Robert E. and Carloyn S. Holmes - Page 13

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             any of the trees on his property during any of the years                 
             in issue.                                                                

             Row Crops and Government Subsidy Programs                                
                  Shortly after purchasing the 40-acre parcel,                        
             petitioner spoke with Mr. VandenHeede, who suggested                     
             that petitioner contact the local ASC office about the                   
             possibility of placing a portion of the land in the                      
             Conservation Reserve Program (CRP).  The CRP is a program                
             controlled by the U.S. Department of Agriculture (USDA) on               
             behalf of the Commodity Credit Corp., the SCS, and the U.S.              
             Forest Service.  Under the CRP, the USDA pays an owner or                
             operator of eligible crop land an annual rental fee in                   
             exchange for the owner's or operator's agreement to use his              
             or her land in conformance with the USDA's direction.  The               
             amount of annual rental payments under the CRP are based on              
             bids submitted by the owners or operators of the land.  CRP              
             contracts are generally effective for terms of 10 or 15                  
             years.                                                                   
                  When specific property is accepted into the CRP, the                
             SCS develops a comprehensive plan for managing the land.                 
             Typically, the SCS requires the owner or operator to                     









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