[Federal Register Volume 60, Number 88 (Monday, May 8, 1995)]
[Rules and Regulations]
[Pages 22456-22458]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11260]



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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