July 22, 2009

INDIANA BULLETIN NO. 440-9-11

SUBJECT:  PGM- Grassland Reserve Program (GRP)

Purpose:  To provide the list of applications that were selected for funding under the 2009 GRP program and provide instructions on processing rental agreements and easements into contracts.

Expiration Date:  September 30, 2009

Action Required: By COB August 14 and September 1, 2009

Applications Selected:  Indiana has completed the selection of 2009 GRP applications for funding.  Thirteen rental contracts and one easement were funded.  See the attached list.  No applications were received for expiring CRP acres.

General Information: There currently is no GRP program manual.  District Conservationists will need to refer to the GRP interim final rule (attached) for guidance beyond the content of this bulletin.  GRP policy prohibits the production of crops (other than hay), vineyards, fruit trees, or other ag commodities.  Also prohibited are wind power facilities for off farm power usage.

To protect birds in significant decline, including Quail, mowing, haying, or harvesting for seed will be restricted to not more than one half of the total GRP acreage during the period from April 1^st to August 1^st.   

Rental Agreement Contracting: The Farm Service Agency (FSA) is responsible for administration of rental agreements and will notify applicants in writing of their tentative acceptance into the GRP program. Rental agreements will be contracted through the use of the AD-1153 application; the AD-1155 Conservation Plan of Operations, from Toolkit; the CCC-920, contract; and an aerial map accurately identifying the farm, tract, and fields that are enrolled in GRP. 

District Conservationists (DCs) will advise local FSA staff of the funded applications and ensure that FSA has a copy of the signed AD-1153 and AD-1155.  DCs will work with FSA to document that applicants for rental agreements who are not the owners of the land have control of the land for the duration of the rental agreement.  DCs will also work with the Area Grazing Specialist to finalize grazing or grassland management plans and provide a signed AD-1155 to FSA no later than COB August 14, 2009.

Due to software redesign, the revised form AD-1153, without reference to 30 year rentals and 30 year easements, is not yet approved for use.  Per the instructions in FSA notice GRP-18 the CCC-920, contract, can not be approved (obligated) until the revised AD-1153 is posted.  It is important that all other documents are in order and ready to go when the new AD-1153 is released as we may be approaching the obligation deadline.

Once the revised AD-1153 is released it must be signed by the applicant before the CCC-920 can be processed by FSA.  It will be important for DCs to work closely with FSA to ensure that all AD-1153’s are signed and the CCC-920s are obligated prior to COB September 1, 2009.

Easements:  NRCS is responsible for administration of easements and will notify applicants in writing of their tentative acceptance into the GRP program.  The notification letter shall advise applicants to also contact FSA as a reduction in their DCP acres may be required.  GRP easements selected for funding will have appraisals completed by an outside contractor.  Appraisal work will identify the fair market value of the unencumbered land and the value of the land as encumbered by the easement.  The difference will be the easement value.  Payments for easements will be made in a single payment unless otherwise requested by the landowner.  An Option to Purchase Agreement will be issued by NRCS to make easement offers to landowners.  If the landowner signs the Option to Purchase Agreement they are making a commitment to the program and easement funds are obligated to the contract.

GRP easements require clear title.  Items such as mineral leases, mortgages, liens, etc. will have to be cleared from the title.  Clear title is the responsibility of the landowner to resolve.  Title commitment, title policy insurance, and closing will be done through NRCS at no cost to the landowner; however, the landowner is responsible for costs incurred if they drop out after signing the Option to Purchase Agreement.  Survey work will be ordered through the landowner and paid through the landowner via reimbursement or assignment.

The contracting documents for easements will consist of the signed AD-1153, signed AD-1155, a signed Option Agreement to Purchase, the Warranty Easement Deed and Baseline Inventory documents, and an aerial map accurately identifying the farm, tract, and fields that are enrolled in GRP.  The sample GRP Warranty Easement Deed is attached and should be given to easement participants for their review.  If the Warranty Easement Deed is not acceptable to the participant they should cancel their easement application.

DCs will work with the Area Grazing Specialist to finalize grazing or grassland management plans where needed and secure a signed AD-1155 and a Baseline Inventory document no later than COB August 14, 2009.   The Baseline Inventory document will consist of an accurate and reproducible map of the easement property showing all fields, fences, existing and planned facilities.  It will also include photos of the easement property indicating current conditions, and written description of existing conditions and any planned improvements for the future.

If you have questions concerning this bulletin or the GRP interim final rules, please contact Teresah Caire, ASTC (Programs) at (317) 290-3200 Ext. 320, or Jim Dunaway, GRP Program Manager at Ext. 334.

/s/ Roger A. Kult {Acting For}

JANE E. HARDISTY

State Conservationist

Attachments (GRP rule, approved list, sample Easement Deed)

cc:  Gail Peas, Conservation Program Specialist, FSA, Indianapolis, IN

DIST: O

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