Farm Service Agency, USDA § 718.9

§ 714.45 7 CFR Ch. VII (1–1–21 Edition)

sent initially to the State committee, 718.4 Authority for farm entry and pro- it shall be referred to the appropriate viding information. county committee for recommendation 718.5 Rule of fractions. as provided in § 714.43 prior to action 718.6 Controlled substance. 718.7 Furnishing maps. being taken by the State committee. 718.8 Administrative county and servicing Any necessary investigation shall be FSA county office. made. The State committee shall rec- 718.9 Signature requirements. ommend approval or disapproval of the 718.10 Time limitations. claim, attaching a statement giving 718.11 Disqualification due to federal crop the reasons for their action, which insurance fraud. shall be signed by a representative of the State committee. After recom- Subpart B—Determination of Acreage and mending approval or disapproval, the Compliance claim shall be promptly sent to the 718.101 Measurements. Deputy Administrator. 718.102 Acreage reports. 718.103 Prevented planted and failed acre- § 714.45 Approval by Deputy Adminis- age. trator. 718.104 Late-filed and revised acreage re- The Deputy Administrator shall reports. 718.105 Tolerances and adjustments. view each claim forwarded to him by 718.106 Non-compliance and false acreage the State committee to determine reports. whether, (a) the penalty was erro- 718.107 Acreages. neously, illegally, or wrongfully col- 718.108 Measuring acreage including skip lected, (b) the claimant bore the bur- row acreage den of the payment of the penalty, (c) 718.109 Deductions. the claim was timely filed, and (d) 718.110 Adjustments. under the applicable law and regula- 718.111 Notice of measured acreage. tions the claimant is entitled to a re- 718.112 Redetermination. fund. If a claim is filed initially with Subpart C—Reconstitution of Farms, the Deputy Administrator, he shall ob- Allotments, Quotas, and Base Acres tain the recommendations of the county committee and the State committee 718.201 Farm constitution. if he deems such action necessary in 718.202 Determining the land constituting a arriving at a proper determination of farm. the claim. The claimant shall be ad- 718.203 County committee action to reconstitute a farm. vised in writing of the action taken by 718.204 Reconstitution of base acres. the Deputy Administrator. If dis- 718.205 Substantive change in farming oper- approved, the claimant shall be noti- ation, and changes in related legal enti- fied with an explanation of the reasons ties. for such disapproval. 718.206 Determining farms, tracts, and base acres when reconstitution is made by di- § 714.46 Certification for payment. vision. An officer or employee of the Depart- 718.207 Determining base acres when reconstitution is made by combination. ment of Agriculture authorized to certify public vouchers for payment shall, Subpart D—Equitable Relief From for and on behalf of the Secretary of Ineligibility Agriculture, certify to the Secretary of the Treasury of the United States for 718.301 Applicability. payment all claims for refund which 718.302 Definitions and abbreviations. have been approved. 718.303 Reliance on incorrect actions or information. 718.304 Failure to fully comply. PART 718—PROVISIONS APPLICA- 718.305 Forms of relief. BLE TO MULTIPLE PROGRAMS 718.306 Finality. 718.307 Special relief approval authority for Subpart A—General Provisions State Executive Directors. AUTHORITY: 7 U.S.C. 1501–1531, 1921–2008v, Sec. 7201–7334, and 15 U.S.C. 714b. 718.1 Applicability. 718.2 Definitions. SOURCE: 61 FR 37552, July 18, 1996, unless 718.3 State committee responsibilities. otherwise noted.

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Subpart A—General Provisions § 718.2 Definitions. Except as provided in individual SOURCE: 68 FR 16172, Apr. 3, 2003, unless parts of chapters VII and XIV of this otherwise noted. title, the following terms shall be as defined herein: § 718.1 Applicability. Administrative variance (AV) means (a) This part is applicable to all pro- the amount by which the determined grams specified in chapters VII and acreage of tobacco may exceed the ef- XIV of this title that are administered fective allotment and be considered in by the Farm Service Agency (FSA) and compliance with program regulations. Allotment means an acreage for a to any other programs that adopt this commodity allocated to a farm in ac- part by reference. This part governs cordance with the Agricultural Adjust- how FSA administers marketing ment Act of 1938, as amended. quotas, allotments, base acres, and Allotment crop means any tobacco acreage reports for those programs to crop for which acreage allotments are which this part applies. The regula- established pursuant to part 723 of this tions to which this part applies are chapter. those that establish procedures for Barley means barley that follows the measuring allotments and program eli- standard planting and harvesting prac- gible acreage, for determining program tice of barley for the area in which the compliance, farm reconstitutions, ap- barley is grown. plication of finality, and equitable re- Base acres means, with respect to a lief from compliance or ineligibility. covered commodity on a farm, the (b) For all programs, except for those number of acres in effect on September administered under parts 761 through 30, 2013, as defined in the regulations in 774 of this chapter: part 1412, subpart B, of this title that (1) The provisions of this part will be were in effect on that date, subject to administered under the general super- any reallocation, adjustment, or reduc- vision of the Administrator, FSA, and tion. The term ‘‘base acres’’ includes carried out in the field by State and any generic base acres as specified in county FSA committees (State and part 1412 planted to a covered com- county committees); modity as specified in part 1412. (2) State and county committees, and Beginning farmer or rancher means a representatives and employees thereof, person or legal entity (for legal enti- do not have authority to modify or ties to be considered a beginning farm- waive any regulations in this part; er or rancher, all members must be re- (3) No provisions or delegation herein lated by blood or marriage and all to a State or county committee will members must be beginning farmers or preclude the Administrator, FSA, or a ranchers) for which both of the fol- designee, from determining any ques- lowing are true for the farmer or tion arising under the program or from rancher: reversing or modifying any determina- (1) Has not operated a farm or ranch tion made by a State or county com- for more than 10 years; and mittee; (2) Materially and substantially par- (4) The Deputy Administrator, FSA, ticipates in the operation. may authorize State and county com- CCC means the Commodity Credit mittees to waive or modify deadlines Corporation. and other requirements in cases where Combination means consolidation of lateness or failure to meet such other two or more farms or parts of farms, requirements does not adversely affect having the same operator, into one the operation of the program. farm. Common land unit means the smallest (c) The programs under parts 761 unit of land that has an identifiable through 774 will be administered ac- border located in one physical location cording to the part, or parts, applicable (county), as defined in this part, and to the specific program. all of the following in common: [72 FR 63284, Nov. 8, 2007, as amended at 80 (1) Owner; FR 41994, July 16, 2015] (2) Management;

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(3) Cover; and (1) Is currently being tilled for the (4) Where applicable, producer asso- production of a crop for harvest. Land ciation. which is seeded by drilling, broadcast Common ownership unit means a dis- or other no-till planting practices shall tinguishable parcel of land consisting be considered tilled for cropland defini- of one or more tracts of land with the tion purposes; same owners, as determined by FSA. (2) Is not currently tilled, but it can Constitution means the make-up of be established that such land has been the farm before any change is made be- tilled in a prior year and is suitable for cause of change in ownership or oper- crop production; ation. (3) Is currently devoted to a one-row Contiguous means sharing any part of or two-row shelter belt planting, or- a boundary but not overlapping. chard, or vineyard; Contiguous county means a county (4) Is in terraces that, were cropped contiguous to the reference county or in the past, even though they are no counties. longer capable of being cropped; Contiguous county office means the (5) Is in sod waterways or filter strips FSA county office that is in a contig- planted to a perennial cover; uous county. (6) Is preserved as cropland in accord- Controlled environment means, with ance with part 1410 of this title; or respect to those crops for which a con- (7) Is land that has newly been bro- trolled environment is required or ex- ken out for purposes of being planted pected to be provided, including but to a crop that the producer intends to, not limited to ornamental nursery, and is capable of, carrying through to aquaculture (including ornamental harvest, using tillage and cultural fish), and floriculture, as applicable practices that are consistent with nor- under the particular program, an envi- mal practices in the area; provided fur- ronment in which everything that can ther that, in the event that such prac- practicably be controlled with struc- tices are not utilized other than for tures, facilities, growing media (includ- reasons beyond the producer’s control, ing but not limited to water, soil, or the cropland determination shall be nutrients) by the producer, is in fact void retroactive to the time at which controlled by the producer. the land was broken out. Controlled substances means the term (b) Land classified as cropland shall set forth in 21 CFR part 1308. be removed from such classification Corn means field corn or sterile high- upon a determination by the county sugar corn that follows the standard committee that the land is: planting and harvesting practices for (1) No longer used for agricultural corn for the area in which the corn is production; grown. Popcorn, corn nuts, blue corn, (2) No longer suitable for production sweet corn, and corn varieties grown of crops; for decoration uses are not corn. (3) Subject to a restrictive easement County means the county or parish of or contract that prohibits its use for a state. For Alaska, Puerto Rico and the production of crops unless other- the Virgin Islands, a county shall be an wise authorized by the regulation of area designated by the State com- this chapter; mittee with the concurrence of the (4) No longer preserved as cropland in Deputy Administrator. accordance with the provisions of part County committee means the FSA 1410 of this title and does not meet the county committee. conditions in paragraphs (a)(1) through Crop reporting date means the latest (a)(6) of this definition; or date upon which the Administrator, (5) Converted to ponds, tanks or trees FSA will allow the farm operator, other than those trees planted in com- owner, or their agent to submit a crop pliance with a Conservation Reserve acreage report in order for the report Program contract executed pursuant to to be considered timely. part 1410 of this title, or trees that are Cropland. (a) Means land which the used in one-or two-row shelterbelt county committee determines meets plantings, or are part of an orchard or any of the following conditions: vineyard.

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Current year means the year for Entity means a corporation, joint which allotments, quotas, acreages, stock company, association, limited and bases, or other program determina- partnership, limited liability partner- tions are established for that program. ship, limited liability company, irrev- For controlled substance violations, ocable trust, estate, charitable organi- the current year is the year of the ac- zation, or other similar organization, tual conviction. including any such organization par- Deputy Administrator means Deputy ticipating in the farming operation as Administrator for Farm Programs, a partner in a general partnership, a Farm Service Agency, U.S. Department participant in a joint venture, or a par- of Agriculture or their designee. ticipant in a similar organization. Determination means a decision issued Extra Long Staple (ELS) Cotton means by a State, county or area FSA com- cotton that follows the standard plant- mittee or its employees that affects a ing and harvesting practices of the participant’s status in a program ad- area in which the cotton is grown, and ministered by FSA. meets all of the following conditions: Determined acreage means that acre- (1) American-Pima, Sea Island, age established by a representative of Sealand, all other varieties of the the Farm Service Agency by use of offi- Barbandense species of cotton and any cial acreage, digitizing or hybrid thereof, and any other variety of cotton in which 1 or more of these planimetering areas on the photograph varieties is predominant; and, or other photographic image, or com- (2) The acreage is grown in a county putations from scaled dimensions or designated as an ELS county by the ground measurements. Secretary; and, Direct and counter-cyclical program (3) The production from the acreage (DCP) cropland means land that cur- is ginned on a roller-type gin. rently meets the definition of cropland, Family member means an individual to land that was devoted to cropland at whom a person is related as spouse, lin- the time it was enrolled in a produc- eal ancestor, lineal descendant, or sib- tion flexibility contract in accordance ling, including: with part 1413 of this title and con- (1) Great grandparent; tinues to be used for agricultural pur- (2) Grandparent; poses, or land that met the definition (3) Parent; of cropland on or after April, 4, 1996, (4) Child, including a legally adopted and continues to be used for agricul- child; tural purposes and not for non- (5) Grandchild agricultural commercial or industrial (6) Great grandchildren; use. (7) Sibling of the family member in Division means the division of a farm the farming operation; and into two or more farms or parts of (8) Spouse of a person listed in para- farms. graphs (1) through (7) of this definition. Double cropping means, as determined Farm means a tract, or tracts, of land by the Deputy Administrator on a re- that are considered to be a separate op- gional basis, consecutive planting of eration under the terms of this part two specific crops that have the capa- provided further that where multiple bility to be planted and carried to ma- tracts are to be treated as one farm, turity for the intended uses, as re- the tracts must have the same operator ported by the producer, on the same and must also have the same owner ex- acreage within a 12-month period. To cept that tracts of land having dif- be considered double cropping, the ferent owners may be combined if all planting of two specific crops must be owners agree to the treatment of the in an area where such double cropping multiple tracts as one farm for these is considered normal, or could be con- purposes. sidered normal, for all growers under Farm inspection means an inspection normal growing conditions and growers by an authorized FSA representative are typically able to repeat the same using aerial or ground compliance to cycle successfully in a subsequent 12- determine the extent of producer ad- month period. herence to program requirements.

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Farm number means a number as- (1) A person whose direct or indirect signed to a farm by the county com- gross farm sales do not exceed $176,800 mittee for the purpose of identifica- (2014 program year) in each of the 2 cal- tion. endar years that precede the most im- Farmland means the sum of the DCP mediately preceding complete taxable cropland, forest, acreage planted to an year before the relevant program year eligible crop acreage as specified in that corresponds to the relevant pro- 1437.3 of this title and other land on the gram year (for example, for the 2014 farm. program year, the two years would be Field means a part of a farm which is 2011 and 2012), adjusted upwards in separated from the balance of the farm later years for any general inflation; by permanent boundaries such as and fences, permanent waterways, wood- (2) A person whose total household lands, and croplines in cases where income was at or below the national farming practices make it probable poverty level for a family of four in that such cropline is not subject to each of the same two previous years change, or other similar features. referenced in paragraph (1) of this defi- GIS means Geographic Information nition. (Limited resource farmer or System or a system that stores, ana- rancher status can be determined using lyzes, and manipulates spatial or geo- a Web site available through the Lim- graphically referenced data. GIS com- ited Resource Farmer and Rancher On- putes distances and acres using stored line Self Determination Tool through data and calculations. National Resource and Conservation Service at http:// GPS means Global Positioning Sys- www.lrftool.sc.egov.usda.gov.) tem or a positioning system using sat- (3) For legal entities, the sum of ellites that continuously transmit gross sales and household income must coded information. The information be considered for all members. transmitted from the satellites is in- Measurement service means a measure- terpreted by GPS receivers to precisely ment of acreage or farm-stored com- identify locations on earth by meas- modities performed by a representative uring distance from the satellites. of FSA and paid for by the producer re- means grain sorghum Grain sorghum questing the measurement. of a feed grain or dual purpose variety Measurement service after planting (including any cross that, at all stages means determining a crop or des- of growth, having characteristics of a ignated acreage after planting but be- feed grain or dual purpose variety) that fore the farm operator files a report of follows the standard planting and har- acreage for the crop. vesting practice for grain sorghum for Measurement service guarantee means the area in which the grain sorghum a guarantee provided when a producer was planted. Sweet sorghum is not con- requests and pays for an authorized sidered a grain sorghum. FSA representative to measure acreage Ground measurement means the dis- for FSA and CCC program participa- tance between 2 points on the ground, tion unless the producer takes action obtained by actual use of a chain tape, to adjust the measured acreage. If the GPS with a minimum accuracy level as producer has taken no such action, and determined by the Deputy Adminis- the measured acreage is later discov- trator, or other measuring device. ered to be incorrect, the acreage deter- Intended use means for a crop or a mined pursuant to the measurement commodity, the end use for which it is service will be used for program pur- grown and produced. poses for that program year. Joint operation means a general part- Minor child means an individual who nership, joint venture, or other similar is under 18 years of age. For the pur- business organization. pose of programs under chapters VII Landlord means one who rents or and XIV of this title, State court pro- leases farmland to another. ceedings conferring majority on an in- Limited resource farmer or rancher dividual under 18 years of age will not means a farmer or rancher who is both change such an individual’s status as a of the following: minor.

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Nonagricultural commercial or indus- a revocable trust, or a participant in a trial use means land that is no longer similar entity, or a State, political suitable for producing annual or peren- subdivision or agency thereof. To be nial crops, including conserving uses, considered a separate person for the or forestry products. purpose of this part, the individual or Normal planting period means that pe- other legal entity must: riod during which the crop is normally (1) Have a separate and distinct in- planted in the county, or area within terest in the land or the crop involved; the county, with the expectation of (2) Exercise separate responsibility producing a normal crop. for such interest; and Normal row width means the normal (3) Be responsible for the cost of distance between rows of the crop in farming related to such interest from a the field, but not less than 30 inches for fund or account separate from that of all crops. any other individual or entity. Oats means oats that follows the Physical location means the political standard planting and harvesting prac- county and State determined by FSA tice of oats for the area in which the for identifying a tract or common land oats are grown. unit, as applicable, under this part. Operator means an individual, entity, FSA will consider all the DCP cropland or joint operation who is determined within an original tract to be in one by the FSA county committee to be in single physical location county and control of the farming operations on State based upon 95 percent or more of the farm. the tract’s DCP cropland. For DCP Owner means one who has legal own- cropland that FSA determines lies out- ership of farmland, including: side the physical location (county) of (1) Any agency of the Federal Gov- the original tract that is 10 acres or ernment; however, such agency is not more and more than 5 percent of the eligible to receive any program pay- original tract, FSA will divide that ment; land from the original tract and estab- (2) One who is buying farmland under lish a new tract for that area. a contract for deed; or Planted and considered planted (P&CP) (3) One who has a life-estate in the means with respect to an acreage property. amount, the sum of the planted and Partial reconstitution means a recon- prevented planted acres on the farm stitution that is made effective in the approved by the FSA county com- current year for some crops, but is not mittee for a crop. P&CP is limited to made effective in the current year for initially planted or prevented planted other crops. This results in the same crop acreage, except for crops planted farm having two or more farm numbers in an FSA approved double-cropping se- in one crop year. quence. Subsequently planted crop Participant means one who partici- acreage and replacement crop acreage pates in, or receives payments or bene- are not included as P&CP. fits in accordance with any of the pro- Producer means an owner, operator, grams administered by FSA. landlord, tenant, or sharecropper, who Pasture means land that is used to, or shares in the risk of producing a crop has the potential to, produce food for and who is entitled to share in the crop grazing animals. available for marketing from the farm, Person means an individual, or an in- or would have shared had the crop been dividual participating as a member of a produced. A producer includes a grower joint operation or similar operation, a of hybrid seed. corporation, joint stock company, as- Quota means the pounds allocated to sociation, limited stock company, lim- a farm for a commodity in accordance ited partnership, irrevocable trust, rev- with the Agricultural Adjustment Act ocable trust together with the grantor of 1938, as amended. of the trust, estate, or charitable orga- Random inspection means an examina- nization including any entity partici- tion of a farm by an authorized rep- pating in the farming operation as a resentative of FSA selected as a part of partner in a general partnership, a par- an impartial sample to determine the ticipant in a joint venture, a grantor of adherence to program requirements.

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Reconstitution means a change in the Standard deduction means an acreage land constituting a farm as a result of that is excluded from the gross acreage combination or division. in a field because such acreage is con- Reported acreage means the acreage sidered as being used for farm equip- reported by the farm operator, farm ment turn-areas. Such acreage is estab- owner, farm producer, or their agent on lished by application of a prescribed a Form prescribed by the FSA. percentage of the area planted to the Required inspection means an exam- crop in lieu of measuring the turn area. ination by an authorized representa- State committee means the FSA State tive of FSA of a farm specifically se- committee. lected by application of prescribed Subdivision means a part of a field rules to determine adherence to pro- that is separated from the balance of gram requirements or to verify the the field by temporary boundary, such farm operator’s, farm owner’s, farm as a cropline which could be easily producer, or agent’s report. moved or will likely disappear. Rice means rice that follows the Subsequent crop means a crop fol- standard planting and harvesting prac- lowing an initial crop that is not in an tices of the area excluding sweet, gluti- approved double cropping combination. nous, or candy rice such as Mochi Tenant means: Gomi. (1) One who rents land from another Secretary means the Secretary of Ag- in consideration of the payment of a riculture of the United States, or a des- specified amount of cash or amount of ignee. a commodity; or Sharecropper means one who performs (2) One (other than a sharecropper) work in connection with the produc- who rents land from another person in tion of a crop under the supervision of consideration of the payment of a the operator and who receives a share share of the crops or proceeds thereof such crop for its labor. from. Skip-row or strip-crop planting means a Tolerance means a prescribed amount cultural practice in which strips or within which the reported acreage and/ rows of the crop are alternated with or production may differ from the de- strips of idle land or another crop. termined acreage and/or production and still be considered as correctly re- Socially disadvantaged farmer or ranch- ported. er means a farmer or rancher who is a Tract means a unit of contiguous land member of a socially disadvantaged under one ownership located in one group whose members have been sub- physical location (county), as defined jected to racial, ethnic, or gender prej- in this part, which is operated as a udice because of their identity as mem- farm, or part of a farm. bers of a group without regard to their Tract combination means the com- individual qualities. Socially disadvan- bining of two or more tracts if the taged groups include the following and tracts have common ownership and are no others unless approved in writing by contiguous. the Deputy Administrator: Tract division means the dividing of a (1) American Indians or Alaskan Na- tract into two or more tracts because tives, of a change in ownership or operation. (2) Asians or Asian-Americans, Turn-area means the area across the (3) Blacks or African-Americans, ends of crop rows which is used for op- (4) Hispanics or Hispanic-Americans, erating equipment necessary to the (5) Native Hawaiians or other Pacific production of a row crop (also called Islanders, and turn row, headland, or end row). (6) Women. United States means all 50 States of Staking and referencing means deter- the United States, the District of Co- mining an acreage before planting by: lumbia, the Commonwealth of Puerto (1) Measuring or computing a delin- Rico and any other territory or posses- eated area from ground measurements sion of the United States. and documenting the area measured; Upland cotton means planted and stub and, (2) Staking and referencing the cotton that is not considered extra area on the ground. long staple cotton, and that follows the

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standard planting and harvesting prac- § 718.4 Authority for farm entry and tices of the area and is produced from providing information. other than pure strain varieties of the (a) This section applies to all farms Barbadense species, any hybrid thereof, that have a tobacco allotment or quota or any other variety of cotton in which under part 723 of this chapter and all one or more of these varieties predomi- farms that are currently participating nate. For program purposes, brown lint in programs administered by FSA. cotton is considered upland cotton. (b) A representative of FSA may Veteran farmer or rancher means a enter any farm that participates in an farmer or rancher who has served in FSA or CCC program in order to con- the United States Army, Navy, Marine duct a farm inspection as defined in Corps, Air Force, and Coast Guard, in- this part. A program participant may cluding the reserve components and who: request that the FSA representative (1) Has not operated a farm or ranch; present written authorization for the (2) Has operated a farm or ranch for farm inspection before granting access not more than 10 years; or to the farm. If a farm inspection is not (3) Is a veteran (as defined as a per- allowed within 30 days of written au- son who served in the active duty or ei- thorization: ther active duty for training or inac- (1) All FSA and CCC program benefits tive duty during which the individual for that farm shall be denied; was disabled, and who was discharged (2) The person preventing the farm or released therefrom under conditions inspection shall pay all costs associ- other than dishonorable) who has first ated with the farm inspection; obtained status as a veteran during the (3) The entire crop production on the most recent 10-year period. farm will be considered to be in excess Wheat means wheat for feed or dual of the quota established for the farm; purpose variety that follows the stand- and ard planting and harvesting practice of (4) For tobacco, the farm operator wheat for the area in which the wheat must furnish proof of disposition of: is grown. (i) All tobacco which is in addition to the production shown on the mar- [68 FR 16172, Apr. 3, 2003; 69 FR 250, Jan. 5, keting card issued with respect to such 2004, as amended at 79 FR 74571, Dec. 15, 2014; 80 FR 41994, July 16, 2015; 84 FR 45886, Sept. farm; and 3, 2019] (ii) No credit will be given for disposing of excess tobacco other than § 718.3 State committee responsibil- that identified by a marketing card un- ities. less disposed of in the presence of FSA (a) The State committee shall, with in accordance with § 718.109 of this part. respect to county committees: (c) If a program participant refuses (1) Take any action required of the to furnish reports or data necessary to county committee, which the county determine benefits in accordance with committee fails to take in accordance paragraph (a) of this section, or FSA with this part; determines that the report or data was (2) Correct or require the county erroneously provided through the lack committee to correct any action taken of good faith, all program benefits re- by such committee, which is not in ac- lating to the report or data requested cordance with this part; or will be denied. (3) Require the county committee to (d) Program participants requesting withhold taking any action which is program benefits as a beginning farmer not in accordance with this part. or rancher, limited resource farmer or (b) The State committee shall submit rancher, socially disadvantaged farmer to the Deputy Administrator requests or rancher, or veteran farmer or ranch- to deviate from deductions prescribed er must provide a certification of their in § 718.109, or the error amount or per- status as a member of one of those centage for refunds of redetermination groups as required by the applicable costs as prescribed in § 718.112. program provisions. [61 FR 37552, July 18, 1996, as amended at 80 [68 FR 16172, Apr. 3, 2003, as amended at 84 FR 41994, July 16, 2015] FR 45886, Sept. 3, 2019]

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§ 718.5 Rule of fractions. under disaster programs administered (a) Fractions shall be rounded after by FSA; completion of the entire associated (iii) Any price support loan available computation. All mathematical cal- in accordance with part 1421 of this culations shall be carried to two dec- title; imal places beyond the number of dec- (iv) Any price support made under imal places required by the regulations the Commodity Credit Corporation governing each program. In rounding, Charter Act; fractional digits of 49 or less beyond (v) A farm storage facility loan made the required number of decimal places under section 4(h) of the Commodity shall be dropped; if the fractional dig- Credit Corporation Charter Act or any its beyond the required number of dec- other Act; imal places are 50 or more, the figure (vi) Crop Insurance under the Federal at the last required decimal place shall Crop Insurance Act; be increased by ‘‘1’’ as follows: (vii) A loan made or guaranteed Required decimal Computation Result under the Consolidated Farm and Rural Development Act or any other Whole numbers ...... 6.49 (or less) ...... 6 6.50 (or more) ...... 7 law administered by FSA’s Farm Loan Tenths ...... 7.649 (or less) ...... 7.6 Programs. 7.650 (or more) ...... 7.7 Hundredths ...... 8.8449 (or less) ...... 8.84 (2) Possession or trafficking of a con- 8.8450 (or more) ...... 8.85 trolled substance, is ineligible for any Thousandths ...... 9.63449 (or less) ...... 9.634 or all USDA benefits: 9.63450 (or more) ..... 9.635 0 thousandths ...... 10.993149 (or less) ... 10.9931 (i) At the discretion of the court, 10.993150 (or more) 10.9932 (ii) To the extent and for a period of time the court determines. (b) The acreage of each field or sub- (c) If a person denied benefits under division computed for tobacco and CCC this section is a shareholder, bene- disaster assistance programs shall be ficiary, or member of an entity or joint recorded in acres and hundredths of an acre, dropping all thousandths of an operation, benefits for which the entity acre. The acreage of each field or sub- or joint operation is eligible will be re- division computed for crops, except to- duced, for the appropriate period, by a bacco, shall be recorded in acres and percentage equal to the total interest tenths of an acre, rounding all hun- of the shareholder, beneficiary, or dredths of an acre to the nearest tenth. member.

§ 718.6 Controlled substance. [72 FR 63284, Nov. 8, 2007, as amended at 84 FR 45886, Sept. 3, 2019] (a) The following terms apply to this section: § 718.7 Furnishing maps. (1) USDA benefit means the issuance (a) A reasonable number, as deter- of any grant, contract, loan, or payment by appropriated funds of the mined by FSA, of reproductions of pho- United States. tographs, mosaic maps, and other maps (2) Person means an individual. will be made available to the owner of (b) Notwithstanding any other provi- a farm, an insurance company rein- sion of law, any person convicted under sured by the Federal Crop Insurance Federal or State law of: Corporation (FCIC), or a private party (1) Planting, cultivating, growing, contractor performing official duties producing, harvesting, or storing a con- on behalf of FSA, CCC, and other trolled substance in any crop year is USDA agencies. ineligible during the crop year of con- (b) For all others, reproductions will viction and the four succeeding crop be made available at the rate FSA de- years, for any of the following USDA termines will cover the cost of making benefits: such items available. (i) Any payments or benefits under part 1412 of this title; [80 FR 41994, July 16, 2015] (ii) Any payments or benefits for losses to crops or livestock covered

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§ 718.8 Administrative county and administrative county under this sec- servicing FSA county office. tion, must be submitted to FSA by Au- (a) FSA farm records are maintained gust 1 of each year for the change to in an administrative county deter- take effect that calendar year. mined by FSA. Generally, a farm’s ad- (f) When land on the farm is phys- ministrative county is based on the ically located in more than one county, physical location county of the farm. If the farm will be administered by a all land on the farm is physically lo- servicing FSA county office deter- cated in one physical location county, mined by FSA to be the administrative the farm’s records will be administra- county responsibility for administratively located in that physical location tion of programs for one or more of the county. physical counties involved in the (b) In cases where there is no FSA of- farm’s constitution. Paragraph (b), (c), fice in the county in which the farm is or (d) of this section applies if changes physically located or where a servicing occur to the servicing FSA county of- FSA county office is responsible for fice and administrative county. more than one administrative county, (g) Farm operators and owners can- the farm records will be administra- not request a change to a farm’s ad- tively located as specified in paragraph ministrative county. The operator and (a) of this section and with a servicing owner of a farm serviced by an FSA FSA county office that FSA as des- county office responsible for a farm’s ignated as responsible for that admin- administrative county can request a istrative county. change of servicing FSA county office (c) Farm operators and owners can to another FSA servicing county office conduct their farm’s business in any in the same State by August 1 for the FSA county office. FSA’s designation change to take effect that calendar of a farm’s administrative county is year. Review and approval of any based on where land of the farm is lo- change to the servicing FSA county of- cated as specified in paragraph (a) of fice is solely at the discretion of FSA. this section or as might be required Requests for change in servicing FSA under paragraph (b) of this section. county office, which may or may not (d) Farm operators and owners can result in a change to a farm’s adminis- request a change to their servicing trative county, will be reviewed and FSA county office and that request approved by county committee if all may necessitate a change to the farm’s the following can be determined to administrative county as specified in apply: (1) The requested change does not im- paragraph (a) or (b) of this section. If pact the constitution of a farm; the requested servicing FSA county of- (2) The requested change will not re- fice is not responsible for and does not sult in increased program eligibility or have an administrative county for the additional benefits for the farm’s pro- physical location of the farm according ducers that would not be earned absent to paragraphs (a) or (b) of this section the change in servicing FSA county of- and FSA approves the request for fice and, if applicable, administrative change of servicing FSA county office, county being made; and FSA will designate the administrative (3) The change is not to circumvent county for the farm from those avail- any of the provisions of other program able in the requested servicing FSA regulations to which this part applies. county office. (h) The State committee will submit (e) If a county contiguous to the all requests for exceptions from regula- county in which the farm is physically tions specified in this section to the located in the same State does not Deputy Administrator. have a servicing FSA county office, the farm will be administratively located [84 FR 45886, Sept. 3, 2019] by FSA in a contiguous county in another contiguous State that is conven- § 718.9 Signature requirements. ient to the farm operator and owner. (a) When a program authorized by Requests for changes to a farm’s serv- this chapter or chapter XIV of this icing FSA county office, which may or title requires the signature of a pro- may not result in a change to a farm’s ducer, landowner, landlord, or tenant,

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then a spouse may sign all such FSA or (f) Documents that were previously CCC documents on behalf of the other acted on and approved by the FSA spouse, except as otherwise specified in county office or county committee will this section, unless such other spouse not subsequently be determined inad- has provided written notification to equate or invalid because of the lack of FSA and CCC that such action is not signature authority of any person sign- authorized. The notification must be ing the document on behalf of the ap- provided to FSA for each farm. plicant or any other individual, entity, (b) A spouse may not sign a docu- general partnership, or joint venture, ment on behalf of the other spouse unless the person signing the program with respect to: document knowingly and willfully fal- (1) Program document required to be sified the evidence of signature author- executed in accordance with part 3 of ity or a signature. However, FSA may this title; (2) Easements entered into under require affirmation of the document by part 1410 of this title; those parties deemed appropriate for (3) Power of attorney; an affirmation, as determined by the (4) Such other program documents as Deputy Administrator. Nothing in this determined by FSA or CCC. paragraph relieves participants of any (c) An individual; duly authorized of- other program requirements. ficer of a corporation; duly authorized [68 FR 16172, Apr. 3, 2003; 69 FR 250, Jan. 5, partner of a partnership; executor or 2004, as amended at 80 FR 41995, July 16, 2015] administrator of an estate; trustee of a trust; guardian; or conservator may § 718.10 Time limitations. delegate to another the authority to act on their behalf with respect to FSA Whenever the final date prescribed in and CCC programs administered by any of the regulations in this title for USDA service center agencies by exe- the performance of any act falls on a cution of a Power of Attorney, or such Saturday, Sunday, national holiday, other form as approved by the Deputy State holiday on which the office of the Administrator. FSA and CCC may, at county or State Farm Service Agency their discretion, allow the delegations committee having primary cognizance of authority by other individuals of the action required to be taken is through use of the Power of Attorney closed, or any other day on which the or such other form as approved by the cognizant office is not open for the Deputy Administrator. transaction of business during normal (d) Notwithstanding another provi- working hours, the time for taking re- sion of this regulation or any other quired action shall be extended to the FSA or CCC regulation in this title, a close of business on the next working parent may execute documents on be- day. Or in case the action required to half of a minor child unless prohibited be taken may be performed by mailing, by a statute or court order. the action shall be considered to be (e) Notwithstanding any other provi- taken within the prescribed period if sion in this title, an authorized agent the mailing is postmarked by midnight of the Bureau of Indian Affairs (BIA) of of such next working day. Where the the United States Department of Inte- action required to be taken is with a rior may sign as agent for landowners prescribed number of days after the with properties affiliated with or under mailing of notice, the day of mailing the management or trust of the BIA. For collection purposes, such payments shall be excluded in computing such will be considered as being made to the period of time. persons who are the beneficiaries of the § 718.11 Disqualification due to Fed- payment or may, alternatively, be con- eral crop insurance violation. sidered as an obligation of all persons on the farm in general. In the event of (a) Section 515(h) of the Federal Crop a need for a refund or other claim may Insurance Act (FCIA) provides that a be collected, among other means, by person who willfully and intentionally other monies due such persons or the farm.

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provides false or inaccurate informa- Subpart B—Determination of tion to the Federal Crop Insurance Cor- Acreage and Compliance poration (FCIC) or to an approved insurance provider with respect to a pol- SOURCE: 68 FR 16176, Apr. 3, 2003, unless icy or plan of FCIC insurance, after no- otherwise noted. tice and an opportunity for a hearing on the record, will be subject to one or § 718.101 Measurements. more of the sanctions described in sec- (a) Measurement services include, tion 515(h)(3). In section 515(h)(3), the but are not limited to, measuring land FCIA specifies that in the case of a vio- and crop areas, measuring quantities of lation committed by a producer, the farm-stored commodities, and apprais- producer may be disqualified for a pe- ing the yields of crops in the field when riod of up to 5 years from receiving any required for program administration monetary or non-monetary benefit purposes. The county committee will under a number of programs. The list provide measurement service if the includes, but is not limited to, benefits producer requests such service and under: pays the cost, except that measure- (1) The FCIA. ment service is not available and will (2) The Agricultural Market Transi- not be provided to determine total tion Act (7 U.S.C. 7201 et seq.), includ- acreage or production of a crop when ing the Noninsured Crop Disaster As- the request is made: sistance Program under section 196 of (1) For acreage, after the established that Act (7 U.S.C. 7333). final reporting date for the applicable (3) The Agricultural Act of 1949 (7 crop, unless a late filed report is ac- U.S.C. 1421 et seq.). cepted as provided in § 718.104; or (4) The Commodity Credit Corpora- (2) After the farm operator has fur- tion Charter Act (15 U.S.C. 714 et seq.). nished production evidence when re- (5) The Agricultural Adjustment Act quired for program administration pur- of 1938 (7 U.S.C. 1281 et seq.). poses except as provided in this sub- (6) Title XII of the Food Security Act part. of 1985 (16 U.S.C. 3801 et seq.). (b) Except for measurements and de- (7) The Consolidated Farm and Rural terminations performed by FSA in accordance with late-filed acreage re- Development Act (7 U.S.C. 1921 et seq.). ports filed in accordance with § 718.104, (8) Any law that provides assistance when a producer requests, pays for, and to a producer of an agricultural com- receives written notice that measure- modity affected by a crop loss or a de- ment services have been furnished, the cline in prices of agricultural commod- measured acreage is guaranteed to be ities. correct and used for all program pur- (b) Violation determinations are poses for the current year even though made by FCIC. However, upon notice an error is later discovered in the from FCIC to FSA that a producer has measurement. been found to have committed a violation to which paragraph (a) of this sec- [84 FR 45887, Sept. 3, 2019] tion applies, that person will be ineli- § 718.102 Acreage reports. gible for payments under the programs specified in paragraph (a) of this sec- (a) In order to be eligible for benefits, tion that are funded by FSA for the participants in the programs specified same period of time for which, as deter- in paragraphs (b)(1) through (b)(6) of mined by FCIC, the producer will be in- this section must submit accurate ineligible for crop insurance benefits of formation annually as required by the kind referred to in paragraph (a)(1) these provisions. of this section. Appeals of the deter- (b)(1) Participants in programs for mination of ineligibility will be admin- which eligibility for benefits is tied to istered under the rules set by FCIC. base acres must report the acreage of fruits and vegetables planted for har- (c) Other sanctions may also apply. vest on a farm enrolled in such pro- [72 FR 63284, Nov. 8, 2007] gram;

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(2) Participants in the programs gov- ble cause of loss that prevented the erned by parts 1421 and 1427 of this title planting must have: must report the acreage planted to a (1) Occurred after a previous planting commodity for harvest for which a period for the crop; marketing assistance loan or loan defi- (2) Occurred before the final planting ciency payment is requested; date for the crop in the applicable crop (3) Participants in the programs gov- year or, in the case of multiple plant- erned by part 1410 of this title must re- ings, the harvest date of the first port the intended use of land enrolled planting in the applicable planting pe- in such programs; riod, and (4) All participants in the programs (3) Similarly affected other producers governed by part 1437 of this title must in the area, as determined by CCC. report all acreage and intended use of (b) FSA may approve acreage as the eligible crop in the country in ‘‘prevented planted acreage’’ if all which the producer has a share; other conditions for such approval are (5) Participants in the programs gov- met and provided the conditions in erned by part 723 of this chapter and paragraphs (b)(1) through (6) of this part 1464 of this title must report the section are met. acreage planted to tobacco by kind on (1) Except as specified in paragraph all farms that have an effective allot- (b)(2) of this section, producers must ment or quota greater than zero; report the acreage, on forms specified (6) All participants in the programs by FSA, within 15 calendar days after governed by parts 1412, 1421, and 1427 of the final planting date determined for this title must report the use of all the crop by FSA. cropland on the farm. (2) If the acreage is reported after the (7) All producers reporting acreage as period identified in paragraph (b)(1) of prevented planted acreage or failed this section, the application must be acreage must provide documentation filed in time to permit: that meets the provisions of § 718.103 to (i) The county committee or its au- the FSA county office where the farm thorized representative to make a farm is administered. visit to verify eligible disaster condi- (c) The annual acreage reports re- tions that prevented the specified acre- quired in paragraph (a) of this section age or crop from being planted; or must be filed with the county com- (ii) The county committee or its au- mittee by the farm operator, farm thorized representative the oppor- owner, producer of the crop on the tunity to determine, based on visual farm, or duly authorized representative inspection, that the acreage or crop in by the final reporting date applicable question was affected by eligible dis- to the crop as established by the Dep- aster conditions such as damaging uty Administrator. weather or other adverse natural oc- (d) Participants in programs to which currences that prevented the acreage this part is applicable must report all or crop from being planted. crops, in all counties, in which they (3) A farm visit to inspect the acre- have an interest. This includes crops age or crop is required for all late-filed on cropland and noncropland, including acreage reports where prevented plant- native or improved grass that will be ing credit is sought. Under no cir- hayed or grazed. cumstance may acreage reported after [68 FR 16176, Apr. 3, 2003, as amended at 71 the 15-day period referenced in para- FR 13741, Mar. 17, 2006; 79 FR 74571, Dec. 15, graph (b)(1) of this section be deemed 2014; 80 FR 41995, July 16, 2015] acceptable unless the criteria in paragraph (b)(2) of this section are met. § 718.103 Prevented planted and failed State and county committees do not acreage. have the authority to waive the field (a) Prevented planting is the inabil- inspection and verification provisions ity to plant an eligible crop with prop- for late-filed reports. er equipment during the planting pe- (4) All determinations made during riod as a result of an eligible cause of field inspections must be documented loss, as determined by CCC. The eligi- on each late-filed acreage report, with

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results also recorded in county com- (f) Acreage ineligible for prevented mittee minutes to support the docu- planting coverage includes, but is not mentation. limited to, acreage: (5) The acreage must have been pre- (1) With respect to which the plant- vented from being planted as the result ing history or conservation plans indi- of a natural disaster and not a manage- cate it would remain fallow for crop ro- ment decision. tation purposes; (6) The prevented planted acreage re- (2) Used for conservation purposes or port was approved by the county com- intended to be or considered to have mittee. The county committee may been left unplanted under any program disapprove prevented planted acreage administered by USDA, including the credit if it is not satisfied with the doc- Conservation Reserve and Wetland Re- umentation provided. serve Programs; (c) To receive prevented planted cred- (3) Not planted because of a manage- it for acreage, the producer must show ment decision; to the satisfaction of FSA that the pro- (4) Affected by the containment or ducer intended to plant the acreage. release of water by any governmental, Documentation supporting such intent public, or private dam or reservoir includes documents related to field project, if an easement exists on the preparation, seed purchase, and any acreage affected for the containment other information that shows the acre- or release of water; age could and would have been planted (5) Where any other person receives a and harvested absent the natural dis- prevented planted payment for any aster or eligible cause of loss that pre- crop for the same crop year, unless the vented the planting. acreage meets all the requirements for (d) Prevented planted acreage credit double cropping under this part; will not be given to crops where the (6) Where pasture or other forage prevented-planted acreage was affected crop is in place on the acreage during by drought, unless: the time that planting of the crop gen- (1) On the final planting date for non- erally occurs in the area; irrigated acreage, the area that is pre- (7) Where another crop is planted vented from being planted has insuffi- (previous or subsequent) that does not cient soil moisture for germination of meet the double cropping definition; seed and progress toward crop matu- rity because of a prolonged period of (8) Where any volunteer or cover crop dry weather, as determined by CCC; is hayed, grazed, or otherwise har- and vested on the acreage for the same crop (2) Prolonged precipitation defi- year; ciencies exceeded the D2 level as deter- (9) Where there is an inadequate sup- mined using the U.S. Drought Monitor; ply of irrigation water beginning on and the Federal crop insurance sale closing (3) Verifiable information is collected date for the previous crop year or the from sources whose business or purpose Noninsured Crop Disaster Assistance it is to record weather conditions, as Program (NAP) application closing determined by CCC, and including but date for the crop as specified in part not limited to the local weather report- 1437 of this title through the final ing stations of the U.S. National planting date of the current year; Weather Service. (10) On which a failure or breakdown (e) Prevented planted acreage credit of irrigation equipment or facilities, under this part applies to irrigated unless the failure or breakdown is due crops where the acreage was prevented to a natural disaster; from being planted due to a lack of (11) That is under quarantine im- water resulting from drought condi- posed by a county, State, or Federal tions or contamination by saltwater government agency; intrusion of an irrigation supply re- (12) That is affected by chemical or sulting from drought conditions if herbicide residue, unless the residue is there was not a reasonable probability due to a natural disaster; of having adequate water to carry out (13) That is affected by drifting herbi- an irrigation practice. cide;

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(14) On which a crop was produced, (2) Provide documentation that the but the producer was unable to obtain crop was planted using farming prac- a market for the crop; tices consistent for the crop and area, (15) Involving a planned planting of a but could not be brought to harvest be- ‘‘value loss crop’’ as that term is de- cause of disaster-related conditions. fined for NAP as specified in part 1437 (k) The eligible cause for failed acre- of this title, including, but not limited age must have: to, Christmas trees, aquaculture, or or- (1) Occurred after the crop was plant- namental nursery, for which NAP as- ed, and sistance is provided under value loss (2) Before the normal harvest date for procedure; the crop in the applicable crop year or (16) For which the claim for pre- in the case of multiple plantings, the vented planted credit relates to trees harvest date of the first planting in the or other perennials unless the producer applicable planting period, and can prove resources were available to (3) Other producers in the area were plant, grow, and harvest the crop, as similarly affected as determined by applicable; CCC. (17) That is affected by wildlife dam- (l) Eligible failed acreage will be de- age; termined on the basis of the producer (18) Upon which, the reduction in the planting the crop under normal condi- water supply for irrigation is due to tions with the expectation to take the participation in an electricity buy- crop to harvest. back program, or the sale of water (m) Acreage ineligible for failed acre- under a water buy-back or legislative age credit includes, but is not limited changes regarding water usage, or any to acreage: other cause which is not a natural dis- (1) Which was planted using methods aster; or that could not be considered normal for (19) That is devoted to non-cropland. the area and without the expectation (g) CCC may allow exceptions to of harvest; acreage ineligible for prevented plant- (2) Used for conservation purposes or ing coverage when surface water or intended to be or considered to have ground water is reduced because of a been un-harvested under any program natural disaster (as determined by administered by USDA, including the CCC). Conservation Reserve and Wetland Re- (h) Failed acreage is acreage that was serve Programs; or planted with the proper equipment dur- (3) That failed because of a manage- ing the planting period but failed as a ment decision. result of an eligible cause of loss, as de- [71 FR 13741, Mar. 17, 2006, as amended at 80 termined by CCC. FR 41995, July 16, 2015; 84 FR 45887, Sept. 3, (i) To be approved by CCC as failed 2019] acreage the acreage must have been reported as failed acreage before disposi- § 718.104 Late-filed and revised acre- tion of the crop, and the acreage must age reports. have been planted under normal condi- (a) Late-filed acreage reports may be tions but failed as the result of a nat- accepted after the final reporting date ural disaster and not a management through the crop’s immediately subse- decision. Producers who file a failed quent crop year’s final reporting date acreage report must have the request and processed by FSA if both of the fol- acted on by the county committee. The lowing apply: county committee will deny the acre- (1) The crop or identifiable crop res- age report if it is not satisfied with the idue remains in the field, permitting documentation provided. FSA to verify and determine the acre- (j) To receive failed acreage credit age and the producer must show all of the fol- (2) The crop acreage and common lowing: land unit for which the reported crop (1) That the acreage was planted acreage report is being filed has not al- under normal conditions using the ready been determined by FSA. proper equipment with the intent to (b) Acreage reports submitted later harvest the acreage. than the date specified in paragraph (a)

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of this section will not be processed by age was not planted according to those FSA and will not be used for program measurements or when a measurement purposes. service is not requested for acreage de- (c) The person or legal entity filing a stroyed to meet program requirements. report late must pay the cost of a farm (c) Tolerance rules do not apply to: inspection and measurement unless (1) Program requirements of FSA determines that failure to report §§ 718.102(b)(2), (b)(4) and (b)(6); in a timely manner was beyond the (2) Official fields upon which the en- producer’s control. The cost of the in- tire field is devoted to one crop; spection and measurement is equal to (3) Those fields for which staking and the amount FSA would charge for referencing was performed and such measurement service; however, FSA’s acreage was planted according to those determination of acreage as a result of measurements; or the inspection and measurement is not (4) The adjusted acreage for farms considered a paid for measurement using measurement after planting service under § 718.101. The acreage which have a determined acreage measured will be entered as determined greater than the marketing quota crop acres. allotment. (d) When an acceptable late-filed (d) If the acreage report for a crop is acreage report is filed in accordance outside the tolerance for that crop: with this section, the reported crop (1) FSA may consider the require- acreage will be entered for the amount ments of §§ 718.102 (b)(1), (b)(3) and (b)(5) that was actually reported to FSA be- not to have been met; fore FSA determined acres, and the de- (2) Participants may be ineligible for termined crop acreage will be entered all or a portion of payments or benefits as it was determined and established subject to the requirements of §§ 718.102 by FSA. (b)(1), (b)(3) and (b)(5); and (e) Revised acreage reports may be (3) Participants may be ineligible for filed to change the acreage reported if: all or a portion of payments or benefits (1) The acreage has not already been under a program that requires accurate determined by FSA; and crop acreage reports under rules gov- (2) Actual crop or residue is present erning the program. in the field. (f) Revised reports will be filed and [68 FR 16176, Apr. 3, 2003, as amended at 80 accepted: FR 41996, July 16, 2015; 84 FR 45887, Sept. 3, (1) At any time for all crops if the 2019] crop or residue still exists in the field § 718.106 Non-compliance and false for inspection to verify the existence acreage reports. and use made of the crop, the lack of the crop, or a disaster condition affect- (a) Participants who provide false or ing the crop; and inaccurate acreage reports may be in- (2) If the producer was in compliance eligible for some or all payments or with all other program requirements at benefits, subject to the requirements of the reporting date. § 718.102(b)(1) and (3). (b) [Reserved] [71 FR 13742, Mar. 17, 2006, as amended as 80 FR 41996, July 16, 2015; 84 FR 45887, Sept. 3, [80 FR 41996, July 16, 2015] 2019] § 718.107 Acreages. § 718.105 Tolerances and adjustments. (a) If an acreage has been established (a) Tolerance is the amount by which by FSA for an area delineated on an the determined acreage for a crop may aerial photograph or within a GIS, differ from the reported acreage or al- such acreage will be recognized by the lotment for the crop and still be con- county committee as the acreage for sidered in compliance with program re- the area until such time as the bound- quirements under §§ 718.102(b)(1), (b)(3) aries of such area are changed. When and (b)(5). boundaries not visible on the aerial (b) Tolerance rules apply to those photograph are established from data fields for which a staking and ref- furnished by the producer, such acre- erencing was performed but such acreage shall not be recognized as official

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acreage until an authorized representa- if it is determined that the acreage is tive of FSA verifies the boundaries. more sparsely planted than normal (b) Measurements of any row crop using reasonable and customary full shall extend beyond the planted area production planting techniques. by the larger of 15 inches or one-half (d) The Deputy Administrator has the distance between the rows. the discretionary authority to allow (c) The entire acreage of a field or row allowances other than those speci- subdivision of a field devoted to a crop fied in this section in those instances shall be considered as devoted to the in which crops are normally planted crop subject to a deduction or adjust- with spacings greater or less than 40 ment except as otherwise provided in inches, such as in case of tobacco, or this part. where other circumstances are present which the Deputy Administrator finds § 718.108 Measuring acreage including justifies that allowance. skip row acreage. (e) Paragraphs (a) through (d) of this (a) When one crop is alternating with section shall apply with respect to the another crop, whether or not both 2003 and subsequent crops. For pre- crops have the same growing season, ceding crops, the rules in effect on Jan- only the acreage that is actually plant- uary 1, 2002, shall apply. ed to the crop being measured will be considered to be acreage devoted to the § 718.109 Deductions. measured crop. (b) Subject to the provisions of this (a) Any contiguous area which is not paragraph and section, whether planted devoted to the crop being measured and in a skip row pattern or without a pat- which is not part of a skip-row pattern tern of skipped rows, the entire acreage under § 718.108 shall be deducted from of the field or subdivision may be con- the acreage of the crop if such area sidered as devoted to the crop only meets the following minimum national where the distance between the rows, standards or requirements: for all rows, is 40 inches or less. If there (1) A minimum width of 30 inches; is a skip that creates idle land wider (2) For tobacco—three-hundredths than 40 inches, or if the distance be- (.03) acre. Turn areas, terraces, perma- tween any rows is more than 40 inches, nent irrigation and drainage ditches, then the area planted to the crop shall sod waterways, non-cropland, and sub- be considered to be that area which division boundaries each of which is at would represent the smaller of; a 40 least 30 inches in width may be com- inch width between rows, or the nor- bined to meet the 0.03-acre minimum mal row spacing in the field for all requirement; or other rows in the field—those that are (3) For all other crops and land uses— not more than 40 inches apart. The al- one-tenth (.10) acre. Turn areas, ter- lowance for individual rows would be races, permanent irrigation and drain- made based on the smaller of actual age ditches, sod waterways, non-crop- spacing between those rows or the nor- land, and subdivision boundaries each mal spacing in the field. For example, of which is at least 30 inches in width if the crop is planted in single, wide and each of which contain 0.1 acre or rows that are 48 inches apart, only 20 more may be combined to meet any inches to either side of each row (for a larger minimum prescribed for a State total of 40 inches between the two in accordance with this subpart. rows) could, at a maximum, be consid- (b) If the area not devoted to the crop ered as devoted as the crop and normal is located within the planted area, the spacing in the field would control. Half part of any perimeter area that is more the normal distance between rows will than 217.8 feet (33 links) in width will also be allowed beyond the outside be considered to be an internal deduc- planted rows not to exceed 20 inches tion if the standard deduction is used. and will reflect normal spacing in the (c) A standard deduction of 3 percent field. of the area devoted to a row crop and (c) In making calculations under this zero percent of the area devoted to a section, further reductions may be close-sown crop may be used in lieu of made in the acreage considered planted measuring the acreage of turn areas.

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§ 718.110 Adjustments. be undertaken in the manner pre- (a) The farm operator or other inter- scribed by the Deputy Administrator. ested producer having excess tobacco A redetermination will be used in lieu acreage (other than flue-cured or bur- of any prior determination unless it is ley) may adjust an acreage of the crop determined by the representative of in order to avoid a marketing quota the Deputy Administrator that there is penalty if such person: good cause not to do so. (1) Notifies the county committee of (b) FSA will refund the payment of such election within 15 calendar days the cost for a redetermination when, after the date of mailing of notice of because of an error in the initial deter- excess acreage by the county com- mination: mittee; and (1) The appraised yield is changed by (2) Pays the cost of a farm inspection at least the larger of: to determine the adjusted acreage prior (i) Five percent or 5 pounds for cot- to the date the farm visit is made. ton; (b) The farm operator may adjust an (ii) Five percent or 1 bushel for acreage of tobacco (except flue-cured wheat, barley, oats, and rye; or and burley) by disposing of such excess (iii) Five percent or 2 bushels for corn tobacco prior to the marketing of any and grain sorghum; or of the same kind of tobacco from the (2) The farm stored production is farm. The disposition shall be wit- changed by at least the smaller of 3 nessed by a representative of FSA and percent or 600 bushels; or may take place before, during, or after (3) The acreage of the crop is: the harvesting of the same kind of to- (i) Changed by at least the larger of bacco grown on the farm. However, no 3 percent or 0.5 acre; or credit will be allowed toward the dis- (ii) Considered to be within program position of excess acreage after the to- requirements. bacco is harvested but prior to marketing, unless the county committee [68 FR 16176, Apr. 3, 2003, as amended at 80 determines that such tobacco is rep- FR 41996, July 16, 2015] resentative of the entire crop from the farm of the kind of tobacco involved. Subpart C—Reconstitution of Farms, Allotments, Quotas, § 718.111 Notice of measured acreage. and Base Acres (a) FSA will provide notice of measured acreage and mail it to the farm SOURCE: 68 FR 16178, Apr. 3, 2003, unless operator. This notice constitutes no- otherwise noted. tice to all parties who have ownership, leasehold interest, or other interest in § 718.201 Farm constitution. such farm. (a) In order to implement FSA pro- (b) [Reserved] grams and monitor compliance with [80 FR 41996, July 16, 2015] regulations, FSA must have records on what land is being farmed by a par- § 718.112 Redetermination. ticular producer. This is accomplished (a) A redetermination of crop acre- by a determination of what land or age, appraised yield, or farm-stored group of lands ‘‘constitute’’ an indi- production for a farm may be initiated vidual unit or farm. Land that was by the county committee, State com- properly constituted under prior regu- mittee, or Deputy Administrator at lations will remain so constituted until any time. Redetermination may be re- a reconstitution is required by para- quested by a producer with an interest graph (c) of this section. The constitu- in the farm if the producer pays the tion and identification of land as a cost of the redetermination. The re- ‘‘farm’’ for the first time and the sub- quest must be submitted to FSA within sequent reconstitution of a farm made 5 calendar days after the initial ap- thereafter will include all land oper- praisal of the yield of a crop, or before ated by an individual entity or joint the farm-stored production is removed operation as a single farming unit ex- from storage. A redetermination will cept that it may not include:

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(1) Land under separate ownership the farm shall be administratively lo- unless the owners agree in writing or cated in the county where the principal have previously agreed in writing and dwelling is situated, or where the the labor, equipment, accounting sys- major portion of the farm is located if tem, and management are operated in there is no dwelling. common by the operator, but separate (c) A reconstitution of a farm either from other tracts; by division or by combination is re- (2) Land under a lease agreement of quired whenever: less than 1 year duration; (1) A change has occurred in the oper- (3) Federally owned land unless it is ation of the land since the last con- rangeland on which no crops are plant- stitution or reconstitution and as a re- ed and on which there are no crop base acres established; sult of such change the farm does not (4) State-owned wildlife lands unless meet the conditions for constitution of the former owner has possession of the a farm as specified in paragraph (a) of land under a leasing agreement; this section, except that no reconstitu- (5) Land constituting a farm that is tion will be made if the county com- declared ineligible to be enrolled in a mittee determines that the primary program under the regulations gov- purpose of the change in operation is to erning the program; establish eligibility to transfer allot- (6) For base acre crops, land located ments subject to sale or lease, or in- in counties that are not contiguous ex- crease the amount of program benefits cept where: received; (i) Counties are divided by a river; (2) The farm was not properly con- (ii) Counties do not share a common stituted the previous time; border because of a correction line ad- (3) An owner requests in writing that justment; or the land no longer be included in a (iii) The land is within 20 miles, by farm composed of tracts under separate road, of other land that will be a part ownership; of the farming unit; (4) The county committee determines (7) Land subject to either a default that the farm was reconstituted on the election or a valid election made under basis of false information; part 1412 of this title for each and all covered commodities constituted with (5) The county committee determines land that has a different default elec- that tracts included in a farm are not tion or valid election for each and all being operated as a single farming covered commodities, irrespective of unit. whether or not any of the land has base (d) An owner can file a written re- acres; or quest to have FSA reconstitute from (8) Land subject to an election of in- original tracts areas that are less than dividual coverage under the Agri- 10 DCP cropland acres and less than 5 culture Risk Coverage Program (ARC– percent of the original tract, if such re- IC) in any State constituted with any quest is accompanied by sufficient data land in another State. from which FSA can determine the po- (b)(1) If all land on the farm is phys- litical county and State of land in both ically located in one county, the farm the original tract and the proposed shall be administratively located in tract. Any owner-initiated requests for such county. If there is no FSA office tract divisions for physical location in the county or the county offices will be performed and effective pro- have been consolidated, the farm shall spectively from date of request and ap- be administratively located in the con- proval by FSA. tiguous county most convenient for the (e) Reconstitution shall not be ap- farm operator. (2) If the land on the farm is located proved if the county committee deter- in more than one county, the farm mines that the primary purpose of the shall be administratively located in ei- reconstitution is to: ther of such counties as the county (1) Circumvent the provisions of part committees and the farm operator 12 of this title; or agree. If no agreement can be reached,

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(2) Circumvent any other chapter of being under the same ownership in de- this title. termining a farm. (h) All land operated as a single unit [68 FR 16178, Apr. 3, 2003, as amended at 80 FR 41996, July 16, 2015; 84 FR 45887, Sept. 3, and owned and operated by a parent 2019] corporation and subsidiary corporations of which the parent corporation § 718.202 Determining the land consti- owns more than 50 percent of the value tuting a farm. of the outstanding stock, or where the (a) In determining the constitution of parent is owned and operated by sub- a farm, consideration shall be given to sidiary corporations, shall be con- provisions such as ownership and oper- stituted as one farm. ation. For purposes of this part, the § 718.203 County committee action to following rules shall be applicable to reconstitute a farm. determining what land is to be included in a farm. Action to reconstitute a farm may be (b) A minor shall be considered to be initiated by the county committee, the the same owner or operator as the par- farm owner, or the operator with the ent, court-appointed guardian, or other concurrence of the owner of the farm. person responsible for the minor child, Any request for a farm reconstitution unless the parent or guardian has no shall be filed with the county com- interest in the minor’s farm or produc- mittee. tion from the farm, and the minor: § 718.204 Reconstitution of base acres. (1) Is a producer on a farm; (2) Maintains a separate household (a) Farms will be reconstituted in ac- from the parent or guardian; cordance with this subpart when it is (3) Personally carries out the farming determined that the land areas are not activities; and properly constituted and, to the extent (4) Maintains a separate accounting practicable as determined by county for the farming operation. committee, the reconstitution will be (c) A minor shall not be considered to based on the facts and conditions exist- be the same owner or operator as the ing at the time the change requiring parent or court-appointed guardian if the reconstitution occurred. the minor’s interest in the farming op- (b) Reconstitutions will be effective eration results from being the bene- for the calendar year if initiated by ficiary of an irrevocable trust and own- August 1 of that year. Any reconstitu- ership of the property is vested in the tion initiated after August 1 will not be trust or the minor. effective for that year; it will be effec- (d) A life estate tenant shall be con- tive for the subsequent year. sidered to be the owner of the property (c) The Deputy Administrator may for their life. approve an exception to permit a re- (e) A trust shall be considered to be constitution initiated after August 1 to an owner with the beneficiary of the be effective for the same year, if FSA trust; except a trust can be considered determines that the failure is due to a separate owner or operator from the administrative problems as determined beneficiary, if the trust: by FSA at the local or national level. (1) Has a separate and distinct inter- Producers have no right to seek an ex- est in the land or crop involved; ception under this paragraph. When (2) Exercises separate responsibility such situations exist, FSA will estab- for the separate and distinct interest; lish procedures under which reconstitu- and tions will be accepted and when those (3) Maintains funds and accounts sep- reconstitutions will become effective. arate from that of any other individual [79 FR 57714, Sept. 26, 2014, as amended at 84 or entity for the interest. FR 45887, Sept. 3, 2019] (f) The county committee shall require specific proof of ownership. § 718.205 Substantive change in farm- (g) Land owned by different persons ing operation, and changes in re- of an immediate family living in the lated legal entities. same household and operated as a sin- (a) Land that is properly constituted gle farming unit shall be considered as as a farm shall not be reconstituted if:

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(1) The reconstitution request is (3) Trusts in which the beneficiaries based upon the formation of a newly and trustees are family members living established legal entity which owns or in the same household. operates the farm or any part of the (d) Application of the provisions of farm and the county committee deter- paragraph (c) of this section shall not mines there is not a substantive limit or affect the application of para- change in the farming operation; graphs (a) and (b) of this section. (2) The county committee determines that the primary purpose of the re- § 718.206 Determining farms, tracts, quest for reconstitution is to: and base acres when reconstitution is made by division. (i) Obtain additional benefits under one or more commodity programs; (a) The methods for dividing farms, (ii) Avoid damages or penalties under tracts, and base acres are, in order of a contract or statute; precedence: Estate, designation by landowner, cropland, and default. The (iii) Correct an erroneous acreage re- proper method will be determined on a port; or crop-by-crop basis. (iv) Circumvent any other program (b) The estate method for reconstitu- provisions. In addition, no farm shall tion is the pro-rata distribution of base remain as constituted when the county acres for a parent farm among the committee determines that a sub- heirs in settling an estate. If the estate stantive change in the farming oper- sells a tract of land before the farm is ation has occurred which would require divided among the heirs, the base acres a reconstitution, except as otherwise for that tract will be determined ac- approved by the State committee with cording to paragraphs (c) through (e) of the concurrence of the Deputy Admin- this section. istrator. (1) Base acres must be divided in ac- (b) In determining whether a sub- cordance with a will, but only if the stantive change has occurred with re- county committee determines that the spect to a farming operation, the coun- terms of the will are such that a divi- ty committee shall consider factors sion can reasonably be made by the es- such as the composition of the legal en- tate method. tities having an interest in the farming (2) If there is no will or the county operation with respect to management, committee determines that the terms financing, and accounting. The county of a will are not clear as to the division committee shall also consider the use of base acres, the base acres will be ap- of land, labor, and equipment available portioned in the manner agreed to in to the farming operations and any writing by all interested heirs or devi- other relevant factors that bear on the sees who acquire an interest in the determination. property for which base acres have (c) Unless otherwise approved by the been established. An agreement by the State committee with the concurrence administrator or executor will not be of the Deputy Administrator, when the accepted in lieu of an agreement by the county committee determines that a heirs or devisees. corporation, trust, or other legal enti- (3) If base acres are not apportioned ty is formed primarily for the purpose as specified in paragraph (b)(1) or (2) of of obtaining additional benefits under this section, the base acres must be di- the commodity programs of this title, vided as specified in paragraph (d) or the farm shall remain as constituted, (e) of this section, as applicable. or shall be reconstituted, as applicable, (c) If the ownership of a tract of land when the farm is owned or operated by: is transferred from a parent farm, the (1) A corporation having more than transferring owner may request that 50 percent of the stock owned by mem- the county committee divide the base bers of the same family living in the acres, including historical acreage that same household; has been double cropped, between the (2) Corporations having more than 50 parent farm and the transferred tract, percent of the stock owned by stock- or between the various tracts if the en- holders common to more than one cor- tire farm is sold to two or more pur- poration; or chasers.

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(1) If the county committee deter- tion. Such apportionment will be made mines that base acres cannot be di- prior to any designation of base acres vided in the manner designated by the with respect to the part that has been owner because the owner’s designation owned for 3 years or more. does not meet the requirements of (3) The designation by landowner paragraph (c)(2) of this section, FSA method may be applied, at the owner’s will notify the owner and permit the request, to land owned by an Indian owner to revise the designation to Tribal Council that is leased to two or meet the requirements. If the owner more producers for the production of does not furnish a revised designation any crop of a commodity for which of base acres within a reasonable time base acres have been established. If the after such notification, or if the revised land is leased to two or more pro- designation does not meet the require- ducers, an Indian Tribal Council may ments, the county committee will di- request that the county committee divide the base acres in a pro-rata man- vide the base acres between the appli- ner in accordance with paragraph (d) or cable tracts in the manner designated (e) of this section. by the Council. The use of this method (2) The landowner may designate a is not subject to the requirements spec- manner in which base acres are divided ified in paragraph (c)(2) of this section. by filing a signed written memorandum (d) The cropland method for recon- of understanding of the designation of stitution is the pro-rata distribution of base acres with the county committee base acres to the resulting tracts in the before the transfer of ownership of the same proportion that each resulting land. Both the transferring owner and tract bears to the cropland for the par- transferee must sign the written des- ent tract. This method of division will ignation of base acres. be used if paragraphs (b) and (c) of this (i) Within 30 days after a prescribed section do not apply. form, letter, or notice of base acres is (e) The default method for recon- issued by FSA following the reconstitution is the separation of tracts stitution of a farm but before any sub- from a farm with each tract maintain- sequent transfer of ownership of the ing the base acres attributed to the land, all owners in existence at time of tract when the reconstitution is initi- the reconstitution request may seek a ated. different manner of base acre designa- (f) Farm program payment yields cal- tion by agreeing in writing by exe- culated for the resulting farms of a di- cuting a form CCC–517 or other des- vision may be increased or decreased if ignated form. the county committee determines the (ii) The landowner must designate method used did not provide an equi- the base acres that will be permanently table distribution considering available reduced when the sum of the base acres land, cultural operations, and changes exceeds the effective cropland plus dou- in the type of farming conducted on ble-cropped acres for the farm. the farm. Any increase in the farm pro- (iii) When the part of the farm from gram payment yield on a resulting which the ownership is being trans- farm will be offset by a corresponding ferred was owned for less than 3 years, decrease on another resulting farm of the designation by landowner method the division. of designating base acres cannot be used unless the county committee de- [80 FR 41997, July 16, 2015] termines that the primary purpose of the ownership transfer was other than § 718.207 Determining base acres when to retain or to sell base acres. In the reconstitution is made by combina- absence of such a determination, and if tion. the farm contains land that has been (a) When two or more farms or tracts owned for less than 3 years, the part of are combined for a year, that year’s the farm that has been owned for less base acres, with respect to the com- than 3 years will be considered as a bined farm or tract, as required by ap- separate farm and the base acres must plicable program regulations, will not be assigned to that farm in accordance be greater than the sum of the base with paragraph (d) or (e) of this sec- acres for each of the farms or tracts

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comprising the combination, subject to OGC means the Office of the General the provisions of § 718.204. Counsel of the United States Depart- (b) [Reserved] ment of Agriculture. SED means, for activities within a [80 FR 41998, July 16, 2015] particular state, the State Executive Director of the United States Depart- Subpart D—Equitable Relief From ment of Agriculture, FSA, for that Ineligibility state. [67 FR 66307, Oct. 31, 2002, as amended at 80 SOURCE: 67 FR 66307, Oct. 31, 2002, unless FR 41998, July 16, 2015] otherwise noted. § 718.303 Reliance on incorrect actions § 718.301 Applicability. or information. (a) This subpart is applicable to pro- (a) Notwithstanding any other law, if grams administered by the Farm Serv- an action or inaction by a participant ice Agency under chapters VII and XIV is based upon good faith reliance on the of this title, except for an agricultural action or advice of an authorized rep- credit program carried out under the resentative of an FSA county or State Consolidated Farm and Rural Develop- committee, and that action or inaction ment Act (7 U.S.C. 1921 et seq.), as results in the participant’s noncompli- amended. Administration of this sub- ance with the requirements of a cov- part shall be under the supervision of ered program that is to the detriment the Deputy Administrator, except that of the participant, then that action or such authority shall not limit the exer- inaction still may be approved by the cise of authority allowed State Execu- Deputy Administrator as meeting the tive Directors of the Farm Service requirements of the covered program, agency as provided for in § 718.307. and benefits may be extended or payments made in as specified in § 718.305. (b) Section 718.306 does not apply to a (b) This section applies only to a par- function performed under either sec- ticipant who: tion 376 of the Consolidated Farm and (1) Relied in good faith upon the ac- Rural Development Act (7 U.S.C. 1921 et tion of, or information provided by, an seq.), or a conservation program admin- FSA county or State committee or an istered by the Natural Resources Con- authorized representative of such com- servation Service of the United States mittee regarding a covered program; Department of Agriculture. (2) Acted, or failed to act, as a result (c) The relief provisions of this part of the FSA action or information; and cannot be used to extend a benefit or (3) Was determined to be not in com- assistance not otherwise available pliance with the requirements of that under law or not otherwise available to covered program. others who have satisfied or complied (c) This section does not apply to with every eligibility or compliance re- cases where the participant had suffi- quirement of the provisions of law or cient reason to know that the action or regulations governing the program information upon which they relied benefit or assistance. was improper or erroneous or where [67 FR 66307, Oct. 31, 2002, as amended at 80 the participant acted in reliance on FR 41998, July 16, 2015] their own misunderstanding or mis- interpretation of program provisions, § 718.302 Definitions and abbrevia- notices or information. tions. [80 FR 41998, July 16, 2015] In addition to the definitions provided in § 718.2 of this part, the fol- § 718.304 Failure to fully comply. lowing terms apply to this subpart: (a) When the failure of a participant Covered program means a program to fully comply with the terms and specified in § 718.301 of this subpart. conditions of a covered program pre- FSA means the Farm Service Agency cludes the providing of payments or of the United States Department of Ag- benefits, relief may be authorized as riculture. specified in § 718.305 if the participant

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made a good faith effort to comply (3) The determination was modified fully with the requirements of the cov- by the Administrator, FSA, or in the ered program. case of CCC programs conducted under (b) This section only applies to par- Chapter XIV of this title, the Execu- ticipants who are determined by FSA tive Vice President, CCC; or to have made a good faith effort to (4) The participant knew or had rea- comply fully with the terms and condi- son to know that the determination tions of the covered program and have was erroneous. performed substantial actions required (b) Should an erroneous determina- for program eligibility. tion become final under the provisions of this section, the erroneous decision [80 FR 41998, July 16, 2015] will be corrected according to para- § 718.305 Forms of relief. graph (c) of this section. (1) If, as a result of the erroneous de- (a) The Administrator of FSA, Execu- cision, payment was issued, no action tive Vice President of CCC, or their will be taken by FSA, CCC, or a State designee, may authorize a participant or county committee to recover un- in a covered program to: earned payment amounts unless one or (1) Retain loans, payments, or other more of the exceptions in paragraph (a) benefits received under the covered of this section applies; program; (2) If payment was not issued before (2) Continue to receive loans, pay- the error was discovered, the payment ments, and other benefits under the will not be issued. FSA and CCC are covered program; under no obligation to issue payments (3) Continue to participate, in whole or render decisions that are contrary or in part, under any contract executed to law or regulation. under the covered program; (c) FSA and CCC will modify and cor- (4) In the case of a conservation pro- rect determinations when errors are gram, re-enroll all or part of the land discovered. As specified in paragraph covered by the program; and (b) of this section, FSA or CCC may be (5) Receive such other equitable re- precluded from recovering unearned lief as determined to be appropriate. payments that issued as a result of the (b) As a condition of receiving relief erroneous decision. FSA or CCC’s in- under this subpart, the participant ability to recover or demand refunds of may be required to remedy their fail- unearned amounts as specified in para- ure to meet the program requirement, graph (b) will only be effective through or mitigate its affects. the year in which the error was found and communicated to the participant. § 718.306 Finality. [67 FR 66307, Oct. 31, 2002, as amended at 80 (a) A determination by an FSA State FR 41998, July 16, 2015] or county committee (or employee of such committee) becomes final on an § 718.307 Special relief approval au- application for benefits and binding 90 thority for State Executive Direc- days from the date the application for tors. benefits has been filed, and supporting (a) General nature of the special au- documentation required to be supplied thority. Notwithstanding provisions in by the producer as a condition for eligi- this subpart providing supervision and bility for the particular program has relief authority to other officials, an been filed, unless any of the following SED, after consultation with and ap- exceptions exist: proval from OGC but without further (1) The participant has requested an review by other officials (other than administrative review of the deter- the Secretary) may grant relief to a mination in accordance with part 780 of participant under the provisions of this chapter; §§ 718.303 through 718.305 as if the SED (2) The determination was in any way were the final arbiter within the agen- based on erroneous, innocent, or pur- cy of such matters so long as: poseful misrepresentation; false state- (1) The program matter with respect ment; fraud; or willful misconduct by to which the relief is sought is a pro- or on behalf of the participant; gram matter in a covered program

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which is operated within the State the limitations of this section. Absent under the control of the SED; such a report, relief will not be consid- (2) The total amount of relief which ered to have been made under this sec- will be provided to the participant tion. (that is, to the individual or entity (c) Additional limits on the authority. that applies for the relief) by that SED The authority provided under this sec- under this special authority for errors tion does not extend to: during that year is less than $20,000 (in- (1) The administration of payment cluding in that calculation, any loan limitations under part 1400 of this amount or other benefit of any kind chapter (§§ 1001 to 1001F of 7 U.S.C. 1308 payable for that year and any other et seq.); year); (2) The administration of payment (3) The total amount of such relief limitations under a conservation pro- which has been previously provided to gram administered by the Secretary; or the participant using this special au- (3) Highly erodible land and wetland thority for errors, as calculated above, conservation requirements under sub- is not more than $5,000; titles B or C of Title XII of the Food (4) The total amount of loans, pay- Security Act of 1985 (16 U.S.C. 3811 et ments, and benefits of any kind for seq.) as administered under 7 CFR part which relief is provided to similarly 12. situated participants by an SED for er- (d) Relief may not be provided by the rors for any year under the authority SED under this section until a written provided in this section, as calculated opinion or written acknowledgment is above, is not more than $1,000,000. obtained from OGC that grounds exist (b) Report of the exercise of the power. for determination that requirements A grant of relief shall be considered to for granting relief under § 718.303 or be under this section and subject to the § 718.304 have been met, that the form special finality provided in this section of relief is authorized under § 718.305, only if the SED grants the relief in and that the granting of the relief is writing when granting the relief to the within the lawful authority of the party who will receive the benefit of SED. such relief and only if, in that docu- (e) Relation to other authorities. The ment, the SED declares that they are authority provided under this section exercising that power. The SED must is in addition to any other applicable report the exercise of that power to the authority that may allow relief. Deputy Administrator so that a full ac- [67 FR 66307, Oct. 31, 2002, as amended at 80 counting may be made in keeping with FR 41998, July 16, 2015]

SUBCHAPTER C [RESERVED]

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