CONSERVATION

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UNITED STATES DEPARTMENT OF AGRICULTURE

FARM SERVICE AGENCY

RISK MANAGEMENT AGENCY

NATURAL RESOURCES CONSERVATION SERVICE 

FACT SHEET April 2015

Conservation Compliance for Highly Erodible Land 

and Wetlands - Affiliated Persons

OVERVIEW

Highly Erodible Land Conservation (HELC) 

and Wetland Conservation (WC) provisions 

aim to reduce soil loss on erosion-prone lands 

and protect wetlands for the multiple benefits 

they provide. HELC and WC provisions apply 

to all land that is considered highly erodible 

and wetlands that are owned or farmed by 

persons voluntarily participating in U.S. 

Department of Agriculture (USDA) programs, 

unless USDA determines an exemption 

applies.

Producers and any affiliated individuals or 

entities who participate in most programs 

administered by the Farm Service Agency 

(FSA), the Natural Resources Conservation 

Service (NRCS), and the Risk Management 

Agency (RMA) are required to comply with 

these provisions. Non-compliance may affect 

the following types of USDA program 

benefits:

• FSA loans and disaster assistance 

payments;

• NRCS and FSA conservation program 

benefits;

• Federal crop insurance premium subsidies.

For general information about HELC and WC 

provisions, view the fact sheet titled 

“Conservation Compliance and Crop 

Insurance.”

COMPLIANCE WITH HELC AND WC 

PROVISIONS

To comply with the HELC and WC provisions, 

producers and affiliated persons must fill out 

and sign form AD-1026 certifying they will 

not:

• Plant or produce an agricultural 

commodity on highly erodible land without 

following an NRCS approved conservation 

plan or system;

• Plant or produce an agricultural 

commodity on a converted wetland or;

• Convert a wetland that makes the 

production of an agricultural commodity 

possible. 

In addition, producers planning to conduct 

activities that may affect their HELC or WC 

compliance, for example removing fence rows, 

conducting drainage activities or combining 

fields, must notify FSA by filing form 

AD-1026. FSA will notify NRCS and NRCS 

will then provide highly erodible land or wetland technical evaluations and issue determinations if needed.

A copy of form AD-1026 can be found at 

http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/AD1026.PDF

EXPLANATION OF AFFILIATED 

PERSONS WHO NEED TO FILE AN 

AD-1026 FOR HELC AND WC 

COMPLIANCE PURPOSES

An “affiliated person” is an individual or entity 

who has a specific connection to the individual 

or entity completing the AD-1026. Affiliated 

persons could be family members or business 

partners. The following table describes who or 

what are considered affiliated persons.
FACT SHEET

Conservation Compliance - Affiliated Persons April 2015

IF the producer is THEN the affiliated persons who need to file an AD-1026 are

An individual The individual’s spouse or minor children, if they have a farming 

interest.

For all entity types (except for a corporation (see rule for corporations 

below) in which the individual has any interest at the first level if they 

have a farming interest.

An entity other than 

a corporation

All members/interest holders at the first level in the entity if they have a 

farming interest.

Scenario: WXYZ General Partnership has the following interest holders 

and indicated interest as follows:

Individual W....... 25 percent

- X LLC ........... 25 percent

- Y Inc. ............ 25 percent

- Individual Z..... 25 percent

Analysis: The affiliated persons of WXYZ General Partnership would be 

Individual W; X LLC; Y Inc.; and Individual Z because they are 

members of the general partnership at the first level. The interest holders 

in X LLC and Y Inc. would not be affiliated persons of WXYZ 

Partnership because they are not interest holders in WXYZ General 

Partnership at the first level.

A corporation Interest holders at the first level in the corporation with more than 20 

percent interest if they have a farming interest

Scenario: ABC Inc. has the following interest holders and indicated 

interest as follows: 

Individual A – 15 percent

Corporation C – 85 percent 

Corporation C is 100 percent owned by Individual B

Analysis: Only Corporation C is considered an affiliated person to ABC 

Inc. Individual A does not have more than a 20 percent interest in ABC 

Inc. and Individual B only holds an indirect interest in ABC Inc. through 

Corporation C and, therefore is not an interest holder at the first level.

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AD-1026 FILING REQUIREMENT FOR 

AFFILIATED PERSONS

Although an individual or entity may be 

considered an affiliated person to a producer 

requesting benefits, an affiliated person who 

does not have a farming interest does not need 

to file an AD-1026. A “farming interest” for 

this purpose is an owner, operator or other 

producer on any farm. An example of an 

affiliated person who does not need to file an 

AD-1026 is a minor child that does not have a 

farming interest.

ADDITIONAL INFORMATION

To get additional information on affiliated 

persons, contact the FSA office at a local 

USDA Service Center. More information on 

general conservation compliance can be found 

at www.fsa.usda.gov/programs-and-services/

payment-eligibility/conservation_compliance/

index.

Additional information about programs offered 

by FSA, NRCS and RMA can be found online 

at: www.fsa.usda.gov for FSA; www.nrcs.

usda.gov for NRCS; and www.rma.usda.gov 

for RMA.

The U.S. Department of Agriculture (USDA) prohibits 

discrimination in all of its programs and activities on 

the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial 

status, parental status, religion, sexual orientation, political beliefs, genetic information, reprisal, or because 

all or part of an individual’s income is derived from any 

public assistance program. (Not all prohibited bases 

apply to all programs.) Persons with disabilities who require alternative means for communication of program 

information (Braille, large print, audiotape, etc.) should 

contact USDA’s TARGET Center at (202) 720-2600 

(voice and TDD). 

To file a complaint of discrimination, write to USDA, Assistant Secretary for Civil Rights, Office of the Assistant 

Secretary for Civil Rights, 1400 Independence Avenue, 

S.W., Stop 9410, Washington, DC 20250-9410, or call 

toll-free at (866) 632-9992 (English) or (800) 877-8339 

(TDD) or (866) 377-8642 (English Federal-relay) or 

(800) 845-6136 (Spanish Federal-relay). 

USDA is an equal opportunity provider and employer.

FACT SHEET

Conservation Compliance - Affiliated Persons April 2015

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