farmgate: Conservation Programs Will Be Changing, And New Rules Are Coming.
Conservation was one of the priorities of Iowa Senator Tom Harkin who controlled much of the development of the new Farm Bill, and increased funding for conservation was one of the issues that stretched out the debate. So what was the result? There is more money; program rules have changed; and more farmers will be affected by the new conservation policies.
Conservation even has a primary role in the title of the new Farm Bill, which is the Food, Conservation, and Energy Act of 2008. The Congressional Research Service (CRS) analyzed the new policy and compared it with the 2002 Farm Bill. The CRS report to Congress is a starting point for anyone wanting to identify the latest changes in the general policy. Currently, USDA staff members are writing the regulations that will be implemented at local FSA and NRCS offices, and those may not be completed until late in 2008 or early 2009.
In general, changes include eligibility, payment limits, terms of contracts, and program evaluation. There is special consideration also given to beginning farmers, socially disadvantaged farmers, specialty crop producers, and farmers in transition to organic production. Federal spending on conservation is increased by $2.7 billion over the 2002 Farm Bill and will cost $24.3 billion during the life of the program. CRS says, unlike commodity programs, conservation program participation involves many more small and mid-sized farms. But like commodity programs, there are payment limitations.
Conservation programs in the Farm Bill are divided between land retirement and working lands programs.
Land Retirement Conservation Programs:
Within the Conservation Reserve Program, Congress capped the acreage at 32 million, down from its long term cap of 39.2 million. The official reason is to help land owners who have interest in taking land out of the permanent setaside and putting it back into production through a working lands conservation program. Congress also changed some of the rules that would allow CRP to be used for forage production during times of drought, and those call for rental payments to be reduced during that year. Increased attention is given to whether CRP land is benefiting the environment and whether the land owner lives in the proximity of the CRP acreage. And CRP payments can be excluded from self employment taxes for retired or disabled farmers.
The Wetlands Reserve will be expanded from 2.275 million to 3.014 million acres and allows eligibility for land that is habitat to specific wildlife species. There will also be an enhancement program for the WRP acreage similar to the CREP program of the 2002 Farm Bill and deals with grazing rights.
The Grasslands Reserve is expanded by 1.22 million acres. Permanent easements will get 60% of the available funds, and the balance will go to holders of contracts of varying length. Enrollment priority is given to land coming out of the CRP.
Working Lands Conservation Programs
Environmental Quality Incentives Program will received an additional $3.4 billion over the next five years and it funds cost share assistance with certain priorities given to beginning and socially disadvantaged farmers, and to organic producers. Payment limitations for EQIP drop from $450,000 to $300,000 in any 6 year period per entity. Livestock producers will get 60% of the funding, with priority given to those with a comprehensive nutrient management program.
The Conservation Stewardship Program, formerly known as the Conservation Security Program, establishes 5 and 10 year contracts to promote soil, water, air, animal, and plant life improvements, depending on the priorities of the watershed. Payments will be for conservation structure installation, with priorities to beginning and disadvantaged farmers. Payments are limited to $200,000 for any 5 year period.
Summary:
Conservation programs will remain an integral part of the federal farm program, but with minor changes over the next five years. Fewer acres will be in the CRP, but acreage coming out can be transitioned into other conservation programs in an effort to achieve environmental benefits. Payments will have limitations, but several programs will give priorities to certain farmers. Overall, more money will be allocated to soil and water conservation in the new Farm Bill.
Posted by Stu Ellis on August 28, 2008 12:05 AM to farmgate