Title II – Conservation Environmental Quality Incentives Program and other Conservation Programs

1. Title II – ConservationEnvironmental Quality Incentives Program and other Conservation Programs 2002 Farm Bill Education Conference Kansas City, Missouri May 20-21, 2002 Andy Seidl Colorado State University

2. Title II: Conservation Presentation Focus: • Environmental Quality Incentives Program (EQIP) Also: • Wetlands Reserve Program • Wildlife Habitat Incentives Program • Farmland Protection Program • Small Watershed Rehabilitation Program • Desert Terminal Lakes Program

3. Environmental Quality Incentives Program (EQIP) 1996 vs 2002 • Overview • Priority areas • Eligibility • Funding/Payments

4. 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.

5. 1996 Environmental Quality Incentives Program Details • 5-10 yr contracts & conservation plans •  75% cost share for conservation practices • Grassed waterways --Filter strips • Manure mgmt facilities --Capping wells • Incentive payments for land mgmt ( 3yr) • Nutrient mgmt --Manure mgmt • Irrigation water mgmt --IPM

6. 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.

8. 1996 EQIP: Eligibility • Livestock or ag producers on targeted lands. • No cost share for CAFO waste mgmt facilities, but eligible for other assistance • Total cost share & incentives  $10K/yr & $50K/contract.

9. 1996 EQIP Funding • FY1996-2001 $1.3 billion • FY2001 $200 million • $158 million financial assistance • $3 million educational assistance • $38 million technical assistance •  50% to livestock operations •  50% to irrigation water management for soil erosion reduction and water quality improvements.

10. 2002 EQIP Funding • $9 billion total budget • 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. Perspectives on EQIP • Producers generally in favor of voluntary incentive-based environmental programs. • Producers not supportive of regulatory solutions. • Environmental lobby generally supportive of EQIP, but also regulatory programs. • Both concerned regarding relaxed payment caps and unrestricted eligibility. • High profile with CWA & CAA Revisions

14. Perspectives on EQIP

15. 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/

16. 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

17. WRP Acres

18. Other Conservation Programs: Farmland Protection Plan • USDA partners with state, tribal & local organizations to acquire conservation easements. • Matching funds (up to 50%) for 30 yr to perpetual conservation easements. • Mandatory conservation plan (particularly highly erodible lands). • Budget 20X to $985 million

19. Other Conservation Programs: Farmland Protection Plan • Targets: • prime, unique, productive soils or historical or archeological resources • Privately owned • Part of an existing protection program • Large enough to sustain agricultural production • Accessible to markets • Surrounded by compatible uses. • Fact sheet: http://www.nrcs.usda.gov/programs/farmbill/2002/pdf/FPPFct.pdf

20. Other Conservation Programs • Small Watershed Rehabilitation Program • Rehabilitates small watershed flood prevention dams • $275 million total. • Desert terminal lakes • Provides funding to help conserve lakes. • $200 million total.