SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 3833 of this title.

§ 3833. Duties of Secretary

In return for a contract entered into by an owner or operator under section 3832 of this title, the Secretary shall—

(1) share the cost of carrying out the conservation measures and practices set forth in the contract for which the Secretary determines that cost sharing is appropriate and in the public interest;

(2) for a period of years not in excess of the term of the contract, pay an annual rental payment in an amount necessary to compensate for

(A) the conversion of highly erodible cropland normally devoted to the production of an agricultural commodity on a farm or ranch to a less intensive use; and

(B) the retirement of any cropland base and allotment history that the owner or operator agrees to retire permanently; and

(3) provide conservation technical assistance to assist the owner or operator in carrying out the contract.

(Pub. L. 99-198, title XII, § 1233, Dec. 23, 1985, 99 Stat. 1511.)

§ 3834. Payments

(a) Time of cost-sharing and annual rental payments

The Secretary shall provide payment for obligations incurred by the Secretary under a contract entered into under this subpart—

(1) with respect to any cost-sharing payment obligation incurred by the Secretary, as soon as possible after the obligation is incurred; and

(2) with respect to any annual rental payment obligation incurred by the Secretary

(A) as soon as practicable after October 1 of each calendar year; or

(B) at the discretion of the Secretary, at any time prior to such date during the year that the obligation is incurred.

(b) Federal percentage of cost sharing payments

(1) In making cost sharing payments to an owner or operator under a contract entered into under this subpart, the Secretary shall pay 50 percent of the cost of establishing water quality and conservation measures and practices required under such contracts for which the Secretary determines that cost-sharing is appropriate and in the public interest.

(2) The Secretary shall not make any payment under this subpart to the extent that the total amount of cost sharing payments provided to such owners and operators from all sources would exceed 100 percent of the total establishment costs.

(3) In the case of land devoted to the production of hardwood trees, windbreaks, shelterbelts, or wildlife corridors under a contract entered into under this subpart after November 28, 1990, or in the case of land converted to such production under section 3835a of this title, the Secretary, in making cost share pay

ments to an owner or operator of such land, shall pay 50 percent of the reasonable and necessary costs, as determined by the Secretary, incurred by such owner or operator for maintaining such plantings that are trees or shrubs, including the cost of replanting (if the trees or shrubs were lost due to conditions beyond the control of the owner or operator), during not less than the 2-year, and not more than the 4year, period beginning on the date of such plantings, as determined appropriate by the Secretary.

(4) The Secretary may permit owners or operators who contract to devote at least 10 acres of land to the production of hardwood trees under this subpart to extend the planting of such trees over a 3-year period if at least one-third of such trees are planted in each of the first 2 years.

(5) An owner or operator shall not be eligible to receive or retain cost share assistance under this subsection if such owner or operator receives any other Federal cost share assistance with respect to such land under any other provision of law.

(c) Annual rental payments; encouragement factor; method of determination; acceptance of contract offers

(1) In determining the amount of annual rental payments to be paid to owners and operators for converting highly erodible cropland normally devoted to the production of an agricultural commodity to less intensive use, the Secretary may consider, among other things, the amount necessary to encourage owners or operators of highly erodible cropland to participate in the program established by this subpart.

(2) The amounts payable to owners or operators in the form of rental payments under contracts entered into under this subpart may be determined through

(A) the submission of bids for such contracts by owners and operators in such manner as the Secretary may prescribe; or

(B) such other means as the Secretary determines are appropriate.

(3) In determining the acceptability of contract offers, the Secretary may

(A) take into consideration the extent to which enrollment of the land that is the subject of the contract offer would improve soil resources, water quality, wildlife habitat, or provide other environmental benefits; and

(B) establish different criteria in various States and regions of the United States based upon the extent to which water quality or wildlife habitat may be improved or erosion may be abated.

(4) In the case of acreage enrolled in the conservation reserve established under this subpart that is to be devoted to hardwood trees, the Secretary may consider bids for contracts under this subsection on a continuous basis.

(d) Cash or in-kind payments

(1) Except as otherwise provided in this section, payments under this subpart

(A) shall be made in cash or in commodities in such amount and on such time schedule as is agreed on and specified in the contract; and (B) may be made in advance of determination of performance.

(2) If such payment is made with in-kind commodities, such payment shall be made by the Commodity Credit Corporation—

(A) by delivery of the commodity involved to the owner or operator at a warehouse or other similar facility located in the county in which the highly erodible cropland is located or at such other location as is agreed to by the Secretary and the owner or operator;

(B) by the transfer of negotiable warehouse receipts; or

(C) by such other method, including the sale of the commodity in commercial markets, as is determined by the Secretary to be appropriate to enable the owner or operator to receive efficient and expeditious possession of the commodity.

(3) If stocks of a commodity acquired by the Commodity Credit Corporation are not readily available to make full payment in kind to the owner or operator, the Secretary may substitute full or partial payment in cash for payment in kind.

(4) Payments to a producer under a special conservation reserve enhancement program described in subsection (f)(4) of this section shall be in the form of cash only.

(e) Regulations: payments upon death, disability, or succession

If an owner or operator who is entitled to a payment under a contract entered into under this subpart dies, becomes incompetent, is otherwise unable to receive such payment, or is succeeded by another person who renders or completes the required performance, the Secretary shall make such payment, in accordance with regulations prescribed by the Secretary and without regard to any other provision of law, in such manner as the Secretary determines is fair and reasonable in light of all of the circumstances.

(f) Rental payments fiscal year limitation; regulations; receipt of other payments unaffected; application of limit to payments received by a State, political subdivision, or agency

(1) The total amount of rental payments, including rental payments made in the form of in-kind commodities, made to an owner or operator under this subpart for any fiscal year may not exceed $50,000.

(2)(A) The Secretary shall issue regulations— (i) defining the term "person" as used in this subsection; and

(ii) prescribing such rules as the Secretary determines necessary to ensure a fair and reasonable application of the limitation contained in this subsection.

(B) The regulations issued by the Secretary on December 18, 1970, under section 1307 of this title, shall be used to determine whether corporations and their stockholders may be considered as separate persons under this subsection.

(3) Rental payments received by an owner or operator shall be in addition to, and not affect, the total amount of payments that such owner or operator is otherwise eligible to receive under this Act, the Food, Agriculture, Conservation, and Trade Act of 1990, or the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.).

(4) The provisions of this subsection that limit payments to any person, and section 1305(d) of the Agricultural Reconciliation Act of 1987, shall not be applicable to payments received by a State, political subdivision, or agency thereof in connection with agreements entered into under a special conservation reserve enhancement program carried out by that entity that has been approved by the Secretary. The Secretary may enter into such agreements for payments to States, political subdivisions, or agencies thereof that the Secretary determines will advance the purposes of this subpart.

(g) Contracts unaffected by certain Presidential orders

Notwithstanding any other provision of law, no order issued for any fiscal year under section 902 of title 2 shall affect any payment under any contract entered into at any time that is subject to this subpart, including contracts entered into prior to November 28, 1990. (h) Cost share assistance

In addition to any payment under this subpart, an owner or operator may receive cost share assistance, rental payments, or tax benefits from a State or subdivision thereof for enrolling lands in the conservation reserve program.

(Pub. L. 99-198, title XII, § 1234, Dec. 23, 1985, 99 Stat. 1511; Pub. L. 100-387, title III, § 322, Aug. 11, 1988, 102 Stat. 950; Pub. L. 101-624, title XIV, §§ 1434, 1447(a), Nov. 28, 1990, 104 Stat. 3581, 3605.)

REFERENCES IN TEXT

AMENDMENTS

1990 Subsec. (a). Pub. L. 101-624, § 1447(a), substituted reference to this subpart for reference to this subchapter.

Subsec. (b). Pub. L. 101-624, § 1434(a), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: "In making cost sharing payments to owners and operators under contracts entered into under this subpart, the Secretary shall pay 50 percent of the cost of establishing conservation measures and practices set forth in such contracts for which the Secretary determines that cost-sharing is appropriate and in the public interest."

Pub. L. 101-624, § 1447(a), substituted "this subpart" for "this subchapter" in subsec. (b) as it existed prior to the enactment of Pub. L. 101-624.

Subsec. (c)(1), (2). Pub. L. 101-624, § 1447(a), substituted reference to this subpart for reference to this subchapter.

Subsec. (c)(3). Pub. L. 101-624, § 1434(b)(1), amended par. (3) generally. Prior to amendment, par. (3) read as follows: "In determining the acceptability of contract offers, the Secretary may

"(A) take into consideration the extent of erosion on the land that is the subject of the contract and the productivity of the acreage diverted;

"(B) where appropriate, accept contract offers that provide for the establishment of—

"(i) shelterbelts and windbreaks; or

"(ii) permanently vegetated stream borders, filter strips of permanent grass, forbs, shrubs, and trees that will reduce sedimentation substantially; "(C) establish different criteria in various States and regions of the United States to determine the extent to which erosion may be abated; and

"(D) give priority to offers made by owners and operators who are subject to the highest degree of economic stress, such as a general tightening of agricultural credit or an unfavorable relationship between production costs and prices received for agricultural commodities."

Subsec. (c)(4). Pub. L. 101-624, § 1434(b)(2), added par. (4).

Subsec. (d)(1). Pub. L. 101-624, § 1447(a), substituted reference to this subpart for reference to this subchapter.

Subsec. (d)(4). Pub. L. 101-624, § 1434(c), added par.

(4).

Subsec. (e). Pub. L. 101-624, § 1447(a), substituted reference to this subpart for reference to this subchapter.

Subsec. (f). Pub. L. 101-624, § 1447(a), substituted reference to this subpart for reference to this subchapter wherever appearing.

Subsec. (f)(3). Pub. L. 101-624, § 1434(d), inserted reference to Food, Agriculture, Conservation, and Trade Act of 1990.

Subsecs. (g), (h). Pub. L. 101-624, § 1434(e), added subsecs. (g) and (h).

1988-Subsec. (f)(4). Pub. L. 100-387 added par. (4).

EFFECTIVE DATE OF 1988 AMENDMENT

Section 322 of Pub. L. 100-387 provided that the amendment made by that section is effective beginning with the 1988 crop year.

CONSERVATION RESEARCH APPLICATION

For provisions directing that enumerated provisions of the Food Security Act of 1985 shall apply to the conservation reserve program under this subchapter with respect to rental payments to persons under contracts entered into after Dec. 22, 1987, with certain exceptions, see section 1305(d) of Pub. L. 100-203, set out as a note under section 1308 of Title 7, Agriculture.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3801, 3847 of this title.

§3835. Contracts

(a) Ownership or operation requirement

(1) No contract shall be entered into under this subpart concerning land with respect to which the ownership has changed in the 3-year period preceding the first year of the contract period unless

(A) the new ownership was acquired by will or succession as a result of the death of the previous owner;

(B) the new ownership was acquired before January 1, 1985;

(C) the Secretary determines that the land was acquired under circumstances that give adequate assurance that such land was not acquired for the purpose of placing it in the program established by this subpart; or

(D) the ownership change occurred due to foreclosure on the land and the owner of the land immediately before the foreclosure exercises a right of redemption from the mortgage holder in accordance with State law. (2) Paragraph (1) shall not

(A) prohibit the continuation of an agreement by a new owner after an agreement has been entered into under this subpart; or

(B) require a person to own the land as a condition of eligibility for entering into the contract if the person

(i) has operated the land to be covered by a contract under this section for at least 3 years preceding the date of the contract or since January 1, 1985, whichever is later; and

(ii) controls the land for the contract period.

(b) Sales or transfers; options

If during the term of a contract entered into under this subpart an owner or operator of land subject to such contract sells or otherwise transfers the ownership or right of occupancy of such land, the new owner or operator of such land may

(1) continue such contract under the same terms or conditions;

(2) enter into a new contract in accordance with this subpart; or

(3) elect not to participate in the program established by this subpart.

(c) Modification; waiver

(1) The Secretary may modify a contract entered into with an owner or operator under this subpart if

(A) the owner or operator agrees to such modification; and

(B) the Secretary determines that such modification is desirable

(i) to carry out this subpart;

(ii) to facilitate the practical administration of this subpart; or

(iii) to achieve such other goals as the Secretary determines are appropriate, consistent with this subpart.

(2) The Secretary may modify or waive a term or condition of a contract entered into under this subpart in order to permit all or part of the land subject to such contract to be devot

§3836. Base history (a) Reductions

A reduction, based on a ratio between the total cropland acreage on the farm and the acreage placed in the conservation reserve authorized by this subpart, as determined by the Secretary, shall be made during the period of the contract, in the aggregate, in crop bases, quotas, and allotments on the farm with respect to crops for which there is a production adjustment program.

(b) Basis for participation in other Federal programs Notwithstanding sections 3811 and 3821 of this title, the Secretary, by appropriate regulation, may provide for preservation of cropland base and allotment history applicable to acreage converted from the production of agricultural commodities under this section, for the purpose of any Federal program under which the history is used as a basis for participation in the program or for an allotment or other limitation in the program, unless the owner and operator agree under the contract to retire permanently that cropland base and allotment history.

(c) Extension of preservation of cropland base and allotment history

The Secretary shall offer the owner or operator of a farm or ranch an opportunity to extend the preservation of cropland base and allotment history pursuant to subsection (b) of this section for such time as the Secretary determines to be appropriate after the expiration date of a contract under this subpart at the request of such owner or operator. In return for such extension, the owner or operator shall agree to continue to abide by the terms and conditions of the original contract, except that

(1) such owner or operator shall receive no additional cost share, annual rental, or bonus payment; and

(2) the Secretary may permit, subject to such terms and conditions as the Secretary may impose, haying and grazing of acreage subject to such agreement, except during any consecutive 5 month period that is established by the State committee. Each 5 month period shall be established during the period beginning April 1 and ending October 31 of a year. In the case of a natural disaster, the Secretary may permit unlimited haying and grazing on such acreage.

(d) Additional remedy for violations

In addition to any other remedy prescribed by law, the Secretary may reduce or terminate the amount of cropland base and allotment history preserved pursuant to subsection (c) of this section for acreage with respect to which a violation of a term or condition occurs.

(Pub. L. 99-198, title XII, § 1236, Dec. 23, 1985, 99 Stat. 1514; Pub. L. 101-624, title XIV, §§ 1436, 1447(a), Nov. 28, 1990, 104 Stat. 3583, 3605.)

AMENDMENTS

1990-Subsec. (a). Pub. L. 101-624, § 1447(a), substituted reference to this subpart for reference to this subchapter.

Subsecs. (c), (d). Pub. L. 101-624, § 1436, added subsecs. (c) and (d).

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 3832 of this title.

SUBPART C-WETLANDS RESERVE PROGRAM

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in sections 3830, 3835a of this title; title 7 section 6962.

§ 3837. Wetlands reserve program

(a) Establishment

The Secretary shall establish a wetlands reserve program to assist owners of eligible lands in restoring and protecting wetlands.

(b) Minimum enrollment

The Secretary shall enroll into the wetlands reserve program

(1) a total of not less than 330,000 acres by the end of the 1995 calendar year; and

(2) a total of not less than 975,000 acres during the 1991 through 2000 calendar years. (c) Eligibility

For purposes of enrolling land in the wetland reserve established under this subpart during the 1991 through 2000 calendar years, land shall be eligible to be placed into such reserve if the Secretary, in consultation with the Secretary of the Interior at the local level, determines that

(1) such land is farmed wetland or converted wetland, together with adjacent lands that are functionally dependent on such wetlands, except that converted wetlands where the conversion was not commenced prior to December 23, 1985, shall not be eligible to be enrolled in the program under this section; and

(2) the likelihood of the successful restoration of such land and the resultant wetland values merit inclusion of such land in the program taking into consideration the cost of such restoration.

(d) Other eligible land

The Secretary may include in the wetland reserve established under this subpart, together with land that is eligible under subsection (c) of this section

(1) farmed wetland and adjoining lands, enrolled in the conservation reserve, with the highest wetland functions and values, and that are likely to return to production after they leave the conservation reserve;

(2) other wetland of an owner that would not otherwise be eligible if the Secretary determines that the inclusion of such wetland in such easement would significantly add to the functional value of the easement; and

(3) riparian areas that link wetlands that are protected by easements or some other device or circumstance that achieves the same purpose as an easement.

(e) Ineligible land

The Secretary may not acquire easements

on