
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 16USC3834]

 
                         TITLE 16--CONSERVATION
 
 CHAPTER 58--ERODIBLE LAND AND WETLAND CONSERVATION AND RESERVE PROGRAM
 
       SUBCHAPTER IV--AGRICULTURAL RESOURCES CONSERVATION PROGRAM
 
       Part I--Environmental Conservation Acreage Reserve Program
 
                     subpart b--conservation reserve
 
Sec. 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 payments 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 4-year, 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, Sec. 1234, Dec. 23, 1985, 99 Stat. 1511; 
Pub. L. 100-387, title III, Sec. 322, Aug. 11, 1988, 102 Stat. 950; Pub. 
L. 101-624, title XIV, Secs. 1434, 1447(a), Nov. 28, 1990, 104 Stat. 
3581, 3605.)

                       References in Text

    November 28, 1990, referred to in subsec. (b)(3), was in the 
original ``the date of enactment of this section'', and was translated 
as meaning the date of enactment of Pub. L. 101-624, which generally 
amended subsec. (b) of this section, to reflect the probable intent of 
Congress.
    This Act, referred to in subsec. (f)(3), is Pub. L. 99-198, Dec. 23, 
1985, 99 Stat. 1354, as amended, known as the Food Security Act of 1985. 
For complete classification of this Act to the Code, see Short Title of 
1985 Amendment note set out under section 1281 of Title 7, Agriculture, 
and Tables.
    The Food, Agriculture, Conservation, and Trade Act of 1990, referred 
to in subsec. (f)(3), is Pub. L. 101-624, Nov. 28, 1990, 104 Stat. 3359, 
as amended. For complete classification of this Act to the Code, see 
Short Title of 1990 Amendment note set out under section 1421 of Title 7 
and Tables.
    The Agricultural Act of 1949, referred to in subsec. (f)(3), is act 
Oct. 31, 1949, ch. 792, 63 Stat. 1051, as amended, which is classified 
principally to chapter 35A (Sec. 1421 et seq.) of Title 7. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 1421 of Title 7 and Tables.
    Section 1305(d) of the Agricultural Reconciliation Act of 1987, 
referred to in subsec. (f)(4), is section 1305(d) of Pub. L. 100-203, 
which is set out as a note under section 1308 of Title 7.


                               Amendments

    1990--Subsec. (a). Pub. L. 101-624, Sec. 1447(a), substituted 
reference to this subpart for reference to this subchapter.
    Subsec. (b). Pub. L. 101-624, Sec. 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, Sec. 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, Sec. 1447(a), substituted 
reference to this subpart for reference to this subchapter.
    Subsec. (c)(3). Pub. L. 101-624, Sec. 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, Sec. 1434(b)(2), added par. (4).
    Subsec. (d)(1). Pub. L. 101-624, Sec. 1447(a), substituted reference 
to this subpart for reference to this subchapter.
    Subsec. (d)(4). Pub. L. 101-624, Sec. 1434(c), added par. (4).
    Subsec. (e). Pub. L. 101-624, Sec. 1447(a), substituted reference to 
this subpart for reference to this subchapter.
    Subsec. (f). Pub. L. 101-624, Sec. 1447(a), substituted reference to 
this subpart for reference to this subchapter wherever appearing.
    Subsec. (f)(3). Pub. L. 101-624, Sec. 1434(d), inserted reference to 
Food, Agriculture, Conservation, and Trade Act of 1990.
    Subsecs. (g), (h). Pub. L. 101-624, Sec. 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, 3831 of this title.
