INDIANA BULLETIN NO. 300-8-5

SUBJECT: LTP – Fiscal Year 2008 Conservation Security Program Annual Payments

Purpose. To provide information and instruction for Indiana employees contained in NB 300.8.2 for completing the FY 2008 CSP annual payments.

Expiration Date. September 30, 2008

Background. Public Law 107-171, Section 1238 c (2), states that the Secretary will make conservation stewardship contract payments as soon as practicable after October 1.

Explanation. Annual payment and new practice payment procedures are described in the 440Conservation Program Manual, Part 518, Section 518.84.

The annual payment for the established conservation system is to include the stewardship payment, the existing practice payment, and the established enhancement activities that have previously been applied and are a recurring part of the conservation system. The initial annual payment will not include payment for new enhancements or new practices which are not ready for certification and payment. New practices and new enhancements are to be certified and approved for payment only after they are documented as established.

CSP enhancement activities are based on the level of stewardship performed on an agricultural operation system level. Where feasible, system extents should be used as opposed to actual yearly extents. It is not expected or feasible for yearly modifications to be processed to capture the exact extent of an enhancement activity.

Because the participant agrees to maintain at least the benchmark level of treatment, changes in extent of a benchmark enhancement to a lesser amount would constitute a potential contract violation. Changes upward would constitute a contract improvement and need to be addressed during an announced contract improvement modification request period.

CSP modification buttons will be active during the annual payment process to allow changes in participant information which are critical to processing annual payments. This is not a contract improvement modification period.

Indiana has received an initial allowance of $8,424,839 for FA and $ 758,191 for TA.

The FA allocation will allow payment in full of the current FY 2008 contract obligations. TA allocations to States are provided for the explicit purpose of servicing prior year CSP contracts. States must manage their CSP TA allocation to perform the following required activities: annual reviews and quality assurance, maintenance modifications, administration of appeals and equitable relief, and processing annual payments.

DIST: 0 Contract participants will be able to receive their FY 2008 annual payment before December 31, 2007, or will be able to elect to defer the payment until after January 1, 2008. A sample letter is attached that can be sent to contract holders describing these payment options.

States are to immediately begin processing CSP FY 2008 annual payments. All FY 2008 CSP annual payments are to be processed no later than February 1, 2008.

/s/

JANE E. HARDISTY State Conservationist

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