[Federal Register Volume 68, Number 114 (Friday, June 13, 2003)]
[Notices]
[Pages 35360-35363]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14977]


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 Notices
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 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
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  Federal Register / Vol. 68, No. 114 / Friday, June 13, 2003 / 
Notices  

[[Page 35360]]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Grassland Reserve Program

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Notice of availability of program funds for the Grassland 
Reserve Program.

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SUMMARY: The Commodity Credit Corporation (CCC) announces the 
availability of $49,492,000 to implement the Grassland Reserve Program 
(GRP) in fiscal year 2003. Section 2401 of the Farm Security and Rural 
Investment Act of 2002 (Pub. L. 107-171) amended the Food Security Act 
of 1985 to authorize this program. The Secretary of Agriculture 
delegated the authority to administer GRP on behalf of the CCC, to the 
Administrator, Farm Service Agency (FSA) and the Chief, Natural 
Resources Conservation Service (NRCS). These agency leaders are 
officers of the CCC.
    Although this notice applies only to funds made available in 
FY2003, CCC will, at a later date, issue a regulation for FY 2004 
through FY 2007 program implementation. The rule will address and seek 
comment on a number of issues including: the process for establishing 
program priorities and criteria; the administration of easements and 
long-term contracts; the process of allocating and focusing funding at 
State and local levels; and the process for private organizations and 
State agencies to apply to hold and enforce GRP easements.

DATES: Funds will be available from June 30, 2003 through September 30, 
2003.

ADDRESSES: Address all comments to Charles Whitmore, Acting Director, 
Conservation Operations Division, Natural Resources Conservation 
Service, P.O. Box 2890, Washington, DC 20013, (202) 720-1845, fax 202-
720-4265; Submit electronic comments to [email protected]; Attn: 
Grassland Reserve Program.

FOR FURTHER INFORMATION CONTACT: Leslie Deavers, Watersheds and 
Wetlands Division, Natural Resources Conservation Service, P.O. 2890, 
Washington, DC 20013, (202) 720-1067, fax (202) 720-2143, e-mail: 
[email protected].

SUPPLEMENTARY INFORMATION: Grasslands constitute the largest land cover 
on America's private lands. Privately-owned grasslands and shrublands 
cover more than 525 million acres in the United States. These lands 
contribute significantly to the economies of many regions, provide 
biodiversity of plant and animal populations, and play a key role in 
environmental quality. Specifically, grasslands and shrublands impact 
water quantity and quality and, when properly managed, can result in 
cleaner water supplies, healthy riparian areas, reduce potential for 
flooding, and control sediment loadings in streams and other water 
bodies. These lands are vital for the production of forage for domestic 
livestock, and provide forage and habitat for maintaining healthy 
wildlife populations. These lands also improve the aesthetic character 
of the landscape, provide scenic vistas and open space, provide 
recreational opportunities, and protect the soil from water and wind 
erosion.
    Large expanses of grassland acreage are annually threatened by 
conversion to other land uses such as cropland and urban development. 
Approximately 23 million acres of grassland and shrubland were 
converted to cropland between 1982 and 1997, and about six million 
acres were converted to urban and other uses (1997 NRI).

Background

    Section 2401 of the Farm Security and Rural Investment Act of 2002 
(Pub. L. 107-171) amended the Food Security Act of 1985 to authorize 
GRP (16 U.S.C. 3838n-3838q). The purpose of the program is to assist 
landowners with restoring and conserving grassland, rangeland, 
pastureland, and certain other lands. The statute provides that no more 
than two million acres of restored or improved grassland, rangeland, 
and pastureland can be enrolled in the program through FY 2007. The 
program offers landowners the option to grant an easement to the 
Secretary or enter into a long-term agreement to preserve and protect 
the ecological benefits of eligible land.
    The GRP statute requires the Secretary to consider grazing 
operations, biodiversity, and grassland under the greatest threat of 
conversion when evaluating and ranking applications. In FY 2003, CCC 
plans to use GRP to protect grazing lands from conversion and support 
efforts to maintain or enhance biodiversity.
    Although CCC is implementing the program nationwide in FY2003, it 
recognizes that with limited funding and large pool of eligible 
acreage, nationwide implementation may result in a large number of 
applications remaining unfunded. Therefore, the application selection 
criteria are critical to ensure only the highest priority areas are 
protected.

Definitions

    For the purposes of this notice, the following definitions apply.
    Conservation plan means a record of the decisions, and supporting 
information, for the conservation treatment of a unit of land or water. 
The conservation plan includes the schedule of operations, activities, 
and estimated expenditures, if needed to solve identified natural 
resource concerns.
    Eligible applicant means the landowner(s) for easement applications 
because only a landowner can transfer land rights. Easement 
applications will only be considered when the applicant can provide 
evidence of ownership. For annual rental agreements, eligible applicant 
means both landowners and operators who have evidence of control of the 
land for the agreement period.
    Eligible practices means any practice identified in the NRCS Field 
Office Technical Guide (FOTG) that enhances or restores native grasses, 
forbs, or shrubs as determined by the NRCS State Conservationist.
    Fair market value for easement acquisition means the amount 
determined through a real property appraisal that will be used to 
calculate the offer to the participant. Fair market value is the amount 
in cash, or on terms reasonably equivalent to cash, for which in all 
probability the property would have sold on the effective date of the 
appraisal, after a reasonable exposure time on the open competitive 
market, from a willing and reasonably knowledgeable seller to a willing 
and

[[Page 35361]]

reasonably knowledgeable buyer, with neither acting under any 
compulsion to buy or sell, giving due consideration to all available 
economic uses of the property at the time of the appraisal. For the 
purposes of GRP, the fair market value will be determined by an 
appraisal, or other method determined reasonable by CCC, less the 
grazing value. Grazing values will be determined by CCC based on 
appraised grazing values.
    Forb means any herbaceous plant other than those in the grass 
family.
    Grassland means land on which the vegetation is dominated by 
grasses, grass-like plants and/or forbs.
    Grazing values for rental agreements will be determined by CCC 
based on local prevailing grazing values.
    Rangeland means land on which the native vegetation (climax or 
natural potential) is predominantly grasses, grass-like plants, forbs, 
or shrubs suitable for grazing or browsing use. Rangelands include 
natural grassland, savannas, most deserts, tundra, alpine plant 
communities, coastal marshes, wet meadows and introduced plant 
communities managed like rangeland.
    Restored grassland means acreage restored from cropland, non-native 
grasses, or some other vegetative cover to native grass, forbs or 
shrubs. When native seed is not available, plants that provide similar 
functions and values for the intended use are permitted.
    Shrubland means a type of rangeland dominated by small woody 
perennial plants.

Program Requirements

    Effective upon the publication date of this notice, CCC announces 
the availability of $49,942,000 for GRP, from June 30, 2003 until 
September 30, 2003. Applications for participation will be accepted on 
a continual basis throughout this period at local USDA Service Centers 
from landowners of private land. NRCS State Conservationists will 
establish funding cut-off periods throughout FY 2003 to batch and 
select applications. These cut-off periods will be available in program 
outreach material provided by CCC. Once funding levels have been 
exhausted, eligible applicants will remain on file until additional 
funding becomes available or the applicant chooses to be removed from 
consideration.
    GRP contracts and easements prohibit: (1) The production of crops 
(other than hay), fruit trees, vineyards, or any other agricultural 
commodity that requires breaking the soil surface; and (2) any other 
activity that would disturb the surface of the land except for 
appropriate land management activities identified in the easement or 
agreement. For applicants who are interested in restoring grasslands, 
forbs, and shrublands, the program offers an opportunity to enroll in 
restoration agreements.
    The GRP statute provides that eligible land includes grasslands; 
land that contains forbs; shrubland, including improved rangeland and 
pastureland; or, land that is located in an area that has been 
historically dominated by grassland, forbs or shrubland when these 
lands have the potential to enhance plant and animal biodiversity. 
Other eligible land includes land that is incidental to the eligible 
land when it is considered necessary by CCC for the efficient 
administration of an agreement or easement.
    Applicants may submit applications for easements, rental 
agreements, and restoration agreements. Offers for participation must 
include no less than 40 contiguous acres, unless CCC determines a small 
parcel is appropriate to achieve the purposes of the program. When 
selecting offers of eligible lands, CCC shall emphasize support for 
grazing operations; plant and animal biodiversity; and other eligible 
land under the greatest threat of conversion. The conversion threat may 
include conversion to agriculture or non-agriculture uses.
    Pursuant to section 1604 of the Farm Security and Rural Investment 
Act of 2002, benefits under this part shall not be available to a 
person whose adjusted gross income exceeds $2.5 million, as determined 
under the standards set forth in 7 CFR part 1400.

Enrollment Options

    The GRP offers applicants multiple enrollment options. Landowners 
may submit applications for permanent easements or 30-year easements. 
Landowners and others who have general control of the acreage being 
offered may submit applications for 10-year, 15-year, 20-year, or 30-
year rental agreements. Each enrollment option permits: (1) Common 
grazing practices, including maintenance and necessary cultural 
practices, that are consistent with maintaining the viability of 
grassland, forb and shrub species common to the local area; (2) haying, 
mowing, or harvesting for seed production, subject to certain 
restrictions, such as restrictions during the nesting season of bird 
species that are in significant decline or those that are required to 
be protected under Federal or State law, as determined by NRCS or its 
designee; and (3) fire rehabilitation and the construction of fire 
breaks and fences. Participants will be required to follow a 
conservation plan, developed by NRCS or its designee, and the 
participant, to preserve the integrity of the grassland enrolled in the 
program.
    For easement offers, land is considered enrolled after CCC makes a 
tentative offer of acceptance, and the landowner signs an intent to 
continue in the program. For rental agreement offers, the land is 
considered enrolled after a GRP contract is approved by CCC.

Additional Requirements for Easements

    CCC shall use a standard easement deed that is available on-line at 
http://www.sc.egov.usda.gov.
    In addition to the requirements identified in the ``Program 
Requirements'' section, landowners who participate in an easement 
enrollment option agree to:
    (1) Provide written statement of consent to the easement signed by 
persons holding a security interest or any vested interest in the land;
    (2) Provide proof of clear title;
    (3) Comply with other terms of the easement; and
    (4) Provide access to NRCS or its representative for easement 
administration and monitoring activities on the property.

Funding Allocations

    The GRP statute requires that of the total amount of funds expended 
under the program to acquire easements and rental agreements, 60 
percent of the program funds are to be used for easements and 30-year 
agreements and 40 percent of the funds are to be used for 10-year, 15-
year, and 20-year rental agreements.
    CCC may divide the $49,942,000 into two equal pools. Fifty percent 
of the funds will be distributed to the USDA State office in proportion 
to the number of grazing operations, the acres of pasture and rangeland 
under the threat of conversion, and biodiversity considerations. The 
remaining funds may be held in a national reserve. This reserve will be 
distributed after program demand, expressed in terms of the number of 
applicants, acres, and estimated cost to enroll the land, and, 
ecological considerations, such as biodiversity and threat of grassland 
conversion, are known. If the State office is unable to use its 
allocation, CCC may redistribute funds to other States that can 
obligate the funds to eligible projects prior to September 30, 2003.

[[Page 35362]]

Application Process

    CCC will consider for funding under this notice applications 
received throughout FY 2003. USDA will widely distribute information on 
the availability of assistance through GRP, State, and National goals, 
and information needed to submit applications. Applicants must submit 
an application, Form AD-1153, Application for Long-Term Contracted 
Assistance, to CCC to be considered for participation. Program 
applications can be obtained from any local USDA Service Center or on 
the USDA website at http://www.sc.egov.usda.gov. Applications should be 
submitted to the office that administers the records for the area in 
which the land being offered for participation is located. Applications 
may be submitted by mail, fax, or electronically to a USDA Service 
Center. USDA will evaluate the application for eligibility and complete 
an application ranking process. Selection of individual applications 
will be made at the State level as described below.

Application Selection

    CCC is required by statute to emphasize support for grazing 
operations; plant and animal biodiversity; and grassland, land that 
contains forbs, and shrubland under the greatest threat of conversion. 
Selection criteria which incorporates these areas of emphasis, will be 
developed at the State level by the NRCS State Conservationist and the 
FSA State Executive Director, with advice from the State Technical 
Committee. Individual application selection will be made at the State 
level by the NRCS State Conservationist and the FSA State Executive 
Director. Selection criteria for each State will be made available to 
the public prior to signup upon request. Each State's application 
selection criteria will be available on the NRCS Web site at http://www.nrcs.usda.gov/farmbill and http://www.fsa.usda.gov/dafp/grp.
    Selection criteria will, at a minimum, consider the following 
national criteria: the threat of conversion from grass to cropland; the 
threat of conversion from grass to non-agriculture use; location 
significance; whether the land is part of an existing grazing 
operation; and whether the site serves as habitat that promotes and 
enhances plant and animal biodiversity, as determined by the NRCS State 
Conservationist, with advice from the State Technical Committee.
    State offices have the flexibility to determine state-specific 
criteria that emphasizes grasslands of state significance or locations 
of critical need based on the threat of conversion or biodiversity of 
plant or wildlife populations.

Payments

    For permanent easement acquisition, CCC will provide payment equal 
to the fair market value of the land, less the grazing value of the 
land encumbered by the easement. Market values will be determined using 
an appraisal process. In addition, CCC will provide all the 
administrative costs associated with recording the easement, including 
appraisal fees, survey costs, title insurance, and recording fees. For 
30-year easements, CCC will provide payment equal to 30 percent of the 
fair market value of the land, less the grazing value of the land for 
the period during which the land is encumbered by the easement. 
Easement payments may be provided, at the participant's request, in 
lump sum or annual payments (equal or unequal amounts) for no more than 
10 years.
    For long-term rental agreements, annual rental payments will be an 
amount not more than 75 percent of the grazing value of the land 
covered by the agreement for the life of the agreement, as determined 
by CCC. Payments will be disbursed on the agreement anniversary date of 
each Federal fiscal year.
    For restoration agreements, CCC will provide up to 90 percent of 
the restoration costs on lands that have never been cultivated, and up 
to 75 percent of the cost on restored grasslands. Restoration 
agreements can be entered into in conjunction with either easement 
projects or rental agreements. Participants will be paid upon 
certification of the completion of the approved practice(s) by NRCS or 
an approved third party. Participants may contribute to the application 
of a cost-share practice through in-kind contributions. Eligible in-
kind contributions include: personal labor; use of personal equipment; 
donated labor or materials; and use of on-hand or used materials that 
meet the requirements for the practice to be installed. The 
participant's share of the project may be provided by a public or 
private third party.
    Participants may assign the right to receive any payments described 
in this notice, in whole or in part, as provided in 7 CFR part 1404.
    Subject to 7 CFR part 1403, any payment under this notice or 
portion thereof due any person under this part shall be allowed without 
regard to questions of title under State law, and without regard to any 
claim or lien in favor of any creditor, except agencies of the United 
States Government.

Delegation of Easement Administration to Private Organizations

    The GRP statutory authority provides that the Secretary may permit 
a private conservation or land trust organization or a State agency to 
hold and enforce an easement provided that: (1) Granting permission 
will promote protection of eligible land; (2) the owner authorizes the 
private organization or State agency to hold and enforce the easement; 
and (3) the private organization or State agency agrees to assume the 
costs incurred in administering and enforcing the easement, including 
costs of restoration or rehabilitation of the land, as specified by the 
owner and the private organization. In addition, permission is 
contingent upon the Secretary having the right to conduct periodic 
inspections, and provide enforcement action, if the private 
organization is unable to effectively implement enforcement action. The 
provisions for implementing this authority will be addressed in a 
proposed rule to be published later this year. The GRP authority is 
different than the authority provided for the Farm and Ranchland 
Protection Program (FRPP). Under FRPP the Secretary has the authority 
to acquire an interest in property that is subject to a pending offer 
by another entity. In GRP, the Secretary is the holder of the easement 
and may delegate the easement administration responsibilities to a 
private organization.

Violations

    When the terms or conditions of an easement, rental agreement, or 
restoration agreement are violated, the easement or rental agreement 
will remain in force. For rental agreements or restoration agreements, 
CCC may require the participant to refund all or part of any payments 
received, with interest. For easement violations, USDA reserves the 
right to enter upon the easement area at any time to remedy 
deficiencies or easement violations, even under situations where a 
third party assumed administrative responsibility for the easement. 
Such entry may be made at the discretion of USDA when such actions are 
deemed necessary to protect important grassland areas.

Civil Rights

    CCC and USDA have collected civil rights data on farmers and 
ranchers who participate in conservation programs. Based on past 
participation, it is estimated that the funding being made

[[Page 35363]]

available with this notice will not negatively or disproportionately 
affect minorities, women, or persons with disabilities who are program 
beneficiaries or applicants for program benefits.

Environmental Evaluation

    On each farm or ranch, during the application evaluation process, 
the environmental effects of any proposed actions are evaluated on a 
case-by-case basis. That evaluation is used to determine whether 
further environmental analysis is required. Accordingly, neither an EA 
nor an EIS has been prepared for this notice.

Executive Order 12866

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), USDA 
must determine whether the regulatory action is ``significant'' and 
therefore subject to review by the Office of Management and Budget 
(OMB) and the requirements of the Executive Order. The Order defines 
``significant regulatory action'' as one that is likely to result in a 
rule that may:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or Tribal governments or 
communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    Pursuant to the terms of the Executive Order 12866, it has been 
determined that this Notice of Fund Availability is not a ``significant 
regulatory action''.

    Signed in Washington, DC, on June 1, 2003.
Bruce I. Knight,
Vice President, Commodity Credit Corporation, Chief, Natural Resources 
Conservation Service.
[FR Doc. 03-14977 Filed 6-12-03; 8:45 am]
BILLING CODE 3410-16-P