(a) The Secretary may provide equitable relief on a case-by-case basis for the purchase requirement to eligible participants that:
(1) Are otherwise ineligible or provide evidence, satisfactory to FSA, that the failure to meet the requirements of Sec. 760.104 for one or more eligible crops on the farm was unintentional and not because of any fault of the participant, as determined by the Secretary, or
(2) Failed to meet the requirements of Sec. 760.104 due to the enactment of the 2008 Farm Bill after the:
(i) Applicable sales closing date for a policy or plan of insurance in accordance with the FCIA (7 U.S.C. 1501-1524) or
(ii) Application closing date for NAP.
(b) Equitable relief will not be granted to participants in instances of:
(1) A scheme or device that had the effect or intent of defeating the purposes of a program of insurance, NAP, or any other program administered under this part or elsewhere in this title,
(2) An intentional decision to not meet the purchase or buy-in requirements,
(3) Producers against whom sanctions have been imposed by RMA or FSA prohibiting the purchase of coverage or prohibiting the receipt of payments otherwise payable under this part,
(4) Violations of highly erodible land and wetland conservation provisions of 7 CFR part 12,
(5) Producers who are ineligible under any provisions of law, including regulations, relating to controlled substances (see for example 7 CFR 718.6), or
(6) A producer's debarment by a federal agency from receiving any federal government payment if such debarment included payments of the type involved in this matter.
(c) In general, no relief that is discretionary will be allowed except upon a finding by the Deputy Administrator or the Deputy Administrator's designee that the person seeking the relief acted in good faith as determined in accordance with such rules and procedures as may be set by the Deputy Administrator. [74 FR 31571, July 2, 2009, as amended at 76 FR 54075, Aug. 31, 2011]