Conservation and Environmental Programs
Conservation and environmental programs, particularly
the Conservation Reserve Program (CRP), play an important
role in agricultural production decisions. Producers receive
cost-share payments, or rental or other direct payments
in return for using specified environmentally friendly
farming practices or for setting aside land in conserving
uses.
The Conservation Reserve Program is the primary
conservation program. Under the voluntary CRP, farmland
owners submit bids to retire highly erodible and other
environmentally sensitive cropland from production for
10 to 15 years. Farmers receive a cost-share payment to
establish a permanent cover crop and annual rental payments
for retiring land and maintaining specified conservation
practices. The CRP is funded through the Commodity Credit
Corporation budget. The maximum CRP area was set at 39.2
million acres.
Conservation Security Program provides incentive
payments to farmers to assist in implementing and maintaining
various conservation practices on working lands. Funded
through the CCC.
Under the new Conservation Security Program, producers
must develop and submit a conservation plan to USDA that
identifies the resources and designated land to be conserved.
The plan would include conservation practices that fall
within one of three tiers provided in the program. Producers
enter into conservation security contracts that provide
a base payment for the conducting practices designated
in the conservation plan. The base payment rate would
be based on the average county rental rate for the use
of similar land during the 2001 crop year, or another
average county rate for the 2001 crop year as determined
by USDA. Producers may also be eligible for bonus payments
implementing additional conservation measures.
The program establishes three tiers of conservation activities.
Tier I—basic conservation practices such
as soil erosion and nutrient management
- $20,000 payment limit
- 5 percent of base rate for land covered
- 75 percent of the average county cost of adopting
or maintaining land and vegetative practices (90 percent
for beginning farmers or ranchers)
- bonuses are available for certain practices such
as maximizing conservation benefits; addressing national
priority concerns; participating in research, demonstration,
or pilot programs; and recordkeeping, monitoring,
and evaluation
Tier II—crop rotations and wildlife protection
practices that provide resource management systems for
the entire farm
- $35,000 payment limit
- 10 percent of base rate for land covered
- plus other tier I payments for practices
- bonus payments for implementing practices that exceed
standards
Tier III—plan than fosters long-term sustainability
of natural resource base of the farm
- $45,000 payment limit
- 15 percent of base rate for land covered
- bonus payments similar to tier II bonuses
Other programs of note include:
- The Wetlands Reserve Program (WRP) is a voluntary
program to restore and protect wetlands on private property.
WRP provides an opportunity for landowners to receive
financial incentives to enhance wetlands in exchange
for retiring marginal agricultural land.
- Conservation Technical Assistance assists farmers
in planning and implementing conservation systems to
reduce erosion, improve soil and water quality, improve
and conserve wetlands, enhance fish and wildlife habitat,
improve air quality, improve pasture and range condition,
reduce upstream flooding, and improve woodlands.
- The Environmental Quality Incentives Program (EQIP)
provides technical, educational, and financial assistance
to eligible farmers and ranchers to address soil, water,
and related natural resource concerns on their lands
in an environmentally beneficial and cost-effective
manner.
For Specific Program Details...
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