**Process for Developing and Obligating EQIP and WHIP Contracts**

**Notifying Applicant**

1.  Notify applicant that his/her EQIP application has been selected for
    funding if not done already and verify that they are still
    interested in continuing with the contract. If they want to cancel
    their application, a note should be made in the case file and the
    application should be marked "Cancelled" in the Manage Application
    screen in ProTracts. The preapproval letter template to notify
    applicants their application has been selected for funding was
    attached to Illinois bulletin 300-7-8, or the letter can be produced
    from Manage Letters in ProTracts.

**Notify FSA of Applicants Approved (Temporary)**

2.  FSA has reset all eligibility flags to "Not Filed" and all 2007 FSA
    subsidiary eligibility is being verified by FSA. The NRCS field
    office must provide FSA with a list of applicants approved for
    funding and FSA will give these applicants a priority processing of
    eligibility. For entities that have been selected for funding the
    field office must include the members of the entity as well as the
    name of the entity on the list provided to FSA. Until FSA updates
    the 2007 eligibility information in the subsidiary database, the
    application cannot be changed to an Approved status in ProTracts.
    For more information see Illinois bulletin 300-7-6.

3.  For all applications that have not been verified by FSA the
    following message will be received in ProTracts, "Error on
    participant \<name\>: Subsidiary records indicate invalid
    participant."

4.  Field offices will be notified when this step is no longer needed
    and FSA has completed all eligibility verification.

**Complete Application data in ProTracts**

5.  Complete all application data entry fields in ProTracts.
    Applications entered for the first cutoff were entered before the
    new application fields were added in ProTracts, and will require
    additional data entry. For more information, see the guidance
    distributed with Illinois bulletin 300-7-5.

**Complete for each Participant**

6.  Verify the participant(s) on the contract and their eligibility for
    EQIP.

    a.  ![](media/image1.jpeg){width="2.3125in"
        height="0.4166666666666667in"}Verify with the participants who
        will be on the contract and what shares they will receive. For
        an application with two or more participants, they must identify
        one participant to serve as the contract decision maker. The
        decision maker will serve as the point of contact for
        correspondence relating to the contract. The decision maker must
        be identified in ProTracts on the Applicant Info/Participant
        Information Screen. The decision maker will print first on the
        NRCS-CPA-1202 contract.

    b.  Indicate in ProTracts for each participant if they are required
        to sign a modification or can sign for a payment:

        i.  ![](media/image2.jpeg){width="1.9479166666666667in"
            height="0.7395833333333334in"}**Signature Required for
            Modifications** - Check the box if this applicant must sign
            for modifications. When a modification is done,
            **[ALL]{.underline}** participants on a contract that have a
            check in the box will have a signature block on the
            NRCS-CPA-1156 and will be [required]{.underline} to sign the
            NRCS-CPA-1156 modification form.

        ii. **Signature Acceptable for Payments** - Check the box if
            this applicant can sign for payments. **[Any
            one]{.underline}** of the participants on a contract that
            has a check in the "signature acceptable" box can sign for
            payments on the CCC-1245.

    c.  Applicants that rent land must have the landowner on the
        contract for contracts with structural or vegetative practices.
        The landowner's percent shares can be zero. EQIP Manual part
        515.101B states, "The landowner must sign all contract documents
        if either of the following apply:

-   The participant cannot provide evidence that he/she will have
    control of the land, according to 440-CPM, Paragraph 515.62(c).

-   A structural or vegetative practice will be installed (Refer to
    440-CPM, Paragraph 515.91(e).

> A letter of authorization from the landowner may be substituted when
> circumstances prevent landowner signature on the contract."
>
> For WHIP applications, a written concurrence by the landowner must be
> received for the implementation of structural practices on rented or
> leased land.

a.  Ensure a copy of the deed or lease is obtained for evidence that the
    applicant has control of the land.

b.  Verify "Other Eligibility" in "Application Info" is checked "Yes"
    for all participants with a share greater than 0%. (See Image 1) The
    field office should have verified the program eligibility factors
    before the application was submitted for funding consideration. For
    EQIP see EQIP manual 515.51 and 515.52 for producer and land
    eligibility. For WHIP, see WHIP manual 517.22 Eligibility.

> Image 1 - "Other Eligibility" Designation in Applicant Info
>
> ![](media/image3.jpeg){width="6.491666666666666in"
> height="1.2777777777777777in"}

**Verify Applicant and Participant Eligibility**

Note: Eligibility can be verified after FSA enters subsidiary data as a
result of NRCS requesting the information to be entered into the
subsidiary database.

7.  Verify AGI, HEL/WC and Payment Limitation is "Y" for all
    participants with a share greater than 0%. If there is one or more
    "N" (See Image 2), the following needs to be completed:

    -   Update Eligibility -- Click on box to the left of the
        participant name for one individual. Then click on Update
        Eligibility (See Image 3). This will update ProTracts with the
        current information in FSA's subsidiary database. If there
        continues to be an "N", then click on View Eligibility.

    -   View Eligibility -- In view eligibility, look at the details of
        why the category is an "N" and work with FSA to get the
        subsidiary database updated. Start by verifying that the correct
        forms have been filed with FSA. If not, an AD-1026, CCC-526, or
        CCC-501A must be filed with FSA to start the process.

> *[Notes]{.underline}*:

-   Payment limitations is an eligibility requirement for only EQIP.
    Applications for WHIP will not have payment limitations listed.

-   Field offices can continue with the steps if FSA has not entered the
    subsidiary data for eligibility. However, the subsidiary data must
    be entered before the Area can change the ProTracts application
    status to "Approve" in step 13.

> Image 2 - Confirm Eligibility in Applicant Info
>
> ![](media/image4.jpeg){width="6.497222222222222in"
> height="3.035416666666667in"}
>
> Image 3 - Update Eligibility in Applicant Info
>
> ![](media/image3.jpeg){width="6.491666666666666in"
> height="1.2777777777777777in"}

**Using the Toolkit Contract Wizard & ProTracts**

8.  Develop the conservation plan and plan map in Toolkit, if not done
    already. The plan map should include the property location (field
    boundaries) and conservation practices in the application/contract.
    The plan map will become part of the contract as described on page 1
    of the NRCS-CPA-1202 contract.

9.  Develop contract containing all practice items using the Toolkit
    contract wizard. The appropriate cost list must be used in the
    Toolkit contract wizard. For EQIP, the 2007 statewide EQIP cost list
    dated 10-06 and distributed with bulletin IL300-7-1 should be used.
    For WHIP, the 2007 WHIP statewide cost list dated 11-06 and
    distributed with bulletin 300-7-7 should be used.

> *[Notes]{.underline}*:

-   Field offices should complete the first 2 steps of the Toolkit
    wizard and click on Save and close out of the Toolkit contract
    wizard. Do not continue in the Toolkit wizard and select
    participants or print an AD-1155 (or NRCS-CPA-1155 available with
    version SP-3) from Toolkit. The NRCS-CPA-1155 should
    [only]{.underline} be printed from ProTracts.

-   If Residue and Tillage Management is in the contract, practice code
    329 must be used in Toolkit conservation plan and contract wizard.
    Plans with 329A must be changed to 329 before using the contract
    wizard. 329A is no longer a valid practice code. 329A is not in the
    2007 cost list and cannot be used in ProTracts.

-   The Toolkit contract items uploaded into ProTracts must be the same
    practices selected in the ProTracts ranking tool. If the practices
    do not match, the application will not pass the ProTracts check
    rules and the inconsistency will have to be corrected. Either the
    ProTracts ranking will have to be re-ranked and the practices
    changed or the Toolkit contract and uploaded data will have to be
    corrected and reloaded.

-   EQIP allows management practices such as Nutrient Management and
    Residue and Tillage Management to be paid for multiple years as an
    incentive to implement a management technique. Even though a
    contract participant will be implementing and receiving payment for
    a management practices for multiple years on the same land, it
    should not be planned for multiple years on the same land in the
    Toolkit practice scheduler. Management practices should be planned
    in the Toolkit practice scheduler for the first year and the
    multiple contract items created in the contract wizard. For further
    guidance on developing contract item for management practices see
    Appendix A.

-   Practice items can be planned in different Toolkit customer folders
    and separate contracts developed using the Toolkit contract wizard.
    ProTracts will allow multiple Toolkit contracts to be uploaded into
    ProTracts. "Reorder Items" in ProTracts to ensure each practice has
    a unique contract item number (CIN).

10. Upload Toolkit contract wizard data into ProTracts by clicking on
    "Upload Toolkit Contract" in ProTracts. The application status must
    be "Eligible" or "Preapproved" and all application data must be
    entered in order for "Upload Toolkit Contract" to be active.

> ![](media/image5.png){width="6.495138888888889in"
> height="0.2972222222222222in"}
>
> Select a contract from the list. The list displays the contracts on
> which the decision maker is an associated customer in Toolkit. If the
> contract is located under another participant, a user can select the
> other participant from the participant drop-down list and click Search
> to refresh the list.
>
> *[Notes]{.underline}*:

-   Ensure participant(s) identified on the General tab of the Toolkit
    customer folder and the participant on the ProTracts application are
    the same, in order to upload a Toolkit contract into ProTracts.

-   Only contracts with a "Free" status can be uploaded.

11. Currently, Illinois does not have FY2007 technical assistance (TA)
    funds in ProTracts therefore TA practice items cannot be entered
    into EQIP contracts. Offices must omit TA from EQIP contracts, and
    at a later date modify the contract to obligate TA dollars, if funds
    become available. All TA requests must be submitted through the Area
    to the State Office.

**Complete Contract Development in ProTracts**

12. Prepare ProTracts applications to be approved after it is uploaded
    in ProTracts. The following must be completed before the Area ASTC
    can commit funds to an EQIP application and change the application
    status to Approved:

    a.  Verify all practice items are entered with the correct fiscal
        year, amounts, etc.

        i.  Ensure practices are planned for the correct fiscal year.
            Beginning in fiscal year 2007, contracts will be paid based
            on a payment schedule process.

> *[Note]{.underline}*: For details of the payment schedule process see
> Illinois bulletin 300-7-8 and the NRCS-CPA-1202 Appendix 5B.

ii. Toolkit works on calendar year and ProTracts works on fiscal year.
    The planned year of a practice item in ProTracts might have to be
    changed to reflect the fiscal year the practice will be implemented.
    For example, a terrace planned in Toolkit for 11/2007 will appear in
    ProTracts as 2007 planned year, and must be changed to 2008 for
    fiscal year 2008.

```{=html}
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```
b.  Enter "Expiration Date" on ProTracts application screen. ProTracts
    will use the date entered and complete the following statement on
    the NRCS-CPA-1202 contract, "This agreement is effective on the date
    signed by the Natural Resources Conservation Service approving
    official and extends through \<\<expiration date\>\>.

    i.  EQIP contracts may expire no earlier than 12 months after the
        last practice is completed, are not to exceed 10 years, and no
        practices can be scheduled in the 10^th^ year of the contract.
        The expiration date entered into ProTracts should be September
        30^th^ one year after the last practice is installed. For
        example, the last practice to be installed is terraces in April
        of 2008, then the expiration should be 9/30/2009.

    ii. General WHIP contracts may expire no earlier than 12 month after
        the last practice is completed. The total contract length must
        be at least 5 but not more than 10 years. No practices can be
        scheduled in the final year of the contract. The contract
        expiration date entered into ProTracts should be September
        30^th^ of the year the contract should expire.

    iii. Essential Habitat WHIP contracts must remain in place a minimum
         of 15 years. No practices can be scheduled in the final year of
         the contract. The contract expiration date entered into
         ProTracts should be September 30^th^ of the year the contract
         should expire.

c.  **Run "Check Rules" for each application in ProTracts**. Fix all
    problems the rule checker might find and rerun "Check Rules" until
    no errors are found. Once all errors are corrected, the status of
    all practice items will change from "Draft" to "Planned". An
    application cannot be changed to an Approved status until all
    practice items are "Planned".

> *[Note]{.underline}*: Practices that are selected during the
> application ranking process must be the same practices that are
> uploaded from Toolkit as contract items to pass check rules. If the
> practices do not match up between the application ranking and the
> contract items, the check rules will not pass, an error message will
> be received, and either the ranking or contract items must be
> corrected. To re-enter the ProTracts ranking, the application status
> must be changed back to "Eligible" to activate the "Ranking" button.
> Should the ranking score change as a result of changing the
> application ranking, evaluate if the new ranking score would still be
> at or greater than the ranking point cutoff for the batching period in
> which the application was selected for funding. If not, the
> application will have to compete in a subsequent batching period.

d.  Enter vendor information in ProTracts for the decision maker using a
    completed SF-1199a (direct deposit form) provided by the decision
    maker. Only the decision maker vendor information is needed to
    change application status to "Approved". If vendor information for a
    participant is has a "rejected" vendor code, the application status
    cannot be changed to "Approved". Eventually, all participants
    receiving a payment share will need to complete a SF-1199a and the
    information added into ProTracts before a payment can be made.

> To enter vendor information, select Applicant Info in the application
> screen. To enter vendor data, click on box to the left of the
> participant name to active the "Vendor Info" button. Click on "Vendor
> Info" and use the New Vendor procedure 1 below. If the New Vendor
> button is inactive and cannot be selected, then use procedure 2.

1.  "New Vendor" - Click on New Vendor and enter direct deposit data

2.  "Add Vendor Address" - Click on the participant's name and highlight
    the new yellow. This will activate the "Add Vendor Address" button.
    Click on the "Add Vendor Address" button and enter the direct
    deposit data.

> Individuals requesting a hardship waiver must complete form
> NRCS-FNM-60. A copy of this form is located on eForms. The eForms
> website is
> <https://formsadmin.sc.egov.usda.gov/eformsadmin/adminmainservlet>

**Area Review**

13. Area will review contracts after they have been entered into
    ProTracts and prior to being changed to an "Approved" status.

**Approve the Contract in ProTracts**

14. The Area ASTC or designee will change the application status from
    "Preapproved" to "Approved" in the ProTracts Manage Application
    screen. This will commit funds for the application and the
    electronic signature of the person changing the status will appear
    in Block 6 of the NRCS-CPA-1202 contract (See Image 4). Area will
    notify field offices when funds have been committed and the
    contracts can be signed by the applicants.

> *[Notes]{.underline}*:

-   If the Area cannot approve an application due to shortage of fund,
    they should contact Gina Gericke for EQIP and Ruth Book for WHIP
    with the fund code, county, and the amount of money that needs to be
    allocated.

-   When the status is changed to "Approved", the eligibility and
    payment limitation database is updated and checked. If HEL/WC, AGI
    or payment limitation eligibility criteria are not met, application
    approval will be blocked. If application approval is blocked, the
    Area should contact the field office and have them work with FSA to
    update the database.

> Image 4 - NRCS-CPA-1202, NRCS Electronic Approval
>
> ![](media/image6.png){width="0.83125in"
> height="0.12777777777777777in"}

**Obtain Participant(s) Signature**

15. Field office obtains signature and date from all contract
    participants on the following:

    a.  NRCS-CPA-1202 (Must show an Approval electronic signature in
        block 6)

    b.  NRCS-CPA-1202 CPC Appendix dated 10/2006

    c.  NRCS-CPA-1155 from ProTracts

> The NRCS-CPA-1202 contract will include the contract participants,
> contract obligation and NRCS approving officials. The NRCS-CPA-1155
> conservation plan will contain contract details such as practice items
> and components.
>
> *Notes*:

-   Ensure the contract participant has read the NRCS-CPA-1202 contract,
    NRCS-CPA-1155 conservation plan, and Appendix.

-   At time of application, a notarized Power of Attorney form and/or
    evidence of authority for entities should have been obtained, if
    needed. If this was not done, then the proper documentation must be
    obtained at time of contract signing. These forms must be kept on
    file in the contract folder. The Power of Attorney (NRCS-CPA-09) is
    located on eForms. Acceptable evidence of authority include
    corporate charters, bylaws, trust agreements, and articles of
    partnership which identify who the entity members are and authorize
    someone to act on behalf of the entity to sign applications,
    contracts, and payments. Signature authorities are explained in the
    Conservation Program Contracting Manual, part 512.21.

-   The contract should be signed as the entity and the person with the
    authority to sign for the entity. Example: "Smith Farms by John
    Smith".

16. Field office provides all contract participants with copies of all
    contract documents.

17. After contract participant signatures are obtained, the field office
    must check the box in the Application Signature(s) column of the
    Manage Application screen in ProTracts. Then click on "Save". (See
    Image 5)

> Image 5 - Manage Applications, Applicant Signatures
>
> ![](media/image8.png){width="6.490277777777778in"
> height="1.0006944444444446in"}

18. Field office notifies the Area ASTC or designee when steps 15-17 are
    complete and the contract can be signed and obligated.

19. Area ASTC or designee uses "Sign Contract" on the Manage Application
    screen in ProTracts to sign and obligate money for the contract.
    During this step of signing the contract, eligibility and payment
    limitation database is checked by ProTracts again. The participants
    must pass the AGI, HEL/WC and Payment Limitations otherwise the
    contract cannot be signed and obligated. After this step, the
    contract is obligated and practice installation can begin. ProTracts
    will enter the electronic signature of the individual who obligate
    the contract in block 6 of the NRCS-CPA-1202. (See Image 6)

> Image 6 - NRCS-CPA-1202, NRCS Contract Obligation
>
> ![](media/image9.png){width="6.43125in" height="1.1041666666666667in"}

*Notes*:

After the application is signed and obligated by the Area, it becomes a
contract and will no longer show up as an application in ProTracts.
Field offices should use "Manage Contracts" to search and view contracts
after being signed and obligated by the Area.

Contracts over \$150,000 in FA must be signed by the Regional Assistant
Chief and will [not]{.underline} be signed by the Area ASTC.

Work cannot start on any practice in a contract until the contract is
signed by the Area ASTC or Regional Assistant Chief. If an applicant
wants to start work prior to their contract being obligated with money,
a written request for a waiver, signed by the applicant must be sent to
Bill Gradle for approval.

The NRCS-CPA-1202 contract will be frozen when it is signed and
obligated. The NRCS-CPA-1202 will not change if modifications are
approved in ProTracts. Modification will show on the NRCS-CPA-1156
modification form. Changes in participants and participant shares will
be done through a NRCS-CPA-152 transfer form.

Appendix A

Creating Multiple Contract Items from One Land Unit

1.  Select land unit and choose first component

> ![](media/image10.png){width="6.492361111111111in"
> height="2.3493055555555555in"}

2.  From CIN drop down options choose the next CIN

> ![](media/image11.png){width="2.375in" height="1.03125in"}

3.  Select component again for the second year, note the land unit has
    multiple CIN.

> ![](media/image12.png){width="6.498611111111111in"
> height="2.354861111111111in"}

4.  Repeat for the third year. From CIN drop down options choose the
    next number

> ![](media/image13.png){width="2.3645833333333335in"
> height="1.28125in"}

5.  Select the component again for the last of the 3 years

> ![](media/image14.png){width="6.497222222222222in"
> height="2.4763888888888888in"}

6.  Land Unit 2 now has CIN 1, 2, 3 all for 2007, the year will be
    changed in ProTracts

7.  In ProTracts change the year to properly reflect the years the
    management practice will be implemented.

> ![](media/image15.png){width="5.510416666666667in"
> height="1.0729166666666667in"}