Transcript Food, Conservation & Energy Act of 2008

Title II: Conservation
Andy Seidl, Colorado State University
Working lands, Preservation & Reserve Programs

Preservation:

Reserve:



◦ Farm and Ranchland Protection Program (FRPP)
◦ Wildlife Habitat Incentives Program (WHIP)
◦ Conservation Reserve Program (CRP)
◦ Wetlands Reserve Program (WRP)
◦ Grasslands Reserve Program (GRP)
NRCS programs except CRP (FSA):
http://www.nrcs.usda.gov/programs/farmbill/2008/i
ndex.html
http://www.nrcs.usda.gov/programs/farmbill/2008/
ataglance.html
General eligibility: <$1 million gross nonfarm income
OR >2/3 of income from farming.

Do not appeal to ‘environmental ethic’; people react to
incentives.
Typically are authorized/appropriated $$, not mandatory.
Preservation Programs:

Reserve Programs:


◦ Stewardship of public goods attributes of agriculture.
◦ More popular when ag prices are low.
◦ Can be at cross-purposes with ‘working lands’ and ‘commodity’
programs.
◦ ‘Green box’ under WTO environmental norms.
◦
◦
◦
◦

Supply management.
Popular when ag prices are low; Not popular currently.
Consistent with preservation program and Title I objectives.
‘Green box’ under WTO structural adjustment norms.
Are INELIGIBLE for new Cooperative Conservation
provisions.

Conservation easement driven
◦ Goal is to maintain public goods attributes of
private lands stewardship.
◦ Some call for consolidation under “Private Lands
Protection” program.
◦ Landowner voluntarily agrees to a deed restriction
and/or landscape restoration in exchange for
compensation.
◦ Can be permanent or term.

Federal tax deduction for donated easements
extended through 2009.






Where to go:
http://www.nrcs.usda.gov/programs/frpp/
Authorized as FPP in 1996.
FRPP as of 2002.
533 thousand acres enrolled to date.
Currently, $97 million/yr (authorized), $50
million appropriated.
Provides match of up to 50% of fair market
easement value to local govt’s or NGOs for
easement purchases.







$773 million total authorized budget over bill.
Ramping to $200 million authorized annual budget.
“Protecting topsoil” becomes “protecting agricultural
use and related conservation values of the land.”
Allows for longer term agreements with cooperators
(5 yrs if certified, 3 yrs if not).
Certification process made easier.
Secretary does not purchase easements, rather
facilitates their purchase.
Secretary may require enforcement provisions in the
easement that are not subject to Federal land
acquisition standards.






Where to go:
http://www.nrcs.usda.gov/programs/whip/
Technical and financial assistance to improve
wildlife habitat.
Not as focused on working landscapes, more
on supplemental or alternative land
management.
Currently $40 million annual program.
5-10 yr agreements.
Focused in NE and West Coast.







Non-ag, state, county and local public lands now
INELIGIBLE.
Private ag, Non-industrial private forest, tribal
lands are ELIGIBLE.
Pivot corners and other irregular areas are
ELIGIBLE.
25% of funds (up from 15%) are for long term
(>15 yr) agreements.
Priority to state, regional and national
conservation objectives.
Authorized at $85 million per year.
Payment cap of $50K per year.




Based on long term contracts and cost-share
agreements for technical assistance.
Originally a supply control measure.
Take fragile/targeted lands out of production,
therefore out of economy.
Targeted lands have significant public good
attributes and relatively low private benefits
in agricultural production.









Where to go:
http://www.fsa.usda.gov/FSA/webapp?area=home&subjec
t=copr&topic=crp
Established 1985 to prevent soil erosion and control crop
supply.
Annual rental payments based on the agricultural rental
value of the land.
10-15 yr rental contracts.
Focused in Great Plains.
‘Green box’ under WTO structural adjustment criteria.
Now, 37 million acres enrolled, more emphasis on
environmental side.
15 million acres expired in 2007, 12 million re-enrolled
through REX program.
12.5 million additional acres due to expire by 2010.









Authorizes 39.2 million acres for 2009
32 million acres 2010-2012
CREP waiver of 25% hot spot limits.
Purpose expanded to include broader scale conservation
initiatives
Cropping history requirement 4 of 6 yrs, 2002-2007.
Payment limit of $50K per year.
Allows existing contract adjustments (2 yrs extra
payments) if transferring to special status farmers and
ranchers.
Exceptions for biofuel production, wind turbines and some
grazing (with payment reductions).
Farmable wetland program (FWP) expanded.
◦ Eligible acreage definition loosened.
◦ 1 million acre limit, 100,000 per state.







Where to go: http://www.nrcs.usda.gov/programs/wrp/
Established 1990
Goal: Max wetland function, value and wildlife habitat on
enrolled acres.
2002: Reauthorized to max of 2,275 million acres.
2007: 1,837,671 acres & annual enrollment of 250,000
acres.
Tends to focus in Florida, California and Mississippi River
Basin.
3 enrollment options:
◦ Permanent easement, pays up to 100% of easement value and
restoration costs
◦ 30 yr easement, 75% each
◦ Restoration Cost-Share agreement, 75% of restoration costs.






Expands to 3.041 million acres (up by
766,200 acres) and $1.3 billion.
Establishes WREP.
Establishes payment schedule based on size
of easement value (+/- $500K)
Establishes similar process for determining
easement value as other preservation
programs.
Land that has changed ownership within past
7 yrs is INELIGIBLE.
$50K annual cap on restoration payments.




New in 2002.
Currently, 250 easements covering 115,000
acres.
Restores and protects grassland, rangeland,
pastureland and shrub land.
Emphasizes support for working grazing
operations.


Adds 1.22 million acres and $300 million in new
authorized funding.
Allows for short term contracts, easements and
cooperative agreements.
◦ Permanent easements.
◦ 10, 15, 20 yr rental contracts.
◦ 50% cost share restoration agreements





Provides priority for expired CRP acres.
◦ Limit 10% of total enrolled acres per year.
Eligible land expanded to those with historical or
archeological resources or that meet state, regional or
national conservation priorities.
Requires grazing management plan.
Same easement requirements as FRPP.
$50K annual payment limit.



Shorter term agreements are more often allowed.
Some increases in authorized funding.
Some increases in local control, not state block
grants.
◦ ‘issues raised by state, regional and national conservation
initiatives.’
◦ 3rd party certification process and appraisal process
streamlined.



No revolutionary changes.
Continued trend toward working lands programs and
away from preservation programs.
Greater flexibility for farmers & ranchers may
increase popularity of programs, but may also
decrease long term effectiveness in achieving
environmental goals.