16 USC 3821 - Program ineligibility

U.S Code last checked for updates: May 21, 2024

§ 3821.

Program ineligibility

(a)

Production on converted wetland

Except as provided in this subchapter and notwithstanding any other provision of law, any person who in any crop year produces an agricultural commodity on converted wetland, as determined by the Secretary, shall be—

(1)

in violation of this section; and

(2)

ineligible for loans or payments in an amount determined by the Secretary to be proportionate to the severity of the violation.

(b)

Ineligibility for certain loans and payments

If a person is determined to have committed a violation under subsection (a) during a crop year, the Secretary shall determine which of, and the amount of, the following loans and payments for which the person shall be ineligible:

(1)

Contract payments under a production flexibility contract, marketing assistance loans, and any type of price support or payment made available under the Agricultural Market Transition Act [7 U.S.C. 7201 et seq.], the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.), or any other Act.

(2)

A loan made or guaranteed under the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) or any other provision of law administered by the Consolidated Farm Service Agency,1

 See Change of Name note below.

if the Secretary determines that the proceeds of the loan will be used for a purpose that will contribute to conversion of a wetland (other than as provided in this subchapter) to produce an agricultural commodity.

(3)

During the crop year:

(A)

A payment made pursuant to a contract entered into under the environmental quality incentives program under subpart A of part IV of subchapter IV.

(B)

A payment under any other provision of subchapter IV.

(C)

A payment under section 2201 or 2202 of this title.

(D)

A payment, loan, or other assistance under section 1003 or 1006a of this title.

(c)

Ineligibility for crop insurance premium assistance

(1)

Requirements

(A)

In general

(B)

Applicability

Ineligibility under this subsection shall—

(i)

only apply to reinsurance years subsequent to the date of a final determination of a violation, including all administrative appeals; and

(ii)

not apply to the existing reinsurance year or any reinsurance year prior to the date of the final determination.

(2)

Conversions

(A)

In general

(B)

New conversions

In the case of a wetland that the Secretary determines was converted after February 7, 2014—

(i)

the person shall be ineligible to receive crop insurance premium subsidies in subsequent reinsurance years unless the Secretary determines that an exemption pursuant to section 3822 of this title applies; or

(ii)

for any violation that the Secretary determines impacts less than 5 acres of an entire farm, the person may pay a contribution in an amount equal to 150 percent of the cost of mitigation, as determined by the Secretary, to the fund described in section 3841(f) of this title for wetland restoration in lieu of ineligibility to receive crop insurance premium assistance.

(C)

Prior conversions

(D)

Conversions and new policies or plans of insurance

In the case of an agricultural commodity for which an individual policy or plan of insurance is available for the first time to the person after February 7, 2014—

(i)

ineligibility shall apply only to conversions that take place after the date on which the policy or plan of insurance first becomes available to the person; and

(ii)

the person shall take such steps as the Secretary determines appropriate to mitigate any prior conversion in a timely manner but not to exceed 2 reinsurance years.

(3)

Limitations

(A)

Mitigation required

(B)

Persons covered for the first time

(C)

Good faith

(D)

Tenant relief

(i)

In general

If a tenant is determined to be ineligible for payments and other benefits under this subsection, the Secretary may limit the ineligibility only to the farm that is the basis for the ineligibility determination if the tenant has established, to the satisfaction of the Secretary that—

(I)

the tenant has made a good faith effort to meet the requirements of this section, including enlisting the assistance of the Secretary to obtain a reasonable plan for restoration or mitigation for the farm;

(II)

the landlord on the farm refuses to comply with the plan on the farm; and

(III)

the Secretary determines that the lack of compliance is not a part of a scheme or device to avoid the compliance.

(ii)

Report

(E)

Certificate of compliance

(i)

In general

(ii)

Timely evaluation

The Secretary shall evaluate the certification in a timely manner and—

(I)

a person who has properly complied with certification shall be held harmless with regard to eligibility during the period of evaluation; and

(II)

if the Secretary fails to evaluate the certification in a timely manner and the person is subsequently found to be in violation of this subsection, ineligibility shall not apply to the person for that violation.

(iii)

Equitable contribution

(I)

In general

If a person fails to notify the Secretary as required and is subsequently found to be in violation of this subsection, the Secretary shall—

(aa)

determine the amount of an equitable contribution to conservation by the person for the violation; and

(bb)

deposit the contribution in the fund described in section 3841(f) of this title.

(II)

Limitation

(4)

Duties of the Secretary

(A)

In general

(B)

Responsibility

(C)

Limitation

(d)

Wetland conversion

(1)

In general

(2)

Duty of the Secretary

(e)

Prior loans

(f)

Wetland

(Pub. L. 99–198, title XII, § 1221, Dec. 23, 1985, 99 Stat. 1507; Pub. L. 101–624, title XIV, § 1421(b), Nov. 28, 1990, 104 Stat. 3572; Pub. L. 102–237, title II, § 204(3), Dec. 13, 1991, 105 Stat. 1855; Pub. L. 102–552, title III, § 308(a), Oct. 28, 1992, 106 Stat. 4116; Pub. L. 104–127, title III, § 321, Apr. 4, 1996, 110 Stat. 986; Pub. L. 107–171, title II, § 2002(b), May 13, 2002, 116 Stat. 233; Pub. L. 113–79, title II, § 2611(b), Feb. 7, 2014, 128 Stat. 763; Pub. L. 115–334, title II, §§ 2101, 2301(d)(1)(B), Dec. 20, 2018, 132 Stat. 4530, 4553.)

cite as: 16 USC 3821