§ 1410.42 - Annual rental payments.

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Subject to the availability of funds, annual rental payments shall be made in such amount and in accordance with such time schedule as may be agreed upon and specified in the CRP contract.

Annual rental payments per acre include a payment based on a weighted average soil rental rate, marginal pastureland rental rate, or grassland rate, as appropriate, and an incentive payment as a portion of the annual payment for certain practices, as determined by the Deputy Administrator. In addition, a national maximum annual rental payment rate may also be established by the Deputy Administrator for certain categories of CRP offers and contracts.

The annual rental payment will be divided among the participants on a single contract as agreed to in such contract.

The maximum amount of rental payments that a person or legal entity may receive, directly or indirectly, under CRP for any fiscal year must not exceed $50,000. The regulations in part 1400 of this chapter will be applicable for determining whether the limit has been exceeded.

In the case of a contract succession, annual rental payments will be divided between the predecessor and the successor participants as agreed to among the participants and approved by CCC. If there is no agreement among the participants, annual rental payments will be divided in such manner deemed appropriate by the Deputy Administrator and such distribution may be prorated based on the actual days of ownership of the property by each party.

The Deputy Administrator will prepare a schedule for each county that shows the maximum soil rental rate CCC may pay which may be supplemented to reflect special contract requirements. As determined by the Deputy Administrator, such schedule will be calculated for cropland based on the relative productivity of soils within the county using NRCS data and local FSA average cash rental estimates. For marginal pastureland, rental rates will be based on estimates of the prevailing rental values of marginal pastureland in riparian areas. Grassland rental rates will be based on not more than 75 percent of the estimated grazing value of the land. The schedule will be available in the local FSA office and, as determined by the Deputy Administrator, will indicate, when appropriate, that:

Offers of contracts by producers who request rental payments greater than the schedule for their soil(s) will be rejected;

Offers of contracts submitted under continuous signup authorized at § 1410.30 may be accepted without further evaluation when the requested rental rate is less than or equal to the calculated weighted soil rental rate, based on the three predominant soils listed; and

Otherwise qualifying offers shall be ranked competitively based on factors established under § 1410.31 of this part in order to provide the most cost-effective environmental benefits, as determined by the Deputy Administrator.

Additional financial incentives may be provided to producers who offer contracts expected to provide especially high environmental benefits, as determined by the Deputy Administrator.

CCC may make tree thinning incentive payments to owners and operators of enrolled land in an amount sufficient to encourage proper tree thinning and other practices to improve the condition of resources, promote forest management, or enhance wildlife habitat on the land, as determined by the Deputy Administrator. Incentive payments for tree thinning and other tree stand practices will:

Not exceed 150 percent of the total cost of the practice, as determined by the Deputy Administrator; and

Only be available for practices outlined in the tree planting plan under the approved CRP conservation plan.