normal rotation pattern and is at least equal in productivity to the land on the farm which would qualify under (i) above; or

(iv) Designated and approved as diverted acreage under the upland cotton, feed grain, or wheat program in at least 1 of the 4 years preceding the first year of the agreement period, except that any of such acreage devoted to trees or a water storage facility shall not be eligible for designation.

(2) The following land is not eligible for designation:

(i) Land which is designated diverted under any other program;

as

(ii) Land which is harvested in the first year of the agreement period prior to designation as diverted acreage, except as provided in paragraph (d) of this section;

(iii) Turn rows, drainage ditches, wet low-lying areas, droughty knobs or banks, other areas which normally would not produce a crop and strips of less than four normal rows in skip-row planting patterns;

(iv) Land which the county committee determines the producer reasonably could not expect to use for the production of the crops being diverted because of its physical condition or other reason, unless the county committee determines the condition is temporary and the producer is not otherwise receiving Federal agricultural payments other than costshares with respect to such land;

(v) Land which at the time the diverted acreage is designated is expected to be utilized in the first year of the agreement period for industrial development, housing, highway construction, or other use;

(vi) Land devoted to nonagricultural use;

(vii) Land devoted in the first year of the agreement period to asparagus, strawberries, or bush fruits (including new plantings of such crops);

(viii) All land on a farm on which a conservation reserve contract has been canceled since January 1 of the year preceding the first year of the agreement period because of a scheme or device to exceed the $5,000 payment limitation under the conservation reserve program unless the Deputy Administrator determines that participation in the program would not be against the public interest; (ix) National wildlife refuges;

(x) Land intended to be used for a specific nonfarm use in a later year,

which would not be devoted in the first year of the agreement period to an agricultural use;

(xi) Land owned by the United States or a State or local government (or agency or political subdivision thereof) except (a) any land upon which a homestead or desert land entry has been made and is in good standing and (b) cropland owned and operated by a State, county, or local government which the owner (State, county, or local government) establishes to the satisfaction of the county committee that it has adequate equipment or other facilities readily available for the successful production of row crops and small grains and that the production of such crops is a normal practice for such land;

(xii) Land in an orchard or vineyard, except land on which the trees or vines were removed during the year preceding the first year of the agreement period and the county committee determines such land is suitable for row or grain crop production and is equal in productivity to other land on the farm;

(xiii) Land with respect to which the ownership has changed during the 3year period preceding the first year of the agreement 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 prior to January 1, 1964; (c) the new ownership was acquired prior to January 1, 1965, upon the exercise of an option to purchase entered into prior to January 1, 1964; (d) the new ownership was acquired prior to January 1, 1965, to replace eligible land from which the producer was displaced as a result of the acquisition of such land by a Federal, State, or local agency having the right of eminent domain; or (e) the new ownership was acquired prior to January 1, 1965, and the county committee determines that (1) the land was acquired by the producer for purpose of farming and not for the purpose of placing it in the program and (2) the producer carried out normal farming operations on the land after the date of acquisition: Provided, That a producer shall not be prohibited from entering into an agreement if such producer has operated the land to be designated for as long as three years preceding the first year of the agreement and has control of such land for the agreement period. (These provisions shall not prohibit the continuation of an

agreement by a new owner after an agreement has once been entered into under this subpart: Provided, That beginning with 1967 agreements, the continuation of an agreement by a new owner shall be permitted only if the county committee determines that the original agreement was entered into by the original owner in good faith with no intention of transferring his interest in the farm to another party.)

(xiv) Land offered for agreement with respect to which the productivity is substantially below that of the average land on the farm: Provided, That the producer shall be given an opportunity to designate other land which more nearly reflects the productivity of the average land on the farm.

(c) The designated acreage shall be devoted to the use specified in the agreement. If the farm is approved for an increase in the annual adjustment payment rate per acre under § 751.115(b), the producer shall agree to carry out such additional practices as are specified in Form ASCS-423-1. The practices shall be established and maintained for the duration of the agreement: Provided, That with the approval of the county committee the designated acreage may be devoted to access roads, fire lanes, firebreaks, or other fire prevention measures for the protection of the designated acreage, adjoining land, or the farm buildings, or any other use approved by the Deputy Administrator if such uses are maintained at no expense to the Government in a manner to prevent erosion: Provided, further, That the destruction of the vegetative cover is authorized (1) during the last 6 months of the agreement period for the purpose of planting a crop which matures for harvest in a later year, (2) during the last year of the agreement period for carrying out summer fallow operations or planting of small fruit or bush fruit, or (3) during the last 3 years of the agreement period for the planting of orchard and vineyard crops.

(d) During the period of the agreement, no crop shall be harvested from the designated acreage and such acreage shall not be grazed unless the Secretary, after certification by the Governor of the State in which such acreage is situated of the need for grazing or harvesting of such acreage, determines that it is necessary to permit grazing or harvesting in order to alleviate damage, hardship, or suffering caused by severe drought, flood,

or other natural disaster, and consents to such grazing or harvesting subject to appropriate reduction in the rate of adjustment payment. The restriction against harvesting shall not apply to a crop which matured and normally would be harvested in the year preceding the first year of the agreement period unless harvesting of the crop in such year would have been in violation of a Federal agricultural program. The thinning of trees, ornamentals, or greens in accordance with sound forestry management and the sale of such products shall not be considered as harvesting a crop for the purposes of this paragraph.

(e) The conservation practices eligible to be carried out on the designated acreage are as follows:

CA-1. Establishment of perennial grasses or legumes. (Does not include annual or biennial varieties.)

CA-2. Establishment of short-term cover. (Annuals and biennial varieties are eligible, but only where they will furnish adequate protective cover for the duration of the agreement.)

CA-3. Improvement of perennial cover. (An inadequate stand of acceptable perennial grasses or legumes are on the land and improvement will serve purpose of CA-1.)

CA-4. Establishment of stand of trees. (Same as ACP practice A-7.)

CA-5. Establishment of food plots or habitat for wildlife. (Annual, biennial, or perennial varieties. Shrubs or other woody varieties for habitat.)

CA-6. Development or restoration of shallow water areas for wildlife. (Same as ACP practice G-2.)

CA-7. Construction of dams or ponds for wildlife. (Same as ACP practice G-3.)

CA-8. Other wildlife practices. (Same as ACP practice G-4.)

CA-9. Preservation of open spaces. (To be developed as needed to achieve program objectives.)

CA-10. Preservation of natural beauty. (To be developed as needed to achieve program objectives.)

CA-11. Prevention of air pollution. (To be developed as needed to achieve program objectives.)

CA-12. Prevention of water pollution. (To be developed as needed to achieve program objectives.)

CA-13. Establishment of picnic and sports recreation area. (For developing uses such as trap shooting, ball fields, tennis courts, and golf courses.)

CA-14. Establishment of camping and nature recreation areas. (For developing uses such as camp sites, parking areas, nature trails, hiking trails, and riding trails.)

CA-15. Establishment of summer water sports recreation areas. (For constructing reservoirs for uses such as swimming, boating, water skiing, wading, and beaches.)

CA-16. Establishment of winter sports recreation areas. (For uses such as ski trails, toboggan runways, and ice skating.)

CA-17. Management of established acceptable cover. (This practice involves maintenance of a cover which will provide adequate protection from wind and water erosion for the agreement period and for which no costsharing is made.

(f) Cost-sharing for practices CA-13, CA-14, CA-15, and CA-16 shall be limited to earthmoving and establishment of vegetative cover, including trees and shrubs, except that for golf courses it shall be limited to vegetative cover on fairways. Any facilities, such as picnic tables, diving boards, bathhouses, and boats, which are necessary for the successful functioning of the applicable enterprise, shall be provided by the producer without cost-sharing.

(g) The designated acreage shall not be devoted to such nonagricultural uses as industrial or residential developments, mining operations, gravel pits, stone quarries, and road rights-of-way. A list of nonagricultural uses which are authorized on the designated acreage shall be available at the county ASCS office.

(h) Information will be available in the county ASCS office as to (i) the availability of the conservation uses and practices in a particular county, and (ii) the specifications for the uses and practices, including any supplementation or modification of such uses and practices. [31 F.R. 3483, Mar. 8, 1966; 31 F.R. 4343, Mar. 12, 1966, as amended by Amdt. 2, 31 F.R. 9545, July 14, 1966; Amdt. 4, 31 F.R. 14254, Nov. 4, 1966; Amdt. 5, 32 F.R. 5417, Mar. 31, 1967]

§ 751.119 Control of erosion, insects, weeds, and rodents.

The producer shall carry out such measures as are needed for the control of erosion, insects, weeds, and rodents on the designated acreage. If the county committee determines that the measures carried out by the farmer are not adequate, it shall prescribe and require the application of such other or additional measures as are needed.

§ 751.120 Determination of compliance.

(a) Determination of the acreage devoted to crops and the acreage designated shall be made in accordance with Part 718 of this chapter, as amended.

(b) A representative of the county committee or of the State committee or any authorized representative of the Secretary shall have the right at any

reasonable time to enter a farm, concerning which representations have been made on any forms filed under the program, in order to measure the acreage planted to crops and the acreage which the operator designated as being devoted to approved practices and uses on the farm, to examine any records pertaining thereto, and otherwise to determine the accuracy of a producer's representation and the performance of his obligations under the program.

§ 751.121 Permitted acreage on cropland adjustment program base crops diverted under the program.

The number of acres permitted to be devoted to feed grains or any allotment crop with respect to which an acreage is designated as diverted under the agreement shall be zero, except as otherwise authorized in § 751.109(a)(1). The number of acres permitted to be devoted to nonallotment crops shall not exceed the acreage determined by subtracting the number of acres of nonallotment base crops designated as diverted under the agreement from the nonallotment base. Notwithstanding any other provision of this section, any acreage which could be devoted to allotment crops and feed grains under the agreement and which is not devoted to such crops may be devoted to nonallotment crops. [31 F.R. 3483, Mar. 8, 1966, as amended by Amdt. 4, 31 F.R. 14254, Nov. 4, 1966]

§ 751.122 Compliance with the feed grain base and acreage allotments.

(a) The feed grain base and the acreage allotments for the farm with respect to which an acreage of such crops is not designated as diverted under the agreement shall not be exceeded.

(b) The producer shall not exceed the feed grain base and the acreage allotments with respect to any other farm in which he has an interest. The producer shall not be considered as exceeding the feed grain base or acreage allotments on any other farm if he satisfies the county committee that he did not have control of the managerial operations of the noncomplying farm, that he has made a reasonable effort to encourage compliance with the requirements of this paragraph, and that it was through no fault of his own that such farm was not in compliance. In applying the provisions of this paragraph, a landowner or landlord cannot escape responsibility for any allotment or feed grain base being exceeded

by leasing for cash or other consideration all or part of a farm. For purposes of this paragraph, the individuals or entity in each category listed below shall be considered as one producer and fully responsible for the actions of any other individual or entity in that category: (1) A partnership and any member of the partnership; (2) a corporation and the majority stockholder of such corporation; (3) an estate and an heir of the estate with over a 50 percent interest in the estate; (4) a trust and a beneficiary of the trust with over a 50 percent interest in the trust; (5) minor children and the parent, guardian, or other individual legally responsible for the minor; and (6) husband and wife, except that the husband and wife may be considered as a separate producer on any farm if the spouse receiving program benefits does not share to any degree in the crops or proceeds thereof from the noncomplying farm, managerial control of the noncomplying farm by either husband or wife is in no way shared by the spouse, and no changes have been made in the operations or managerial control of the noncomplying farm which would tend to defeat the purposes of this paragraph (b). Any executor, trust officer, or farm manager responsible for the management of a farm shall be considered as a producer on the farm when he receives a percentage of the farm income exceeding 10 percent of the crops or proceeds for such management services.

§ 751.123 Provisions relating to tenants and sharecroppers.

(a) No agreement shall be entered into with a producer if it shall appear(1) That the landlord or operator has not afforded his tenants and sharecroppers an opportunity to participate under the agreement in proportion to the number of acres in the respective producer units of such commodity farmed by such tenants or sharecroppers; or

(2) That the landlord or operator has, in anticipation or because of participating in the cropland adjustment program, reduced the number of tenants and sharecroppers on the farm, or the shares of the allotment or base made available to tenants or sharecroppers (if a tenant or sharecropper leaves the farm voluntarily, the failure to replace such tenant or sharecropper shall not be considered as a reduction in anticipation of participating in the program); or

(3) That there exists between the operator or landlord and any tenant or sharecropper any lease, contract, agreement, or understanding, unfairly exacted or required by the operator or landlord and entered into in contemplation of the signing of any agreement hereunder, the effect or purpose of which is:

(i) To cause the tenant or sharecropper to pay over to the landlord or operator any payment to be paid to him under the agreement; or

(ii) To change the status of any tenant or sharecropper in order to deprive him of any part of the payment or any other right or privilege of his under the agreement to which his actual status with respect to the land prior thereto would have entitled him; or

(iii) To reduce the size of the tenant's or sharecropper's producer unit in contemplation of the signing of the agreement; or

(iv) To increase the rent to be paid by the tenant or decrease the share of the crop or its proceeds to be received by the sharecropper.

(4) That the operator or landlord has adopted any device or scheme of any sort whatever for the purpose of depriving any tenant or any sharecropper of his payment or any other right under the agreement.

(b) The agreement shall be deemed to be in noncompliance if any of the conditions set forth in paragraph (a) of this section occurs after the signing of the agreement.

(c) In addition, no agreement shall be approved if the State or county committee determines for any reason that disapproval is necessary to protect the interests of tenants or sharecroppers.

(d) The provisions of paragraph (a) (2) of this section shall not apply to a cash tenant, standing-rent tenant, or a fixed-rate tenant unless such tenant was living on the farm in the year immediately preceding the first year of the agreement period or received 50 percent or more of his income in such year from farming.

(e) Not withstanding any other provision of this section, a landlord or operator who in the past had tenants or sharecroppers on his land for purposes of producing base crops designated under the agreement may pay these individuals on a wage basis and this action will not be considered as reducing the number of tenants or sharecroppers provided such

individuals are classified as employees under the Fair Labor Standards Act.

[31 F.R. 3483, Mar. 8, 1966, as amended by Amdt. 2, 31 F.R. 9546, July 14, 1966; Amdt. 4,31 F.R. 14254, Nov. 4, 1966; Amdt. 7, 32 F.R. 6431, Apr. 26, 1967]

§ 751.124

Refunds or forfeitures for noncompliance.

(a) Except as otherwise provided in paragraph (c) of this section, no adjustment payment (including the adjustment payment authorized under Form ASCS-423-1) shall be made to any producer for any year with respect to any farm on which it is determined that for such year:

(1) There has been a failure to comply with the permitted acreage of cropland adjustment program bases diverted under the program as provided in § 751.121;

(2) There has been a failure to maintain the conserving base as provided in § 751.117;

(3) There has been a failure to comply with the feed grain base and acreage allotments as provided in § 751.122: Provided, That if the failure to comply is determined under paragraph (b) of § 751.122, the refund or forfeiture shall not be applicable with respect to adjustment payments paid or payable to producers other than those covered by the provisions of such paragraph;

(4) There has been a failure to comply with the prohibition as to harvesting a crop from or grazing the designated acreage as provided in § 751.118(d);

(5) There has been a failure to devote the designated acreage to the use specified in the agreement or to establish and maintain the authorized practice on the designated acreage as provided in § 751.118(c);

(6) The designated acreage has been devoted to an unauthorized use as set forth in § 751.118(g);

(7) There has been a failure to control erosion, insects, weeds, and rodents on the designated acreage as provided in § 751.119; or

(8) There has been a failure to comply with the provisions relating to tenants and sharecroppers as provided in § 751.123.

(b) Except as provided in paragraph (c) of this section, if for any year noncompliance is determined under subparagraph (4), (5), (6), or (7) of paragraph (a) of this section, all cost-share payments paid or payable under the

agreement through the year for which noncompliance is determined shall be forfeited or refunded: Provided, That cost-share payments paid or payable under Form ASCS-423-1 shall be forfeited or refunded only for noncompliance determined under subparagraph (5) of paragraph (a).

(c) The regulations governing the making of payments when there has been a failure to comply fully with the program, Part 791 of this Chapter, shall be applicable to the cropland adjustment program.

(d) The agreement shall be terminated in any case in which the provisions of this section have required a refund or forfeiture of the entire annual adjustment payment under the agreement for the year and it is determined that the circumstances of the noncompliance were of such nature as to warrant termination. In case of such termination, the producers must refund all adjustment payments and cost-share payments made under the agreement, plus interest as provided under § 751.134.

"(e) In addition to any forfeiture or refund otherwise prescribed in this section, no adjustment payment or costshare payment shall be made under Form ASCS-423-1 for any year in which it is determined that there has been noncompliance with the terms of Form ASCS-423-1.

[31 F.R. 3483, Mar. 8, 1966, as amended by Amdt. 11, 33 F.R. 7496, May 21, 1968; 33 F.R. 9529, June 29, 1968]

The regulations governing nondiscrimination in federally assisted programs of the Department of Agriculture, 7 CFR Part 15, as amended, shall be applicable to the cropland adjustment program.

§ 751.126 Practices defeating purposes of program.

If the county committee finds that any producer has adopted or participated in any practice which tends to defeat the purposes of the program, it shall withhold or require to be refunded, all, or such part as the Deputy Administrator may determine, of the annual adjustment or cost-share payments which otherwise would be due him under the program. It shall be considered a practice defeating the purposes of the program if the producers do not make available for public use a recreation resource development