ent conserving base may be established for alternate years where necessary to reflect an established summer fallow rotation system. To be considered as being devoted to a conserving use, cropland must be used in such a way as to meet the conserving base acreage requirement under the 1963 wheat stabilization program. The acreage devoted to conserving uses for purposes of meeting the conserving base acreage requirement shall be in addition to any acreage devoted to conserving uses for which payment is made under any other Federal program except the Agricultural Conservation and Great Plains programs. (b) The acreage of cropland devoted to conserving uses on the farm or ranch for purposes of meeting the conserving acreage requirement on land other than the designated acreage may be less than the 1959-1960 average of conserving uses by an acreage equal to that part of the designated acreage which is diverted from the production of tame hay or from summer fallow, or from row crops or small grain crops in excess of the amount by which the cropland in the farm exceeds the conserving base. (c) Noncropland on the farm or ranch may not be broken out during any year of the period covered by the agreement unless the breaking out of noncropland is approved by the county committee as a good farming practice. Where an acreage of noncropland is broken out with the approval of the county committee, the conserving base established for the farm shall be increased by an equal acreage. (d) Notwithstanding any other provision of this section, a number of acres of cropland equal to the tobacco acreage allotment which is leased and transferred in accordance with Part 724 of this Chapter from a farm subject to a cropland conversion agreement, which might otherwise be devoted to nonconserving crops, shall be considered to be devoted to tobacco on the farm from which the allotment is leased and transferred and shall not be devoted to any other nonconserving use during the period for which the tobacco allotment is leased and transferred. [28 F.R. 1206, Feb. 7, 1963, as amended by Amdt. 2, 28 F.R. 12248, Nov. 19, 1963, Amdt. 4, 29 F.R. 6677, May 22, 1964] § 751.21 Adjustment payment. (a) Eligible land which, as determined by the Soil Conservation Service, is not suited for regular use in the production of row crops or small grain crops is not eligible for an adjustment payment. (b) Eligible land which, as determined by the Soil Conservation Service, is suited for regular use in the production of row crops or small grain is eligible for an adjustment payment. Class IV eligible land will be so identified. Eligible land other than Class IV will be divided by the county committee into at least three categories: Average, above average, or below average, according to its productivity. Additional categories may be established as authorized by the Director in areas in which variations in productivity or other conditions are such that the additional categories are needed to assure fair and equitable adjustment payments. Class IV land also may be divided in productivity categories. In dividing eligible land into these categories, the county committee will consider the productivity index for the farm or ranch and other information or knowledge it has concerning the production from the land to be placed under the program. (c) The rates of adjustment payment per acre shall be established or approved by the Deputy Administrator for each category of land. In establishing such rates the Deputy Administrator shall take into consideration the permitted uses of the designated acreage for grazing, recreational purposes, wildlife habitat, tree growing; the change in operating costs (as compared to normal farming operations); the assurance of cost-sharing assistance during the period of the agreement; the enhancement in value of the land as a result of the performance of needed practices and other phases of the program; whether the diversion is being made from the production of tame hay or from summer fallow; and other pertinent factors. The amount of the adjustment payment shall be specified in the agreement. (d) The adjustment payment shall be divided among landowners, tenants, and sharecroppers in the manner agreed upon by them as representing their respective contributions to the adjustments in land use required by the agreement, except that the county committee may refuse to accept any agreement with respect to which it considers the proposed division of the adjustment payment is not fair and equitable. The division of the adjustment payment shall be specified in the agreement. (e) The maximum adjustment payment to all persons with respect to the farm or ranch under an agreement shall be $10,000 for the entire period of the agreement. The Deputy Administrator may establish a different limit where two or more farms are combined into a farming or ranching enterprise which effectuates the purposes of the program. All or any part of any adjustment payment which otherwise would be due may be withheld or required to be refunded if any scheme or device has been adopted which is designed to evade, or which has the effect of evading, the maximum adjustment payment limitation. (f) Each person signing the agreement may choose to receive his share of the adjustment payment in the program year in which the agreement becomes effective or in five equal annual payments during the first 5 years of the agreement. (g) On farms from which all or part of the cotton allotment is transferred under the Acreage Allotment Regulations for the 1966 and Succeeding Crops of Upland Cotton, §§ 722.435 through 722.439 of this chapter, the adjustment payment made under the cropland conversion program agreement shall be handled as follows: (1) If the transferred cotton allotment acreage is greater than the acreage which could be devoted to nonconserving crops under the agreement, reduce the adjustment payment by an amount equal to the highest annual adjustment payment rate times the transferred allotment acreage in excess of the acreage which could be devoted to nonconserving crops under the agreement, or (2) if the transferred cotton allotment acreage is equal to or less than the acreage which could be devoted to nonconserving crops under the agreement, the adjustment payment shall remain unchanged. [27 F.R. 10408, Oct. 25, 1962, as amended by Amdt. 5, 31 F.R. 13531, Oct. 20, 1966] § 751.22 Forestry incentive payment. Where approved by the Deputy Administrator as necessary because the returns from forestry plantings are remote, a forestry incentive payment may be made in connection with forestry plantings. The forestry incentive payment per acre shall be established or approved by the Deputy Administrator in an amount determined to be fair and reasonable and necessary to encourage the conservation and development of forestry resources. The forestry incentive payment shall be divided among landowners, tenants, and sharecroppers in the manner agreed upon by them as representing their respective contributions to the adjustments in land use (for the period covered by the agreement and for the additional period before returns from the forestry plantings can be expected), resulting from the forestry plantings, except that the county committee may refuse to accept any agreement with respect to which it considers the proposed division of the forestry incentive payment is not fair and equitable. The division of the forestry incentive payment and the amount thereof shall be specified in the agreement. § 751.23 Cost-share payment. (a) Subject to the conditions in this subpart, cost-sharing may be authorized for practices needed during the period of the agreement to conserve and develop soil, water, forest, wildlife, and recreation resources. Except in cases where the county committee determines that the conservation and development of such resources can best be effectuated by the performance of practices on adjacent or nearby land, the practices shall be carried out on the designated acreage. Payment of the cost-shares shall be made only upon application submitted on a form prescribed by the Deputy Administrator. (b) Cost-sharing may be authorized for practices developed and approved for use under the cropland conversion program in accordance with regulations applicable to the agricultural conservation program, and for other practices needed in conserving and developing recreation resources which shall be developed and approved in a similar manner. (c) The rates of cost-sharing shall be the same as the rates of cost-sharing for comparable practices under the agricultural conservation program, except that higher rates may be approved by the Director where, due to unusual conditions affecting the land covered by the agreement, such higher rates of costsharing are needed to obtain performance of the practices. The rates of cost-sharing for practices needed in conserving and developing recreation resources shall be established or approved by the Director. The rates of costsharing shall be revised where necessary during the period covered by the agreement to reflect substantial changes in the current costs of carrying out the practices from those used in establishing the rates of cost-sharing in effect at the time the agreement was approved. The revised rates of cost-sharing shall be effective with respect to practice approvals issued after the revisions are made. (d) Practice specifications and requirements shall be the same as the practice specifications and requirements for comparable practices in the agricultural conservation program, except to the extent that the agricultural conservation program specifications and requirements are in conflict with the permitted uses of the designated acreage, and except for such modifications as are needed to effectuate the purposes of the cropland conversion program. Specifications and requirements for recreation practices shall be approved by the Director. Each practice shall be carried out in conformity with specifications and requirements which are applicable for the practice at the time the notice of practice approval is issued. (e) The Forest Service and the Soil Conservation Service shall have the same technical responsibilities for cropland conversion program practices as they have for the same or similar agricultural conservation program practices and these responsibilities shall be exercised in the same way. In addition, the Soil Conservation Service is responsible for determining whether the practices on which cost-sharing will be paid are consistent with the conservation plan for the farm or ranch. (f) The State and county committees may, in accordance with §§ 751.13 and 751.14, establish rates of cost-sharing lower than the rates authorized in paragraph (c) of this section. (g) The establishment or installation of a practice shall be deemed to include the replacement, enlargement, or restoration of practices if all of the following conditions exist: (1) Replacement, enlargement, or restoration of the practice is needed to meet the conservation problem; and (2) the failure of the original practice was not due to the lack of proper maintenance by the current operator. (h) The sharing of costs for the performance of approved conservation practices will be subject to the condition that the practices be maintained and used for the period of the agreement for the conservation purposes for which cost-sharing was authorized. In the event the foregoing condition is not met, any person receiving cost-sharing payments who is not a party to the agreement is jointly and severally responsible with the parties to the agreement for refund of such payments, provided the right to a refund of such payments accrues while such person is a producer on the farm. (i) In addition to the provisions contained in this subpart, cost-sharing payments under the 1963 cropland conversion program shall also be subject to the following regulations of the 1963 agricultural conservation program (7 CFR 701.1-701.93; 26 F.R. 6881, as amended, 27 F.R. 10523): § 701.6 Selection of practices, § 701.7 Adaptation of practices, § 701.8 Practice specifications, § 701.9 Use of liming materials and commercial fertilizers for vegetative cover, § 701.11 Rates of cost-sharing, § 701.12 Items of cost on which rates of costsharing may be based, § 701.16 Method and extent of approval, § 701.18 Repair, upkeep, and maintenance of practices, § 701.19 Pooling agreements, § 701.20 Completion of practices, § 701.23 Practices involving the establishment or improvement of vegetative cover, § 701.24 Failure to meet minimum requirements, § 701.25 Conservation materials and services, § 701.26 Practices carried out with aid from ineligible persons, § 701.27 Division of Federal cost-shares, §701.30 Persons eligible to file application for payment of Federal cost-shares, § 701.31 Time and manner of filing application and required information, (paragraph (a)), § 701.33 Compliance with regulatory measures, and § 701.38 Misuse of purchase orders. For the purposes of applying such 1963 agricultural conservation program regulations to the cropland conversion program the terms "program" and the "1963 program" shall mean the "1963 cropland conversion program" and the term "program year" shall mean the "period covered by the 1963 cropland conversion agreement." § 751.24 Appeals. (a) Any person may, within 15 days after notice thereof is forwarded to or made available to him, request the county committee in writing to reconsider any recommendation or determination affecting his right to payment or the amount of his payment. If the person is dissatisfied with the decision of the county committee, he may, within 15 days after the decision is forwarded to or made available to him, appeal in writing to the State committee. If he is dissatisfied with the decision of the State committee, he may, within 15 days after its decision is forwarded to or made available to him, appeal to the Deputy Administrator. The decision of the Deputy Administrator shall be final. All appeals shall be considered as soon as practicable after they are filed, and prompt written notice of the decision shall be given to the appellant. Written notice of any decision shall also be issued to each other landlord, tenant, or sharecropper on the farm or ranch who may be adversely affected by the decision. (b) A request for reconsideration or appeal may be accepted and acted upon even though not filed within the time prescribed in this section if, in the judgment of the person or committee to which such request for reconsideration or appeal is made, the circumstances warrant such action. (c) The provisions of this section shall not apply to classifications as to land capability made by the Soil Conservation Service. § 751.25 Provision for handling exceptional cases. The Deputy Administrator may allow payment for performance not meeting all program requirements, where not prohibited by statute, if in his judgment such action is needed to permit a proper disposition of the case. Such action may be taken only where the farmer or rancher acted in good faith and in reasonable reliance on any instruction or commitment of any member, employee, or representative of the State or county committee in meeting his obligations under the agreement and in so doing reasonably accomplished the purposes of the agreement. The amount of the payment shall be based on the actual performance and shall not exceed the amount to which the farmer or rancher would have been entitled if the performance rendered had met all requirements. § 751.26 Reporting performance. The operator of the farm or ranch, in accordance with instructions issued by the Deputy Administrator, shall report to the county committee such information as is needed to determine the extent of compliance with the terms of the agreement. § 751.27 Access to farms and ranches and to farm and ranch records. County committeemen or their authorized representatives, or any authorized representative of the Secretary of Agriculture, shall have such access to farms and ranches and to records pertaining thereto as is necessary to make acreage determinations and to determine the extent of compliance with the terms of the agreement. § 751.28 Preservation of allotment, cropland, and crop acreage history. The cropland, crop acreage, and allotment history applicable to the designated acreage shall be preserved, for any Federal program under which such history is used as a basis for an allotment or other limitation on the production of such crop, for the period covered by the agreement and an equal period thereafter so long as the approved practice is maintained on the land. § 751.29 Harvesting the designated acreage in the event of natural disaster. Notwithstanding the provisions of § 751.19, if the Secretary determines that harvesting of hay or other forage from the designated acreage in any year is needed to alleviate a shortage of forage for use in the area resulting from severe drought, flood, or other natural disaster, the Deputy Administrator may permit such harvesting: Provided, That persons benefiting from such harvesting shall refund, or be subject to deductions from, payments to which they are otherwise entitled, in an amount determined by the Deputy Administrator to be fair and reasonable. ply fully with the terms of the agreement while he is a party to the agreement. (b) Each other person signing the agreement is jointly and severally responsible with the owner of the designated acreage for full compliance with the terms of the agreement and for any refunds or deductions for failure to comply fully with the terms of the agreement while he is a party to the agreement. § 751.32 Modification of agreement. (a) If the farm or ranch is reconstituted in accordance with the regulations governing reconstitution of farms (7 CFR Part 719, 27 F.R. 6482, as amended), because of purchase, sale, change of operation, or otherwise, the agreement shall be modified with respect to any resulting farm or ranch containing all or any part of the original designated acreage. Such modified agreement or agreements shall reflect the changes in the number of acres in any resulting farm or ranch, the designated acreage, the conserving base, interested persons, and divisions of payments. If persons who were not signatories to the original agreement are required to sign such modified agreement or agreements in accordance with § 751.15 but are not willing to become parties to the modified agreement or for any other reason a modified agreement is not entered into, adjustment and forestry incentive payments shall be forfeited in an amount computed by multiplying the total amount of adjustment and forestry incentive payments paid or payable under the agreement with respect to the designated acreage which is not continued in the program by the percentage which the unexpired period of the agreement is of the total period of the agreement, and the owner of such designated acreage prior to the reconstitution shall be responsible for refunding any part of the forfeited payments previously made, whether such payments were made to him or some other person. In addition to the forefeiture of any other payment, the owner of the designated acreage prior to the reconstitution shall be responsible for refunding all of the cost-share payments paid with respect to recreation practices on that part of the farm not continued in the program whether such payments were made to him or some other person, unless the Deputy Administrator determines that the recreation practices will be continued and used in such a manner as will accomplish the purposes of the pro gram and that a refund of a lesser amount of such cost-share payment would therefore be appropriate. (b) Except in cases in which the farm or ranch is reconstituted, if the ownership or operation of the farm or ranch changes in such a manner that the agreement no longer contains the signatures of persons required to sign the agreement in accordance with § 751.15, the agreement shall be modified to reflect the new interested persons and new divisions of payments. If such persons are not willing to become parties to the modified agreement or for any other reason a modified agreement is not entered into, adjustment and forestry incentive payments shall be forfeited in an amount computed by multiplying the total amount of adjustment and forestry incentive payments paid or payable under the agreement by the percentage which the unexpired period of the agreement is of the total period of the agreement, and the owner of such designated acreage prior to the change in ownership or operation shall be responsible for refunding any part of the forfeited payments previously made, whether such payments were made to him or some other person. In addition to the forfeiture of any other payment, the owner of the designated acreage prior to the change of ownership or operation shall be responsible for refunding all of the cost-share payments paid with respect to recreation practices, whether such payments were made to him or some other person, unless the Deputy Administrator determines that the recreation practices will be continued and used in such manner as will accomplish the purposes of the program and that a refund of a lesser amount of such cost-share payments would therefore be appropriate. (c) Upon request of the agreement signers and approval of the county committee an agreement may be modified to change or add practices, to change the election with regard to whether any remaining adjustment payment shall be made in a lump sum or in annual installments, or to make other changes which are not inconsistent with this subpart and applicable State and county supplementation. (d) Upon the request of the agreement signers, and when authorized by the Administrator, the agreement may be modified by the county committee to incorporate or reflect the provisions of |