ILLINOIS DEPARTMENT OF NATURAL RESOURCES Policy and Procedure Manual Chapter 5 Chapter 5 Subchapter E Resources Land Agricultural/Wildlife & Habitat Land Lease Management POLICY: Many Department owned or managed lands contain tillable acreage. These lands have the potential to generate revenue if used to grow agricultural products. It is the Department=s policy to minimize the use of such lands for agricultural production in favor of establishing annual or permanent wildlife habitats. However, the Department also recognizes that certain agricultural practices and farm income can provide needed resources for wildlife habitat, improving habitat diversity, developing cover and edge effect, and maintaining annual vegetative stages. Revenues or in-kind services gained as a result of such practices may only be used at the site or complex where generated to support or maintain wildlife habitat or other natural resource objectives if approved through the Site=s annual plan of work process; except that, up to 15% of the amount appropriated annually may be allocated to a Regional pool or to other Department sites, provided the transferred funds are used solely for the purposes outlined in this policy and the tenets of any state fund restrictions or federal grant requirements are strictly followed. The Agricultural Land and Wildlife Habitat Management Program will be administered by the Office of Land Management, in conjunction with the Office of Resource Conservation and in accordance with the Procedures Section of this policy. New Policy Date: Revision Date: December 1, 2009 Special Instructions: Replaces revision of November 6, 2006 which replaced revision of August 16, 2004 which replaced MC2233 dated May 19, 1989.
ILLINOIS DEPARTMENT OF NATURAL RESOURCES Policy and Procedure Manual Chapter 5 Chapter 5 Subchapter E Land Resources Agricultural/Wildlife & Habitat Land Lease Management PROCEDURE: I. Pre-Leasing Responsibilities A. Agricultural Lease Program Manager The Agricultural Lease Program Manager in the Office of Land Management will coordinate all aspects of the Agricultural Lease Program. The Manager will follow Agricultural lease and cropping recommendations provided through Section B below and will prepare the lease agreements. The Manager will be available to give assistance to Site Managers or District Resource Managers who have any questions regarding any of the planning stages of the farm leasing program. B. Cropping Plan Preparation The District Wildlife Biologist prepares a cropping plan with all necessary considerations to develop such a cropping plan. Cropping plans may include a portion of the crop left standing as part of the lease agreement. The cropping plan is subsequently provided to the District Forester, Fisheries Biologist, Restoration Ecologists and Site manager for review and comment before or during the Plan of Work (POW) Process. Once agreed upon, the District Wildlife Biologist and the Site manager submits the plan (Exhibits A and B) to the Agricultural Lease Program Manager by 01 October, with the completed Review and Approval Form (See Forms Section of this manual) for each leased property. 1. Accurate legal description of the property to be leased. 2. Aerial photographs from the local Farm Service Agency (FSA) Office, or other maps of adequate scale and quality.
3. Plat book copies with the property outlined. 4. Cropping plan, designating all fields and stating what is to be planted and by the specified date. All maps and plans must be machine reproducible. 5. Any special instructions or procedures to be followed in planting or arrangement of the fields. 6. Verification that the cropping and soil protection plan meets NRCS guidelines and meets or exceeds the Illinois Department of Agriculture's minimum "T" soil loss limits. The NRCS plan and recommendations will be kept on file at the Site Headquarters and with the Agricultural Lease Program Manager throughout the term of each Agricultural Wildlife Habitat lease. 7. Some cropping plans may be subject to the Comprehensive Environmental Review Process if they have the potential to affect listed species. Please refer to the Department=s internal Comprehensive Environmental Review process manual. II. Leasing Procedure A. Review of Proposal Upon receipt of the cropping plan from the Office of Resource Conservation, the Agricultural Lease Program Manager will prepare the lease proposal; however, no substantive changes will be made without concurrence from the District Resource Managers and the Site Manager. The standard effective lease agreement dates will begin March 1 st and will end on the last day of February. B. Basis of Rent Rent may be in the form of cash, percentage of crops, services, or combinations thereof. The District Resource Managers and the Site Manager will determine the resource priorities and expenditures subject to approval by the respective Regional Administrators. Whenever services are accepted as payment, only those identified in Section V of this procedure are allowable. Exceptions to Section V must be justified in writing and will require the approval of the Agricultural Lease Program Manager and Division of Land Management Administrator. All items requested must comply with the objectives set forth in the policy statement.
Types of services accepted as in-kind payments must be identified in the lease prior to execution. C. Bidding Process The Agricultural Lease Program Manager will determine the need for bidding the lease in accordance with the Department's administrative rules (17 IL Adm. Code 150.20) and the following guidelines: 1. Leases will be competitively bid unless the lease meets the bidding exceptions cited in the Administrative Rule. Qualified private farmers shall bid to determine the fair rent based on the proposed agricultural program, quality of the land or any other limiting factor. 2. In the event there is no interest during the competitive bidding process or a qualified bidder, the Department may appoint a tenant to farm lands, which will be done by the Agricultural Lease Program Manager with assistance from the local Site Manager and District Wildlife Biologist with prior authorization by the Office Directors of the Office of Land Management and Office of Resource Conservation. No-bid leases must be justified in writing. 3. In cases where leases have been previously bid, the option to renew the leases may be exercised. Leases may be renewed if all parties are agreeable; if acreage, crops, and rental have not been substantially changed; and if the cropping plan calls for continued agricultural use. Renewed leases must be approved by Regional Administrators prior to execution. 4. When the Department acquires land with an existing tenant, the existing tenant shall be required to provide proof of liability insurance for the duration of that contract.
D. Bidding Meeting Process Public information and bid opening dates will be set by the Agricultural Lease Program Manager with input from the Site Manager and District Wildlife Biologist. The Agricultural Lease Program Manager will provide sufficient forms for bidding. Public notice advertisements will be placed by the Site Manager in local and state newspapers fourteen days prior to the public informational meetings. In counties where the Agricultural Lease Program Manager has difficulty in acquiring qualified bidders, a notice of open bidding may also be posted in the local FSA office or a similarly conspicuous location. The Agricultural Lease Program Manager, in conjunction with the Site Manager and the District Wildlife Biologist, will conduct a public information meeting, stating the requirements of the lease and the minimum qualifications required of the bidders. A public bid opening will follow at a scheduled time and place, conducted by the Agricultural Lease Program Manager or other Department designee. E. Review of Bid Leases The Agricultural Lease Program Manager will review all bids. A recommendation for bid award will be made by the Agricultural Lease Program Manager to the Director based on the highest qualified bid submitted from all bidders who meet the required criteria set forth in the lease bid package. A Review and Approval form shall be submitted by the Agricultural Lease Program Manager to the Regional Offices of Land Management for signatures of the appropriate Regional staff. The Department shall reserve the right to reject any and all bids. After final approval of a specific bid is given, the tenant, Site Manager, District Wildlife Biologist, Regional Administrators for the Office of Land Management and Office of Resource Conservation will be notified by the Agricultural Lease Program Manager and provided a copy of the executed lease. Distribution of copies to District personnel will be the responsibility of the appropriate Regional Administrators. The Agricultural Lease Program Manager will notify the County Assessor's Office regarding the new lease to conform with local taxing requirements.
F. Execution of Agreements & Amendments All agricultural leases and amendments must be executed by the Director or his designee before it becomes official. A Review and Approval form must also be completed with the signatures of the Regional Administrators. III. Internal Compliance Control Procedures A. Field Checks Crops are to be checked for agreed-upon acreage, proper crops planted, crop condition by the Site Manager or his or her designee. If a problem is identified, the Agricultural Lease Program Manager should be notified immediately. The Agricultural Lease Program Manager will also make follow-up inspections and take any necessary action required to solve these problems following consultation with the District Wildlife Biologist and Site Manager. B. Farm Crop Yield Report Site Managers will use the Farm Crop Yield Report form (See Forms Section of this manual) on percentage leases to report the actual harvested grain figures and check on the disposition of the Department's share. After completion, both the Site Manager and tenant must sign the form, and it must then be submitted by the Site Manager to the Agricultural Lease Program Manager. All grain settlement sheets and scale tickets must be sent to the Agricultural Lease Program Manager, along with the Farm Crop Yield Report, on or before the last day of February each year. C. Methods of Payment 1. Payments may be made in cash or services (see Part V), or a combination of these items. Site managers shall determine through discussion with the tenant how payments shall be adjusted by performing specific services. Use of cash rents shall be discussed during the Plan of Work process. After agreement has been reached with the Site Manager, District and Regional Staff, the Site Manager will track the expenditure of allocations from agricultural lease rents, with final review from the Fiscal officer in the Division of Land Management. 2. All services must be delivered by the payment date
established in the lease. Otherwise, the dollar value shall be remitted in cash within 10 days of original payment date. 3. Revisions of payment dates will not be granted subsequent to execution of the lease. 4. Establishment of credit accounts as payment for leases is prohibited. 5. If cash is chosen as the method of payment, checks will be made payable to the Illinois Department of Natural Resources and sent to the Agricultural Lease Program Manager. D. Tenant Payment Report A Service Report (see Forms Section of this manual) shall be submitted by the Site Manager to the Agricultural Lease Program Manager and District Wildlife Biologist upon rent settlement. After all work items are performed, the following documents must be filed with the Agricultural Lease Program Manager: 1. Tenant Payment Report signed and dated by lessee and Site Manager, with all spaces completely filled-in, where applicable. 2. Service Work Report should be completed with number of hours/acres, type of work and cost calculated, to justify cash rent deduction. Copies of this report will be provided by the Agricultural Lease Program Manager to the Regional Resource and Lands Administrators. Distribution of copies to Districts will be the responsibility of the Regional Administrator.
E. Amendments to Agricultural Leases Any proposed changes in crops, acreage, rent or other parts of the lease agreement which are agreed upon by the Farm Tenant, Site Manager and the District Resource Managers are to be submitted to the Agricultural Lease Program Manager on the required Amendment to Lease form (See Forms Section of this manual) with District Resource Managers and Site Manager initials. These changes will be reviewed by the Agricultural Lease Program Manager for technical requirements. This agreed-upon amendment proposal will contain rationale for the proposed change and will state the amount of the amended acreage and/or the rent now due. The Amendment to Lease form and the Review and Approval form will be sent to all Regional Administrators by the Agricultural Lease Program Manager. After the Regional Administrators approve, they will sign and date the Review and Approval form and return it to the Agricultural Lease Program Manager. If they disapprove, the Agricultural Lease Program Manager will be informed and recommendations for appropriate corrective action will be provided. However, final amendments are subject to approval by the Director or his designee. Copies of the final lease amendment and the approval form will be distributed to the Site Manager, the lease tenant, the Regional Land Manager, and the District Wildlife Biologist or those Divisions directly involved. F. Annual Report By August 1st of each year, the Agricultural Lease Program Manager shall prepare for Agency management an annual report on the Department's agricultural leasing program. This report shall summarize for the previous crop year the total rents received or number of leases, acres leased, number of sites and total value of services, by type, received as lease payments. The report shall also summarize lease amendments processed in the previous year. IV. Federal Requirements A. Federally Assisted Projects Where leases are established on Department owned or managed lands acquired with Land and Water Conservation (LAWCON) Fund assistance, Pittman-Robertson (PR-Federal Aid in Wildlife Restoration) or Dingell-Johnson (DJ-Federal Aid in Sport Fish Restoration), or cooperative federal aid funded projects that are active on Department property, disposition of lease income for the life of the Federal project shall follow guidelines established by the
Federal government (current guidelines available from Federal grant administrators). The Agricultural Lease Program Manager shall inform the Department's Federal grant administrators of annual program income for subject properties, submitting an annual lease tabulation indicating the lease number, parcel number and amount of cash received. B. Tenant Participation in Federal Programs Federal subsidy programs such as Farm Service Agency (FSA) Production Adjustment or Direct & Counter-cyclical Program may benefit both the tenant and the Department. All new Federal enrollment or application forms on behalf of the tenant must be submitted to the Agricultural Lease Program Manager for approval. Once the Agricultural Lease Program Manager has verified that the Department's interests have not been compromised by the tenant's participation in the program, the enrollment or application form will be approved and forwarded to the Federal Government by the Agricultural Lease Program Manager for their involvement. Any compensation generated from all Federal Government programs will be apportioned to the Department in accordance with the same rates or rental provisions as found in the original agricultural wildlife habitat land lease document (unless specified differently by a lease amendment). If a change in the compensation is arranged differently from the present lease agreement, an approved amendment stating the difference is required to be prepared by the Site Manager and submitted along with the completed Review and Approval form to the Agricultural Lease Program Manager. Copies of subsequent agricultural leasing or crop change information which are received by the tenant or the Site Manager regarding the tenant's participation in a Federal Program should also be forwarded to the Agricultural Lease Program Manager for placement in the lease file. V. Acceptable Services in Lieu of Cash Payments All rent items are to be used on/or for the benefit of the lease site. The following service items (labor) are considered acceptable as the Department=s rent if provided directly by the tenant, using equipment listed on the equipment form of the prospective tenant=s bid packet. The Comprehensive Environmental Review Process (CERP) must be utilized for any management activity that could potentially affect threatened & endangered species-natural areas and nature
preserves, wetlands, cultural resources and, other management activity that affects soil disturbance, water flow including quality and air quality. Refer to the Department =s Comprehensive Environmental Review process manual for applicable exemptions and procedures. Application of Chemicals - purchased by the site for control of noxious, exotic and invasive weeds, vegetation control, brush and general agricultural purposes. The tenant shall provide a copy of his current valid state applicators license to Site Manager. Clearing Projects - renovation of wildlife management lands by removing brush or trees. Construction and Maintenance - of field access roads for wildlife management purposes. Installation or Maintenance of Culverts - for field access roads, water management and hunter parking lots. (Be certain all applicable permits are acquired from State, county or township jurisdictions.) Fertilizer & Agriculture Lime Application - on food plots, sunflower fields, waterfowl management fields, grass & legume and other wildlife management plantings. Field Tillage, Preparation & Planting Services - provided for wildlife food, legume and grass plantings.. Labor - for boundary fencing, to install boundary ANo Hunting@ signs and regulations signs, controlling noxious weeds or brush, for repair and maintenance of water control for wetland management programs(i.e., tubes, gates, emergency pump rental), brush-pile construction, fire and hunter access trails, removal of fences on or along crop fields and tree planting and direct seeding preparation and planting. Mowing - for specific wildlife management purposes; access, vegetation control, hunting strips and field renovation. Minor Hazard Removal - of stumps, foundations or equipment. Repair and Maintenance of Drainage Structures - (terraces, waterways, water control structures, trenches, etc.) Hauling Rock and/or Spreading of Rock - purchased by the Site Manager.
Timber Stand Improvement (TSI) - TSI labor provided by the tenant to benefit wildlife management objectives as prescribed in the wildlife management plan. Wetland Developments - labor required to construct wetlands and ponds planned and approved through the site =s annual plan of work process. VI. Acceptable Purchases by the Department The following items represent acceptable purchases by site staff using their respective farm lease allocation. All items are to be used to maintain, enhance and/or develop wildlife habitat. These expenditures must be processed through one of the annual Farm Lease appropriations managed by the Office of Land Management. All equipment or contractual purchases need to be reflected in the site=s Annual Plan of Work or approved individually by both the Regional Land Manager and the Regional Wildlife Biologist. Expenditures for a site with a federal interest must be processed using an appropriate federal Aid Program Code. Equipment purchases made with agricultural lease revenues from federal aid acquired sites and or sites with an active federal aid programs must be included on the Department=s equipment inventory as a federally funded equipment purchase. The equipment must be tagged with a Department "F" equipment inventory tag to clearly delineate that piece of equipment as purchased with federal funds. Use of federally funded equipment is limited to the purpose(s) specified under the federal aid grant for which the agricultural lease revenues were originally generated. Sites should keep records of their use of federally funded equipment to show compliance with the allowable federal aid use(s). All purchases must comply with all state and Department purchasing rules and procedures. Hunter Check Station Boxes - construction costs for check-in/check-out wooden and metal fabricated check boxes. This also includes peripheral items such as locks, hinges and other special construction needs. Specialized Clothing - specific to Nomex fire suits-pants, shirts, hats, gloves, helmet, goggles, shrouds, face shields and boots only. Waders, gloves, and other waterfowl clothing items to service waterfowl blinds, sub-impoundment work, etc., or other items needed to prepare waterfowl blinds/areas may also be purchased.
Equipment Rental(heavy) - crawler tractor, grader, trencher, backhoe, disc rental for approved wildlife management activities. Equipment Rental (light) - farm tractors and implements, small tools, light equipment for approved wildlife management activities. Fertilizer and Lime B for wildlife food plots, sunflower fields, waterfowl management fields, grass/legume plantings and other types of wildlife management purposes. Lumber - nails, screws, shingles, hardware, and other items reasonably associated with the construction, repair or maintenance of buildings used for farm equipment, fertilizer, seed or chemical storage and small hunter check stations, duck, goose and photographic blinds. Purchase of Rock - gravel or sand-for field access roads, hunter parking lots and trails specific to wildlife management objectives and the wildlife management plan. Purchase of Seeds - all cereal grain seeds, food plot seeds, cool and native warm season grasses and legumes for wildlife management purposes, native forbs. Signs & Posts - signs can be purchased only if related to wildlife management and hunting areas. Soil Sampling - samples taken and test analysis performed on wildlife management fields. Surveys - land and aerial of acquisitions. Tree, Shrub, & Forb Seedlings - and labor for planting of seed and seedlings, control of exotic and invasive vegetation, herbicide application, ground preparation and tree shelter installation. Equipment - any item that is to be used to maintain, enhance and/or develop wildlife habitat. Duck Decoys - may be purchased for sites with daily draw-in waterfowl programs where the Department traditionally provides decoys and participants have no obligations to brush, build or maintain blinds. Fuel B for pumps used in the management of wildlife habitat areas.
Nest Structures - materials necessary for construction or purchase of wood duck squirrel, bluebird, goose and duck nesting boxes or other wildlife nest structures. Wildlife Propagation Centers B any commodity, contractual or equipment item required to maintain, enhance or produce captive reared pheasants for use in the Department=s controlled hunting program. Lease income generated from lands included in the W-76-D program may not be used for this purpose. 3/10/2010 HR