Dwight Aakre Farm Management Specialist

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Current Status of CRP in North Dakota

• Dwight AakreFarm Management Specialist

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Current Status of CRP in North Dakota

• 2007 enrollment 3,361,471 acres
• Original 2007 expiration 1,652,565 acres
• 2007 expiration 419,793 acres
• 2008 enrollment 2,941,678 acres
• Original 2008-10 expiration 1,119,083 acres
• Estimated 2008-10 expiration 300 350,000 acres

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CRP Re-Enrollments and Extensions (REX)

• Affected all contracts due to expire from 2007 to
  2010
• Contracts were divided into quintiles based on
  the environmental benefit index (EBI)
• Highest quintile were offered new 10 or 15 year
  contracts
• 2-5 year extensions were offered the rest

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CRP Re-Enrollment and Extensions, 2007-2010
Re-enrollment rental rates are updated to
reflect local cropland rates, extension rates are
a continuation of the old contract rate.
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CRP Contract Expiration

• All CRP contracts expire September 30 of
  appropriate year
• After a contract expires on September 30, any
  tillage or chemical practice is permitted as long
  as conservation compliance is maintained

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CRP Contract Expiration

• If the acreage will not be seeded until next
  spring
• Chemical burndown may occur after August 1
• Tillage can not begin until October 1

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CRP Contract Expiration

• If acreage will be seeded to a fall seeded crop
• Chemical application may begin July 1
• Tillage may start July 1
• Haying is not permitted until Aug 2
• RISK the crop must be seeded

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CRP Contract Expiration

• If acreage will be seeded to a fall seeded crop
  and the land is west of the 100th meridian
• Chemical application and/or tillage may begin
  prior to July 1 but no earlier than May 1
• Payment will be reduced based on the number of
  days prior to July 1
• Haying is not permitted until Aug 2
• RISK the crop must be seeded

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100?
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Breaking a CRP Contract

• Contract holder must repay all rental payments
  for the life of the contract
• Must also pay liquidated damages (25 percent of
  rental rate)
• USDA may waive liquidated damages
• USDA announced no penalty-free early out for 2008

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Base Acres on CRP

• Status of base acres will depend on the next farm
  bill
• 1997 Farm Bill bases were permanently reduced
• 2002 Farm Bill made the base acres on CRP
  available for reinstatement

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Returning CRP to Production - Costs
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Returning CRP to Production - Costs
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Returning CRP to Production - Costs

• Glyphosate 2 quarts 20.00
• 2,4-D 3.75

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Returning CRP To Production - Example