2006 Agricultural Management Assistance Guidance

Maryland Supplement

This document is intended to serve as a reference for NRCS Service Center staff who implement the Agricultural Management Assistance (AMA) program in Maryland.  This handbook is not a stand-alone document.  It must be used with other NRCS references, including the National Planning Procedures Handbook, the Conservation Programs Manual, the Maryland Field Office Technical Guide and other technical and policy references.

 The objectives of AMA are to provide cost-share assistance to producers on private lands on a voluntary basis, through contracts to encourage soil conservation, reduce non point pollution of surface and ground water, air quality improvements, and at-risk species conservation.

Eligible practices for Maryland’s 2006 AMA program are related to Transition to Organic Production.  Additional practices may be available it additional funds become available. 

Participant Eligibility

To be eligible to participate in AMA, an applicant must meet all the following eligibility criteria:

• Be an agricultural producer who is engaged in production of livestock or agricultural products as defined in the Conservation Programs Manual paragraph 515.61
• Have control of the land for the term of the proposed contract. 
• Be in compliance with the provisions for protecting the interests of tenants and sharecroppers.
• Provide a tax identification number  (SSN or EIN) for each individual or entity that is eligible for payments
• For an entity, provide a list of all members of the entity and embedded entities along with each member’s Social Security Number and percentage interest. 512.21
• No Federal or State agencies are eligible for AMA

In addition, for an applicant to be considered for Maryland’s AMA program, the agricultural producer must certify that a minimum of $1,000 or more of agricultural products has been produced and sold on the applicants farming operations.  If the applicant was not able to produce at least $1,000 worth of agricultural products in the last year due to drought or other natural occurrences, then production during at least 2 out of the last 5 years will suffice.  If there is any question concerning a person’s status as an agricultural producer, NRCS will required the applicant to provide a copy of IRS Schedule F to document gross income from agricultural production.  If the producer is a documented beginning farmer, NRCS may accept other records of gross farm sales in lieu of IRS Schedule F.

To apply for the AMA program, applicants must submit a signed and dated form CCC-1200, Conservation Program Contract application, to the local NRCS office.  In addition, applicants must review and sign the contract Appendix.

NRCS field offices will:

• Make sure land eligibility determinations, including verifying that the land is not enrolled in other USDA programs that would conflict with AMA: 
• Assure compliance with provisions protecting interests of tenants and sharecroppers.

FSA is responsible for determining person eligibility. 521.12

Land Eligibility

• Eligible land is cropland, hayland, pastureland, and forestland where crops or livestock are produced. 
• Land is eligible if it is private land, public land or tribal land.
• The producer must certify that they have control of the land for the contract period.  (A deed, lease, written authorization from the landowner or historical use of the land will suffice.)
• Land under other conservation programs that provide payments is eligible, if AMA is used to treat a different resource concern or provide a higher level of treatment fir a similar natural resource concern than obtained with the other conservation program.

Cost share rates

• 75 % of the cost of an individual conservation practice.
• Flat rates will be used to encourage participants to perform a land management practices.

 Contract Payment Limitations

For contracts having an appendix dated July 15, 2002 or later, (Post 2002 Farm Bill Contracts), each participant will be limited to no more than $150,000 in cost –share and flat rate payments.  This limitation only applies to financial assistance payments.  Participants are limited to no more than $50,000 per person for any fiscal year. 

 Contracts

New AMA contracts have a minimum contract length of five (5) years and a maximum contract length of ten (10) years. 

The participant is required to start at least one financially assisted practice within the first year of contract approval, unless a waiver is granted by the State Conservationist.

Once a contract is signed, NRCS is only obligated to pay for completed practices that are installed in the amounts and locations as specified in an approved conservation plan and in accordance with NRCS standards and specifications.  Payments are limited to practices, units, and unit costs as specified in the contract.

Changes to Contract amounts will require contract modifications, and are subject to available funds.  NRCS must have sufficient information at the time of the AMA application to reasonable estimate all system requirements and the total dollar amounts needed for the AMA complications.  If insufficient information is available, NRCS will require that a conservation plan (which may include a Prescribed Grazing Plan) be developed before an application is eligible for funding.  The ability to modify contracts may be significantly limited in the future.  Therefore, it is very important that NRCS have reliable information available so that all necessary components are included in the application with the correct quantities and dollar amounts.  

Participants will be expected to fully implement all cost-shared practices and components according to the schedule in the AMA contract and conservation plan.

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