(a) The owner is responsible for compliance with the agreement and for any refunds or deductions for failure to comply fully with the terms of the agreement while he is a party to the agreement.

(b) Each other person signing the agreement is jointly and severally responsible with the owner for compliance with the agreement and for any refunds or deductions for failure to comply fully with the terms of the agreement while he is a party to the agreement.

§ 751.113 Agreement period.

(a) The agreement period shall be not less than 5 nor more than 10 years. Where odd and even year conserving bases are established, the period shall be for an even number of years and for not less than 6 years.

(b) The agreement shall become effective for the first year of the agreeement on January 1 or the date of approval, whichever is later, and shall end on December 31 of such year. Each subsequent year of the agreement period shall be on a calendar year basis with the agreement period ending on December 31 of the last year. A practice started before the agreement is approved but after the request has been filed shall be considered as having been started during the agreement period.

(c) All of the land placed under agreement in any one year shall have an agreement period for the same number of years.

(d) An agreement period specified in the agreement which is less than the maximum agreement period authorized under this section may, prior to December 31, 1969, be increased up to such maximum period if the county committee approves such longer period as being in the interests of the program. withstanding any other provision of this paragraph, the agreement period for 1966 agreements under which wheat, rice, or barley is designated shall not be extended.

Not

[31 F.R. 3483, Mar. 8, 1966, as amended by Amdt. 4, 31 F.R. 14254, Nov. 4, 1966]

A farm is eligible for participation in the program if the farm was operated during the year prceding the first year of the agreement period i.e., crops were planted for harvest or were harvested or there was grazing on the farm during the normal grazing season. The farm will be considered to have been operated during such year if (a) acreage was diverted under the conservation reserve, cropland conversion, upland cotton, feed grain, or wheat programs and the county committee determines that no crops were planted for harvest or were harvested because of participation in such a program, (b) a conservation reserve contract with respect to the farm expired on December 31 of the second year preceding the first year of the agreement period and the county committee determines that no crops were planted for harvest or harvested in the year preceding the first year of the agreement period because of anticipated participation in a land use adjustment program for such year, or (c) the county committee determines that crops were not planted for harvest or harvested on the farm because of flood, drought, or other natural disaster.

§ 751.115 Annual adjustment payments.

(a) Producers on the farm shall be eligible for an annual adjustment payment on acreage designated as diverted from the production of crops under the program except as provided in § 751.109 (a) (5). Annual adjustment per unit payment rates determined by the Administrator to be fair and reasonable, taking into account the diversion from the cropland adjustment program bases and other obligations undertaken by the producers, shall be furnished to each county. Annual adjustment per acre payment rates for each county shall be determined upon the basis of such unit rates in accordance with instructions issued by the Administrator.

(b) The farm annual adjustment per acre payment rate for the cropland adjustment program bases shall be established by the county committee by multiplying the farm yield for the commodity by the county annual adjustment per unit payment rate determined under paragraph (a) of this section. The farm annual adjustment per acre payment rate may be increased, for farms located in areas designated by the State committee, by an amount determined by the

county committee to be appropriate in relation to the benefit to the general public of the use of the designated acreage if the producer agrees on a form prescribed by the Administrator (Form ASCS-423-1) to permit, without other compensation, access to such acreage by the general public, during the agreement period, for hunting, trapping, fishing, and hiking, subject to applicable State and Federal regulations. Producers who sign Form ASCS-423-1 shall post a CAP Public Access sign where it will be readily visible to the general public.

(c) It has been determined by the Administrator that the farm annual adjustment per acre payment rate computed as provided in this section will not exceed 40 per centum of the estimated value of the crops or types of crops which might otherwise be grown, on the basis of prices in effect at the time the agreement is entered into.

(d) The adjustment payment shall be divided among landowners, tenants, and sharecroppers in the manner agreed upon by them as representing their respective contribution to the crop diversion required by the agreement except that the county committee shall refuse to approve any agreement with respect to which it considers the proposed division of the adjustment payment is not fair and equitable. The applicable adjustment payment and the division of the adjustment payment shall be specified in the agreement.

(e) Each producer signing the agreement may choose to receive his share of the adjustment payment (1) in equal annual payments during the years of the agreement perior, or (2) when the county committee determines that it will best serve the interests of the program, in such installments as may be agreed to by the producers on the farm and the county committee: Provided, That for each year any annual adjustment payment is made in advance of performance, the annual adjustment payment shall be reduced by 5 per centum. Notwithstanding any other provisions of this paragraph, beginning with 1967 agreements, the adjustment payments shall be made in annual payments after compliance is determined but not before October 1 during each of the years of the agreement period.

(f) With respect to agreements approved after the effective date of this regulation, where an adjustment payment has been established on the basis of

99-113-69- -2

a diversion from irrigated crops and the producer (1) uses any part of the irrigation water customarily used on such irrigated crops for crops other than conserving crops or fruits or vegetables on the farm or on another farm, or (2) sells or leases such water to another producer, the diversion will be deemed to have been made from nonirrigated crops and the adjustment payment for such year shall be adjusted to reflect a diversion from nonirrigated crops.

[31 F.R. 3483, Mar. 8, 1966, as amended by Amdt. 2, 31 F.R. 9545, July 14, 1966; Amdt. 4,31 F.R. 14254, Nov. 4, 1966; Amdt. 6, 32 FR. 5767, Apr. 11, 1967; Amdt. 8, 32 F.R. 8513, June 14, 1967; Amdt. 11, 33 F.R. 7496, May 21, 1968]

§ 751.116 Cost-shares for authorized practices.

(a) Subject to conditions and limitations in this subpart, cost-sharing may be authorized for eligible practices needed on the designated acreage during the period of the agreement. Such authorization shall be made on a form prescribed for that purpose and shall be a part of the agreement. Payment of the cost-shares shall be made only upon application submitted on a form prescribed by the Administrator.

(b) The rates of cost-sharing for a county shall not exceed the rates of costsharing for comparable practices under the agricultural conservation program. Where practices less costly than those under the agricultural conservation program can be developed that will satisfactorily meet required uses under the cropland adjustment program, rates shall be established consistent with the lower cost of such practices.

(c) The rates of cost-sharing shall be revised when necessary during the agreement period to reflect substantial changes in current costs in carrying out the practices from those used in establishing the rates of cost-sharing in effect at the time the agreement was approved. The revised rates shall be effective for practice approvals issued after the revisions.

(d) Practice specifications and requirements shall be the same as the practice specifications and requirements for comparable practices in the agricultural conservation program, except for such modifications as are needed to effectuate the purposes of the cropland adjustment program. Practice specifications should reflect the use of the min

fmum application of seed and minerals and use of inexpensive varieties of seed which will produce a cover suitable for protection of the land from erosion for the agreement period. Practices shall be carried out under specifications and requirements which are applicable at the time the notice of practice approval is issued.

(e) The Forest Service and the Soil Conservation Service shall have the same technical responsibilities for cropland adjustment program practices they have for the same or similar agricultural conservation program practices and these responsibilities shall be exercised in the same way.

(1) The establishment or installation of a practice shall be deemed to include the replacement, enlargement or restoration of practices if all of the following conditions exist: (1) Replacement, enlargement, or restoration of the practice is needed to meet the conservation problem; (2) the failure of the original practice was not due to the lack of proper maintenance; and (3) funds are avail

able.

(g) The sharing of costs will be subject to the condition that the practices be maintained for the period of the agreement for the purpose for which cost-sharing was authorized: Provided, That if the designated acreage is to be devoted to trees, recreation, water impoundments, or long-term wildlife practices, the practice shall be maintained for a period ending 10 years after the beginning of the agreement period.

(h) In addition to the provisions contained in the subpart, cost-sharing under the cropland adjustment program shall also be subject to the following regulations of the agricultural conservation program in effect at the time the notice of practice approval is issued (7 CFR 701.1-701.97, as amended): Section 701.7 Adaptation of practices;

701.8 Practice specifications; § 701.9 Use of liming materials and commercial fertilizers for vegetative cover; § 701.11 Rates of cost-sharing; § 701.12 Items of cost on which rates of cost-sharing may be based; § 701.16 Method and extent of approval; § 701.18 Repair, upkeep, and maintenance of practices; § 701.23 Practices involving the establishment or improvement of vegetative cover; § 701.24 Failure to meet minimum requirements; $701.25 Conservation materials and services; § 701.26 Practices carried out with aid from ineligible persons; § 701.27 Di

vision of Federal cost-shares; § 701.30 Persons eligible to file application for payment of Federal cost-shares; & 701.33 Compliance with regulatory measures; and 701.38 Misuse of purchase orders. For purposes of applying such agricultural conservation program regulations to the cropland adjustment program, the term "program" shall mean the "cropland adjustment program.”

(1) Notwithstanding any other provision of this section, the total amount of cost-shares for an agreement shall not exceed an amount determined by multiplying the number of acres designated under the agreement by a per acre rate established by the State committee in accordance with instructions from the Deputy Administrator. This limitation shall not apply to reestablished measures carried out under (f) of this section or to practices specified on Form ASCS423-1, except where a water retention or storage structure practice is involved. [31 F.R. 3483, Mar. 8, 1966, as amended by Amdt. 2, 31 F.R. 9545, July 14, 1966]

§ 751.117 Farm conserving base.

The regulations governing the establishment and maintenance of the farm conserving base, Part 792 of this chapter, shall be applicable to the cropland adjustment program.

(a) Cropland diverted from the production of crops under the program shall be specifically identified and designated for the period of the agreement.

(b) (1) Except as otherwise provided in subparagraph (2) of this paragraph, land eligible for designation must be cropland which was:

(i) Intensively cultivated during at least one of the 4 years immediately preceding the first year of the agreement period;

(ii) Devoted to a conservation use, other than a water storage facility or trees, under the conservation reserve program, cropland conversion program, great plains conservation program, or 1963 land use adjustment agreement, which terminated or expired with respect to such land not more than 4 years immediately preceding the first year of the agreement period;

(iii) Devoted to a hay crop (for hay, green chop, silage or pasture) during all 4 years immdiately preceding the first year of the agreement period in a

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

imum application of seed and minerals and use of inexpensive varieties of seed which will produce a cover suitable for protection of the land from erosion for the agreement period. Practices shall be carried out under specifications and requirements which are applicable at the time the notice of practice approval is issued.

(e) The Forest Service and the Soil Conservation Service shall have the same technical responsibilities for cropland adjustment program practices they have for the same or similar agricultural conservation program practices and these responsibilities shall be exercised in the same way.

(f) The establishment or installation of a practice shall be deemed to include the replacement, enlargement or restoration of practices if all of the following conditions exist: (1) Replacement, enlargement, or restoration of the practice is needed to meet the conservation problem; (2) the failure of the original practice was not due to the lack of proper maintenance; and (3) funds are avail

able.

(g) The sharing of costs will be subject to the condition that the practices be maintained for the period of the agreement for the purpose for which cost-sharing was authorized: Provided, That if the designated acreage is to be devoted to trees, recreation, water impoundments, or long-term wildlife practices, the practice shall be maintained for a period ending 10 years after the beginning of the agreement period.

(h) In addition to the provisions contained in the subpart, cost-sharing under the cropland adjustment program shall also be subject to the following regulations of the agricultural conservation program in effect at the time the notice of practice approval is issued (7 CFR 701.1-701.97, as amended): Section 701.7 Adaptation of practices; § 701.8 Practice specifications; § 701.9 Use of liming materials and commercial fertilizers for vegetative cover; § 701.11 Rates of cost-sharing; § 701.12 Items of cost on which rates of cost-sharing may be based; § 701.16 Method and extent of approval; § 701.18 Repair, upkeep, and maintenance of practices; § 701.23 Practices involving the establishment or improvement of vegetative cover; § 701.24 Failure to meet minimum requirements; § 701.25 Conservation materials and services; § 701.26 Practices carried out with aid from ineligible persons; § 701.27 Di

vision of Federal cost-shares; § 701.30 Persons eligible to file application for payment of Federal cost-shares; § 701.33 Compliance with regulatory measures; and 701.38 Misuse of purchase orders. For purposes of applying such agricultural conservation program regulations to the cropland adjustment program, the term "program" shall mean the "cropland adjustment program.”

(i) Notwithstanding any other provision of this section, the total amount of cost-shares for an agreement shall not exceed an amount determined by multiplying the number of acres designated under the agreement by a per acre rate established by the State committee in accordance with instructions from the Deputy Administrator. This limitation shall not apply to reestablished measures carried out under (f) of this section or to practices specified on Form ASCS423-1, except where a water retention or storage structure practice is involved. [31 F.R. 3483, Mar. 8, 1966, as amended by Amdt. 2, 31 F.R. 9545, July 14, 1966]

§ 751.117 Farm conserving base.

The regulations governing the establishment and maintenance of the farm conserving base, Part 792 of this chapter, shall be applicable to the cropland adjustment program.

(a) Cropland diverted from the production of crops under the program shall be specifically identified and designated for the period of the agreement.

(b) (1) Except as otherwise provided in subparagraph (2) of this paragraph, land eligible for designation must be cropland which was:

(i) Intensively cultivated during at least one of the 4 years immediately preceding the first year of the agreement period;

(ii) Devoted to a conservation use, other than a water storage facility or trees, under the conservation reserve program, cropland conversion program, great plains conservation program, or 1963 land use adjustment agreement, which terminated or expired with respect to such land not more than 4 years immediately preceding the first year of the agreement period;

(iii) Devoted to a hay crop (for hay, green chop, silage or pasture) during all 4 years immdiately preceding the first year of the agreement period in a