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

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Rules and Regulations Federal Register

70245 

Vol. 73, No. 225 

Thursday, November 20, 2008 

DEPARTMENT OF AGRICULTURE 

Commodity Credit Corporation 

7 CFR Part 1465 

RIN 0578–AA50 

Agricultural Management Assistance 

Program 

AGENCY: Commodity Credit Corporation, 

United States Department of 

Agriculture. 

ACTION: Interim final rule with request 

for comment. 

SUMMARY: The Natural Resources 

Conservation Service (NRCS) is 

amending the regulations for the 

Agricultural Management Assistance 

program (AMA). Section 2801 of the 

Food, Conservation, and Energy Act of 

2008 (2008 Act) amended the 

Agricultural Management Assistance 

program (AMA) by: Expanding the 

program’s geographic scope to include 

Hawaii; and providing $15 million in 

mandatory funding for each of fiscal 

years 2008 through 2012. NRCS issues 

this interim final rule with request for 

comment to incorporate statutory 

changes resulting from the 2008 Act and 

to make administrative changes to 

improve program efficiency. 

DATES: Effective Date: The rule is 

effective November 20, 2008. Comment 

date: Submit comments on or before 

January 20, 2009. 

ADDRESSES: You may send comments 

(identified by Docket Number NRCS– 

IFR–08002) using any of the following 

methods: 

• Government-wide rulemaking Web 

site: go to http://www.regulations.gov 

and follow the instructions for sending 

comments electronically. 

• Mail: Director, Financial Assistance 

Programs Division, Natural Resources 

Conservation Service, Agricultural 

Management Assistance Program 

Comments, P.O. Box 2890, Room 5237– 

S, Washington, DC 20013. 

• Fax: (202) 720–4265 

• Hand Delivery: Room 5237–S of the 

USDA South Office Building, 1400 

Independence Avenue, SW., 

Washington, DC 20250, between 9 a.m. 

and 4 p.m., Monday through Friday, 

except Federal Holidays. Please ask the 

guard at the entrance to the South Office 

Building to call: (202) 720–4527 in order 

to be escorted into the building. 

• This interim final rule may be 

accessed via Internet. Users can access 

the NRCS homepage at http:// 

www.nrcs.usda.gov/; select the Farm 

Bill link from the menu; select the 

Interim final link from beneath the Final 

and Interim Final Rules Index title. 

Persons with disabilities who require 

alternative means for communication 

(Braille, large print, audio tape, etc.) 

should contact the USDA TARGET 

Center at: (202) 720–2600 (voice and 

TDD). 

FOR FURTHER INFORMATION CONTACT: 

Director, Financial Assistance Programs 

Division, Natural Resources 

Conservation Service, P.O. Box 2890, 

Washington, DC 20013–2890; Phone: 

(202) 720–1844; Fax: (202) 720–4265; or 

e-mail: AMA2008@wdc.usda.gov. 

SUPPLEMENTARY INFORMATION: 

Regulatory Certifications 

Executive Order 12866 

The Office of Management and Budget 

(OMB) has determined that this interim 

final rule is a non-significant regulatory 

action under Executive Order 12866. 

Regulatory Flexibility Act 

NRCS has determined that the 

Regulatory Flexibility Act is not 

applicable to this interim final rule 

because NRCS is not required by 5 

U.S.C. 553, or any other provision of 

law, to publish a notice of proposed rule 

making with respect to the subject 

matter of this rule. 

Environmental Analysis 

The National Environmental Policy 

Act (NEPA) applies to ‘‘major Federal 

actions’’ where the agency has control 

and responsibility over the actions and 

has discretion as to how the actions will 

be carried out (40 CFR part 1508.18). 

Accordingly, any actions that are 

directed by Congress to be implemented 

in such manner that there is no 

discretion on the part of the agency are 

not required to undergo an 

environmental review under NEPA. The 

lack of discretion over the action by the 

agency undermines the rationale for 

NEPA review—evaluation of the 

environmental impacts of the proposed 

action and consideration of alternative 

actions to avoid or mitigate the impacts. 

Where Congress has directed that a 

specific action be implemented and an 

agency has no discretion to consider 

and take alternative actions, NEPA 

review would be moot. 

For AMA, Congress has mandated the 

addition of Hawaii to the list of States 

to which the Secretary is authorized to 

provide financial assistance. The 

Secretary of Agriculture is, therefore, 

required to make this addition to the 

program. There is no discretion on the 

part of the agency to take this action. 

For this reason, an environmental 

review of these changes under NEPA is 

not required. 

Civil Rights Impact Analysis 

NRCS has determined through a Civil 

Rights Impact Analysis that the issuance 

of this interim final rule will not have 

a significant effect on minorities. Copies 

of the Civil Rights Impact Analysis may 

be obtained from Director, Financial 

Assistance Programs Division, U.S. 

Department of Agriculture (USDA), 

Natural Resources Conservation Service 

(NRCS), P.O. Box 2890, Washington, DC 

20013–2890. 

Paperwork Reduction Act 

Section 2904 of the 2008 Act requires 

that implementation of programs 

authorized by Title II of the 2008 Act be 

made without regard to the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.) Therefore, NRCS is not reporting 

recordkeeping or estimated paperwork 

burden associated with this interim 

final rule. 

Government Paperwork Elimination Act 

NRCS is committed to compliance 

with the Government Paperwork 

Elimination Act, which requires 

Government agencies, in general, to 

provide the public the option of 

submitting information or transacting 

business electronically to the maximum 

extent possible. To better accommodate 

public access, NRCS has developed an 

online application and information 

system for public use. 


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70246 Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 / Rules and Regulations 

Executive Order 12988 

This interim final rule has been 

reviewed in accordance with Executive 

Order 12988, Civil Justice Reform. The 

provisions of this interim final rule are 

not retroactive. Furthermore, the 

provisions of this interim final rule 

preempt State and local laws to the 

extent such laws are inconsistent with 

this interim final rule. Before an action 

may be brought in a Federal court of 

competent jurisdiction, the 

administrative appeal rights afforded 

persons at 7 CFR parts 11 and 614 must 

be exhausted. 

Federal Crop Insurance Reform and 

Department of Agriculture 

Reorganization Act of 1994 

USDA classified this interim final rule 

as ‘‘not major’’ under Section 304 of the 

Department of Agriculture 

Reorganization Act of 1994, Public Law 

104–354. Therefore, a risk assessment is 

not required. 

Unfunded Mandates Reform Act of 1995 

Pursuant to Title II of the Unfunded 

Mandates Reform Act of 1995, Public 

Law 104–4, NRCS assessed the effects of 

this rulemaking action on State, local, 

and Tribal governments, and the public. 

This action does not compel the 

expenditure of $100 million or more by 

any State, local, or Tribal governments, 

or anyone in the private sector, and 

therefore, a statement under section 202 

of the Unfunded Mandates Reform Act 

is not required. 

Discussion of Program 

The conservation provisions of AMA 

are administered and implemented 

under the general supervision and 

direction of the Chief of NRCS, who is 

a Vice President of the Commodity 

Credit Corporation (CCC). Accordingly, 

where NRCS is mentioned in this rule 

it also refers to the CCC’s funds, 

facilities, and authorities where 

applicable. While NRCS has leadership 

for the conservation provisions of AMA, 

other agencies have authority for 

different aspects of the program. The 

Agricultural Marketing Service (AMS) 

has responsibility for the organic 

certification cost-share program and the 

Risk Management Agency (RMA) has 

responsibility for the insurance costshare program for mitigation of financial 

risk. 

Through AMA, NRCS provides 

technical and financial assistance to 

participants in eligible States to address 

issues, such as water management, 

water quality, and erosion control by 

incorporating conservation practices 

into their agricultural operations. 

Producers may construct or improve 

water management structures or 

irrigation structures; plant trees for 

windbreaks or to improve water quality; 

and mitigate risk through production 

diversification or resource conservation 

practices, including soil erosion control, 

integrated pest management, or organic 

farming. 

Section 524(b) of the Federal Crop 

Insurance Act, as amended by Section 

133 of the Agricultural Risk Protection 

Act of 2000, authorized AMA to provide 

assistance to producers in States that 

historically had low participation in the 

Federal Crop Insurance Program. The 

Farm Security and Rural Investment Act 

of 2002 (2002 Act) made amendments to 

AMA to specify the eligible States and 

provide additional clarity to the 

assistance to be made available. The 

AMA regulation (7 CFR part 1465) was 

published in the Federal Register on 

April 9, 2003. 

Section 2801 of the 2008 Act 

amended AMA to include Hawaii as an 

eligible State, and to authorize $15 

million in funding each year from fiscal 

year (FY) 2008 through FY 2012. NRCS 

has evaluated seven years of program 

implementation and identified 

opportunities to improve program 

administration and alignment with 

other financial assistance programs 

administered by the Agency. The 

revisions to the AMA regulation, 

described below, reflect the changes 

mandated by the 2008 Act and 

opportunities to improve program 

administration for greater efficiency. 

Summary of Provisions 

Section 1465.1, Purposes and 

Applicability 

Section 1465.1, ‘‘Purposes and 

Applicability,’’ sets forth the purpose, 

scope, and objectives of AMA. Through 

AMA, NRCS provides technical and 

financial assistance to producers in 

statutorily-designated States. Section 

2801 of the 2008 Act expanded AMA’s 

geographic scope to include the State of 

Hawaii. In response, NRCS revises 

§ 1465.1 to add Hawaii to the list of 

States eligible for AMA assistance and 

replaces ‘‘15’’ with the number ‘‘16’’ 

when referring to the number of eligible 

States. AMA is now available in 

Connecticut, Delaware, Hawaii, 

Maryland, Massachusetts, Maine, 

Nevada, New Hampshire, New Jersey, 

New York, Pennsylvania, Rhode Island, 

Utah, Vermont, West Virginia, and 

Wyoming. 

Section 1465.2, Administration 

Section 1465.2, ‘‘Administration,’’ 

describes the role of NRCS and provides 

a brief overview of the Agency’s 

administrative responsibilities. NRCS 

amends § 1465.2 to reflect the 2003 

decision made by USDA to have NRCS 

administer the AMA natural resource 

conservation provisions and to clarify 

NRCS’s relationship with the 

Commodity Credit Corporation (CCC). 

Prior to FY 2004, NRCS and the Farm 

Service Agency (FSA) jointly 

administered the AMA natural resource 

conservation provisions. A 2003 

decision made by USDA transferred all 

administrative responsibilities to NRCS. 

Therefore, § 1465.2 is revised to remove 

reference to Farm Service Agency (FSA) 

and reflect that NRCS has the 

responsibility for issuing payments for 

conservation practices. NRCS also 

revises § 1465.2(c) to clarify that lower 

delegations of authority can be 

overridden by the Chief, if necessary, to 

uphold the purposes of AMA. This 

addition is consistent with other NRCS 

natural resource conservation programs. 

Section 1465.3, Definitions 

Section 1465.3 sets forth definitions 

for terms used throughout this 

regulation. Several new definitions have 

been added or revised to align AMA 

terms with terms used by other NRCS 

conservation programs. The following 

existing definitions are revised: 

‘‘Applicant,’’ ‘‘Conservation district,’’ 

‘‘Conservation practice,’’ ‘‘Contract,’’ 

‘‘Indian Tribe,’’ ‘‘Liquidated damages,’’ 

‘‘Participant,’’ ‘‘Producer,’’ ‘‘State 

Conservationist,’’ and ‘‘Technical 

assistance.’’ NRCS also replaces several 

existing terms with terms more 

reflective of AMA’s purposes. The 

term,‘‘Cost-share payment’’ is replaced 

with ‘‘Payment,’’ to reflect the breadth 

of the types of costs that may be 

considered in determining payments. 

The term ‘‘Indian trust lands’’ is 

replaced with the term ‘‘Indian land’’ to 

broaden the scope and align AMA with 

other NRCS conservation programs. 

Finally, the term ‘‘Conservation plan’’ is 

replaced with the term ‘‘AMA plan of 

operations (APO)’’ to align AMA with 

other NRCS conservation programs that 

identify a plan of operations. NRCS 

adds the following terms and definitions 

to the AMA regulations to be consistent 

with related conservation programs: 

‘‘Agricultural land,’’ ‘‘Agricultural 

operation,’’ ‘‘Beginning farmer or 

rancher,’’ ‘‘Historically underserved 

producer,’’ ‘‘Joint operation,’’ ‘‘Legal 

entity,’’ ‘‘Limited resource farmer or 

rancher,’’ ‘‘Livestock,’’ ‘‘Natural 

Resources Conservation Service 

(NRCS),’’ ‘‘Nonindustrial private forest 

land,’’ ‘‘Operation and maintenance 

(O&M) agreement,’’ ‘‘Person,’’ ‘‘Resource 

concern,’’ ‘‘Socially disadvantaged 

farmer or rancher,’’ ‘‘Structural 


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practice,’’ and ‘‘Technical Service 

Provider (TSP).’’ The terms, ‘‘Unit of 

concern’’ and ‘‘State Technical 

Committees’’ are removed since they are 

no longer used in the AMA regulations. 

Specifically, the following definitions 

have been amended: 

NRCS adds the definition of 

‘‘agricultural land’’ to better define the 

land where AMA assistance will be 

provided. Agricultural land is cropland, 

grassland, rangeland, pasture, and other 

agricultural land, on which agricultural 

and forest-related products or livestock 

are produced and resource concerns 

may be addressed. Agricultural lands 

include cropped woodland, marshes, 

incidental areas included in the 

agricultural operation, and other types 

of agricultural land used for the 

production of livestock. 

NRCS adds the definition of 

‘‘agricultural operation’’ to closely align 

AMA’s definitions with definitions used 

by other NRCS conservation programs. 

Section 1465.3 defines an ‘‘agricultural 

operation’’ as ‘‘a parcel or parcels of 

land whether contiguous or 

noncontiguous, which the producer is 

listed as the operator or owner/operator 

in the Farm Service Agency (FSA) 

record system, which is under the 

effective control of the producer at the 

time the producer applies for a contract, 

and which is operated by the producer 

with equipment, labor, management, 

and production, forestry, or cultivation 

practices that are substantially separate 

from other operations.’’ 

NRCS replaces the term, 

‘‘conservation plan’’ with ‘‘AMA plan of 

operations’’ to ensure consistency across 

NRCS programs. Prior to this regulation, 

AMA participants developed and 

implemented an AMA plan of 

operations. The addition of this term 

and associated definition clarifies what 

constitutes an AMA plan of operations 

and clarifies existing processes and 

documentation procedures. An AMA 

plan of operations, which is part of the 

AMA contract, identifies the location 

and timing of conservation practices 

that the participant agrees to implement. 

NRCS revises the definition, 

‘‘applicant,’’ to simplify the definition 

and incorporate the 2008 Act’s 

references to ‘‘person’’ and ‘‘legal 

entity.’’ The term, ‘‘applicant,’’ is 

defined as follows: ‘‘a person, legal 

entity, or joint operation that has an 

interest in an agricultural operation, 

who has requested in writing to 

participate in AMA.’’ 

NRCS adds the definition, ‘‘beginning 

farmer and rancher’’ in accordance with 

Section 2708 of the 2008 Act which 

seeks to expand conservation program 

participation among farmers and 

ranchers who have been historically 

underserved. The definition of 

‘‘beginning farmer and rancher’’ reflects 

the definition provided defined in 

1201(a) of the Food Security Act of 

1985. Generally speaking, a ‘‘beginning 

farmer or rancher’’ is an individual who 

has not operated a farm or ranch, or who 

has operated a farm or ranch for not 

more than 10 consecutive years. This 

requirement applies to all members of 

an entity, who will materially and 

substantially participate in the 

operation of the farm or ranch. NRCS 

also revises the ‘‘conservation district’’ 

definition to reflect the 2008 Act’s 

definition. A conservation district 

means ‘‘any district or unit of State, 

Tribal, or local government formed 

under State, Tribal, or territorial law for 

the express purpose of developing and 

carrying out a local soil and water 

conservation program.’’ Such district or 

unit of government may be referred to 

as a ‘‘conservation district,’’ ‘‘soil 

conservation district,’’ ‘‘soil and water 

conservation district,’’ ‘‘resource 

conservation district,’’ ‘‘natural resource 

district,’’ ‘‘land conservation 

committee,’’ or similar name. 

NRCS revises ‘‘conservation practice’’ 

to clarify what is meant by conservation 

treatment. Specifically, a conservation 

practice means ‘‘one or more 

conservation improvements and 

activities, including structural practices, 

land management practices, vegetative 

practices, forest management, and other 

improvements that achieve program 

purposes.’’ 

NRCS revises the definition of 

‘‘contract’’ in an effort to make 

definitions consistent across other 

programs. A contract is ‘‘a legal 

document that specifies the rights and 

obligations of any participant in the 

program. An AMA contract is a binding 

agreement for the transfer of assistance 

from USDA to the participant to share 

in the costs of applying conservation 

practices.’’ 

The term, ‘‘historically underserved 

producer,’’ merges the terms ‘‘beginning 

farmer or rancher,’’ ‘‘limited resource 

farmer or rancher,’’ and ‘‘socially 

disadvantaged farmer or rancher’’ into 

one definition to simplify terms within 

this regulation. 

NRCS revises the definition of 

‘‘Indian Tribe’’ to ensure the definition 

incorporates Alaska Native village 

corporations, as established pursuant to 

the Alaska Claims Settlement Act (43 

U.S.C. 1601 et seq.). 

NRCS replaces the term and 

definition, ‘‘Indian trust land,’’ to make 

it consistent with the term and 

associated definition, ‘‘Indian land,’’ 

which is used by other NRCS 

conservation programs. The ‘‘Indian 

land’’ definition encompasses lands 

which are also held in fee title by Indian 

tribes or Tribal members. Specifically, 

‘‘Indian land’’ is ‘‘an inclusive term 

describing all lands held in trust by the 

United States for individual Indians or 

Tribes, or all lands, titles to which are 

held by individual Indians or Tribes, 

subject to Federal restrictions against 

alienation or encumbrance, or all lands 

which are subject to the rights of use, 

occupancy and/or benefit of certain 

Tribes.’’ 

NRCS adds the term, ‘‘joint 

operation,’’ to maintain consistency 

across all NRCS conservation programs. 

A joint operation is ‘‘a general 

partnership, joint venture, or other 

similar business arrangement, in which 

the members are jointly or severally 

liable for the obligations of the 

organization.’’ 

NRCS adds the term, ‘‘legal entity,’’ to 

maintain consistency across all NRCS 

conservation programs. As defined by 7 

CFR 1400, ‘‘a legal entity is an entity 

created under Federal or State law that: 

(1) Owns land or an agricultural 

commodity, product, or livestock; or (2) 

produces an agricultural commodity, 

product, or livestock.’’ 

NRCS adds the term and associated 

definition ‘‘limited resource farmer,’’ in 

accordance with Section 2708 of the 

2008 Act which seeks to expand 

conservation program participation 

among farmers and ranchers who have 

been historically underserved. The 

definition of ‘‘limited resource farmer’’ 

reflects the definition used in the 

Environmental Quality Incentive 

Program’s regulation, 7 CFR part 1466. 

Generally speaking, a limited resource 

farmer is a person with direct or indirect 

gross farms sales not more than $155200 

in each of the previous two years, who 

has a total household income at or 

below the national poverty level for a 

family of four, or less than 50 percent 

of the county median household income 

in each of the two previous years. 

NRCS revises the definition, 

‘‘liquidated damages,’’ to make the 

definition consistent with the definition 

used by other NRCS conservation 

programs; however, the overall meaning 

of the term remains the same as the 

original regulation’s definition. 

Liquidated damages is ‘‘a sum of money 

stipulated in the AMA contract that the 

participant agrees to pay NRCS if the 

participant fails to adequately complete 

the terms of the contract. The sum 

represents an estimate of the expenses 

incurred to service the contract and 

reflects the difficulties of proof of loss 

and the inconvenience or non-feasibility 


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of otherwise obtaining an adequate 

remedy.’’ 

NRCS adds the term, ‘‘livestock,’’ to 

maintain consistency across NRCS 

conservation programs. Livestock means 

‘‘all animals produced on farms and 

ranches, as determined by the Chief.’’ 

NRCS adds the term, ‘‘Natural 

Resources Conservation Service,’’ to 

define the USDA agency that has 

responsibility for administering AMA. 

NRCS adds the term, ‘‘nonindustrial 

private forest land,’’ to further define 

land eligible for AMA assistance. 

Nonindustrial forest land is rural land 

that has existing tree cover or is suitable 

for growing trees; and is owned by any 

nonindustrial private individual, group, 

association, corporation, Indian Tribe, 

or other private legal entity that has 

definitive decisionmaking authority 

over the land. 

NRCS adds the term ‘‘operation and 

maintenance agreement’’ to describe the 

document that, in conjunction with the 

AMA plan of operations, specifies the 

participant’s operation and maintenance 

responsibilities for conservation 

practices installed with AMA 

assistance. 

NRCS revises the definition of 

‘‘participant,’’ to make it consistent with 

other NRCS conservation programs. A 

participant is ‘‘a person, joint operation, 

or legal entity who is receiving payment 

or is responsible for implementing an 

AMA contract’s terms and conditions.’’ 

NRCS replaces the term, ‘‘cost share 

payment’’ with the term, ‘‘payment’’ to 

more adequately describe how 

participants will be compensated. 

Payment means the ‘‘financial 

assistance provided to the participant 

based on the estimated costs incurred in 

performing or implementing 

conservation practices, including costs 

for: planning, design, materials, 

equipment, installation, labor, 

maintenance, management, or training, 

as well as the estimated income 

foregone by the producer for the 

designated conservation practices.’’ 

NRCS adds the term, ‘‘person,’’ to 

maintain consistency across all NRCS 

conservation programs. As defined by 7 

CFR part 1400, a person is ‘‘an 

individual, natural person and does not 

include a legal entity.’’ 

NRCS expands upon the definition of 

‘‘producer,’’ to include persons or 

entities involved in forestry 

management. 

NRCS adds the term, ‘‘resource 

concern,’’ to maintain a consistency of 

terms across NRCS conservation 

programs. A resource concern is ‘‘a 

specific natural resource problem that 

represents a significant concern in a 

State or region and is likely to be 

addressed successfully through the 

implementation of the conservation 

practices by producers.’’ 

NRCS adds the term, ‘‘socially 

disadvantaged farmer or rancher,’’ in 

accordance with Section 2708 of the 

2008 Act which seeks to expand 

conservation program participation 

among farmers and ranchers who have 

been historically underserved. A 

socially disadvantaged famer or rancher 

is one ‘‘who has been subjected to racial 

or ethnic prejudices because of their 

identity as a member of a group without 

regard to their individual qualities.’’ 

NRCS revises the definition, ‘‘State 

Conservationist,’’ to clarify that the 

former State Conservationist of Hawaii 

has become the director of the Pacific 

Islands. 

NRCS adds the term, ‘‘structural 

practice,’’ to better define a conservation 

practice that involves establishing, 

constructing, or installing a site-specific 

measure to conserve and protect a 

resource from degradation, or improve 

soil, water, air, or related natural 

resources in the most cost-effective 

manner. 

NRCS revises the term, ‘‘technical 

assistance,’’ to further clarify the nature 

of technical assistance under AMA, as 

well as the types of land where AMA 

technical assistance is available. 

NRCS adds the term and definition, 

‘‘Technical Service Provider (TSP)’’ to 

clarify that participants may receive 

technical assistance from an individual, 

private-sector entity, or public agency 

certified by NRCS to provide technical 

services, in lieu of or on behalf of NRCS. 

Section 1465.4, National Priorities 

NRCS inserts a new § 1465.4, entitled 

‘‘National Priorities,’’ and redesignates 

the subsequent sections accordingly. 

The new § 1465.4 provides that NRCS 

establishes national priorities to guide 

funding allocations to States, selection 

of AMA contracts, and implementation 

priority for AMA conservation practices. 

This new section also states that the 

national priorities are reviewed 

periodically by NRCS to ensure that the 

program is addressing priority 

conservation concerns. This addition 

improves AMA consistency with related 

conservation programs administered by 

NRCS. 

Section 1465.5, Program Requirements 

Section 1465.5, ‘‘Program 

requirements,’’ sets forth land and 

applicant eligibility. Throughout the 

Section the terminology is revised to 

make it consistent with the terms used 

in § 1465.3, ‘‘Definitions.’’ 

Specifically, NRCS revises paragraph 

(a), replacing the term, ‘‘cost share’’ 

payment with the term, ‘‘payment,’’ to 

more adequately reflect the type of 

payments a participant may receive. 

NRCS also replaces the term, 

‘‘conservation plan,’’ with the term, 

‘‘AMA plan of operations,’’ to describe 

the specific document that contains the 

conservation practice implementation 

schedule. 

NRCS revises paragraph (c)(2), which 

requires that the applicant provide 

written evidence of ownership or legal 

control for the life of the contract and 

its associated O&M agreement, which is 

consistent with additions in §§ 1465.3 

and 1465.22. NRCS also revises 

paragraph (c)(4) to clarify that 

additional information required by 

NRCS is for the purposes of assessing a 

proposed project’s merits and to assist 

in monitoring contract compliance. 

Section 1465.5 is revised to 

incorporate existing program 

requirements that previously have not 

been included in the AMA regulations 

because they apply via other statutory 

provisions. In particular, NRCS revises 

§ 1465.5(c)(6) to clarify that AMA 

participants are subject to AGI 

limitations, 7 CFR Part 1400 and 

amendments to Section 1001D of the 

Food Security Act of 1985 as authorized 

by Section 1604 of Title I of the 2008 

Act. The AGI and program eligibility 

requirements also necessitate that NRCS 

obtain from legal entities a list of 

members, including members in 

embedded entities, along with their 

social security numbers, and percent 

interest in the legal entity. Specifically, 

text has been added to § 1465.5, 

‘‘Program requirements,’’ that requires 

participants to ‘‘supply other 

information, as required by NRCS, to 

determine payment eligibility as 

established by 7 CFR 1400, Adjusted 

Gross Income (AGI).’’ This revision also 

makes AMA consistent with other NRCS 

conservation programs. 

Paragraph (c) is revised to further 

clarify that applicants must provide a 

list of all members of the legal entity 

and embedded entities along with 

members’ social security numbers and 

percentage interest in the entity. In the 

event an applicant uses a unique 

identification number rather than a 

social security or tax identification 

number, the unique identification 

number must be used universally for 

any and all AMA contracts. The original 

subparagraph 1465.5(c)(4) has been 

removed as it is redundant with 

§ 1465.5(c)(6), and subparagraph 

1465.5(c)(5) has been redesignated as 

§ 1465.5(c)(8). Subparagraph 

1465.5(c)(10) is added to clarify that a 

participant must develop and agree to 

comply with an APO and to describe the 


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Agency expectation regarding the O&M 

agreement. 

NRCS adds new program 

requirements in paragraph (c)(9) to 

improve program administration and 

ensure that AMA program goals are met. 

A provision is added that requires AMA 

participants to be in compliance with 

terms of all other USDA-administered 

agreements to which they are a party. In 

this manner, NRCS ensures that a 

participant who receives NRCS 

conservation program benefits is 

meeting existing responsibilities prior to 

receiving additional assistance. 

Sections 1465.5(d)(2)(i) through 

§ 1465.5(d)(2)(iii) are redesignated as 

§ 1465.5(d)(2)(A), § 1465.5(d)(2)(B), and 

§ 1465.5(d)(2)(C), respectively. In an 

effort to make AMA consistent with 

other programs, the language contained 

within paragraph (d)(2) that addresses 

enrolling public land is slightly revised, 

although the overall intent of the 

language remains the same. 

Section 1465.6, AMA Plan of Operations 

NRCS inserts a new section § 1465.6, 

entitled ‘‘AMA plan of operations,’’ 

which describes the AMA plan of 

operations as the document that 

contains the information related to 

practices and activities to be 

implemented under AMA. Section 

1465.6 specifies the requirements for the 

APO and that participants are 

responsible for implementing the APO. 

This addition brings AMA into 

alignment with other NRCS 

conservation programs. Subsequent 

sections are redesignated accordingly. 

Section 1465.7, Conservation Practices 

Section 1465.7, ‘‘Conservation 

practices,’’ describes how NRCS 

determines eligible conservation 

practices. Specifically, § 1465.7(a) is 

revised to clarify that NRCS will 

identify and provide public notice of the 

conservation practices eligible for 

payments under the program. This 

revision improves AMA consistency 

with related NRCS conservation 

programs. The reference to ‘‘State 

Technical Committees’’ providing 

advice on the types of conservation 

practices eligible for payment is 

removed, since State Technical 

Committees are permitted only to 

provide advice on conservation 

programs, authorized by Title XII of the 

Food Security Act of 1985. AMA is 

authorized by the Federal Crop 

Insurance Act; therefore, State 

Technical Committees are not 

authorized to provide advice on AMA. 

Subpart B—Contracts 

Section 1465.20, Application for 

Participation and Selecting 

Applications for Contracting 

Section 1465.20, ‘‘Application for 

participation and selecting applications 

for contracting,’’ describes the processes 

for submitting and selecting 

applications. This Section remains the 

same; however, the term, ‘‘national 

priorities,’’ is inserted in paragraphs (c) 

and (d) to account for the policy 

outlined in § 1465.4, ‘‘National 

priorities.’’ The reference to ‘‘State 

Technical Committees’’ providing 

advice on AMA ranking criteria is 

removed, since State Technical 

Committees are permitted only to 

provide advice on conservation 

programs, authorized by Title XII of the 

Food Security Act of 1985. AMA is 

authorized by the Federal Crop 

Insurance Act; therefore, State 

Technical Committees are not 

authorized to provide advice on AMA. 

Section 1465.21, Contract Requirements 

Section 1466.21, ‘‘Contract 

requirements,’’ identifies elements 

contained within an AMA contract and 

the responsibilities of the participant 

who is party to the AMA contract. 

Specifically, paragraph (a) is revised to 

change the term ‘‘cost-share payments’’ 

to ‘‘payments,’’ and clarify that costs 

related to technical services may be 

included in the contract. This revision 

does not change current program 

practice. 

Under § 1465.21(b)(2), contract 

duration is revised from 3 to 10 years to 

a minimum duration of one year after 

completion of the last practice, and a 

maximum of 10 years. This provides the 

flexibility needed for establishing 

agreement lengths based on 

conservation concerns and other factors, 

and aligns AMA with other 

conservation programs administered by 

NRCS. 

Overall, § 1465.21(b) is restructured to 

account for additions to the section and 

to make the formatting consistent 

throughout the AMA regulations, 

although with the exception of replacing 

the terms, ‘‘contract and conservation 

plan’’ with ‘‘APO,’’ the text has not 

changed. Accordingly, subparagraphs 

1465.21(b)(3)(i) through 

1465.21(b)(3)(iv) are redesignated as 

1465.21(b)(3)(A) through 

1465.21(b)(3)(D). 

Section 1465.22, Conservation Practice 

Operation and Maintenance 

Section 1465.22, ‘‘Conservation 

practice operation and maintenance,’’ 

addresses the participant’s 

responsibility for operating and 

maintaining conservation practices. 

Section 1465.22 is divided into logical 

content paragraphs and revised to be 

consistent with the O&M agreement 

definition in § 1465.3. NRCS revised 

§ 1465.22 to clarify that the O&M 

agreement is part of the AMA contract. 

The O&M agreement specifies the terms 

and conditions under which the 

participant must operate and maintain 

the conservation practices installed with 

AMA assistance. This section also 

clarifies that NRCS may periodically 

inspect conservation practices to ensure 

that they are being maintained for the 

conservation practice lifespan as 

detailed in the O&M agreement. In the 

event that NRCS finds that a participant 

is not operating and maintaining 

practices for the specified lifespan 

during the contract duration, NRCS may 

request a refund of payments in 

accordance with the AMA contract. 

NRCS has created an O&M agreement to 

articulate the Agency’s expectation that 

the participant is responsible for 

maintaining each conservation practice. 

NRCS has developed this O&M 

agreement for two reasons: (1) To 

increase transparency of a participant’s 

contract responsibilities; and (2) To 

ensure these conservation practices are 

maintained for the length in time in 

which they were designed and created. 

NRCS adds § 1465.22(d) to clarify to 

the participant that conservation 

practices installed before contract 

approval, but included in the 

application in order to obtain ranking 

points, must be operated and 

maintained as specified in the contract 

and O&M agreement. This addition is 

consistent with other NRCS 

conservation programs’ policies. 

Section 1465.23, Payments 

The Section title is revised from 

‘‘Cost-share payments’’ to ‘‘Payments’’ 

to reflect the variety of costs that are 

considered in establishing program 

payments. Accordingly, the term ‘‘costshare payment’’ is replaced by 

‘‘payment’’ throughout the Section. This 

section addresses payments and 

payment limitations applicable to a 

participant. Subparagraphs 

1465.23(a)(1), 1465.23(a)(2), 

1465.23(a)(3), 1465.23(b), 1465.23(c), 

and 1465.23(d) are redesignated as 

1465.23(a), 1465.23(b), 1465.23(c), 

1465.23(d), 1465.23(e), 1465.23(f), and 

1465.23(g), respectively, to 

accommodate additions to the section 

and to make the formatting consistent 

throughout the AMA regulations. 

Section 1465.23(a) is revised to allow 

payments of ‘‘up to 75 percent of the 

estimated cost of an eligible practice 


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and up to 100 percent of the estimated 

income foregone’’ rather than providing 

a flat rate of 75 percent. Allowing for a 

range of payment rates makes it possible 

to provide reduced rates where 

participants can implement a 

conservation practice at a lower cost. 

This allows the opportunity to 

distribute AMA funds to more 

participants. A new section 

1465.23(a)(2) is added to allow 

historically underserved producers to 

receive the applicable payment rate plus 

an additional rate that is not less than 

25 percent, provided that this increase 

does not exceed 90 percent. These 

changes implement the 2008 Act’s 

emphasis on encouraging participation 

by those who have been historically 

underserved and are consistent with 

other related NRCS conservation 

programs. 

Section 1465.23(c) is revised to clarify 

how conservation practices 

implemented or initiated prior to AMA 

contract approval will be handled. 

Section 1465.23(c)(1) states that 

payments will not be made for practices 

applied prior to contract approval. 

Section 1465.23(c)(2) describes that 

practices initiated prior to contract 

approval are not eligible for payment, 

unless the participant had obtained a 

waiver in advance from the State or 

Designated Conservationist. This 

revision aligns AMA with other NRCSadministered conservation programs. 

NRCS revises § 1465.23(e) as follows: 

§ 1465.23(e) is expanded to include the 

statutory reference of the ‘‘Payment 

Limitation and Payment Eligibility’’ at 7 

CFR part 1400. NRCS will attribute 

payments to each participating person 

and legal entity using the same protocol 

outlined in 7 CFR part 1400 for 

commodity and conservation programs. 

This is consistent with other 

conservation programs administered by 

NRCS. Subparagraphs 1465.23(c)(i) 

through 1465.23(c)(iv) are removed as 

the majority of the provisions are 

addressed by reference to 7 CFR part 

1400 in the Section. 

Section 1465.23(f) is added to state 

that payments will not be made for 

conservation practices on eligible land if 

payments are already being received for 

the same practice on the same land 

under a USDA conservation program. 

These additions are consistent with 

other related conservation programs 

administered by NRCS. 

Section 1465.23(h) is added to state 

that subject to fund availability, the 

payment rates for conservation practices 

scheduled after the year of contract 

obligation may be adjusted to reflect 

increased costs. NRCS adds this 

paragraph to enable the Agency to 

adjust payments to accommodate for 

inflation, higher fuel costs, and 

increased labor, which impact the cost 

of implementing a conservation 

practice. 

Section 1465.24, Contract 

Modifications, Extensions, and 

Transfers of Land 

Section 1465.24, ‘‘Contract 

modifications, extensions, and transfers 

of land,’’ addresses contract 

modifications, changes in land 

ownership or control of the land, and 

contract implications if the participant 

loses control of the land. Specifically, 

§ 1465.24(a) is revised to state that when 

an AMA contract is revised, the APO 

also must be revised. The designated 

conservationist must approve the 

modified contract. This new language is 

consistent with modifications made in 

§ 1465.6 and with other conservation 

programs administered by NRCS. 

Language related to contract 

extensions for up to the 10-year limit is 

deleted in § 1465.24(b) because contract 

duration is addressed in § 1465.21(b)(2). 

New language is included to clarify that 

participants are responsible for 

notifying NRCS if they anticipate loss of 

control of the land. This addition is 

consistent with other related 

conservation programs administered by 

NRCS. 

Section 1465.24(c) is revised to clarify 

contract transfer issues related to 

division of payments and transferee 

eligibility. Subparagraphs 1465.24(c)(1) 

and 1465.24(c)(2) explain the 

requirements for a transferee to receive 

payments, the obligations of the 

transferee to comply with the terms of 

the contract and O&M agreement, and 

the rights of the parties in distribution 

of payments. This revision brings AMA 

into alignment with related 

conservation programs administered by 

NRCS. 

Section 1465.24(e) is added to clarify 

that participants to a contract will be 

jointly and severally responsible for 

refunding payments. The language is 

consistent with related NRCSadministered conservation programs. 

Section 1465.24(f) is added to ensure 

that in the event a conservation practice 

fails through no fault of the participant, 

the State Conservationist may issue 

payments to re-establish the 

conservation practice, in accordance 

with established payment rates and 

limitations. 

Section 1465.25, Contract Violations 

and Terminations 

Section 1465.25, ‘‘Contract violations 

and terminations,’’ addresses the 

procedures that NRCS takes where a 

violation has occurred or a contract 

termination is necessary. Section 

1465.25 is revised to account for 

additions to the Section and to make the 

formatting consistent throughout the 

AMA regulations. Section 1465.25(a) is 

revised by removing the term 

‘‘reasonable’’ as it is too subjective and 

replaces it with ‘‘60 days, unless 

otherwise determined by the State 

Conservationist.’’ This language is 

consistent with related NRCSadministered conservation programs. 

Subparagraphs 1465.25(a)(1) and 

1465.25(a)(2) are redesignated as 

§ 1465.25(a) and § 1465.25(b), 

respectively. 

The terms ‘‘scheme or device’’ are 

added to § 1465.25(b) to be clear that 

such actions may result in contract 

violation or termination. This revision is 

consistent with § 1465.35 and with 

related conservation programs 

administered by NRCS. Subparagraphs 

1465.25(b)(1), 1465.25(b)(2), 

1465.25(b)(3), 1465.25(b)(4), and 

1465.25(b)(5) are redesignated as 

1465.25(c), 1465.25(c)(2), 

1465.25(c)(2)(A), 1465.25(c)(2)(B), and 

1465.25(c)(2)(C), respectively. 

Section 1465.25(c) is revised as 

follows: § 1465.25(c) is expanded to 

clarify that participants who are in 

violation of AMA contracts may be 

ineligible for future NRCS-administered 

conservation program funding. The 

language is consistent with other NRCS 

conservation programs. Subparagraph 

1465.25(c)(2)(A) is revised to clarify that 

hardship claims must be well 

documented and must result from 

conditions that did not exist prior to 

application to the program. This 

revision is consistent with related 

conservation programs administered by 

NRCS. 

Subpart C—General Administration 

Section 1465.30, Appeals 

Section 1465.30, ‘‘Appeals,’’ 

references the policies that govern when 

a producer seeks an appeal to an 

adverse decision made by NRCS. NRCS 

has not made any substantive changes to 

this section, other than formatting. The 

following formatting changes are made 

to § 1465.30: § 1465.30(b)(4)(i) through 

§ 1465.30(b)(4)(iii) are redesignated as 

§ 1465.30(b)(4)(A), § 1465.30(b)(4)(B), 

and § 1465.30(b)(4)(C), respectively. 

Section 1465.31, Compliance With 

Regulatory Measures 

No changes have been made in this 

section. 


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Section 1465.32, Access to Operating 

Unit 

Section 1465.32, ‘‘Access to operating 

unit,’’ provides notice to applicants, 

participants, and the public that NRCS 

has the right to enter an operating unit 

or tract for the purpose of ascertaining 

the accuracy of any representations 

related to contract performance. Section 

1465.32 is amended to notify potential 

AMA applicants that an authorized 

NRCS representative may enter an 

agricultural operation for the purposes 

of eligibility determinations. NRCS will 

continue to provide the participant 

notice, prior to entering the property. 

Section 1465.33, Equitable Relief 

The caption of § 1465.33 is changed 

from ‘‘Performance based upon advice 

or action or representatives of NRCS’’ to 

‘‘Equitable relief’’ to be consistent with 

related NRCS-administered 

conservation programs. Section 1465.33, 

‘‘Equitable relief,’’ outlines the policy 

when a participant relies upon 

erroneous advice provided by NRCS. 

Specifically, § 1465.33 is divided into 

two paragraphs. Paragraph 1465.33(b) is 

revised to add that any action the 

participant has taken based on the 

advice of a certified TSP is the 

responsibility of that certified TSP. The 

language clarifies program 

administration and is consistent with 

other NRCS conservation programs. 

Paragraph 1465.33(c) clarifies that 

AMA participants who acted in good 

faith based on erroneous information 

provided by NRCS or its representatives 

may be entitled to equitable relief. This 

revision makes AMA consistent with 

other conservation programs 

administered by NRCS. 

Section 1465.34, Offsets and 

Assignments 

Section 1465.34, ‘‘Offsets and 

assignments,’’ governs offsets and 

withholdings, as well as assignment of 

payments. The term ‘‘person’’ is 

changed to ‘‘participant’’ to reflect that 

this policy applies to persons, joint 

operations, and legal entities who are 

party to an AMA contract. 

Section 1465.35, Misrepresentation and 

Scheme or Device 

Section 1465.35, ‘‘Misrepresentation 

and scheme or device,’’ outlines the 

policies governing producers who have 

erroneously or fraudulently represented 

themselves. Section 1465.35 is revised 

to improve transparency related to the 

participant actions and consequences of 

engaging in misrepresentation or 

scheme or device. This revision aligns 

AMA with other NRCS conservation 

programs. 

Paragraph 1465.35(b) expands on the 

actions that may be deemed 

misrepresentation or scheme or device 

to include any action intended to 

deprive a tenant or sharecropper of 

entitled payments. These revisions are 

consistent with other NRCS 

conservation programs. 

Paragraph 1465.35(c) is added to 

clarify that if paragraphs § 1465.35(a) or 

§ 1465.35(b) apply to a participant, their 

interest in all contracts will be 

terminated and they may be determined 

ineligible for future funding from any 

NRCS conservation programs. 

Section 1465.36, Environmental 

Services Credits for Conservation 

Improvements 

Section 1465.36 is added to provide 

clarity related to environmental credits 

that may be produced on lands under 

AMA contracts. It establishes that NRCS 

asserts no interest in credits earned, but 

that the Agency retains the authority to 

ensure that the requirements for AMAfunded improvements are met and 

maintained consistent with the terms of 

the contract. Where activities may affect 

the land covered by an AMA contract, 

participants are highly encouraged to 

request a compatibility assessment from 

NRCS prior to entering into any 

environmental credit agreements. This 

provision is consistent with other 

conservation programs administered by 

NRCS. 

List of Subjects in 7 CFR Part 1465 

Conservation contract, Conservation 

plan, Conservation practices, Soil and 

water conservation. 

■ For the reasons stated in the preamble, 

the Natural Resources Conservation 

Service revises Part 1465 of Title 7 of 

the Code of Federal Regulations to read 

as follows: 

PART 1465—AGRICULTURAL 

MANAGEMENT ASSISTANCE 

Subpart A—General Provisions 

Sec. 

1465.1 Purposes and applicability. 

1465.2 Administration. 

1465.3 Definitions. 

1465.4 National priorities. 

1465.5 Program requirements. 

1465.6 AMA plan of operations. 

1465.7 Conservation practices. 

Subpart B—Contracts 

1465.20 Applications for participation and 

selecting applications for contracting. 

1465.21 Contract requirements. 

1465.22 Conservation practice operation 

and maintenance. 

1465.23 Payments. 

1465.24 Contract modification, extension, 

and transfer of land. 

1465.25 Contract violations and 

termination. 

Subpart C—General Administration 

1465.30 Appeals. 

1465.31 Compliance with regulatory 

measures. 

1465.32 Access to operating unit. 

1465.33 Equitable relief. 

1465.34 Offsets and assignments. 

1465.35 Misrepresentation and scheme or 

device. 

1465.36 Environmental Services Credits for 

Conservation Improvements. 

Authority: 7 U.S.C. 1524(b). 

Subpart A—General Provisions 

§ 1465.1 Purposes and applicability. 

Through the Agricultural 

Management Assistance program 

(AMA), the Natural Resources 

Conservation Service (NRCS) provides 

financial assistance funds annually to 

producers in 16 statutorily designated 

States to: Construct or improve water 

management structures or irrigation 

structures; plant trees to form 

windbreaks or to improve water quality; 

and mitigate risk through production 

diversification or resource conservation 

practices, including soil erosion control, 

integrated pest management, or the 

transition to organic farming. AMA is 

applicable in Connecticut, Delaware, 

Hawaii, Maine, Maryland, 

Massachusetts, Nevada, New 

Hampshire, New Jersey, New York, 

Pennsylvania, Rhode Island, Utah, 

Vermont, West Virginia, and Wyoming. 

§ 1465.2 Administration. 

(a) Administration and 

implementation of the conservation 

provisions of AMA for the Commodity 

Credit Corporation (CCC) is assigned to 

the NRCS, using the funds, facilities, 

and authorities of the CCC. Accordingly, 

where NRCS is mentioned in this Part, 

it also refers to the CCC’s funds, 

facilities, and authorities, where 

applicable. 

(b) NRCS will: 

(1) Provide overall management and 

implementation leadership for AMA; 

(2) Establish policies, procedures, 

priorities, and guidance for 

implementation; 

(3) Establish payment limits; 

(4) Determine eligible practices; 

(5) Develop and approve AMA plans 

of operation and contracts with selected 

participants; 

(6) Provide technical leadership for 

implementation, quality assurance, and 

evaluation of performance; 

(7) Make funding decisions and 

determine allocations of AMA funds; 

and 

(8) Issue payments for conservation 

practices completed. 


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(c) No delegation in this part to lower 

organizational levels shall preclude the 

Chief of NRCS from determining any 

issues arising under this Part or from 

reversing or modifying any 

determination made under this Part. 

§ 1465.3 Definitions. 

The following definitions apply to 

this part and all documents used in 

accordance with this part, unless 

specified otherwise: 

Agricultural land means cropland, 

grassland, rangeland, pasture, and other 

agricultural land on which agricultural 

or forest-related products or livestock 

are produced. Other agricultural lands 

may include cropped woodland, 

marshes, incidental areas included in 

the agricultural operation, and other 

types of agricultural land used for 

production of livestock. 

Agricultural operation means a parcel 

or parcels of land whether contiguous or 

noncontiguous, which the producer is 

listed as the operator or owner/operator 

in the Farm Service Agency (FSA) 

record system, which is under the 

effective control of the producer at the 

time the producer applies for a contract, 

and which is operated by the producer 

with equipment, labor, management, 

and production, forestry, or cultivation 

practices that are substantially separate 

from other operations. 

AMA plan of operations (APO) means 

the document that identifies the 

location and timing of conservation 

practices that the participant agrees to 

implement on eligible land in order to 

address the resource concerns and 

program purposes. The APO is part of 

the AMA contract. 

Applicant means a person, legal 

entity, or joint operation that has an 

interest in an agricultural operation, as 

defined in 7 CFR 1400, who has 

requested in writing to participate in 

AMA. 

Beginning farmer or rancher means a 

person or legal entity who: 

(1) Has not operated a farm or ranch, 

or who has operated a farm or ranch for 

not more than 10 consecutive years. 

This requirement applies to all members 

of an entity who will materially and 

substantially participate in the 

operation of the farm or ranch. 

(2) In the case of a contract with an 

individual, individually or with the 

immediate family, material and 

substantial participation requires that 

the individual provide substantial dayto-day labor and management of the 

farm or ranch, consistent with the 

practices in the county or State where 

the farm or ranch is located. 

(3) In the case of a contract with an 

entity or joint operation, all members 

must materially and substantially 

participate in the operation of the farm 

or ranch. Material and substantial 

participation requires that each of the 

members provide some amount of the 

management, or labor and management 

necessary for day-to-day activities, such 

that if each of the members did not 

provide these inputs, operation of the 

farm or ranch would be seriously 

impaired. 

Chief means the Chief of NRCS, 

United States Department of Agriculture 

(USDA), or designee. 

Conservation district means any 

district or unit of State, Tribal, or local 

government formed under State, Tribal, 

or territorial law for the express purpose 

of developing and carrying out a local 

soil and water conservation program. 

Such district or unit of government may 

be referred to as a ‘‘conservation 

district,’’ ‘‘soil conservation district,’’ 

‘‘soil and water conservation district,’’ 

‘‘resource conservation district,’’ 

‘‘natural resource district,’’ ‘‘land 

conservation committee,’’ or similar 

name. 

Conservation practice means one or 

more conservation improvements and 

activities, including structural practices, 

land management practices, vegetative 

practices, forest management, and other 

improvements that achieve program 

purposes. 

Contract means a legal document that 

specifies the rights and obligations of 

any participant accepted into the 

program. An AMA contract is a binding 

agreement for the transfer of assistance 

from USDA to the participant to share 

in the costs of applying conservation 

practices. 

Designated conservationist means an 

NRCS employee whom the State 

Conservationist has designated as 

responsible for AMA administration in 

a specific area. 

Historically underserved producer 

means an eligible person, joint 

operation, or legal entity who is a 

beginning farmer or rancher, socially 

disadvantaged farmer or rancher, or 

limited resource farmer or rancher. 

Indian land is an inclusive term 

describing all lands held in trust by the 

United States for individual Indians or 

Tribes, or all lands, titles to which are 

held by individual Indians or Tribes, 

subject to Federal restrictions against 

alienation or encumbrance, or all lands 

which are subject to the rights of use, 

occupancy and/or benefit of certain 

Tribes. For purposes of this Part, the 

term Indian land also includes land for 

which the title is held in fee status by 

Indian tribes, and the U.S. Governmentowned land under the Bureau of Indian 

Affairs jurisdiction. 

Indian Tribe means any Indian tribe, 

band, nation, or other organized group 

or community, including any Alaska 

Native village or regional or village 

corporation as defined in or established 

pursuant to the Alaska Native Claims 

Settlement Act (43 U.S.C. 1601 et seq.) 

that is eligible for the special programs 

and services provided by the United 

States to Indians because of their status 

as Indians. 

Joint operation means, as defined in 7 

CFR part 1400, a general partnership, 

joint venture, or other similar business 

arrangement in which the members are 

jointly and severally liable for the 

obligations of the organization. 

Legal entity means, as defined in 7 

CFR part 1400, an entity created under 

Federal or State law that: 

(1) Owns land or an agricultural 

commodity, product, or livestock; or 

(2) Produces an agricultural 

commodity, product, or livestock. 

Lifespan means the period of time in 

which a conservation practice should be 

operated and maintained and used for 

the intended purpose. 

Limited resource farmer or rancher 

means: 

(1) A person with direct or indirect 

gross farm sales of not more than 

$155,200 in each of the previous two 

years (adjusted for inflation using the 

Prices Paid by Farmer Index as 

compiled by the National Agricultural 

Statistics Service), and 

(2) Has a total household income at or 

below the national poverty level for a 

family of four, or less than 50 percent 

of county median household income in 

each of the previous two years (to be 

determined annually using Commerce 

Department data). 

Liquidated damages means a sum of 

money stipulated in the AMA contract 

that the participant agrees to pay NRCS 

if the participant fails to adequately 

complete the terms of the contract. The 

sum represents an estimate of the 

expenses incurred to service the 

contract and reflects the difficulties of 

proof of loss and the inconvenience or 

non-feasibility of otherwise obtaining an 

adequate remedy. 

Livestock means all animals produced 

on farms and ranches, as determined by 

the Chief. 

Natural Resources Conservation 

Service (NRCS) is an agency of the 

USDA, which has responsibility for 

administering AMA using the funds, 

facilities, and authorities of the CCC. 

Nonindustrial private forest land 

means rural land that has existing tree 

cover or is suitable for growing trees; 

and is owned by any nonindustrial 

private individual, group, association, 

corporation, Indian Tribe, or other 


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private legal entity that has definitive 

decision-making authority over the 

land. 

Operation and maintenance means 

work performed by the participant to 

keep the applied conservation practice 

functioning for the intended purpose 

during the conservation practice 

lifespan. Operation includes the 

administration, management, and 

performance of non-maintenance 

actions needed to keep the completed 

practice safe and functioning as 

intended. Maintenance includes work to 

prevent deterioration of the practice, 

repairing damage, or replacement of the 

practice to its original condition if one 

or more components fail. 

Operation and maintenance (O&M) 

agreement means the document that, in 

conjunction with the APO, specifies the 

operation and maintenance 

responsibilities of the participants for 

conservation practices installed with 

AMA assistance. 

Participant means a person, legal 

entity, or joint operation who is 

receiving payment or is responsible for 

implementing the terms and conditions 

of an AMA contract. 

Payment means the financial 

assistance provided to the participant 

based on the estimated costs incurred in 

performing or implementing 

conservation practices, including costs 

for: Planning, design, materials, 

equipment, installation, labor, 

maintenance, management, or training, 

as well as the estimated income 

foregone by the producer for the 

designated conservation practices. 

Person means, as defined in 7 CFR 

part 1400, an individual, natural person 

and does not include a legal entity. 

Producer means a person, legal entity, 

or joint operation who has an interest in 

the agricultural operation, according to 

7 CFR part 1400, or who is engaged in 

agricultural production or forestry 

management. 

Resource concern means a specific 

natural resource problem that represents 

a significant concern in a State or region 

and is likely to be addressed 

successfully through the 

implementation of the conservation 

practices by producers. 

Secretary means the Secretary of the 

USDA. 

Socially disadvantaged farmer or 

rancher means a farmer or rancher who 

has been subjected to racial or ethnic 

prejudices because of their identity as a 

member of a group without regard to 

their individual qualities. 

State Conservationist means the 

NRCS employee authorized to direct 

and supervise NRCS activities in a State, 

the Caribbean Area, or the Pacific Island 

Area. 

Structural practice means a 

conservation practice, including a 

vegetative practice, that involves 

establishing, constructing, or installing a 

site-specific measure to conserve and 

protect a resource from degradation, or 

improve soil, water, air, or related 

natural resources in the most costeffective manner. Examples include, but 

are not limited to, animal waste 

management facilities, terraces, grassed 

waterways, tailwater pits, livestock 

water developments, contour grass 

strips, filterstrips, critical area plantings, 

tree plantings, establishment or 

improvement of wildlife habitat, and 

capping of abandoned wells. 

Technical assistance means technical 

expertise, information, and tools 

necessary for the conservation of natural 

resources on land active in agricultural, 

forestry, or related uses. The term 

includes the following: (1) Technical 

services provided directly to farmers, 

ranchers, and other eligible entities, 

such as conservation planning, 

technical consultation, and assistance 

with design and implementation of 

conservation practices; and (2) technical 

infrastructure, including activities, 

processes, tools, and agency functions 

needed to support delivery of technical 

services, such as technical standards, 

resource inventories, training, data, 

technology, monitoring, and effects 

analyses. 

Technical Service Provider (TSP) 

means an individual, private-sector 

entity, or public agency certified by 

NRCS to provide technical services to 

program participants or in lieu of or on 

behalf of NRCS. 

§ 1465.4 National priorities. 

(a) The Chief, with advice from State 

Conservationists, will identify national 

priorities to achieve the conservation 

objectives of AMA. 

(b) National priorities will be used to 

guide annual funding allocations to 

States. 

(c) State Conservationists will use 

national priorities in conjunction with 

State and local priorities to prioritize 

and select AMA applications for 

funding. 

(d) NRCS will undertake periodic 

reviews of the national priorities and 

the effects of program delivery at the 

State and local level to adapt the 

program to address emerging resource 

issues. 

§ 1465.5 Program requirements. 

(a) Participation in AMA is voluntary. 

The participant, in cooperation with the 

local conservation district, applies for 

practice installation for the agricultural 

operation. The NRCS provides 

payments through contracts to apply 

needed conservation practices within a 

time schedule specified in the APO. 

(b) The Chief determines the funds 

available for financial assistance 

according to the purpose and projected 

cost for which the financial assistance is 

provided in a fiscal year. The Chief 

allocates the funds available to carry out 

AMA in consideration of national 

priorities established under § 1465.4. 

(c) To be eligible to participate in 

AMA, an applicant must: 

(1) Own or operate an agricultural 

operation within an applicable State, as 

listed in § 1465.1; 

(2) Provide NRCS with written 

evidence of ownership or legal control 

for the life of the proposed contract, 

including the O&M agreement. An 

exception may be made by the Chief: 

(i) In the case of land allotted by the 

Bureau of Indian Affairs (BIA), Tribal 

land, or other instances in which the 

Chief determines that there is sufficient 

assurance of control; or 

(ii) If the applicant is a tenant of the 

land involved in agricultural 

production, the applicant shall provide 

NRCS with the written concurrence of 

the landowner in order to apply a 

structural practice(s); 

(3) Submit an application form 

NRCS–CPA–1200, which is located 

electronically at http:// 

www.nrcs.usda.gov/programs/AMA/ 

index.html; 

(4) Agree to provide all information to 

NRCS determined to be necessary to 

assess the merits of a proposed project 

and to monitor contract compliance; 

(5) Provide a list of all members of the 

legal entity and embedded entities along 

with members’ tax identification 

numbers and percentage interest in the 

entity. Where applicable, American 

Indians, Alaska Natives, and Pacific 

Islanders may use another unique 

identification number for each 

individual eligible for payment; 

(6) Supply other information, as 

required by NRCS, to determine 

payment eligibility as established by 7 

CFR part 1400, Adjusted Gross Income 

(AGI); 

(7) With regard to any participant that 

utilizes a unique identification number 

as an alternative to a tax identification 

number will utilize only that identifier 

for any and all other AMA contracts to 

which the participant is a party. 

Violators will be considered to have 

provided fraudulent representation and 

be subject to full penalties of § 1465.25; 

(8) States, political subdivisions, and 

entities thereof will not be persons 

eligible for payment. Any cooperative 


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association of producers that markets 

commodities for producers shall not be 

considered to be a person eligible for 

payment; 

(9) Be in compliance with the terms 

of all other USDA-administered 

conservation program agreements to 

which the participant is a party; and 

(10) Develop and agree to comply 

with an APO and O&M agreement, as 

described in § 1465.3. 

(d) Land may only be considered for 

enrollment in AMA if NRCS determines 

that the land is: 

(1) Privately owned land; 

(2) Publicly owned land where: 

(i) The land is a working component 

of the participant’s agricultural and 

forestry operation; and 

(ii) The participant has control of the 

land for the term of the contract; and 

(iii) The conservation practices to be 

implemented on the public land are 

necessary and will contribute to an 

improvement in the identified resource 

concern that is on private land; or 

(3) The land is federally recognized 

Tribal, BIA allotted, or Indian land. 

§ 1465.6 AMA plan of operations. 

(a) All conservation practices in the 

APO must be approved by NRCS and 

developed and carried out in 

accordance with the applicable NRCS 

technical guidance. 

(b) The participant is responsible for 

implementing the APO. 

(c) The APO must include: 

(1) A description of the participant’s 

specific conservation and 

environmental objectives to be 

achieved; 

(2) To the extent practicable, the 

quantitative or qualitative goals for 

achieving the participant’s conservation 

and environmental objectives; 

(3) A description of one or more 

conservation practices in the 

conservation system, including 

conservation planning, design, or 

installation activities, to be 

implemented to achieve the 

conservation and environmental 

objectives; 

(4) A description of the schedule for 

implementing the conservation 

practices, including timing, sequence, 

operation, and maintenance; and 

(5) Information that will enable 

evaluation of the effectiveness of the 

plan in achieving the environmental 

objectives. 

(d) An APO may be modified in 

accordance with § 1465.24. 

§ 1465.7 Conservation practices. 

(a) The State Conservationist will 

determine the conservation practices 

eligible for AMA payments. To be 

considered eligible conservation 

practices, the practices must meet the 

purposes of the AMA as set out in 

§ 1465.1. A list of eligible practices will 

be available to the public. 

(b) The APO includes the schedule of 

operations, activities, and payment rates 

of the practices needed to solve 

identified natural resource concerns. 

Subpart B—Contracts 

§ 1465.20 Applications for participation 

and selecting applications for contracting. 

(a) Any producer who has eligible 

land may submit an application for 

participation in AMA at a USDA service 

center. Producers who are members of a 

joint operation shall file a single 

application for the joint operation. 

(b) NRCS will accept applications 

throughout the year. The State 

Conservationist will distribute 

information on the availability of 

assistance, national priorities, and the 

State-specific goals. Information will be 

provided that explains the process to 

request assistance. 

(c) The State Conservationist will 

develop ranking criteria and a ranking 

process to select applications, taking 

into account national, State, Tribal, and 

local priorities. 

(d) The State Conservationist or 

designated conservationist using a 

locally led process will evaluate, rank 

and select applications for contracting 

based on the State-developed ranking 

criteria and ranking process. 

(e) The State Conservationist or 

designated conservationist will work 

with the applicant to collect the 

information necessary to evaluate the 

application using the ranking criteria. 

§ 1465.21 Contract requirements. 

(a) In order for a participant to receive 

payments, the participant shall enter 

into a contract agreeing to implement 

one or more eligible conservation 

practices. Costs for technical services 

may be included in the contract. 

(b) An AMA contract will: 

(1) Incorporate by reference all 

portions of an agricultural operation 

receiving AMA assistance; 

(2) Be for a minimum duration of one 

year after completion of the last 

practice, but not more than 10 years; 

(3) Incorporate all provisions as 

required by law or statute, including 

participant requirements to: 

(i) Not conduct any practices on the 

agricultural operation that would tend 

to defeat the purposes of the contract 

according to § 1465.25; 

(ii) Refund any AMA payments 

received with interest, and forfeit any 

future payments under AMA, on the 

violation of a term or condition of the 

contract, consistent with the provisions 

of § 1465.25; 

(iii) Refund all AMA payments 

received on the transfer of the right and 

interest of the producer in land subject 

to the contract, unless the transferee of 

the right and interest agrees to assume 

all obligations, including operation and 

maintenance of the AMA contract’s 

conservation practices, consistent with 

the provisions of § 1465.24; and 

(iv) Supply information as required by 

NRCS to determine compliance with the 

contract and requirements of AMA. 

(4) Specify the participant’s 

requirements for operation and 

maintenance of the applied 

conservation practices consistent with 

the provisions of § 1465.22; and 

(5) Specify any other provision 

determined necessary or appropriate by 

NRCS. 

(c) The participant must apply the 

practice(s) according to the schedule set 

out in the APO. 

§ 1465.22 Conservation practice operation 

and maintenance. 

(a) The contract will incorporate the 

O&M agreement that describes the 

lifespan and operation and maintenance 

of the conservation practices applied 

under the contract. 

(b) The O&M agreement incorporates 

the Agency expectation that the 

participant will operate and maintain 

the conservation practice(s) installed 

under the contract for its intended 

purpose for the lifespan of the 

conservation practice, as specified in 

the O&M agreement. 

(c) NRCS may periodically inspect the 

conservation practice(s) during the 

contract duration to ensure that 

operation and maintenance 

requirements are being carried out, and 

that the conservation practice is 

fulfilling its intended objectives. 

(d) Conservation practices installed 

before the contract execution, but 

included in the contract to obtain the 

environmental benefits agreed upon, 

must be operated and maintained as 

specified in the contract and O&M 

agreement. 

§ 1465.23 Payments. 

(a) The Federal share of payments to 

a participant will be: 

(1) Up to 75 percent of the estimated 

incurred cost or 100 percent of the 

estimated income foregone of an eligible 

practice, except as provided in 

paragraph (a)(2) of this section. 

(2) In the case of historically 

underserved producers, the payment 

rate will be the applicable rate and an 

additional rate that is not less than 25 


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percent above the applicable rate, 

provided that this increase does not 

exceed 90 percent of the estimated 

incurred costs or estimated income 

foregone. 

(3) In no instance shall the total 

financial contributions for an eligible 

practice from other sources exceed 100 

percent of the estimated incurred cost of 

the practice. 

(b) Participants may contribute their 

portion of the estimated costs of 

practices through in-kind contributions, 

including labor and materials, providing 

the materials contributed meet the 

NRCS standard and specifications for 

the practice being installed. 

(c) Payments for practices applied 

prior to application or contract 

approval— 

(1) Payments will not be made to a 

participant for a conservation practice 

that was applied prior to application for 

the program. 

(2) Payments will not be made to a 

participant for a conservation practice 

that was initiated or implemented prior 

to contract approval, unless the 

participant obtained a waiver from the 

State Conservationist or designated 

conservationist prior to practice 

implementation 

(d) The total amount of payments paid 

to a participant under this Part may not 

exceed $50,000 for any fiscal year. 

(e) For purposes of applying the 

payment limitations provided for in this 

section, NRCS will use the provisions in 

7 CFR part 1400, Payment Limitation 

and Payment Eligibility. 

(f) A participant will not be eligible 

for payments for conservation practices 

on eligible land if the participant 

receives payments or other benefits for 

the same practice on the same land 

under any other conservation program 

administered by USDA. 

(g) The participant and NRCS must 

certify that a conservation practice is 

completed in accordance with the 

contract before NRCS will approve any 

Payment. 

(h) Subject to fund availability, the 

payment rates for conservation practices 

scheduled after the year of contract 

obligation may be adjusted to reflect 

increased costs. 

§ 1465.24 Contract modifications, 

extensions, and transfers of land. 

(a) The participant and NRCS may 

modify a contract if both parties agree 

to the contract modification, the APO is 

revised in accordance with NRCS 

requirements, and the designated 

conservationist approves the modified 

contract. 

(b) It is the participant’s responsibility 

to notify NRCS when he/she either 

anticipates the voluntary or involuntary 

loss of control of the land. 

(c) The participant and NRCS may 

mutually agree to transfer a contract to 

another party. 

(1) To receive an AMA payment, the 

transferee must be determined by NRCS 

to be eligible to participate in AMA and 

shall assume full responsibility under 

the contract, including the O&M 

agreement for those conservation 

practices already installed and those 

conservation practices to be installed as 

a condition of the contract. 

(2) With respect to any and all 

payment owed to participants who wish 

to transfer ownership or control of land 

subject to a contract, the division of 

payment shall be determined by the 

original party and the party’s successor. 

In the event of a dispute or claim on the 

distribution of payments, NRCS may 

withhold payments without the accrual 

of interest pending a settlement or 

adjudication on the rights to the funds. 

(d) NRCS may require a participant to 

refund all or a portion of any assistance 

earned under AMA if the participant 

sells or loses control of the land under 

an AMA contract and the successor in 

interest is not eligible or refuses to 

accept future payments to participate in 

the AMA or refuses to assume 

responsibility under the contract. 

(e) The participants to the contract 

shall be jointly and severally 

responsible for refunding the payments 

with applicable interest pursuant to 

paragraph (d) of this section. 

(f) In the event a conservation practice 

fails through no fault of the participant, 

the State Conservationist may issue 

payments to re-establish the 

conservation practice, at the rates 

established in accordance with 

§ 1465.23, provided such payments do 

not exceed the payment limitation 

requirements as set forth in § 1465.23. 

§ 1465.25 Contract violations and 

termination. 

(a) If NRCS determines that a 

participant is in violation of the terms 

of a contract, O&M agreement, or 

documents incorporated by reference 

into the contract, NRCS shall give the 

participant notice and 60 days, unless 

otherwise determined by the State 

Conservationist, to correct the violation 

and comply with the terms of the 

contract and attachments thereto. If a 

participant continues in violation, the 

State Conservationist may terminate the 

AMA contract. 

(b) Notwithstanding the provisions of 

paragraph (a) of this section, a contract 

termination shall be effective 

immediately upon a determination by 

the State Conservationist that the 

participant has submitted false 

information or filed a false claim, or 

engaged in any act, scheme, or device 

for which a finding of ineligibility for 

payments is permitted under the 

provisions of § 1465.35, or in a case in 

which the actions of the party involved 

are deemed to be sufficiently purposeful 

or negligent to warrant a termination 

without delay. 

(c) If NRCS terminates a contract, the 

participant shall forfeit all rights to 

future payments under the contract and 

refund all or part of the payments 

received, plus interest. Participants 

violating AMA contracts may be 

determined ineligible for future NRCSadministered conservation program 

funding. 

(1) The State Conservationist may 

require only a partial refund of the 

payments received if the State 

Conservationist determines that a 

previously installed conservation 

practice can function independently, is 

not affected by the violation or the 

absence of other conservation practices 

that would have been installed under 

the contract, and the participant agrees 

to operate and maintain the installed 

conservation practice for the life span of 

the practice. 

(2) If NRCS terminates a contract due 

to breach of contract or the participant 

voluntarily terminates the contract 

before any contractual payments have 

been made, the participant shall forfeit 

all rights for further payments under the 

contract and shall pay such liquidated 

damages as prescribed in the contract. 

The State Conservationist will have the 

option to waive the liquidated damages 

depending upon the circumstances of 

the case. 

(i) When making all contract 

termination decisions, NRCS may 

reduce the amount of money owed by 

the participant by a proportion that 

reflects the good faith effort of the 

participant to comply with the contract 

or the existence of hardships beyond the 

participant’s control that have 

prevented compliance with the contract. 

If the participant claims hardship, that 

claim must be well documented and 

cannot have existed when the applicant 

applied for participation in the program. 

(ii) The participant may voluntarily 

terminate a contract if NRCS agrees 

based on NRCS’s determination that 

termination is in the public interest. 

(iii) In carrying out NRCS’s role in 

this section, NRCS may consult with the 

local conservation district. 


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70256 Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 / Rules and Regulations 

Subpart C—General Administration 

§ 1465.30 Appeals. 

(a) A participant may obtain 

administrative review of an adverse 

decision under AMA in accordance 

with 7 CFR parts 11 and 614, except as 

provided in paragraph (b) of this 

section. 

(b) The following decisions are not 

appealable: 

(1) Payment rates, payment limits; 

(2) Funding allocations; 

(3) Eligible conservation practices; 

and 

(4) Other matters of general 

applicability, including: 

(i) Technical standards and formulas; 

(ii) Denial of assistance due to lack of 

funds or authority; or 

(iii) Science-based formulas and 

criteria. 

§ 1465.31 Compliance with regulatory 

measures. 

Participants who carry out 

conservation practices shall be 

responsible for obtaining the authorities, 

rights, easements, permits, or other 

approvals necessary for the 

implementation, operation, and 

maintenance of the conservation 

practices in keeping with applicable 

laws and regulations. Participants shall 

be responsible for compliance with all 

laws and for all effects or actions 

resulting from the participant’s 

performance under the contract. 

§ 1465.32 Access to operating unit. 

Any authorized NRCS representative 

shall have the right to enter an operating 

unit or tract for the purpose of 

determining eligibility and for 

ascertaining the accuracy of any 

representations related to contracts and 

performance. Access shall include the 

right to provide technical assistance; 

determine eligibility; inspect any work 

undertaken under the contracts, 

including the APO and O&M agreement; 

and collect information necessary to 

evaluate the conservation practice 

performance as specified in the 

contracts. The NRCS representative 

shall make an effort to contact the 

participant prior to exercising this 

provision. 

§ 1465.33 Equitable relief. 

(a) If a participant relied upon the 

advice or action of any authorized NRCS 

representative and did not know, or 

have reason to know, that the action or 

advice was improper or erroneous, the 

State Conservationist may grant relief to 

the extent it is deemed appropriate by 

NRCS. Where a participant believes that 

detrimental reliance on the advice or 

action of a NRCS representative resulted 

in an ineligibility or program violation, 

the participant may request equitable 

relief under 7 CFR part 635. 

(b) The financial or technical liability 

for any action by a participant that was 

taken based on the advice of an NRCS 

certified non-USDA TSP is the 

responsibility of the certified TSP and 

will not be assumed by NRCS when 

NRCS authorizes payment. 

(c) If, during the term of an AMA 

contract, a participant has been found in 

violation of a provision of the contract, 

the O&M agreement, or any document 

incorporated by reference through 

failure to fully comply with that 

provision, the participant may be 

eligible for equitable relief under 7 CFR 

part 635. 

§ 1465.34 Offsets and assignments. 

(a) Except as provided in paragraph 

(b) of this section, any payment or 

portion thereof to any participant shall 

be made without regard to questions of 

title under State law and without regard 

to any claim or lien against the crop, or 

proceeds thereof, in favor of the owner 

or any other creditor except agencies of 

the United States Government. The 

regulations governing offsets and 

withholdings found at 7 CFR part 1403 

shall be applicable to contract 

payments. 

(b) AMA participants may assign any 

payments in accordance with 7 CFR part 

1404. 

§ 1465.35 Misrepresentation and scheme 

or device. 

(a) A participant who is determined to 

have erroneously represented any fact 

affecting an AMA determination made 

in accordance with this part shall not be 

entitled to contract payments and must 

refund to NRCS all payments plus 

interest, as determined in accordance 

with 7 CFR part 1403. 

(b) A participant shall refund to NRCS 

all payments, plus interest, as 

determined by NRCS, with respect to all 

NRCS contracts to which they are a 

party if they are determined to have 

knowingly: 

(1) Adopted any scheme or device 

that tends to defeat the purpose of 

AMA; 

(2) Made any fraudulent 

representation; 

(3) Adopted any scheme or device for 

the purpose of depriving any tenant or 

sharecropper of the payments to which 

such person would otherwise be 

entitled under the program; or 

(4) Misrepresented any fact affecting 

an AMA determination. 

(c) Where paragraph (a) or paragraph 

(b) of this section apply, the 

participant’s interest in all contracts 

shall be terminated. In accordance with 

§ 1465.25(c), NRCS may determine the 

producer ineligible for future funding 

from any NRCS conservation programs. 

§ 1465.36 Environmental Services Credits 

for Conservation Improvements. 

USDA recognizes that environmental 

benefits will be achieved by 

implementing conservation practices 

funded through AMA, and that 

environmental credits may be gained as 

a result of implementing activities 

compatible with the purposes of an 

AMA contract. NRCS asserts no direct 

or indirect interest on these credits. 

However, NRCS retains the authority to 

ensure that the requirements for AMA 

funded improvements are met and 

maintained consistent with § 1465.22. 

Where activities required under an 

environmental credit agreement may 

affect land covered under an AMA 

contract, participants are highly 

encouraged to request a compatibility 

assessment from NRCS prior to entering 

into such agreements. 

Dated: November 12, 2008. 

Arlen L. Lancaster, 

Vice President, Commodity Credit 

Corporation and Chief, Natural Resources 

Conservation Service. 

[FR Doc. E8–27398 Filed 11–19–08; 8:45 am] 

BILLING CODE 3410–05–P 

DEPARTMENT OF AGRICULTURE 

Animal and Plant Health Inspection 

Service 

9 CFR Part 93 

[Docket No. APHIS–2008–0108] 

Remove South Carolina From the Lists 

of States Approved To Receive 

Stallions and Mares From CEMAffected Regions 

AGENCY: Animal and Plant Health 

Inspection Service, USDA. 

ACTION: Final rule. 

SUMMARY: We are amending the animal 

importation regulations by removing 

South Carolina from the lists of States 

approved to receive certain stallions and 

mares imported into the United States 

from regions affected with contagious 

equine metritis. This action is necessary 

because South Carolina no longer offers 

contagious equine metritis quarantine or 

treatment services and has requested 

removal from the lists. 

DATES: Effective Date: November 20, 

2008. 

FOR FURTHER INFORMATION CONTACT: Dr. 

Ellen Buck, Senior Staff Veterinarian, 


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