Federal Register / Vol. 74, No. 144 / Wednesday, July 29, 2009 / Rules and Regulations 37499 

PART 922—APRICOTS GROWN IN 

DESIGNATED COUNTIES IN 

WASHINGTON 

■ 1. The authority citation for 7 CFR 

part 922 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 922.235 is revised to read 

as follows: 

§ 922.235 Assessment rate. 

On or after April 1, 2009, an 

assessment rate of $1.00 per ton is 

established for the Washington Apricot 

Marketing Committee. 

Dated: July 24, 2009. 

Rayne Pegg, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. E9–18108 Filed 7–28–09; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Commodity Credit Corporation 

7 CFR Part 1470 

RIN 0578–AA43 

Conservation Stewardship Program 

AGENCY: Commodity Credit Corporation, 

Natural Resources Conservation Service, 

United States Department of 

Agriculture. 

ACTION: Interim final rule with request 

for comment. 

SUMMARY: Section 2301 of the Food, 

Conservation, and Energy Act of 2008 

(the 2008 Act) amended the Food 

Security Act of 1985 to establish the 

Conservation Stewardship Program. The 

purpose of the Conservation 

Stewardship Program is to encourage 

producers to address resource concerns 

in a comprehensive manner by 

undertaking additional conservation 

activities, and improving, maintaining 

and managing existing conservation 

activities. This interim final rule, with 

request for comment, sets forth the 

policies, procedures, and requirements 

necessary to implement the 

Conservation Stewardship Program as 

authorized by the 2008 Act 

amendments. 

DATES: Effective Date: This interim final 

rule is effective July 29, 2009. 

Comment Date: Submit comments on 

or before September 28, 2009. 

ADDRESSES: You may send comments 

(identified by Docket Number NRCS– 

IFR–09004) using any of the following 

methods: 

• Government-wide rulemaking Web 

site: Go to http://regulations.gov and 

follow the instructions for sending 

comments electronically; 

• E-mail directly to NRCS: 

CSP2008@wdc.usda.gov; 

• Mail: Gregory Johnson, Director, 

Financial Assistance Programs Division, 

U.S. Department of Agriculture, Natural 

Resources Conservation Service, 1400 

Independence Avenue, SW., Room 

5237–S, Washington, DC 20250–2890; 

• Fax: (202) 720–4265; 

• Hand Delivery Room: USDA South 

Building, 1400 Independence Avenue, 

SW., Room 5237–S, 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 Building to call 

(202) 720–4527 in order to be escorted 

into the building; 

• This interim final rule may be 

accessed via the 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: 

Gregory Johnson, Director, Financial 

Assistance Programs Division, U.S. 

Department of Agriculture, Natural 

Resources Conservation Service, 1400 

Independence Avenue, SW., Room 

5237–S, Washington, DC 20250; Phone: 

(202) 720–1845; Fax: (202) 720–4265; or 

e-mail CSP2008@wdc.usda.gov. 

SUPPLEMENTARY INFORMATION: 

Regulatory Certifications 

Executive Order 12866 

Pursuant to Executive Order 12866 

(FR Doc. 93–24523, September 30, 

1993), this interim final rule with 

request for comment is an economically 

significant regulatory action since it 

results in an annual effect on the 

economy of $100 million or more. The 

administrative record is available for 

public inspection in Room 5831 of the 

South Building, USDA, 1400 

Independence Avenue, SW., 

Washington, DC. Pursuant to Executive 

Order 12866, NRCS conducted an 

economic analysis of the potential 

impacts associated with this program. A 

summary of the economic analysis can 

be found at the end of this preamble and 

a copy of the analysis is available upon 

request from Gregory Johnson, Director, 

Financial Assistance Programs Division, 

Natural Resources Conservation Service, 

Room 5237–S, Washington, DC 20250– 

2890 or electronically at: http:// 

www.nrcs.usda.gov/programs/csp/ 

under the CSP Rules and Notices with 

Supporting Documents title. 

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 

rulemaking with respect to the subject 

matter of this rule. 

Environmental Analysis 

Availability of the Environmental 

Assessment (EA) and Finding of No 

Significant Impact (FONSI). A 

programmatic environmental 

assessment has been prepared in 

association with this rulemaking. The 

analysis has determined that there will 

not be a significant impact to the human 

environment and as a result an 

Environmental Impact Statement is not 

required to be prepared (40 CFR part 

1508.13). The EA and FONSI are 

available for review and comment for 30 

days from the date of publication of this 

interim final rule in the Federal 

Register. A copy of the EA and FONSI 

may be obtained from the following 

Web site: http://www.nrcs.usda.gov/ 

programs/Env_Assess/. A hard copy 

may also be requested from the 

following address and contact: Matt 

Harrington, National Environmental 

Coordinator, Ecological Sciences 

Division, NRCS, 1400 Independence 

Ave., SW., Washington, DC 20250. 

Comments from the public should be 

specific and reference that comments 

provided are on the EA and FONSI. 

Public comment may be submitted by 

any of the following means: (1) E-mail 

comments to NEPA2008@wdc.usda.gov; 

(2) e-mail to e-gov Web site at http:// 

www.regulations.gov; or (3) written 

comments to: Matt Harrington, National 

Environmental Coordinator, Ecological 

Sciences Division, NRCS, 1400 

Independence Ave., SW., Washington, 

DC 20250. 

Civil Rights Impact Analysis 

NRCS has determined through a Civil 

Rights Impact Analysis that the interim 

final rule discloses no 

disproportionately adverse impacts for 

minorities, women, or persons with 

disabilities. The data presented 

indicates producers who are members of 

the protected groups have participated 

in NRCS conservation programs at 

parity with other producers. 

Extrapolating from historical 

participation data, it is reasonable to 

conclude that NRCS programs, 

including CSP, will continue to be 


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1An impact could be expected in cases where 

CSP funds activities that lead to large increases of 

certain environmental services and goods where 

those markets are beginning to get started. 

administered in a non-discriminatory 

manner. Outreach and communication 

strategies are in place to ensure all 

producers will be provided the same 

information to allow them to make 

informed compliance decisions 

regarding the use of their lands that will 

affect their participation in USDA 

programs. CSP applies to all persons 

equally regardless of their race, color, 

national origin, gender, sex, or disability 

status. Therefore, the CSP rule portends 

no adverse civil rights implications for 

women, minorities and persons with 

disabilities. 

Paperwork Reduction Act 

Section 2904 of the 2008 Act provides 

that the promulgation of regulations and 

the administration of Title II of the 2008 

Act, which contain the amendments 

that authorize CSP, shall be made 

without regard to chapter 35 of Title 44 

of the United States Code, also known 

as the Paperwork Reduction Act. 

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. 

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. The provisions of this 

interim final rule preempt State and 

local laws to the extent that 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 

614, 780, and 11 must be exhausted. 

Federal Crop Insurance Reform and 

Department of Agriculture 

Reorganization Act of 1994 

Section 304 of the Department of 

Agriculture Reorganization Act of 1994, 

Public Law 103–354, requires that a risk 

assessment be prepared in conjunction 

with any notice of proposed rulemaking 

for a major regulation. Pursuant to 

Section 2904 of the 2008 Act, NRCS is 

promulgating this interim final rule, and 

therefore, a risk assessment is not 

required. However, risks associated with 

the interim final rule have been assessed 

pursuant to the analysis prepared in 

compliance with Executive Order 

12866. 

Unfunded Mandates Reform Act of 1995 

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; therefore, a 

statement under section 202 of the 

Unfunded Mandates Reform Act of 1995 

is not required. 

Economic Analysis—Executive 

Summary 

Pursuant to Executive Order 12866, 

Regulatory Planning and Review, the 

Natural Resources Conservation Service 

(NRCS) conducted a cost-effectiveness 

analysis (CEA) of the Conservation 

Stewardship Program (CSP) as 

formulated for the interim final rule. 

This CEA describes how financial 

assistance (FA) and technical assistance 

(TA) are made available through CSP 

with the program objective being to 

have producers adopt additional 

conservation activities. The CEA 

attempts to compare the impact of these 

activities in generating environmental 

benefits with program costs. Many of 

these improvements can produce 

beneficial impacts concerning on-site 

resource conditions (such as the 

maintenance of the long-term 

productivity of their land), and can 

potentially produce significant off-site 

environmental benefits, such as reduced 

non-point source pollution, improved 

air quality due to lower carbon dioxide 

emissions, and enhanced wildlife 

habitat. 

In considering alternatives for 

implementing CSP, the United States 

Department of Agriculture (USDA) 

followed the legislative intent to 

establish a clear and transparent method 

and determine in an open participatory 

process, potential participants’ current 

level of conservation stewardship 

attainment levels in order to gauge their 

environmental impact and compare 

them. The CSP is a voluntary program, 

and therefore, the program is not 

expected to impose any obligation or 

burden upon agricultural producers and 

non-industrial private forestland owners 

who choose not to participate.1

Congress authorized the enrollment of 

12,769,000 acres for each fiscal year 

(FY) for the period beginning October 1, 

2008, and ending on September 30, 

2017. For fiscal years 2009 through 

2012, CSP has been authorized 

51,076,000 acres (four years multiplied 

by a 12,769,000 acre program cap per 

year). 

This analysis builds on the former 

Conservation Security Program 

introduced in 2004 with its foundation 

set in the Farm Security and Rural 

Investment Act of 2002, Public Law 

107–171 (2002 Farm Bill). While the 

spirit of both programs is similar, the 

main focus of the 2008 Act CSP is to 

assist landowners with adopting 

additional conservation enhancements. 

This focus is characterized by the 

emphasis placed on new enhancement 

activities selected by participants in the 

application ranking process. However, 

basic eligibility criteria and ranking will 

also consider the benchmark level of 

stewardship and planned conservation 

activities to be adopted (if needed in 

those cases where participants do not 

meet the stewardship threshold 

requirements). The environmental 

benefits expected to be generated by 

enhancement and maintenance 

activities are based on extrapolations of 

the environmental benefits generated 

from many traditional NRCS 

conservation practices (these are 

described in detail in Appendix B). 

However, while environmental impacts 

from many traditional NRCS 

conservation practices have been 

assessed, the impacts generated from 

enhancement and maintenance 

activities are not well understood. In 

conducting economic analyses where 

benefits are not well understood or 

difficult to measure, but costs are 

available, economists often turn to a 

cost-effectiveness analysis (CEA) 

framework over the more traditional 

benefit-cost analysis approach. The 

environmental impacts from 

enhancement and maintenance 

activities are not well understood, and 

therefore, NRCS is adopting the CEA 

approach for this CSP economic 

analysis. 

Methodology Employed in This Study 

As stated above, many conservation 

practices have been extensively studied, 

but similar studies pertaining to 

enhancement activities have not been 

conducted. As a result, estimation of a 

true baseline of environmental 

conditions before and after CSP 

implementation is not possible. The 

methodology employed in this study 

involves the modeling of baseline 

environmental conditions through 

Microsoft Access. The model is complex 


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2These remaining three ranking factors are: RF– 

2 is the degree to which treatment on priority 

resource concerns increases conservation 

performance by the end of the CSP contract; RF– 

3 is the number of priority resource concerns to be 

treated to meet or exceed threshold by the end of 

the CSP contract; and, RF–4 is the extent to which 

other resource concerns will be addressed to meet 

or exceed the stewardship threshold by the end of 

the CSP contract. These three ranking factors 

determine the level of ‘‘additionality’’ created 

through the new enhancement activities associated 

with the CSP contract, whereas the previous 

ranking factor establishes the benchmark level of 

conservation stewardship. 

because it is based on the major 

decision rules in the Conservation 

Measurement Tool (CMT). The CMT 

refers to the procedures developed by 

NRCS to estimate the existing and 

proposed conservation performance to 

be achieved by a producer. This model 

has a high degree of uncertainty because 

CSP is a new program and it is difficult 

to project the potential pool of 

applicants without historical enrollment 

data. This study’s model distills the 

basic rules of the CMT and couples it 

with a historical data on producer 

characteristics. These data include 

internal NRCS program data, past 

studies on conservation stewardship, 

other USDA data and information as 

well as expert opinion from agency 

technology and program specialists. 

This expert opinion was needed in 

making several key assumptions about 

expected producer response to CSP and 

in turn likely participation as well as 

resource response to conservation 

activities. The model applies questions, 

similar to those in the CMT, to a 

representative set of farms constructed 

with the historical data. Using 

simulated responses for the 

representative farms to the questions in 

the CMT regarding the applicant’s 

agriculture operation, the model 

predicts expected participation by landuse type and farm type along with 

expected program costs and 

conservation performance points. 

The responses can be grouped by 

CSP’s ranking factors. The first ranking 

factor, RF–1, is the level of conservation 

treatment on priority resource concerns 

at the time of application. RF–1 is used 

to establish an initial or baseline 

‘‘hypothetical’’ index of environmental 

conditions for each applicant’s 

operation. The total level of 

conservation performance points 

reflects the number of existing and 

planned conservation activities 

multiplied by a range of points from ¥5 

to +5 for each activity; producers are 

assigned a point estimate based on their 

response on the CMT. Individual 

applicant’s conservation performance 

points are aggregated to create a 

‘‘hypothetical’’ baseline of 

environmental conditions for the Nation 

(in this case, the Nation is that sub-set 

of all farmers and ranchers by farm type 

and land-use type expected to apply for 

CSP). 

Based on responses to the remaining 

three ranking factors 2 in the CMT, the 

model then produces an index of 

environmental benefits reflecting the 

total level of additional enhancement 

activities selected by participants to be 

addressed (the ‘‘additionality’’ point 

total). Given this basic data on potential 

participants’ stewardship benchmarks 

and willingness to adopt new activities, 

the model compares expected producer 

activity costs with their expected CSP 

annual payments. The major producer 

decision to participate in CSP in the 

model is if expected CSP payments 

offset at least 50 percent of the costs of 

adopting the associated conservation 

activities. 

The baseline in this analysis 

represents a pre-statute scenario. Due to 

the fact that each policy scenario selects 

applicants from different pools, no 

‘‘generic’’ baseline scenario could be 

determined. Instead the analysis adjusts 

the level of benchmark conservation 

performance points in each scenario to 

account for what would have been 

generated without CSP (pre-statute). 

The model allows USDA to verify if 

the national CSP average per acre 

annual payment rate has been met 

under a number of different program 

designs. More importantly, it can also 

estimate the trade-off between different 

policy designs and expected 

conservation performance outcomes in a 

cost-effectiveness framework. Such 

program design choices include varying 

the relative weights across ranking 

factors used in the participant ranking 

process and the expected results from 

varying other program parameters, such 

as relative weights on different priority 

resource concerns and stewardship 

threshold levels. The main policy 

options studied in this analysis involve 

the first item listed above; that is, the 

impact on acreage, conservation 

performance points, and program costs 

from associated options varying the 

relative weights across ranking factors 

used in the participant ranking process. 

Conclusions and Recommendations 

Results of alternative policy options 

suggest that there may be a set of general 

conclusions that policy makers should 

consider. These include: 

• The policy constraints on the 

statutory requirements for the program 

posed serious challenges for the model 

developers. It is obvious that these 

constraints will pose similar challenges 

in implementing this program. In 

particular, achieving the national 

annual acreage enrollment goal at the 

designated average costs per acre 

mandated in legislation will be a 

challenge given the heterogeneity of 

producers’ baseline resource conditions 

and demand for enhancements. 

• When large operations enter into 

the program and reach their annual 

contract limit ($40,000), CSP gains 

program acreage, but pushes per acre 

program costs down. By effectively 

lowering total program costs on a per 

acre basis, the additions of large 

operations enable the program to offer 

higher payment rates for other farm 

types and sizes, holding all else 

constant. For example, a 10,000 acre 

wheat farm in Montana that ‘‘hits’’ its 

payment limitation would be recorded 

as having a $4 per acre program cost 

($40,000 divided by 10,000 acres). 

Conservation activity costs were 

adjusted to account for economies of 

scale on the part of large operations. 

Without such adjustments, larger farms 

tended not to enter into CSP contracts 

because their per-acre costs would 

remain constant as their per-acre 

payments were effectively lowered (as 

their payment cap was ‘‘hit’’ as 

explained above). Thus without such 

adjustments, their large size increased 

their farm-level costs while at the same 

time restricted their ability to accrue 

additional CSP payments beyond the 

payment cap. This finding shows the 

importance that farm size will play in 

an applicants’ decision to participate in 

CSP. It also shows how sensitive actual 

enrollment and program costs are to the 

types and sizes of farms expected to 

enroll in CSP. 

The ability to place different weights 

on ranking factors in a predictive model 

provides insights into expected changes 

in program and conservation 

performance outcomes. Program design 

is critical in satisfying the statutory 

requirements of this program. In 

comparing several alternative policy 

options, model results showed that the 

cost-based conservation performance 

point payment levels used in this 

analysis were not capable of achieving 

the legislated national $18 average per 

acre program cost in all options. This is 

due to the changing land-use 

compositions and conservation 

performance outcomes which resulted 

under each alternative policy option. 

They also highlight the trade-offs that 

exist between alternative policy options 

with respect to attaining as close an 

acreage goal as is mandated; program 

costs; cost-effectiveness; and 

conservation performance. 


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Comparisons of alternative policy 

options (see Table 1) indicate that 

enrolled program acreage is maximized 

by adopting policy option 4 (PO–4). 

However, PO–4 violates the national 

program per acre cost constraint. All 

other alternative policy options 

produced lower program acreage totals 

as compared with PO–1. 

Comparisons showed that program 

costs were lowest in PO–2, which also 

showed good cost-effectiveness, but 

whose program acreage, as compared to 

PO–1 and all other alternative policy 

options, was the lowest. Total program 

costs were highest with PO–4, which 

provided strong evidence of luring 

strong participation and production of 

conservation performance points from 

new enhancements, but violated the 

national program per acre cost 

constraint. 

Cost-effectiveness estimates suggest 

that all alternative policy options and 

the baseline produce about the same 

cost-effectiveness (about $0.37 to $0.39 

per point on a total point basis). PO–2 

and PO–5 produced the most favorable 

cost-effectiveness estimates on a total 

point basis, but results are different 

when benchmark conservation 

performance points are adjusted. 

Making these adjustments puts PO–3 

and PO–4 in strong contention for 

policy consideration. 

Both PO–2 and PO–5 satisfied the 

national program per acre cost 

constraint. However, both options 

produced much lower totals of 

conservation performance points than 

other policy alternatives. In addition 

PO–5 produced a more equitable 

distribution of program acreage across 

land-use types than any other policy 

option. 

These comparisons showed that the 

total conservation performance points 

generated would be maximized in PO– 

4 and at the least cost-effectiveness rate 

on an adjusted point basis. However, 

PO–4 violates the $18 average per acre 

program cost constraint. In its favor, 

PO–4 produces the highest level of 

conservation performance points 

emanating from new conservation 

activities. PO–3 attained the next 

highest conservation performance point 

total, but PO–3 violated the $18 average 

per acre program cost constraint to a 

greater extent than did PO–4. 

The analysis assumes full 

participation each year that the program 

is made available. Only Government 

costs are included in this cost estimate 

given the wide set of possible initial 

resource conditions and enhancement 

practices likely to be adopted. Because 

of this diversity in initial resource 

conditions, it was not possible to 

ascertain whether (or to what extent) 

CSP payments off-set expected costs to 

adopt enhancement and other 

conservation stewardship activities by 

producers or past costs incurred to 

attain stewardship thresholds. Given 

this caveat, cumulative program costs 

for four program sign-ups are estimated 

to be $3.27 billion in constant 2007 

dollars, discounted at 7 percent. At a 3 

percent discount rate, this estimation 

increases to $3.86 billion. These costs 

assume that the duration of each 

contract is five years and the program 

duration is offered for four years (FY 

2009 to FY 2012). In the case where 

program duration is offered for nine 

years (FY 2009 to FY 2017), cumulative 

program costs for nine program sign-ups 

are estimated to be $6.3 billion using 

constant 2007 dollars discounted at 7 

percent. At a 3 percent discount rate, 

this estimate increases to $8.1 billion. 

TABLE 1—SUMMARY OF SIMULATION RESULTS OF PROGRAM ACREAGE AND ASSOCIATED PROGRAM COSTS, BY LAND-USE

TYPE FOR CSP POLICY OPTIONS

Cost per acre Policy option 1

Acres funded in program 

(in millions of acres) 

Total program cost 

(in millions of dollars) 

Cropland Pasture Rangeland Total 2 Cropland Pasture Rangeland Total 

N/A ............................ No Program 3 ............ 0 0 0 0 $0 $0 $0 $0 

17.78 ......................... PO–1 ......................... 8 .3 2 .2 1 .1 11 .6 182 .7 18 .3 4 .5 205 .5 

15.74 ......................... PO–2 ......................... 8 .6 1 .9 0 .9 11 .3 160 .0 14 .6 3 .8 178 .3 

19.25 ......................... PO–3 ......................... 9 .0 1 .6 0 .8 11 .5 204 .2 13 .8 3 .3 221 .3 

18.96 ......................... PO–4 ......................... 9 .0 1 .8 0 .9 11 .8 203 .4 15 .8 3 .7 222 .9 

16.93 ......................... PO–5 ......................... 8 .0 2 .4 1 .2 11 .5 170 .6 19 .5 4 .9 195 .0 

1PO–1 assumes an equal weight on each ranking factor. 

PO–2 assumes a 62.5 percent weight on RF–1 and a 12.5 percent weight on RF–2, RF–3, and RF–4. 

PO–3 assumes a 62.5 percent weight on RF–2 and a 12.5 percent weight on RF–1, RF–3, and RF–4. 

PO–4 assumes a 62.5 percent weight on RF–3 and a 12.5 percent weight on RF–1, RF–2, and RF–4. 

PO–5 assumes a 62.5 percent weight on RF–4 and a 12.5 percent weight on RF–1, RF–2, and RF–3. 

2Annual CSP acreage cap is 12.769 million acres with 10 percent allocated to non-industrial private forestland (NIPF) leaving roughly 11.5 million acres for cropland, pasture, and rangeland acreage. 3 No program scenario assumes that CSP is not available to landowners. As discussed in the text, some level of benchmark conservation performance points are assumed to be generated in the absence of CSP. The exact amount is difficult to determine because maintenance of existing conservation measures vary due to several factors, such as fluctuations in personal economic conditions and preferences, advancing age, 

and changing resource priorities. In addition, the applicant pool in each alternative policy scenario is made up of different farm types and landuse types. These conditions preclude the estimation of a ‘‘generic’’ baseline applied to all alternative policy options. As a result, maintenance on 

existing conservation measures is assumed to generate 90 percent of the benchmark conservation performance points estimated in each 

scenario. 

TABLE 2—SUMMARY OF SIMULATION RESULTS OF THE CONSERVATION PERFORMANCE POINTS AND COST EFFECTIVENESS

INDICATORS FOR CSP POLICY OPTIONS

Policy Option 1

Benchmark 

(in millions of conservation performance points) 

Total points 

Dollars per point 

Baseline 2 Incremental Enhancement 

Incremental 

plus enhancement Total points 

No Program 2 ...................... Indeterminate ...................... None N/A N/A N/A N/A 

PO–1 ................................... 124.47 ................................. 13.83 329.8 468.1 $0.51 $0.38 


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TABLE 2—SUMMARY OF SIMULATION RESULTS OF THE CONSERVATION PERFORMANCE POINTS AND COST EFFECTIVENESS

INDICATORS FOR CSP POLICY OPTIONS—Continued 

Policy Option 1

Benchmark 

(in millions of conservation performance points) 

Total points 

Dollars per point 

Baseline 2 Incremental Enhancement 

Incremental 

plus enhancement Total points 

PO–2 ................................... 135.36 ................................. 15.04 251.8 402.2 0.56 0.37 

PO–3 ................................... 106.2 ................................... 11.8 377.2 495.2 0.50 0.39 

PO–4 ................................... 107.46 ................................. 11.94 385.6 505.0 0.49 0.38 

PO–5 ................................... 126.99 ................................. 14.11 309.0 450.0 0.51 0.37 

1PO–1 assumes an equal weight on each ranking factor. 

PO–2 assumes a 62.5 percent weight on RF–1 and a 12.5 percent weight on RF–2, RF–3, and RF–4. 

PO–3 assumes a 62.5 percent weight on RF–2 and a 12.5 percent weight on RF–1, RF–3, and RF–4. 

PO–4 assumes a 62.5 percent weight on RF–3 and a 12.5 percent weight on RF–1, RF–2, and RF–4. 

PO–5 assumes a 62.5 percent weight on RF–4 and a 12.5 percent weight on RF–1, RF–2, and RF–3. 

2Baseline (pre-statute) assumes that CSP is not offered. 

3 No program scenario assumes that CSP is not available to landowners. As discussed in the text, some level of benchmark conservation performance points are assumed to be generated in the absence of CSP. The exact amount is difficult to determine because maintenance of existing conservation measures vary due to several factors, such as fluctuations in personal economic conditions and preferences, advancing age, 

and changing resource priorities. In addition, the applicant pool in each alternative policy scenario is made up of different farm types and landuse types. These conditions preclude the estimation of a ‘‘generic’’ baseline applied to all alternative policy options. As a result, maintenance on 

existing conservation measures is assumed to generate 90 percent of the benchmark conservation performance points estimated in each 

scenario. 

NRCS analysis indicates that policy 

options PO–3 and PO–4 demonstrated 

the highest degree of cost-effectiveness 

and environmental performance 

improvement. As a result, NRCS is 

giving strong consideration to policy 

options PO–3 and PO–4 for subsequent 

signup periods. 

For the initial signup period, NRCS 

recommends that the CSP program 

design place equal weight on the 

considered program ranking factors 

until program performance is 

established. Given that program 

performance has not been established, 

NRCS seeks public comment on which 

option best enables NRCS to meet 

program objectives. In addition, NRCS is 

requesting public comment on the 

appropriate weighting of the five 

ranking factors to maximize costeffectively environmental benefits while 

maintaining consistency with the 

statutory purposes of the program. 

NRCS will consider these public 

comments when revising the weighting 

of these ranking factors prior to the next 

subsequent ranking period. The CSP 

rule will be finalized in FY 2010. 

Section 2708 of the 2008 Act 

Section 2708, ‘‘Compliance and 

Performance,’’ of the 2008 Act added a 

paragraph to Section 1244(g) of the 1985 

Act entitled, ‘‘Administrative 

Requirements for Conservation 

Programs,’’ which states the following: 

‘‘(g) Compliance and performance.—For 

each conservation program under Subtitle D, 

the Secretary shall develop procedures— 

(1) To monitor compliance with program 

requirements; 

(2) To measure program performance; 

(3) To demonstrate whether long-term 

conservation benefits of the program are 

being achieved; 

(4) To track participation by crop and 

livestock type; and 

(5) To coordinate activities described in 

this subsection with the national 

conservation program authorized under 

section 5 of the Soil and Water Resources 

Conservation Act of 1977 (16 U.S.C. 2004).’’ 

This new provision presents in one 

place the accountability requirements 

placed on the Agency as it implements 

conservation programs and reports on 

program results. The requirements 

apply to all programs under Subtitle D, 

including the Wetlands Reserve 

program, the Conservation Security 

Program, the Conservation Stewardship 

Program, the Farm and Ranch Lands 

Protection Program, the Grassland 

Reserve Program, the Environmental 

Quality Incentives Program (including 

the Agricultural Water Enhancement 

Program), the Wildlife Habitat Incentive 

Program, and the Chesapeake Bay 

Watershed initiative. These 

requirements are not directly 

incorporated into these regulations, 

which set out requirements for program 

participants. However, certain 

provisions within these regulations 

relate to elements of Section 1244(g) of 

the 1985 Act and the Agency’s 

accountability responsibilities regarding 

program performance. NRCS is taking 

this opportunity to describe existing 

procedures that relate to meeting the 

requirements of Section 1244(g) of the 

1985 Act, and Agency expectations for 

improving its ability to report on each 

program’s performance and 

achievement of long-term conservation 

benefits. Also included is reference to 

the sections of these regulations that 

apply to program participants and that 

relate to the Agency accountability 

requirements as outlined in Section 

1244(g) of the 1985 Act. 

Monitor compliance with program 

requirements. NRCS has established 

application procedures to ensure that 

participants meet eligibility 

requirements, and follow-up procedures 

to ensure that participants are 

complying with the terms and 

conditions of their contractual 

arrangement with the government and 

that the installed conservation measures 

are operating as intended. These and 

related program compliance evaluation 

policies are set forth in Agency 

guidance (Conservation Programs 

Manual_440_Part 512 and Conservation 

Programs Manual _440_Part 508) 

(http://directives.sc.egov.usda.gov/). 

The program requirements applicable to 

participants that relate to compliance 

are set forth in these regulations in 

§ 1470.6, ‘‘Eligibility requirements,’’ 

§ 1470.21, ‘‘Contract requirements,’’ 

§ 1470.22 ‘‘Conservation stewardship 

plan,’’ and § 1470.23, ‘‘Conservation 

activity operation and maintenance.’’ 

These sections make clear the general 

program eligibility requirements, 

participant obligations for implementing 

a conservation stewardship plan, 

contract obligations, and requirements 

for operating and maintaining CSPfunded conservation activities. 

Measure program performance. 

Pursuant to the requirements of the 

Government Performance and Results 

Act of 1993 (Pub. L. 103–62, Sec. 1116) 

and guidance provided by OMB Circular 

A–11, NRCS has established 

performance measures for its 


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3The exception to this is the Conservation 

Reserve Program; since 1987 the NRI has reported 

acreage enrolled in CRP. 

4Soil and Water Conservation Society. 2006. 

Final Report from the Blue Ribbon Panel 

Conducting an External Review of the US 

Department of Agriculture Conservation Effects 

Assessment Project. Ankeny, IA: Soil and Water 

Conservation Society. This review is available at 

(http://www.nrcs.usda.gov/technical/NRI/ceap/). 

conservation programs. Program-funded 

conservation activity is captured 

through automated field-level business 

tools and the information is made 

publicly available at: http:// 

ias.sc.egov.usda.gov/PRSHOME/. 

Program performance also is reported 

annually to Congress and the public 

through the annual performance budget, 

annual accomplishments report, and the 

USDA Performance Accountability 

Report. Related performance 

measurement and reporting policies are 

set forth in Agency guidance 

(GM_340_401 and GM_340_403 (http:// 

directives.sc.egov.usda.gov/)). 

The conservation actions undertaken 

by participants are the basis for 

measuring program performance— 

specific actions are tracked and reported 

annually, while the effects of those 

actions relate to whether the long-term 

benefits of the program are being 

achieved. The program requirements 

applicable to participants that relate to 

undertaking conservation actions are set 

forth in these regulations in § 1470.21, 

‘‘Contract requirements,’’ § 1470.22 

‘‘Conservation stewardship plan,’’ and 

§ 1470.23, ‘‘Conservation activity 

operation and maintenance.’’ These 

sections make clear participant 

obligations for implementing, operating, 

and maintaining conservation 

stewardship activities, which in 

aggregate result in the program 

performance that is reflected in Agency 

performance reports. 

Demonstrating the long-term natural 

resource benefits achieved through 

conservation programs is subject to the 

availability of needed data, the capacity 

and capability of modeling approaches, 

and the external influences that affect 

actual natural resource condition. While 

NRCS captures many measures of 

‘‘output’’ data, such as acres of 

conservation practices, it is still in the 

process of developing methods to 

quantify the contribution of those 

outputs to environmental outcomes 

NRCS currently uses a mix of 

approaches to evaluate whether longterm conservation benefits are being 

achieved through its programs. Since 

1982, NRCS has reported on certain 

natural resource status and trends 

through the National Resources 

Inventory (NRI), which provides 

statistically reliable, nationally 

consistent land cover/use and related 

natural resource data. However, lacking 

has been a connection between these 

data and specific conservation 

programs.3 In the future, the interagency 

Conservation Effects Assessment Project 

(CEAP), which has been underway since 

2003, will provide nationally consistent 

estimates of environmental effects 

resulting from conservation practices 

and systems applied. CEAP results will 

be used in conjunction with 

performance data gathered through 

Agency field-level business tools to help 

produce estimates of environmental 

effects accomplished through Agency 

programs, such as CSP. In 2006 a Blue 

Ribbon panel evaluation of CEAP 4

strongly endorsed the project’s purpose, 

but concluded ‘‘CEAP must change 

direction’’ to achieve its purposes. In 

response, CEAP has focused on 

priorities identified by the Panel and 

clarified that its purpose is to quantify 

the effects of conservation practices 

applied on the landscape. Information 

regarding CEAP, including reviews and 

current status, is available at http:// 

www.nrcs.usda.gov/technical/NRI/ 

ceap/. Since 2004 and the initial 

establishment of long-term performance 

measures by program, NRCS has been 

estimating and reporting progress 

toward long-term program goals. Natural 

resource inventory and assessment, and 

performance measurement and 

reporting policies are set forth in 

Agency guidance (GM_290_400; 

GM_340_401; GM_340_403) (http:// 

directives.sc.egov.usda.gov/). 

Demonstrating the long-term 

conservation benefits of conservation 

programs is an Agency responsibility. 

Through CEAP, NRCS is in the process 

of evaluating how these long-term 

benefits can be achieved through the 

conservation practices and systems 

applied by participants under each of its 

programs. The CSP program 

requirements applicable to participants 

that relate to producing long-term 

conservation benefits are located in 

§ 1470.21, ‘‘Contract requirements,’’ 

§ 1470.22 ‘‘Conservation stewardship 

plan,’’ and § 1470.23, ‘‘Conservation 

activity operation and maintenance.’’ 

These requirements and related program 

management procedures supporting 

program implementation are set forth in 

Agency guidance (Conservation 

Programs Manual 440_Part 512 and 

Conservation Programs Manual 

_440_Part 508). 

Coordinate these actions with the 

national conservation program 

authorized under the Soil and Water 

Resources Conservation Act (RCA). The 

2008 Act reauthorized and expanded on 

a number of elements of the RCA related 

to evaluating program performance and 

conservation benefits. Specifically, the 

2008 Act added a provision stating, 

Appraisal and inventory of resources, 

assessment and inventory of conservation 

needs, evaluation of the effects of 

conservation practices, and analyses of 

alternative approaches to existing 

conservation programs are basic to effective 

soil, water, and related natural resources 

conservation. 

The program, performance, and 

natural resource and effects data 

described previously will serve as a 

foundation for the next RCA, which will 

also identify and fill, to the extent 

possible, data and information gaps. 

Policy and procedures related to the 

RCA are set forth in Agency guidance 

(GM_290_400 and GM_130_402) 

(http://directives.sc.egov.usda.gov/). 

The coordination of the previously 

described components with the RCA is 

an Agency responsibility and is not 

reflected in these regulations. However, 

it is likely that results from the RCA 

process will result in modifications to 

the program and performance data 

collected, to the systems used to acquire 

data and information, and potentially to 

the program itself. Thus, as the 

Secretary proceeds to implement the 

RCA in accordance with the statute, the 

approaches and processes developed 

will improve existing program 

performance measurement and outcome 

reporting capability and provide the 

foundation for improved 

implementation of the program 

performance requirements of Section 

1244(g) of the 1985 Act. 

Discussion of Program 

The Food, Conservation, and Energy 

Act of 2008 (2008 Act) amended the 

Food Security Act of 1985 (1985 Act) to 

establish the Conservation Stewardship 

Program (CSP) and authorize the 

program in fiscal years 2009 through 

2012. The purpose of CSP is to 

encourage producers to address resource 

concerns in a comprehensive manner 

by: (1) Undertaking additional 

conservation activities; and (2) 

improving, maintaining, and managing 

existing conservation activities. The 

Secretary of the United States 

Department of Agriculture (USDA) has 

delegated authority to the Natural 

Resources Conservation Service (NRCS) 

to administer CSP. 

Through CSP, NRCS will provide 

financial and technical assistance to 

eligible producers to conserve and 

enhance soil, water, air, and related 

natural resources on their land. Eligible 

lands include cropland, grassland, 


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prairie land, improved pastureland, 

rangeland, nonindustrial private forest 

lands, agricultural land under the 

jurisdiction of an Indian tribe, and other 

private agricultural land (including 

cropped woodland, marshes, and 

agricultural land used for the 

production of livestock) on which 

resource concerns related to agricultural 

production could be addressed. 

Participation in the program is 

voluntary. 

CSP encourages land stewards to 

improve their conservation performance 

by installing and adopting additional 

activities, and improving, maintaining, 

and managing existing activities on 

agricultural land and nonindustrial 

private forest land. NRCS will make 

funding for CSP available nationwide on 

a continuous application basis. 

The State Conservationist, in 

consultation with the State Technical 

Committee and local work groups, will 

focus program impacts on natural 

resources that are of specific concern for 

a State, or the specific geographic areas 

within a State. Applications will be 

evaluated relative to other applications 

addressing similar priority resource 

concerns to facilitate a competitive 

ranking process among applicants who 

face similar resource challenges. 

The 2008 Act requires NRCS to 

manage CSP to achieve a national 

average rate of $18 per acre, which 

includes the costs of all financial and 

technical assistance, and any other 

expenses associated with program 

enrollment and participation. NRCS will 

use a producer self-screening checklist 

to help potential applicants decide for 

themselves whether CSP is the right 

program for them and their operation. 

The process focuses on basic 

information about CSP eligibility 

requirements and contract obligations. 

When examining applicant eligibility, 

CSP bases determinations on how 

applicants delineate their operation for 

other USDA programs. Specifically, any 

potential participant must be the 

operator in the Farm Service Agency 

(FSA) farm records management system. 

This requirement is needed because the 

FSA record system provides applicant 

eligibility information for Adjusted 

Gross Income and highly erodible land 

and wetland conservation provisions. 

Potential applicants who are not in the 

FSA farm records management system, 

or whose records are not current, must 

establish or update their records prior to 

making a CSP application. The 2008 Act 

also requires that the agricultural 

operation must include all agricultural 

land under the effective control of the 

applicant for the term of the proposed 

contract that is operated substantially 

separate from other operations. 

The 2008 Act directed the 

development of the conservation 

measurement tool (CMT) to estimate the 

level of environmental benefit to be 

achieved by a producer in implementing 

conservation activities. The term 

‘‘environmental benefit’’ used in the 

context of the CMT is misleading. The 

CMT considers the relative physical 

effects of existing and proposed 

conservation activities to estimate 

improvements in conservation 

performance. It does not measure true 

environmental benefits, e.g., tons of 

carbon sequestered, or tons of soil 

saved. 

The CMT combines functions of 

existing NRCS tools for soil and water, 

grazing lands, and wildlife habitat; 

considers the physical effects of 

conservation activities, such as 

establishing permanent vegetative cover, 

across natural resource concerns and 

energy; and integrates and supports the 

processes of inventorying resources, 

determining eligibility, and ranking 

applications. 

NRCS will assist applicants with 

completing the inventory of resource 

conditions in the CMT. The inventory 

will enable the CMT to calculate a 

conservation performance score that 

will assist in ranking applications 

within State-identified geographic area 

ranking pools. For approved applicants, 

NRCS will request records of the 

applicants’ conservation activity and 

production system information and 

conduct on-site field verification to 

substantiate, prior to contract approval, 

that the resource inventory information 

provided for the CMT was accurate. 

CSP provides participants with two 

possible types of payments: 

(1) Annual payment for installing and 

adopting additional activities, and 

improving, maintaining, and managing 

existing activities. Compensation for onfarm research and demonstration 

activities, or pilot testing will be made 

through the annual payment. 

(2) Supplemental payment for the 

adoption of resource-conserving crop 

rotations. 

Setting the annual payment rates will 

be a significant challenge for NRCS. In 

addition to managing the program 

within the national average rate of $18 

per acre, the 2008 Act also provides an 

acreage enrollment limit of 12,769,000 

acres for each fiscal year. To address 

these constraints, NRCS intends to use 

the first ranking period as a payment 

discovery period to arrive at a uniform 

payment rate per conservation 

performance point by eligible land use 

type. NRCS requests public comment on 

ways to address program acreage and 

payment constraints, refine their 

payment approach, and make annual 

payments more consistent and 

predictable. 

Additionally NRCS seeks public 

comment on the proper distribution of 

CSP annual payment between payment 

for additional activities and payment for 

existing activities. 

Section 1470.26 of this interim final 

rule provides that NRCS will permit 

contract renewals to foster participant 

commitment to increased conservation 

performance. NRCS seeks public 

comment on the contract renewal 

criteria in the interim final rule. 

NRCS can broaden CSP’s impact by 

offering participants the opportunity to 

install innovative conservation activities 

that appeal to all levels of land 

stewards, and increase conservation 

performance across all land uses, 

operation sizes and types, and 

production systems, including specialty 

crops and organic production. NRCS 

specifically requests through the 

comment process information on 

innovative enhancements NRCS should 

offer under CSP to improve participant’s 

conservation performance. 

A step-by-step explanation of how 

CSP works from sign-up to fulfillment of 

the conservation stewardship contract is 

as follows: 

(1) CSP is available nationwide and 

sign-up will be continuous with 

announced ranking period cutoff dates. 

(2) A producer self-screening 

checklist will be available at local NRCS 

field offices and on the NRCS Web site. 

Producers will complete the checklist 

independently to help them decide if 

they meet CSP eligibility requirements. 

(3) Potential applicants who decide to 

apply for CSP complete a Contract 

Program Application Form, NRCS– 

CPA–1200, and submit information on 

their operation. The extent of an 

applicant’s agricultural operation will 

be based on how the applicant 

represents their operation for other 

USDA programs. 

(4) Once applicant and land eligibility 

are determined, the NRCS field office 

will assist the producer with completing 

the CMT resource inventory. 

(5) CMT will estimate the level of 

environmental benefit to be achieved by 

the applicant. The CMT conservation 

performance scoring will enable NRCS 

to determine if the stewardship 

threshold requirement is met, rank 

applications, and establish payments. 

(6) Applicants will be ranked relative 

to other applicants who face similar 

resource challenges in State-established 

ranking pools using conservation 

performance ranking scores. 


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(7) For approved applicants, NRCS 

will conduct on-site field verification to 

substantiate that conservation activity 

and production system information 

represented by the applicant was 

accurate. 

(8) After the conservation system 

information is verified, NRCS and the 

applicant proceed to develop the 

conservation stewardship plan and 

contract. 

(9) Upon approval, the contract will 

obligate the participant to achieve a 

higher level of conservation 

performance by installing additional 

activities scheduled in their 

conservation stewardship plan and to 

maintain the level of existing 

conservation performance identified at 

the time of application. For the initial 

sign-up, NRCS will consider a 

participant ‘‘enrolled’’ based on the 

fiscal year the application is submitted, 

once NRCS approves an applicant’s 

contract. For subsequent ranking cut-off 

periods, NRCS will consider a 

participant enrolled in CSP based on the 

fiscal year the contract is approved. 

(10) NRCS will make payments as 

soon as practical after October 1 of each 

fiscal year for activities carried out in 

the previous fiscal year. A participant’s 

annual payment is determined using the 

conservation performance estimated by 

the CMT, and computed by land-use 

type for enrolled eligible land. A 

supplemental payment is also available 

to a participant receiving annual 

payments who also agrees to adopt a 

resource-conserving crop rotation. 

Summary of Provisions 

The regulation is organized into three 

subparts: Subpart A—General 

Provisions; Subpart B—Contracts; and 

Subpart C—General Administration. 

Below is a summary of each section. 

Subpart A—General Provisions 

Section 1470.1 Applicability 

Section 1470.1, ‘‘Applicability,’’ sets 

forth the purpose, procedures, and 

requirements of CSP. In paragraph (b), 

NRCS defines that the program’s 

purpose is to encourage producers to 

address resource concerns in a 

comprehensive manner by undertaking 

additional conservation activities; and 

improving, maintaining, and managing 

existing conservation activities. 

NRCS included paragraph (c) to 

specify where CSP assistance is 

available. CSP is available to eligible 

persons, legal entities, or Indian tribes 

in all 50 States, the District of Columbia, 

the Commonwealth of Puerto Rico, 

Guam, the Virgin Islands of the United 

States, American Samoa, and the 

Commonwealth of the Northern Mariana 

Islands. 

Paragraph (d) identifies that NRCS 

will provide CSP participants financial 

and technical assistance for the 

conservation, protection, and 

improvement of soil, water, and other 

related natural resources. 

Section 1470.2 Administration 

Section 1470.2, ‘‘Administration,’’ 

describes the roles of NRCS at the 

National and State levels. NRCS will 

make CSP available nationwide on a 

continuous application basis. NRCS will 

operate the program to achieve a 

national average rate of $18 per acre, 

which includes the costs of all financial 

and technical assistance, and any other 

expenses associated with program 

enrollment and participation. As 

directed by the 2008 Act, NRCS will 

establish a national target to set aside 

five percent of CSP acres for socially 

disadvantaged farmers or ranchers and 

an additional five percent of CSP acres 

for beginning farmers or ranchers. State 

conservationists will obtain advice from 

State Technical Committees and local 

working groups on State program 

technical policies, outreach efforts, and 

program issues. 

Section 1470.3 Definitions 

Section 1470.3, ‘‘Definitions,’’ sets 

forth definitions for terms used 

throughout this regulation. These 

definitions include: ‘‘agricultural land,’’ 

‘‘animal waste storage or treatment 

facility,’’ ‘‘applicant,’’ ‘‘beginning 

farmer or rancher,’’ ‘‘Chief,’’ 

‘‘conservation district,’’ ‘‘conservation 

practice,’’ ‘‘Designated Conservationist,’’ 

‘‘enrollment,’’ ‘‘field office technical 

guide,’’ ‘‘Indian tribe,’’ ‘‘Indian lands,’’ 

‘‘joint operation,’’ ‘‘legal entity,’’ 

‘‘liquidated damages,’’ ‘‘local working 

group,’’ ‘‘National Organic Program,’’ 

‘‘Natural Resources Conservation 

Service,’’ ‘‘nonindustrial private forest 

land,’’ ‘‘operation and maintenance,’’ 

‘‘participant,’’ ‘‘person,’’ ‘‘producer,’’ 

‘‘Secretary,’’ ‘‘socially disadvantaged 

farmer or rancher,’’ ‘‘State 

Conservationist,’’ ‘‘State Technical 

Committee,’’ ‘‘technical assistance,’’ and 

‘‘Technical Service Provider (TSP).’’ 

Other definitions, such as: ‘‘agricultural 

operation,’’ ‘‘conservation activities,’’ 

‘‘conservation measurement tool,’’ 

‘‘conservation stewardship plan,’’ 

‘‘contract,’’ ‘‘enhancement,’’ 

‘‘management measure,’’ ‘‘payment,’’ 

‘‘priority resource concern,’’ ‘‘resource 

concern,’’ ‘‘resource-conserving crop 

rotation,’’ and ‘‘stewardship threshold’’ 

are definitions established to implement 

CSP’s authorizing legislation. 

A number of these definitions are 

shared with other conservation 

programs administered by NRCS. The 

following definitions are unique or have 

special relevance to CSP 

implementation, or have been modified 

from how the term is defined in other 

NRCS conservation program rules: 

The definition of ‘‘agricultural land’’ 

describes those areas identified by CSP’s 

authorizing legislation—working 

agricultural land being actively 

managed for agricultural production 

purposes upon which CSP will be 

focused, including cropland, grassland, 

improved prairieland, and land used for 

agro-forestry. NRCS does not intend to 

exclude working lands such as cropped 

woodlands and marshes, but will 

consider those as cropland. 

NRCS includes the definition of 

‘‘agricultural operation’’ to specify an 

agricultural operation’s parameters. An 

‘‘agricultural operation’’ is defined as 

‘‘all agricultural land and other land as 

determined by NRCS, whether 

contiguous or noncontiguous: (1) Which 

is under the effective control of the 

applicant for the term of the proposed 

contract; and (2) which is operated by 

the applicant with equipment, labor, 

management, and production or 

cultivation practices that are 

substantially separate from other 

operations.’’ The term ‘‘other land’’ in 

this definition includes ineligible land 

identified in § 1470.6, incidental areas 

that are not in agricultural production, 

and developed areas on the farm or 

ranch such as farm headquarters, ranch 

sites, barnyards, feedlots, manure 

storage facilities, machinery storage 

areas, and material handling facilities. 

The term ‘‘applicant’’ is defined as ‘‘a 

person, legal entity, joint operation, or 

Indian tribe that has an interest in an 

agricultural operation, as defined in 7 

CFR part 1400, who has requested in 

writing to participate in CSP.’’ All 

applicants must establish records in the 

Farm Service Agency (FSA) farm 

records management system prior to 

submitting an application. 

The term, ‘‘beginning farmer and 

rancher,’’ is the same as the definition 

used by other NRCS conservation 

programs, which adopt the definition 

established by 7 U.S.C. 1991(a), except 

that the definition incorporates the term 

nonindustrial private forest land to 

ensure policies pertaining to beginning 

farmers and ranchers include those 

producers having nonindustrial private 

forest land. 

A definition for ‘‘conservation 

activity’’ is included to describe in a 

more comprehensive fashion the 

conservation systems, practices, or 

management measures needed to 


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address a resource concern or improve 

conservation performance. 

A definition for ‘‘conservation 

measurement tool’’ refers to the 

procedures that NRCS will use to 

estimate the level of environmental 

benefit to be achieved by a producer 

using the proxy of conservation 

performance improvement. 

The term ‘‘conservation stewardship 

plan’’ is defined as a record of the 

participant’s decisions that describes 

the schedule of conservation activities 

to be implemented, managed, or 

improved by the participant. The 

definition clarifies that associated 

supporting information inventories the 

agricultural operation’s resource 

concerns and existing conservation 

activities, establishes benchmark data, 

and identifies the participant’s 

conservation objectives and will be 

maintained with the plan. 

The term ‘‘enhancement’’ means a 

type of activity installed and adopted to 

treat natural resources and improve 

conservation performance. 

Enhancements are installed at a level of 

management intensity that exceeds the 

sustainable level for a given resource 

concern, and those directly related to a 

practice standard are applied in a 

manner that exceeds the minimum 

treatment requirements of the standard. 

An example of an enhancement 

includes a grass-type cover crop used to 

scavenge nitrogen left in the soil after 

the harvest of a previous crop. 

The term ‘‘enrollment’’ means for the 

initial sign-up for FY 2009, NRCS will 

consider a participant ‘‘enrolled’’ in CSP 

based on the fiscal year the application 

is submitted, once NRCS approves the 

participant’s contract. For subsequent 

ranking cut-off periods, NRCS will 

consider a participant enrolled in CSP 

based on the fiscal year the contract is 

approved. The acres enrolled for each 

fiscal year count against each year’s 

annual 12.8 million acre enrollment 

limit. 

The terms, ‘‘Indian Tribe’’ and 

‘‘Indian lands’’ reflect the terms used by 

other NRCS conservation programs. An 

Indian Tribe is any ‘‘Indian Tribe, band, 

nation, pueblo, or other organized group 

or community, including any Alaska 

Native village or regional corporation as 

defined in or established pursuant to the 

Alaska Native Claims Settlement Act (43 

U.S.C. 1601 et seq.), which is recognized 

as eligible for the special programs and 

services provided by the United States 

to Indians because of their status as 

Indians.’’ NRCS adopts terminology 

‘‘Indian lands’’ in an effort to be more 

inclusive of all lands held in trust by the 

United States for individual Indians or 

Indian Tribes, all land, the title to which 

is held by an individual Indian, Indian 

family, or Indian Tribe. 

The term, ‘‘management measure,’’ is 

defined as one or more specific actions 

that is not a conservation practice, but 

has the effect of alleviating problems or 

the treatment of natural resources. 

The term ‘‘National Organic Program’’ 

has been inserted to refer to a program 

administered by the Agricultural 

Marketing Service. The rule contains 

provisions related to conservation 

activities associated with organic 

production. The National Organic 

Program is a national program which 

regulates the standards for any farm, 

wild crop harvesting, or handling 

operation that wants to sell an 

agricultural product as organically 

grown. 

The term, ‘‘nonindustrial private 

forest land’’ is based on the definition 

in the 2008 Act. Nonindustrial private 

forest land is rural land that has existing 

tree cover or is suitable for growing 

trees; and is owned by an individual, 

group, association, corporation, Indian 

Tribe, or other private legal entity that 

has definitive decision-making authority 

over the land. 

NRCS includes the definition of 

‘‘operation and maintenance’’ to 

identify that participants are expected to 

maintain existing conservation activities 

and additional conservation activities 

installed and adopted over the contract 

period. 

The definition of ‘‘participant’’ 

reflects the 2008 Act’s definition of 

‘‘person’’ and ‘‘legal entity’’ and the 

definition used by other NRCS 

conservation programs. A participant is 

a ‘‘person, legal entity, joint operation, 

or Indian Tribe that is receiving 

payment or is responsible for 

implementing the terms and conditions 

of a CSP contract.’’ 

NRCS defines the term ‘‘payment’’ to 

mean the financial assistance provided 

under the terms of the CSP contract. 

NRCS includes the term, ‘‘person’’ to 

reflect the requirements of 7 CFR part 

1400, the regulation which details CCC’s 

payment limitation policies. 

NRCS includes the term ‘‘priority 

resource concern,’’ which reflects the 

definition in the 2008 Act. A priority 

resource concern is a resource concern 

that is identified by the State 

Conservationist, in consultation with 

the State Technical Committee and local 

work groups, as a priority for a State, or 

the specific geographic areas within a 

State. 

The term ‘‘producer’’ means a person 

or legal entity or joint operation who 

has an interest in the agricultural 

operation, according to part 1400 of this 

chapter, or is engaged in agricultural 

production or forest management. 

The term ‘‘resource concern,’’ reflects 

the 2008 Act’s ‘‘resource concern’’ 

definition. A resource concern ‘‘means a 

specific natural resource problem that is 

likely to be addressed successfully 

through the implementation of 

conservation activities by producers.’’ 

The term, ‘‘resource-conserving crop 

rotation’’ means a crop rotation that 

includes at least one resourceconserving crop that reduces soil 

erosion, improves soil fertility and tilth, 

interrupts pest cycles, retains soil 

moisture, and reduces the need for 

irrigation in applicable areas. 

NRCS includes the term ‘‘socially 

disadvantaged farmer or rancher’’ that 

is based on the definition used by other 

NRCS conservation programs. 

The term ‘‘stewardship threshold’’ 

means the level of natural resource 

conservation and environmental 

management required, as determined by 

NRCS using conservation measurement 

tools, to conserve and improve the 

quality and condition of a natural 

resource. The stewardship threshold is 

used to determine if an applicant meets 

the minimum treatment requirements to 

be eligible for CSP. NRCS guided its 

efforts to set stewardship thresholds by 

sustainable levels of natural resource 

treatment. For example, for the soil 

erosion resource concern, this criterion 

is met when the erosion rate from wind 

and water does not exceed the Soil Loss 

Tolerance (T). 

NRCS includes the definition, 

‘‘technical service provider (TSP),’’ to 

clarify that TSPs are used to provide 

technical services to program 

participants, in lieu of or on behalf of 

NRCS. A TSP is ‘‘an individual, privatesector entity, or public agency certified 

by NRCS to provide technical services 

to program participants, in lieu of or on 

behalf of NRCS.’’ The regulations 

governing TSPs are found in 7 CFR part 

652. 

Section 1470.4 Allocation and 

Management 

Section 1470.4, ‘‘Allocation and 

management,’’ addresses national 

allocations and how the proportion of 

eligible land will be used as the primary 

means to distribute CSP acres and 

associated funds among States. The 

Chief will also consider the extent and 

magnitude of conservation needs 

associated with agricultural production 

in each State, the degree to which CSP 

can help producers address these needs; 

and other considerations determined by 

the Chief to achieve equitable 

geographic distribution of program 

participation. NRCS is in the process of 


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developing State allocations according 

to the provisions in this section. After 

allocations are finalized NRCS will 

make information related to the 

allocation decisions available to the 

public. NRCS also seeks public 

comment on the use of these factors to 

distribute allocations among States. 

Section 1470.5 Outreach Activities 

Section 1470.5, ‘‘Outreach activities,’’ 

describes how NRCS will establish 

special program outreach activities at 

the National, State, and local levels. 

NRCS will undertake special outreach 

effort to the historically underserved 

producers which includes socially 

disadvantaged, beginning and limited 

resource farmers or ranchers. In 

addition, NRCS will continue to ensure 

that producers are not disadvantaged 

based on the size or type of their 

operation or production system. Special 

outreach efforts will be made to smallscale farms, specialty crop operations, 

and organic farms. 

Section 1470.6 Eligibility 

Requirements 

Section 1470.6, ‘‘Eligibility 

requirements,’’ sets forth the criteria for 

determining applicant and land 

eligibility. 

Paragraph (a) details applicant 

eligibility criteria. To be eligible, at the 

time of application, an applicant must: 

Be the operator in the FSA farm records 

management system for the agricultural 

operation; have documented control of 

the land for the term of the proposed 

contract; and be in compliance with 

highly erodible land and wetland 

conservation provisions, and the 

Adjusted Gross Income provisions. It is 

the applicant’s responsibility to supply 

needed information to assist NRCS in 

determining program eligibility and in 

ranking the application. NRCS may 

request from the applicant: conservation 

and production system records, tax 

documentation, evidence documenting 

control of the land, and information to 

verify an applicant’s status as a 

beginning farmer or rancher or socially 

disadvantaged farmer or rancher, if 

applicable. 

Paragraphs (b) and (c) set forth land 

eligibility criteria. Under CSP, a 

participant must enroll their entire 

agricultural operation. Eligible land for 

CSP includes private agricultural land, 

and agricultural Indian lands. 

Nonindustrial private forest land is 

also eligible by special rule, but no more 

than 10 percent of the annual acres 

enrolled may be nonindustrial private 

forest land. An applicant designates by 

submitting a separate application if they 

want to offer the nonindustrial private 

forest land for funding consideration. 

Land enrolled in the Conservation 

Reserve Program (7 CFR part 1410), 

Wetlands Reserve Program (7 CFR part 

1467), Grasslands Reserve Program (7 

CFR part 1415), and Conservation 

Security Program (7 CFR part 1469) are 

ineligible for CSP. The 2008 Act limits 

eligibility to ‘‘private’’ agricultural land; 

as such, land that is owned by a Federal, 

State, or local unit of government, with 

the exception of agricultural land under 

the jurisdiction of an Indian Tribe, is 

ineligible, regardless of the status of the 

operator. Additionally, a participant 

may not receive payment for land used 

for crop production after June 18, 2008, 

that had not been planted, considered to 

be planted, or devoted to crop 

production for at least four of the six 

years preceding that date, unless the 

land was: previously enrolled in the 

Conservation Reserve Program; 

maintained using long-term rotations, 

such as hayland in rotation; or 

incidental to the operation but needed 

for the efficient management of the 

operation. An example of land 

considered ‘‘incidental to the operation’’ 

that may be eligible for payment is land 

that had once been used for buildings 

and is now being used for crop 

production to square up a cropland 

field. 

Section 1470.7 Enhancements and 

Conservation Practices 

Section 1470.7, ‘‘Enhancements and 

conservation practices,’’ identifies that a 

participant’s decisions describing the 

additional enhancements and 

conservation practices to be 

implemented under the CSP contract 

will be recorded in the conservation 

stewardship plan. NRCS will make 

public the enhancements and 

conservation practices that may be 

installed, adopted, maintained, and 

managed through CSP. 

Section 1470.8 Technical Assistance 

Section 1470.8, ‘‘Technical 

assistance,’’ explains that NRCS or other 

technical service providers (TSP) not 

directly affiliated with NRCS could 

provide the technical consultation for 

installing conservation activities under 

CSP. NRCS will ensure that technical 

assistance is available and program 

specifications are appropriate so as not 

to limit producer participation because 

of size or type of operation, or 

production system, including specialty 

crop and organic production. NRCS will 

assist potential applicants dealing with 

the requirements of certification under 

the National Organic Program and CSP 

requirements concerning how to 

coordinate and simultaneously meet 

eligibility standards under each 

program. 

Subpart B—Contracts and Payments 

Section 1470.20 Application for 

Contracts and Selecting Offers From 

Applicants 

Section 1470.20, ‘‘Application for 

contracts and selecting offers from 

applicants,’’ identifies procedures 

associated with application acceptance, 

contract application requirements, and 

the application evaluation process. 

Paragraph (a) clarifies that CSP 

applications will be accepted 

throughout the year, while paragraph (c) 

identifies that the State Conservationist 

or Designated Conservationist will rank 

applications at selected times of the 

year, as described more fully below. 

Paragraph (b) defines contract 

application requirements. To be 

considered for funding, a contract 

application must meet the stewardship 

threshold for at least one resource 

concern and would, at a minimum, 

achieve or exceed the stewardship 

threshold for at least one priority 

resource concern by the end of the 

contract. The conservation measurement 

tool (CMT) is used to determine if the 

stewardship threshold has been met for 

one or more resource concerns. NRCS 

seeks public comment on whether 

meeting the stewardship threshold on 

one resource concern and one priority 

resource concern is adequate, or if that 

number should be greater than one. The 

contract application must also include a 

map, aerial photograph, or overlay that 

identifies the applicant’s agricultural 

operation and delineates the eligible 

land offered for payment and associated 

acreage amounts. 

The 2008 Act was prescriptive about 

application ranking factors and 

paragraph (c) identifies how contract 

applications will be evaluated. NRCS 

will conduct one or more ranking 

periods per year. It is intended that, to 

the extent practicable, at least one 

ranking period will occur in the first 

quarter of the fiscal year. 

In evaluating CSP applications, the 

State Conservationist or Designated 

Conservationist will use the CMT to 

estimate existing and proposed 

conservation performance and rank 

accordingly. Applications will be 

ranked based on: The level of 

conservation treatment proposed on all 

priority resource concerns; the degree to 

which the proposed conservation 

treatment on all applicable priority 

resource concerns effectively increases 

conservation performance based to the 

maximum extent practicable on the 


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CMT; the number of applicable priority 

resource concerns proposed to be 

treated to meet or exceed the 

stewardship threshold level by the end 

of the contract; the extent to which 

other resource concerns in addition to 

priority resource concerns may will be 

addressed to meet or exceed the 

stewardship threshold by the end of the 

contract period; and the extent to which 

the actual and anticipated 

environmental benefits from the 

contract are provided at the least cost 

relative to other similarly beneficial 

contract offers. NRCS requests public 

comment on the appropriate weighting 

of these five ranking factors that will 

maximize environmental benefits while 

maintaining consistency with the 

statutory purposes of the program. 

NRCS will consider these public 

comments when revising the weighting 

of these ranking factors when the CSP 

rule is finalized. 

Paragraph (d) provides the Chief may 

develop additional criteria for 

evaluating applications to ensure 

National, State, and local conservation 

priorities are addressed. Additional 

criteria have not been developed but 

may be considered in the future. 

Paragraph (e) specifies that the State 

Conservationist, with advice from the 

State Technical Committee and local 

work groups, will identify not less than 

three nor more than five priority 

resource concerns for a State, or the 

specific geographic areas within a State. 

Examples of priority resource concerns 

include: soil quality, soil erosion, water 

quality, water quantity, air, plants, 

animals, and energy. Public comment is 

requested on whether or not at least one 

of the priority resource concerns should 

be identified specifically to address 

wildlife habitat issues. 

Paragraph (f) has been added to 

describe how State or geographic area 

boundaries, used by State 

Conservationists to identify priority 

resource concerns, will also be used to 

establish ranking pool boundaries so 

that applicants will be ranked relative to 

other applicants who share similar 

resource challenges. For example, a 

State with diverse natural resource 

conditions and environmental factors 

may have multiple geographic areas 

established based on the distinct sets of 

priority resource concerns identified 

within each of these areas. The 

boundaries of these geographic areas 

will serve as the boundaries of ranking 

pools, within which applicants’ 

operations would compete for funding 

approval. Nonindustrial forest land will 

compete in separate ranking pools from 

agricultural land. Paragraph (f)(3) 

enables State Conservationists to set up 

pools for conservation access for 

socially disadvantaged farmers or 

ranchers and beginning farmers or 

ranchers. Paragraph (f) also specifies 

that in any fiscal year, acres allocated to 

a funding pool that are not enrolled by 

a date determined by the State 

Conservationist may be reallocated, 

with associated funds, for use in that 

fiscal year under CSP. 

Paragraph (g) specifies that the State 

Conservationist or Designated 

Conservationist will make application 

approval determinations during 

established ranking periods based on 

eligibility and ranking score. 

Section 1470.21 Contract 

Requirements 

Section 1470.21, ‘‘Contract 

requirements,’’ identifies elements 

contained within a contract and the 

responsibilities of a CSP contract 

participant. A participant must enter 

into a CSP contract, including a 

conservation stewardship plan, to enroll 

their eligible land and to receive 

payment. The CSP contract will: 

Provide for payments over a period of 

five years; incorporate by reference the 

conservation stewardship plan; state the 

payment to be issued by NRCS; and 

incorporate all provisions as required by 

law or statute. In order to receive 

payment and be in compliance with the 

CSP contract, the participant will agree 

to implement the conservation 

stewardship plan, operate and maintain 

the conservation activities, maintain 

and make available appropriate records 

documenting applied conservation 

activities and production system 

information, not engage in any action on 

the enrolled land that would interfere 

with the purposes of the conservation 

stewardship contract, and comply with 

terms and documents incorporated by 

reference in the contract. 

Section 1470.22 Conservation 

Stewardship Plan 

Section 1470.22, ‘‘Conservation 

stewardship plan,’’ describes that NRCS 

will use the conservation planning 

process to encourage producers to 

address resource concerns in a 

comprehensive manner. The 

conservation stewardship plan contains 

a record of the participant’s decisions 

on the schedule of conservation 

activities to be implemented, managed, 

and improved under CSP. 

Associated information maintained 

with the participant’s conservation 

stewardship plan includes: An 

inventory of resource concerns; 

benchmark data on the condition of the 

existing conservation activities; the 

participant’s conservation objectives; a 

plan map; and other information 

determined appropriate by NRCS. 

Where a participant wishes to pursue 

organic certification, their conservation 

stewardship plan information will 

document the participant’s transition to 

or participation in the National Organic 

Program. If a participant is approved for 

the on-farm research and demonstration 

or pilot testing option, a research, 

demonstration or pilot testing job sheet 

consistent with design protocols and 

application procedures established by 

NRCS will be included in the associated 

information. 

Section 1470.23 Conservation System 

Operation and Maintenance 

Section 1470.23, ‘‘Conservation 

system operation and maintenance,’’ 

addresses the participant’s 

responsibility for operating and 

maintaining existing conservation 

activities on the agricultural operation 

to at least the level of conservation 

performance identified at the time of 

application for the conservation 

stewardship contract period. Additional 

activities installed and adopted over the 

term of the conservation stewardship 

contract also need to be maintained. 

Section 1470.24 Payments 

Section 1470.24, ‘‘Payments,’’ 

describes the types of payments issued 

under CSP, how payments will be 

derived, and payment limitations. NRCS 

will provide annual payments for 

installing and adopting additional 

conservation activities, and improving, 

maintaining, and managing existing 

activities. A participant’s annual 

payment will be determined based on 

expected environmental benefits, 

determined by estimating conservation 

performance improvement using the 

CMT, and computed by land-use type 

for enrolled eligible land. 

If operational adjustments are needed 

during the contract, the participant may 

replace enhancements with similar 

enhancements, provided the resulting 

conservation performance improvement 

is equal to or better than the 

participant’s additional enhancements 

agreed upon at enrollment. A 

replacement that results in a decline 

below the original conservation 

performance level will not be allowed. 

A participant may be compensated 

through their annual payment for onfarm research and demonstration 

activities, or pilot testing of new 

technologies or innovative conservation 

activities. 

In establishing annual payment rates, 

NRCS will consider: estimated costs 

incurred by the participant associated 

with planning, design, materials, 


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installation, labor, management, 

maintenance, and training; estimated 

income foregone by the participant; and 

expected conservation performance 

increase as determined using the CMT. 

Consideration of these factors in CSP 

payment levels is intended to make 

them compliant with World Trade 

Organization green box requirements, 

which in brief call for payments to be 

based on producer cost incurred and 

income foregone. 

A participant may receive 

supplemental payments when he or she 

adopts a resource-conserving crop 

rotation. To be eligible for a 

supplemental payment, the participant 

must agree to adopt and maintain a 

beneficial resource-conserving crop 

rotation for the term of the contract. An 

example of a resource-conserving crop 

rotation would be adding alfalfa to a 

small grain, row crop rotation. 

NRCS will make CSP payments as 

soon as practicable after October 1 for 

the previous fiscal year’s activities. This 

retrospective payment approach will 

allow NRCS to field-verify applied 

conservation activities prior to contract 

obligation and payment. 

A CSP payment to a participant shall 

not be provided for conservation 

practices or enhancements applied with 

financial assistance through other USDA 

conservation programs, the installation 

or maintenance of animal waste storage 

or treatment facilities or associated 

waste transport or transfer devices for 

animal feeding operations, or 

conservation activities for which there 

is no cost incurred or income forgone by 

the participant. 

The 2008 Act requires that a person 

or legal entity may not receive, directly 

or indirectly, payments that, in the 

aggregate, exceed $200,000 for all 

contracts entered into during any 5-year 

period. The regulation includes an 

annual payment limit of $40,000 during 

any fiscal year to a person or legal 

entity. This annual limit was added to 

reduce the chance that participants of 

large contracts would reach their 

$200,000 five-year limit early in their 

contract term and have reduced 

incentive to meet their obligations over 

the five year life of the contract. NRCS 

will monitor person or legal entity 

payment limitations through direct 

attribution to real persons. 

The absence of a contract payment 

limitation in the 2008 Act caused 

concern because of the potential for 

excessively large contracts. Since each 

member of a joint operation is treated as 

a separate person or legal entity with 

payments directly attributed to them, 

contracts with a joint operation could be 

very large. For example, a contract with 

a joint operation with five members who 

each reach their $200,000 per person or 

legal entity limit could have contract 

payments of $1 million. To prevent 

large contracts of this nature, the rule 

includes a contract limit of $200,000 

over the term of the initial contract 

period. 

With regard to the payment limitation 

as it applies to contracts with Indians 

represented by the Bureau of Indian 

Affairs (BIA) or an Indian Tribe, 

payments exceeding the payment 

limitation may be made to the Tribal 

participant if the BIA or Tribal official 

certifies in writing that no one 

individual will receive more than the 

payment limitation. The BIA or Tribe 

must also provide, annually, a listing of 

individuals and payments made, by tax 

identification number or other unique 

identification number, during the 

previous year for calculation of overall 

payment limitations. The BIA or Indian 

Tribe must also produce, at the request 

of NRCS, proof of payments made to the 

person or legal entity that incurred costs 

or sacrificed income related to 

conservation practice implementation. 

Section 1470.25 Contract 

Modifications and Transfers of Land 

Section 1470.25, ‘‘Contract 

modifications and transfers of land,’’ 

provides that NRCS will not modify a 

contract to increase the contract 

obligation beyond the amount of the 

initial contract, with exception for 

contracts approved for renewal. The 

section further clarifies the participant’s 

contract responsibilities as they relate to 

loss of control of land and the 

obligations of the transferee. In 

particular, paragraph (c) identifies that 

it is the participant’s responsibility to 

notify NRCS of any voluntary or 

involuntary land transfer. If all or part 

of the land under contract is transferred, 

the contract terminates with respect to 

the transferred acres unless the 

transferee is eligible for CSP payments 

and agrees to accept all contractual 

obligations. 

Section 1470.26 Contract Renewal 

From Section 1470.26, ‘‘Contract 

renewal,’’ NRCS will allow a participant 

to renew the contract for one additional 

five-year period if they meet specific 

criteria. Paragraph (b) contains the 

criteria, which include that the 

participant must, as determined by 

NRCS: 

• Be in compliance with the terms of 

their initial contract; 

• Add any newly-acquired eligible 

land that is part of their operation and 

meets minimum treatment criteria; 

• Meet stewardship thresholds for 

additional priority resource concerns; 

and 

• Agree to adopt conservation 

activities. 

Section 1470.27 Contract Violations 

and Termination 

Section 1470.27, ‘‘Contract violations 

and termination,’’ addresses the 

procedures that NRCS will take when a 

violation has occurred or a contract 

termination is needed. Specifically, 

paragraph (a) provides that the State 

Conservationist, individually or by 

mutual consent, may terminate a 

contract when it is in the public interest 

or where the participants are unable to 

comply with the terms of the contract as 

a result of conditions beyond their 

control. 

Paragraph (b) states that the State 

Conservationist may allow the 

participant to retain a portion of any 

payments received in the case of 

hardship or, as appropriate, to the effort 

the participant has made to comply with 

the contract. When a participant claims 

that the reason for the violation is a 

form of hardship, the claim must be 

documented and have occurred after the 

participant entered into the contract. 

When a participant makes a hardship 

claim, the participant will provide 

documentation that details the 

hardship, when the hardship began, and 

why the hardship has prevented 

fulfilling requirements of the contract. 

Examples of hardship include: natural 

disasters, major illness, bankruptcy, and 

matters of public interest (e.g., military 

service, public utilities’ easement or 

condemnation of land, or environmental 

and archeological concerns). 

Paragraph (c) specifies that if NRCS 

determines that a participant is in 

violation, the participant will be given 

a period of time to correct the violation. 

If a participant continues to violate the 

contract, NRCS may terminate the 

contract. 

NRCS may terminate a contract 

immediately if, in accordance with 

paragraph (d) of this section, the 

participant has filed a false claim, 

engaged in a scheme or device, or 

engaged in actions that are sufficiently 

purposeful or negligent to warrant a 

termination without delay. 

Paragraph (e) specifies that if NRCS 

terminates a contract, the participant 

forfeits all rights to future payments. 

Paragraph (e) provides notice to the 

public that NRCS has the ability to 

collect liquidated damages, along with 

payments received, plus interest. 

Additionally, participants who violate 

CSP contracts may be determined 

ineligible for future CSP funding or 


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funding in other programs administered 

by NRCS. 

Subpart C—General Administration 

Section 1470.30 Fair Treatment of 

Tenants and Sharecroppers 

Section 1470.30, ‘‘Fair treatment of 

tenants and sharecroppers,’’ specifies 

that any CSP payments received must be 

divided in the manner specified in the 

contract. Where conflicts arise between 

an operator and landowner, NRCS may 

refuse to enter into a CSP contract. 

Section 1470.31 Appeals 

Section 1470.31, ‘‘Appeals,’’ notifies 

NRCS applicants and participants that 

they have the right to appeal in 

accordance with the processes and 

procedures outlined in 7 CFR 11 and 

614. Matters of general applicability, 

such as payment rates and limits, and 

eligible conservation activities, are not 

subject to appeal. 

Section 1470.32 Compliance With 

Regulatory Measures 

Section 1470.32, ‘‘Compliance with 

regulatory measures,’’ is added to notify 

participants that they are responsible for 

obtaining necessary authorities, rights, 

easements, permits, and other approvals 

necessary to implement, operate, and 

maintain items specified in the 

conservation stewardship plan. 

Additionally, participants are 

responsible for compliance with all laws 

and for all effects or actions resulting 

from the implementation of the CSP 

contract. 

Section 1470.33 Access to Operating 

Unit 

Section 1470.33, ‘‘Access to operating 

unit,’’ is added to notify potential CSP 

applicants and CSP participants that an 

authorized NRCS representative may 

enter an operating unit for the purpose 

of determining eligibility, ascertaining 

accuracy of any representations, and 

confirming compliance with program 

requirements during the term of the 

contract. NRCS will attempt to contact 

the participant prior to entering the 

property. 

Section 1470.34 Equitable Relief 

Section 1470.34, ‘‘Equitable relief,’’ 

notifies a participant that he or she may 

be eligible for equitable relief in 

accordance with 7 CFR part 635, if the 

participant relied upon the advice or 

action of NRCS and did not know or 

have reason to know that the action or 

advice was erroneous. This section also 

clarifies that liability for any action or 

advice taken on behalf of the TSP will 

be assumed by the TSP. 

Section 1470.35 Offsets and 

Assignments 

Section 1470.35, ‘‘Offsets and 

assignments,’’ specifies any payment or 

portion of a payment will be issued 

without regard to any claim or lien by 

a creditor, except for agencies of the 

United States Government. A 

participant may assign any payment in 

accordance with the provisions of 7 CFR 

part 1404. 

Section 1470.36 Misrepresentation and 

Scheme or Device 

Section 1470.36, ‘‘Misrepresentation 

and scheme or device,’’ outlines the 

remedies available to NRCS should 

NRCS determine that an applicant or 

participant misrepresented any fact 

affecting a CSP determination, adopted 

any scheme or device that tends to 

defeat the purpose of the program, 

deprives any tenant or sharecropper of 

payments to which they otherwise 

would be entitled, or made any 

fraudulent representation. Among the 

remedies available, NRCS may have 

their interest in all CSP contracts 

terminated, and determine them 

ineligible for future NRCS-administered 

conservation program funding. 

Section 1470.37 Environmental 

Credits for Conservation Improvements 

Section 1470.37, ‘‘Environmental 

credits for conservation improvements,’’ 

provides NRCS’ policy on 

environmental credits. NRCS believes 

that environmental benefits can be 

achieved by implementing conservation 

activities funded through CSP. These 

environmental benefits may result in 

opportunities for the program 

participant to sell environmental 

credits. These environmental credits 

must be compatible with the purposes 

of the CSP contract. NRCS asserts no 

direct or indirect interest in these 

credits. However, NRCS retains the 

authority to ensure that operation and 

maintenance requirements for CSPfunded improvements are met, 

consistent with § 1470.21 and § 1470.23. 

Where actions may impact the land and 

conservation activities under a CSP 

contract, NRCS will at the request of the 

participants, assist with the 

development of an O&M compatibility 

assessment. 

List of Subjects in 7 CFR Part 1470 

Agricultural operation, Conservation 

activities, Conservation measurement 

tool, Natural resources, Priority resource 

concern, Stewardship threshold, 

Resource-conserving crop rotation, Soil 

and water conservation, Soil quality, 

Water quality and water conservation, 

Wildlife and forestry management. 

■ For the reasons stated above, the 

Commodity Credit Corporation adds 

Part 1470 of Title 7 of the Code of 

Federal Regulations to read as follows: 

PART 1470—CONSERVATION 

STEWARDSHIP PROGRAM 

Subpart A—General Provisions 

Sec. 

1470.1 Applicability. 

1470.2 Administration. 

1470.3 Definitions. 

1470.4 Allocation and management. 

1470.5 Outreach activities. 

1470.6 Eligibility requirements. 

1470.7 Enhancements and conservation 

practices. 

1470.8 Technical and other assistance. 

Subpart B—Contracts and Payments 

1470.20 Application for contracts and 

selecting offers from applicants. 

1470.21 Contract requirements. 

1470.22 Conservation stewardship plan. 

1470.23 Conservation activity operation 

and maintenance. 

1470.24 Payments. 

1470.25 Contract modifications and 

transfers of land. 

1470.26 Contract renewal. 

1470.27 Contract violations and 

termination. 

Subpart C—General Administration 

1470.30 Fair treatment of tenants and 

sharecroppers. 

1470.31 Appeals. 

1470.32 Compliance with regulatory 

measures. 

1470.33 Access to agricultural operation. 

1470.34 Equitable relief. 

1470.35 Offsets and assignments. 

1470.36 Misrepresentation and scheme or 

device. 

1466.37 Environmental credits for 

conservation improvements. 

Authority: 16 U.S.C. 3838d–3838g. 

Subpart A—General Provisions 

§ 1470.1 Applicability. 

(a) This part sets forth the policies, 

procedures, and requirements for the 

Conservation Stewardship Program 

(CSP) as administered by the Natural 

Resources Conservation Service (NRCS), 

for enrollment during fiscal year 2009 

and thereafter. 

(b) The purpose of CSP is to 

encourage producers to address resource 

concerns in a comprehensive manner 

by: 

(1) Undertaking additional 

conservation activities; and 

(2) Improving, maintaining, and 

managing existing conservation 

activities. 

(c) CSP is applicable in any of the 50 

States, the District of Columbia, the 

Commonwealth of Puerto Rico, Guam, 

the Virgin Islands of the United States, 

American Samoa, and the 


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Commonwealth of the Northern Mariana 

Islands. 

(d) NRCS provides financial 

assistance and technical assistance to 

participants for the conservation, 

protection, and improvement of soil, 

water, and other related natural 

resources, and for any similar 

conservation purpose as determined by 

NRCS. 

§ 1470.2 Administration. 

(a) The regulations in this part will be 

administered under the general 

supervision and direction of the Chief, 

NRCS, who is a Vice President of the 

Commodity Credit Corporation (CCC). 

(b) The Chief is authorized to modify 

or waive a provision of this part if the 

Chief deems the application of that 

provision to a particular limited 

situation to be inappropriate and 

inconsistent with the purposes of the 

program. This authority cannot be 

further delegated. The Chief may not 

modify or waive any provision of this 

part which is required by applicable 

law. 

(c) To achieve the conservation goals 

of CSP, NRCS will: 

(1) Make the program available 

nationwide to eligible applicants on a 

continuous application basis with one 

or more ranking periods to determine 

enrollments, one of the ranking periods 

shall occur in the first quarter of each 

fiscal year, to the extent practicable; and 

(2) Develop conservation 

measurement tools for the purpose of 

carrying out the program. 

(d) NRCS will, to the maximum extent 

practicable, manage CSP to achieve a 

national average rate of $18 per acre, 

which includes the costs of all financial 

and technical assistance, and any other 

expenses associated with program 

enrollment and participation. 

(e) NRCS will establish a national 

target to set aside five percent of CSP 

acres for socially disadvantaged farmers 

or ranchers, and an additional five 

percent of CSP acres for beginning 

farmers or ranchers. 

(f) The State Conservationist will: 

(1) Obtain advice from the State 

Technical Committee and local working 

groups on the development of Statelevel technical, outreach, and program 

issues, including the identification of 

priority resource concerns for a State, or 

the specific geographic areas within a 

State; 

(2) Assign NRCS employees as 

Designated Conservationists to be 

responsible for CSP at the local level; 

and 

(3) Be responsible for the program in 

their assigned State. 

(g) NRCS may enter into agreements 

with Federal agencies, State and local 

agencies, conservation districts, Indian 

Tribes, private entities, and individuals 

to assist NRCS with program 

implementation. 

§ 1470. 3 Definitions. 

The following definitions will apply 

to this part and all documents issued in 

accordance with this part, unless 

specified otherwise: 

Agricultural land means cropland, 

rangeland, and pastureland on which 

agricultural products, or livestock are 

produced and resource concerns may be 

addressed. Agricultural lands may also 

include other land and incidental areas 

included in the agricultural operation as 

determined by NRCS. 

Agricultural operation means all 

agricultural land and other land, as 

determined by NRCS, whether 

contiguous or noncontiguous: 

(1) Which is under the effective 

control of the applicant for the term of 

the proposed contract; and 

(2) Which is operated by the applicant 

with equipment, labor, management, 

and production or cultivation practices 

that are substantially separate from 

other operations. 

Animal waste storage or treatment 

facility means a structural conservation 

practice used for storing or treating 

animal waste. 

Applicant means a person, legal 

entity, joint operation, or Indian Tribe 

that has an interest in an agricultural 

operation, as defined in 7 CFR part 

1400, who has requested in writing to 

participate in CSP. 

Beginning farmer or rancher means: 

(1) An individual or legal entity who: 

(i) Has not operated a farm, ranch, or 

nonindustrial private forest land, or 

who has operated a farm, ranch, or 

nonindustrial private forest land for not 

more than 10 consecutive years (this 

requirement applies to all members of a 

legal entity); and 

(ii) 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 is located. 

(3) In the case of a contract with a 

legal 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 activities means 

conservation systems, practices, or 

management measures needed to 

address a resource concern or improve 

environmental quality through the 

treatment of natural resources, and 

includes structural, vegetative, and 

management activities, as determined 

by NRCS. 

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,’’ ‘‘land 

conservation committee,’’ ‘‘natural 

resource district,’’ or similar name. 

Conservation measurement tool 

means procedures developed by NRCS, 

to estimate the level of environmental 

benefit to be achieved by a producer 

using the proxy of conservation 

performance improvement. 

Conservation planning means using 

the planning process outlined in the 

applicable National Planning 

Procedures Handbook of the United 

States Department of Agriculture. 

Conservation practice means a 

specified treatment, such as a structural 

or vegetative practice or management 

technique, commonly used to meet a 

specific need in planning and carrying 

out soil and water conservation 

programs for which standards and 

specifications, including interim 

standards and specifications, have been 

developed. Conservation practices are in 

the NRCS Field Office Technical Guide 

(FOTG), Section IV, which is based on 

the National Handbook of Conservation 

Practices (NHCP). 

Conservation stewardship plan means 

a record of the participant’s decisions 

that describes the schedule of 

conservation activities to be 

implemented, managed, or improved. 

Associated supporting information that 

identifies and inventories resource 

concerns and existing conservation 

activities, establishes benchmark data, 

and documents the participant’s 

conservation objectives will be 

maintained with the plan. 

Conservation system means a 

combination of conservation practices, 


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management measures, and 

enhancements used to address natural 

resource and environmental concerns in 

a comprehensive, holistic, and 

integrated manner. 

Contract means a legal document that 

specifies the rights and obligations of 

any participant who has been accepted 

into the program. A CSP contract is an 

agreement for the transfer of assistance 

from NRCS to the participant for 

installing, adopting, improving, 

managing, and maintaining 

conservation activities. 

Designated Conservationist means an 

NRCS employee whom the State 

Conservationist has designated as 

responsible for CSP at the local level. 

Enhancement means a type of 

conservation activity used to treat 

natural resources and improve 

conservation performance. 

Enhancements are installed at a level of 

management intensity that exceeds the 

sustainable level for a given resource 

concern, and those directly related to a 

practice standard are applied in a 

manner that exceeds the minimum 

treatment requirements of the standard. 

Enrollment means for the initial 

signup for FY2009, NRCS will consider 

a participant ‘‘enrolled’’ in CSP based 

on the fiscal year the application is 

submitted, once NRCS approves the 

participant’s contract. For subsequent 

ranking cut-off periods, NRCS will 

consider a participant enrolled in CSP 

based on the fiscal year the contract is 

approved. 

Field office technical guide (FOTG) 

means the official local NRCS source of 

resource information and interpretations 

of guidelines, criteria, and standards for 

planning and applying conservation 

practices and conservation management 

systems. It contains detailed 

information on the conservation of soil, 

water, air, plant, and animal resources 

applicable to the local area for which it 

is prepared. 

Indian lands means all lands held in 

trust by the United States for individual 

Indians or Indian Tribes, or all land 

titles held by individual Indians or 

Tribes, subject to Federal restrictions 

against alienation or encumbrance, or 

lands subject to the rights of use, 

occupancy and/or benefit of certain 

Indian Tribes. This term also includes 

lands for which the title is held in fee 

status by Indian Tribes, and the U.S. 

Government-owned land under the 

Bureau of Indian Affairs jurisdiction. 

Indian Tribe means any Indian Tribe, 

band, nation, pueblo, or other organized 

group or community, including any 

Alaska Native village or regional 

corporation as defined in or established 

pursuant to the Alaska Native Claims 

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

which is recognized as 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 

part 1400 of this chapter, 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 part 

1400 of this chapter, an entity created 

under Federal or State law. 

Liquidated damages means a sum of 

money stipulated in the CSP contract 

that the participant agrees to pay NRCS 

if the participant fails to fulfill the terms 

of the contract. The sum represents an 

estimate of the technical assistance 

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. 

Local working group means the 

advisory body as described in 7 CFR 

part 610. 

Management measure means one or 

more specific actions that is not a 

conservation practice, but has the effect 

of alleviating problems or improving the 

treatment of the natural resources. 

National Organic Program means the 

program, administered by the 

Agricultural Marketing Service, USDA, 

which regulates the standards for any 

farm, wild crop harvesting, or handling 

operation that wants to market an 

agricultural product as organically 

produced. 

Natural Resources Conservation 

Service means an agency of the USDA, 

which has responsibility for 

administering CSP using the funds, 

facilities, and authorities of the 

Commodity Credit Corporation. 

Nonindustrial private forest land 

means rural land that has existing tree 

cover or is suitable for growing trees, 

and is owned by an individual, group, 

association, corporation, Indian Tribe, 

or other private legal entity that has 

definitive decision-making authority 

over the land. 

Operation and maintenance means 

work performed by the participant to 

maintain existing conservation activities 

to at least the level of conservation 

performance identified at the time of 

application, and maintain additional 

conservation activities installed and 

adopted over the contract period. 

Participant means a person, legal 

entity, joint operation, or Indian Tribe 

that is receiving payment or is 

responsible for implementing the terms 

and conditions of a CSP contract. 

Payment means financial assistance 

provided to the participant under the 

terms of the CSP contract. 

Person means, as defined in part 1400 

of this chapter, an individual, natural 

person and does not include a legal 

entity. 

Priority resource concern means a 

resource concern that is identified by 

the State Conservationist, in 

consultation with the State Technical 

Committee and local working groups, as 

a priority for a State, or the specific 

geographic areas within a State. 

Producer means a person, legal entity, 

or joint operation who has an interest in 

the agricultural operation, according to 

part 1400 of this chapter, or who is 

engaged in agricultural production or 

forest management. 

Resource concern means a specific 

natural resource problem that is likely 

to be addressed successfully through the 

implementation of conservation 

activities by producers. 

Resource-conserving crop means a 

crop that is one of the following: 

(1) A perennial grass, legume, or 

grass/legume grown for use as forage, 

seed for planting, or green manure; 

(2) A high residue producing crop; or 

(3) A cover crop following an annual 

crop. 

Resource-conserving crop rotation 

means a crop rotation that: 

(1) Includes at least one resource 

conserving crop as determined by the 

State Conservationist; 

(2) Reduces erosion; 

(3) Improves soil fertility and tilth; 

(4) Interrupts pest cycles; and 

(5) Reduces depletion of soil moisture 

or otherwise reduces the need for 

irrigation in applicable areas. 

Secretary means the Secretary of the 

USDA. 

Socially disadvantaged farmer or 

rancher means a producer 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. A socially 

disadvantaged group is a group whose 

members have been subject to racial or 

ethnic prejudice because of their 

identity as members of a group, without 

regard to their individual qualities. 

These groups consist of American 

Indians or Alaskan Natives, Asians, 

Blacks or African Americans, Native 

Hawaiians or other Pacific Islanders, 

and Hispanics. Gender alone is not a 

covered group for the purposes of NRCS 

conservation programs. A socially 

disadvantaged applicant is an 

individual or entity who is a member of 

a socially disadvantaged group. For an 

entity, at least 50 percent ownership in 

the farm business must be held by 

socially disadvantaged individuals. 


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State Conservationist means the 

NRCS employee authorized to 

implement CSP and direct and 

supervise NRCS activities in a State, the 

Caribbean Area, or the Pacific Islands 

Area. 

State Technical Committee means a 

committee established by the Secretary 

in a State pursuant to 16 U.S.C. 3861. 

Stewardship threshold means the 

level of natural resource conservation 

and environmental management 

required, as determined by NRCS using 

conservation measurement tools, to 

conserve and improve the quality and 

condition of a natural resource. 

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 

activities; and 

(2) Technical infrastructure, including 

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, in lieu of or on 

behalf of NRCS as referenced in 7 CFR 

part 652. 

§ 1470.4 Allocation and management. 

(a) The Chief will allocate acres and 

associated funds to State 

Conservationists, based: 

(1) Primarily on each State’s 

proportion of eligible land to the total 

amount of eligible land in all States; and 

(2) On consideration of— 

(i) The extent and magnitude of the 

conservation needs associated with 

agricultural production in each State, 

(ii) The degree to which 

implementation of the program in the 

State is, or will be, effective in helping 

producers address those needs, and 

(iii) Other considerations determined 

by the Chief, to achieve equitable 

geographic distribution of program 

participation. 

(b) In any fiscal year, acres allocated 

to a State that are not enrolled by a date 

determined by the Chief, may be 

reallocated with associated funds to 

another State for use in that fiscal year 

under CSP. 

§ 1470.5 Outreach activities. 

(a) NRCS will establish program 

outreach activities at the national, State, 

and local levels to ensure that potential 

applicants who control eligible land are 

aware and informed that they may be 

eligible to apply for program assistance. 

(b) Special outreach will be made to 

eligible producers with historically low 

participation rates, including but not 

restricted to, beginning farmers or 

ranchers, limited resource producers, 

and socially disadvantaged farmers or 

ranchers, Indian Tribes, Alaska Natives, 

and Pacific Islanders. 

(c) NRCS will ensure that outreach is 

provided so as not to limit producer 

participation because of size or type or 

operation, or production system, 

including specialty crop and organic 

production. 

§ 1470.6 Eligibility requirements. 

(a) Eligible applicant. To be eligible to 

participate in CSP, at the time of 

application, an applicant must meet all 

the following requirements: 

(1) Be the operator in the Farm 

Service Agency (FSA) farm records 

management system for the agricultural 

operation being offered for enrollment 

in the program. Potential applicants that 

are not in the FSA farm records 

management system must establish 

records with FSA prior to application. 

Potential applicants whose records are 

not current in the FSA farm records 

management system must update those 

records with FSA prior to application; 

(2) Have documented control of the 

land for the term of the proposed 

contract unless an exception is made by 

the Chief in the case of land allotted by 

the Bureau of Indian Affairs (BIA), 

Indian lands, or other instances in 

which the Chief determines that there is 

sufficient assurance of control; 

(3) Be in compliance with the highly 

erodible land and wetland conservation 

provisions found at 7 CFR part 12; 

(4) Be in compliance with Adjusted 

Gross Income provisions found at 7 CFR 

part 1400; 

(5) Supply information, as required by 

NRCS, to determine eligibility for the 

program, including but not limited to, 

information related to eligibility 

requirements and ranking factors; 

conservation activity and production 

system records; information to verify the 

applicant’s status as a beginning farmer 

and rancher or socially disadvantaged 

farmer or rancher, if applicable; and 

payment eligibility as established by 7 

CFR part 1400; and 

(6) 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. 

(b) Eligible land. A contract 

application must include the eligible 

land on an applicant’s entire 

agricultural operation, except as 

identified in paragraph (b)(3) of this 

section. The land as described below is 

part of the agricultural operation, and 

eligible for enrollment and payment 

under CSP: 

(1) Private agricultural land; 

(2) Agricultural Indian lands; and 

(3) Nonindustrial private forest land 

(NIPF). 

(i) By special rule in the statute, NIPF 

is eligible land. 

(ii) No more than 10 percent of the 

acres enrolled nationally in any fiscal 

year may be NIPF. 

(iii) The applicant will designate by 

submitting a separate application if they 

want to offer NIPF for funding 

consideration. 

(iv) If designated for funding 

consideration, then the NIPF component 

of the operation will include all the 

applicant’s NIPF. If not designated for 

funding consideration, then the 

applicant’s NIPF will not be part of the 

agricultural operation. 

(c) Ineligible land. The following 

ineligible lands are part of the 

agricultural operation, but ineligible for 

inclusion in the contract or for payment 

in CSP: 

(1) Land enrolled in the Conservation 

Reserve Program, 7 CFR part 1410; 

(2) Land enrolled in the Wetlands 

Reserve Program, 7 CFR part 1467; 

(3) Land enrolled in the Grassland 

Reserve Program, 7 CFR part 1415; 

(4) Land enrolled in the Conservation 

Security Program, 7 CFR part 1469; 

(5) Public land including land owned 

by a Federal, State, or local unit of 

government; and 

(6) Land used for crop production 

after June 18, 2008, that had not been 

planted, considered to be planted, or 

devoted to crop production for at least 

4 of the 6 years preceding that date, 

unless that land— 

(i) Had previously been enrolled in 

the Conservation Reserve Program, 

(ii) Has been maintained using longterm crop rotation practices as 

determined by the Designated 

Conservationist, or 

(iii) Is incidental land needed for 

efficient operation of the farm or ranch 

as determined by the Designated 

Conservationist. 


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§ 1470.7 Enhancements and conservation 

practices. 

(a) Participant decisions describing 

the additional enhancements and 

conservation practices to be 

implemented under the conservation 

stewardship contract will be recorded in 

the conservation stewardship plan. 

(b) NRCS will make available to the 

public the list of enhancements and 

conservation practices available to be 

installed, adopted, maintained, and 

managed through CSP. 

§ 1470.8 Technical and other assistance. 

(a) NRCS may provide technical 

assistance to an eligible applicant or 

participant either directly or through a 

technical service provider as set forth in 

7 CFR part 652. 

(b) NRCS retains approval authority 

over certification of work done by nonNRCS personnel for the purpose of 

approving CSP payments. 

(c) NRCS will ensure that technical 

assistance is available and program 

specifications are appropriate so as not 

to limit producer participation because 

of size or type or operation, or 

production system, including specialty 

crop and organic production. In 

providing technical assistance to 

specialty crop and organic producers, 

NRCS will provide appropriate training 

to field staff to enable them to work 

with these producers and to utilize 

cooperative agreements and contracts 

with nongovernmental organizations 

with expertise in delivering technical 

assistance to these producers. 

(d) NRCS will assist potential 

applicants dealing with the 

requirements of certification under the 

National Organic Program and CSP 

requirements concerning how to 

coordinate and simultaneously meet 

eligibility standards under each 

program. 

Subpart B—Contracts and Payments 

§ 1470.20 Application for contracts and 

selecting offers from applicants. 

(a) Submission of contract 

applications. Eligible applicants may 

submit an application to enroll eligible 

land into CSP on a continuous basis. 

(b) Eligibility. To be eligible to 

participate in CSP, an applicant must 

submit to the Designated 

Conservationist for approval, a contract 

application that: 

(1) Indicates the applicant’s 

conservation activities, at the time of 

application, are meeting the 

stewardship threshold for at least one 

resource concern; 

(2) Would, at a minimum, meet or 

exceed the stewardship threshold for at 

least one priority resource concern by 

the end of the conservation stewardship 

contract by— 

(i) Installing and adopting additional 

conservation activities, and 

(ii) Improving, maintaining, and 

managing conservation activities 

present on the agricultural operation at 

the time the contract application is 

accepted by NRCS; 

(3) Provides a map, aerial photograph, 

or overlay that— 

(i) Identifies the applicant’s 

agricultural operation and/or NIPF 

component of the operation, and 

(ii) Delineates eligible land offered for 

payment with associated acreage 

amounts; and 

(4) If the applicant is applying for onfarm research and demonstration 

activities or for pilot testing, describes 

the nature of the research, 

demonstration or pilot testing in a 

manner consistent with design protocols 

and application procedures established 

by NRCS. 

(c) Evaluation of contract 

applications. NRCS will conduct one or 

more ranking periods each fiscal year. 

(1) To the extent practicable, one 

ranking period will occur in the first 

quarter of the fiscal year. 

(2) In evaluating CSP applications, the 

State Conservationist or Designated 

Conservationist will rank applications 

based on the following factors, using the 

conservation measurement tool, to the 

maximum extent practicable— 

(i) Level of conservation treatment on 

all applicable priority resource concerns 

at the time of application; 

(ii) Degree to which the proposed 

conservation treatment on applicable 

priority resource concerns effectively 

increases conservation performance; 

(iii) Number of applicable priority 

resource concerns proposed to be 

treated to meet or exceed the 

stewardship threshold by the end of the 

contract; and 

(iv) Extent to which other resource 

concerns, in addition to priority 

resource concerns, will be addressed to 

meet or exceed the stewardship 

threshold by the end of the contract 

period. 

(3) In the event that application 

ranking scores from (2) above are 

similar, the application that represents 

the least cost to the program will be 

given higher priority. 

(4) The State Conservationist or 

Designated Conservationist may not 

assign a higher priority to any 

application because the applicant is 

willing to accept a lower payment than 

the applicant would otherwise be 

eligible to receive. 

(d) State and local priorities. The 

Chief may develop and use additional 

criteria for evaluating applications that 

are determined necessary to ensure that 

national, State, and local conservation 

priorities are effectively addressed. 

(e) Application. The State 

Conservationist will take the following 

actions to facilitate the evaluation and 

ranking of applications: 

(1) Implement the use of the 

conservation measurement tool to 

estimate existing and proposed 

conservation performance; 

(2) Identify not less than 3 nor more 

than 5 priority resource concerns for a 

State, or the specific geographic areas 

within a State, with advice from the 

State Technical Committee and local 

working groups; and 

(3) Establish ranking pools for 

application evaluation purposes. 

(f) Ranking pools. Ranking pools will 

be established based on the same State 

or geographic area boundaries used to 

identify priority resource concerns so 

applicants will be ranked relative to 

other applicants who share similar 

resource challenges. 

(1) NIPF will compete in ranking 

pools separate from agricultural land. 

An applicant with both NIPF and 

agricultural land will have the options 

to submit: 

(i) One application for NIPF; 

(ii) One application for agricultural 

land; or 

(iii) Two applications, one for each 

land type. 

(2) An applicant with an agricultural 

operation or NIPF component of the 

operation that crosses ranking pool 

boundaries will make application and 

be ranked in the ranking pool where the 

largest acreage portion of their operation 

occurs. 

(3) Within each established 

geographic area, the State 

Conservationist will set up special pools 

for conservation access for certain 

farmers or ranchers, including: 

(i) One pool for socially 

disadvantaged farmers or ranchers; and 

(ii) One pool for beginning farmers or 

ranchers. 

(4) Applicants who want their 

application considered in the pool for 

socially disadvantaged farmers or 

ranchers or beginning farmers or 

ranchers will designate that intent on 

their application and provide the 

required information. 

(5) In any fiscal year, acres and 

associated funds allocated to a ranking 

pool or pool that are not enrolled by a 

date determined by the State 

Conservationist, may be reallocated 

within the State for use in that fiscal 

year under CSP. 

(g) Application approval. The State 

Conservationist or Designated 


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Conservationist will make application 

approval determinations during 

established ranking periods based on 

eligibility and ranking score. An eligible 

application may be approved for 

funding after a determination of the 

application’s ranking priority. 

§ 1470.21 Contract requirements. 

(a) After a determination that the 

application will be approved and a 

conservation stewardship plan will be 

developed in accordance with 

§ 1470.22, the State Conservationist or 

designee shall enter into a conservation 

stewardship contract with the 

participant to enroll the eligible land to 

receive payment. 

(b) The conservation stewardship 

contract shall: 

(1) Provide for payments over a period 

of 5 years; 

(2) Incorporate by reference the 

conservation stewardship plan; 

(3) State the payment amount NRCS 

agrees to make to the participant 

annually, subject to the availability of 

funds; 

(4) Incorporate all provisions as 

required by law or statute, including 

requirements that the participant will— 

(i) Implement the conservation 

stewardship plan approved by NRCS 

during the term of the contract, 

(ii) Operate and maintain 

conservation activities on the 

agricultural operation consistent with 

§ 1470.23, 

(iii) Comply with the terms of the 

contract, or documents incorporated by 

reference into the contract, 

(iv) Refund as determined by NRCS, 

any program payments received with 

interest, and forfeit any future payments 

under the program, upon the violation 

of a term or condition of the contract, 

consistent with § 1470.27, 

(v) Refund as determined by NRCS, 

all program payments received with 

interest, upon the transfer of the right 

and interest of the participant, in land 

subject to the contract, unless the 

transferee of the right and interest agrees 

to assume all obligations of the contract, 

consistent with § 1470.25, 

(vi) Maintain, and make available to 

NRCS upon request, appropriate records 

documenting applied conservation 

activity and production system 

information, and providing evidence of 

the effective and timely implementation 

of the conservation stewardship plan 

and contract, and 

(vii) Not engage in any action during 

the term of the conservation 

stewardship contract on the eligible 

land covered by the contract that would 

interfere with the purposes of the 

conservation stewardship contract; 

(5) Permit all economic uses of the 

land that: 

(i) Maintain the agricultural or 

forestry nature of the land, and 

(ii) Are consistent with the 

conservation purposes of the contract; 

(6) Include a provision to ensure that 

a participant shall not be considered in 

violation of the contract for failure to 

comply with the contract due to 

circumstances beyond the control of the 

participant, including a disaster or 

related condition, as determined by the 

State Conservationist; and 

(7) Include such other provisions as 

NRCS determines necessary to ensure 

the purposes of the program are 

achieved. 

§ 1470.22 Conservation stewardship plan. 

(a) NRCS will use the conservation 

planning process as outlined in the 

National Planning Procedures 

Handbook to encourage participants to 

address resource concerns in a 

comprehensive manner. 

(b) The conservation stewardship plan 

will contain a record of the participant’s 

decisions that describes the schedule of 

conservation activities to be 

implemented, managed, or improved 

under the conservation stewardship 

contract. 

(c) Associated supporting information 

maintained with the participant’s plan 

will: 

(1) Identify and inventory resource 

concerns; 

(2) Establish benchmark data on the 

condition of existing conservation 

activities; 

(3) Document the participant’s 

conservation objectives to reach and 

exceed stewardship thresholds; 

(4) Include a plan map delineating 

enrolled land with associated acreage 

amounts receiving program payments; 

(5) Include in the case where a 

participant wishes to initiate or retain 

organic certification, documentation 

that will support the participant’s 

transition to or participation in the 

National Organic Program; 

(6) Include in the case where a 

participant is approved for the on-farm 

research and demonstration or pilot 

testing option, a research, 

demonstration or pilot testing plan 

consistent with design protocols and 

application procedures established by 

NRCS; and 

(7) Contain other information as 

determined appropriate by NRCS. 

§ 1470.23 Conservation activity operation 

and maintenance. 

The participant will operate and 

maintain existing conservation activities 

on the agricultural operation to at least 

the level of conservation performance 

identified at the time of application for 

the conservation stewardship contract 

period and additional activities 

installed and adopted over the term of 

the conservation stewardship contract. 

§ 1470.24 Payments. 

(a) Annual payments. Subject to the 

availability of funds, NRCS will provide 

an annual payment under the program 

to compensate a participant for 

installing and adopting additional 

conservation activities, and improving, 

maintaining, and managing existing 

activities. 

(1) To receive an annual payment, a 

participant must: 

(i) Install and adopt additional 

conservation activities as scheduled in 

the conservation stewardship plan. At 

least one enhancement must be 

scheduled, installed, and adopted in the 

first year of the contract. All 

enhancements must be scheduled, 

installed, and adopted by the end of the 

third year of the contract; and 

(ii) Maintain at least the level of 

existing conservation performance 

identified at the time of application for 

the conservation stewardship contract 

period. 

(2) A participant’s annual payment 

will be determined using the 

conservation performance estimated by 

the conservation measurement tool, and 

computed by land-use type for enrolled 

eligible land. 

(3) The annual payment rates will be 

based to the maximum extent 

practicable, on the following factors: 

(i) Costs incurred by the participant 

associated with planning, design, 

materials, installation, labor, 

management, maintenance, or training; 

(ii) Income foregone by the 

participant; and 

(iii) Expected environmental benefits, 

determined by estimating conservation 

performance improvement using the 

conservation measurement tool. 

(4) The annual payment method will 

accommodate some participant 

operational adjustments without the 

need for contract modification. 

(i) Enhancements may be replaced 

with similar enhancements as long as 

the conservation performance estimated 

by the conservation measurement tool is 

equal to or better than the conservation 

performance of the additional 

enhancements offered at enrollment. An 

enhancement replacement that results 

in a decline below that conservation 

performance level will not be allowed. 

(ii) Adjustments to existing activities 

may occur consistent with conservation 

performance requirements from 

§ 1470.23(a). 


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(5) Enhancements may be applied on 

other land included in an agricultural 

operation, as determined by NRCS. 

(b) Supplemental payments. Subject 

to the availability of funds, NRCS will 

provide a supplemental payment to a 

participant receiving annual payments, 

who also agrees to adopt a resourceconserving crop rotation. 

(1) The State Conservationist will 

determine whether a resourceconserving crop rotation is eligible for 

supplemental payments based on 

whether the resource-conserving crop 

rotation is designed to provide natural 

resource conservation and production 

benefits. 

(2) A participant must agree to adopt 

and maintain a beneficial resourceconserving crop rotation for the term of 

the contract to be eligible to receive a 

supplemental payment. A resourceconserving crop rotation is considered 

adopted when the resource-conserving 

crop is planted on at least one-third of 

the rotation acres. The resourceconserving crop must be adopted by the 

third year of the contract and planted on 

all rotation acres by the fifth year of the 

contract. 

(3) The supplemental payment rate 

will be based, to the maximum extent 

practicable, on costs incurred and 

income foregone by the participant and 

expected environmental benefits, 

determined by estimating conservation 

performance improvement using the 

conservation measurement tool. 

(c) On-farm research and 

demonstration or pilot testing. A 

participant may be compensated 

through their annual payment for: 

(1) On-farm research and 

demonstration activities; or 

(2) Pilot testing of new technologies or 

innovative conservation activities. 

(d) Timing of payments. NRCS will 

make payments as soon as practicable 

after October 1 of each fiscal year for 

activities carried out in the previous 

fiscal year. 

(e) Noncompensatory matters. A CSP 

payment to a participant shall not be 

provided for: 

(1) Conservation practices or 

enhancements applied with financial 

assistance through other USDA 

conservation programs; 

(2) The design, construction, or 

maintenance of animal waste storage or 

treatment facilities or associated waste 

transport or transfer devices for animal 

feeding operations; or 

(3) Conservation activities for which 

there is no cost incurred or income 

foregone by the participant. 

(f) Payment limits. A person or legal 

entity may not receive, directly or 

indirectly, payments that, in the 

aggregate, exceed $40,000 during any 

fiscal year for all CSP contracts entered 

into, and $200,000 for all CSP contracts 

entered into during any 5-year period, 

excluding funding arrangements with 

federally recognized Indian tribes or 

Alaska Native corporations, regardless 

of the number of contracts entered into 

under the CSP by the person or legal 

entity. 

(g) Contract limit. Each conservation 

stewardship contract will be limited to 

$200,000 over the term of the initial 

contract period. 

(h) Payment limitation provisions for 

Indians for Indians represented by the 

BIA. With regard to contracts with 

individual Indians or Indians 

represented by BIA, payments 

exceeding the payment limitation may 

be made to the Tribal participant if a 

BIA or Tribal official certifies in writing 

that no one individual, directly or 

indirectly, will receive more than the 

payment limitation. The Tribal entity 

must also provide, annually, a listing of 

individuals and payments made, by 

social security or tax identification 

number or other unique identification 

number, during the previous year for 

calculation of overall payment 

limitations. The Tribal entity must also 

produce, at the request of NRCS, proof 

of payments made to the person or legal 

entity that incurred costs or sacrificed 

income related to conservation activity 

implementation. 

(i) Requirements for payment. To be 

eligible to receive a CSP payment, all 

legal entities or persons applying, either 

alone or as part of a joint operation, 

must provide a tax identification 

number and percentage interest in the 

legal entity. In accordance with 7 CFR 

part 1400, an applicant applying as a 

joint operation or legal entity must 

provide a list of all members of the legal 

entity and joint operation and 

associated embedded entities, along 

with the members’ social security 

numbers and percentage interest in the 

joint operation or legal entity. Where 

applicable, American Indians, Alaska 

Natives, and Pacific Islanders may use 

another unique identification number 

for each individual eligible for payment. 

(j) Unique tax identification numbers. 

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 CSP contracts to which the 

participant is a party. Violators will be 

considered to have provided fraudulent 

representation and be subject to full 

penalties of § 1470.36. 

(k) Payment data. NRCS will maintain 

detailed and segmented data on CSP 

contracts and payments to allow for 

quantification of the amount of 

payments made for: 

(1) Installing and adopting additional 

activities; 

(2) Improving, maintaining, and 

managing existing activities; 

(3) Participation in research and 

demonstration, or pilot projects; and 

(4) Development and periodic 

assessment and evaluation of 

conservation stewardship plans 

developed under this rule. 

§ 1470.25 Contract modifications and 

transfers of land. 

(a) NRCS may allow a participant to 

modify a conservation stewardship 

contract if NRCS determines that the 

modification is consistent with 

achieving the purposes of the program. 

(b) NRCS will not allow a participant 

to modify a conservation stewardship 

contract to increase the contract 

obligation beyond the amount of the 

initial contract, with exception for 

contracts approved by NRCS for 

renewal. 

(c) Land under contract will be 

considered transferred if the participant 

loses control of the acreage for any 

reason. 

(1) The participant is responsible to 

notify NRCS prior to any voluntary or 

involuntary transfer of land under 

contract. 

(2) If all or part of the land under 

contract is transferred, the contract 

terminates with respect to the 

transferred land unless: 

(i) The transferee of the land provides 

written notice within 60 days to NRCS 

that all duties and rights under the 

contract have been transferred to, and 

assumed by, the transferee; and 

(ii) The transferee meets the eligibility 

requirements of the program. 

§ 1470.26 Contract renewal. 

(a) At the end of an initial 

conservation stewardship contract, 

NRCS will allow a participant to renew 

the contract to receive payments for one 

additional five-year period, subject to 

the availability of funds, if they meet 

criteria from paragraph (b) of this 

section. 

(b) To be considered for contract 

renewal, the participant must: 

(1) Be in compliance with the terms 

of their initial contract as determined by 

NRCS; 

(2) Add any newly acquired eligible 

land that is part of the agricultural 

operation and meets minimum 

treatment criteria as established and 

determined by NRCS; 

(3) Meet stewardship thresholds for 

additional priority resource concerns as 

determined by NRCS; and 


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37518 Federal Register / Vol. 74, No. 144 / Wednesday, July 29, 2009 / Rules and Regulations 

(4) Agree to adopt conservation 

activities as determined by NRCS. 

§ 1470.27 Contract violations and 

termination. 

(a) The State Conservationist may 

terminate, or by mutual consent with 

the participants, terminate a contract 

where: 

(1) The participants are unable to 

comply with the terms of the contract as 

the result of conditions beyond their 

control; or 

(2) Contract termination, as 

determined by the State Conservationist, 

is in the public interest. 

(b) If a contract is terminated in 

accordance with the provisions of 

paragraph (a) of this section, the State 

Conservationist may allow the 

participant to retain a portion of any 

payments received appropriate to the 

effort the participant has made to 

comply with the contract, or, in cases of 

hardship, where forces beyond the 

participant’s control prevented 

compliance with the contract. If a 

participant claims hardship, such 

claims must be clearly documented and 

cannot have existed when the applicant 

applied for participation in the program. 

(c) If NRCS determines that a 

participant is in violation of the contract 

terms or documents incorporated 

therein, NRCS shall give the participant 

a period of time, as determined by 

NRCS, to correct the violation and 

comply with the contract terms and 

attachments thereto. If a participant 

continues in violation, NRCS may 

terminate the CSP contract in 

accordance with paragraph (e) of this 

section. 

(d) Notwithstanding the provisions of 

paragraph (c) of this section, a contract 

termination shall be effective 

immediately upon a determination by 

NRCS that the participant: 

(1) Has submitted false information or 

filed a false claim; 

(2) Engaged in any act, scheme, or 

device for which a finding of 

ineligibility for payments is permitted 

under the provisions of § 1470.36; or 

(3) Engaged in actions that are 

deemed to be sufficiently purposeful or 

negligent to warrant a termination 

without delay. 

(e) If NRCS terminates a contract, the 

participant will forfeit all rights to 

future payments under the contract, pay 

liquidated damages, and refund all or 

part of the payments received, plus 

interest. Participants violating CSP 

contracts may be determined ineligible 

for future NRCS-administered 

conservation program funding. 

(1) NRCS may require a participant to 

provide only a partial refund of the 

payments received if a previously 

installed conservation activity has 

achieved the expected conservation 

performance improvement, is not 

adversely affected by the violation or 

the absence of other conservation 

activities that would have been installed 

under the contract, and the associated 

operation and maintenance requirement 

of the activity had been met. 

(2) NRCS will have the option to 

reduce or waive the liquidated damages, 

depending upon the circumstances of 

the case. 

(i) When terminating a contract, 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 a participant claims hardship, that 

claim must be well documented and 

cannot have existed when the applicant 

applied for participation in the program. 

(ii) In carrying out its role in this 

section, NRCS may consult with the 

local conservation district. 

Subpart C—General Administration 

§ 1470.30 Fair treatment of tenants and 

sharecroppers. 

Payments received under this part 

must be divided in the manner specified 

in the applicable contract. NRCS will 

ensure that tenants and sharecroppers 

who would have an interest in acreage 

being offered receive treatment which 

NRCS deems to be equitable, as 

determined by the Chief. NRCS may 

refuse to enter into a contract when 

there is a disagreement among joint 

applicants seeking enrollment as to an 

applicant’s eligibility to participate in 

the contract as a tenant. 

§ 1470.31 Appeals. 

A participant may obtain 

administrative review of an adverse 

decision under this part in accordance 

with 7 CFR parts 11 and 614. 

Determinations in matters of general 

applicability, such as payment rates, 

payment limits, the designation of 

identified priority resource concerns, 

and eligible conservation activities are 

not subject to appeal. 

§ 1470.32 Compliance with regulatory 

measures. 

Participants shall be responsible for 

obtaining the authorities, rights, 

easements, permits, or other approvals 

or legal compliance necessary for the 

implementation, operation, and 

maintenance associated with the 

conservation stewardship plan. 

Participants shall be responsible for 

compliance with all laws and for all 

effects or actions resulting from the 

implementation of the contract. 

§ 1470.33 Access to agricultural operation. 

NRCS will have the right to enter an 

agricultural operation for the purposes 

of determining eligibility and for 

ascertaining the accuracy of any 

representations, including natural 

resource information provided by an 

applicant for the purpose of evaluating 

a contract application. Access shall 

include the right to provide technical 

assistance, determine eligibility, assess 

natural resource conditions, inspect any 

work undertaken under the contract, 

and collect information necessary to 

evaluate the implementation of 

conservation activities in the contract. 

NRCS shall make an effort to contact the 

participant prior to the exercise of this 

provision. 

§ 1470.34 Equitable relief. 

(a) If a participant relied upon the 

advice or action of NRCS and did not 

know, or have reason to know, that the 

action or advice was improper or 

erroneous, the participant may be 

eligible for equitable relief under 7 CFR 

part 635. The financial or technical 

liability for any action by a participant 

that was taken based on the advice of a 

Technical Service Provider will remain 

with the Technical Service Provider and 

will not be assumed by NRCS. 

(b) If a participant has been found in 

violation of a provision of the 

conservation stewardship contract or 

any document incorporated by reference 

through failure to comply fully with that 

provision, the participant may be 

eligible for equitable relief under 7 CFR 

part 635. 

§ 1470.35 Offsets and assignments. 

(a) Any payment or portion thereof 

due any participant under this part shall 

be allowed without regard to any claim 

or lien in favor of any 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) Any participant entitled to any 

payment may assign any payments in 

accordance with regulations governing 

assignment of payment found at 7 CFR 

part 1404. 

§ 1470.36 Misrepresentation and scheme 

or device. 

(a) If NRCS determines that an 

applicant intentionally misrepresented 

any fact affecting a CSP determination, 

the application will be cancelled 

immediately. 


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Federal Register / Vol. 74, No. 144 / Wednesday, July 29, 2009 / Rules and Regulations 37519 

1Pub. L. 103–31, 107 Stat. 77, 42 U.S.C. 1973gg– 

1 et seq. (1993). 

2 59 FR 32323 (June 23, 1994). 

3Pub. L. 107–252, 116 Stat. 1726, 42 U.S.C. 15532 

(2002). 

4 42 U.S.C. 15321. 

5 ‘‘There are transferred to the Election Assistance 

Commission established under section 201 all 

functions which the Federal Election Commission 

exercised under section 9(a) of the National Voter 

Registration Act of 1993 before the date of the 

enactment of this Act.’’ HAVA was enacted on 

October 29, 2002. 

(b) A participant who is determined to 

have erroneously represented any fact 

affecting a program determination made 

in accordance with this part shall not be 

entitled to contract payments and must 

refund to NRCS all payments, plus 

interest determined in accordance with 

7 CFR part 1403. 

(c) A participant shall refund to NRCS 

all payments, plus interest determined 

in accordance with 7 CFR part 1403, 

received by such participant with 

respect to all CSP contracts if they are 

determined to have: 

(1) Adopted any scheme or device 

that tends to defeat the purpose of the 

program; 

(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 a 

program determination. 

(d) Participants determined to have 

committed actions identified in 

paragraph (c) of this section shall: 

(1) Have their interest in all CSP 

contracts terminated; and 

(2) In accordance with § 1470.27(e), 

may be determined by NRCS to be 

ineligible for future NRCS-administered 

conservation program funding. 

§ 1470.37 Environmental credits for 

conservation improvements. 

NRCS believes that environmental 

benefits will be achieved by 

implementing conservation activities 

funded through CSP. These 

environmental benefits may result in 

opportunities for the program 

participant to sell environmental 

credits. These environmental credits 

must be compatible with the purposes 

of the contract. NRCS asserts no direct 

or indirect interest on these credits. 

However, NRCS retains the authority to 

ensure that operation and maintenance 

(O&M) requirements for CSP-funded 

improvements are met, consistent with 

§§ 1470.21 and 1470.23. Where actions 

may impact the land and conservation 

activities under a CSP contract, NRCS 

will at the request of the participant, 

assist with the development of an O&M 

compatibility assessment prior to the 

participant entering into any credit 

agreement. 

Signed this 21st day of July 2009, in 

Washington, DC. 

Dave White, 

Vice President, Commodity Credit 

Corporation and Chief, Natural Resources 

Conservation Service. 

[FR Doc. E9–17812 Filed 7–28–09; 8:45 am] 

BILLING CODE 3410–16–P 

FEDERAL ELECTION COMMISSION 

11 CFR Part 8 

[Notice 2009–17] 

ELECTION ASSISTANCE COMMISSION 

11 CFR Part 9428 

Reorganization of National Voter 

Registration Act Regulations 

AGENCY: Federal Election Commission; 

Election Assistance Commission. 

ACTION: Final rule. 

SUMMARY: The Federal Election 

Commission (FEC) and the Election 

Assistance Commission (EAC) are 

jointly taking action to transfer 

regulations implementing the National 

Voter Registration Act of 1993 (NVRA) 

from the FEC to the EAC. The Help 

America Vote Act of 2002 transferred 

the FEC’s former statutory authority 

regarding the NVRA regulations to the 

EAC. Further information is provided in 

the SUPPLEMENTARY INFORMATION that 

follows. 

DATES: This rule is effective August 28, 

2009. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Tamar Nedzar, Attorney, Election 

Assistance Commission, 1225 New York 

Avenue, NW., Suite 1100, Washington, 

DC 20005, (202) 566–3100 or (866) 747– 

1471; or Mr. Robert M. Knop, Assistant 

General Counsel, or Mr. Joshua S. 

Blume, Attorney, Federal Election 

Commission, 999 E Street, NW., 

Washington, DC 20463, (202) 694–1650 

or (800) 424–9530. 

SUPPLEMENTARY INFORMATION: 

Background 

The National Voter Registration Act of 

1993 (‘‘NVRA’’) 1 required the Federal 

Election Commission, in consultation 

with the chief election officers of the 

States, to develop a mail voter 

registration application form for 

elections to Federal office, and to 

submit to Congress no later than June 30 

of each odd-numbered year (beginning 

June 30, 1995) a report that assesses the 

impact of the NVRA and recommends 

improvements in Federal and State 

procedures, forms, and other matters 

affected by the NVRA. 42 U.S.C. 

1973gg–7(a)(2), (a)(3) (1993). The NVRA 

also assigned to the FEC the 

responsibility of prescribing, in 

consultation with the chief election 

officers of the States, such regulations as 

are necessary to carry out the 

aforementioned functions. 42 U.S.C. 

1973gg–7(a)(1) (1993). The FEC issued 

regulations implementing these NVRA 

requirements on June 23, 1994.2 These 

regulations are all currently codified in 

Part 8 of title 11, Chapter 1 of the Code 

of Federal Regulations (‘‘11 CFR Part 

8’’). 

Section 802 of the Help America Vote 

Act of 2002 (‘‘HAVA’’) 3 transferred the 

FEC’s responsibilities under the NVRA 

to the EAC—an independent Federal 

agency created by HAVA4 with 

responsibilities related to various 

aspects of Federal election 

administration. 42 U.S.C. 15532.5

Accordingly, in order to facilitate the 

EAC’s exercise of its statutory authority, 

the FEC is transferring the regulations 

implementing Section 9(a) (42 U.S.C. 

1973gg–7(a)) of the NVRA to the EAC. 

Transfer and Redesignation of Part 8 

The FEC and the EAC, through this 

joint final rule, are removing the 

regulations in 11 CFR part 8 and 

simultaneously recodifying them in 

Chapter II of Title 11, which houses 

regulations created and administered by 

the EAC. Part 8 is simultaneously 

redesignated as Part 9428. Accordingly, 

11 CFR 8.1 through 8.7 are redesignated 

as new 11 CFR 9428.1 through 9428.7. 

This is illustrated in a table below. 


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