This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

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REGISTER issue of each week.

Rules and Regulations Federal Register

27165 

Vol. 75, No. 93 

Friday, May 14, 2010 

DEPARTMENT OF AGRICULTURE 

Commodity Credit Corporation 

7 CFR Part 1410 

RIN 0560–AH80 

Conservation Reserve Program; 

Transition Incentives Program 

AGENCY: Commodity Credit Corporation, 

USDA. 

ACTION: Interim rule. 

SUMMARY: The Commodity Credit 

Corporation (CCC) is amending the 

Conservation Reserve Program (CRP) 

regulations to add provisions for 

incentives to retired or retiring owners 

or operators to transition land enrolled 

in CRP to a beginning or socially 

disadvantaged farmer or rancher for 

production. The Transition Incentives 

Program involves new and mandatory 

provisions for CRP authorized by the 

Food, Conservation, and Energy Act of 

2008 (2008 Farm Bill). Retired or 

retiring owners or operators of land 

enrolled in an expiring CRP contract 

who sell or lease their expiring CRP 

land to a beginning or socially 

disadvantaged farmer or rancher for the 

purpose of returning some or all of the 

land into production using sustainable 

grazing or crop production methods in 

compliance with the required 

conservation plan will, if otherwise 

approved for the Transition Incentives 

Program, receive CRP payments for an 

additional 2 years after the contract 

expires if the new or socially 

disadvantaged farmer is not a family 

member. 

DATES: Effective Date: This rule is 

effective May 14, 2010. 

Comment Date: We will consider 

comments that we receive by July 13, 

2010. 

ADDRESSES: We invite you to submit 

comments on this interim rule. In your 

comment, include the volume, date, and 

page number of this issue of the Federal 

Register. You may submit comments by 

any of the following methods: 

• E–Mail: cepdmail@wdc.usda.gov. 

• Fax: 202–720–4619. 

• Mail: Director, Conservation and 

Environmental Programs Division 

(CEPD), USDA Farm Service Agency 

(FSA) CEPD, STOP 0513, 1400 

Independence Ave., SW., Washington, 

DC 20250–0513. 

• Hand Delivery or Courier: Deliver 

comments to the above address. 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

online instructions for submitting 

comments. 

Comments may be inspected at the 

mail address listed above between 8 

a.m. and 4:30 p.m., Monday through 

Friday, except holidays. A copy of this 

interim rule is available through the 

FSA home page at http:// 

www.fsa.usda.gov/. 

FOR FURTHER INFORMATION CONTACT: 

Beverly J. Preston, CRP Program 

Manager, telephone 202–720–9563 or 

e-mail: cepdmail@wdc.usda.gov. 

Persons with disabilities who require 

alternative means for communication 

(Braille, large print, audiotape, etc.) 

should contact the USDA Target Center 

at 202–720–2600 (voice and TDD). 

SUPPLEMENTARY INFORMATION: 

Background 

CRP was first authorized in the Food 

Security Act of 1985 (16 U.S.C. 3830– 

3835a, commonly known as the 1985 

Farm Bill). This rule amends the CRP 

regulations in 7 CFR part 1410 to 

implement provisions for the Transition 

Incentives Program as specified in 

section 2111 of the 2008 Farm Bill (Pub. 

L. 110–246). The 2008 Farm Bill 

requires other changes to the CRP 

program, several of which were 

published in a previous interim rule (74 

FR 30907–30912) and others that will be 

implemented separately. This interim 

rule amends the CRP regulations to add 

the provisions needed to implement the 

Transition Incentives Program, 

including definitions and eligibility 

requirements. 

Section 2111 of the 2008 Farm Bill 

amends Section 1235 of the 1985 Farm 

Bill (16 U.S.C. 3835) to authorize CRP 

contract modifications— 

to facilitate a transition of land subject to the 

contract from a retired or retiring owner or 

operator to a beginning farmer or rancher or 

a socially disadvantaged farmer or rancher 

for the purpose of returning some or all of the 

land into production using sustainable 

grazing or crop production methods. 

Section 2111 further authorizes that 

‘‘in the case of a contract modification 

approved in order to facilitate the 

transfer’’ that the Secretary of 

Agriculture will: 

• Allow conservation and land 

improvements to be made; 

• Allow the certification process 

under the Organic Foods Production Act 

of 1990 (7 U.S.C. 6501) to begin; 

• Require the retired or retiring owner 

to sell or lease the land subject to the 

contract for production purposes; 

• Require the beginning or socially 

disadvantaged farmer or rancher to 

develop and implement a conservation 

plan; 

• Provide the beginning or socially 

disadvantaged farmer or rancher the 

opportunity to enroll in the 

Conservation Stewardship Program or 

the Environmental Quality Incentives 

Program; 

• Provide the beginning or socially 

disadvantaged farmer or rancher with 

the option to reenroll any applicable 

partial field conservation practice that is 

eligible for enrollment under the 

continuous signup requirement of CRP, 

if part of an approved conservation 

plan; and 

• Continue to make annual payments 

to the retired or retiring owner or 

operator for not more than an additional 

2 years after the termination of the 

contract, if the beginning or socially 

disadvantaged farmer or rancher is not 

a family member. 

Section 2701 of the 2008 Farm Bill, by 

amendment to Section 1241 of the 1985 

Farm Bill, requires that to the maximum 

extent practicable, $25 million in CCC 

funds be used for the Transition 

Incentives Program for fiscal years 2009 

to 2012. 

The purpose of CRP is to costeffectively assist producers in 

conserving and improving soil, water, 

wildlife, and other natural resources by 

converting environmentally-sensitive 

acreage generally devoted to the 

production of agricultural commodities 

to a long-term vegetative cover and to 

address issues raised by State, regional, 

and national conservation initiatives. 

Participants enroll land in CRP 

contracts for 10 to 15 years in exchange 

for annual rental payments and 


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27166 Federal Register / Vol. 75, No. 93 / Friday, May 14, 2010 / Rules and Regulations 

financial assistance to install certain 

conservation practices and to maintain 

approved vegetative, tree, or other 

appropriate covers. The purpose and 

scope of CRP are not changing with this 

rule. 

This rule will allow retired or retiring 

CRP participants with land enrolled in 

an expiring CRP contract to amend their 

CRP contracts during the last year of the 

CRP contract to be permitted to 

transition that land to beginning or 

socially disadvantaged farmers or 

ranchers for the purpose of returning 

some or all of the land into production 

using sustainable grazing or crop 

production methods (also referred to as 

‘‘sustainable farming’’). The rule 

provides a general definition of what 

would, for these purposes, be 

considered to be sustainable farming. 

Also, there is an allowance for incentive 

payments for CRP contracts that ended 

after the 2008 Farm Bill became law but 

before the publication of this rule. As an 

incentive, such CRP participants may be 

eligible for 2 additional years of CRP 

payments provided the retired or 

retiring owner or operator is not a 

family member of the beginning or 

socially disadvantaged farmer or 

rancher. 

The 2008 Farm Bill defines ‘‘family 

member’’ as it is defined in 7 U.S.C. 

1308–1 (part of the 1985 Farm Bill), 

which defines it as an individual to 

whom another family member in the 

farming operation is related as a lineal 

ancestor, lineal descendent, sibling, 

spouse, or otherwise by marriage. This 

definition, which FSA and CCC use in 

many other programs, has been clarified 

in 7 CFR part 718 to include a specific 

list of individuals who are considered 

family members. To provide clarity and 

consistency with other FSA and CCC 

programs, the definition from 7 CFR 

part 718 will be used. Therefore, a 

‘‘family member’’ will mean an 

individual to whom a person is related 

as spouse, lineal ancestor, lineal 

descendant, or sibling, including a: 

(1) Great grandparent; 

(2) Grandparent; 

(3) Parent; 

(4) Child, including a legally adopted 

child; 

(5) Grandchild; 

(6) Great grandchildren; 

(7) Sibling of the family member in 

the farming operation; and 

(8) Spouse of a person listed in items 

1 through 7. 

Contracts on over 15 million acres of 

land enrolled in CRP are scheduled to 

expire between 2010 and October 2012. 

The goal of the CRP Transition 

Incentives Program is to assist beginning 

or socially disadvantaged farmers and 

ranchers get a start in farming. Any 

beginning or socially disadvantaged 

farmer or rancher is eligible to 

participate. 

The program provides an opportunity 

for beginning or socially disadvantaged 

farmers or ranchers to prepare the land 

enrolled in an expiring CRP contract for 

production using sustainable grazing or 

crop production methods up to one year 

before they farm the land. This program 

allows such farmers or ranchers to make 

conservation and land improvements or 

begin the process for organic 

certification during the last year of the 

expiring CRP contract. The program 

provides a financial incentive to 

increase the likelihood that land 

enrolled in an expiring CRP contract 

will be returned to production in a 

sustainable manner by providing 

additional CRP payments to retired or 

retiring owners and operators who sell 

or lease land for those purposes. This 

program, by offering an incentive to 

retired or retiring owners or operators of 

land enrolled in an expiring CRP 

contract, provides a significant 

opportunity to promote sustainable and 

organic farming. 

Definitions 

This rule amends section 1410.2, 

‘‘Definitions,’’ to add definitions for 

‘‘beginning farmer or rancher,’’ ‘‘retired 

or retiring owner or operator,’’ and 

‘‘socially disadvantaged farmer or 

rancher.’’ 

The 2008 Farm Bill gives the term 

‘‘beginning farmer or rancher’’ for 

conservation programs the meaning 

given under the section 343(a)(8) of the 

Consolidated Farm Rural Development 

Act (7 U.S.C. 1991(a)(8)), which in turn 

gives the Secretary discretion to define 

the term. That term has been defined in 

farm loan programs. This rule uses the 

same definition except for necessary 

modifications to reflect the different 

program involved. Under the adopted 

definition, the individual or entity must, 

as determined by CCC: 

(1) Have operated a farm or ranch for 

10 years or less, 

(2) Have substantial involvement in 

the operation of the farm or ranch, and 

(3) If an entity, be an entity where 50 

percent of the members or stockholders 

of such entity meet the previous two 

requirements. 

Also, Section 2111 of the 2008 Farm 

Bill uses the term ‘‘retired or retiring 

owner or operator,’’ but does not define 

it. This rule defines a retired or retiring 

owner or operator as a CRP participant 

who has stopped farming or expects to 

stop farming within five years of 

contract modification. 

Generally, the incentive will apply 

only to contracts expiring after the 

publication of this rule. There is an 

exception, however. The exception is 

for CRP contracts that expired after the 

effective date of the 2008 Farm Bill 

(June 18, 2008), but before the 

publication of this rule if transfer to the 

eligible new holder of the property will 

take place only after the approval of the 

modification, and if the contract 

modification becomes effective by 

September 30, 2010. The requirement 

that the transfer follow the modification 

reflects that this is an incentive 

program. The deadline is to reflect that 

the exception is intended to address 

only those situations where the 

finalization of a transfer may have been 

awaiting the publication of a rule. 

The 2008 Farm Bill specifies that this 

program use the definition of ‘‘socially 

disadvantaged farmer and rancher’’ 

given under 7 U.S.C. 2279(e)(2), which 

is the definition used for other FSA and 

CCC farm programs. Accordingly and 

consistent with other FSA and CCC farm 

program regulations through which the 

2008 Farm Bill has been implemented, 

socially-disadvantaged persons are 

defined in this rule to be any person of 

the following groups of persons: African 

Americans, American Indians, Alaskan 

Natives, Hispanics, Asian Americans 

and Pacific Islanders. 

Contract Modifications 

This rule amends the regulations in 

§ 1410.33, ‘‘Contract Modifications,’’ to 

provide that retired or retiring owners 

and operators can be permitted to 

modify their CRP contract if it is due to 

expire within one year to facilitate the 

transition of the land enrolled in that 

expiring CRP contract to a beginning or 

socially disadvantaged farmer or 

rancher for the purpose of returning 

some or all of the land into production 

using sustainable grazing or crop 

production methods. The limited 

exception for contracts that expired 

prior to this rule has been mentioned. 

This allows maximum benefit from the 

2008 Farm Bill for CRP contracts that 

were in existence at the time the 2008 

Farm Bill was enacted. Generally, the 

timing of the modification will mean 

that the CRP contract may be modified 

so that the transition activities may be 

initiated during the last year of the 

contract without violating the CRP 

contract. For example, activities to 

improve the land or to obtain organic 

certification beginning up to one year 

before the expiration date of the CRP 

contract will be allowed under such a 

modified contract. 


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Federal Register / Vol. 75, No. 93 / Friday, May 14, 2010 / Rules and Regulations 27167 

Eligibility Requirements 

This rule adds a new section 

§ 1410.64, ‘‘Transition Incentives 

Program,’’ to specify eligibility 

provisions for the incentive. There are 

separate eligibility requirements for 

retired or retiring owners and operators 

with land enrolled in an expiring, or in 

limited cases, expired CRP contract and 

for beginning or socially disadvantaged 

farmers and ranchers. 

In the case of unexpired contracts, the 

retired or retiring CRP owner or operator 

with land enrolled in an expiring CRP 

contract must allow the beginning or 

socially disadvantaged farmer or 

rancher to install conservation practices 

consistent with the conservation plan 

on the land during the last year of the 

contract, or begin the organic 

certification process under the Organic 

Foods Production Act of 1990 (7 U.S.C. 

6501–6523). (The Agriculture Marketing 

Service (AMS) implements that 

certification.) 

Both the retired or retiring owner or 

operator and the beginning or socially 

disadvantaged farmer or rancher must 

jointly apply for the Transition 

Incentives Program. To be eligible for 

the Transition Incentives Program, the 

beginning or socially disadvantaged 

farmer or rancher must obtain and 

implement a conservation plan and 

certify that they are buying or leasing 

(under a qualifying lease) the expiring 

CRP land to return some or all of it into 

production using sustainable grazing or 

crop production methods. 

For the transfer, the retiring or retired 

owner or operator may either: 

(1) Sell, 

(2) Have a contract to sell, or 

(3) Lease under a nonrevocable longterm lease (at least 5 years), with or 

without an option to purchase the land. 

Benefits to Participants 

Retired or retiring owners or operators 

are eligible to receive 2 years of 

additional CRP rental payments as an 

incentive to participate in the Transition 

Incentives Program if the land is not 

sold or leased to a family member. 

The Transition Incentives Program 

does not provide payments to beginning 

or socially disadvantaged farmers or 

ranchers for participation in this 

program. It provides indirect benefit to 

those farmers by paying eligible retired 

or retiring owners or operators to sell or 

lease eligible land to the beginning or 

socially disadvantaged farmer or 

rancher. 

The beginning or sociallydisadvantaged farmer or rancher will be 

provided the opportunity to enroll 

otherwise eligible land obtained through 

this program in various USDA 

conservation programs, including CRP, 

beginning the day after the CRP contract 

expires or after the transfer, whichever 

is later. This assumes that the land is 

still eligible and that the beginning or 

socially disadvantaged farmer has a 

sufficient long-term interest in the 

program to sustain a 10 year contract. 

This rule changes the CRP regulations to 

provide an exception to make the new 

or disadvantaged farmer otherwise 

eligible to reenroll the land in CRP as 

required by the 2008 Farm Bill. This is 

a direct benefit for the beginning or 

socially disadvantaged farmer or 

rancher, because as currently specified 

in § 1410.5, ‘‘Eligible Persons,’’ an owner 

or operator must have owned or 

operated the land for at least 12 months 

before it can be enrolled in CRP. This 

rule adds a paragraph to § 1410.5 to 

specify that the 12 month ownership 

provisions do not apply to eligible 

Transition Incentives Program 

participants. In addition, the beginning 

or socially-disadvantaged farmer or 

rancher will be able to enroll all or part 

of the transitioned land in the 

Conservation Stewardship Program 

(CSP) or the Environmental Quality 

Incentives Program (EQIP) authorized 

under the regulations in 7 CFR parts 

1470 and 1466, respectively. Again, this 

only applies if the conditions for those 

programs are otherwise met. 

Program Operation 

CCC will implement this program 

through FSA county offices. CCC and 

FSA will not establish a formal program 

to match retired or retiring CRP 

landowners and operators with 

beginning or socially disadvantaged 

farmers or ranchers. However, FSA 

county offices will publicize the 

program to local FSA and CCC 

customers, and coordinate with Farm 

Loan Program personnel to provide 

program outreach to potentially eligible 

farmers and ranchers. Similarly, FSA 

will coordinate with the Natural 

Resources Conservation Service (NRCS) 

to help eligible beginning and socially 

disadvantaged farmers and ranchers 

obtain the required conservation plan 

and apply for enrollment in other 

conservation programs, and coordinate 

with AMS to provide outreach about the 

organic certification process. 

One new form will be created for this 

program, which we anticipate will be a 

one-page agreement that both parties 

will sign and file with the FSA county 

office. 

Notice and Comment 

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. 

CCC is authorized by section 2904 of the 

2008 Farm Bill to issue an interim rule 

effective on publication with an 

opportunity for comment. 

Executive Order 12866 

This rule has been determined to be 

significant and was reviewed by the 

Office of Management and Budget 

(OMB) under Executive Order 12866. 

The cost benefit analysis is summarized 

below and is available from the contact 

information listed above. 

Summary of Economic Impacts 

The 2008 Farm Bill authorizes $25 

million for incentive payments to 

retired or retiring owners and operators 

with expiring CRP contracts, who sell or 

long-term lease their former CRP land to 

beginning or socially disadvantaged 

farmers or ranchers that are not family 

members. The retired or retiring owner 

or operator will receive CRP rental 

payments for 2 additional years beyond 

contract expiration to encourage 

participation. Targeted farmers or 

ranchers who purchase or lease the 

former CRP land are required to obtain 

a conservation plan and follow 

sustainable livestock and crop 

production practices. 

CRP Transitions Incentives Program 

participants are allowed to begin to 

make conservation and land 

improvements in the final CRP contract 

year. They also will be eligible for 

enrollment in three USDA conservation 

programs and may begin the organic 

certification process during the CRP 

contract’s final year. Members of the 

retired or retiring owner or operator’s 

family may participate in the CRP 

Transitions Incentives Program in order 

to obtain eligibility for enrollment in 

certain conservation programs, but the 2 

additional years of rental payments 

would not be paid. 

If fully subscribed, an estimated 400 

to 1,800 beginning or socially 

disadvantaged farmers or ranchers 

would benefit. With an average CRP 

rental payment of $39 per acre to $49 

per acre for 2 years, obligations are 

estimated at between $5.1 million and 

$17.1 million. These cost estimates 

reflect the total obligation for fiscal 

years 2010–2012; payments would be 

made over a number of years, depending 

on when contracts expire. Due to the 

limited amount of eligible farmable 

quality CRP acreage likely to be offered 

for sale or lease, and the location of 

beginning and socially disadvantaged 

farmers relative to the location of 

eligible CRP lands, participation and 

costs are expected to be closer to the 


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27168 Federal Register / Vol. 75, No. 93 / Friday, May 14, 2010 / Rules and Regulations 

lower end of this range than the high 

end. 

Regulatory Flexibility Act 

This rule is not subject to the 

Regulatory Flexibility Act since CCC is 

not required to publish a notice of 

proposed rulemaking for this rule. CCC 

is authorized by section 2904 of the 

2008 Farm Bill to issue an interim rule 

effective on publication with an 

opportunity for comment. 

Environmental Evaluation 

The environmental impacts of this 

rule have been considered in a manner 

consistent with the provisions of the 

National Environmental Policy Act 

(NEPA, 42 U.S.C. 4321–4347), the 

regulations of the Council on 

Environmental Quality (40 CFR parts 

1500–1508), and FSA regulations for 

compliance with NEPA (7 CFR part 

799). The revisions to CRP regulations 

in 7 CFR part 1410 to implement certain 

changes related to the transition 

incentive for beginning and socially 

disadvantaged farmers and ranchers as 

provided by the 2008 Farm Bill that are 

identified in this interim rule are 

authorized to expend $25 million for 

this incentives program to the extent 

practicable. Furthermore, this program 

only applies to land that will be 

committed to sustainable, conservationfriendly practices and applies to land 

transitions out of the CRP that otherwise 

would be uncontrolled. These 

incentives focus on changing ownership 

of eligible lands, but are not intended to 

require or facilitate current land practice 

or land management changes. In 

response to public comments received 

during the scoping period for the 

Supplemental Environmental Impact 

Statement on CRP (74 FR 45606–45607), 

and the limited potential for significant 

environmental or socioeconomic 

impacts identified in the Cost Benefit 

Analysis, FSA has determined that the 

implementation of these changes related 

to the transition incentives for 

beginning and socially disadvantaged 

farmers and ranchers would not have 

any significant individual or cumulative 

impacts on the quality of the human 

environment. Therefore, no 

environmental impact statement will be 

prepared on this regulatory action. 

Executive Order 12372 

This program is not subject to 

Executive Order 12372, which requires 

consultation with State and local 

officials. See the notice related to 7 CFR 

part 3015, subpart V, published in the 

Federal Register on June 24, 1983 (48 

FR 29115). 

Executive Order 12988 

This interim rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. This rule does not 

preempt State or local laws, regulations, 

or policies unless they present an 

irreconcilable conflict with this rule. 

Before any judicial action may be 

brought concerning the provisions of 

this rule the administrative appeal 

provisions of 7 CFR parts 11, 614, and 

780 must be exhausted. 

Executive Order 13132 

The policies contained in this rule do 

not have any substantial direct effect on 

States, on the relationship between the 

national government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government. Nor does this rule 

impose substantial direct compliance 

costs on State and local governments. 

Therefore, consultation with the States 

is not required. 

Executive Order 13175 

The policies contained in this rule do 

not impose substantial unreimbursed 

direct compliance costs on Indian tribal 

governments or have tribal implications 

that preempt tribal law. 

Unfunded Mandates 

This rule contains no Federal 

mandates under the regulatory 

provisions of Title II of the Unfunded 

Mandate Reform Act of 1995 (UMRA, 

Pub. L. 104–4) for State, local, or tribal 

governments, or the private sector. In 

addition, CCC is not required to publish 

a notice of proposed rulemaking for this 

rule. Therefore, this rule is not subject 

to the requirements of sections 202 and 

205 of UMRA. 

Federal Assistance Programs 

The title and number of the Federal 

assistance program in the Catalog of 

Federal Domestic Assistance to which 

this rule applies is the Conservation 

Reserve Program—10.069. 

Paperwork Reduction Act 

The regulations in this rule are 

exempt from the requirements of the 

Paperwork Reduction Act (44 U.S.C. 

Chapter 35), as specified in section 2904 

of the 2008 Farm Bill, which provides 

that these regulations be promulgated 

and the programs administered without 

regard to the Paperwork Reduction Act. 

E-Government Act Compliance 

CCC is committed to complying with 

the E-Government Act, to promote the 

use of the Internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

List of Subjects in 7 CFR Part 1410 

Administrative practice and 

procedure, Agriculture, Environmental 

protection, Grant programs— 

Agriculture, Natural resources, 

Reporting and recordkeeping 

requirements, Soil conservation, 

Technical assistance, Water resources, 

Wildlife. 

■ For the reasons discussed above, this 

rule amends 7 CFR part 1410 as follows: 

PART 1410—CONSERVATION 

RESERVE PROGRAM 

■ 1. The authority citation for 7 CFR 

part 1410 continues to read as follows: 

Authority: 15 U.S.C. 714b and 714c; 16 

U.S.C. 3801–3847. 

■ 2. In § 1410.2 add definitions in 

paragraph (b), in alphabetical order, for 

the terms: ‘‘Beginning farmer or 

rancher,’’ ‘‘Retired or retiring owner or 

operator,’’ and ‘‘Socially disadvantaged 

farmer or rancher,’’ as set forth below. 

§ 1410.2 Definitions. 

* * * * * 

(b) * * * 

Beginning farmer or rancher means, 

as determined by CCC, a person or 

entity who: 

(1) Has not been a farm or ranch 

operator or owner for more than 10 

years, 

(2) Materially and substantially 

participates in the operation of the farm 

or ranch involved in the CRP contract 

modification, and 

(3) If an entity, is an entity in which 

50 percent of the members or 

stockholders of the entity meet the first 

two requirements of this definition. 

* * * * * 

Retired or retiring owner or operator 

means an owner or operator of land 

enrolled in a CRP contract who has 

ended active labor in farming operations 

as a producer of agricultural crops or 

expects to do so within 5 years of the 

CRP contract modification. 

* * * * * 

Socially disadvantaged farmer or 

rancher means a farmer or rancher who 

is a member of a socially disadvantaged 

group whose members have been 

subjected to racial or ethnic prejudice 

because of their identity as members of 

a group without regard to their 

individual qualities. Gender is not 

included as a covered group. Socially 

disadvantaged groups include the 

following and no others unless 

approved in writing by the Deputy 

Administrator: 


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Federal Register / Vol. 75, No. 93 / Friday, May 14, 2010 / Rules and Regulations 27169 

(1) American Indians or Alaskan 

Natives, 

(2) Asians or Asian-Americans, 

(3) Blacks or African Americans, 

(4) Hispanics, and 

(5) Native Hawaiians or other Pacific 

Islanders. 

* * * * * 

■ 3. In § 1410.5, add paragraph (c) to 

read as set forth below: 

§ 1410.5 Eligible persons. 

* * * * * 

(c) The provisions of this section do 

not apply to beginning or socially 

disadvantaged farmers or ranchers who 

are eligible participants in the 

Transition Incentives Program as 

specified in § 1410.64. 

■ 4. Amend § 1410.33 as follows: 

■ a. In paragraph (a)(3), remove the 

word ‘‘or’’, 

■ b. Redesignate current paragraph 

(a)(4) as (a)(5), and 

■ c. Add a new paragraph (a)(4) to read 

as set forth below. 

§ 1410.33 Contract modifications. 

(a) * * * 

(4) During the final year of the CRP 

contract’s term, facilitate a transition of 

land subject to the contract from a 

retired or retiring owner or operator to 

a beginning or socially-disadvantaged 

farmer or rancher for the purpose of 

returning some or all of the land into 

production using sustainable grazing or 

crop production methods; provided that 

for this purpose ‘‘sustainable grazing 

and crop production methods’’ will be 

considered, as determined by the 

Deputy Administrator, to be methods 

that would be designed as part of an 

overall plan defined on an ecosystem 

level to be useful in the creation of 

integrated systems of plant and animal 

production practices that have a site 

specific application that would: 

(i) Meet human needs for food and 

fiber; 

(ii) Enhance the environment and the 

natural resource base; 

(iii) Use nonrenewable resources 

efficiently; and 

(iv) Sustain the economic viability of 

farming operation; or 

* * * * * 

■ 5. In § 1410.62, add paragraph (g) as 

follows: 

§ 1410.62 Miscellaneous. 

* * * * * 

(g) As determined by CCC, incentives 

may be authorized to foster 

opportunities for beginning and socially 

disadvantaged farmers and ranchers and 

to enhance long-term environmental 

goals. 

■ 6. Add § 1410.64 to read as set forth 

below: 

§ 1410.64 Transition Incentives Program. 

(a) To be eligible for the Transition 

Incentives Program, the retired or 

retiring owner or operator must, except 

as specified in paragraph (f) of this 

section: 

(1) Have land that is expiring under 

an existing CRP contract with a 50 

percent or greater interest as provided at 

§ 1410.42 (c); 

(2) Sell or lease (under a qualifying 

nonrevocable lease of at least 5 years in 

length) expiring CRP land to a beginning 

or socially disadvantaged farmer or 

rancher who will return some or all of 

the land to production using sustainable 

grazing or crop production methods; 

(3) Modify the CRP contract in 

accordance with § 1410.33(a)(4); 

(4) Allow the beginning or socially 

disadvantaged farmer or rancher to 

begin the organic certification process 

under the Organic Foods Production Act 

of 1990 during the last year of the 

contract, if requested by that farmer or 

rancher; 

(5) Allow the beginning or socially 

disadvantaged farmer or rancher to 

develop a conservation plan for the 

land; and 

(6) Allow the beginning or socially 

disadvantaged farmer or rancher to 

install conservation practices and 

initiate land improvements that are 

consistent with the conservation plan 

during the last year of the contract. 

(b) To be eligible for participation in 

the Transition Incentives Program, the 

beginning or socially disadvantaged 

farmers or ranchers must: 

(1) Certify that they meet the 

definition in § 1410.2 of either a 

beginning farmer or rancher or a socially 

disadvantaged farmer or rancher; 

(2) Obtain and implement a 

conservation plan; and 

(3) Implement sustainable grazing or 

crop production in compliance with the 

conservation plan by the time specified 

in the plan. 

(c) Eligible beginning or socially 

disadvantaged farmers or ranchers will 

be eligible immediately to reenroll 

partial field conservation practices in 

CRP, in accordance with the 

conservation plan and the provisions of 

this part, following the expiration of the 

CRP contract of the qualified retired or 

retiring owner or operator, provided that 

the beginning or socially disadvantaged 

farmer or rancher has control of the 

property and meets all other qualifying 

conditions of CRP, as specified in this 

part. 

(d) Eligible beginning or socially 

disadvantaged farmers or ranchers will 

be eligible to enroll land in the 

Conservation Stewardship Program or 

the Environmental Quality Incentives 

Program, as specified in parts 1470 and 

1466 of this chapter, provided that their 

offer to enroll otherwise meets all 

program conditions, and provided that 

the CRP contract of the retired or 

retiring owner or operator has expired 

and the beginning or socially 

disadvantaged farmer or rancher has 

sufficient control of the property. 

(e) As an incentive for selling or 

leasing land to a beginning or socially 

disadvantaged farmer or rancher who is 

not a family member, CCC will pay 2 

years of additional CRP annual rental 

payments at the same contract rate to a 

retired or retiring owner or operator. 

The retired or retiring owner or operator 

must certify that the beginning or 

socially disadvantaged farmer or 

rancher is not a family member. 

(f) Subject to all other program 

conditions, incentive payments may be 

allowed for contracts that have already 

expired if: 

(1) The contract expired on or after 

June 18, 2008, and contract modification 

began on or before September 30, 2010; 

(2) The transfer to the beginning or 

socially disadvantaged farmer or 

rancher will occur after the contract 

modification; and 

(3) All other program conditions are 

otherwise met. 

(g) Eligible retired or retiring owner or 

operator and eligible beginning or 

socially disadvantaged farmer or 

rancher must agree to be jointly and 

severally responsible, if the participant 

has a share of the payment greater than 

zero, with the other Transition Incentive 

Program agreement participants in 

compliance with the provisions of such 

Transition Incentive Program agreement 

and the provisions of this part and for 

any payment adjustments that may be 

required for violations of any of the 

terms or conditions of the Transition 

Incentive Program agreement and this 

part. 

Signed at Washington, DC, on April 27, 

2010. 

Jonathan W. Coppess, 

Executive Vice President, Commodity Credit 

Corporation. 

[FR Doc. 2010–11595 Filed 5–13–10; 8:45 am] 

BILLING CODE 3410–05–P 


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