PURPOSE: This rule describes terms used by the Agricultural and Small Business Development Authority in administering the Conservation Reserve Enhancement Program.

1. (1) Terms not otherwise defined in this rule shall have the meanings given them in sections 348.005–348.180, RSMo (1986) or in the participation and loan purchase agreement as described in these rules and the resolution of the authority adopted on August 18, 1989 (the master resolution) authorizing the issuance of a series of agricultural development revenue bonds (Conservation Reserve Enhancement Program) (the bonds).

   1. (A) Act means sections 348.005–348.180, RSMo (1986).
   2. (B) Agricultural development loan means a loan for the financing or refinancing of the acquisition, construction, improvement or rehabilitation of agricultural property.

   3. (C) Agricultural property means any land and easements and depreciable real and personal property, including, but not limited to, buildings, structures, improvements, equipment and livestock which is used or is to be used in Missouri by Missouri residents for—

      1. 1. Operating a farm or ranch;
      2. 2. Planting, cultivating or harvesting

cereals, natural fibers, fruits, vegetables or trees; 2 CSR 100-3

1. 3. Grazing, feeding or the caring of live-

stock, poultry or fish;

1. 4. Producing dairy products;
2. 5. Storing, transporting or processing

farm and ranch products, including, without limitation, facilities such as grain elevators, cotton gins, shipping heads, livestock pens, warehouses, wharfs, docks, creameries or feed plants; and

1. 6. Supplying and conserving water,

draining or irrigating land, collecting, treating and disposing of liquid and solid waste or controlling pollution, as needed for the operations set out in these rules.

1. (D) Application means a completed instrument on a form approved by the authority which includes a description of the anticipated use of loan proceeds, the amount of the loan and certain certifications of the participating borrower and the participating lender.
2. (E) Application fee means the fee as set from time-to-time by the authority payable by a participating borrower to a participating lender.
3. (F) ASCS office means the office of the county Agricultural Stabilization and Conservation Service of the United States Department of Agriculture.
4. (G) Authority means the Missouri Agricultural and Small Business Development Authority organized under the provisions of the Act.
5. (H) Authority fee means the fee as set from time-to-time by the authority payable by a participating lender to the authority.
6. (I) CCC means the Commodity Credit Corporation, a wholly-owned government corporation within the United States Department of Agriculture.
7. (J) Closing documents mean the participating borrowers’ documents, the participating lenders’ documents, the closing certificates of the participating borrower(s) and the participating lender(s), evidence of the prior recording of the land use agreement and any other certification or documents as the authority may reasonably require.
8. (K) Conditional approval means a completed instrument on a form approved by the authority which includes the authority’s conditional approval of an application.
9. (L) Conservation plan means the plan bearing the same contract number as the CRP contract and applicable to the land placed in the program by the participating borrower describing the conservation practices which must be established on the land placed in the program in order for erosion on the land to be adequately controlled. The conservation plan includes Form SCS-CPA-11 and any addenda to it. The conservation plan must list the approved vegetative cover and required conservation practices necessary for the establishment and maintenance of the vegetative cover.
10. (M) CRP means the Conservation Reserve Program authorized by Title 12 of the Food Security Act of 1985 (Pub. L. No. 99-198). The CRP provisions are codified in United States Code at 16 USC 3811, including particularly The Disaster Assistance Act of 1988 (Pub. L. No. 100-387) and any rules promulgated with respect to it, including particularly 7 CFR 704.
11. (N) CRP contract means Forms CRP-1, CRP-1A (Addendum), CRP-1 (Appendix), CRP-1b (Addendum), CRP-15, the applicable conservation plan and any addenda to it entered into in writing between the CCC and a participating borrower which sets forth the terms and conditions in the program.
12. (O) CRP land means land subject to the terms and conditions of the CRP contract.
13. (P) Debt register means the register maintained by the ASCS office of debts due and owed by any participating borrower which have been reduced to claims.
14. (Q) Farm or farm land means all land which is constituted as the farm in accordance with regulations governing constitution and reconstitution of farms found at 7 CFR 719.
15. (R) Land use agreement means an agreement executed by the participating borrower in favor of the participating lender and the authority and any amendments and supplements to it providing that the CRP land will be kept by the participating borrower as CRP land in compliance with the CRP contract and granting to the authority a right of entry upon the farm and the CRP land to permit, among other things, the authority to take any steps necessary to ensure compliance.
16. (S) Loan and security agreement means an agreement between a participating borrower and a participating lender and any amendments and supplements to it providing for an agricultural development loan by a participating lender to a participating borrower and for its repayment by the participating borrower.
17. (T) Loan purchase date means the date established by the authority, acceptable to the participating lender, on which the authority shall purchase an agricultural development loan from the participating lender.
18. (U) Note means a promissory note to evidence the obligation of the participating borrower to make the repayments as defined in the loan and security agreement.
19. (V) Participating borrower means any individual, partnership, corporation, farm cooperative, association, trust, estate or other legal entity or its representative who has legal ownership of farm land, including a person who is buying farm land under a contract for deed, except that two (2) or more individuals and entities may be combined as one (1) person in accordance with the regulations found at— 1) 7 CFR 795 for administering maximum payments limitations; 2) 7 CFR 796 for administering prohibitions on controlled substances; and 3) the regulations promulgated in accordance with sections 1201—1223 of the Food Security Act of 1985 and otherwise qualifying for an agricultural development loan as set forth in these guidelines.
20. (W) Participating borrower documents mean the application, the CRP contract(s), the successor-in-interest agreement(s), evidence of approval of the conservation plan, the application fee and a copy of the debt register certified by ASCS.

21. (X) Participating lender means any state or national bank, federal land bank, production credit association, bank for cooperatives, federal or state chartered savings and loan association, or building and loan association or small business investment company that is subject to credit examinations by an agency of the state or federal government, or any life insurance company, any governmental agency or any other lending institution approved by the insurer or guarantor of an agricultural development loan, beginning farmer loan or small business pollution control facility loan which undertakes to make or service such a loan.

    1. (Y) Participating lender documents

mean a proposal to sell, the bond, the participation and loan purchase agreement, the authority fee, the note, the loan and security agreement, the guaranty, the land use agreement, consents and approval by each current lienholder and the closing documents.

1. (Z) Participation and loan purchase

agreement means an agreement between the authority and a participating lender and any amendments and supplements to it providing for participating in the program by the participating lender and for the purchase by the authority from the participating lender of an eligible agricultural development loan held by the participating lender.

1. (AA) Program means the Conservation

Reserve Enhancement Program of the authority authorized and described by the memorandum of understanding dated July 3, 1989 between the authority and CCC.

1. (BB) Proposal to sell means a complet-

ed instrument on a form approved by the authority evidencing the proposal of the participating lender to sell an agricultural development loan to the authority. Development Authority

1. (CC) Successor-in-interest agreement means Form CPID-Addendum entered into in writing between the CCC, the participating borrower(s) and the authority.

AUTHORITY: section 348.075, RSMo 1986.* Original rule filed Aug. 15, 1989, effective Oct. 27, 1989. *Original authority: 348.075, RSMo 1981, amended 1995, 1997.