[Federal Register Volume 73, Number 60 (Thursday, March 27, 2008)]
[Notices]
[Pages 16246-16259]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-6177]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

Natural Resources Conservation Service


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 March 27, 2008.

FOR FURTHER INFORMATION CONTACT: Dwayne Howard, Branch Chief--
Stewardship Programs, 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 Fiscal Year 2008 sign-up, CSP-08-
01, for the Conservation Security Program (CSP). This sign-up will be 
open from April 18, 2008 through May 17, 2008, in selected 8-digit 
watersheds.

SUPPLEMENTARY INFORMATION: In the Interim Final Rule published March 
25, 2005 (7 CFR 15201), USDA's Natural Resources Conservation Service 
(NRCS) established the implementing regulations for 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.
    This document announces the Fiscal Year 2008 sign-up, CSP-08-01 
that will be open from April 18, 2008 through May 17, 2008, in selected 
8-digit watersheds, which can be viewed at: http://www.nrcs.usda.gov/programs/csp/CSP_2008/2008_CSP_WS.html.
    These watersheds were selected using the process set forth in the 
Interim Final Rule. 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. NRCS State Conservationists recommended a list of potential 
watersheds after gaining advice from the State Technical Committees. 
These 51 watersheds were announced by the Secretary of Agriculture 
September 25, 2006, and will be carried forward to sign-up CSP-08-01 as 
no sign-up was conducted in 2007. Producers who are participants in an 
existing CSP contract may not apply in this sign-up. Applicants can 
submit one application for this sign-up. Those applicants who are 
entities or joint operations must file a single application for the 
organization.
    Consistent with the authority to exercise administrative 
flexibility provided by 7 CFR 1469.2(b), the Chief of NRCS intends to 
deliver a technically enhanced, streamlined version of CSP during sign-
up CSP-08-01. CSP-08-01 will incorporate:
    (1) The nationwide piloting of improved national eligibility tools, 
including the Soil and Water Eligibility Tool, the Grazing Lands 
Eligibility Tool, and the Wildlife Habitat Eligibility Tool;
    (2) The availability of both benchmark and new enhancements at a 
uniform compensation rate over the contract length rather than 
declining rates for benchmark enhancements, but will provide no 
contract improvement modification opportunity for CSP-08-01 
participants;
    (3) No new practice payments; and
    (4) Priority to Tier II and Tier III applications requesting 5-year 
contracts.
    To be eligible for CSP, a majority of the agricultural operation 
must be within the limits of one of the selected watersheds. 
Applications which meet the minimum requirements, as set forth in the 
Interim Final Rule and listed below will be placed in enrollment 
categories for funding consideration. Categories will be funded in 
alphabetical order until funds are exhausted. If funds are not 
available to fund an entire category, then subcategories will be used 
to determine application funding order within a category. If a category 
or subcategory cannot be fully funded, applicants may be offered the FY 
2008 CSP contract payment on a prorated basis.
    Part of the CSP application process is conducted through applicant 
self-assessment of their conservation system. The applicant is 
responsible for providing all information that will or

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may be needed to properly evaluate the agricultural operation to 
establish benchmark conditions as well as assignment to tier and 
enrollment category. It is the responsibility of the applicant to 
request any needed clarification and/or additional information from 
NRCS in order to provide a complete and accurate application package.
    Producers should begin the application process by filling out a CSP 
Self-Assessment Workbook to determine if they meet the basic 
qualifications for CSP. Self-assessment workbooks are available in hard 
copy at USDA Service Centers within the watersheds, or can be 
downloaded from the NRCS Web site at: http://www.nrcs.usda.gov/programs/csp/CSP_2008/2008_pdfs/SAW2008.
    In addition to the self-assessment workbook, an applicant must also 
submit a benchmark inventory where the applicant documents their 
current conservation system, including the conservation practices and 
activities that are ongoing on their operation. This benchmark 
inventory is used by NRCS to measure an applicant's existing level of 
conservation activities in order to determine program eligibility, and 
serves as the basis for the conservation stewardship plan. Once the 
producer concludes that they meet the CSP requirements as outlined in 
the workbook, they should make an appointment for an applicant 
interview to discuss their application with the NRCS local staff to 
determine if they meet specific CSP eligibility requirements.
    In order to apply, applicants must submit the following by the end 
date of the sign-up period:
    (1) A completed self-assessment workbook.
    (2) A benchmark condition inventory and associated information that 
includes:
    a. A map, aerial photograph, or overlay that delineates the entire 
agricultural operation, including land use and acreage;
    b. A map of the applicant's land offered for CSP;
    c. A description of the applicant's production system(s) on the 
land offered;
    d. The existing conservation practices and resource concerns, 
problems, and opportunities on the land offered;
    e. The Applicant Offer Certification Worksheet that provides the 
producer-certification of the benchmark condition inventory accuracy, 
the availability of records to support the current conservation system, 
and the applicant's selected tier, enrollment category, and subcategory 
placement;
    f. A description of the significant resource concerns and other 
resource concerns that the applicant is willing to address through the 
adoption of new conservation practices and measures; and
    g. A list of enhancements that the applicant is currently applying, 
or may be willing to undertake as part of their proposed contract.
    (3) Evidence to the satisfaction of NRCS that the applicant has a 
minimum of 2 years of written records or documentation to support the 
current conservation system, including fertilizer, nutrient, and 
pesticide application schedules, cropping and tillage systems, 
irrigation water management, waste utilization, and grazing and pasture 
management, as applicable. Applicants will need to supply written 
records and documentation of their conservation system upon request by 
NRCS.
    (4) A completed NRCS-CPA-1200 available through the Web site, or 
any USDA Service Center.
    (5) Any other requirement specified in the sign-up notice or as 
requested by NRCS either prior to or during the applicant interview in 
order to support the application.
    The evaluation of an applicant's offered land will be based on the 
typical system information the applicant provides to NRCS in the self-
assessment workbook, the benchmark condition inventory, and during the 
applicant interview. Technical evaluations will consider conservation 
system averages represented in the typical system information to 
determine whether eligibility and treatment requirements are met. 
Additionally, the typical system information referred to above and 
provided during the sign-up period will be considered for tier, 
category, and subcategory placement.
    It is the responsibility of the applicant to ensure that the 
application includes all information needed to support the claimed 
benchmark condition as well as the tier, category, and subcategory 
placement. The applicant must certify on the Applicant Offer 
Certification Worksheet that all materials submitted to NRCS in a CSP 
application are true, correct, and represent the current conservation 
system being offered by the applicant. All applications may be subject 
to quality assurance procedures at any time during the application 
process or, in the event an application is approved, prior to or 
following contract award.
    If NRCS determines that an applicant intentionally misrepresented 
any fact affecting a CSP determination, the application will be 
cancelled immediately or the contract will be terminated in the case 
where a contract has been awarded, in accordance with the CSP 
regulation at 7 CFR Sec.  1469.36.
    Applicants are encouraged to attend preliminary workshops, which 
will be announced locally. There, the basic qualifications will be 
explained, and assistance provided as to completion of 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 eligible 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 eligible land uses on the entire 
agricultural operation. Additionally, the applicant must agree to 
address another significant resource concern applicable to their 
watershed to be started no later than two years prior to contract 
expiration, and completed by the end of the contract period. If the 
applicable resource concern is already addressed or does not pertain to 
the operation, then this requirement is satisfied.
    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 (FOTG) with a resource management system that 
meets the minimum level of treatment for all eligible land uses on the 
entire agricultural operation.

Delineation of the Agricultural Operation

    Delineating an agricultural operation for CSP 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

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delineate the agricultural operation to include all agricultural lands, 
and other lands such as farmstead, feedlots, and headquarters and 
incidental forestlands, under the control of the applicant and 
constituting a cohesive management unit that is operated with 
equipment, labor, accounting system, and management that are 
substantially separate from any other. In delineating the agricultural 
operation, Farm Service Agency (FSA) farm boundaries may be used. If 
FSA farm boundaries are used in the application, the entire farm area 
must be included within the delineation.

Minimum Eligibility Requirements

    To be eligible to participate in CSP, the applicants must meet the 
requirements for eligible applicants, the land offered for contract 
must meet the definition of eligible land, and the conservation system 
on the land offered must meet the conservation standards 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) Meet the Adjusted Gross Income requirements;
    (3) Show control of the land for the life of the proposed contract 
period. If the applicant is a tenant, the applicant must provide NRCS 
with written evidence or assurance of control from the landowner, but a 
lease is not required. 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;
    (4) 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;
    (5) Complete a benchmark condition inventory and associated 
information as described above for the entire agricultural operation or 
the portion being offered; and
    (6) Supply information, as required by NRCS, to determine 
eligibility and support the tier, category, and subcategory placement 
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 or limited resource 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 (including non-cropped 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 land 
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;
    (2) Public land, including land owned by a Federal, State, or local 
unit of government;
    (3) Private non-industrial forest land that exceeds 10 acres in 
size individually, or 10 percent in aggregate of the total offered 
acres; and
    (4) Any land that fails to meet the definition of eligible land.
    Ineligible land referred to above needs to be delineated as part of 
the agricultural operation. This land may not receive CSP payments, but 
the conservation work on this land may be used to determine if an 
applicant meets minimum level of treatment requirements, the 
applicant's category placement, 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--Minimum Level of 
Treatment

    The following conservation standards apply for Tier I and Tier II:
    (1) The minimum level of treatment on cropland for soil and water 
quality is considered achieved when the Soil and Water Eligibility Tool 
minimum thresholds are met for soil quality functions and water quality 
resource concerns.
    (2) The minimum level of treatment on pastureland and rangeland for 
soil and water quality is considered achieved when the CSP Grazing 
Lands Eligibility Tool minimum thresholds are met for soil quality and 
water quality resource concerns.

Conservation Standards for Tier III--Minimum Level of Treatment

    The minimum level of treatment for Tier III on any eligible landuse 
is met by achieving the required conservation standards specified for 
Tier I and Tier II requirements, plus meeting the quality criteria for 
the local NRCS FOTG for all existing resource concerns and the 
following specific criteria:
    (A) The minimum requirement for water quantity--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 index value of at least 50;
    (B) The minimum requirement for wildlife is considered achieved 
when the current level of treatment and management for the system 
results in an index value of at least 0.5 of the habitat potential. 
States will use the Wildlife Habitat Eligibility Tool to determine 
index values, with the exception of Alaska, Hawaii, Guam, and Puerto 
Rico. They will use either a general or species specific habitat 
assessment guide, as determined by the State Conservationist.

CSP Contract Payments and Limits

    CSP contract payments include one or more of the following 
components subject to the described limits:
    (1) 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).
    (2) An annual existing practice component for maintaining existing 
conservation practices. Existing practice payments will be calculated 
as a flat rate

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of 25 percent of the stewardship payment.
    (3) An annual enhancement component for exceptional conservation 
effort and activities that provide increased resource benefits beyond 
the quality criteria for a given resource concern or go beyond the 
minimum requirements of a conservation standard. During initial 
contract development, participants may contract to complete both 
enhancement activities that are part of the benchmark inventory and new 
enhancement activities. All enhancement activities will be paid at a 
uniform compensation rate over the contract length. The total of all 
enhancement payments in any one year will not exceed $13,750 for Tier 
I, $21,875 for Tier II, and $28,125 for Tier III annually.

Enhancement Components Available in This Sign-up

    Enhancement activities within the resource categories of water 
quality, soil quality, water management, grazing lands, wildlife, 
plants, air, and energy management will be available for sign-up CSP-
08-01:

An advance enhancement payment may be made available in the FY 2008 
sign-up. The advance enhancement payment may be available to contracts 
with the initial enhancement payment as determined in the benchmark 
inventory and interview. The advance enhancement payment would shift a 
portion of the contract's enhancement payment amount into the first-
year payment and deduct it from the following years' payments.

    Tier I contracts are for a five-year duration. Tier II and Tier III 
contracts are for a 5- to 10-year duration at the option of the 
participant. However, Tier II and Tier III applicants who select 5-year 
contracts will be given priority in category placement.
    Future contract improvement modifications such as advancing tiers, 
adding land, and adding enhancements will not be offered to CSP-08-01 
participants.
    Total annual maximum contract payment limits are $20,000 for Tier 
I, $35,000 for Tier II, and $45,000 for Tier III, including any advance 
enhancement payment.
    For more details on payment components, call or visit the local 
USDA Service Center, or view on the Web site at: http://www.nrcs.usda.gov/programs/csp/CSP_2008/2008_CSP_WS.html.

CSP Enrollment Categories and Subcategories

    An eligible application will be placed in an enrollment category as 
follows:
    (1) A single land use application will be placed in an enrollment 
category by applying the applicant's group level assignment, Tier, and 
applicant-selected contract length to the 2008 CSP Enrollment Category 
Matrix. An applicant's group level is assigned using the 2008 
Conservation System Criteria By Land Use Table and the associated 
Stewardship Practice and Activity Lists provided in this notice. An 
application will be assigned to the highest group level that all 
conservation management units being offered meet. Only unique practices 
or activities that have been installed and maintained for at least two 
years prior to the sign-up period, and applied in every location 
suitable or needed to address resource concerns will be counted to 
assign an applicant's group level.
    (2) A multiple land use application will be placed in the category 
of the land use with the largest number of offered acres. Category 
placement for a land use will follow the direction for single land use 
application category placement (see above).
    The CSP will fund the enrollment categories in alphabetical order. 
If an enrollment category cannot be completely funded, then 
subcategories will be funded in the following order:
    (1) Applicant is a limited resource producer, according to criteria 
specified in the USDA Limited Resource Farmers/Ranchers guidelines, or 
a Tribal member producing on Tribal or historically tribal lands;
    (2) Applicant is a participant in an on-going monitoring program 
that is sponsored by an organization or unit of government that 
analyzes the data and has authority to take action to achieve 
improvements;
    (3) Agricultural operation in a water conservation area or aquifer 
zone designated by a unit of government;
    (4) Agricultural operation in a drought area designated by a unit 
of government in any two of the past three years before the sign-up 
dates;
    (5) Agricultural operation in a water quality area with a priority 
on pesticides designated by a unit of government;
    (6) Agricultural operation in a water quality area with a priority 
on nutrients designated by a unit of government;
    (7) Agricultural operation in a water quality area with a priority 
on sediment designated by a unit of government;
    (8) Agricultural operation in a non-attainment area for air quality 
or other local or regionally designated air quality zones designated by 
a unit of government;
    (9) Agricultural operation in an area selected for the conservation 
of imperiled plants and animals, including threatened and endangered 
species, as designated by a unit of government; or
    (10) All other applications.
    Designated by a unit of government'' means officially assigned a 
priority by a Federal, State, or local unit of government prior to this 
notice. Neither an agency, nor a committee or board who provides advice 
or makes decisions on programs delivered by the agency are considered 
units of government. If a category or subcategory cannot be fully 
funded, applicants may be offered the FY 2008 CSP contract payment on a 
prorated basis.

    Signed in Washington, DC, on March 19, 2008.
Arlen Lancaster,
Vice President, Commodity Credit Corporation, Chief, Natural Resources 
Conservation Service.
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[FR Doc. E8-6177 Filed 3-26-08; 8:45 am]
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