CONSERVATION RESERVE PROGRAM CRP 26 FSRIA 2002

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CONSERVATION RESERVE PROGRAMCRP 26 FSRIA 2002

• The University of Georgia
• Cooperative Extension Service

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ACKNOWLEDGEMENTS

• Mr. Clark Weaver
• Chief Price Support, Conservation, and
  Compliance Division
  GA State Office USDA/FSA
• Dr. Curt Lacy
• Extension Specialist Farm Management and
  Livestock
• The University of Georgia
• Dr. Larry Sanders
• Extension Economist
• Oklahoma State University

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What is the Conservation Reserve Program (CRP)?

• CRP is a voluntary long-term cropland diversion
  program
• CRP relies upon positive economic incentives to
  entice owners, operators, and landlords to
  convert cropland and other environmentally-sensiti
  ve lands to a conserving use.
• Usually 10-year contracts are developed although
  some contracts are up to 15 years in duration.

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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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CRP Goals Under the Food Security Act of 1985
(FSA)

• Primary Goal Reduce soil erosion
• Secondary Goals
• Protect the long-term capacity to produce food
  and fiber
• Reduce sedimentation
• Improve water quality
• Create fish and wildlife habitat
• Curb production of surplus commodities
• Provide farm income support
• Assisting producers to meet HEL compliance.

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CRP Goals Under the Food, Agriculture,
Conservation, and Trade Act of 1990 (FACT)

• Primary Goal
• Emphasis on those goals specified in the prior
  act that would contribute most to the public good
• Secondary Goals
• Help cropland owners and operators control
  erosion on their cropland
• Reduce sedimentation and other surface water
  quality problems
• Address ground water quality problems

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CRP Goals Under the Federal Agriculture
Improvement and Reform Act of 1996 (FAIR)

• Primary Goals
• Assist owners and operations in cost-effectively
  conserving and improving the nations natural
  resources.
• Protect the nations soil, water, and wildlife
  resources.
• Improve and preserve water quality.
• Enhance fish and wildlife habitat.
• Protect identified national conservation priority
  areas.

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The Continuous Signup CRP Implementation Rules
Under FAIR

• Was available to enroll selected acreages into
  certain high priority conservation practices.
• Each tract had its own maximum CRP rental rate
  (known prior to bidding).
• The bids were not subject to an environmental
  benefit index evaluation.

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The Continuous Signup CRP Implementation Rules
Under FAIR

• The acreage must have been determined by NRCS to
  be eligible and suitable for any of the following
  practices riparian buffers, filter strips, grass
  waterways, shelter belts, field windbreaks,
  living snow fences, contour grass strips, salt
  tolerant vegetation, or shallow water areas for
  wildlife.
• Practice incentive payments (PIP) from 10 to 20
  percent above the soil rental rate were offered
  for some practices.

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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

• Goals
• FSA Primary Program (NRCS support)
• Target Enrollment
• Pilot for Wetland and Buffer Acreage
  (continuation)
• Managed Harvesting and Grazing
• CRP Cropping History

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CRP Goals Under the Farm Security and Rural
Investment Act of 2002

• Goal
• Through the 2007 calendar year, CRP shall assist
  owners and operators of land to conserve and
  improve soil, water, and wildlife resources of
  such land. Sec. 1231(a)

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Maximum Enrollment for CRP Under the Farm
Security and Rural Investment Act of 2002

• The Secretary shall maintain up to 39,200,000
  acres in the conservation reserve program at any
  1 time during the 2002 through 2007 calendar
  years (including contracts extended). Sec. 1231
  (d)
• The previous maximum under the FAIR Act was
  36,400,000 acres.

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CRP Cropping History Under the FSRIA

• 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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CRP Program Overview

• CRP 26 5-30 May 03
• 2.8 mil acres in FY04 budget proposal
• 5-7 mil acres expected to be offered
• Process Environmental Benefits Index
• (EBI) ranking plus cost
• 7.8 mil ac may be enrolled thru 2006

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CRP Program Overview

• County cropland limitation of 25 applies to CRP
  (including continuous signup FWP) WRP
• Technical Service Providers (TSPs)
• Anyone providing technical assistance for CRP
  certified by NRCS
• State agencies and Extension will assist with
  education and support

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CRP Payments

• Rental Payments annualized for life of
  contract. FSA bases rental rates on the relative
  productivity of the soil and the average dryland
  cash rent. The maximum CRP rental rate is
  calculated in advance of enrollment. Producers
  have the option to offer lower than maximum rate.

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CRP Payments

• Maintenance incentive payments CRP annual
  rental payments may include up to 5.00 per acre
  to perform certain maintenance obligations. Will
  almost always be included.
• Cost share assistance FSA will pay not more
  than 50 of the participants cost in
  establishing approved practice

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CRP Producer Eligibility

• Individuals, associations, trusts, other legal
  entities, local governments, Indian Tribal
  ventures, corporations, joint stock companies,
  estates, state governments, joint operations
• For owners owned land for 12 mo. before close of
  general signup (some exceptions)

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CRP Producer Eligibility

• For operators operated land for 12 mo. before
  close of current signup AND provides satisfactory
  evidence that control of land will continue
  uninterrupted for entire period
• Person must be eligible to offer land in own right

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CRP Land EligibilityCropland Criteria

• Two Conditions must be met
• Planted/considered planted to agricultural
  commodity during 4 of 6 crop years 96-01
• Physically legally capable of being planted in
  normal manner to ag commodity

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CRP Land EligibilityCropland Criteria

• Planted/considered planted
• Prevented planting that received crop insurance
  indemnity
• Previously enrolled in CRP
• Conserving use land
• Incidental field margins
• For signup 26, acres in CRP scheduled to expire
  30 Sep 03

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CRP Land Eligibility

• Changes in criteria
• RUSLE (Revised Universal Soil Loss Equation), not
  USLE, for EI (Erosion Index)
• EI calculated on tract, not field basis

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CRP Land Eligibility

• Land Eligibility Criterialand must meet at least
  one of these criteria
• EI gt or 8 on 3 predominant soils offered on the
  tract
• Expiring CRP 30 Sep 03
• Within state conservation priority area (CPA)

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CRP CPAs

• State Water Quality Priority Areas/Zones are
  awarded bonus points toward EBI total (0 to 30
  pts)
• National Wildlife Priority Areas/Zones are
  awarded bonus points toward EBI total (0 to 30
  pts)

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EXPIRING CRP

• Current contracts expiring this fall (1.5 million
  acres) are eligible for new contract offers for
  Oct 03 or Oct 04

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CRP Land EligibilityIneligible acreage

• Permanently under water
• Land under another conservation program that
• Has had permanent cover
• Scheduled to have permanent cover established
• Land in CRP, unless expiring 30 Sep 03
• Existing grass waterways
• If producer notified by regulatory agency of a
  violation

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CRP Permissive Uses

• Managed haying grazing
• Emergency haying grazing
• Incidental grazing
• Wind turbines
• Carbon credits/biomass
• Restrictive grazing (nesting periods)

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CRP

• FSA calculates Environmental Benefits Index
  Ranking
• Cover planted or not planted
• Water Quality
• Cost Share or waiver
• Soil erodibility or EI (erodibility index)

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CRP

• Environmental Benefit Index Factors
• Wildlife N1
• Water quality N2
• Erosion N3
• Enduring Benefits N4
• Air Quality N5
• Cost N6

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Wildlife - N1

• Cover 10 to 50 pts
• Wildlife Enhancement 0, 5, 20 pts
• Wildlife zones 0 or 30 pts (none in GA)
• Maximum accumulation 100 pts

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Water Quality N2

• Water Quality Zone 0 or 30 pts (State
  designated)
• Ground Water Quality 0 - 25 pts (leaching
  index ltGA)
• Surface Water Quality 0 - 45 pts (impacted
  watersheds
• specifically sediment)
• Maximum accumulation 100 pts

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Erosion N3

• Use higher value of either Water or Wind Erosion
  Index (No wind in GA)
• The water EI value is based on weighted average
  value for the 3 predominant soils in the tract
• The EBI ranking comes from tables relating the EI
  score
• Maximum accumulation 100 pts

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Erosion EI Calculation

• Water EI (RUSLE) (RKLS)/T
• R Rainfall factor (table)
• K Soil erodibility (table)
• LS of slope and length (table)
• T Soil loss tolerance rate (table)

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Enduring Benefits N4

• Enduring benefits 0 to 50 pts
• Practice will persist beyond the contract period
• Weighted average of practice scores
• Maximum accumulation 50 pts

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Enduring Benefits N4

• New hardwood (CP3A) 50 pts (includes Longleaf
  pine)
• Existing hardwood (CP11) 40 pts
• New pine/softwood (CP3) 30 pts
• Existing pine (CP11) 20 pts

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Air Quality N5

• Reduction of airborne dust and particulate by
  created by wind erosion
• Reduction of Greenhouse Gas emissions by carbon
  sequestration
• NO Wind Erosion or Air Quality Zones in GA
• Carbon Sequestration only score for GA

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Air Quality N5

• Maximum accumulation 45 pts
• For Georgia CRP captures Carbon in plant and root
  growth improving soil organic matter
• CP3, CP3A, CP11 10 pts
• CP4B, CP4D (wildlife habitat) 4 pts
• CP1, CP2, CP10 (grass) 3 pts

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Cost N6

• Optimize environmental benefits per dollar for
  CRP rental payments and cost share
• N6 N6a N6b N6c
• N6a determined by Secretary after signup lower
  per acre rental rates will get higher points
• N6b is 0 for cost share and 10 pts for no cost
  share incurred by FSA

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Cost N6

• N6c is offer less than maximum calculated rate at
  0 to 15 points
• N6c points equal one point for every whole dollar
  reduction from maximum not to exceed 15 points
• Example Max Rate 45.50
• Rental offered 42.00
• N6c points 3

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Cost N6

• N6 maximum accumulation unkown
• Becomes bidding process as rankings will be
  dependent on practices and total dollars
  available will dictate number of acres in each
  state

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Offer Acceptance

• After May 30, 2003, FSA will determine EBI
  thresholds for acceptance
• EBI cutoff is determined from analyzing and
  ranking all eligible offers
• This is a highly competitive program and previous
  EBI scores are not guaranteed a contract under
  CP26

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Enhancing Competitiveness

• Plant the highest scoring cover mix
• Offer only the most environmentally sensitive
  land. Offering land with the highest EI will
  improve score
• Enhancing covers for wildlife by developing
  permanent water sources. Plant and manage
  hardwood or softwood trees that increase wildlife
  habitat values

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Enhancing Competitiveness

• Consider accepting a lower payment rate than the
  maximum amount that FSA will offer.
• Consider absorbing practice cost totally and
  refusing cost share. Those 10 points may make
  the difference.
• Work with resource agencies to maximize EBI points

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CRP Vegetative MatrixWildlife Habitat Cover
Benefits N1

• CP1 Permanent Introduced
• grasses and legumes
• CP2 Permanent native grass est.
• CP3 Tree planting (general)
• CP3A Hardwood Tree Planting
• and Longleaf pine
• CP4B Permanent Wildlife Habitat
• corridors

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CRP Vegetative MatrixWildlife Habitat Cover
Benefits N1

• CP4D Permanent Wildlife Habitat
• CP10 Vegetative cover grass
• already established
• CP11 Vegetative cover trees
• already established
• CP12 Wildlife food plot
• CP23 Wetlands restoration

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CRP Continuous Signup

• Producers plant long term resource conserving
  covers to improve water quality, control soil
  erosion, and enhance wildlife habitat.
• Offers are automatically accepted if land and
  producer meet eligibility requirements. 10 to 15
  year contracts available. (No EBI ranking)

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CRP Continuous Signup

• Riparian buffers
• Wildlife habitat
• buffers
• Wetland buffers
• Filter strips
• Wetland restoration

• Grass waterways
• Shelterbelts
• Living snow fences
• Contour grass strips
• Shallow water areas for wildlife

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CRPContinuous Signup

• Authorized 2 million total acres
• Apply at any time, usually small acres
• Cropland or Marginal pasture land
• Cost share
• Rental payments
• CRP-SIP Signing Incentive Payment
• CRP-PIP Practice Incentive Payment

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CRP Continuous Signup Payments

• Annual rental payments same maximum rate
  calculation as periodic signups. Producer knows
  rate and can offer less.
• 50 cost share available
• SIP 100 to 150 per acre one time
• PIP 40 of eligible installation costs
• for certain practices one time

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SUMMARY

• Potential participants must do their homework
  (technical assistance)
• Highly competitive structure will encourage
  bidding down with rental rates
• Mixing practices on most environmentally
  sensitive soils will maximize acceptance when
  cost (N6) is optimized

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Wes Harris Extension CoordinatorBulloch
CountyThe University of GeorgiaCooperative
Extension Servicewlharris_at_uga.edu