Agricultural Conservation Easement Program

To establish an agricultural conservation easement program for the conservation of eligible land and natural resources through easements or other interests in the land. The Agricultural Conservation Easement Program (ACEP) is comprised of two compone

For ACEP-ALE an eligible entity that is an Indian Tribe, State government, local government, or a nongovernmental organization which has a farmland or grassland protection program that purchases agricultural land easements for the purpose of protecting agriculture use and related conservation values, including grazing uses and related conservation values, by limiting conversion to nonagricultural uses of the land, and that has pending offers may apply for funds. This program is available in all 50 States, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Mariana Islands. Individual landowners must apply through the local agency or organization that handles the farmland or grassland protection program. For ACEP-WRE, private landowners, including individual landowners, partnerships, associations, corporations, estates, trusts, and other business or legal entities, and Indian tribes are eligible to apply. This program is available in all 50 States, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Mariana Islands.

All landowners applying for ACEP must be in compliance with the Wetland Compliance (WC) and Highly Erodible Land (HEL) provisions of the Farm Bill and, within the exception of fiscal year 2014, meet the Adjusted Gross Income (AGI) limitations in the Farm Bill. For ACEP-ALE, applications are submitted by an eligible entity who will be the participant in the program. For ACEP-WRE, only private landowners, partnerships, associations, corporations, estates, trusts, other business or legal entities and, Indian tribes may submit applications for easements.

ACEP is available to all 50 States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands of the United States, American Samoa, and the Commonwealth of the Northern Mariana Islands. NRCS accepts applications on a continuous basis. To participate in ACEP-ALE, entities must submit applications (Form NRCS-CPA-41, "Entity Application for an Agricultural Land Easement (ALE) Agreement" and Form NRCS-CPA-41A, "Parcel Sheet for Entity Application for an Agricultural Land Easement (ALE) Agreement") to NRCS and NRCS must determine the eligibility of the entity, the eligibility of each parcel of land offered for enrollment, and the payment eligibility of the landowners of each parcel of land. Landowners interested in participating in ACEP-WRE must apply by submitting a completed application (Form NRCS-CPA-1200, "Conservation Program Application" or successor form) and required application package materials.

The ACEP-ALE component provides funds to protect the agricultural use, including grazing, and related conservation values of eligible land through cost-share assistance to eligible entities for purchasing agricultural land easements. The Federal share for ACEP-ALE acquisition is limited to a maximum of 50 percent of the appraised fair market value of the agricultural land easement. The Chief can determine lands as Grasslands of Special Environmental Significance which authorizes a federal share of up to 75 percent of the fair market value of the agricultural land easement. ACEP-ALE are perpetual easements or maximum duration allowed by State law. A right of enforcement is incorporated in the conservation easement deed for the protection of the Federal investment. A failure of title would require the eligible entity to reimburse the United States for the Federal share of the easement value. Under ACEP-WRE, eligible landowners may offer farmed wetlands, prior converted wetlands, wetlands farmed under natural condition, former or degraded wetlands on lands that have been used or are currently being used for the production of food and fiber, including cropland, rangeland and forest production land, lands substantially altered by flooding, certain riparian areas, along with certain adjacent areas. The goal of ACEP-WRE is to achieve the greatest wetlands functions and values, along with optimum wildlife habitat on every acre enrolled in the program. Enrollment options include permanent easements, 30-year easements, or easements for the maximum duration allowed under State law, and, for acreage owned by Indian Tribes, 30-year contracts. To be eligible for participation, land must be capable of being successfully and cost-effectively restored to wetlands and associated habitats. For easement projects, landowners shall ensure the easement is superior to the rights of all others and shall agree to implement a wetland restoration plan designed to restore and maintain the easement area. Landowners must agree to a permanent retirement of crop acreage bases, allotments, and quotas to the extent that the sum of the crop acreage bases and allotments will not exceed the remaining cropland on the farm. Participating landowners receive financial assistance for the purchase of the easement and NRCS shall share the cost of carrying out the establishment conservation measures and practices, and the protection of wetland functions and values including necessary maintenance activities to the extent that the Secretary determines that cost-sharing is appropriate and in the public interest. NRCS provides financial and technical assistance to the landowner or a third party as follows: • Permanent easements: Easement duration is in perpetuity; landowners receive up to 100 percent of the cost of the easement. NRCS provides up to 100 percent of the cost for establishment and maintenance of conservation measures and practices. • 30-year easements or maximum duration allowed by State law: Easement duration is 30 years or maximum duration allowed by State law; landowners receive the equivalent of 75 percent of the value for a permanent easement and NRCS provides up to 75 percent of the eligible restoration costs. • 30-year contracts: Acreage owned by Indian Tribes can be enrolled using a 30-year contract which shall be equivalent in value to a 30-year easement. NRCS provides up to 75 percent of the eligible restoration costs. • States with an approved Exhibit E may enroll easements with reserved grazing rights. The applicable compensation provided to the landowner for these easements will be reduced by 25%. For both permanent and 30-year easements, ACEP-WRE pays for all the related costs associated with acquiring and recording the easement including recording fees, charges for title abstracts, surveys, appraisal fees, records searches, and title insurance associated with acquiring an easement. These related costs are generally not paid to participants but are provided directly to the vendor performing the service. Therefore, payments appearing on USDAspending.gov will be reflective of payments to participants and payments to vendors for services associated with restoration and management activities and administrative costs associated with acquiring and recording an easement.

ACEP-ALE - Easements must be closed within 18 months of the end of the fiscal year in which the agreement is signed. Federal funds must be disbursed within 2 to 5 years after signing the agreement. Method of awarding/releasing assistance: lump sum. Easement duration is either perpetual or the maximum duration permitted by State law. Financial assistance for easement acquisition is provided at closing. ACEP-WRE - Easement duration is either perpetual, 30-year, or the maximum duration permitted by State law. Cash easement payments will be made in a lump sum amount, or in annual installments beginning at closing. Payments for implementation of restoration practices will be made when a specific practice has been implemented by either the landowner or third party and certified by NRCS.

This program is excluded from coverage under E.O. 12372. All ACEP applicants must submit required documentation as evidence of eligibility. The land itself is evaluated and ranked in accordance with eligibility requirements and ranking criteria developed by NRCS. A programmatic environmental analysis for NEPA compliance is completed using the NRCS environmental evaluation form by the responsible federal official. Individual project selection may be made primarily at the State level by responsible NRCS officials.

ACEP-ALE / ACEP-WRE - Applications are accepted on a continuous basis by the NRCS State Offices. Applicants are required to provide general information about the location of the project, contact information for the applicant, eligibility and ownership documentation, and designate the type of enrollment desired by the applicant (i.e. permanent easement, 30-year easement or maximum allowed by State law). Applications and supporting information requirements for the application can be obtained from the State Offices of the (NRCS) and USDA NRCS home page. See www.nrcs.usda.gov. Select Programs from the menu.

ACEP-ALE - Criteria used for selecting applications include: Percent of prime, unique, and other important farmland in the parcel to be protected; protection of historical or archeological resources; protection of grazing uses and related conservation values; Percent of cropland, rangeland, grassland, historic grassland, pastureland, or nonindustrial private forest land in the parcel to be protected; Ratio of the total acres of land in the parcel to be protected to average farm size in the county; Decrease in the percentage of acreage of farm and ranch land in the county in which the parcel is located; Percent population growth and density in the county; Existence of a farm or ranch succession plan or similar plan established to address farm viability; Proximity of the parcel to other protected land and to other agricultural operations and agricultural infrastructure; Maximizing the protection of contiguous acres devoted to agricultural use; Zoning; Eligible entity's performance; Geographic regions help achieve national, State, and regional conservation goals and objectives; Diversity of natural resources to be protected; Score in the land evaluation and site assessment system or equivalent measure for grassland enrollments; the parcels support of grazing operations; protection of grassland, land that contains forbs, and shrubland at the greatest risk from the threat of conversion to uses other than grazing; and plant and animal biodiversity. ACEP-WRE - All offers are screened at both the local and State level to determine the acceptability of the application. Offers will be evaluated based on the environmental benefits and government expenditures on restoration and easement purchase and the requirement that wetland and wildlife functions and values benefits be maximized. Criteria for selecting applications include: The conservation benefits of obtaining an easement or other interest in the land; The cost effectiveness of each easement so as to maximize the environmental benefits per dollar expended; Whether the landowner or another person is offering to contribute financially to leverage Federal funds; The extent to which the purposes of this part would be achieved on the land; The productivity of the land; The on-farm and off-farm environmental threats if the land is used for the production of agricultural commodities; Obtaining permanent easements over shorter term easements; and Acquiring easements based on the value of the easement for protecting and enhancing habitat for migratory birds and other wetland-dependent wildlife or improving water quality, in coordination with U.S. Fish and Wildlife Service at the local level, as may be appropriate. NRCS, in consultation with the State Technical Committee, may place higher priority on certain land types or geographic regions of the State where restoration of wetlands may better achieve State and regional goals and objectives. Priority may also be given to land that is currently enrolled in the Conservation Reserve Program (CRP) in a contract that is set to expire within one year from the date of application and is farmed wetland and adjoining land that has the highest wetland functions and values and is likely to return to production after the land leaves CRP.

NRCS will rank parcels individually and award funding to the highest-ranked parcels based on ranking criteria established by NRCS in consultation with the State Technical Committee. The ranking factors are developed based on national and state criteria and priorities. NRCS conducts preliminary due diligence activities on the projects tentatively selected for funding and applicants are provided an offer of enrollment. Projects are enrolled in ACEP through agreements signed by NRCS and the eligible entity under ACEP-ALE or the landowner under ACEP-WRE.

Within a Federal fiscal year (October 1 - September 30), based on funding availability, States establish a single or multiple application batching periods for consideration of current year funding. Eligible entity or landowner applications may remain on sign-up list for subsequent funding consideration.

Lands enrolled in 30-year easements, less-than perpetual easements limited by State law, and 30-year contracts under ACEP-WRE may be re-enrolled in a future sign-up after the original easement expires, unless the land or landowner is ineligible.

Applicants or participants may appeal certain determinations regarding this program in accordance with 7 CFR Part 614 and Parts 11 and 780.