; and (B) improving, maintaining, and managing conservation activities in place on the agricultural operation of the producer at the time the contract offer is accepted by the Secretary. (2) Payment amount The amount of the annual payment shall be determined by the Secretary and based, to the maximum extent practicable, on the following factors: (A) Costs incurred by the producer associated with planning, design, materials, installation, labor, management, maintenance, or training. (B) Income forgone by the producer. (C) Expected conservation benefits, based to the maximum extent possible on conservation measurement tools. (D) The extent to which designated priority resource concerns will be addressed through the installation and adoption of conservation activities on the agricultural operation. (E) The level of stewardship in place at the time of application and maintained over the term of the contract. (F) The degree to which the conservation activities will be integrated across the entire agricultural operation for all designated priority resource concerns over the term of the contract. (G) Such other factors as are determined appropriate by the Secretary. (3) Exclusions A payment to a producer under this subsection shall not be provided for— (A) the design, construction, or maintenance of animal waste storage or treatment facilities or associated waste transport or transfer devices for animal feeding operations; or (B) conservation activities for which there is no cost incurred or income forgone to the producer. (4) Delivery of payments In making payments under this subsection, the Secretary shall, to the extent practicable— (A) prorate conservation performance over the term of the contract so as to accommodate, to the extent practicable, producers earning equal annual payments in each fiscal year