[Federal Register Volume 67, Number 11 (Wednesday, January 16, 2002)]
[Rules and Regulations]
[Pages 2131-2132]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-1052]



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 Rules and Regulations
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  Federal Register / Vol. 67, No. 11 / Wednesday, January 16, 2002 / 
Rules and Regulations  

[[Page 2131]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1410

RIN 0560-AG37


Conservation Reserve Program--Good Faith Reliance and Excessive 
Rainfall

AGENCY: Farm Service Agency and Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: This rule amends the Conservation Reserve Program (CRP) 
regulations to 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. It also 
provides that CRP contracts will not be terminated for failure to plant 
cover when that failure was due to excess rainfall or flooding.

DATES: This regulation is effective January 16, 2002.

FOR FURTHER INFORMATION CONTACT: Mr. James Michaels, (202) 720-8774, or 
via e-mail at: [email protected] or on the FSA web page at http://www.fsa/usda/gov/. 

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This final rule has been determined to be 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 because 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

    In accordance with 7 CFR part 799, an environmental assessment was 
conducted to determine whether the actions included in this final rule 
would significantly affect the quality of the human environment. A 
determination was made that the actions of this final rule would have 
no significant impact on the human environment and the preparation of 
an Environmental Impact Statement is not necessary.

Executive Order 12988

    This final rule has been reviewed in accordance with Executive 
Order 12988. This final 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 final rule, administrative remedies at 7 CFR parts 11 
and 780 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 
one year. This rule contains no Federal mandates under the regulatory 
provisions of Title II of the UMRA for State, local, and tribal 
government 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 Reserve Program--10.069.

Paperwork Reduction Act

    The Office of Management and Budget approved the information 
collection requirements contained in the current regulations at 7 CFR 
part 1410 under provisions of 44 U.S.C. chapter 33 and OMB control 
number 0560-0125 was assigned. This rule will have no impact on the 
burden approved under that control number.

Discussion of Final Rule

    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. Acreage is accepted into the CRP based on the 
eligibility requirements contained in 7 CFR part 1410.
    On March 15, 2001, the Agency published a proposed rule, at 66 FR 
15048. First, the rule proposed to implement section 755 of the 
Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 2001 (the 2001 Act) (Pub. L. 106-
387). The comment period ended on May 14, 2001. This law requires the 
Secretary to provide equitable relief to someone who violates a CRP 
contract if they took actions in good faith reliance on the action or 
advice of an authorized representative of the Secretary. If the 
Secretary determines that a CRP participant has been injured by such 
good faith reliance, the Secretary may allow that person some relief 
from the contract breach, as long as action is taken to correct the 
violation, and subject to other limitations promulgated in this rule.
    The second change that CCC proposed allows the Secretary to not 
terminate a CRP contract for failure to establish approved vegetative 
cover or water cover if the failure to establish that cover was due to 
excessive rainfall or

[[Page 2132]]

flooding. Conditions for this waiver were discussed in the proposed 
rule.
    This rule implements these two new statutory amendments by revising 
the CRP regulations contained in 7 CFR part 1410. These changes will 
help ensure that the CRP is implemented in a fair and reasonable 
manner, and that participants are not penalized unjustly.

Summary of Comments

    CCC did not receive any comments from the public concerning the 
proposed rule. Three comments came from one individual who is an FSA 
employee in Kansas. These comments were of an administrative nature and 
can be addressed in internal agency procedure.

Substantive Changes From the Proposed Rule

    There were no substantive changes compared to the proposed rule.

List of Subjects in 7 CFR Part 1410

    Conservation Reserve Program: administrative practices and 
procedures, agriculture, conservation plan, grazing lands, and natural 
resources.


    For reasons set out in the preamble, 7 CFR part 1410 is 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) is revised to read as follows:


Sec. 1410.20  Obligations of participant.

* * * * *
    (a) * * *
    (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. 
However, a contract will not be terminated 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 or establish such cover was due to 
excessive rainfall or flooding;
    (ii) The land subject to the contract on which the participant 
could practicably plant or establish to such cover is planted or 
established to such cover; and
    (iii) The land on which the participant was unable to plant or 
establish such cover is planted or established to such cover after the 
wet conditions that prevented the planting or establishment subside.
* * * * *
    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, and may be considered as a 
basis to provide relief to persons subject to sanctions under this part 
to the extent that relief is not mandated by the other provisions of 
this section.
    (b) Further, 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 who 
has entered into a contract under this chapter, and who is subsequently 
determined to be in violation of the contract, if the participant, in 
attempting to comply with the terms of the contract and enrollment 
requirements, took actions in good faith reliance upon 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 such good faith reliance, in which case, the participant may 
be authorized, as determined appropriate 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.
    (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 both know, or 
should have known, are inconsistent with applicable law (including 
regulations).
    (4) Relief under this paragraph shall be available only for 
contracts in effect on January 1, 2000, or thereafter.

    Signed at Washington, DC, on January 9, 2002.
James R. Little,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 02-1052 Filed 1-15-02; 8:45 am]
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