Transcript Slide 1

Food, Conservation,
and Energy Act of
2008 (Farm Bill)
–PL 110-246
(Signed May 22, 2008, Effective June 18, 2008)
–PL 110-398 – Technical Corrections
(October 13, 2008)
–PL 111-16 – Stimulus Bill
Disclaimer: Provisions provided in this presentation are subject to
change or interpretive differences.
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Topics for Discussion
• Conservation Reserve Program (CRP)
• Grasslands Reserve Program (GRP)
• Voluntary Public Access and Habitat Incentive
Program
• Biomass Crop Assistance Program (BCAP)
• Farm Storage Facility Loan Program
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Conservation Reserve Program
• Acreage cap reduced from 39.6 million to 32
million acres
• Implementation of new 2008 Farm Bill General
CRP delayed until Environmental Assessment
completed
• No general sign up until 2010 probably
• USDA may consider extension of some CRP
contracts on a priority basis, but only 1.5 million
acres available to enroll with 4.5 million acres
expiring September 30, 2009
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Conservation Reserve Program
• CRP will be re-focused and re-targeted for the 21st
century when new rules on evaluation are
published
• CRP cropping history for land eligibility will change
• Pollinator habitat improvement will be emphasized
on CRP
– Native pollinators – bees, butterflies, other insects,
birds, etc., are vital for American Agriculture
– 1 out of every 3 bites of food is dependent on pollinators
– Practice will generally consist of 1 to 3 bunch grasses
and 9 or 10 wildflowers/forbs
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Conservation Reserve Program
• New CRP Aquaculture Wetland Restoration
Practice
– Purpose is to convert commercial pond raised
aquaculture systems to a wetland system
– Established due to import economic losses of the
industry
– Cost share and rental payments will be made to
convert the ponds to wetlands
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Conservation Reserve Program
• Continuous sign up CRP is currently available
for establishment of buffers, waterway, filter
strips, wetland preservation, windbreaks,
hardwood tree establishment and other high
environmental priority practices
• CRP payment limit is $50,000 annually;
payments will be based on direct attribution
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Conservation Adjusted Gross
Income (AGI)
• Adjusted Gross Income will apply where if the
average adjusted gross nonfarm income
exceeds $1 million then the person or legal
entity is ineligible for all conservation program
benefits, unless 66.66 percent or more of the
average AGI was derived from activities related
to farming, ranching, and forestry operations.
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Grasslands Reserve Program
• GRP authority was extended to September 30,
2012
• Enrollment authority is expanded by 1, 220,000
acres
• FSA and NRCS Partnership on implementing
GRP
• 40 percent of the GRP funding will be for 10, 15,
and 20 year rental contracts
• 60 percent of the GRP funding will be for
permanent easements
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Grasslands Reserve Program
• Adjusted Gross Income, AGI, is applicable
• HELC/WC compliance requirements must be
met
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Grasslands Reserve Program
• Sign up for GRP is on a continuing basis with
periodic evaluation periods for program
acceptance (can sign up today!)
• May 15, 2009, is the cut off date to receive
applications to be evaluated for 2009 GRP
• July 1, 2009, approximate date to be notified of
GRP acceptance
• Applications not accepted for 2009 GRP will
remain on file to be evaluated for future years
GRP funding unless withdrawn by the applicant
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Voluntary Public Access
Program
• The Voluntary Public Access Program was included in the
2008 Farm Bill to provide States with an existing Public
Access program an opportunity to access Grant Funds for
their respective State or Tribal governments
• The purpose of the program is to encourage owners and
operators of private farm, ranch, and forest land to
voluntarily make those lands available for wildlife
dependent recreation
• Currently Oklahoma Department of Wildlife Conservation
has a public access program where a landowner receives
a small incentive and participants wanting access to the
land pay ODWC a access permit fee.
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Biomass Crop Assistance Program
(BCAP)
• BCAP is the first FSA program devoted to energy
• BCAP purpose is to support establishment and
production of crops for bio-energy
• Delivered through collaboration with many players
• BCAP proposals are submitted by a group of producers
or by a biomass conversion facility
• Regulations on BCAP will not be published until a
program Environmental Impact Statement is prepared
• Possible implementation in 2010
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Biomass Crop Assistance Program
• BCAP will be available only in an area where a biomass
conversion facility is located
• Land within 25 to 50 miles of the conversion facility may
be eligible for BCAP
• 5-year contract on annual or perennial crops or a 15 year
contract on woody biomass
• Producer payments would be:
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An annual rental payment
Cost share (75%) to establish the biomass crop
Transportation/handling/processing payments
CRP, GRP, and WRP lands are not eligible
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Farm Storage Facility Loan
Program (FSFL)
• The FSA Farm Storage Facility Loan Program allows
eligible producers to make a loan with the agency to
construct on farm commodity storage
• Current interest rate for this program is 2.25% per
annum on a 7-year loan with a $100,000 loan limit
• The 2008 Farm Bill broadened the FSFL program
• The new FSFL provision are not available currently since
the regulation has not been published (possibly available
in the summer 2009)
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New FSFL Provisions
• Eligible storage commodities will include:
– All commodities previously eligible (traditional grain
crops)
– Hay
– Renewable Biomass
– Fruit and Vegetables
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Structures must have a useful life of 15 years
New structures only
Cold storage for fruits and vegetables
Cannot be used for commercial purposes
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New FSFL Terms
• Loan limit = $500,000 per loan
• Loan term:
– $100,000 or less = 7 years
– $100,000.01 to $250,000 = 7 or 10 years
– $250,000.01 to $500,000 = 7, 10, or 12 years
• Interest rate depends on the loan term
• Additional security required for loans > $50,000 such as
a real estate lien or irrevocable letter of credit
• Down payment of 15%
• Construction period = 4 months from application
approval date
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Thank You
Oklahoma Farm Service Agency
www.fsa.usda.gov
www.fsa.usda.gov/ok
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