§3834. Payments

(a) Timing

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 practicable 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 option 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 general

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 each contract for which the Secretary determines that cost sharing is appropriate and in the public interest.

(2) Limitation

The Secretary shall not make any payment to an owner or operator under this subpart to the extent that the total amount of cost sharing payments provided to the owner or operator from all sources would exceed 100 percent of the total cost of establishing measures and practices described in paragraph (1).

(3) Hardwood trees, windbreaks, shelterbelts, and wildlife corridors

(A) Applicability

This paragraph applies to-

(i) 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; and

(ii) land converted to such production under section 3835a of this title.

(B) Payments

In making cost share payments to an owner or operator of land described in subparagraph (A), the Secretary shall pay 50 percent of the reasonable and necessary costs, as determined by the Secretary, incurred by the owner or operator for maintaining 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 4-year, period beginning on the date of the planting of the trees or shrubs, as determined appropriate by the Secretary.

(4) Hardwood tree planting

The Secretary may permit owners or operators that contract to devote at least 10 acres of land to the production of hardwood trees under this subpart to extend the planting of the trees over a 3-year period if at least 1/3 of the trees are planted in each of the first 2 years.

(5) Other Federal cost share assistance

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

(c) Annual rental payments

(1) In general

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) Method of determination

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) Acceptance of contract offers

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 on the extent to which water quality or wildlife habitat may be improved or erosion may be abated.

(4) Hardwood tree acreage

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) In general

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) Method of providing in-kind payments

If the payment to an owner or operator is made with in-kind commodities, the 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) Cash payments

(A) Commodity Credit Corporation stocks

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.

(B) Special conservation reserve enhancement program

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

(e) Payments on death, disability, or succession

If an owner or operator that is entitled to a payment under a contract entered into under this subpart dies, becomes incompetent, is otherwise unable to receive the payment, or is succeeded by another person that renders or completes the required performance, the Secretary shall make the 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) Payment limitation for rental payments

(1) In general

The total amount of rental payments, including rental payments made in the form of in-kind commodities, made to a person under this subpart for any fiscal year may not exceed $50,000.

(2) Regulations

(A) In general

The Secretary shall promulgate regulations-

(i) defining the term "person" as used in this subsection; and

(ii) providing such terms and conditions as the Secretary determines necessary to ensure a fair and reasonable application of the limitation established by this subsection.

(B) Corporations and stockholders

The regulations promulgated by the Secretary on December 18, 1970, under section 1307 of title 7, shall be used to determine whether corporations and their stockholders may be considered as separate persons under this subsection.

(3) Other payments

Rental payments received by an owner or operator shall be in addition to, and not affect, the total amount of payments that the owner or operator is otherwise eligible to receive under the Farm Security and Rural Investment Act of 2002.

(4) Special conservation reserve enhancement program

(A) In general

The provisions of this subsection that limit payments to any person, and section 1305(d) of the Agricultural Reconciliation Act of 1987 (7 U.S.C. 1308 note; Public Law 100–203), 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.

(B) Agreements

The Secretary may enter into such agreements for payments to States (including political subdivisions and agencies of States) that the Secretary determines will advance the purposes of this subpart.

(g) Other State or local 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 land in the conservation reserve program.

(Pub. L. 99–198, title XII, §1234, as added Pub. L. 107–171, title II, §2101(a), May 13, 2002, 116 Stat. 245 .)

References in Text

The Farm Security and Rural Investment Act of 2002, referred to in subsec. (f)(3), is Pub. L. 107–171, May 13, 2002, 116 Stat. 134 . For complete classification of this Act to the Code, see Short Title note set out under section 7901 of Title 7, Agriculture, and Tables.

Prior Provisions

A prior section 3834, 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, related to payments for obligations, prior to the general amendment of this subpart by Pub. L. 107–171.

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.