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The Conservation Security Program: Interim Final Rule June 2004

The Conservation Security Program: Interim Final Rule June 2004. Presented by The Minnesota Project …connecting rural and environmental issues …connecting people with policy. Draft Rule Comments. 10,000 written comment letters 700 oral comments 96% from farmers and individuals

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The Conservation Security Program: Interim Final Rule June 2004

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  1. The Conservation Security Program:Interim Final RuleJune 2004 Presented by The Minnesota Project …connecting rural and environmental issues …connecting people with policy

  2. Draft Rule Comments • 10,000 written comment letters • 700 oral comments • 96% from farmers and individuals • 253 organizations • 128 government • 27 businesses

  3. Draft Rule Comments • 10,000 written comment letters • 700 oral comments • 96% from farmers and individuals • 253 organizations • 128 government • 27 businesses

  4. NRCS Response to Comments • No change to big criticisms • Many small improvements • New payment limitations added

  5. No Change • Offered in few watersheds • Short signup periods • Enrollment ranking system • Payments scaled back • Soil and water standards met before applying • Limited renewal

  6. Improvements Added • Stewardship (base) payment reduced 75%, 50% or 25% (not 90% for all) • Tier 1: rate x 5% x 25% • Tier 2: rate x 10% x 50% • Tier 3: rate x 15% x 75% • Example $100 per acre rental rate pays $1.25, $5 or $11.25 an acre per year • Pastured cropland valued as cropland

  7. More Improvements • New practice cost share is 50% • But capped at $10,000 for contract (for ‘04) • Maintenance of existing practices adds 25% to the stewardship payment (for ‘04) • Enhancements either based on environmental benefits or cost • But capped at $10,000, $17,500 or $22,500 (for ‘04)

  8. More Improvements • Farmer defines operation • One application per signup and one active contract per person • Letter from landlord shows “control” • Rented acres can be cut from contract without penalty • TSPs must be certified to do Conservation Stewardship (Security) Plans, with NRCS approval of plans

  9. More Improvements • Production-oriented practices in FOTG not required for Tier 3 • In future, states will help list watersheds, new practices, enhancements New Details • Entrance standards for soil and water quality defined • Soil Conditioning Index > 0 • Nutrient, pesticide, salinity, sediment mgmt. • For pasture: grazing management plan

  10. New Payment Limitations Stewardship payment + maintenance payment + enhancement payment Sum Cannot exceed • 15% of rental rate Tier 1 x Number of acres • 25% of rental rate Tier 2 x Number of acres • 40% of rental rate Tier 3 x Number of acres • New practice cost share is additional but capped at $10,000 over life of contract

  11. Potential problems with new payment limitations • Reduces payment for low rental rate regions • Limits enhancement payment for those with smaller acreage • Puts emphasis on new practice cost share – but cap is very low • Stewardship payment already capped by law at $5000, 10,500 and 13,500 • Total payment already capped by law at $20,000, 35,000 and 45,000

  12. Payment Formulas • New practice cost share max $10,000 over contract • Contract max is $20,000, 35,000 or 45,000 • Stewardship payment • Rental rate x .5,.10,.15 (law) • x .25,.5,.75 (rule) • Max $5000, 10,500, 13,500 • Existing practice payment • .25 x stewardship payment • Enhancement payment • Max $10,000, 17,500 or 22,500 • Sum of above cannot exceed • .15,.25, or .40 x rental rate x acres

  13. Final Rule • 90 day comment period • Learn from first sign up • Congress: 2005 appropriation • Same or new Administration?

  14. In Signup Announcements • Watersheds • Categories • List of new practices and rates • List of enhancements and rates • Adjusted rental rates

  15. 2005 Funding Underway • President: $209 million • House Ag Appropriations: $194 million • Senate: Uncapped at $282 million est? • Conference committee

  16. CSP Selection All Farmers Priority Watersheds Meet SQ, WQ Enrollment Categories CSP Contract

  17. CSP Eligibility & Process Watershed Prioritization Tier Participation Enrollment Categories Cropland Pasture land Rangeland Stewardship Practices and Activities Enhancement Activities Sign-Up Requirements Enrollment Process

  18. Watershed Prioritization • USGS 8-digit HUC Watershed • Considered Land Use, Inputs and Stewardship • Administrative Efficiencies • 18 Watersheds of 2119 Nationwide on ‘04 • 8-Year Cycle = 264 each year

  19. Tier Participation • A portion of Farm Operation -Tier 1 • All of the Farm Operation -Tier 2 & 3 • Soil Conditioning Index> 0.0 -Tier 1,2,3 • Meet FOTG water quality criteria for surface/ground water –Tier 1,2,3 • Address all FOTG Section III resource concerns: soil, water, air, plants and animals- Tier 3

  20. Enrollment CategoriesCropland Categories A-H • Category A – • SCI >0.1 • At least 3 Stewardship Practices in place for 2+ years • At least 3 Stewardship Activities in place for 2+ years • Agree to move to next Tier, or complete 2 additional Stewardship Practices or Activities; and conduct on-farm project, assessment or evaluation activity

  21. Enrollment CategoriesPasture Categories A-H • Category A • Pasture Conditioning Score >44 • At least 3 Stewardship Practices in place for 2+ years • At least 3 Stewardship Activities in place for 2+ years • Agree to move to next Tier, or complete two additional Stewardship Practices or Activities; and conduct on-farm project, assessment or evaluation activity

  22. Enrollment CategoriesRangeland Categories A-H • Category A • Rangeland Health Assessment of none to slight for all 3 Attributes • Prescribed grazing plus 3 or more practices in place • Agree to move to next Tier or complete two additional Stewardship Practices or Activities and conduct on-farm project assessment or evaluation activity

  23. Stewardship Practices • Key Conservation Practices that have an NRCS practice standard in the FOTG. • Generally physical structures and vegetative plantings • Examples: Water/Sediment basin, strip cropping, residue management, conservation crop rotation, constructed wetland.

  24. Stewardship Activities • Key conservation actions that do not have a specific practice standard in the FOTG. • Have defined local actions that are necessary to mitigate off-site damage or improve soil and water quality • Examples: Soil tests, collection of field data, spot spraying, split N applications, pest resistant plant varieties, yield monitoring, beneficial insects, etc.

  25. Enhancement Activities • Rewards those who are willing to increase their level of stewardship • Efforts that result in moving to the next Tier or intensifying current management are top priorities • Also required is willingness to add to the state of conservation knowledge base and through education by assessments, evaluations, on-farm demonstrations, etc.

  26. Sign-Up Requirements • Complete Self-Assessment Workbook • Collect Benchmark Inventory Records • Submit Materials

  27. Enrollment Process • NRCS will: • review resource conditions from benchmark inventory • conduct follow-up interview • determine tier level participation • determine Enrollment Category

  28. CSP Flowchart • Application Steps

  29. Blue Earth Watershed Counties Minnesota Iowa Blue Earth Kossuth Freeborn Emmet Faribault Winnebago Martin Jackson Cottonwood Watonwan

  30. Farming in Blue Earth Watershed • About 2500 Farms in Blue Earth River Watershed • Average size farm is about 400 acres • No. 2 Corn and Glyphosphate-resistant soybeans are predominant crops • Hogs are predominant livestock

  31. Land Use Iowa Acres Minnesota Acres Total Acres Cropland 192,900 665,000 858,300 Pasture 1,300 22,800 24,100 Forest 0 31,300 31,300 Developed 5,600 37,400 43,000 Water 1,600 18,600 20,200 Other 8,200 28,100 36,300 Total 209,600 803,600 1,013,200 Blue Earth River Basin Land Use and Acres

  32. Land Use Iowa Acres Minnesota Acres Total Acres Cropland 19.0% 65.6% 84.5% Pasture 0.1% 2.3% 2.4% Forest 0.0% 3.1% 3.1% Developed 0.5% 3.6% 4.1% Water 0.2% 1.8% 2.0% Other 0.8% 2.7% 3.5% Total 209,600 803,600 1,013,200 Blue Earth River Basin Land Use Percentages

  33. Management Yield Soil and slope Soil detachment, t/ac/yr SCI Corn, Oats, 3-yr Alfalfa: fall plow, disc, field cultivate,plant Corn – 150 bu Oats – 60 bu Alfalfa-5ton/yr Clarion Loam 2-6% 1.0 0.9 Corn, Soybeans NT: No-till Anhydrous Ammonia, narrow row soybeans, no-till Corn – 150bu Sbean – 40bu Clarion Loam 2-6% 0.96 0.6 Corn, Soybeans Mulch Till and No-till: disc and field cultivate, wide row soybeans Corn – 150bu Sbean – 40bu Clarion Loam 2-6% 2.9 0.3 Corn, Soybeans Manure application: field cultivate, disc wide-row soybeans Corn – 150bu Sbean – 40bu Clarion Loam 2-6% 3.9 Cropping System SCI Comparisons 0.09

  34. Tier I Example • Tier I enrollment/400 acres/$100 cropland rental rate/$4,000 new practices cost • Stewardship payment = $100 x .05 (tier factor) x .25 (reduction factor) = • $1.25 x 400 acres = $500 • Existing practice payment = $125 • New practice payment = $4,000 x .50 = $2,000 • Total payment before contract limitation = $2,625 • Contract limitation = 400 acres x $100 = 40,000 x .15 = $6,000 • Application of contract limitation = $500 + $125+(no enhancement) = $625 • Limitation not exceeded • Total CSP payment = $625 + $2,000 (new practice payment) = $2,625

  35. Tier II Example • Tier II enrollment/400 acres/$100 rental rate/$4,000 new practices/ $10,000 in enhancement payments • Stewardship payment = $100 x .10 (tier factor) x .5 (reduction factor) = $5 x 400 acres = $2,000 • Existing practice payment = $500 • Enhancement payment = $10,000 • New practice payment = $4,000 x .5 = $2,000 • Total payment before contract limitation = $14,500 • Contract limitation = 400 acres x $100 = $40,000 x .25 = $10,000 • Application of contract limitation = $2,000 + $500 + $10,000 = $12,500 • Exceeds limitation – capped at $10,000 • Total CSP payment = $10,000 (contract limited total) + $2,000 (new practice payment) = $12,000

  36. Tier III Example • Tier III enrollment/400 acres/$100 rental rate/$3,500 new practices cost/$16,000 in enhancement payments • Stewardship payment = $100 x .15 (tier factor) x .75 (reduction factor) = $11.25 x 400 acres = $4500 • Existing practice payment = $1125 • Enhancement payment = $16,000 • New practice payment = $1,750 • Total payment before contract limitation = $23,375 • Contract limitation = 400 acres x $100 = $40,000 x .4 = $16,000 • Application of contract limitation = $4500 + $1125 + $16,000 = $21,625 • Exceeds limitation – capped at $16,000 • Total CSP payment = $16,000 + $1,750 = $17,750

  37. Minnesota Counties each have a SWCD Board and Staff Iowa Counties have a SWCD Board and usually no staff and work with IDALS through a state secretary Minnesota Counties each have an NRCS office with 1-3 employees Iowa Counties each have an NRCS Office with 3-5 employees NRCS and SWCD

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