The Conservation Security Program: Interim Final Rule June 2004

1
The Conservation Security ProgramInterim 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 gt 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

• 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

• New practice cost share max 10,000 over contract
• Contract max is 20,000, 35,000 or 45,000

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 Indexgt 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 gt0.1
• 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 gt44
• 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
Blue Earth River Basin Land Use and Acres
32
Blue Earth River Basin Land Use Percentages
33
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
NRCS and SWCD

• 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