United States Department of Agriculture
Natural Resources Conservation Service
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Digest of Conservation Provisions of the Federal Agriculture Improvement and Reform Act of 1996

Based on the final legislative language as enrolled by the House and Senate and associated conference report number 104-494.

Title I--Agriculture Market Transition Program

Sec. 111. Authorization for use of production flexibility contracts
Under production flexibility contract provisions, a participating owner or operator must agree to comply with HEL provisions, swampbuster requirements, and planting flexibility requirements. Contract acreage cannot be used for non-agricultural commercial or industrial use. Production flexibility contract provisions apply only for eligible producers of wheat, feed grains, upland cotton, and rice.

Title III Conservation

Sec. 301. Definitions applicable to Highly Erodible Cropland Conservation

Defines conservation plan as a document applicable to highly erodible cropland and containing the decision of the person with respect to location, land use, tillage, and conservation system and schedule for implementation. The plan must be approved by the conservation district in consultation with the local committee and the Secretary, or by the Secretary. Defines a conservation system as conservation practices that are based on local conditions, available conservation technology, and standards and guidelines contained in the NRCS FOTG; and provides for cost effective and practical soil erosion reduction or improvement in soil conditions on a field or group of fields with highly erodible cropland. It also defines a field to include boundaries based on croplines, if they are not subject to change. The Section requires publication of USLE and WEQ in the Federal Register within 60 days of enactment. Modification of the equations is prohibited except following notice and comment in the Federal Register.

Sec. 311. Program Ineligibility
Provides that contract payments under a production flexibility contract, marketing assistance loans, and any type of price support or payment, made available under the Agricultural Market Transition Act and the Commodity Credit Corporation Charter Act are subject to conservation compliance.

Sec. 312. Conservation reserve lands
Limits conservation requirements on lands that were included under a CRP contract that is terminated or expires to the same standards as applied to other highly erodible cropland in the area.

Sec. 313. Good faith exemption
Removes the 5 year interval for "good faith" exemption. Authorizes the Secretary, under good faith, to allow a reasonable grace period, not to exceed 1 year, during which the person can implement measures and practices necessary to be considered actively applying the person's conservation plan. Allows the Secretary to determine the degree of penalty for a good faith violation dependent on the seriousness of violation.

Sec. 314. Expedited procedures for granting variances from conservation plans
Directs the Secretary to establish expedited procedures for considering temporary variances concerning weather, pests, or disease. Requires the Secretary to make a decision on whether to grant a variance within a 30 day period beginning on the date of receipt of the request, otherwise the temporary variance shall be considered to be granted.

Sec. 315. Development and implementation of conservation plans and conservation systems
Inserts a new Sec. 1213 in the 1985 FSA on HEL that establishes requirements for the development and implementation of conservation plans for conservation compliance purposes. These include:
  • Requires the Secretary to insure that standards and guidelines in the FOTG permit a person to use a conservation system that is technically and economically feasible, based on local conditions, cost effective, and does not cause undue economic hardship.
  • Stipulates how "substantial erosion reduction" will be calculated for purposes of conservation compliance.
  • Provides that the measurement of residue consider residue in top 2 inches; provides for acceptance of producer residue measurements, including third party measurements; and provides for certification of third parties to perform residue measurements.
  • Allows self-certification for compliance at the time of application for benefits.
  • Provides for technical assistance for conservation on lands other than HEL.
  • Encourages on-farm research under a conservation plan for HEL.
  • Allows the county or area committee to provide relief to a producer in cases of undue economic hardship.
    [See also Section 343 concerning publication of State technical guides]

Sec. 316. Investigation of possible compliance deficiencies
Amends the 1985 FSA by adding a new Sec. 1215 that directs USDA employees who observe a possible compliance violation while providing on-site technical assistance, to provide the responsible person, not later than 45 days after observing the possible violation, information on actions needed to comply with the plan and this subtitle. The information is in lieu of immediately reporting the observation of a compliance violation. If corrective action is not fully implemented within one year after the responsible person receives the information, the Secretary may conduct a status review.

Sec. 317. Wind erosion estimation pilot project
Directs the Secretary to conduct a pilot project to review, and modify as appropriate, the use of wind erosion factors used under HEL requirements. The pilot project shall be for counties where producers have 100 percent of their cropland determined to be HEL, have reasonable likelihood that use of wind erosion factors have resulted in an inequitable application of the HEL requirements, and if the use of the land capability classification system may result in a more accurate delineation of the cropland. If the Secretary determines that a significant error has occurred in determining highly erodible cropland under the pilot project, that Secretary shall, at the request of owners or operators of the cropland, conduct a new determination of the cropland using the most accurate available process.

Sec. 321. Program ineligibility
Provides the Secretary discretionary authority to identify which programs are affected for individual persons and the amount of payment reduction to be assessed to persons subject to the Act who violate the wetland conservation provisions.

Sec. 322. Delineation of wetlands; exemptions to program ineligibility
Directs the Secretary to determine all wetlands located on subject land on the farm and delineate them on a certified wetlands delineation map. Existing determinations are to be certified as to whether they are sufficient for the purpose of making a determination of ineligibility. Individuals carrying out activities that are inconsistent with the law, but based on information provided by NRCS, will not be penalized. Eliminates the abandonment provision for prior converted wetlands and changes the criteria for farmed wetlands and farmed wetlands pasture. Provides the Secretary with broad mitigation options. Directs the Secretary to grant persons who converted wetlands without intent to violate a reasonable period of time to restore or mitigate the functions and values of the wetland. Directs the Secretary to identify categorical minimal effects and provide training to employees in making minimal effect determinations. Allows persons who have converted a wetland to mitigate for the losses of functions and values. Grants the Secretary the authority to establish a pilot mitigation banking initiative.

Sec. 323. Consultation and cooperation requirements
Section 1223 of the Food Security Act of 1985 is repealed. Therefore, repeals the requirement to consult with the Secretary of Interior on wetland determinations and actions granting exemptions.

Sec. 324. Application of program ineligibility to affiliated persons
The provision adds a new Sec. 1223 that requires that any reduction in benefits to persons due to a violation of wetland conservation requirements will be reduced among each affiliated person in proportion to the interests held by the affiliated person.

Sec. 325. Clarification of definition of agricultural lands in memorandum of agreement
Defines agricultural lands for purposes of the wetlands MOA to include cropland, pastureland, native pasture, rangelands, and other lands used to support the production of livestock; and tree farms.

Sec. 326. Effective date
Directs that the wetlands conservation subtitle and amendments made by the subtitle would become effective 90 days after enactment.

Sec. 331. Environmental Conservation Acreage Reserve Program (ECARP)
Establishes ECARP as the broad umbrella encompassing CRP, WRP, and EQIP. ECARP is authorized for the 1996 through 2002 calendar years. Authorizes the Secretary to designate watersheds, multistate areas, or regions of special environmental sensitivity as conservation priority areas that are eligible for enhanced assistance under CRP, WRP, and EQIP. Assistance in conservation priority areas is to help agricultural producers comply with non-point source pollution requirements of the Clean Water Act and other Federal and State environmental laws and to meet other conservation needs. Assistance may be based on the significance of the soil, water, wildlife habitat, and related natural resource problems in a watershed, area, or region, and practices that best address the problems, and that maximize environmental benefits per dollar expended, as determined by the Secretary.

Sec. 332. Conservation Reserve Program
Extends CRP until 2002 with authority for new enrollments to replace acres leaving the program.
The Secretary may maintain up to 36.4 million acres at any one time. Authorizes a CRP participant who entered into a contract before January 1, 1995, to terminate the contract not less than 60 days after notifying the Secretary, provided the contract has been in effect for at least 5 years. Lands not subject to an early termination of contract are: filterstrips, waterways, strips by riparian areas, windbreaks, shelterbelts, lands with an EI of more than 15, and other lands of high environmental value (including wetlands), as determined by the Secretary. The land leaving CRP under a terminated contract will not be held to a higher conservation requirements than those for similar lands in the area.

Sec. 333. Wetlands Reserve Program
Extends WRP until 2002 with an enrollment cap of 975,000 acres. Requires that, to the extent practicable, a balance of permanent easements, 30-year easements and voluntary restoration agreements be achieved in calendar years 1997 through 2002; eliminates lump sum easement payment option; and establishes a State Technical Committee role in restoration planning.

Sec. 334. Environmental Quality Incentives Program (EQIP)
Establishes the Environmental Quality Incentives Program (EQIP). EQIP combines functions of four conservation programs (which are repealed in Sec. 336 below) and is intended to maximize environmental benefits per dollar expended. Directs the Secretary, during FY 96 through FY 2002, to provide technical assistance, cost share and incentive payments and educational assistance to operators who enter into contracts of five to ten year terms with the Secretary. Requires producers to submit a plan containing appropriate conservation measures as a requirement for a contract. Directs the Secretary to use an offer selection system for operators to receive cost sharing payments for implementing structural practices. Tenants would be required to obtain the concurrence of the owner before the offer is accepted by the Secretary. Cost sharing payments under EQIP shall not exceed 75 percent of the projected cost of the practice, taking into consideration any payment from a state or local government. Operators of large confined livestock operations are not eligible for cost sharing on the construction of structural animal waste management facilities. However, they are eligible for incentive payments and technical assistance. Total amount of cost share and incentive payments to any person under the program may not exceed
$10,000 for any fiscal year; or
$50,000 for any multiyear contract.
The Secretary may exceed the annual payment amount on a case by case basis if needed to achieve the purposes of EQIP and if consistent with maximizing environmental benefits per dollar expended. Authorizes the Secretary to request assistance of state agencies as well as other governmental or private resources to assist in providing technical assistance for the development and implementation of conservation practices.

Sec. 335. Conservation Farm Option (CFO)
Establishes a pilot conservation farm option program for eligible producers of wheat, feed grains, cotton, and rice. Under the pilot program, producers who have contract acreage under production flexibility contracts, are provided an option of a 10 year CFO contract as a single annual payment equivalent to the amount of the combined payments under CRP, WRP and EQIP. The pilot CFO program is intended to address the conservation of soil, water, and related resources, water quality, wetlands, wildlife habitat, and similar conservation purposes. Funding increases from $7.5 million in FY 1997 to $62.5 million in FY 2002. Funding is from the Commodity Credit Corporation.

Sec. 336. Repeal of superseded authorities
The Act repeals the authority for the Great Plains Conservation Program, Agricultural Conservation Program, Colorado River Salinity Control Program, and the Water Quality Incentives Program and makes conforming amendments to replace these existing cost sharing programs with EQIP. The Act includes transition authority that allows USDA to use GPCP, ACP, CRSCP, and WQIP procedures to achieve EQIP purposes while rules are developed. After 180 days, EQIP rules must be in effect in order to carry out the program.

Sec. 341. Conservation Funding
Replaces the current subtitle E of the 1985 FSA with two new sections. The new Sec. 1241 directs that for each of fiscal years 1996 through 2002, the Secretary shall use funds from the Commodity Credit Corporation (CCC) to carry out the CRP, WRP, and EQIP. Funding from CCC for EQIP is $130 million for fiscal year 1996 and $200 million for each of fiscal years 1997 through 2002 for providing technical assistance, cost share payments, incentive payments, and education, with 50 percent for assistance targeted at practices relating to livestock production.

The new Sec. 1242 directs the Secretary, to the extent practical, to avoid duplication in conservation plans developed under HEL, CRP, WRP, and EQIP. CRP and WRP enrollment in any county is limited to 25 percent of the cropland. Not more than 10 percent of the cropland in a county may be subject to an easement acquired under the CRP and WRP (except for shelterbelts and windbreaks), unless the Secretary determines that the action would not adversely affect the local economy of a county and the operators in the county are having difficulties complying with HEL requirements. Requires the Secretary to provide safeguards for the interests of tenants and sharecroppers, including sharing of payments under CRP, WRP, and EQIP. In the preparation of a conservation compliance plan or other plan required for assistance from USDA, the Secretary shall permit producers to obtain technical assistance from approved sources, as determined by the Secretary, other than NRCS. If the Secretary rejects a technical determination made by such a source, the basis of the Secretary's determination must be supported by documented evidence. Requires the Secretary to issue regulations for CRP and WRP within 90 days after enactment.

Sec. 342. State Technical Committees
Expands membership on State Technical Committees to include agricultural producers with conservation expertise, non-profit organizations with demonstrable conservation expertise, others knowledgeable about conservation techniques, and agri-business. Requires public notice of meetings, and allows for public attendance at meetings related to conservation issues. Assigns certain additional responsibilities to State Technical Committees.

Sec. 343. Public notice for revisions to State technical guides
Requires public notice and comment for future revisions in NRCS state technical guides as used for highly erodible land and wetland conservation requirements.

Sec. 351. Through Sec. 360 National Natural Resources Conservation Foundation
Establishes a National Natural Resources Conservation Foundation to promote solutions to natural resources conservation issues. Authorized to promote partnerships, accept gifts, make grants, and conduct research and demonstrations. May not enforce regulations. Administered by a nine member Board of Trustees.

Sec. 371. Office of International Forestry
Authorizes to be appropriated for each of fiscal years 1996 through 2002 such sums as are necessary to carry out the [authorized purposes of the Office of International Forestry].

Sec. 372. Cooperative work for protection, management, and improvement of National Forest System
Authorizes cooperative work for the protection, management, and improvement of the National Forest System and permits payments for such work to be made from any appropriation of the Forest Service that is available for similar work if reimbursement is made by the cooperator in the same fiscal year. Directs the Secretary of Agriculture to develop rules to protect the interests of the Forest Service in cooperative work agreements.

Sec. 352. Forestry Incentives Program
Reauthorizes the Forestry Incentives Program through the year 2002.

Sec. 374. Optional State grants for forest legacy program
Provides the Secretary with authority to make, at the request of a participating State, grants to the state to carry out the Forest Legacy Program in that State.

Sec. 381. Conservation activities of Commodity Credit Corporation
Amends the Commodity Credit Corporation Charter Act by adding, as a specific purpose for CCC, the carrying out of conservation or environmental programs authorized by law. The amendment becomes effective on January 1, 1997.

Sec. 382. Floodplain Easements
Adds authority to acquire floodplain easements for the Emergency Watershed Protection Program.

Sec. 383. Resource Conservation & Development Program
Reauthorizes the RC&D program through 2002.

Sec. 384. Repeal of Report Requirements
Repeals current legal requirements for printing a specified number of soil survey reports.

Sec. 385. Flood Risk Reduction
Authorizes the Secretary to enter into a contract with a producer on a farm who has acreage under a production flexibility contract that is frequently flooded. A producer must agree to terminate any contract acreage and production flexibility contract, forgo loans for contract commodities, oilseeds, and ELS cotton, not apply for crop insurance issued or reinsured by USDA, comply with applicable HEL and wetlands compliance requirements, not apply for any conservation program payments from USDA, not apply for disaster program benefits, and refund the payments, with interest, if the terms of the contract are violated or if the producer transfers the property to another person who violates the contract. Producers would receive, from CCC funding, not more than the sum of 95 percent of contract payments under Title I (Agricultural Market Transition Program). Requires that funds for production flexibility contract payments be reduced by an amount equal to that amount which producers forgo under this provision. Subject to advance appropriations, the Secretary may make additional payments to an eligible producer to offset other estimated Federal government outlays on frequently flooded land. Authorizes to be appropriated necessary sums for this added payment.

Sec. 386. Conservation of Private Grazing Land
Provides authority and emphasis for a grazing lands program within USDA to promote conservation and enhancement of natural resources on such private lands.

Sec. 387. Wildlife Habitat Incentives Program
Directs the Secretary, in consultation with State Technical Committees, to establish, under the Natural Resources Conservation Service, a wildlife habitat incentives program to provide cost sharing for landowners to apply practices to develop upland wildlife, wetland wildlife, threatened and endangered species, fish, and other types of wildlife habitat. To carry out the program, a total of $50 million shall be made available for fiscal years 1996 through 2002 from funds available to carry out the Conservation Reserve Program,

Sec. 388. Farmland protection program
Under the farmland protection program, the Secretary is directed to purchase conservation easements or other interests in between 170,000 and 340,000 acres of land with prime, unique or other productive soil that is subject to a pending offer from a state or local government to limit non-agricultural uses of the land. Funding for the program, from the Commodity Credit Corporation, shall not exceed $35 million.

Sec. 389. Interim moratorium on by-pass flows
Establishes an 18 month moratorium on any Forest Service decision to require bypass flows or other water requirement in renewal or reissuance of permits for waters on or above the National Forest land. Directs that, within 60 days of enactment, a Water Rights Task Force be established to study the water rights issue related to National Forests and, within one year, make recommendations to the Secretary and specified leaders in the Congress. Specified that the Task Force activities be subject to FACA.

Sec. 390. Everglades ecosystem restoration
Provides $200,000,000 directly from the Treasury to the Secretary of Interior for conducting restoration activities in the Everglades ecosystem which may include acquiring real property. The state must fund 50 percent of any acquisition of real property. Also authorizes sale of surplus federal property in Florida, except conservation lands under jurisdiction of the Interior Department, with an allotment of $100 million to the Everglades Restoration Fund, in addition to the $200 million provided. An annual report to Congress in required for calendar years 1996 through 1999, describing funding and other activities for restoration purposes.

Sec. 391. Agricultural Air Quality research oversight
Encourages the Secretary to strengthen research efforts related to agricultural air quality. Directs the Secretary to ensure intergovernmental cooperation in research activities related to agricultural air quality and to avoid duplication of activities. The Secretary shall ensure that the results of any research related to agricultural air quality conducted by Federal agencies not report erroneous data with respect to agricultural air quality. Directs the Chief of NRCS to establish a task force to address agricultural air quality issues. The composition of the task force shall include employees of the Department of Agriculture, industry representatives, and other experts in the fields of agricultural and air quality. The task force shall advise the Secretary in his role of providing oversight and coordination related to agricultural air quality.
Title VI Credit
[A number of specific items are included in the credit title under farm ownership loans for soil and water conservation (Sec. 603) and administrative provisions for transferring inventory lands for conservation purposes (Sec. 646). Please see the legislative language and conference report for further information on these items.]
Title VII Rural Development

Sec. 791. Interest Rate Formula
Amends both the Bankhead Jones Farm Tenant Act and the Watershed Protection and Flood Protection Act to allow the Secretary to reestablish interest rate for RC&D loan and watershed loan programs.

Sec. 794. Fund for Rural America
Establishes an account labeled the Fund for Rural America and directs that $100 million be transferred from the Treasury on January 1, 1997, October 1, 1998, and October 1, 1999 to the fund. Specifies the purposes of the fund to be rural development and research. Research includes grants to conserve and enhance natural resources. The Secretary is authorized to use a third of the funds for rural development, a third for competitive research, and a third for either at the discretion of the Secretary.
Title IX Miscellaneous

Sec. 922. Student Internship Programs
Defines a student intern to be a person employed by USDA to assist scientific, professional, administrative, and technical employees of the Department, and be a student in good standing at a institution of higher learning and pursuing a course of study related to the field employed in by USDA. Authorizes use of funds to pay lodging, subsistence, and transportation expenses of a student intern at the agency.