16 U.S.C. § 3821
Section 3821 · Program ineligibility
Current version, with additions and removals from the October 28, 1992 version.
(1) as to any commodity produced during that crop year by such person—
(1) in violation of this section; and
(2) ineligible for loans or payments in an amount determined by the Secretary to be proportionate to the severity of the violation.
If a person is determined to have committed a violation under subsection (a) during a crop year, the Secretary shall determine which of, and the amount of, the following loans and payments for which the person shall be ineligible:
(B) a farm storage facility loan made under section 4(h) of the Commodity Credit Corporation Charter Act (15 U.S.C. 714b(h));
(C) crop insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.);
(D) a disaster payment made under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), under section 132 of the Disaster Assistance Act of 1989 (7 U.S.C. 1421 note), or under any similar provision enacted subsequent to August 14, 1989; or
(2) a payment made under section 4 or 5 of the Commodity Credit Corporation Charter Act (15 U.S.C. 714b or 714c) during such crop year for the storage of an agricultural commodity acquired by the Commodity Credit Corporation; or
(3) during such crop year—
(A) a payment made under section 590h, section 590l or section 590p(b) of this title;
(B) a payment made under section 2201 or section 2202 of this title;
(3) During the crop year:
(D) a payment under part II of subchapter IV of this chapter;
(E) a payment under part III of subchapter IV of this chapter; or
(B) A payment under any other provision of subchapter IV.
(D) A payment, loan, or other assistance under section 1003 or 1006a of this title.
(1) Requirements
(A) In general
If a person is determined to have committed a violation under subsection (a) or (d) during a crop year, the person shall be ineligible to receive any payment of any portion of premium paid by the Federal Crop Insurance Corporation for a plan or policy of insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) pursuant to this subsection.
(B) Applicability
Ineligibility under this subsection shall—
(i) only apply to reinsurance years subsequent to the date of a final determination of a violation, including all administrative appeals; and
(ii) not apply to the existing reinsurance year or any reinsurance year prior to the date of the final determination.
(2) Conversions
(A) In general
Notwithstanding paragraph (1), ineligibility for crop insurance premium assistance shall apply in accordance with this paragraph.
(B) New conversions
In the case of a wetland that the Secretary determines was converted after February 7, 2014—
(i) the person shall be ineligible to receive crop insurance premium subsidies in subsequent reinsurance years unless the Secretary determines that an exemption pursuant to section 3822 of this title applies; or
(ii) for any violation that the Secretary determines impacts less than 5 acres of an entire farm, the person may pay a contribution in an amount equal to 150 percent of the cost of mitigation, as determined by the Secretary, to the fund described in section 3841(f) of this title for wetland restoration in lieu of ineligibility to receive crop insurance premium assistance.
(C) Prior conversions
In the case of a wetland that the Secretary determines was converted prior to February 7, 2014, ineligibility under this subsection shall not apply.
(D) Conversions and new policies or plans of insurance
In the case of an agricultural commodity for which an individual policy or plan of insurance is available for the first time to the person after February 7, 2014—
(i) ineligibility shall apply only to conversions that take place after the date on which the policy or plan of insurance first becomes available to the person; and
(ii) the person shall take such steps as the Secretary determines appropriate to mitigate any prior conversion in a timely manner but not to exceed 2 reinsurance years.
(3) Limitations
(A) Mitigation required
Except as otherwise provided in this paragraph, a person subject to a final determination, including all administrative appeals, of a violation described in subsection (d) shall have 1 reinsurance year to initiate a mitigation plan to remedy the violation, as determined by the Secretary, before becoming ineligible under this subsection in the following reinsurance year to receive any payment of any portion of the premium paid by the Federal Crop Insurance Corporation for a policy or plan of insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
(B) Persons covered for the first time
Notwithstanding the requirements of paragraph (1), in the case of a person that is subject to this subsection for the first time solely due to the amendment made by section 2611(b) of the Agricultural Act of 2014, the person shall have 2 reinsurance years after the reinsurance year in which a final determination is made, including all administrative appeals, of a violation described in this subsection to take such steps as the Secretary determines appropriate to remedy or mitigate the violation in accordance with this subsection.
(C) Good faith
If the Secretary determines that a person subject to a final determination, including all administrative appeals, of a violation described in this subsection acted in good faith and without intent to commit a violation described in this subsection as described in section 3822(h) of this title, the person shall have 2 reinsurance years to take such steps as the Secretary determines appropriate to remedy or mitigate the violation in accordance with this subsection.
(D) Tenant relief
(i) In general
If a tenant is determined to be ineligible for payments and other benefits under this subsection, the Secretary may limit the ineligibility only to the farm that is the basis for the ineligibility determination if the tenant has established, to the satisfaction of the Secretary that—
(I) the tenant has made a good faith effort to meet the requirements of this section, including enlisting the assistance of the Secretary to obtain a reasonable plan for restoration or mitigation for the farm;
(II) the landlord on the farm refuses to comply with the plan on the farm; and
(III) the Secretary determines that the lack of compliance is not a part of a scheme or device to avoid the compliance.
(ii) Report
The Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report concerning the ineligibility determinations limited during the previous 12-month period under this subparagraph.
(E) Certificate of compliance
(i) In general
Beginning with the first full reinsurance year immediately following February 7, 2014, all persons seeking eligibility for the payment of a portion of the premium paid by the Federal Crop Insurance Corporation for a policy or plan of insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) shall provide certification of compliance with this section as determined by the Secretary.
(ii) Timely evaluation
The Secretary shall evaluate the certification in a timely manner and—
(I) a person who has properly complied with certification shall be held harmless with regard to eligibility during the period of evaluation; and
(II) if the Secretary fails to evaluate the certification in a timely manner and the person is subsequently found to be in violation of this subsection, ineligibility shall not apply to the person for that violation.
(iii) Equitable contribution
(I) In general
If a person fails to notify the Secretary as required and is subsequently found to be in violation of this subsection, the Secretary shall—
(aa) determine the amount of an equitable contribution to conservation by the person for the violation; and
(bb) deposit the contribution in the fund described in section 3841(f) of this title.
(II) Limitation
The contribution shall not exceed the total of the portion of the premium paid by the Federal Crop Insurance Corporation for a policy or plan of insurance for all years the person is determined to have been in violation subsequent to the date on which certification was first required under this subparagraph.
(4) Duties of the Secretary
(A) In general
In carrying out this subsection, the Secretary shall use existing processes and procedures for certifying compliance.
(B) Responsibility
The Secretary, acting through the agencies of the Department of Agriculture, shall be solely responsible for determining whether a producer is eligible to receive crop insurance premium subsidies in accordance with this subsection.
(C) Limitation
The Secretary shall ensure that no agent, approved insurance provider, or employee or contractor of an agency or approved insurance provider, bears responsibility or liability for the eligibility of an insured producer under this subsection, other than in cases of misrepresentation, fraud, or scheme and device.
(1) In general
(2) Duty of the Secretary
No person shall become ineligible under paragraph (1) if the Secretary determines that an exemption under section 3822(b) of this title applies to that person.
This section shall not apply to a loan described in subsection (b) made before December 23, 1985.
The Secretary shall have, and shall not delegate to any private person or entity, authority to determine whether a person has complied with this subchapter.