[Federal Register Volume 63, Number 76 (Tuesday, April 21, 1998)]
[Notices]
[Pages 19702-19704]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10511]


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 Notices
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 This section of the FEDERAL REGISTER contains documents other than rules 
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  Federal Register / Vol. 63, No. 76 / Tuesday, April 21, 1998 / 
Notices  

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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Conservation Farm Option Pilot Programs

AGENCY: Commodity Credit Corporation, United States Department of 
Agriculture.

ACTION: Notice of Request for Proposals (RFP) to establish Conservation 
Farm Option (CFO) Pilot Programs.

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SUMMARY: Section 335 of the Federal Agriculture Improvement and Reform 
Act of 1996 (the 1996 Act) established the Conservation Farm Option 
(CFO) Pilot Programs. The Commodity Credit Corporation (CCC) 
administers the CFO under the general supervision of a Vice President 
of the CCC who is the Chief of the Natural Resources Conservation 
Service (NRCS), with concurrence throughout the process by the 
Executive Vice President of the CCC who is the Administrator of the 
Farm Service Agency (FSA). CCC is requesting proposals from 
individuals, States or subdivisions thereof, Tribes, universities, and 
other organizations to cooperate in the development and implementation 
of CFO pilot programs for producers of wheat, feed grains, upland 
cotton, and rice.

DATES: Proposals must be received by June 1, 1998.

ADDRESSES: Please send proposals to one of the following individuals: 
Gary Nordstrom, Director, Conservation Operations Division, Natural 
Resources Conservation Service, P.O. Box 2890, Attention CFO, 
Washington, DC 20013-2890; or George T. Denley, Director, Conservation 
and Environmental Programs Division, Farm Service Agency, Mail Stop 
0513, 1400 Independence Avenue, SW, Washington, DC 20013-0513; 
Attention: CFO.

FOR FURTHER INFORMATION CONTACT: Dan Smith, Water Issues Team Leader, 
Conservation Operations Division, Natural Resource and Conservation 
Service, phone 202-720-3524; fax: 202-720-4265; e-mail: 
[email protected], Attention: CFO; or Edward Rall, Economic and Policy 
Analysis Staff, Farm Service Agency, phone 202-720-7795; fax: 202-720-
8261; e-mail: [email protected], Attention: CFO.

SUPPLEMENTARY INFORMATION:

Availability of Funding in Fiscal Year 1998

    Congress authorized a $15 million CFO pilot program for fiscal year 
1998. Effective on the date of publication of this notice, proposals 
will be accepted from individuals, States, Tribes, universities, and 
other organizations to establish CFO pilot programs for producers of 
wheat, feed grains, upland cotton, and rice who have production 
flexibility contracts under the Agricultural Market Transition Act. The 
proposals must be for the purpose(s) of conserving soil, water, and 
related resources; protecting or improving water quality; restoring, 
protecting and creating wetlands; developing and protecting wildlife 
habitat; or other similar conservation purposes. Other requirements set 
forth in this notice must also be met. Proposals must be received by 
June 1, 1998. Contracts for FY 1998 funds need to be executed by 
September 30, 1998.

Background

    Traditional agricultural conservation programs provide farmers and 
ranchers with cost-share and land retirement payments as incentives to 
protect and conserve soil, water, and other natural resources, and 
provide technical assistance to implement conservation practices. In 
certain cases, however, these traditional programs lack sufficient 
flexibility to allow farmers and ranchers to operate in a manner they 
consider optimal or to address natural resource concerns for which 
warrant innovative solutions. The CFO is intended to promote innovative 
and environmentally-sound methods for addressing these concerns. CFO 
pilot programs should address resource problems and needs that are well 
documented and on a scale that will facilitate the evaluation of the 
effectiveness of the systems/practices installed, as well as that of 
the entire program. CFO pilot programs are intended to be simple, 
flexible, and should reward sustainable agricultural production 
practices and support locally led conservation goals. The CFO pilot 
program will substitute a single payment for the different types of 
payments available under the Conservation Reserve Program (CRP), the 
Wetlands Reserve Program (WRP), and the Environmental Quality 
Incentives Program (EQIP), provide an incentive for coordinated, long-
term natural resource planning, and be flexible enough to allow farmers 
and ranchers to operate in economically efficient, but innovative ways. 
The CFO provides for a locally led approach by allowing individual 
farmers and ranchers or groups of farmers and ranchers to implement 
innovative solutions to natural resource problems and encourages 
implementation of sustainable agricultural production practices. The 
CFO is a program that permits farmers and ranchers to maximize 
environmental benefits with minimal land retirement, while maintaining 
agricultural production.

Overview of the Conservation Farm Option Pilot Program

    In accordance with the Food Security Act of 1985 as amended (1985 
Act), CCC will establish CFO pilot programs for producers of wheat, 
feed grains, upland cotton, and rice. Only those owners and producers 
that have a farm with contract acres enrolled in production flexibility 
contracts established under the 1996 Act are eligible to participate in 
the CFO. Producers accepted into the CFO must enter into 10-year 
contracts which may be extended an additional 5 years. The purposes of 
CFO pilot programs include: (1) Conservation of soil, water, and 
related resources; (2) water quality protection or improvement; (3) 
wetland restoration, protection, and creation; (4) wildlife habitat 
development and protection; and (5) other similar conservation 
purposes. To enroll in the program, the 1985 Act requires producers to 
prepare a conservation farm plan which becomes part of the CFO 
contract. The plan describes all conservation practices to be 
implemented and maintained on acreage subject to contract. An important 
goal is to promote the adoption of resource conserving crop rotations 
while maintaining agricultural production and maximizing

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environmental benefits. The 1985 Act also requires the plan to contain 
a schedule for the implementation and maintenance of the practices, 
comply with highly erodible land and wetland conservation requirements 
of Title XII of the 1985 Act, and contain such other terms as the 
Secretary may require. Producers must also agree to forgo payments 
under the Conservation Reserve Program (CRP), the Wetlands Reserve 
Program (WRP), and the Environmental Quality Incentives Program (EQIP). 
In lieu of these payments, the 1985 Act requires the Secretary to offer 
annual payments under the contract that are equivalent to the payments 
the owner or producer would have received had the owner or producer 
participated in the CRP, the WRP and the EQIP. CCC will determine the 
CFO payment rates taking into consideration the payments that would 
have been received under the CRP, WRP, and EQIP, as applicable. CRP 
payments will not exceed the maximum bid price accepted for similar 
land in the vicinity.
    The CFO pilot program will substitute a single annual payment for 
the different types of payments available under the CRP, the WRP, and 
EQIP, provide an incentive for coordinated, long-term natural resource 
planning, and be flexible enough to allow farmers and ranchers to 
operate in economically efficient, but innovative ways. The CFO 
provides for a locally-led approach by allowing individual farmers and 
ranchers, or groups of and ranchers to implement innovative solutions 
to natural resource problems and encourages implementation of 
sustainable agricultural production practices. The CFO is a program 
that permits farmers and ranchers to maximize environmental benefits 
with minimal land retirement, while maintaining agricultural 
production.
    CCC will determine CFO participation in a two step process: First, 
CCC will select CFO pilot project areas based on proposals submitted by 
the public; then, CCC will accept applications from eligible producers 
within the selected pilot project areas.

CFO Pilot Projects

    CFO pilot projects will address resource problems and needs that 
are well documented and on a scale that will facilitate the evaluation 
of the effectiveness of the systems and practices installed, as well as 
that of the entire program. CFO pilot projects are intended to be 
simple, flexible, and should encourage sustainable agricultural 
production practices and support locally led conservation goals.
    CCC will select CFO pilot project areas based on the extent the 
proposal:
    1. demonstrates innovative approaches to conservation program 
delivery and administration;
    2. demonstrates innovative conservation technologies and systems;
    3. creates environmental benefits in a cost effective manner;
    4. addresses conservation of soil, water, and related resources, 
water quality protection or improvement; wetland restoration, 
protection, and creation; and wildlife habitat development and 
protection;
    5. ensures effective monitoring and evaluation of the pilot effort;
    6. considers multiple stakeholder participation (partnerships) 
within the pilot area; and
    7. provides additional non-Federal funding.
    An interdepartmental committee made up of representatives of 
several Federal agencies will review the proposals and make 
recommendations to the Chief, NRCS, who is a Vice President of the CCC, 
based on criteria available to the public in the CFO proposal package. 
The CFO proposal package includes the CFO Pilot Proposal Form CCC-1210, 
instructions for completion of the CCC-1210, and the criteria for 
evaluating proposals. The CFO proposal package is available from any 
FSA or NRCS local office. CCC will give preference to proposals that 
have high ratings based on the criteria upon which proposals will be 
evaluated.
    Pilot projects can involve either an individual or a group. In 
either case, to be considered for enrollment in CFO, each individual or 
entity within an approved pilot project area must submit an application 
which is the basis for the contract between the participant and CCC.

Payment Eligibility

    Producers of wheat, feed grains, upland cotton, and rice who have 
farms with contract acres enrolled in production flexibility contracts 
established under the Agricultural Market Transition Act are eligible 
for payment.
    No funds will be paid or transferred to any group, or entity or 
individual other than through the CFO contracts with the individual 
producers.

Pilot Project Area Proposal Submission

    Any individual, organization, or entity may submit a proposal for a 
CFO pilot program. Proposals must be submitted according to 
instructions found in the CFO proposal package available from any FSA 
or NRCS local office.

Responsibilities

    For group proposals, the individual, organization, or entity 
submitting the proposal will be responsible for providing leadership in 
the overall local planning effort which may include education, 
information delivery, monitoring and coordination with local, state or 
subdivisions thereof, tribal, and Federal agencies.
    Individual CFO pilot program participants will be responsible for 
meeting CFO pilot program requirements on their farm or ranch, 
including development and implementation of a comprehensive, long-term 
conservation farm plan, and will be responsible for education, 
information delivery, and monitoring, if included in the proposal.

Minimum Requirements of CFO Pilot Program Proposals

    A completed CFO pilot proposal form. Participation in CFO projects 
shall be open to all production flexibility contract holders without 
regard to race, color, national origin, sex, religion, age, disability, 
political beliefs and marital or familial status.

Monitoring and Impact Assessment

    An important goal of the CFO pilot programs is to assess the 
impacts of the systems/practices applied by monitoring key 
environmental indicators. Individuals may seek assistance from NRCS in 
meeting any applicable assessment and/or monitoring requirements. 
Results from impact assessments will be used to develop and modify 
existing and future conservation systems, practices, and programs.

Compliance

    If a participant fails to carry out the terms and conditions of a 
CFO contract, CCC may terminate the CFO contract. If the CFO contract 
is terminated by CCC: the participant shall forfeit all rights to 
further payments under such contract and may be requested to refund all 
payments previously received with interest and pay liquidated damages 
to CCC for CRP and WRP type practices in the amount specified in such 
contract.

Selection of CFO Pilot Program Proposals/Inter-Departmental Review

    The most important aspect of the program is its capacity to test 
new approaches to achieving environmental benefits, through either 
program design or new technology. Preference will be given to proposals 
that could not be funded by other programs, such as CRP, WRP or EQIP.
    Proposals will be reviewed by an interdepartmental committee which 
will

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make recommendations to the Chief, NRCS based on criteria set forth in 
the CFO proposal package. The review committee may be drawn from the 
Corps of Engineers, Bureau of Indian Affairs, Bureau of Land 
Management, Bureau of Reclamation, Cooperative Extension Service, 
Cooperative State Research, Education and Extension Service, Department 
of Energy, Economic Research Service, Environmental Protection Agency, 
Farm Service Agency, Forest Service, National Oceanic and Atmospheric 
Administration, Natural Resources Conservation Service, U.S. Fish and 
Wildlife Service, and the U.S. Geological Survey. The Chief, NRCS, will 
select proposals for funding. Upon selection of pilot project 
proposals, all producers with production flexibility contracts under 
AMTA within project areas will be eligible to participate in the CFO. 
CFO conservation farm plans will be approved by NRCS and the CFO 
contracts will be approved and payments made by the local FSA office.

    Signed in Washington, D.C. on April 14, 1998.
Pearlie S. Reed,
Vice President, Commodity Credit Corporation.
[FR Doc. 98-10511 Filed 4-20-98; 8:45 am]
BILLING CODE 3410-16-P