Enhancing Federal Support for Agricultural Conservation in the Chesapeake Bay Watershed

1. Enhancing Federal Support for Agricultural Conservation in the Chesapeake Bay Watershed The Federal Farm Policy Reform Project Chesapeake Bay Commission Marel Raub, Pennsylvania Director

2. THE BAY IS A NATIONAL TREASURE: The World’s Largest, Most Productive Estuary

3. The U.S. FARM BILLis the primary Federal funding source to enhance funding for agricultural conservation measures… With its reauthorization in 2007, making it work better is a BIG priority. Thus, we have begun the Federal Farm Policy Reform Project

4. TODAY’S GOAL: • Identify needs • Share some facts • Seek your recommendations

5. FACT: Over 90% of the Bay and its tidal rivers are impaired due to low dissolved oxygen levels and poor water clarity, all related to nutrient and sediment pollution. Impaired Water

6. FACT:While pollution comes from many sources,agriculture offers one of the greatest opportunities to improve water quality in the Bay and its tributaries Nitrogen Phosphorus 2003 Loads to the Tidal Chesapeake Bay by Source

7. FACT:Tributary Strategies are designed to remove the Bay from the impaired waters list. All rely heavily upon agriculture to meet their water quality goals. The Chesapeake Bay Watershed is broken into 36 Tributary Strategy Basins

8. FACT:Every state is relying on agriculture to achieve the Tributary Strategy reductions(2003-2010 Tributary Strategy delivered load reduction)

9. FACT:Agriculture is a Vital Component of the Bay’s Economy, Landscape and Culture • Nearly one-quarter of the land use in the watershed is agricultural • Agriculture = 13% of the Bay region’s gross domestic product • 4% of labor force is linked to agriculture • Crops make up two-thirds of ag production: corn, wheat and soybeans dominant tradable commodities • Poultry and milk are the region’s highest valued animal commodities

10. Buffer to Protect Water ways FACT:Farmers are key stewards of the environment, working on the frontlines to protect the Bay and its rivers Proper Nutrient & Manure Management Stream bank Fencing

11. FACT: Key Conservation Programs are Drastically Under Funded 4 out 5 farmers are turned away due to inadequate funding when they offer to improve water quality 1/5th of Bay farmers receive the financial assistance they request Applications Received

12. FACT:Bay state farmers lose out on Federal Farm Bill funding • Farmers in the Bay Watershed do not receive their fair share of Federal Farm Bill dollars, ranking near the bottom in terms of federal support for agriculture • For every $1 in Bay Watershed agricultural production, Bay farmers get back $0.01-$0.03 in Farm Bill support • North Dakota farmers get $0.17, and the national average is $0.06

13. WHY? Because Most Funding Goes to Commodity Payments Conservation spending represents $3.8 B of $29 B in total Farm Bill payments to farmers in 2005 Source: USDA budget summary for 2005

14. Subsidy Funds Distribution Is Not Equitable – And the Bay Is Losing Out

15. Conservation Outlays In Relation to Total USDA OutlaysFY2005 OBPA estimates that conservation outlays will be $3.8 B out of a total of $94.9 Billion 4% Source:  USDA Budget Summary for 2006. OBPA: Office of Budget and Program Analysis of USDA

16. FY 2004 FARM BILL Conservation Allocations by State* Bay States Percentage of National Total 4.3% National Total: $3,215,991,120 Bay States Total: $141,459,375 • Source: USDA NRCS and FSA * Includes all state funds, not just watershed portion

17. HAVE:$68 M/yr. in current Federal financial assistancefor agricultural conservation in the watershed. NEED:Roughly $700 million annually to fully implementagricultural conservation measures across 6 states in the watershed. $141M state-wide FACT:Farmers are committed – they would do far more if the resources were there to support them. Source: USDA NRCS and FSA

18. Ag Sector Conservation Costs and Income Annual by State Tributary Strategies (2005-2010) Projected Deficit Projected State Funds Projected Federal Funds State/Federal Share of Funding Gap Calculations based upon historic cost share Total Cost: 215M Total Cost: 143M Total Cost: 100M Maryland State: 52% = 37 M Fed: 48% = 34 M Virginia State: 44% = 55 M Fed: 56% = 70 M Pennsylvania State: 52% = 90 M Fed: 48% = 84 M Source: MD, VA PA State Tributary Strategies

19. Making the Farm Bill Work Better for Farmers and the BayAreas of Opportunity Conservation funding levels Regional distribution of funds Program Reforms to better address nutrients and sediment challenges Harnessing energy from agricultural wastes & crop residues Farmland preservation & wildlife enhancement tools

20. Key Farm Bill Conservation Programs for Addressing Bay IssuesWhere is there room for improvement? • EQIP:Cost share and incentive funding for conservation practices. Water quality is one of four national priorities • CREP:Rental payments and incentives for installing and maintaining buffers for water quality • CSP:Program to reward good stewards of the environment for on-going efforts • WRP:Funding for creating and restoring wetlands for water quality

21. Desired Outcomes Federal Farm Policy Reform Project • Significant reductions in nutrients and sediments • Increased conservation funding • Economically viable farming operations • Better integration of farmers into Farm Policy development

22. Federal Farm Policy Reform Project What do you want to recommend? A project sponsored by the Chesapeake Bay Commission in support of Chesapeake Executive Council Directive #04-2