U. S. DEPARTMENT OF AGRICULTURE

NATURAL RESOURCES CONSERVATION SERVICE (NRCS) 

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

February 2021 1

General Contract Provisions

1. DEFINITIONS

A. 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. 

i. Contract or CPC.—The program documents, including Form NRCS-CPA-1202, “Conservation 

Program Contract”; the Appendix to Form NRCS-CPA-1202; Form NRCS-CPA-1155, 

“Conservation Plan or Schedule of Operations”; Form NRCS-CPA-1156, “Revision of 

Plan/Schedule of Operations or Modification of a Contract”; and Form NRCS-CPA-152, “CPC 

Transfer Agreement.” The contract sets forth the terms and conditions for program 

participation for the program identified in this Appendix.

ii. The Natural Resources Conservation Service or NRCS.—An agency of the United States 

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. 

iii. 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 non-compliance with 7 CFR Part

12, “Highly Erodible Land and Wetland Conservation.” 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 2021 2

3. AGREEMENT

A. The participant agrees to—

i. Enroll eligible land into the program for the period of time as specified on Form NRCS-CPA1202 beginning on the date this contract is executed by NRCS;

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

iii. 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;

iv. Complete 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. 

v. Install conservation practices and activities according to the implementation 

requirements, designs, constructions plans, or other documents in order to meet the 

applicable NRCS technical criteria, and if not in possession of such information, contact 

your local office before installing your conservation practices and activities

vi. 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;

vii. 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;

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

the purposes of this contract, as determined by NRCS;

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

executed by NRCS, unless NRCS approves a waiver;

x. Complete and file Form CCC-902, “Farm Operating Plan,” and as needed Form CCC-901,

“Member’s Information,” as required by USDA under 7 CFR Part 1400, “Payment 

Limitation and Payment Eligibility.” participants also agree to maintain updated 

information with the Farm Service Agency as provided in 7 CFR Part 1400.

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

xii. File Form CCC-941, “Average AGI Certification and Consent to Disclosure of Tax 

Information,” required by USDA for Adjusted Gross Income (AGI) determinations. 

xiii. Provide to NRCS, upon request, completed Form NRCS-CPA-1257 “Landowner 

Concurrence for Structural or Vegetative Activities,” or other written concurrence from 

the landowner that identifies the participant has authority to install structural or vegetative 
U. S. DEPARTMENT OF AGRICULTURE

NATURAL RESOURCES CONSERVATION SERVICE (NRCS) 

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

February 2021 3

conservation practices or activities.

xiv. File Form NRCS-CPA-1245, “Practice Approval and Payment Application,” upon 

completion of a contracted conservation practice or activity, in order to receive payment.

xv. 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 Office of the Inspector General or the 

Comptroller General, through any authorized representative, access to and the right to 

examine all records, books, papers, or documents related to this contract; and

xvi. Allow access to the land under contract to the NRCS representative, or its representative, 

for monitoring progress on this contract. NRCS shall provide reasonable notification to 

the participant prior to entering the land under contract.

xvii. Not engage the services of a certified technical service provider (TSP) before this contract 

is executed by NRCS. If interested in obtaining funds for TSP services, the participant

must make a request to NRCS. NRCS will determine if funds are available for TSP 

services and will work with the participant to modify the contract accordingly. Under no 

circumstances will NRCS reimburse participants for TSP services obtained prior to 

approval of such reimbursement under the contract. The participant must submit invoices 

from the certified TSP for the work performed and any other documentation needed for 

NRCS to determine the technical services were completed in accordance with NRCS 

requirements. The participant is responsible for ensuring that the TSP services meet 

program requirements. NRCS may seek repayment of any TSP payments made to the 

participant if NRCS terminates this contract, as provided under paragraphs 6 and 7 of this 

Appendix.

xviii. Conduct business with NRCS employees and representatives in a respectful manner and 

ensure safety of NRCS employees and representatives while on site. 

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

i. 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. This contract is a financial assistance agreement, not a procurement 

contract. As such, it is not subject to 5 CFR Part 1315, “Prompt Payment,” and is governed 

by the terms set forth herein. 

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

implemented. NRCS will approve payments based on the payment rate and extent 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;

iii. Approve payments submitted on Form NRCS-CPA-1245 based upon the shares to which 

the parties have agreed as set forth on Form NRCS-CPA-1202.
U. S. DEPARTMENT OF AGRICULTURE

NATURAL RESOURCES CONSERVATION SERVICE (NRCS) 

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

February 2021 4

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.

i. 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.

ii. 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.

iii. 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. When NRCS approves a contract transfer, the transferee 

accepts all rights and responsibilities, including the right to payment for activities and 

practices implemented on the transferred land.

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. 
U. S. DEPARTMENT OF AGRICULTURE

NATURAL RESOURCES CONSERVATION SERVICE (NRCS) 

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

February 2021 5

B. 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.

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 in accordance with paragraph 5 above. 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. NRCS will issue payment and 

approve transfers in accordance with guidance provided in applicable provisions of 7 CFR Parts 

707, “Payments Due Persons Who Have Died, Disappeared, or Have Been Declared

Incompetent,” and 1400 as determined by NRCS. If the estate or authorized representative is 

identified by operation of State law, in a court-approved document, or a will, the estate or other 

authorized representative will be considered as appointed by the participant under the terms of the 

contract appendix. The term “estate representative” also refers to the heirs where the operation of 

law does not require the establishment of a formal estate.

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 3 “Debt Management.” 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.

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
U. S. DEPARTMENT OF AGRICULTURE

NATURAL RESOURCES CONSERVATION SERVICE (NRCS) 

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

February 2021 6

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

conditions exist:

A. 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.

B. 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, “National Appeals Division,” Subpart A, and part 614, 

“NRCS Appeal Procedures.” 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, “Equitable 

Relief from Ineligibility for Loans, Payments, or Other Benefits,” and 7 CFR Part 635 “Equitable 

Relief from Ineligibility.”

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. “Governmentwide Requirements for Drug-Free Workplace 

(Financial Assistance),” and 2 CFR 421, “Requirements for Drug-Free Workplace (Financial 

Assistance).” If it is later determined that the participant knowingly rendered a false certification, or 

otherwise violated the requirements of the Drug-Free 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.

13. CIVIL RIGHTS REQUIREMENTS

The participant agrees to follow proper rules and regulations in accordance with the requirements of 

Title VI of the Civil Rights Act of 1964; Title IX of the Education Amendment, 1972; Section 504 

Rehabilitation Act, 1973; Age Discrimination Act, 1975; and all other departmental rules and 

regulations, enforcing nondiscrimination in program delivery. 
U. S. DEPARTMENT OF AGRICULTURE

NATURAL RESOURCES CONSERVATION SERVICE (NRCS) 

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

February 2021 7

Agriculture Management Assistance (AMA) Provisions

1. GENERAL TERMS 

A. The regulations in 7 CFR Part 1465 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:

i. Conservation Plan and plan maps 

ii. Operation and Maintenance Plans, as applicable

2. PROGRAM ELIGIBILITY REQUIREMENTS

A. The participant must be an eligible producer as defined in 7 CFR Part 1465 for AMA.

B. AMA participants are not required to meet the highly erodible land (HEL) – wetland compliance 

(WC) provisions.

3. PAYMENT

A. Total payments made either directly or indirectly to a person or legal entity from NRCS, the Risk 

Management Agency (RMA), and the Agricultural Marketing Service (AMS) under the program 

may not exceed $50,000 in any fiscal year. By signing the program contract, AMA participants 

are certifying they will not receive payments directly or indirectly from NRCS, RMA, and AMS 

that exceed $50,000 in any fiscal year.

B. If the payment limitation is exceeded because of an NRCS error or otherwise, a refund is required 

from the participant for the amount exceeding the payment limitation.

C. Advance payments are not authorized under AMA.

D. Participants who are eligible for AMA and self-certify as meeting the requirements of any 

historically underserved (HU) designations are eligible for an increased payment rate.

4. PERIOD OF PERFORMANCE

This AMA contract shall have a term not to exceed 10 years from the date of contract execution as 

indicated on the Form NRCS-CPA-1202.

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. 

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U. S. DEPARTMENT OF AGRICULTURE

NATURAL RESOURCES CONSERVATION SERVICE (NRCS) 

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

February 2021 8

_______________________________________________________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.