Conservation and Livestock Programs in the Farm Bill

1. Conservation and Livestock Programs in the Farm Bill Curt Lacy Extension Economist - Livestock

2. Major Programs of Interest • Graze-Out • EQIP • Conservation Security Program • Conservation Reserve Program

3. Graze- Out Program

4. Graze-Out Program Particulars • LDP available on wheat & oats • Only solid stands • No mixtures (wheat/rye, oats/ryegrass, etc.) • Overseeded pastures not eligible • Yields • Based on farm yield • If N/A then base yield • PCP • Wheat – $2.45/bu • Oats - $1.22/bu

5. Graze-Out Program Particulars • Important dates • Earliest date – earliest date that the crop could be harvested as set by the county committee • Last date – March 31 following the year the crop could be harvested. For wheat planted Fall of 2001  March 31, 2003

6. Environmental Quality Incentives Program (EQIP)

7. Environmental Quality Incentives Program (EQIP) • Established 1996 Farm Bill • Voluntary program addressing soil, water & other natural resource concerns on agricultural lands. • Administered by NRCS, funding through CCC, facilitated by FSA • Technical & financial assistance for… • regulatory compliance, • environmental enhancement, • conservation planning. • 5X over subscribed.

8. EQIP Priority Areas • Local CD identifies & proposes, State Conservationist prioritizes •  65% of funds spent in priority areas • Watersheds, regions or areas of special environmental sensitivity or… • Areas of special soil, water, or related natural resource concerns • Soil erosion --Water quality/quantity • Wildlife habitat --Wetlands • Forest lands --Grazing lands.

10. 2002 EQIP Funding • $9 billion total budget • GA 2002 - $4,002,717 • Ramp to $1.3 billion/yr by 2007 (6X) •  60% to livestock operations •  40% to crop producers. • 1-10 yr contracts. • $450,000 payment cap, 2002-07. • 90% Cost share for limited resource or beginning farmer/rancher

11. 2002 EQIP: Other Changes • Incentives expanded to annual & perennial crops and CNMPs • Incentive payments emphasize residue, nutrient, pest, invasive species and air quality mgmt. • Applied research support. • Ranking based upon national conservation priorities. • CAFOs are eligible for all parts of program.

12. 2002 EQIP: Water Conservation Program • Cost share assistance and incentive payments to conserve ground and surface water • Emphasis on irrigation efficiency & dryland alternatives. • $600 million total • $50 million for Klamath Basin

13. EQIP Resources • USDA Farm Bill site: http://www.usda.gov/farmbill/ • NRCS EQIP site: http://www.nrcs.usda.gov/programs/eqip/ • Farm Foundation Publications and National Producers’ Survey site: http://www.farmfoundation.org/2002_farm_bill.htm • Environmental Working Group Database: http://www.ewg.org/

14. Other Conservation Programs • Wetlands Reserve Program (WRP) • Cap increased from 1.075 to 2.275 million acres • $1.5 billion total. • http://www.nrcs.usda.gov/programs/farmbill/2002/pdf/WRPFct.pdf • Wildlife Habitat Incentives Program (WHIP) • Cost share payments to provide wildlife habitat • 1.6 million acres in program • Budget 10X to $700 million • http://www.nrcs.usda.gov/programs/farmbill/2002/pdf/WHIPFct.pdf

15. WRP Acres

16. Conservation Security Program

17. Conservation Security ProgramTitle II: Subtitle A: Section 2001 • Program for FY03 through FY07 • to “assist producers of agricultural operations in promoting…conservation and improvement of the quality of soil, water, air, energy, plant and animal life, and other conservation purposes as determined by the Secretary.” • $2 billion allocated

18. Conservation Security Program • Producers must have an approved plan • Only eligible for payment equal to the share of the proceeds from the operation • Available for all farmland (crop, grass, pasture, range, and prairie) except land in CRP, WRP, GRP, and land that is sodbusted i.e., converted to crops after enactment that had not been planted or considered planted in 4 of last 6 years

19. Conversation Security Program • Covered costs for adoption of new management, vegetative, and land-based structural practices • Maintenance of existing land management and vegetative practices • Maintenance of approved existing land-based structural practices but not already covered by a Federal or State maintenance requirement

20. Conservation Security Program APC = Average Practice Cost

21. Conservation Security ProgramEnhanced Payments for: • Multiple conservation practices • Address local conservation priorities • Participates in on-farm conservation research, demonstration, or pilot project • Watershed or regional resource conservation plan involving at least 75% of producers • Carry out assessment and evaluation activities for conservation security plan

22. Conservation Security ProgramPractices • nutrient management • integrated pest management • water conservation • grazing, pasture, range management • soil conservation, residue management • invasive species management • fish & wildlife habitat & management

23. Conservation Security ProgramPractices (cont) • air quality management • energy conservation measures • biological resource conservation & regeneration • contour farming • strip and cover cropping • controlled rotational grazing

24. Conservation Security ProgramPractices (cont) • resource conserving crop rotation • conversion of portion of cropland from soil depleting to soil conserving use • partial field conservation practices • native grass & prairie protection • any other practices the Secretary determines appropriate and comparable to the other practices

25. Conservation Security ProgramContracts • Tier I can be renewed for 5 to 10 years with additional acres or practices • May be modified with approval; required with changes in operation that significantly interferes with achieving purposes of CSP • A producer may terminate without refund if in compliance at termination • Change of land interest terminates contract unless continuation notice in 60 days

26. The Conservation Reserve Program

27. 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.

28. Location of CRP Enrollment, October 2000

29. USDA resources are going to be directed at expanded and new conservation programs: CRP will receive divided attention. Third-party providers of technical assistance will be used in the implementation of CRP Contracts. CRP Under the Farm Security and Rural Investment Act of 2002

30. Pilot Program for Wetland and Buffer Acreage in CRP (continued) • The owner or operator shall: • Restore the hydrology to the maximum extent practicable • Establish vegetative cover (which may included emerging vegetation in water) [Sec. 1231 (h)(3A and 3B)] • The Secretary may enroll in the conservation reserve under this section not more than a total of 1,000,000 acres nationally or move the 100,000 acres in any one state. [Sec. 1231 (h)(2C)] • Enrollment will be available through continuous signups. [Sec. 1231 (h)(4B)]

31. One-year Contract Extension Under the Farm Security and Rural Investment Act of 2002 • One-year Extension: In the case of a contract described in paragraph (1) the term which expires during calendar year 2002, an owner or operator of land enrolled under the contract may extend the contract 1 additional year. [Sec. 1231 (e)(3)] • Farm Service Agency data indicate that approximately 1,723,000 acres are under CRP contracts expiring 9/30/2002.

32. CRP Cropping History Under the Farm Security and Rural Investment Act of 2002 • 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.

33. Implementation of CRP • The current fiscal year “continuous” signup is available. • The next “general” CRP signup can realistically be expected in early calendar year 2003; 1-year extensions are available for expiring contracts. • The implementation rules that prevailed under FAIR will generally be continued: • One change will be the cropping history on eligible land (must have been cropped on considered planted in 4 of the 6 years prior to May 13, 2002.) • There will be early emphasis placed on rules managed harvesting and grazing of CRP lands.

34. The Grassland Reserve Program

35. Funding Level and Duration of the Grassland Reserve Program • A total of $254,000,000 has been provided for the program. • The program is funded at this level for the 5-year period of fiscal year 2003 through fiscal year 2007. [Sec. 1241 (a) (5)]

36. Maximum Enrollment • The total number of acres enrolled shall not exceed 2,000,000 acres of restored or improved grassland, rangeland, and pastureland. • Minimum size = 40 acres [Sec. 1238 N (b) (1)]

37. Easement Payments • In return for granting an easement by an owner, the Secretary shall make easement payments to the owner in an amount equal to: • In the case of a permanent easement, the fair market value of the land less the grazing value of the land encumbered by the easement; and • In the case of a 30-year easement or an easement for a maximum duration allowed state law, 30 percent of the fair market value of the land less the grazing value of the land for the period during which the land is encumbered by the easement. • Easement payments may be provided in not less than 1 payment nor more than 10 annual payments or equal or unequal amounts. [Sec. 1238 P (b)(1) (A and B)]

38. Rental Payments • In return for entering into a rental agreement by an owner, the Secretary shall make annual payments to the owner during the term of the rental agreement in a amount not more than 75 percent of the grazing value of the land covered for the contract. [Sec. 1238 P (b)(2)]

39. Expectations in the Implementation of the Grassland Reserve Program • The motivation for this program came from livestock industry concerns about the breaking out of range and urban encroachment on grasslands. • Implementation will initiated in fiscal year 2003. • With a finite limitation of $254,000,000 for the period of the Act, competition for enrollment will likely be intense. • For the 40% of funds devoted to 10,15 and 20-year rental agreements, it is expected that signup and enrollment will be conducted in a manner similar to the methods currently in use for the CRP.

40. Expectations in the Implementation of the Grassland Reserve Program (continued) • For the 60% of funds to be devoted to 30-year agreements and easements, or permanent easements, it is expected that methods similar to those used for WRP. The Wetlands Reserve Program uses long-term easements and restoration cost-share agreements. • It is anticipated that the standards for grazing should be no more stringent than for programs such as CRP, the Conservation Security Program, or the Farmland Protection Program.

41. Expectations in the Implementation of the Grassland Reserve Program (continued) • There does not appear to be any per person payment limitation expressed in the statute. • Some of the eligible lands under pressure from urban encroachment may also be eligible under the Farmland Protection Program.

42. Other Notes • August 23 is when all details will be available • Contact your NRCS or FSA office for full details