Title II:
Conservation

Highlights

Title II
Conservation

The legislation emphasizes conservation on working land by increasing funding for the Environmental Quality Incentives Program and establishing a new Conservation Security Program, which pays producers to adopt or maintain practices that address resources of concern. Land retirement programs are expanded, placing particular emphasis on wetlands. Funding is expanded for farmland protection. A new Grassland Reserve is created to assist landowners in restoring and conserving grassland. A new provision aims at ensuring regional equity in conservation funding.

Provisions

1996-2001 farm legislation

2002 Farm Bill

Conservation compliance for soil erosion and wetlands.

Highly erodible land conservation (conservation compliance/ sodbuster)

Highly erodible land conservation provisions denied certain farm program benefits to producers not using an approved conservation system on highly erodible land in crop production.

Highly erodible land conservation provisions are continued. The Secretary cannot delegate authority to make a compliance determination to a private person or entity.

Wetland conservation (swampbuster)

Wetland conservation provisions denied certain farm program benefits to producers who drained wetland to make it ready for crop production.

Wetland conservation provisions are continued. The Secretary cannot delegate authority to make a compliance determination to a private person or entity.

Provisions

1996-2001 farm legislation

2002 Farm Bill

Land retirement, including CRP, CREP, the Wetland Pilot Program, and WRP.

Comprehensive Conservation Enhancement Program (CCEP) enables the Secretary to operate the various conservation programs in a consistent manner.

Environmental Conservation Acreage Reserve Program (ECARP) included the Conservation Reserve Program (CRP), Wetlands Reserve Program (WRP), and the Environmental Quality Incentives Program (EQIP).

ECARP is renamed Comprehensive Conservation Enhancement Program (CCEP). Authority for Conservation Priority Areas is eliminated here and in the Environmental Quality Improvement Program (EQIP), but retained in the Conservation Reserve Program (CRP).

Conservation Reserve Program (CRP) offers annual rental payments and cost-share assistance to farmers to establish long-term conserving covers (e.g., grass and trees) on eligible land. Contracts are for a minimum of 10 years and a maximum of 15 years.

CRP area was capped at 36.4 million acres.

Maximum acreage is increased to 39.2 million acres.

Land was eligible for CRP enrollment if it was cropped in 2 of past 5 years and met 1 or more of the following criteria:
• Had an erodibility index (EI) of 8 or higher;
• Was considered a cropped wetland;
• Was associated with or surrounding noncropped wetlands;
• Was devoted to a highly beneficial environmental practice (e.g., filter strips);
• Was subject to scour erosion;
• Was located in national or State CRP conservation priority areas.
• Was marginal pastureland in riparian areas.

Certain marginal pastureland that was enrolled in the Water Bank Program is also eligible.

Eligibility changes:
• Highly erodible land must have been cropped in 4 of the 6 years prior to 2002.
• Land under expiring contracts is automatically eligible to be considered for re-enrollment.
• Contracts expiring during 2002 can be extended by 1 year.
• Requires existing covers be retained, if feasible, when expiring contracts are re-enrolled.

Requires an equitable balance among conservation purposes of soil erosion control, water quality protection, and wildlife habitat.

Haying and grazing could be permitted on CRP land during drought emergencies.

Allows managed haying and grazing (including the harvest of biomass) and placement of wind turbines, if consistent with the conservation of soil, water quality, and wildlife habitat, with commensurate reduction in payment.

Requires study on economic effects of CRP enrollment.

CRP Wetland Enrollment Pilot Program allows enrollment of farmed wetland acres in the CRP.

Pilot program was established in the 2001 Agricultural Appropriation Act. Enrollment of wetland and associated buffers was limited to a total of 500,000 acres in 6 States: Iowa, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. No more than 150,000 acres could be enrolled in any single State.

Wetland acres are to be enrolled through a continuous sign-up similar to that for other high-priority conservation practices. Payments are to be commensurate with those provided to landowners who enroll filter strips in CRP.

Continues Wetland Enrollment Pilot Program, extending it to all States and increasing the enrollment cap to 1 million acres (part of overall CRP acreage cap). Enrollment is limited to 100,000 acres in any 1 State, but could, within 3 years, be increased to 150,000 acres following a review of enrollment by the Secretary.

Individual contracts were limited to 5 wetland acres plus buffer acreage, and no more than 40 acres per tract.

Contracts can include up to 10 acres of wetland, although not more than 5 would be eligible for payment. Buffer acreage is limited to 3 times the wetland acreage.

CRP continuous sign-up for high-priority practices allows enrollment of land in riparian buffers, filter strips, grass waterways, and other high-priority practices without competition. Acres enrolled under continuous sign-up count toward the overall CRP acreage cap.

CRP continuous sign-up (land can be enrolled at any time, not just during designated sign-up periods) was initiated administratively in September 1996 under general CRP program authority. Land suitable for a high-priority practice could be enrolled without competition and generally at a higher annual payment rate than land enrolled in a general CRP sign-up.

Authority for program continues.

Producers may enroll entire fields as buffers through the continuous sign-up when more than 50% of the field is eligible (through continuous sign-up) and farming is infeasible on the remainder of the field. Payments on the remaining acreage are limited to general sign-up rates.

Conservation Reserve Enhancement Program (CREP) is a joint State-Federal program that targets specific agriculture-related environmental problems that are significant at the State or national level. Acres enrolled under CREP count toward the overall CRP acreage cap.

CREP was initiated administratively under general CRP program authority.

Authority for program continues.

Wetlands Reserve Program (WRP) enables the Secretary to purchase long-term or permanent easements and provide cost sharing to producers who agree to restore wetland on agricultural land. Restoring wetlands wildlife habitat is a priority.

WRP area was capped at 1.075 million acres.

Maximum acreage cap is increased to 2.275 million acres. The Secretary is required, to the extent practicable, to enroll 250,000 acres per calendar year.

Wetland could be restored through permanent easements, long-term easements (30 years or the maximum allowed by State law), and restoration cost-share agreements without easements. Requires one-third of acreage to be allocated to permanent easements, long-term easements, and restoration agreements.

Wetlands are to be restored through permanent easements, 30-year easements, restoration cost-share agreements, or any combination of these options. Removes requirement for one-third of acreage in each type of agreement.

Provisions

1996-2001 farm legislation

2002 Farm Bill

Working lands, including EQIP, CSP, and other programs providing assistance on lands in production.

Environmental Quality Incentives Program (EQIP) provides technical assistance, cost-share payments, and incentive payments to assist crop and livestock producers with environmental and conservation improvements on the farm.

Funding authorized at $1.3 billion over 7 years.

Mandates Commodity Credit Corporation (CCC) funding of:
• $400 million in fiscal year (FY) 2002,
• $700 million in FY 2003,
• $1.0 billion in FY 2004,
• $1.2 billion in each of FY 2005 and 2006, and
• $1.3 billion in FY 2007.

Cost sharing limited to 75% of practice cost.

Continues 75% cost sharing, but allows 90% cost-share rate if producer is a limited-resource or beginning farmer or rancher.

At least 50% of program funding had to be used for environmental concerns associated with livestock production.

Funding for livestock producers is targeted at 60% of annual program funding.

Large operators, as defined by the Secretary, were ineligible for cost-sharing assistance to construct animal waste management facilities.

Removes animal unit cap for cost-share eligibility.

Evaluation of contract offers based on:
• location in conservation priority area (CPA);
• maximization of environmental benefits per dollar of program expenditure.

Evaluation of contract offers based on:
• use of cost-effective conservation practices;
• use of practices that address national priorities;
• optimization of environmental benefits is a purpose of the program.

CPAs are no longer used. Bidding down is eliminated, i.e., for applications with comparable environmental values, the Secretary cannot select one applicant over another only because of lower cost.

To participate in the program, a farmer had to develop a conservation plan stating intended practices and describing environmental purposes.

Retains requirement to prepare a conservation plan stating intended practices and describing environmental purposes. Confined livestock feeding operations must prepare a comprehensive nutrient management plan.

Contracts were 5 to 10 years in length.

Contract length is 1 to 10 years.

Producer payments limited to $10,000 per year or $50,000 for any multi-year contract.

No annual payment limitation. The sum of all EQIP payments to an individual or entity cannot exceed $450,000 during FY 2002-07.

EQIP Conservation Innovation Grants

No similar provisions.

EQIP funds can be used to provide grants to stimulate innovative approaches to leveraging Federal investment in environmental enhancement and protection. Grants are to be awarded on a competitive basis, to government and nongovernment organizations and persons for innovative projects involving producers, such as market-based pollution credit trading, adoption of best management practices, and carbon sequestration. Federal share of project cost is capped at 50%.

EQIP ground and surface water conservation

No similar provisions.

Provides CCC funding, in addition to what is available for the regular EQIP program, for ground and surface water conservation, including cost share for more efficient irrigation systems. Annual funding set at:
• $25 million for FY 2002,
• $45 million for FY 2003, and
• $60 million for FY 2004-07.

An additional $50 million in CCC funding (to be made available as soon as practical) is allocated to water conservation activities in the Klamath Basin.

Conservation Security Program (CSP) provides payments to producers for adopting or maintaining a wide range of management, vegetative, and land-based structural practices that address 1 or more resources of concern, such as soil, water, or wildlife habitat.

No similar provisions.

Provides for CCC funding.

All agricultural land (cropland and grazing land) is eligible.
• Cropland must have been cropped in 4 of the 6 years prior to 2002.
• Lands enrolled in the CRP, WRP, and Grassland Reserve Program are not eligible.
• Forestland that is an incidental part of the agricultural operation may be included.
• Animal waste storage or treatment facilities are not eligible.

Producers can participate at 1 of 3 tiers. Higher tiers require greater conservation effort and offer greater payments. The lowest cost practices that meet conservation standards must be used.

Conservation effort:
Tier I: Producer must address at least 1 resource of concern on at least part of the agricultural operation. Contracts are for 5 years. Tier I contract renewal requires broadening scope of practices or portion of the agricultural operation covered.

Tier II: Producer must address at least 1 resource of concern on the entire operation. Contracts are for 5-10 years and can be renewed.

Tier III: Producer must fully address all resources of concern on the entire operation. Contracts are for 5-10 years and can be renewed.

Payments:
Payment is a percentage of the national average land rental for the specific land use, or another appropriate rate that ensures regional equity:
• 5% for tier I,
• 10% for tier II, and
• 15% for tier III.

Producers can also receive 75% cost sharing for adoption or maintenance of conservation practices.

The Secretary can provide enhanced payments for taking additional actions in a way that ensures regional equity for:
• implementing or maintaining practices that exceed minimum required for tier;
• addressing local conservation priorities in addition to resources of concern;
• participating in an on-farm conservation, research, demonstration, or pilot project;
• participating in a watershed or regional resource conservation plan that involves at least 75% of area producers; or
• carrying out assessment and evaluation activities relating to practices in conservation security plan.

Payment limits:
• $20,000 annually for tier I, 25% of that amount for the initial payment based on a percentage of land rent;
• $35,000 annually for tier II, 30% for initial payment; and
• $45,000 annually for tier III, 30% for initial payment.

Wildlife Habitat Incentives Program (WHIP) provides cost sharing for people who own or control land and want to develop and improve wildlife habitat. Contracts are generally 5-10 years in length.

Cost sharing of $50 million for FY 1996-2002 was funded through CRP.

Mandates CCC funding of:
• $15 million in FY 2002,
• $30 million in FY 2003,
• $60 million in FY 2004, and
• $85 million in each FY 2005-07.

Secretary may use up to 15% of funds in any year to augment the program's regular cost-share payments on lands enrolled for at least 15 years.

Conservation of Private Grazing Lands (CPGL) authorizes technical and educational assistance for conservation and enhancement of private grazing lands.

Authorized appropriations of $20-$60 million. No funds were appropriated during FY 1996-2001.

Authorizes appropriations of $60 million for each of FY 2002-07.

Expands program purposes to include encouragement of sustainable grazing systems such as year-round, rotational, or managed grazing.

Agricultural Management Assistance Program provides assistance to States found to be underserved by USDA programs.

Program was created by the Agricultural Risk Protection Act of 2000.

Provides an additional $10 million per year in CCC funding FY 2002-07. Producers in 15 designated States are eligible for financial assistance for a range of conservation and risk reduction purposes.

Technical assistance

Producers could obtain technical assistance from providers other than USDA's Natural Resources Conservation Service (NRCS) for preparation of conservation compliance plans.

The Secretary is required to 1) provide technical assistance to eligible producers either directly or, at the producer's option, through payment to an approved third party; and 2) develop a program for approving third-party providers. The Secretary may also request services of non-Federal entities or enter into cooperative agreements or contracts with them to provide technical assistance.

1996-2001 farm legislation

2002 Farm Bill

Farmland protection, including FPP and the Grasslands Reserve Program.

Farmland Protection Program (FPP) provides funds to State, tribal, or local governments and to nonprofit organizations to help purchase easements against development of productive farmland.

Allocated up to $35 million from CCC to fund the purchase of conservation easements on 170,000-340,000 acres. Approximately $50 million was spent to protect about 107,000 acres.

Mandates CCC funding of:
• $50 million in FY 2002,
• $100 million in FY 2003,
• $125 million in FY 2004 and FY 2005,
• $100 million in FY 2006, and
• $97 million in FY 2007. The acreage limit is removed.

Land with prime, unique or other productive soil was eligible.

Eligible land is expanded to include land with historical and archaeological resources. Eligible land now explicitly includes cropland, rangeland, grassland, pastureland, and forestland that is part of an agricultural operation.

Eligible entities are expanded to include nonprofit organizations operated for conservation purposes.

Eligible entities can use charitable contributions from the landowner of up to 25% of the fair market value of the conservation easement.

Grassland Reserve Program (GRP) is established to assist owners, through long-term contracts or easements, in restoring grassland and conserving virgin grassland.

No similar provisions.

Provides CCC funding, for 2003-07, of up to $254 million.

Restored, improved, or natural grassland, rangeland, and pasture, including prairie can be enrolled—up to 2 million acres. Tracts must be at least 40 contiguous acres. Waivers are available for smaller parcels in cases of exceptional acreage that meets purposes of program.

Eligible grassland can be enrolled under contracts of 10, 15, 20, or 30 years or under 30-year or permanent easements (or the maximum allowed by State law). Not more than 60 percent of funds can be used for 30-year contracts or 30-year and permanent easements. Not more than 40 percent are available for 10-, 15-, and 20-year contracts.

For contracts, annual rental payments equal 75% of grazing value. Permanent easements are to be purchased at fair market value, less grazing value, while 30-year easements are to be purchased at 30% of fair market value, less grazing value. Cost sharing is up to 75% of restoration costs on restored grassland, up to 90% on virgin grassland.

Provisions

1996-2001 farm legislation

2002 Farm Bill

Watershed Protection, including RC&D, watershed rehabilitation, and similar programs.

Small Watershed Rehabilitation Program provides funding for rehabilitation of water resource projects.

Appropriations authorized in 2000 at $5 million for 2001, and up to $35 million for 2005.

Provides CCC funding, to remain available until expended, of:
• $45 million in FY 2003,
• $50 million in FY 2004,
• $55 million in FY 2005,
• $60 million in FY 2006, and
• $65 million in FY 2007.

In addition, the following amounts, to remain available until expended, are authorized to be appropriated:
• $45 million in FY 2003,
• $55 million in FY 2004,
• $65 million in FY 2005,
• $75 million in FY 2006, and
• $85 million in FY 2007.

Resource Conservation and Development Program promotes the protection of natural resources and the improvement of local economies.

The Resource Conservation and Development (RC&D) Program was reauthorized.

RC&D Program is permanently authorized.

Great Lakes Basin Program for Erosion and Sediment Control

No similar provisions.

The Secretary may carry out a program for soil and sediment control that provides project demonstration grants, technical assistance, and information/education programs to improve water quality in the Great Lakes Basin. Authorizes appropriations of $5 million annually for 2002-07.

Grassroots Source Water Protection Program

No similar provisions.

Establishes a national Grassroots Source Water Protection Program to more effectively use onsite technical assistance capacity of State rural water associations that operate wellhead or groundwater protection programs. Authorizes appropriations of $5 million annually for FY 2002-07.

Desert terminal lakes

No similar provisions.

Requires the Secretary to transfer $200 million in CCC funds to the Bureau of Reclamation to provide water to at-risk natural desert terminal lakes. The funds are not to be used to purchase or lease water rights.

Conservation Corridor Demonstration Program

No similar provisions.

Requires establishment of a conservation corridor demonstration program on the east side of the Chesapeake Bay in Delaware, Maryland, and Virginia. The project is to demonstrate local conservation and economic cooperation using existing USDA conservation programs. State and local partners must provide 50 percent of funding. Appropriation of such sums as necessary is authorized.

Provisions

1996-2001 farm legislation

2002 Farm Bill

Miscellaneous

Regional equity

No similar provisions.

Before April 1 of each year, priority for conservation program funding (excluding CRP, WRP, and CSP) shall be given to approved applications in any States that have not received total conservation funding of at least $12 million for the fiscal year.

Partnerships and cooperation

No similar provisions.

In carrying out any conservation program, the Secretary may use program resources to enter into stewardship agreements with State and local agencies, tribes, and nongovernment organizations. The Secretary may also designate special projects, as recommended by the State Conservationist, to enhance technical and financial assistance provided to producers to address natural resource issues.

Privacy of personal information relating to natural resources conservation programs

No similar provisions.

Information provided to the Secretary for the purpose of providing technical or financial assistance to a producer through a natural resources conservation program cannot be considered public information and cannot be disclosed to any person or entity outside USDA, except to the Attorney General for the purpose of enforcing natural resource conservation programs.

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