CONSERVATION RESERVE PROGRAM CRP 26 FSRIA 2002

1. CONSERVATION RESERVE PROGRAMCRP 26 FSRIA 2002 The University of Georgia Cooperative Extension Service

2. ACKNOWLEDGEMENTS Mr. Clark Weaver Chief; Price Support, Conservation, and Compliance Division GA State Office USDA/FSA Dr. Curt Lacy Extension Specialist – Farm Management and Livestock The University of Georgia Dr. Larry Sanders Extension Economist Oklahoma State University

3. What is the Conservation Reserve Program (CRP)? • CRP is a voluntary long-term cropland diversion program • CRP relies upon positive economic incentives to entice owners, operators, and landlords to convert cropland and other environmentally-sensitive lands to a conserving use. • Usually 10-year contracts are developed although some contracts are up to 15 years in duration.

4. The Legislative History of CRP • Established by the Food Security Act of 1985. • Re-authorized by the Food, Agriculture, Conservation, and Trade Act of 1990. • Re-authorized by the Federal Agriculture Improvement and Reform Act of 1996. • Re-authorized by the Farm Security and Rural Investment Act of 2002.

5. CRP Goals Under the Food Security Act of 1985 (FSA) • Primary Goal: Reduce soil erosion • Secondary Goals: • Protect the long-term capacity to produce food and fiber • Reduce sedimentation • Improve water quality • Create fish and wildlife habitat • Curb production of surplus commodities • Provide farm income support • Assisting producers to meet HEL compliance.

6. CRP Goals Under the Food, Agriculture, Conservation, and Trade Act of 1990 (FACT) • Primary Goal: • Emphasis on those goals specified in the prior act that would contribute most to the public good • Secondary Goals: • Help cropland owners and operators control erosion on their cropland • Reduce sedimentation and other surface water quality problems • Address ground water quality problems

7. CRP Goals Under the Federal Agriculture Improvement and Reform Act of 1996 (FAIR) • Primary Goals: • Assist owners and operations in cost-effectively conserving and improving the nation’s natural resources. • Protect the nation’s soil, water, and wildlife resources. • Improve and preserve water quality. • Enhance fish and wildlife habitat. • Protect identified national conservation priority areas.

8. The “Continuous” Signup CRP Implementation Rules Under FAIR • Was available to enroll selected acreages into certain high priority conservation practices. • Each tract had its own maximum CRP rental rate (known prior to bidding). • The bids were not subject to an environmental benefit index evaluation.

9. The “Continuous” Signup CRP Implementation Rules Under FAIR • The acreage must have been determined by NRCS to be eligible and suitable for any of the following practices; riparian buffers, filter strips, grass waterways, shelter belts, field windbreaks, living snow fences, contour grass strips, salt tolerant vegetation, or shallow water areas for wildlife. • Practice incentive payments (PIP) from 10 to 20 percent above the soil rental rate were offered for some practices.

10. Location of CRP Enrollment, October 2000

11. CRP Under the Farm Security and Rural Investment Act of 2002 • Goals • FSA Primary Program (NRCS support) • Target Enrollment • Pilot for Wetland and Buffer Acreage (continuation) • Managed Harvesting and Grazing • CRP Cropping History

12. CRP Goals Under the Farm Security and Rural Investment Act of 2002 • Goal: • Through the 2007 calendar year, CRP shall assist owners and operators of land to conserve and improve soil, water, and wildlife resources of such land. [Sec. 1231(a)]

13. Maximum Enrollment for CRP Under the Farm Security and Rural Investment Act of 2002 • The Secretary shall maintain up to 39,200,000 acres in the conservation reserve program at any 1 time during the 2002 through 2007 calendar years (including contracts extended). [Sec. 1231 (d)] • The previous maximum under the FAIR Act was 36,400,000 acres.

14. CRP Cropping History Under the FSRIA • Eligible land will include highly erodible cropland that “the Secretary has determined a cropping history or was considered planted for 4 of the 6 years preceding the date of enactment of the Act.” [Sec. 1231(b)(1)(B)] • Previously the requirement was 3 of the 5 years preceding the close of enrollments.

15. CRP Program Overview • CRP 26 5-30 May 03 • 2.8 mil acres in FY04 budget proposal • 5-7 mil acres expected to be offered • Process: Environmental Benefits Index (EBI) ranking plus cost • 7.8 mil ac may be enrolled thru 2006

16. CRP Program Overview • County cropland limitation of 25% applies to CRP (including continuous signup & FWP) & WRP • Technical Service Providers (TSPs) • Anyone providing technical assistance for CRP & certified by NRCS • State agencies and Extension will assist with education and support

17. CRP Payments • Rental Payments: annualized for life of contract. FSA bases rental rates on the relative productivity of the soil and the average dryland cash rent. The maximum CRP rental rate is calculated in advance of enrollment. Producers have the option to offer lower than maximum rate.

18. CRP Payments • Maintenance incentive payments: CRP annual rental payments may include up to $5.00 per acre to perform certain maintenance obligations. Will almost always be included. • Cost share assistance: FSA will pay not more than 50% of the participant’s cost in establishing approved practice

19. CRP Producer Eligibility • Individuals, associations, trusts, other legal entities, local governments, Indian Tribal ventures, corporations, joint stock companies, estates, state governments, joint operations • For owners: owned land for 12 mo. before close of general signup (some exceptions)

20. CRP Producer Eligibility • For operators: operated land for 12 mo. before close of current signup ANDprovides satisfactory evidence that control of land will continue uninterrupted for entire period • Person must be eligible to offer land in own right

21. CRP Land EligibilityCropland Criteria • Two Conditions must be met: • Planted/considered planted to agricultural commodity during 4 of 6 crop years 96-01 • Physically & legally capable of being planted in normal manner to ag commodity

22. CRP Land EligibilityCropland Criteria • Planted/considered planted • Prevented planting that received crop insurance indemnity • Previously enrolled in CRP • Conserving use land • Incidental field margins • For signup 26, acres in CRP scheduled to expire 30 Sep 03

23. CRP Land Eligibility • Changes in criteria • RUSLE (Revised Universal Soil Loss Equation), not USLE, for EI (Erosion Index) • EI calculated on tract, not field basis

24. CRP Land Eligibility • Land Eligibility Criteria—land must meet at least one of these criteria • EI > or = 8 on 3 predominant soils offered on the tract • Expiring CRP 30 Sep 03 • Within state conservation priority area (CPA)

25. CRP CPAs • State Water Quality Priority Areas/Zones are awarded bonus points toward EBI total (0 to 30 pts) • National Wildlife Priority Areas/Zones are awarded bonus points toward EBI total (0 to 30 pts)

27. EXPIRING CRP • Current contracts expiring this fall (1.5 million acres) are eligible for new contract offers for Oct ’03 or Oct ‘04

28. CRP Land EligibilityIneligible acreage • Permanently under water • Land under another conservation program that: • Has had permanent cover • Scheduled to have permanent cover established • Land in CRP, unless expiring 30 Sep 03 • Existing grass waterways • If producer notified by regulatory agency of a violation

29. CRP Permissive Uses • Managed haying & grazing • Emergency haying & grazing • Incidental grazing • Wind turbines • Carbon credits/biomass • Restrictive grazing (nesting periods)

30. CRP • FSA calculates Environmental Benefits Index Ranking: • Cover planted or not planted • Water Quality • Cost Share or waiver • Soil erodibility or EI (erodibility index)

31. CRP • Environmental Benefit Index Factors: • Wildlife N1 • Water quality N2 • Erosion N3 • Enduring Benefits N4 • Air Quality N5 • Cost N6

32. Wildlife - N1 • Cover 10 to 50 pts • Wildlife Enhancement 0, 5, 20 pts • Wildlife zones 0 or 30 pts (none in GA) • Maximum accumulation 100 pts

33. Water Quality – N2 • Water Quality Zone 0 or 30 pts (State designated) • Ground Water Quality 0 - 25 pts (leaching index <GA) • Surface Water Quality 0 - 45 pts (impacted watersheds specifically sediment) • Maximum accumulation 100 pts

34. Erosion – N3 • Use higher value of either Water or Wind Erosion Index (No wind in GA) • The water EI value is based on weighted average value for the 3 predominant soils in the tract • The EBI ranking comes from tables relating the EI score • Maximum accumulation 100 pts

35. Erosion – EI Calculation • Water EI (RUSLE) = (R*K*LS)/T • R = Rainfall factor (table) • K = Soil erodibility (table) • LS = % of slope and length (table) • T = Soil loss tolerance rate (table)

36. Enduring Benefits – N4 • Enduring benefits 0 to 50 pts • Practice will persist beyond the contract period • Weighted average of practice scores • Maximum accumulation 50 pts

37. Enduring Benefits – N4 • New hardwood (CP3A) 50 pts (includes Longleaf pine) • Existing hardwood (CP11) 40 pts • New pine/softwood (CP3) 30 pts • Existing pine (CP11) 20 pts

38. Air Quality – N5 • Reduction of airborne dust and particulate by created by wind erosion • Reduction of ‘Greenhouse Gas’ emissions by carbon sequestration • NO Wind Erosion or Air Quality Zones in GA • Carbon Sequestration only score for GA

39. Air Quality – N5 • Maximum accumulation 45 pts • For Georgia CRP captures Carbon in plant and root growth improving soil organic matter • CP3, CP3A, CP11 10 pts • CP4B, CP4D (wildlife habitat) 4 pts • CP1, CP2, CP10 (grass) 3 pts

40. Cost – N6 • Optimize environmental benefits per dollar for CRP rental payments and cost share • N6 = N6a + N6b + N6c • N6a determined by Secretary after signup – lower per acre rental rates will get higher points • N6b is 0 for cost share and 10 pts for no cost share incurred by FSA

41. Cost – N6 • N6c is offer less than maximum calculated rate at 0 to 15 points • N6c points equal one point for every whole dollar reduction from maximum not to exceed 15 points • Example: Max Rate = $45.50 Rental offered = $42.00 N6c points = 3

42. Cost – N6 • N6 maximum accumulation unkown • Becomes bidding process as rankings will be dependent on practices and total dollars available will dictate number of acres in each state

43. Offer Acceptance • After May 30, 2003, FSA will determine EBI thresholds for acceptance • EBI cutoff is determined from analyzing and ranking all eligible offers • This is a highly competitive program and previous EBI scores are not guaranteed a contract under CP26

44. Enhancing Competitiveness • Plant the highest scoring cover mix • Offer only the most environmentally sensitive land. Offering land with the highest EI will improve score • Enhancing covers for wildlife by developing permanent water sources. Plant and manage hardwood or softwood trees that increase wildlife habitat values

45. Enhancing Competitiveness • Consider accepting a lower payment rate than the maximum amount that FSA will offer. • Consider absorbing practice cost totally and refusing cost share. Those 10 points may make the difference. • Work with resource agencies to maximize EBI points

46. CRP Vegetative MatrixWildlife Habitat Cover Benefits – N1 • CP1 Permanent Introduced grasses and legumes • CP2 Permanent native grass est. • CP3 Tree planting (general) • CP3A Hardwood Tree Planting and Longleaf pine • CP4B Permanent Wildlife Habitat corridors

47. CRP Vegetative MatrixWildlife Habitat Cover Benefits – N1 • CP4D Permanent Wildlife Habitat • CP10 Vegetative cover – grass already established • CP11 Vegetative cover – trees already established • CP12 Wildlife food plot • CP23 Wetlands restoration

48. CRP Continuous Signup • Producers plant long term resource conserving covers to improve water quality, control soil erosion, and enhance wildlife habitat. • Offers are automatically accepted if land and producer meet eligibility requirements. 10 to 15 year contracts available. (No EBI ranking)

49. Riparian buffers Wildlife habitat buffers Wetland buffers Filter strips Wetland restoration Grass waterways Shelterbelts Living snow fences Contour grass strips Shallow water areas for wildlife CRP Continuous Signup

50. CRPContinuous Signup • Authorized 2 million total acres • Apply at any time, usually small acres • Cropland or Marginal pasture land • Cost share • Rental payments • CRP-SIP Signing Incentive Payment • CRP-PIP Practice Incentive Payment