Conservation and Livestock Programs in the Farm Bill

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Conservation and Livestock Programs in the Farm
Bill

• Curt Lacy
• Extension Economist - Livestock

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Major Programs of Interest

• Graze-Out
• EQIP
• Conservation Security Program
• Conservation Reserve Program

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Graze- Out Program
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Graze-Out Program Particulars

• LDP available on wheat oats
• Only solid stands
• No mixtures (wheat/rye, oats/ryegrass, etc.)
• Overseeded pastures not eligible
• Yields
• Based on farm yield
• If N/A then base yield
• PCP
• Wheat 2.45/bu
• Oats - 1.22/bu

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Graze-Out Program Particulars

• Important dates
• Earliest date earliest date that the crop could
  be harvested as set by the county committee
• Last date March 31 following the year the crop
  could be harvested. For wheat planted Fall of
  2001 ? March 31, 2003

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Environmental Quality Incentives Program (EQIP)
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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.

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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.

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2002 EQIP Funding

• 9 billion total budget
• GA 2002 - 4,002,717
• 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

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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.

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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

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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/

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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/pd
  f/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/pd
  f/WHIPFct.pdf

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WRP Acres
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Conservation Security Program
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Conservation Security ProgramTitle II Subtitle
A Section 2001

• Program for FY03 through FY07
• to assist producers of agricultural operations
  in promotingconservation and improvement of the
  quality of soil, water, air, energy, plant and
  animal life, and other conservation purposes as
  determined by the Secretary.
• 2 billion allocated

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Conservation Security Program

• Producers must have an approved plan
• Only eligible for payment equal to the share of
  the proceeds from the operation
• Available for all farmland (crop, grass, pasture,
  range, and prairie) except land in CRP, WRP, GRP,
  and land that is sodbusted i.e., converted to
  crops after enactment that had not been planted
  or considered planted in 4 of last 6 years

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Conversation Security Program

• Covered costs for adoption of new management,
  vegetative, and land-based structural practices
• Maintenance of existing land management and
  vegetative practices
• Maintenance of approved existing land-based
  structural practices but not already covered by a
  Federal or State maintenance requirement

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Conservation Security Program
APC Average Practice Cost
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Conservation Security ProgramEnhanced Payments
for

• Multiple conservation practices
• Address local conservation priorities
• Participates in on-farm conservation research,
  demonstration, or pilot project
• Watershed or regional resource conservation plan
  involving at least 75 of producers
• Carry out assessment and evaluation activities
  for conservation security plan

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Conservation Security ProgramPractices

• nutrient management
• integrated pest management
• water conservation
• grazing, pasture, range management
• soil conservation, residue management
• invasive species management
• fish wildlife habitat management

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Conservation Security ProgramPractices (cont)

• air quality management
• energy conservation measures
• biological resource conservation
  regeneration
• contour farming
• strip and cover cropping
• controlled rotational grazing

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Conservation Security ProgramPractices (cont)

• resource conserving crop rotation
• conversion of portion of cropland from soil
  depleting to soil conserving use
• partial field conservation practices
• native grass prairie protection
• any other practices the Secretary determines
  appropriate and comparable to the other practices

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Conservation Security ProgramContracts

• Tier I can be renewed for 5 to 10 years with
  additional acres or practices
• May be modified with approval required with
  changes in operation that significantly
  interferes with achieving purposes of CSP
• A producer may terminate without refund if in
  compliance at termination
• Change of land interest terminates contract
  unless continuation notice in 60 days

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The Conservation Reserve Program
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The Legislative History of CRP

• Established by the Food Security Act of 1985.
• Re-authorized by the Food, Agriculture,
  Conservation, and Trade Act of 1990.
• Re-authorized by the Federal Agriculture
  Improvement and Reform Act of 1996.
• Re-authorized by the Farm Security and Rural
  Investment Act of 2002.

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Location of CRP Enrollment, October 2000
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CRP Under the Farm Security and Rural Investment
Act of 2002

• USDA resources are going to be directed at
  expanded and new conservation programs CRP will
  receive divided attention. Third-party providers
  of technical assistance will be used in the
  implementation of CRP Contracts.

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Pilot Program for Wetland and Buffer Acreage in
CRP (continued)

• The owner or operator shall
• Restore the hydrology to the maximum extent
  practicable
• Establish vegetative cover (which may included
  emerging vegetation in water)
• Sec. 1231 (h)(3A and 3B)
• The Secretary may enroll in the conservation
  reserve under this section not more than a total
  of 1,000,000 acres nationally or move the 100,000
  acres in any one state.
• Sec. 1231 (h)(2C)
• Enrollment will be available through continuous
  signups.
• Sec. 1231 (h)(4B)

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One-year Contract Extension Under the Farm
Security and Rural Investment Act of 2002

• One-year Extension In the case of a contract
  described in paragraph (1) the term which expires
  during calendar year 2002, an owner or operator
  of land enrolled under the contract may extend
  the contract 1 additional year. Sec. 1231
  (e)(3)
• Farm Service Agency data indicate that
  approximately 1,723,000 acres are under CRP
  contracts expiring 9/30/2002.

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CRP Cropping History Under the Farm Security and
Rural Investment Act of 2002

• Eligible land will include highly erodible
  cropland that the Secretary has determined a
  cropping history or was considered planted for 4
  of the 6 years preceding the date of enactment of
  the Act. Sec. 1231(b)(1)(B)
• Previously the requirement was 3 of the 5 years
  preceding the close of enrollments.

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Implementation of CRP

• The current fiscal year continuous signup is
  available.
• The next general CRP signup can realistically
  be expected in early calendar year 2003 1-year
  extensions are available for expiring contracts.
• The implementation rules that prevailed under
  FAIR will generally be continued
• One change will be the cropping history on
  eligible land (must have been cropped on
  considered planted in 4 of the 6 years prior to
  May 13, 2002.)
• There will be early emphasis placed on rules
  managed harvesting and grazing of CRP lands.

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The Grassland Reserve Program
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Funding Level and Duration of the Grassland
Reserve Program

• A total of 254,000,000 has been provided for the
  program.
• The program is funded at this level for the
  5-year period of fiscal year 2003 through fiscal
  year 2007.
• Sec. 1241 (a) (5)

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Maximum Enrollment

• The total number of acres enrolled shall not
  exceed 2,000,000 acres of restored or improved
  grassland, rangeland, and pastureland.
• Minimum size 40 acres
• Sec. 1238 N (b) (1)

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Easement Payments

• In return for granting an easement by an owner,
  the Secretary shall make easement payments to the
  owner in an amount equal to
• In the case of a permanent easement, the fair
  market value of the land less the grazing value
  of the land encumbered by the easement and
• In the case of a 30-year easement or an easement
  for a maximum duration allowed state law, 30
  percent of the fair market value of the land less
  the grazing value of the land for the period
  during which the land is encumbered by the
  easement.
• Easement payments may be provided in not less
  than 1 payment nor more than 10 annual payments
  or equal or unequal amounts.
• Sec. 1238 P (b)(1) (A and B)

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Rental Payments

• In return for entering into a rental agreement by
  an owner, the Secretary shall make annual
  payments to the owner during the term of the
  rental agreement in a amount not more than 75
  percent of the grazing value of the land covered
  for the contract.
• Sec. 1238 P (b)(2)

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Expectations in the Implementation of the
Grassland Reserve Program

• The motivation for this program came from
  livestock industry concerns about the breaking
  out of range and urban encroachment on
  grasslands.
• Implementation will initiated in fiscal year
  2003.
• With a finite limitation of 254,000,000 for the
  period of the Act, competition for enrollment
  will likely be intense.
• For the 40 of funds devoted to 10,15 and 20-year
  rental agreements, it is expected that signup and
  enrollment will be conducted in a manner similar
  to the methods currently in use for the CRP.

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Expectations in the Implementation of the
Grassland Reserve Program (continued)

• For the 60 of funds to be devoted to 30-year
  agreements and easements, or permanent easements,
  it is expected that methods similar to those used
  for WRP. The Wetlands Reserve Program uses
  long-term easements and restoration cost-share
  agreements.
• It is anticipated that the standards for grazing
  should be no more stringent than for programs
  such as CRP, the Conservation Security Program,
  or the Farmland Protection Program.

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Expectations in the Implementation of the
Grassland Reserve Program (continued)

• There does not appear to be any per person
  payment limitation expressed in the statute.
• Some of the eligible lands under pressure from
  urban encroachment may also be eligible under the
  Farmland Protection Program.

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Other Notes

• August 23 is when all details will be available
• Contact your NRCS or FSA office for full details

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