Page:United States Statutes at Large Volume 99 Part 2.djvu/402

 99 STAT. 1512

Regulations.

PUBLIC LAW 99-198—DEC. 23, 1985

(c)(l) In determining the amount of annual rental payments to be paid to owners and operators for converting highly erodible cropland normally devoted to the production of an agricultural commodity to less intensive use, the Secretary may consider, among other things, the amount necessary to encourage owners or operators of highly erodible cropland to participate in the program established by this subtitle. (2) The amounts payable to owners or operators in the form of rental payments under contracts entered into under this subtitle may be determined through— (A) the submission of bids for such contracts by owners and operators in such manner as the Secretary may prescribe; or (B) such other means as the Secretary determines are appropriate. (3) In determining the acceptability of contract offers, the Secretary may— (A) take into consideration the extent of erosion on the land that is the subject of the contract and the productivity of the acreage diverted; (B) where appropriate, accept contract offers that provide for the establishment of— (i) shelterbelts and windbreaks; or (ii) permanently vegetated stream borders, filter strips of permanent grass, forbs, shrubs, and trees that will reduce sedimentation substantially; (C) establish different criteria in various States and regions of the United States to determine the extent to which erosion may be abated; and (D) give priority to offers made by owners and operators who are subject to the highest degree of economic stress, such as a general tightening of agricultural credit or an unfavorable relationship between production costs and prices received for agricultural commodities. (d)(1) Except as otherwise provided in this section, payments under this subtitle— (A) shall be made in cash or in commodities in such amount and on such time schedule as is agreed on and specified in the contract; and (B) may be made in advance of determination of performance. (2) If such payment is made with in-kind commodities, such payment shall be made by the Commodity Credit Corporation— (A) by delivery of the commodity involved to the owner or operator at a warehouse or other similar facility located in the county in which the highly erodible cropland is located or at such other location as is agreed to by the Secretary and the owner or operator; (B) by the transfer of negotiable warehouse receipts; or (C) by such other method, including the sale of the commodity in commercial markets, as is determined by the Secretary to be appropriate to enable the owner or operator to receive efficient and expeditious possession of the commodity. (3) If stocks of a commodity acquired by the Commodity Credit Corporation are not readily available to make full payment in kind to the owner or operator, the Secretary may substitute full or partial payment in cash for payment in kind. (e) If an owner or operator who is entitled to a payment under a contract entered into under this subtitle dies, becomes incompetent,

�