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 and Crop Insurance

OVERVIEW

Conservation compliance requires producers 

to have a conservation plan approved by and 

on file with USDA if they plant annually tilled 

crops on highly erodible soil, and prohibits 

producers from planting on converted wetlands 

or converting wetlands for crop production.

The 2014 Farm Bill requires producers, and 

any affiliated individuals or entities to 

participating producers, to comply with these 

provisions who participate in most programs 

administered by the Farm Service Agency 

(FSA), the Natural Resources Conservation 

Service (NRCS), and the Risk Management 

Agency (RMA). 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 support

COMPLIANCE WITH HELC AND WC 

PROVISIONS 

Highly Erodible Land Conservation (HELC) 

and Wetland Conservation (WC) provisions 

(known as “conservation compliance”) aim 

to reduce soil loss on erosion-prone lands and 

to protect wetlands for the multiple benefits 

they provide. HELC and WC provisions apply 

to all land that is considered highly erodible 

or a wetland, and that is owned or farmed by 

persons voluntarily participating in USDA 

programs, unless USDA determines an 

exemption applies. 

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 which 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 for form AD-1026 can be found at 

www.fsa.usda.gov/ad1026form.

AGRICULTURAL COMMODITY

An agricultural commodity is any crop planted 

and produced by annual tilling of the soil, 

including one-trip planters and sugarcane. 

HIGHLY ERODIBLE LAND

Highly erodible land is any land that can erode 

at excessive rates because of its soil properties 

and/or is designated by field and based on the 

proportion of the total field acreage that 

contains highly erodible soils.
FACT SHEET

Conservation Compliance and Crop Insurance April 2015

Producers who produce agricultural commodities on land identified as highly erodible are 

required to farm such land in accordance with 

a conservation plan or system that is approved 

by NRCS and that substantially reduces soil 

loss. Producers proposing to produce agricultural commodities on highly erodible land 

that has no crop history prior to Dec. 23, 1985 

(known as sodbusting), are required to farm 

such land in accordance with a conservation 

plan or system that provides for no substantial 

increase in soil erosion. A conservation plan or 

system to reduce soil erosion is not required 

for land that is not highly erodible. 

WETLAND

A wetland is an area that:

• Has a predominance of hydric soils (wet 

soils);

• Is inundated or saturated by surface or 

groundwater (hydrology) at a frequency 

and duration sufficient to support a 

prevalence of hydrophytic (water tolerant) vegetation typically adapted for life in 

saturated soil conditions and

• Under normal circumstances supports a 

prevalence of such vegetation except that 

this term does not include lands in Alaska 

identified as having a high potential for 

agricultural development and a predominance of permafrost soils. 

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. See the table on page 3 for a 

description of who or what are considered 

affiliated persons.

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.

NRCS AND FSA ROLES IN MAKING 

DETERMINATIONS

When making HELC and WC compliance 

determinations:

NRCS responsibilities include:

• For HELC compliance:

o Making highly erodible determinations; 

o Working with producers to develop 

conservation plans and systems; and 

o When required, determining if highly 

erodible land is being farmed in accordance with a conservation plan or 

system approved by NRCS.

• For WC compliance:

o Making wetland determinations, 

including establishing if certain technical exemptions apply, such as prior 

converted cropland; and 

o Determining if a wetland conversion has 

occurred.

FSA makes eligibility determinations, such as 

who is ineligible based upon NRCS technical 

determinations of HELC or WC noncompliance. FSA also acts on requests for the 

application of certain eligibility exemptions, 

such as the good faith relief exemption.

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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.

FACT SHEET

Conservation Compliance and Crop Insurance April 2015

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FACT SHEET

Conservation Compliance and Crop Insurance April 2015

HIGHLY ERODIBLE LAND AND 

WETLAND DETERMINATION

FSA maintains the official USDA records of 

highly erodible land and wetland 

determinations. The determinations are 

recorded within the geographic 

information system and the automated farm 

and tract records maintained by FSA; however, 

it is important to know that determinations 

may not include all of the producer’s land. 

Producers may obtain aerial imagery of their 

farms and a printout of their farm and tract 

records from the FSA office servicing their 

farm. If a producer is uncertain of the highly 

erodible land and wetland determinations 

applicable to their land, the producer should 

contact the appropriate USDA Service Center 

for assistance. The following link will help in 

locating local USDA Service Centers: 

http://offices.usda.gov . 

FSA AND NRCS PROGRAMS

Producers who are not in compliance with 

HELC and WC provisions are not eligible to 

receive benefits for most programs 

administered by FSA and NRCS. If a producer 

received program benefits and is later found 

to be non-compliant, the producer may be 

required to refund all benefits received and/or 

may be assessed a penalty.

In particular, unless specific exemptions apply, 

a producer participating in FSA and NRCS 

programs must be in compliance with an 

NRCS approved conservation plan or system 

for all highly erodible land used for 

agricultural commodity production; not have 

planted or produced an agricultural 

commodity on a wetland converted after 

Dec. 23, 1985; and after Nov. 28, 1990, must 

not have converted a wetland 

making the production of an agricultural commodity possible on such converted wetland. 

A producer who violates HELC or WC 

provisions is ineligible for applicable FSA and 

NRCS benefits for the year(s) in violation. A 

planting violation, whether on highly erodible 

land or a converted wetland, results in 

ineligibility for benefits for the year(s) when 

the planting occurred. A wetland 

conversion violation results in ineligibility 

beginning with the year in which the 

conversion occurred and continuing for 

subsequent years, unless the converted wetland 

is restored or mitigated before January 1 of the 

subsequent year. 

HELC AND WC NON-COMPLIANCE - 

RISK MANAGEMENT AGENCY – 

POLICIES REINSURED BY THE 

FEDERAL CROP INSURANCE

CORPORATION

Producers obtaining federally reinsured crop 

insurance will not be eligible for any premium 

support paid by the Federal Crop Insurance 

Corporation (FCIC) for any policy or plan of 

insurance if the producer:

• Has not filed an accurately completed 

AD-1026 with FSA certifying compliance 

with HELC and WC provisions; or

• Is not in compliance with HELC and WC 

provisions. Unless specific exemptions 

apply, a producer must: 

o Be in compliance with a NRCSapproved conservation plan for all 

highly erodible land;

o Not plant or produce an agricultural 

commodity on a wetland converted after 

Feb. 7, 2014; and

o Not have converted a wetland after Feb. 

7, 2014, to make possible the production 

of an agricultural commodity.

A producer is ineligible for any premium 

support paid by FCIC on all policies and plans 

of insurance for the reinsurance year(s) 

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(July 1 – June 30) following the reinsurance 

year of a final determination of a violation of 

HELC or WC provisions, including all 

administrative appeals, unless specific 

exemptions apply. Further, a producer will be 

ineligible for any premium support paid by 

FCIC on all policies and plans of insurance 

for the reinsurance year if they do not have 

a completed form AD-1026 on file with FSA 

certifying compliance on or before June 1 prior 

to the beginning of the subsequent reinsurance 

year (July 1), unless otherwise exempted. 

REGAINING ELIGIBILITY FOR 

BENEFITS LOST BECAUSE OF A 

VIOLATION

Producers who are found to be in violation of 

HELC or WC provisions, but acted in good 

faith and without the intent to violate, may file 

a request to regain eligibility for the period in 

violation at the FSA office where their farm 

records are administered. If the request is 

approved, producers are required to take 

corrective action within an established period. 

There are exemptions that may apply in 

limited circumstances. 

ADDITIONAL INFORMATION

For additional information on HELC and WC 

compliance, contact the FSA office or the 

NRCS office at a local USDA Service Center 

at http://offices.usda.gov . Additional 

information can be found online at www.fsa.

usda.gov/compliance for FSA, www.nrcs.

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

gov for RMA. The regulations covering these 

provisions are set forth in the Code of Federal 

Regulations at 7 CFR Part 12.

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 and Crop Insurance April 2015

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