The Short-Term (or Pre-Agreement) Contract

PURPOSES.— The Secretary may provide payments to private landowners or operators, and cover expenses incurred by the organization or contracting agency that will oversee an agreement, while baseline data is gathered, documents are prepared and the formal agreement is being negotiated. The Secretary may use a short-term service contract to pay for all technical services required to establish an agreement, and to compensate landowners for time and materials in providing baseline data, and for implementing an initial set of recommended practices, as recommended by the contracting agency. These contracts may be used to establish a Stewardship Agreement, or any other type of conservation program, permit or agreement on private land. Such contracts may be used during a two-year planning period, which may be extended for up to two additional periods of six months each by mutual agreement between the Secretary, the contracting agency and the owner or operator.

A short-term contract helps prevent delays and provide immediate income to interested owners/operators and funding to the contracting agency.

Landowners wishing to establish a conservation program on their property may be unwilling or unable to wait two or three years -- or more -- for agencies to dedicate the staff time and resources to complete field work and negotiate a Stewardship Agreement. Valuable natural resources can be lost due to economic forces that force a landowner to intensify production or sell property before an agreement can be negotiated.  

The short-term contract would provide:

This planning period could be extended for additional periods of six months each at the request of either party if all the necessary documentation has not been completed or if the landowner and/or his family or heirs need additional time to study the documentation for the Stewardship Agreement.  

1. Broad definition of management goals.

    

2. Pledge of cooperation between the parties.

    

3. General locations and acreages of the property designated as the "conservation premises," areas to be maintained in low impact uses and the types of uses practiced on the balance of the property.

    

4. Initial list of recommended management practices to be carried out, based on the U.S. Department of Agriculture, Natural Resources Conservation Service Field Manual and other applicable best management guidelines.

    

5. Respective responsibilities of landowner and contracting agency in executing a Stewardship Agreement.

    

6. Proposed schedule.

    

7. Fee to be paid to landowner for stewardship activities carried out on "conservation premises," at an annual, agreed-on per acre fee for the two-year duration of the provisional contract. 

   Landowners would be paid annually, with the first payment due upon contract execution and the second payment due upon the contract's anniversary date.

   Payments would be 50 percent of the anticipated annual per acre fees under a fully executed Stewardship Agreement. The reduced payment would encourage landowners to negotiate in good faith, to make their best effort to provide reasonable access to their property and to respond promptly to all information requests, so that a Stewardship Agreement can be put in place as expeditiously as possible.

    

8. Fees paid to contracting agency to:
   
   • conduct field surveys,
   • compile data,
   • assemble programs,
   • request adjustments in existing programs to accommodate unique local conditions,
   • prepare documents, and
   • negotiate the Stewardship Agreement.

   This fee would be determined by the Secretary and  would be transferred to the contracting agency upon execution of the short-term contract.

    

9. List of other cooperating agencies, institutions and organizations, and consultants to be retained to complete the Stewardship Agreement.

    

10. List of fees to be paid to these agencies, institutions, organizations and consultants.

    “Technical assistance” fees to be paid to agencies, institutions, organizations and consultants will represent an amount equal to 20% of amounts paid to owners/operators for financial assistance in the first year of a contract and 10% each year thereafter. These technical assistance funds will be distributed as follows:

    Initiation, assembly and execution (20% of first year funds):

    1% -- administration and coordination through the designated state agency in the State where the property is located;

    0.5% -- administration and coordination through the Natural Resources Conservation Service state office, in the State where property is located;

    0.5% -- administration and coordination through the state conservation district agency, and

    18% -- as detailed below for local technical assistance, carried out through a designated “contracting agency” and subcontractors chosen by and working with the contracting agency for preparing and executing agreements:

    1.0% -- Introduction of concept to landowner, explanation of Stewardship Agreement, initial meetings, visits to property, presentation of "checklist  application, and negotiation of provisional contract (can be carried out as part of short-term contract) 0.5% -- Field surveys (can be carried out as part of short-term contract)   1.0% -- Compilation and correlation of all baseline data (can be carried out as part of short-term contract) 4.0% -- Preparation of draft and final conservation plan and description of recommended practices (Attachments 1 and 4; see contract 3 for list of attachments; can be carried out as part of short-term contract) 2.0% -- Program assembly and application (Attachment 11) 1.0% -- Program “adjustment” 5.0% -- Preparation of draft and final Farm Operation Document (Attachment 3) in cooperation with landowner and cooperating agencies 2.0% -- Preparation of draft and final service contact and remaining Attachments (2 and 5-10) 1.0% -- Presentation of draft and penultimate documents to landowner/ negotiation of terms 0.5% -- Execution and recording of Stewardship Agreement

    Administration, management & monitoring (10% of annual payments):

    1% -- operating expenses for the Farmland Stewardship Council to carry out its duties in cooperation with the State Technical Committees;

    2% -- administration and coordination through the designated state agency in the State where the property is located;

    1% -- administration and coordination through the Natural Resources Conservation Service state office, in the State where property is located;

    1% -- administration and coordination through the state conservation district agency, and

    5% -- as detailed below for local management & monitoring, carried out through a designated “contracting agency” and subcontractors chosen by and working with the contracting agency for monitoring, evaluating and administering agreements for their full term:

    1.0% -- Aerial fly over and  survey 1.0% -- Annual property visit and field survey 1.0% -- Evaluation of contract performance/discussions with owner/operator re: modifications, improvements, possible adjustments 1.0% -- Preparation and submission of status report 1.0% -- Communication/coordination with other agencies/organizations

     

11. Types of monitoring to be conducted to measure effectiveness of recommended management practices over duration of the provisional contract.

If the short-term contract is extended, landowner payments would be maintained for an additional six months, but only if landowners have provided reasonable access to their property and met previous deadlines. Payments would not be extended to uncooperative landowners  or those who have caused unreasonable delays that resulted in time extensions. Lump-sum payments  will be made for each six-month extension, payable within 60 days from the start of the extension.

Contracting agencies and their subcontractors and  organizations partners will receive no addition fees for contract extensions, no matter how many times the contract is extended, except for extenuating circumstances that come to light during field surveys that require additional staff and/or resources to complete documentation and design recommended practices for the proper care and maintenance --and, if necessary, restoration -- of the property, such as soil or water testing that must be conducted to determine if contamination has occurred and what remediation will be required. A special payment request and justification will be required to obtain additional funds to cover costs that arise due to extenuating circumstances.

Either party may terminate the short-term contract for any reasonable cause upon 60 days written notice to the other party. If the contracting agency terminates the contract, the landowner may retain all fees that have been paid. The agency, however, must return all unused fees, as determined on a prorated basis, to the Secretary. If the landowner terminates the contract, then both the landowner and contracting agency must return all unused fees, based on a prorated basis.