construction will not materially interfere with the purposes of the project.

(8) Execute amendments making additional lands subject to, or eliminating lands from, leases, cooperative and license, and other agreements made with Federal, State, or Territorial agencies involving the administration of lands.

(9) Execute leases, licenses, permits, agreements, and other forms of contracts permitting the use of, or involving the management of, lands acquired, for cropping, grazing, timber harvest, occupancy, recreation and other purposes, when consistent with the purposes of the project, provided they do not extend for more than ten years, with the right of renewal for not more than an additional period of ten years. These contracts may be entered into with individuals, partnerships, corporations, associations, districts, counties, townships, or other subdivisions of States, departments and agencies of States, colleges, universities, and other Federal agencies.

(10) Execute leases, permits, and other instruments which authorize prospecting for, or development of, mineral resources in accordance with approved departmental policy and with the procedures, instructions, and authorizations issued or granted by the Land Use Coordinator and the Director of Finance, pursuant to General Departmental Circular No. 25, dated February 15, 1944, and any amendments thereof.1

(11) Execute and file, in the name of the United States, in accordance with the laws of the State involved, applica

1 Not filed with the Division of the Federal Register.

tions, notices of appropriation, and other required instruments for the acquisition of water rights covering waters to be impounded, impeded or diverted in their flow, by construction of work contemplated in connection with, or to be used in, the development and administration of a project.

(12) Compromise claims and obligations which are not in excess of $500 and adjust and modify the terms of leases, agreements, permits, and other contracts executed in accordance with the foregoing authority, including contracts resulting from the exercise of options, as circumstances may require.

(13) Exercise all powers to revoke, terminate, or cancel contracts executed in accordance with the foregoing authority, or under which the United States has acquired, or may hereafter acquire, rights or obligations by virtue of the acquisition of property in the administration of the Land Conservation and Land Utilization Program, which are exercisable either by the terms of the contracts themselves or by operation of law.

(b) Submission of forms to Solicitor. All forms for leases, licenses, easements, agreements, use permits, etc., shall be submitted to the Office of the Solicitor for approval.

(c) Powers reserved to Administrator. All authority in connection with this part not expressly delegated herein is hereby reserved to the Administrator. (50 Stat. 522, 56 Stat. 725; 7 U.S.C. and Sup., 1000-1029. E.O. 9280, 9322, 9334, 3 CFR Cum. Supp., and E.O. 9392, 3 CFR 1943 Supp.) [Reg., Nov. 11, 1944, 9 F.R. 13547]

CODIFICATION: In § 701.401 (b) (2) (ii), the first sentence was amended to read as set forth above; in paragraph (e) (1), the first sentence in the sixth undesignated paragraph was amended; and in paragraph (f) (2) the first sentence in the third undesignated paragraph was amended, by ACP-1943-23, Assistant War Food Administrator, Jan 1, 1944, 9 F.R. 49.

§ 701.405 Production practice goals, allowances, practices, and rates of payment.

(e) Farm production practice allow

(3) Farms in the Northeast Region. In the Northeast Region a production practice allowance will be established only for farms on which in 1942 there are at least 5 animal units, at least 300 pullets raised, at least 3 acres of vegetables, potatoes, tobacco, small fruits and commercial orchards, or at least 10 acres of cropland and commercial orchards, or for which a net deduction was computed under the 1942 program for failure to apply conservation materials furnished for use under the 1942 program. * [First sentence amended May 20, 1944, 9 F.R. 5397]

(i) *

*

SOUTH CAROLINA

(i) The allowance for the construction of standard terraces furnished as a conservation service for which proper outlets are provided in Chesterfield, Greenwood, Lexington, and Spartanburg Counties shall be the extent of the practice times the approved rate therefor.

(ii) The allowance for other practices shall be the sum of the following:

(a) 50 cents per acre of cropland on the farm.

(b) $1.50 per acre of commercial vegetables grown on the farm in 1942 where the acreage was 3 acres or more.

(c) $2.00 per acre of commercial orchards on the farm in 1942. [As amended Dec. 31, 1944, 9 F.R. 491

Subpart-1944

AUTHORITY: §§ 701.501 to 701.513, inclusive, issued under 49 Stat. 1148; 16 U.S.C. 590g590q.

SOURCE: §§ 701.501 to 701.513, inclusive, contained in ACP-1944, Assistant War Food Administrator, Feb. 9, 1944, 9 F.R. 1587, 2138.

§ 701.501 Distribution of funds-(a) State funds. Funds available for conservation practices will be distributed among States on the basis of (1) the acreage of cropland, noncrop pasture land and rangeland, (2) conservation needs, (3) materials and facilities available for carrying out conservation practices, and (4) use of cropland in 1944.

(b) Adjustments. If the total estimated earnings under the program exceed the total funds available for payment, payments will be reduced equitably in States where the estimated earnings exceed the amount available for use in the State.

§ 701.502 Conservation practice allowances, practices and rates of payment-(a) Farm allowances-(1) Farm allowances for one or more practices. Farm allowances for one or more practices may be established in any State or area within a State upon the recommendation of the State committee and regional director and the approval of the Agricultural Adjustment Agency for the purpose of limiting payments, materials or services to the available funds. Farm allowances shall be based upon factors which will provide for the equitable distribution of payments, materials and services among farms, on the basis of

individual farm conservation and production needs.

(2) Combination of farm allowances. Producers in any local area may agree in writing, with approval of the State committee, to perform designated amounts of practices which the State committee determines are necessary to conserve or improve the agricultural resources of the community, and where applicable, to combine all or any part of their farm allowances for this purpose. For purposes of payment, practices carried out under such an approved written agreement will be regarded as having been carried out on the farms of the producers who performed the practices.

(b) Conservation practices—(1) Basis for approval. In any State or area the conservation practices for which payment will be made shall be those practices which are recommended by the State committee and regional director and approved by the Agricultural Adjustment Agency as practices best adapted to achieve sound soil and water conservation and use, which will not be carried out in desired volume unless payment is made therefor and which will result in immediate increases in production of agricultural commodities required in the war effort. Practices to be approved will include only those which maintain or increase soil fertility; control and prevent soil erosion caused by wind or water; encourage conservation and better agricultural use of water; or conserve and increase range and pasture forage; and will increase the production of agricultural commodities required in the war effort. In order to encourage the performance of practices which are needed most on all farms or on groups of farms in a county, the county committee, with the approval of the State committee, may designate from the practices approved for the State or area, those practices which will be applicable on all farms or designated groups of farms in the county.

(2) Practices carried out with State or Federal aid. The total extent of any practice performed shall be reduced for purposes of payment by not less than the percentage of the total cost of the practice which the county committee determines was furnished by a State or Federal agency excluding costs represented by materials or services furnished by the Agricultural Adjustment Agency, equipment furnished by the

Soil Conservation Service, materials or services furnished by a State or political subdivision of a State or agency thereof to another agency of the same State, or other costs designated by the Chief.

(c) Rates of payment; recommendations and approval. In any area the rate of payment for carrying out any practice shall be the rate recommended by the State committee and the regional director and approved by the Agricultural Adjustment Agency. Approval of such rates shall be made in accordance with the following provisions:

(1) General provisions applicable to all rates. The rate of payment for each practice shall be determined on the basis of the estimated average cost of performing the practice, the relative need for the practice in bringing about conservation and increased production, and the familiarity of farmers with the practice.

(2) Provisions applicable to specific types of practices. (i) The rates of payment for practices which consist largely of the application of materials shall not exceed the estimated average cost of such materials determined on a farm-delivery basis.

(ii) The rates of payment for engineering and construction practices shall not exceed the estimated average cost of labor, materials, and use of equipment.

(iii) The rates of payment for other practices shall not exceed 75 percent of the estimated average cost of performing the practice, with the exception of those for which a higher rate of payment is justified on the basis of need for the practice in the area, or the lack of familiarity on the part of the farmers with the practice.

§ 701.503 Division of payments. The payment earned in carrying out practices shall be paid to the producer who carried out the practices. If more than one producer contributed to the carrying out of practices, the payment shall be divided in the proportion that the county committee determines the producers contributed to the carrying out of the practices. In making this determination, the county committee shall take into consideration the value of the labor, equipment, or material contributed by each producer toward the carrying out of each practice on a particular acreage, assuming that each contributed equally unless it is es

tablished to the satisfaction of the county committee that their respective contributions thereto were not in equal proportion.

§ 701.504 Increase in small payments. The payment computed for any person with respect to any farm shall be increased as follows:

(a) Any payment amounting to 71 cents or less shall be increased to $1.

(b) Any payment amounting to more than 71 cents but less than $1 shall be increased by 40 percent.

(c) Any payment amounting to $1 or more shall be increased in accordance with the following schedule:

§ 701.505 Payments limited to $10,000-(a) Individuals, partnerships and estates. The total of all payments made in connection with the regulations in this subpart to any individual, partnership, or estate with respect to farms, ranching units, and turpentine places located within a single State, territory, or possession, shall not exceed the sum of $10,000.

(b) Others. The total of all payments made in connection with the regulations in this subpart to any person other than an individual, partnership, or estate with respect to farms, ranching units, and turpentine places in the United States (including Alaska, Hawaii, and Puerto Rico) shall not exceed the sum of $10,000.

(c) Evasion. All or any part of any payment which has been or otherwise would be made to any person under the regulations in this subpart may be withheld or required to be refunded if he has adopted or participated in adopting any scheme or device designed to evade, or which has the effect of evading, the provisions of this section.

§ 701.506 Association expenses. No part of the payment for any farm shall be deducted for county association expenses.

§ 701.507 Conservation materials and services-(a) Availability. Liming materials, phosphate, seeds, and other farming materials or services may be furnished by the Agricultural Adjustment Agency to producers for carrying out approved practices.

(b) Deductions for materials and services. Wherever materials or services are furnished, a deduction therefor shall be made in an amount determined by the Agricultural Adjustment