[Federal Register Volume 69, Number 118 (Monday, June 21, 2004)]
[Notices]
[Pages 34533-34541]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-13540]



  Federal Register / Vol. 69, No. 118 / Monday, June 21, 2004 / 
Notices  

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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

Natural Resources Conservation Service

RIN 0578-AA36


Conservation Security Program

AGENCY: Natural Resources Conservation Service and Commodity Credit 
Corporation, USDA.

ACTION: Notice.

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DATES: The administrative actions announced in the notice are effective 
on June 21, 2004

FOR FURTHER INFORMATION CONTACT: Craig Derickson, Conservation Security 
Program Manager, Financial Assistance Programs Division, NRCS, P.O. Box 
2890, Washington, DC 20013-2890, telephone: (202) 720-1845; fax: (202) 
720-4265. Submit e-mail to: [email protected], Attention: 
Conservation Security Program.
SUMMARY: This document announces the first sign-up for the Conservation 
Security Program. This sign-up for the Conservation Security Program 
(CSP) will be open from July 6, 2004, through July 30, 2004, in 
selected 8-digit watersheds in Arkansas, Georgia, Idaho, Illinois, 
Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Montana, 
Nebraska, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, 
Pennsylvania, South Carolina, Texas, Washington, and Wisconsin.

SUPPLEMENTARY INFORMATION: In an Interim Final Rule published elsewhere 
in this issue of the Federal Register, USDA's Natural Resources 
Conservation Service (NRCS) established the Conservation Security 
Program (CSP). The CSP is a voluntary program administered by NRCS 
using authorities and funds of the Commodity Credit Corporation, that 
provides financial and technical assistance to producers who advance 
the conservation and improvement of soil, water, air, energy, plant and 
animal life, and other conservation purposes on Tribal and private 
working lands. On May 4, 2004, NRCS published a notice in the Federal 
Register (69 FR 24560), announcing the process NRCS will use in 
determining priority watershed, and the details of the enrollment 
categories that will be used in the FY 2004 sign-up.
    This document announces that the first sign-up for the CSP will be 
open from July 6 through July 30, 2004 in selected 8-digit watersheds 
in Arkansas, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, 
Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Ohio, 
Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Washington, and 
Wisconsin, which can be viewed at http://www.nrcs.usda.gov/programs/csp/watersheds04.html.
    These watersheds were selected using the process set forth in the 
May 4, 2004, notice to the Federal Register. In addition to other data 
sources, this process used National Resources Inventory data to assess 
land use, agricultural input intensity, and historic conservation 
stewardship in watersheds nationwide. A list of candidate watersheds 
was generated. State Conservationists were queried and watersheds were 
excluded based on the assessment of locations where staff capacity was 
inadequate, soils were not digitized, and required technical tools, 
specifically the Revised Uniform Soil Loss Equation Version 2.0 
(RUSLE2) and Toolkit would not be fully operational for a 2004 sign-up.
    Watersheds were also evaluated from a national perspective in 
consultation with State Conservationists regarding regional resource 
issues that would enhance CSP's environmental goals. Preference was 
given to two watersheds, the Lemhi and Hondo watersheds, where 
improving resources would assist the recovery of threatened and 
endangered species or add measurably to critical resource recovery 
efforts and extensive watershed level measures were in place.
    To be eligible for CSP, a majority of the agricultural operation 
must be within the limits of the watershed. Applications which meet the 
minimum requirements as set forth in the final rule (listed below) will 
be placed in enrollment categories for funding consideration. 
Categories will be funded in order from A through H until funds are 
exhausted. If funds are not available to fund an entire category, then 
the applications will fall into subcategories and funded in order until 
funds are exhausted.
    Applicants can submit only one application for this sign-up. 
Producers should begin the application process by filling out a self 
assessment to determine if they meet the basic qualification for CSP. 
Self assessment workbooks are available in hard copy at USDA Service 
Centers within the watersheds, and electronically for download or an 
interactive Web site linked from www.nrcs.usda.gov/programs/csp. The 
self assessment workbook includes a benchmark inventory where the 
applicant documents the conservation practices and activities that are 
ongoing on their operation. This benchmark inventory serves as the 
basis for the stewardship plan.
    In order to apply, applicants must submit:
    1. A completed self assessment workbook, including the benchmark 
inventory;
    2. Documentation for calendar years 2002 and 2003 to show the 
stewardship completed including fertilizer, nutrient, and pesticide 
application schedules, tillage, and grazing schedules.
    3. Completed CCC-1200 available through the self assessment online 
guide, Web site, and any USDA Service Center.
    Applicants are encouraged to attend preliminary workshops, which 
will be announced locally, the basic qualifications will be explained, 
and assistance provided to complete the self assessment workbook and 
benchmark inventory.
    CSP is offered at three tiers of participation. Some payments are 
adjusted based on the tier, and some payments are tier-neutral. See 
payment information below.

Minimum Tier Eligibility and Contract Requirements

    The following are the minimum tier eligibility and contract 
requirements:
    CSP Tier I--the benchmark condition inventory demonstrates to the 
satisfaction of NRCS that the applicant has addressed the nationally 
significant resource concerns of water quality and soil quality to the 
minimum level of treatment for any landuse on part of the agricultural 
operation. Only the acreage meeting such requirements is eligible for 
stewardship and existing practice payments in CSP.
    CSP Tier II--the benchmark condition inventory demonstrates to the 
satisfaction of NRCS that the applicant has addressed the nationally 
significant resource concerns of water quality and soil quality to the 
minimum level of treatment for all land uses on the entire agricultural 
operation. Additionally, the applicant must agree to add another 
significant resource concern of their choice to be completed by the end 
of the contract period.
    CSP Tier III--the benchmark condition inventory demonstrates to the 
satisfaction of NRCS that the applicant has addressed all of the 
existing resource concerns listed in Section III of the NRCS Field 
Office Technical Guide with a resource management system that meets the 
minimum level of treatment on the entire agricultural operation, 
including other land.

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Delineation of the Agriculture Operation

    Delineating an agriculture operation for the Conservation Security 
Program is an important part in determining the Tier of the contract, 
stewardship payments, and the required level of conservation treatment 
needed for participation. The applicant will delineate the agriculture 
operation to include all agricultural lands, and other lands such as 
farmstead, feedlots, and headquarters and incidental forestlands, under 
the control of the participant and constituting a cohesive management 
unit that is operated with equipment, labor, accounting system, and 
management that is substantially separate from any other. In 
delineating the agriculture operation, Farm Service Agency farm 
boundaries may be used. If farm boundaries are used in the application, 
the entire farm area must be included within the delineation. An 
applicant may offer one farm or aggregate farms into one agriculture 
operation.

Minimum Eligibility Requirements

    To be eligible to participate in CSP, the applicants must meet the 
requirements for eligible applicants, the land offered under contract 
must meet the definition of eligible land, and the application must 
meet the conservation standards for that land as described below.

Eligible Applicants

    To be eligible to participate, an applicant must:
    (1) Be in compliance with the highly erodible land and wetland 
conservation provisions;
    (2) Tenants must show control of the land for the life of the 
proposed contract period by providing NRCS with the written evidence or 
assurance of control from the landowner. In the case of land allotted 
by the Bureau of Indian Affairs (BIA) or tribal land, there is 
considered to be sufficient assurance of control.
    (3) Share in risk of producing any crop or livestock and be 
entitled to share in the crop or livestock available for marketing from 
the agriculture operation landlords and owners are ineligible to submit 
an application for exclusively cash rented agriculture operations.
    (4) Complete a benchmark condition inventory for the entire 
agricultural operation or the portion being enrolled in accordance with 
Sec.  1469.7(a) in the Interim Final Rule;
    (5) Supply information, as required by NRCS, to determine 
eligibility for the program; including but not limited to, information 
related to eligibility criteria in this sign-up announcement; and 
information to verify the applicant's status as a beginning farmer or 
rancher if applicable.

Eligible Land

    To be eligible for enrollment in CSP, land must be:
    (1) Private agricultural land;
    (2) Private non-industrial forested land that is an incidental part 
of the agriculture operation;
    (3) Agricultural land that is Tribal, allotted, or Indian trust 
land;
    (4) Other incidental parcels, as determined by NRCS, which may 
include, but are not limited to, land within the bounds of working 
agricultural land or small adjacent areas (such as center pivot 
corners, linear practices, field borders, turn rows, intermingled small 
wet areas or riparian areas); or
    (5) Other land on which NRCS determines that conservation treatment 
will contribute to an improvement in an identified natural resource 
concern, including areas outside the boundary of the agricultural 
operation or enrolled parcel such as farmsteads, ranch sites, 
barnyards, feedlots, equipment storage areas, material handling 
facilities, and other such developed areas. Other land must be treated 
in Tier III contracts.

Land Not Eligible for Enrollment in CSP

    The following lands are ineligible for enrollment in CSP:
    (1) Land enrolled in the Conservation Reserve Program, the Wetlands 
Reserve Program, or the Grassland Reserve Program; and
    (2) Public land including land owned by a Federal, State, or Local 
unit of government.
    Land referred to above may not receive CSP payments, but the 
conservation work on this land may be used to determine if an applicant 
meets eligibility criteria for the agricultural operation and may be 
described in the Conservation Stewardship Plan.

Land Not Eligible for Any Payment Component in CSP

    Land that is used for crop production after May 13, 2002, that had 
not been planted, considered to be planted, or devoted to crop 
production, as determined by NRCS, for at least 4 of the 6 years 
preceding May 13, 2002, is not eligible for any payment component in 
CSP.

Conservation Standards for Tier I and Tier II

    The following conservation standards apply for Tier I and Tier II:
    1. The minimum level of treatment on cropland:
    (i) The minimum level of treatment for soil quality on cropland is 
considered achieved when the Soil Conditioning Index is positive;
    (ii) The minimum level of treatment for water quality on cropland 
is considered achieved if the benchmark inventory indicates that the 
current level of treatment meets or exceeds the quality criteria 
according to the NRCS technical guides for these specific resource 
considerations: nutrients, pesticides, salinity and sediment for 
surface waters and nutrients, pesticides, and salinity for groundwater, 
if applicable.
    2. The minimum level of treatment on pastureland and rangelands for 
Tier I and Tier II is vegetation and animal management, which enhances 
the soil resource by following a grazing management plan that provides 
a forage animal balance, proper livestock distribution, and timing of 
use and managing livestock access to water courses.

Conservation Standards for Tier III

    The minimum level of treatment for Tier III on any landuse is 
meeting the quality criteria for the local NRCS FOTG for all existing 
resource concerns with these exceptions:
    (A) The minimum requirement for soil quality on cropland is 
considered achieved when the Soil Conditioning Index value is positive.
    (B) The minimum requirement for water quality--irrigation water 
management on cropland or pastureland is considered achieved when the 
current level of treatment and management for the system results in a 
water use efficiency value of at least 50%.
    (C) The minimum requirement for wildlife is considered achieved 
when the current level of treatment and management for the system 
results in a value of at least 0.5 on the NRCS wildlife habitat index.

CSP Contract Payments and Limits

    CSP contract payments include one or more of the following 
components subject to the described limits:
     An annual per acre stewardship component for the benchmark 
conservation treatment. This component is calculated separately for 
each land use by multiplying the number of acres times the tier factor 
(0.05 for Tier I, 0.10 for Tier II, and 0.15 for Tier III) times the 
stewardship payment rate established for the watershed times the tier 
reduction factor (0.25 for Tier I and 0.50 for Tier II, and 0.75 for 
Tier III).

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     An annual existing practice component for maintaining 
existing conservation practices. Existing practice payments will be 
calculated as a flat rate of 25% of the stewardship payment.
     A new practice component for additional practices on the 
watershed specific list. New practice payments will be made at not more 
than a 50% cost-share rate and are limited to $10,000 cumulative total 
for the contract.
     An annual enhancement component for exceptional 
conservation effort and additional conservation practices or activities 
that provide increased resource benefits beyond the prescribed level. 
Enhancement payments will not exceed $10,000 for Tier I, $17,500 for 
Tier II, and $22,500 for Tier III annually.
     An advance enhancement payment, not-to-exceed $10,000, 
available in the FY 2004 sign-up. The advance enhancement payment is 
available to contracts with an initial enhancement payment as 
determined in the benchmark inventory and interview. The advance 
enhancement payment would shift that annual enhancement payment amount 
into the first year payment and deduct it from the following year's 
payments. This is in addition to the enhancement payment limit.
    Tier I contracts are for a 5 year duration, Tier II and Tier III 
contracts are for a 5 to 10 year duration at the option of the 
participant.
    The combined stewardship, existing practice, and enhancement 
payments cannot exceed the following contract limits:
     Tier I--15% of the stewardship rate times the enrolled 
acres
     Tier II--25% of the stewardship rate times the enrolled 
acres
     Tier III--40% of the stewardship rate times the enrolled 
acres
    Total annual maximum payments limits are $20,000 for Tier I, 
$35,000 for Tier II, and $45,000 for Tier III.
    The payment components are tailored for the selected watersheds. 
For more details, call or visit the local USDA Service Center, or view 
on the Web at http://www.nrcs.usda.gov/programs/csp/watersheds04.html.

Enhancement Components Available in This Sign-up

    The following are the enhancement components available this sign-
up:
    1. Additional conservation treatment above the quality criteria for 
soil quality, nutrient management, pest management, irrigation water 
management, prescribed grazing, and energy management; and
    2. Addressing locally identified conservation needs shown on the 
watershed specific enhancement lists.
    The payment components are tailored for the selected watersheds. 
For more details, call or visit the local USDA Service Center, or view 
on the Web at http://www.nrcs.usda.gov/programs/csp/watersheds04.html.
    The Administration budget projects that about 3000 contracts will 
be available under this sign-up, with roughly 45 percent of those in 
Tier I, 45 percent in Tier II, and 10 percent in Tier III.

CSP Enrollment Categories and Subcategories

    Technical adjustments to the enrollment categories were made based 
on field testing of the criteria published in a previous notice. This 
notice provides updated enrollment category criteria.
    The CSP will fund the enrollment categories A through H in 
alphabetical order (Attachment 1). If an enrollment category 
cannot be completely funded, then subcategories will be funded in the 
following order:
    1. Applicant is a limited resource producer;
    2. Applicant is a participant in an on-going monitoring program;
    3. Agricultural operation in a designated water conservation area 
or aquifer zone;
    4. Agricultural operation in a designated drought area;
    5. Agricultural operation in a designated water quality area, such 
as designated watersheds with Total Maximum Daily Loading (TMDL) limits 
with a priority on pesticides;
    6. Agricultural operation in a designated water quality area, such 
as designated watersheds with TMDL limits with a priority on nutrients;
    7. Agricultural operation in a designated water quality area, such 
as designated watersheds with TMDL limits with a priority on sediment;
    8. Agricultural operation in a designated non-attainment area for 
air quality or other local or regionally designated air quality zones;
    9. Agricultural operation in a designated area for threatened and 
endangered species habitat creation and protection;
    10. Participating in an ongoing watersheds plan or conservation 
project;
    11. Agricultural operation is intermingled with public land where 
there is no way to distinguish the public from the private land for 
management purposes; and
    12. Other applications.

(Designated means ``officially assigned a priority by a Federal, State, 
or local unit of government'' prior to this notice.)
    If a subcategory cannot be fully funded, applicants will be offered 
the FY 2004 CSP contract payment on a prorated basis.

    Signed in Washington, DC, on June 9, 2004.
Bruce I. Knight,
Vice President, Commodity Credit Corporation, Chief, Natural Resources 
Conservation Service.
BILLING CODE 3410-16-P

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[FR Doc. 04-13540 Filed 6-18-04; 8:45 am]
BILLING CODE 3410-16-C