16 USC 3835 - Contracts

U.S Code last checked for updates: Nov 22, 2024

§ 3835.

Contracts

(a)

Ownership or operation requirements

(1)

In general

Except as provided in paragraph (2), no contract shall be entered into under this subpart concerning land with respect to which the ownership has changed in the 1-year period preceding the first year of the contract 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 before January 1, 1985;

(C)

the Secretary determines that the land was acquired under circumstances that give adequate assurance that the land was not acquired for the purpose of placing the land in the program established by this subpart; or

(D)

the ownership change occurred due to foreclosure on the land and the owner of the land immediately before the foreclosure exercises a right of redemption from the mortgage holder in accordance with State law.

(2)

Exceptions

Paragraph (1) shall not—

(A)

prohibit the continuation of an agreement by a new owner after an agreement has been entered into under this subpart; or

(B)

require a person to own the land as a condition of eligibility for entering into the contract if the person—

(i)

has operated the land to be covered by a contract under this section for at least 1 year preceding the date of the contract or since January 1, 1985, whichever is later; and

(ii)

controls the land for the contract period.

(b)

Sales or transfers

If, during the term of a contract entered into under this subpart, an owner or operator of land subject to the contract sells or otherwise transfers the ownership or right of occupancy of the land, the new owner or operator of the land may—

(1)

continue the contract under the same terms or conditions;

(2)

enter into a new contract in accordance with this subpart; or

(3)

elect not to participate in the program established by this subpart.

(c)

Modifications

(1)

In general

The Secretary may modify a contract entered into with an owner or operator under this subpart if—

(A)

the owner or operator agrees to the modification; and

(B)

the Secretary determines that the modification is desirable—

(i)

to carry out this subpart;

(ii)

to facilitate the practical administration of this subpart;

(iii)

to facilitate a transition of land subject to the contract from a retired or retiring owner or operator to a beginning farmer or rancher or socially disadvantaged farmer or rancher for the purpose of returning some or all of the land into production using sustainable grazing or crop production methods; or

(iv)

to achieve such other goals as the Secretary determines are appropriate, consistent with this subpart.

(2)

Production of agricultural commodities

(d)

Termination

(1)

In general

The Secretary may terminate a contract entered into with an owner or operator under this subpart if—

(A)

the owner or operator agrees to the termination; and

(B)

the Secretary determines that the termination would be in the public interest.

(2)

Notice to congressional committees

(e)

Early termination by owner or operator

(1)

Early termination

(A)

In general

(B)

Liability for contract violation

(C)

Notice to Secretary

(2)

Certain land excepted

The following land shall not be subject to an early termination of contract under this subsection:

(A)

Filterstrips, waterways, strips adjacent to riparian areas, windbreaks, and shelterbelts.

(B)

Land with an erodibility index of more than 15.

(C)

Land devoted to hardwood trees.

(D)

Wildlife habitat, duck nesting habitat, pollinator habitat, upland bird habitat buffer, wildlife food plots, State acres for wildlife enhancement, shallow water areas for wildlife, and rare and declining habitat.

(E)

Farmable wetland and restored wetland.

(F)

Land that contains diversions, erosion control structures, flood control structures, contour grass strips, living snow fences, salinity reducing vegetation, cross wind trap strips, and sediment retention structures.

(G)

Land located within a federally designated wellhead protection area.

(H)

Land that is covered by an easement under the conservation reserve program.

(I)

Land located within an average width, according to the applicable Natural Resources Conservation Service field office technical guide, of a perennial stream or permanent water body.

(J)

Land enrolled under the conservation reserve enhancement program.

(3)

Effective date

(4)

Prorated rental payment

(5)

Renewed enrollment

(6)

Conservation requirements

(f)

Transition option for certain farmers or ranchers

(1)

Transition to covered farmer or rancher

In the case of a contract modification approved in order to facilitate the transfer of land subject to a contract from a contract holder to a beginning farmer or rancher, a veteran farmer or rancher (as defined in section 2279(e) 1

 See References in Text note below.

of title 7), or a socially disadvantaged farmer or rancher (in this subsection referred to as a “covered farmer or rancher”), the Secretary shall—

beginning on the date that is 2 years before the date of termination of the contract—

(i)

allow the covered farmer or rancher, in conjunction with the contract holder, to make conservation and land improvements, including preparing to plant an agricultural crop; and

(ii)

allow the covered farmer or rancher to begin the certification process under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.);

(B)

beginning on the date of termination of the contract, require the contract holder to sell or lease (under a long-term lease or a lease with an option to purchase, including a lease with a term of less than 5 years and an option to purchase) to the covered farmer or rancher the land subject to the contract for production purposes;

(C)

require the covered farmer or rancher to develop and implement a conservation plan;

(D)

provide to the covered farmer or rancher an opportunity to enroll in the conservation stewardship program or the environmental quality incentives program by not later than the date on which the covered farmer or rancher takes possession of the land through ownership or lease;

(E)

give priority to the enrollment of the land covered by the contract in—

(i)

the environmental quality incentives program established under subpart A of part IV;

(ii)

the conservation stewardship program established under subpart B of part IV; or

(iii)

the agricultural conservation easement program established under subchapter VII; and

(F)

continue to make annual payments to the contract holder for not more than an additional 2 years after the date of termination of the contract, if the contract holder is not a family member (as defined in section 1308 of title 7) of the covered farmer or rancher.

(2)

Reenrollment

To the extent that the maximum number of acres permitted to be enrolled under the conservation reserve program has not been met, the Secretary shall provide a covered farmer or rancher with the option to reenroll any applicable partial field conservation practice that—

(A)

(i)

is carried out on land described in paragraph (4) or (5) of section 3831(b) of this title; and

(ii)

is eligible for continuous enrollment under section 3831(d)(6) of this title; and

(B)

is part of an approved conservation plan.

(g)

End of contract considerations

The Secretary shall not consider an owner or operator to be in violation of a term or condition of the conservation reserve contract if—

(1)

during the year prior to expiration of the contract, the owner or operator—

(A)

(i)

enters into a contract under the environmental quality incentives program established under subpart A of part IV; and

(ii)

begins the establishment of a practice under that contract; or

(B)

(i)

enters into a contract under the conservation stewardship program established under subpart B of part IV; and

(ii)

begins the establishment of a practice under that contract; or

(2)

during the 3 years prior to the expiration of the contract, the owner or operator begins the certification process under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).

(h)

Land enrolled in agricultural conservation easement program

(Pub. L. 99–198, title XII, § 1235, as added Pub. L. 107–171, title II, § 2101(a), May 13, 2002, 116 Stat. 249; amended Pub. L. 110–234, title II, § 2111, May 22, 2008, 122 Stat. 1035; Pub. L. 110–246, § 4(a), title II, § 2111, June 18, 2008, 122 Stat. 1664, 1763; Pub. L. 113–79, title II, § 2006, Feb. 7, 2014, 128 Stat. 719; Pub. L. 115–334, title II, § 2208, Dec. 20, 2018, 132 Stat. 4549.)

cite as: 16 USC 3835