Part 518 - Conservation Program
Subpart K - Contract Administration
Section MT518.106 - Recovery of Cost

A. Contract relief for 2005 CSP producers

In Fiscal Year (FY) 2004, program policy allowed for the removal of land in a Conservation Security Program (CSP) contract with no cost recovery or penalties assessed.

In FY05, the policy regarding the assessment of cost recovery or liquidated damages for the removal of landing CSP contracts changed. The FY 2005 CSP contracts include reference in the CCC-1200 Appendix that removal of land is a contract violation.

During the FY 2005 CSP informational meetings and prior to the release of the FY 2005 CSP-1200 Appendix, Montana NRCS told potential participants (based on FY04 policy) that land could be removed with no penalty. Despite the fact that participants signed the CCC-1200 Appendix, Montana NRCS feels that producers may claim “misinformation” if they are placed in contract violation for the voluntary removal of some or all of the land in the CSP contract.

Therefore, Montana NRCS will allow one (1) contract modification for each FY 2005 CSP contract that will voluntarily remove acres with no cost recovery. The option is available until October 1, 2009, (beginning of FY 2010). Montana NRCS employees will make producers aware of this option and the enforcement of potential cost recovery after five years of their contract or after the first modification that removes acres.

(440-V-CPM, Amendment MT1, Jan 2007)

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