U.S. DEPARTMENT OF AGRICULTURE

Natural Resources Conservation Service (NRCS) 

APPENDIX TO FORM NRCS-CPA-1202, “CONSERVATION PROGRAM CONTRACT”

February 2020 1

General Contract Provisions

1. DEFINITIONS

The following definitions are applicable to the Conservation Program Contract (CPC) entered 

into under the program identified in the program-specific section of this appendix. All other 

words and phrases, unless the context of subject matter otherwise requires, shall have the 

meanings assigned to them in the regulations governing the applicable program. 

1. Contract or CPC.—The program documents, including Form NRCS-CPA-1202, 

“Conservation Program Contract”; the Appendix to Form NRCS-CPA-1202; Form NRCSCPA-1155, “Conservation Plan or Schedule of Operations”; Form NRCS-CPA-1156, 

“Revision of Plan/Schedule of Operations or Modification of Contract”; and Form NRCSCPA-152, “CPC Transfer Agreement.” The contract sets forth the terms and conditions for 

program participation for the programs identified in this Appendix.

2. The Natural Resources Conservation Service (NRCS).—An agency of the U.S. Department 

of Agriculture (USDA). NRCS is administering this contract on behalf of the Commodity 

Credit Corporation (CCC). Therefore, where this contract refers to “CCC,” NRCS may act 

on its behalf for the purposes of administering this contract. 

3. Participant.—A person, legal entity, joint operation, Indian Tribe that is a producer, or other 

eligible party who has applied for participation in the program, has been selected as eligible 

for participation, and who has entered into this contract as responsible for implementing its 

terms and conditions. Any participant that will receive any share of a payment made for the 

implementation of this contract must be a signatory on the contract and eligible for such 

payment. Any participant on the contract may approve payment applications for the contract

unless signatory is specifically not granted or assigned on the contract Forms NRCS-CPA1202 or NRCS-CPA-152.

2. ELIGIBILITY REQUIREMENTS

A. The participant must, upon request, provide evidence to NRCS demonstrating that such 

participant controls the land during the contract period. By signing this contract, the 

participant certifies that such participant will control the land subject to the contract for the 

contract period. 

B. Land otherwise eligible for the applicable program shall not be eligible, except as agreed 

otherwise, in writing, by NRCS, if the land is subject to a deed or other restriction prohibiting 

the production of agricultural commodities or where a benefit has or will be obtained from a 

Federal agency in return for the participant's agreement not to produce such commodities on 

the land during the same time as the land would be enrolled in the program. By offering land 

for enrollment, the participant certifies as a condition for payment that no such restrictions 

apply to the subject land.

C. The participant shall not be eligible for payments for implementation of conservation 

practices or activities that the participant is required to implement to address noncompliance 

with 7 CFR Part 12. Contract payment will not be delayed for conservation practices or 

activities completed while in noncompliance with 7 CFR Part 12 or for the purpose of 

circumventing the payment eligibility requirements set forth in 7 CFR Part 12.
U.S. DEPARTMENT OF AGRICULTURE

Natural Resources Conservation Service (NRCS) 

APPENDIX TO FORM NRCS-CPA-1202, “CONSERVATION PROGRAM CONTRACT”

February 2020 2

3. AGREEMENT

A. The participant agrees to—

1. Enroll eligible land into the program for the period of time as specified on Form NRCSCPA-1202 beginning on the date this contract is executed by NRCS;

2. Comply with the terms and conditions of this contract;

3. Establish, maintain, and replace, as specified in this contract, the conservation practices 

or activities agreed to in Form NRCS-CPA-1155 and, if applicable, Form NRCS-CPA1156, including completion of a conservation practice or activity within the first 12 

months of the contract. NRCS may extend the timeframe for completion if NRCS 

determines that the participant is unable to complete the conservation practice or activity 

for reasons beyond their control;

4. Obtain the authorities, permits, easements, or other approvals necessary for the 

implementation, operation, and maintenance of the conservation practices or activities in 

accordance with applicable laws and regulations;

5. Discontinue implementation and notify NRCS immediately if during the construction of 

any conservation practice or activity a previously unknown, unexpected, or unidentified 

endangered species, archeological, cultural, or historical site is encountered or the 

prescribed conditions for mitigation purposes have changed;

6. Not undertake any action on land under the participant’s control which tends to defeat the 

purposes of this contract, as determined by NRCS;

7. Not start any financially assisted conservation practice or activity before this contract is 

executed by NRCS, unless NRCS approves a waiver;

8. Complete and file Form CCC-901, “Member’s Information,” or its equivalent, if the 

participant represents a business classified as a legal entity or joint operation by the 

USDA under 7 CFR Part 1400 and maintain updated information with the Farm Service 

Agency as provided in 7 CFR Part 1400;

9. File forms required by NRCS for applicable payment limitation determinations. 

10. File forms required by NRCS for adjusted gross income (AGI) determinations;

11. Provide to NRCS, upon request, written concurrence from the landowner that identifies 

the participant has authority to install structural or vegetative conservation practices or 

activities;

12. File Form NRCS-CPA-1245, “Practice Approval and Payment Application,” or similar 

NRCS-approved form, upon completion of a contracted conservation practice or activity, 

in order to receive payment;

13. Retain all records, including receipts, as proof of completion and payments, and other 

documents related to this contract for a period of three (3) full years after completion of 

the terms of this contract, and give to the NRCS, the USDA Office of Inspector General 

and the Comptroller General of the United States, through any authorized representative, 

access to and the right to examine all records, books, papers, or documents related to this 

contract; and
U.S. DEPARTMENT OF AGRICULTURE

Natural Resources Conservation Service (NRCS) 

APPENDIX TO FORM NRCS-CPA-1202, “CONSERVATION PROGRAM CONTRACT”

February 2020 3

14. Allow access to the land under contract to the NRCS, or its representative, for monitoring 

progress on this contract. NRCS shall provide reasonable notification to the participant

prior to entering the land under contract.

B. NRCS agrees, subject to the availability of funds, to—

1. Approve payment to the participant for completing an eligible conservation practice or 

activity as scheduled in Forms NRCS-CPA-1155 or NRCS-CPA-1156, if applicable, as 

described herein.

2. Approve payments based on the actual extent of the conservation practice or activity 

implemented. NRCS will approve payments based on the payment rate agreed to in 

Forms NRCS-CPA-1155 or NRCS-CPA-1156. NRCS will only approve payments for 

conservation practices or activities the participant completes within the contract period of 

performance and that meet or exceed the requirements described in the NRCS standards 

and specifications, designs, job sheets or guide sheets;

3. Approve payments submitted on Form NRCS-CPA-1245, or similar NRCS-approved 

form, based upon the shares to which the parties have agreed as set forth on Form 

NRCS-CPA-1202.

4. PERIOD OF PERFORMANCE

This contract is effective when signed by the participant and executed by an authorized 

representative of NRCS. The contract term begins on the date NRCS executes the contract as 

indicated on the Forms NRCS-CPA-1202 or NRCS-CPA-152 and shall not exceed the maximum 

length authorized for the program. All required participants must sign this contract within the 

timeframe established by NRCS. In the event that a statute is enacted during the period of this 

contract which would materially change the terms and conditions of this contract, the NRCS may 

require the participant to either modify this contract consistent with the provisions of such statute 

or agree to contract termination.

5. CONTRACT CORRECTION, MODIFICATION, AND TRANSFER

A. Contract Correction—NRCS reserves the right to correct all errors in entering data or the 

results of computations in this contract. If the participant does not agree to such corrections, 

NRCS shall terminate the contract.

B. Contract Modification.—NRCS and the participant may agree to modify this contract upon 

determination and approval of NRCS that the modification is consistent with the purposes of 

the program and is in the public interest. Any participant on the contract may approve 

modifications for the contract on behalf of all participants unless such signature authority is 

specifically denied on Form NRCS-CPA-1202.

C. Contract Transfer.

1. The participant must provide written notice to NRCS within 60 days of any voluntary or 

involuntary loss of control of any acreage under the contract, including changes in a 

participant’s ownership structure or corporate form. NRCS will terminate the contract, if 

timely notice is not provided, if an eligible producer is not identified in the notice, or if 

the new producer is not approved by NRCS to accept the terms and conditions of the 

contract.
U.S. DEPARTMENT OF AGRICULTURE

Natural Resources Conservation Service (NRCS) 

APPENDIX TO FORM NRCS-CPA-1202, “CONSERVATION PROGRAM CONTRACT”

February 2020 4

2. NRCS may approve a transfer of the contract if the new producer meets the program 

eligibility requirements within a reasonable time frame as determined by NRCS, the new 

producer agrees to assume the rights and responsibilities for the acreage under the 

contract, and NRCS determines that the purposes of the program will continue to be met.

3. Until NRCS approves the transfer of contract rights, a new producer is not a participant

and may not receive payment for conservation practices or activities commenced prior to 

approval of the contract transfer.

6. CONTRACT VIOLATION AND TERMINATION

A. If a participant fails to carry out the terms and conditions of this contract NRCS may 

terminate this contract. NRCS may require the participant to refund payments received under 

this contract, or if not terminated, require the participant to accept such adjustments in 

subsequent payments as are determined to be appropriate by NRCS. 

B. The NRCS may terminate this contract, in whole or in part, without liability, if NRCS 

determines that continued operation of this contract will result in the violation of a statute or

regulation, or if NRCS determines that termination would be in the public interest. 

C. NRCS and the participant may agree to terminate this contract if NRCS determines that the 

termination is in the public interest.

D. NRCS may determine that a participant is not in violation of the contract for failure to 

comply with the contract if the circumstances for failing to comply were beyond the control 

of the participant, including a disaster or related condition, as determined by the NRCS. 

E. The contract terminates upon death of the participant unless the estate or other successor of 

the deceased participant, as determined by NRCS, assumes responsibility for the contract and 

meets applicable eligibility requirements. NRCS may transfer the contract to the estate or 

deceased participant successor by completing Form NRCS-CPA-152. The transfer agreement 

is not in effect until approved by NRCS. Payment will be in accordance with guidance 

provided in applicable provisions of 7 CFR Parts 707 and 1400 as determined by NRCS.

7. PAYMENT COLLECTION AND RECOVERY OF COST

A. Collection of amounts due from a participant for contract violation, improper payment, or any 

other reason will follow procedures of 7 CFR Part 1403. NRCS will notify the participant

and provide the reason for the collection and the amount owed. Unpaid debts accrue interest 

due to the NRCS beginning 30 days after the billing date at the current value of funds rate 

published in the Federal Register by the United States Department of Treasury.

B. In the event a participant violates the terms of this contract, the participant voluntarily 

terminates this contract before any contractual payments have been made, or this contract is 

terminated with cause by NRCS, NRCS will incur substantial costs in administering this 

contract which may not be possible to quantify with certainty. The participant agrees to pay, 

at the time of termination, liquidated damages in an amount equal to 10 percent of the total 

financial assistance obligated to the participant in this contract. The liquidated damage 

payment is for recovery of administrative costs and technical services, and is not a penalty.
U.S. DEPARTMENT OF AGRICULTURE

Natural Resources Conservation Service (NRCS) 

APPENDIX TO FORM NRCS-CPA-1202, “CONSERVATION PROGRAM CONTRACT”

February 2020 5

8. OPERATION AND MAINTENANCE OF CONSERVATION PRACTICES OR 

ACTIVITIES (O&M AGREEMENT)

The participant agrees to operate and maintain (O&M) all conservation practices or activities 

included within this contract. The participant’s O&M responsibilities begin when they complete 

the conservation practice or activity, as determined by NRCS, and shall continue through the end 

of the practice or activity lifespan. Failure to carry out O&M may result in NRCS terminating this 

contract. 

9. PROVISIONS RELATING TO TENANTS AND LANDLORDS

No payment will be approved for the current year if NRCS determines that any of the following 

conditions exist:

1. The landlord or operator has not given the tenants that have an interest in the agricultural 

operation covered by the contract, or that have a lease that runs through the contract term 

at the time of sign-up, an opportunity to participate in the benefits of the program.

2. The landlord or operator has adopted any other scheme or device for the purpose of 

depriving any tenant of any benefits to which such tenant would otherwise be entitled. If 

any such conditions occur or are discovered after payments have been made, all or any 

part of the payments, as determined by NRCS, must be refunded and no further payments 

shall be made.

10. MISREPRESENTATION AND SCHEME OR DEVICE

A participant who is determined to have erroneously represented any fact affecting a determination 

with respect to this contract and the regulations applicable to this contract, adopted any scheme or 

device which tends to defeat the purposes of this contract, or made any fraudulent representation 

with respect to this contract, will not be entitled to payments or any other benefits made under this 

contract. The participant must refund to NRCS all payments received plus interest. In addition, 

NRCS may terminate the participant’s interest in all conservation program contracts. The 

provisions of this paragraph of the Appendix shall be applicable in addition to any other criminal 

and civil fraud statutes.

11. RIGHTS TO APPEAL AND REQUEST EQUITABLE RELIEF

A. The participant may appeal an adverse decision under this contract in accordance with the 

appeal procedures set forth at 7 CFR Part 11, Subpart A, and Part 614. Pending the 

resolution of an appeal, no payments shall be made under this contract. Before a participant

seeks judicial review, the participant must exhaust all appeal rights granted within these 

regulations.

B. The participant may also request equitable relief as provided under 7 U.S.C. 7996 and 7 CFR 

Part 635.

12. DRUG-FREE WORKPLACE (2 CFR Part 182 and 2 CFR Part 421)

By signing this contract, the participant certifies that the participant will comply with the 

requirements of 2 CFR Part 182 and 2 CFR Part 421. If it is later determined that the participant

knowingly rendered a false certification, or otherwise violated the requirements of the Drug-Free 
U.S. DEPARTMENT OF AGRICULTURE

Natural Resources Conservation Service (NRCS) 

APPENDIX TO FORM NRCS-CPA-1202, “CONSERVATION PROGRAM CONTRACT”

February 2020 6

Workplace Act, NRCS, in addition to any other remedies available to NRCS under this contract or 

in general to the United States, may take action authorized under the Drug-Free Workplace Act.

Conservation Stewardship Program (CSP) Provisions which includes CSP 

contracts enrolled under the Regional Conservation Partnership Program 

(RCPP-CSP)

1. GENERAL TERMS

A. The regulations in 7 CFR Part 1470 and any other applicable regulations are incorporated, by 

reference, herein. In the event of a conflict between these regulations and the terms of this 

Appendix, the provisions of the regulations will prevail.

B. In addition to the documents identified in the general provisions, the Contract also incorporates 

the following documents, to which the Participant is bound:

• Conservation Assessment Ranking Tool (CART) reports

• Conservation Stewardship Plan and plan maps

C. At the end of the initial 5-year contract period, NRCS may allow the producer to renew the 

contract in accordance with applicable program requirements at the time of contract renewal.

D. The term “Agricultural Operation” as used in this Appendix also includes nonindustrial private 

forest land (NIPF) components of an operation.

2. PROGRAM ELIGIBILITY REQUIREMENTS

A. Participants must be the operator, owner, or other tenant of an agricultural operation in the Farm 

Service Agency (FSA) farm records management system and have effective control of the land 

for the Contract period. 

B. Participants must demonstrate to the satisfaction of NRCS that they share in the risk of producing 

a crop; share in the crop available for marketing from the farm; and participate in the daily 

management, administration, and performance of the operation for the land included in the 

Contract.

C. Participants must be in compliance with the highly erodible land and wetland conservation 

provisions found in 7 CFR Part 12.

D. Participants must comply with adjusted gross income provisions found at 7 CFR Part 1400.

E. Participants must supply information, as required by NRCS, to determine eligibility for CSP.

F. The Participant is not eligible for Contract payments for the design, construction, or maintenance 

of animal waste storage or treatment facilities or associated waste transport devices for animal 

feeding operations.

G. Land used for crop production after December 20, 2018, that had not been planted, considered to 

be planted, or devoted to crop production for at least 4 of the 6 years preceding this date shall not 

be eligible for any payment under the program, unless the land does not meet the requirement 

because: 
U.S. DEPARTMENT OF AGRICULTURE

Natural Resources Conservation Service (NRCS) 

APPENDIX TO FORM NRCS-CPA-1202, “CONSERVATION PROGRAM CONTRACT”

February 2020 7

i. The land had previously been enrolled in the Conservation Reserve Program (CRP);

ii. The land has been maintained using long-term crop rotation practices, as determined by 

NRCS; or 

iii. The land is incidental land needed for efficient operation of the farm or ranch, as determined 

by NRCS.

3. AGREEMENT

The Participant agrees to—

i. Maintain for the life of the Contract at least the level of existing conservation performance 

identified at the time NRCS executes the Contract. NRCS determines existing conservation 

performance through the CART assessment as documented in the CART reports incorporated 

into the Contract herein;

ii. Notify NRCS within 30 days of any Contract acres accepted for enrollment in the 

Conservation Reserve Program, into a Wetland Reserve Easement through the Agricultural 

Conservation Easement Program, or into another Federal or State program that offers greater 

natural resource protection, as determined by NRCS. NRCS must remove these acres from 

the Contract. Participants will not be subject to liquidated damages or refund of payments 

received for enrolling land in these programs. However, NRCS will evaluate whether the 

removal of these acres allows the Participant to continue to meet the CSP requirements or if 

this action warrants termination of the Contract. 

iii. Accept applicable program contract and payment limits as found in Subchapter B of Chapter 

4 of the Food Security Act of 1985, 7 CFR part 1400, program regulations at 7 CFR part 

1470, and this Appendix: 

The Participant, if a person or legal entity, hereby agrees that the total amount of all CSP 

payments received, directly or indirectly, do not in the aggregate exceed $200,000 for all CSP 

contracts entered into during fiscal years 2019 through 2023, regardless of the number of 

Contracts entered into under the CSP by the person or legal entity. Any CSP contract entered 

into with a person or legal entity will be limited to $200,000 over the term of the 5-year 

contract period. Any CSP contract entered into with a joint operation will be limited to 

$400,000 over the term of the 5-year contract period. Indian tribes are excluded from 

payment and contract limits. Payments received in excess of these limits are subject to 

refund to NRCS. 

4. PERIOD OF PERFORMANCE

A. This Contract shall have a term not to exceed 5 years from the date of Contract execution as 

indicated on the Form NRCS-CPA-1202.

B. For CSP Renewal Contracts, the period of performance begins the day after the initial Contract 

expires.

5. PAYMENTS

A. Subject to the availability of funds, NRCS will make payment at the rate specified in this 

Contract, with consideration to person or legal entity payment limits as described in 3(iii), after 

NRCS determines that the Participant completed scheduled conservation practices and activities 
U.S. DEPARTMENT OF AGRICULTURE

Natural Resources Conservation Service (NRCS) 

APPENDIX TO FORM NRCS-CPA-1202, “CONSERVATION PROGRAM CONTRACT”

February 2020 8

in accordance with the conservation stewardship plan and appropriate NRCS standards and 

specifications or job sheets. 

B. NRCS will provide annual payments to compensate a Participant for improving, managing, and 

maintaining existing conservation practices or activities that increase or extend the conservation 

benefits in place at the time NRCS executes the Contract and for installing and adopting 

additional conservation practices or activities as scheduled on Form NRCS-CPA-1155 or Form 

NRCS-CPA-1156. The annual payment is comprised of both an existing activity payment and an 

additional activity payment.

i. Existing activity payment (EAP)

• The EAP is specific to the Participant’s operation and is based on the land uses included 

in the Contract and NRCS’s assessment of the Participant’s existing stewardship. 

• Participants may earn equal annual payments for the EAP each year of the Contract. 

• NRCS will approve EAPs as soon as practical after October 1 each year for conservation 

practices and activities managed and maintained in the previous fiscal year.

ii. Additional activity payment (AAP)

• Participants may earn payment for additional conservation practices and activities based 

on the payment rate and the actual extent of the conservation practice or activity the 

Participant implements, as approved by NRCS, and documented on Form NRCS-CPA1245.

• NRCS will approve annual payments for completed additional conservation practices and 

activities in the fiscal year following implementation.

C. NRCS may provide a supplemental payment to a Participant receiving annual payments who also 

adopts or improves a resource conserving crop rotation on cropland or who adopts advanced 

grazing management on range or pastureland.

D. The NRCS will delay CSP payment until NRCS receives confirmation that any CRP payments 

have ceased for those lands that are enrolled in CSP.

E. The NRCS may make a minimum contract payment of $1,500 to the Participant in any fiscal year 

that a contract’s payment amount total is less than $1,500. NRCS will not apply a minimum 

contract payment of $1500 to a Contract for newly acquired land that is part of an operation 

which is under an active CSP Contract.

F. NRCS verifies person, legal entity, or joint operation payment limitations during the payment 

process. Payment amounts may change prior to payment approval to enforce the direct and 

indirect payment limitations. Contract payment amounts will not increase after Contract approval 

due to restructuring of the agricultural operation, including but not limited to, creating new joint 

operations that may assume Contract responsibilities.

6. OPERATION AND MAINTENANCE OF CONSERVATION ACTIVITIES (O&M 

AGREEMENT)

A. The Participant must continue to operate and maintain existing conservation activities to at least 

the level of conservation performance identified at the time of Contract execution, including all 

conservation activities as documented in the CART reports, for the Contract period. 
U.S. DEPARTMENT OF AGRICULTURE

Natural Resources Conservation Service (NRCS) 

APPENDIX TO FORM NRCS-CPA-1202, “CONSERVATION PROGRAM CONTRACT”

February 2020 9

B. The Participant is responsible for costs associated with O&M of new and existing conservation 

practices or activities. 

7. CHANGES TO TERMS AND CONDITIONS OF THIS CONTRACT

A. NRCS may approve certain limited changes in the operation, including—

i. Removing contract acres the participant enrolls in CRP, ACEP-WRE, or other Federal or 

State program as described in paragraph 3(ii) above. NRCS may reduce payments to reflect 

the modified acreage and performance.

ii. Allowing the participant, based on their request, to take land out of production or to convert 

land to a different land use when the participant continues to have effective control of the 

land.

iii. Allowing the participant to substitute conservation practices or activities, provided that such 

revisions are within the general scope of the Contract and the resulting conservation 

performance is equal to or greater than the level of conservation performance agreed to at the 

time of enrollment.

B. Contract modifications shall not increase the scheduled annual payments under the program, 

except to make minor adjustments to a conservation practice or activity, as approved by NRCS.

C. Contracts transferred from an individual or entity to a joint operation will retain the original 

contract limit as described in paragraph 5F above.

By signing this document, you acknowledge and agree that all the information provided is true and 

accurate on your behalf. Any false certifications made by participants by signing this Appendix may 

subject the participants to criminal and civil fraud statutes. You further acknowledge that you have read 

and accept all terms and conditions provided in this Appendix. 

_______________________________________________________Date_______________________

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NOTE: This information collection is exempted from the Paperwork Reduction Act. The provisions of 

appropriate criminal and civil fraud, privacy and confidentiality, and other statutes may be applicable to 

the information provided.

USDA is an equal opportunity provider, employer, and lender.