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2002 Farm Bill Agricultural Management Assistance Program: Final Rule[Federal Register: April 9, 2003 (Volume 68, Number 68)] [Rules and Regulations] [Page 17272-17276] From the Federal Register Online via GPO Access http://www.gpoaccess.gov/fr/index.html This notice is also available in
Adobe Acrobat format. [DOCID:fr09ap03-3] DEPARTMENT OF AGRICULTURE Commodity Credit Corporation 7 CFR Part 1465 RIN 0578-AA31 Agricultural Management Assistance Program AGENCY: Commodity Credit Corporation, USDA. ACTION: Final rule. SUMMARY: This final rule implements section 2501 of the Farm Security and Rural Investment Act of 2002 (the 2002 Act) which amended section 524 of the Federal Crop Insurance Act which permits CCC to fund the Agricultural Management Assistance (AMA) program. This final rule describes how NRCS intends to implement AMA as authorized by the amendment in the 2002 Act. EFFECTIVE DATE: May 9, 2003.ADDRESSES: This rule may also be accessed via Internet. Users can access the Natural Resources Conservation Service (NRCS) homepage at http://www.nrcs.usda.gov; select Farm Bill 2002, and click on AMA Final rule. FOR FURTHER INFORMATION CONTACT: Dave Mason, Program Manager, Conservation Operations Division, NRCS, P.O. Box 2890, Washington, DC 20013-2890, telephone: (202) 720-1873; fax: (202) 720-4265; e-mail: dave.mason@usda.gov, Attention: Agricultural Management Assistance. SUPPLEMENTARY INFORMATION: Discussion of Program Section 2501 of the Farm Security and Rural Investment Act of 2002 (the 2002 Act) amended section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524) to permit CCC to fund the Agricultural Management Assistance (AMA) program at the amount of $20,000,000 for each of the fiscal years 2003 through 2007. Section 524(b) of the Federal Crop Insurance Act of 2000, as amended by section 133 of the Agricultural Risk Protection Act of 2000, authorized the AMA program. As provided by section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524), as amended by the 2002 Act, the funds, facilities, and authorities of the Commodity Credit Corporation (CCC) are available to NRCS for carrying out AMA. (The Chief of the NRCS is vice-president of the CCC.) Accordingly, where NRCS is mentioned in this rule, it also refers to the CCC's funds, facilities, and authorities where applicable. The Commodity Credit Corporation (CCC) administers the funds under the general supervision of a Vice President of the CCC who is the Chief of the Natural Resources Conservation Service (NRCS). These funds will be used annually for cost share assistance to producers in 15 States in which participation in the Federal Crop Insurance Program is historically low. The 15 States include Connecticut, Delaware, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Utah, Vermont, West Virginia, and Wyoming. The cost share assistance will encourage and assist producers in the selected States to adopt natural resources conservation practices and investment strategies that will reduce or mitigate risks to their agricultural enterprises. NRCS will use an allocation formula to determine the amount of funds that each state will receive that have been weighted to meet National objectives for the AMA conservation program. The formula used to determine allocation of funds to states consists of ranking factors of natural resource concerns. The formula is similar in nature to ones that have been used for other NRCS conservation programs. However, this formula is primarily used to allocate funds to the states for practices that will mitigate a producer's risk of production through the implementation of resource conservation practices that reduce soil erosion, utilize integrated pest management principles and assist producers in transition to organic farming based operations. Production and marketing diversification is enhanced by utilizing integrated pest management principles by reducing and applying chemicals for production as needed. Producers who elect to eliminate chemical usage by converting to organic farming will be able to provide products to a growing sector of the American population whose daily diet consists partially or totally of organically produced food items. This allows producers to use marketing diversification as a tool to enhance their operations. AMA is targeted to 15 states that have been historically low in participation in programs that provide opportunities for producers to environmentally and financially implement conservation practices and marketing strategies to provide safeguards against the cyclic economic variances of the agricultural economy. Other practices that producers may elect to implement include the opportunity to construct or improve watershed management or irrigation structures and plant trees to form windbreaks or improve water quality. Based on national program objectives and state priorities and resource concerns, the State Conservationist in conjunction with advice from the State Technical Committee will determine which practices are eligible for program payments. The practices must meet the purposes set out in section 1465.1 of this rule. The State Conservationist or designated conservationist with advice from the State Technical Committee and using a locally led process will rank and select applications for contracting based on the state- developed ranking criteria and ranking process. The NRCS representative will work with the applicant to collect the necessary information to evaluate the application using the ranking criteria. [[Page 17273]] Executive Order 12866 Pursuant to Executive Order 12866 (58 FR 51735, October 4, 1993), the Office of Management and Budget has determined that this final rule is not a significant regulatory action. Regulatory Flexibility Act The Regulatory Flexibility Act is not applicable to this 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 NRCS has determined through an Environmental Assessment (EA) for the Agricultural Management Assistance Program that the issuance of this final rule would not have a significant impact on the human environment. Copies of the Environmental Assessment and the Finding of No Significant Impact may be obtained from Dave Mason, Conservation Operations Division, Natural Resources Conservation Service, P.O. Box 2890, Washington, DC 20013-2890. Civil Rights Impact Analysis NRCS has determined through a Civil Rights Impact Analysis that the issuance of this final rule will not have a significant effect on minorities. Copies of the Civil Rights Impact Analysis and Finding of No Significant Impact may be obtained from Dave Mason, Conservation Operations Division, Natural Resources Conservation Service, P.O. Box 2890, Washington, DC 20013-2890. Paperwork Reduction Act Section 2702 (b)(1)(A) of the 2002 Act exempts the promulgation of regulations and the administration of the AMA from the requirements of the Paperwork Reduction Act. Executive Order 12988 This final rule has been reviewed in accordance with Executive Order 12988. The provisions of this final rule are not retroactive. Furthermore, the provisions of this final rule pre-empt State and local laws to the extent such laws are inconsistent with this 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. Unfunded Mandates Reform Act of 1995 Pursuant to Title II of the Unfunded Mandates Reform Act of 1995, Public Law 104-4, NRCS assessed the effects of this rulemaking action on State, local, and tribal governments, and the public. This action does not compel the expenditure of $100 million or more by any State, local, or tribal governments, or anyone in the private sector; therefore a statement under section 202 of the Unfunded Mandates Reform Act of 1995 is not required. Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994 USDA classified this final rule as "not major" under section 304 of the Department of Agriculture Reorganization Act of 1994, Pub. L. 104-354. Therefore, a risk assessment is not required. Discussion of Comments NRCS issued a proposed rule with request for comments on August 28, 2002, in the Federal Register, Volume 67, Number 167, Pages 55171- 55175. One comment was received during the comment period on the proposed regulation. The commenter stated that they were interested in organizing a meeting with a group of farmers in Illinois. Since the state of Illinois is not eligible for participation in the program and the comment was not directed to any section of the proposed rule, no changes were made to the rule. List of Subjects in 7 CFR Part 1465 Conservation contract, Conservation plan, Conservation practices, Soil and water conservation. Accordingly, Title 7 of the Code of Federal Regulations is amended by adding a new part 1465 to read as follows: PART 1465--AGRICULTURAL MANAGEMENT ASSISTANCE Subpart A--General Provisions Sec. 1465.1 Purposes and applicability. 1465.2 Administration. 1465.3 Definitions. 1465.4 Program requirements. 1465.5 Conservation practices. Subpart B--Contracts 1465.20 Applications for participation and selecting applications for contracting. 1465.21 Contract requirements. 1465.22 Conservation practice operation and maintenance. 1465.23 Cost-share payments. 1465.24 Contract modification, extension, and transfer of land. 1465.25 Contract violations and termination. Subpart C--General Administration 1465.30 Appeals. 1465.31 Compliance with regulatory measures. 1465.32 Access to operating unit. 1465.33 Performance based upon advice or action of representatives of NRCS. 1465.34 Offsets and assignments. 1466.35 Misrepresentation and scheme or device. Authority: 7 U.S.C. 1524(b), 16 U.S.C. 3801. Subpart A--General Provisions Sec. 1465.1 Purposes and applicability. Through the Agricultural Management Assistance (AMA) program, the NRCS provides financial assistance funds annually to producers in 15 statutorily designated states to construct or improve water management structures or irrigation structures; to plant trees to form windbreaks or to improve water quality; and to mitigate risk through production diversification or resource conservation practices, including soil erosion control, integrated pest management, or transition to organic farming. The AMA Program is applicable in Connecticut, Delaware, Maryland, Massachusetts, Maine, Nevada, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Utah, Vermont, West Virginia, and Wyoming. Sec. 1465.2 Administration.
Sec. 1465.3 Definitions. The following definitions apply to this part and all documents issued in [[Page 17274]] accordance with this part, unless specified otherwise: Applicant means an agricultural producer who has requested in writing to participate in the AMA Program. Producers who are members of a joint operation shall be considered one applicant. Chief means the Chief of NRCS, or designee. Conservation district means a political subdivision of a State, Indian tribe, or territory, organized pursuant to the State or territorial soil conservation district law, or tribal law. The subdivision may be a conservation district, soil conservation district, soil and water conservation district, resource conservation district, natural resource district, land conservation committee, or similar legally constituted body. Conservation plan means a record of the participant's decisions, and supporting information, for treatment of a unit of land or water, and includes the schedule of operations, activities, and estimated expenditures needed to solve identified natural resource concerns. Conservation practice means a specified treatment, such as a structural or vegetative practice or a land management practice, which is planned and applied according to NRCS standards and specifications. Contract means a legal document that specifies the rights and obligations of any person who has been accepted for participation in the AMA Program. Cost-share payment means the financial assistance from NRCS to the participant to share the cost of installing eligible practices. Designated conservationist means an NRCS employee whom the State conservationist has designated as responsible for administration of the AMA Program. Indian tribe means any Indian tribe, band, nation, or other organized group or community which is recognized as eligible for the special assistance and services provided by the United States to Indians because of their status as Indians. Indian trust lands means real property in which the United States holds title as trustee for an Indian or tribal beneficiary, or a Indian or tribal beneficiary holds title and the United States maintains a trust relationship. Life-span means the minimum time period in which the conservation practices are to be maintained and used for their intended purpose. Liquidated damages means a sum of money stipulated in the contract that the participant agrees to pay if the participant breaches the contract. The sum represents an estimate of the anticipated or actual harm caused by the breach, and reflects the difficulties of proof of loss and the inconvenience or non-feasibility of otherwise obtaining an adequate remedy. Operation and maintenance means work that is to be performed by the participant to keep the applied conservation practice functioning for the intended purpose during its life span. Operation includes the administration, management, and performance of non-maintenance actions needed to keep the completed practice safe and functioning as intended. Maintenance includes work to prevent deterioration of the practice, repairing damage, or replacement of the practice to its original condition if one or more components fail.
Participant means a producer who is a party to an AMA contract. Producer means a person who is engaged in agricultural production. Secretary means the Secretary of the United States Department of Agriculture. State Conservationist means the NRCS employee authorized to direct and supervise NRCS activities in a State, the Caribbean Area, or the Pacific Basin Area. State Technical Committee means a committee established by the Secretary in a State pursuant to 16 U.S.C. 3861. Technical assistance means the personnel and support resources needed to conduct conservation practice survey, layout, design, installation, and certification; training and providing quality assurance for professional conservationists; and evaluation and assessment of the AMA Program. Unit of concern means a parcel of agricultural land that has natural resource conditions that are of concern to the participant. Sec. 1465.4 Program requirements.
Sec. 1465.5 Conservation practices.
Subpart B--Contracts Sec. 1465.20 Applications for participation and selecting applications for contracting.
Sec. 1465.21 Contract requirements.
Sec. 1465.22 Conservation practice operation and maintenance. The contract will incorporate the operation and maintenance of the conservation practice(s) applied under the contract. The participant must operate and maintain the conservation practice(s) for its intended purpose for the life span of the conservation practice, as identified in the contract or conservation plan, as determined by NRCS. NRCS may periodically inspect the conservation practices during the life span of the practices as specified in the contract to ensure that operation and maintenance is occurring. Sec. 1465.23 Cost-share payments.
Sec. 1465.24 Contract modification, extension, and transfer of land.
Sec. 1465.25 Contract violations and termination.
Subpart C--General Administration Sec. 1465.30 Appeals.
Sec. 1465.31 Compliance with regulatory measures. Participants who carry out conservation practices will be responsible for obtaining the authorities, rights, easements, or other approvals necessary for the implementation, operation, and maintenance of the conservation practices in keeping with applicable laws and regulations. Participants will be responsible for compliance with all laws and for all effects or actions resulting from the participant's performance under the contract. Sec. 1465.32 Access to operating unit. Any authorized NRCS representative shall have the right to enter an operating unit or tract for the purpose of ascertaining the accuracy of any representations made in a contract or in anticipation of entering a contract, as to the performance of the terms and conditions of the contract. Access shall include the right to provide technical assistance, inspect any work undertaken under the contract and collect information necessary to evaluate the performance of conservation practices in the contract. The NRCS representative will make a reasonable effort to contact the participant prior to the exercise of this provision. Sec. 1465.33 Performance based upon advice or action of representatives of NRCS. If a participant relied upon the advice or action of any authorized representative of NRCS, and did not know or have reason to know that the action or advice was improper or erroneous, the State Conservationist may accept the advice or action as meeting the requirements of the AMA Program and may grant relief, to the extent it is deemed desirable by NRCS, to provide a fair and equitable treatment because of the good-faith reliance on the part of the participant. Sec. 1465.34 Offsets and assignments.
Sec. 1465.35 Misrepresentation and scheme or device.
Signed in Washington, DC, on March 28, 2003. BRUCE I. KNIGHT BILLING CODE 3410-16-P |
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