the State Technical
Committee, will develop ranking criteria and a ranking process to
select applications, taking into account local and state priorities.
(d) The State Conservationist or designated conservationist with
advice from the State Technical Committee and using a locally led
process will 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.
Sec. 1465.21 Contract requirements.
(a) In order for a participant to receive cost-share payments, the
participant shall enter into a contract agreeing to implement eligible
conservation practices.
(b) An AMA contract will:
(1) Incorporate by reference all portions of a unit applicable to
the AMA Program;
(2) Be for a duration of 3 to 10 years;
(3) Incorporate all provisions as required by law or statute,
including participant requirements to:
(i) Not conduct any practices on the farm or ranch unit of concern
that would tend to defeat the purposes of the contract according to
Sec. 1465.25;
(ii) Refund any AMA Program payments received with interest, and
forfeit any future payments under the AMA Program, on the violation of
a term or condition of the contract, consistent with the provisions of
Sec. 1465.25;
(iii) Refund all AMA Program 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 of the contract, consistent with the provisions of Sec.
1465.24; and
(iv) Supply information as required by NRCS to determine compliance
with the contract and requirements of the AMA Program.
(4) Specify the participant's requirements for operation and
maintenance of the applied conservation practices consistent with the
provisions of Sec. 1465.22; and
(5) 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 contract or conservation plan.
Sec. 1465.22 Conservation practice operation and maintenance.
The contract will incorporate the operation and maintenance of the
conservation practice(s) applied under the contract. The participant
must operate and maintain the conservation practice(s) for its intended
purpose for the life span of the conservation practice, as identified
in the contract or conservation plan, as determined by NRCS. NRCS may
periodically inspect the conservation practices during the life span of
the practices as specified in the contract to ensure that operation and
maintenance is occurring.
Sec. 1465.23 Cost-share payments.
(a)(1) The Federal share of cost-share payments to a participant
will be 75 percent of the actual cost of an eligible practice. In no
instance shall the total financial contributions for an eligible
practice from all public and private entity sources exceed 100 percent
of the actual cost of the practice.
(2) Participants may contribute their portion of the costs of
practices through in-kind contributions, including labor and materials,
providing the materials contributed meet the NRCS standards and
specifications for the practice being installed.
(3) Cost-share payments will not be made to a participant who has
applied or initiated the application of a conservation practice prior
to approval of the contract.
(b) The total amount of cost-share payments paid to a person under
this part may not exceed $50,000 for any fiscal year.
(c) For purposes of applying the payment limitations provided for
in this section, NRCS will use the provisions in 7 CFR part 1400
related to the definition of a ``person''and the limitation of
payments, except that:
(i) The provisions in part 1400, subpart C for determining whether
persons are actively engaged in farming, subpart E for limiting
payments to certain cash rent tenants, and subpart F as the provisions
apply to determining whether foreign persons are eligible for payment,
will not apply.
(ii) With respect to land under an AMA Program contract which is
inherited during the contract period, the $50,000 fiscal year
limitation will not apply to the extent that the payments from any
contracts on the inherited land cause an heir, who was party to an AMA
Program contract on other lands prior to the inheritance, to exceed the
annual limit.
(iii) With regard to contracts on tribal land, Indian trust land,
or BIA allotted land, payments exceeding one limitation may be made to
the tribal venture if an official of the BIA or tribal official
certifies in writing that no one person directly or indirectly will
receive more than the limitation.
(iv) The status of an individual or entity on the date of the
application shall be the basis on which the determination of the number
of persons involved in the farming operation is made.
(d) The participant and NRCS must certify that a conservation
practice is completed in accordance with the contract before NRCS will
approve the payment of any cost-share payment.
Sec. 1465.24 Contract modification, extension, and transfer of land.
(a) The participant and NRCS may modify a contract if the
participant and NRCS agree to the contract modification.
(b) Contracts that run less than ten years may be extended for up
to the 10-year limit in order for the participant to complete the
practices scheduled in the contract, if such extension is requested by
the participant before the contract expires.
(c) The parties may mutually agree to transfer a contract to a new
participant. The transferee must be determined by NRCS to be eligible
to participate in the AMA Program and shall assume full responsibility
under the contract, including operation and maintenance of those
conservation practices already installed and to be installed as a
condition of the contract.
(d) NRCS may require a participant to refund all or a portion of
any assistance earned under the AMA Program if the participant sells or
loses control of the land under an AMA Program contract and the new
owner or controller is not eligible to participate in the AMA Program
or refuses to assume responsibility under the contract.
Sec. 1465.25 Contract violations and termination.
(a)(1) If NRCS determines that a participant is in violation of the
terms of a contract or documents incorporated by reference into the
contract, NRCS will give the participant a reasonable time, as
determined by the State Conservationist, to correct the violation and
comply with the terms of the contract and attachments thereto. If a
[[Page 17276]]
participant continues in violation, the State Conservationist may
terminate the AMA Program contract.
(2) Notwithstanding the provisions of paragraph (a)(1) of this
section, a contract termination shall be effective immediately upon a
determination by the State Conservationist that the participant has
submitted false information or filed a false claim, or engaged in any
act for which a finding of ineligibility for payments is permitted
under the provisions of Sec. 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.
(b)(1) If NRCS terminates a contract, the participant shall forfeit
all rights for future payments under the contract and shall refund all
or part of the payments received, plus interest determined in
accordance with part 1403 of this chapter. The State Conservationist
has the option of requiring only 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 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 are prescribed in the contract. The State Conservationist
will have the option to waive the liquidated damages depending upon the
circumstances of the case.
(3) When making all contract termination decisions, NRCS may reduce
the amount of money owed by the participant by a proportion which
reflects the good faith effort of the participant to comply with the
contract, or the hardships beyond the participant's control that have
prevented compliance with the contract.
(4) The participant may voluntarily terminate a contract if NRCS
agrees based on NRCS's determination that termination is in the public
interest.
(5) In carrying out NRCS's role in this section, NRCS may consult
with the local conservation district.
Subpart C--General Administration
Sec. 1465.30 Appeals.
(a) A participant may obtain administrative review of an adverse
decision under the AMA Program in accordance with parts 11 and 614 of
this title, except as provided in paragraph (b) of this section.
(b) The following decisions are not appealable:
(1) Payment rates, payment limits, and cost-share percentages;
(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.
Sec. 1465.31 Compliance with regulatory measures.
Participants who carry out conservation practices will be
responsible for obtaining the authorities, rights, easements, or other
approvals necessary for the implementation, operation, and maintenance
of the conservation practices in keeping with applicable laws and
regulations. Participants will be responsible for compliance with all
laws and for all effects or actions resulting from the participant's
performance under the contract.
Sec. 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 ascertaining the accuracy of
any representations made in a contract or in anticipation of entering a
contract, as to the performance of the terms and conditions of the
contract. Access shall include the right to provide technical
assistance, inspect any work undertaken under the contract and collect
information necessary to evaluate the performance of conservation
practices in the contract. The NRCS representative will make a
reasonable effort to contact the participant prior to the exercise of
this provision.
Sec. 1465.33 Performance based upon advice or action of
representatives of NRCS.
If a participant relied upon the advice or action of any authorized
representative of NRCS, and did not know or have reason to know that
the action or advice was improper or erroneous, the State
Conservationist may accept the advice or action as meeting the
requirements of the AMA Program and may grant relief, to the extent it
is deemed desirable by NRCS, to provide a fair and equitable treatment
because of the good-faith reliance on the part of the participant.
Sec. 1465.34 Offsets and assignments.
(a) Except as provided in paragraph (b) of this section, any
payment or portion thereof to any person 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 in part 1403 of
this chapter shall be applicable to contract payments.
(b) Any producer entitled to any payment may assign any payments in
accordance with regulations governing assignment of payment found at
part 1404 of this chapter.
Sec. 1465.35 Misrepresentation and scheme or device.
(a) A producer who is determined to have erroneously represented
any fact affecting an AMA Program determination made in accordance with
this part shall not be entitled to contract payments and must refund to
NRCS all payments, plus interest determined in accordance with part
1403 of this chapter.
(b) A producer's interest in all contracts shall be terminated, and
the producer shall refund to NRCS all payments, plus interest
determined in accordance with part 1403 of this chapter, received by
such producer with respect to all contracts if it is determined that
the producer knowingly:
(1) Adopted any scheme or device that tends to defeat the purpose
of the AMA Program;
(2) Made any fraudulent representation; or
(3) Misrepresented any fact affecting an AMA Program determination.
Signed in Washington, DC, on March 28, 2003.
Bruce I. Knight,
Vice President, Commodity Credit Corporation, Chief, Natural Resources
Conservation Service.
[FR Doc. 03-8452 Filed 4-8-03; 8:45 am]
BILLING CODE 3410-16-P
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