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[Federal Register: May 14, 2010 (Volume 75, Number 93)]
[Rules and Regulations]
[Page 27165-27169]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14my10-1]

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Rules and Regulations
                                                Federal Register
________________________________________________________________________

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.

The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
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[[Page 27165]]

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 cost-effectively 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

[[Page 27166]]

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 Sec.  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.

[[Page 27167]]

Eligibility Requirements

    This rule adds a new section Sec.  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 long-term 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 socially-disadvantaged 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 Sec.  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 Sec.  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

[[Page 27168]]

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, conservation-friendly 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.

0
For the reasons discussed above, this rule amends 7 CFR part 1410 as
follows:

PART 1410--CONSERVATION RESERVE PROGRAM

0
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.

0
2. In Sec.  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.

Sec.  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:

[[Page 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.
* * * * *

0
3. In Sec.  1410.5, add paragraph (c) to read as set forth below:

Sec.  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 Sec.
1410.64.

0
4. Amend Sec.  1410.33 as follows:
0
a. In paragraph (a)(3), remove the word ``or'',
0
b. Redesignate current paragraph (a)(4) as (a)(5), and
0
c. Add a new paragraph (a)(4) to read as set forth below.

Sec.  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
* * * * *

0
5. In Sec.  1410.62, add paragraph (g) as follows:

Sec.  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.

0
6. Add Sec.  1410.64 to read as set forth below:

Sec.  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 Sec.  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 Sec.  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 Sec.  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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