§ 1414.11 - Agreements.

(a) A producer shall enter into an agreement with CCC for a period of not less than 3 years nor more than 5 years, which may be renewed upon mutual agreement between CCC and the producer.

(b) Eligible producers may offer to enter into an agreement for any or all CAB's on the farm with CCC by executing such agreement and submitting it to the county FSA office where the records for the farm are maintained not later than a date specified in the announcement of the annual acreage reduction program.

(c) The agreement shall provide that producers on the farm must agree to devote to a resource-conserving crop, on the average through the life of the agreement, not less than 20 percent of each CAB on a farm enrolled under such program.

(d) The agreement shall provide that producers on the farm shall comply with the terms and conditions of any annual acreage reduction program in effect for each CAB on a farm contracted in IFM.

(e) The agreement shall contain such other provisions as CCC determines appropriate to carry out the program established by this part.

(f) The agreement shall provide for payment of liquidated damages and termination in the event that the operator or any other producers on the farm fail to comply with their obligations under the agreement.

(g) Approved agreements expiring by the crop year 1995 may be renewed once, at the option of the producer, in the crop year that such agreement expires for a period of 3, 4, or 5 years. Such agreements expiring after the 1997-crop year are not renewable.

(h) IFM agreements may be canceled by the producer before the end of the acreage reduction program signup period in the year the CCC-406 is signed.

(i) If a producer enrolls into the conservation reserve program for the current program year, in accordance with part 1410 of this chapter:

(1) The IFM agreement and the acreage reduction program agreement shall be canceled;

(2) A new IFM agreement may be filed within 15 calendar days after the date of notification to the producer of the revised CAB's, and

(3) Minimum required resource conservation crop acreage shall be recomputed using the effective CAB after the reduction of such CAB for participation in the conservation reserve program.