[Federal Register Volume 61, Number 167 (Tuesday, August 27, 1996)]
[Rules and Regulations]
[Pages 43943-43946]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21624]


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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]
BILLING CODE 3410-05-P