conservation stewardship program fiscal year 2009 signup training

CONSERVATION STEWARDSHIP PROGRAM

Fiscal Year 2009 Signup Training

August 2009

Agenda

• Program Design and Key Concepts• Allocations• Program Eligibility• Application Acceptance and Evaluation

Process• Payments

Agenda - continued

• Conservation Measurement Tool (CMT) Demo

• Enhancement Activity Review• Resource Conserving Crop Rotation • Field Verification• Conservation Stewardship Plan

Development• CMT/Toolkit/Program Contracts System

(ProTracts)

Stewardship Purpose

2008 Food, Conservation, and Energy Act established a new program purpose

• Encourage producers to address resource concerns in a comprehensive manner by: Installing and adopting additional conservation

activities Improving, maintaining, and managing existing

activities

Stewardship Policy

A new program purpose brings

• New Interim Final Rule• New Conservation Programs Manual, Part

508• New Fund Code (95F and 95T)

Security Program

Effect on Conservation Security Program

• Prohibits new or renewed security contracts after September 30, 2008

• Provides funds as necessary to administer existing security contracts

• Honors payment commitments

Stewardship Program Availability

Broadens program availability

• Available nationwide• Continuous sign-up with periodic cut-offs

for ranking• Adds nonindustrial private forest land

(NIPF) as eligible land

Decision-Making

Shifts significant program decision-making to states

• Allocate acres to states to manage• Focuses on resource concerns identified

as a priority for a state or areas of a state• Competitively ranks peers within a state

who face similar resource challenges

Acreage Limitation / Payment Constraint

Developing a payment mechanism challenging within constraints:

• Enroll 12,769,000 acres for each FY• Manage to achieve a national average

rate of $18 per acre (includes financial assistance [FA] and technical assistance [TA])

Conservation Stewardship Program

Allocations

National Allocation and Management

• (1) The Chief will allocate acres to states, based primarily on each state’s proportion of eligible land to the total amount of eligible land in all states; and:


• (i) The extent and magnitude of the conservation needs associated with agricultural production in each state;

• (ii) The degree to which implementation of the program in the state is, or will be, effective in helping producers address those needs; and

• (iii) Other considerations determined by the Chief, to achieve equitable geographic distribution of program participation.


• (2) In any FY, acres allocated to a state that are not enrolled by a date determined by the Chief, may be reallocated with associated FA and TA funds to another state for use in that fiscal year.

State Allocations and Management

• (1) The state conservationist (STC) will:

– (i) Identify and establish, with advice from the Kansas Technical Committee (KTC) and local work groups, ranking pools that ensure that applicants will be ranked relative to other applicants who share similar resource challenges (refer to Title 440 – Conservation Programs Manual (CPM), Part 508, Section 508.72, for guidance on establishing ranking pools); and


– (ii) Allocate acres from the state’s allocation to each ranking pool based on the same factors from 440-CPM, Part 508, Section 508.61C(1)(i-iii), that the Chief considers in making allocations to states.


• (2) In any fiscal year, acres allocated to a ranking pool that are not enrolled by a date determined by the STC, may be reallocated within their state for use in that FY.

CSP Allocations Application Period No. 1

Ag – 541, 404 acres

NIPF – 6,418 acres

Questions

Stewardship Program Eligibility

Program Eligibility - Objectives

Identify eligibility requirements:

• Applicant• Land• Stewardship Threshold Requirement

Program Eligibility - Applicant

An applicant must:• Be the operator in the FSA farm records

management system• Have documented control for contract

term• Be compliant with

– Highly erodible land conservation (HELC) and Wetland Conservation (WC)

– adjusted gross income (AGI) • Supply information to determine eligibility


Operator in FSA records

• Reports available include:– Form FSA-156EZ - Required– Form AD-1026A – Required

– Producer Subsidiary Print - Optional


Documented Control:• Follow policy – Title 440 - CPM, Part 512,

Section 512.22A“Who May be Eligible”


Document Land Operated and Not Under

Control for Contract Term

• The applicant must provide a written statement for associated tracts that are not under their control.

• The Natural Resources Conservation Service (NRCS) will file in the stewardship contract file.


Be in Compliance:• Follow policy – Title 440 - CPM, Part 512,

Section 512.20C“Certifications Required”– Form AD-1026 HELC/WC certification– Form CCC-926 AGI certification– Forms CCC-901 or CCC-902, Member

Information


Be in Compliance - continued:

• CSP applicants should wait until after October 1, 2009 to certify eligibility for the current application period (August 10th – September 30th, 2009).

Program Eligibility - Land

Land eligible for enrollment:• Private, working agricultural land

– Cropland, Pastureland, and Rangeland• Agricultural Indian land

– Cropland, Pastureland, and Rangeland• Nonindustrial private forest land (NIPF)

– By special rule– No more than 10 percent of acres enrolled

nationally/FY


Ineligible land:• Conservation Reserve Program (CRP),

Conservation Security Program, Grassland Reserve Program (GRP), and Wetlands Reserve Program (WRP)

• Public land – Federal, state, or local


Ineligible land:• Land cropped after June 18, 2008, not

planted, considered planted, or devoted to crop production four of six preceding years – unless:– Previously enrolled in CRP– Maintained using long-term rotations– Incidental land needed for efficient operation

of farm


Ineligible land:• Other lands that are not working ag land

or NIPF including:– Incidental areas not in ag production– Developed areas

• Farm headquarters, ranch sites, barnyards, feedlots, manure storage facilities, machinery storage areas, material handling facilities


Agricultural Operation • Established based on how operator

represents their operation for other USDA program participation


Agricultural Operation includes: • All eligible* and ineligible land

(contiguous or non-contiguous)– Where applicant is operator in FSA record

system– Under control of applicant for contract term– Operated substantially separate

* - NIPF Component Exception


Entire Operation

An application includes the eligible land in an operator’s entire operation


Entire Operation

An operator with bonafide, substantially separate operations will submit a separate application per operation

Program participation limits established by direct attribution to an individual


*NIPF Component Exception• NIPF competes separately from ag land• NIPF applicants submit a separate

application for NIPF• If designated for funding, then NIPF

component of operation is established separate and includes all NIPF

• If not designated for funding, then NIPF is not part of the agricultural operation

Program Eligibility – Stewardship Threshold Requirement

Stewardship Threshold• Level of natural resource conservation

required to conserve and improve the quality and condition of a natural resource

• Land treatment eligibility requirement• Assessed on each eligible land use• Measured using the CMT


The applicant must meet or exceed the

stewardship threshold for at least:• One resource concern at the time of

application; and• One priority resource concern –

– At the time of application, or– By the end of the conservation stewardship

contract.


Seven Resource Concerns Plus Energy• Air Quality• Animals• Plants• Soil Erosion• Soil Quality• Water Quality• Water Quantity


Stewardship Threshold Requirement• Determined by land use• Resource concerns and priority resource

concern met could be different for different land use types

• Example:Pastureland resource concern met – Soil ErosionRangeland resource concern met – Water QualityPastureland priority resource concern met - AnimalsRangeland priority resource concern met - Plants


Stewardship Threshold Requirement• Resource concern and priority resource

concern met must be different for the same land use

• That is - If the one resource concern met at

application is a priority resource concern, then another priority resource concern must to be met by the end of the contract

Questions

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Application Acceptance and Evaluation

Process

Step # 1

Screening

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Producer Self-Screening Checklist

• Is a screening questionnaire to assist producers independently identify if the program is right for them and their operation.

• completed by the producer without technical assistance

Training Reference Material-Exhibit A

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• Will assist a producer to arrive at a preliminary conclusion as to whether the applicant, the land, and the conservation activities meet CSP eligibility requirements.

• available through producer information workshops, at NRCS field offices and electronically

Producer Self-Screening Checklist

Step # 2

Determine Applicant and Land Eligibility

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Application Process

• Contract Program Application– Form NRCS-CPA-1200

• *Enter into ProTracts as FY 2010

– Supporting documents• Ag operation maps• Form AD-1026A• Form FSA-156EZ• Control of Land

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Application Process• Map/Aerial photograph/overlay of

agricultural and/or NIPF operation.

– Identify Ag operation and /or NIPF component

– delineate each eligible land use and associated acres.

»cropland, pastureland, rangeland for agricultural land applications

» NIPF for NIPF application48

Application Process

• Agricultural land applications will compete separately from NIPF applications.

• Applicant with both will have:

1. One application for NIPF2. One application for agricultural land

(Two applications, one for each land type)

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Determine Applicant and Land Eligibility

• Applicant Eligibility - ProTracts– AGI, HELC, and WC and at least one farm associated

with the applicant.– Operator– Control

• Land Eligibility- FSA farm management record system

– Private agricultural land– Agricultural Indian lands– Nonindustrial private forest land

Step # 3

Resource inventory and determine if

stewardship threshold requirement is met in

the CMT51

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CMT

The CMT • Considers the relative conservation

physical effects of conservation activities across natural resource concerns and energy to estimate the existing conservation performance levels to be maintained, and the additional conservation performance improvement to be achieved by an applicant.

CMT

• Integrates and supports the processes of inventorying resources, determining land treatment, scheduling new conservation activities, ranking applications, and establishing payments.

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Stewardship Threshold Requirement

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Stewardship Threshold Requirement Not Met

•Advise applicants•Practices to meet additional stewardship thresholds through CSP

•Other programs available•TA

CMT Resource Inventory

• Activity charge for NRCS assistance to producers for CMT resource inventory completion will be

Conservation Technical Assistance (CTA)

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Step # 4

•Determine conservation performance points in CMT

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Stewardship Threshold Requirement Met

•Select additional conservation activities (practices and enhancements) using the CMT

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Conservation Performance Ranking Score

• Based on the following factors:

• Level of conservation treatment on all applicable priority resource concerns at the time of application

• Degree to which the proposed conservation treatment on applicable priority resource concerns effectively increases conservation performance

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• Based on the following factors:• Number of applicable priority resource

concerns proposed to be treated to meet or exceed the stewardship threshold by the end of the contract, and

• Extent to which other resource concerns, in addition to priority resource concerns, will be addressed to meet or exceed the stewardship threshold by the end of the contract period.

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Will be used for ranking in ProTracts

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CMT• Conservation Performance Summary

Report(1) Ranking pool(2) Existing conservation performance level(3) Increase in conservation performance level by adding new activities;(4) Schedule of operation of new activities;(5) Certification statement from the applicant

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Conservation Performance Summary Report

• Provides information needed for ranking and contract development in ProTracts and

• Stewardship plan in Toolkit

Step # 5

Ranking and Application

Pre-Approval64

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Ranking

• Ranking will occur in ProTracts

– Based on information from CMT as recorded on the Conservation Performance Summary Report

– The same offered acres cannot compete in more than one ranking pool

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Application Pre-Approval

• The assistant state conservationists for field operations (ASTCs-FO) will make application pre-approval determinations for the applicable administrative area ag lands ranking pools

• during established ranking periods based on eligibility, ranking score, and acre allocation.

• Pre-Approve “status”- applicationspre-approved for funding.

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Application Pre-Approval

• The Program Manager will make application pre-approval determinations for NIPF statewide ranking pools

• during established ranking periods based on eligibility, ranking score, and acre allocation.

• “Pre-Approve” status – applications pre-approved for funding.

Step # 6

Field Verify

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Field Verify

• Applicant information will be verified during an on-site field verification conducted after applications are pre-approved and before a stewardship plan is completed and contract is obligated.

Field Verify

• The NRCS will request records to determine accuracy of information provided during application

• Applicant’s records must be available to NRCS upon request

• Responses to the CMT questions will be verified

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Field Verify

• In the event that a discrepancy is found the application will be:

– Ineligible, or

– Re-ranked using the CMT to re-determine stewardship eligibility and ranking score.

Resource Inventory Information is Accurate

• Complete the Conservation Stewardship Plan in Toolkit.

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Step # 7

Approve and Obligate

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Approve and ObligateFollow steps in 512.42

• Finalize CPCForm NRCS-CPA -1155

• Approve application Forms NRCS-CPA-1202, NRCS-CPA-1155 and

NRCS-CPA-1202-CPC (appendix)

• Obligate

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CSP Application Activity Flow

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QUESTIONS

Payments

Payments

“Subject to the availability of funds. . .”

Payments

Two Payment Types:

1. Annual Payment

2. Supplemental Payment

Annual Payment

Annual Payment for• Installing and adopting additional

conservation activities as scheduled in the plan, and

• Maintaining existing activities to at least the level of conservation performance identified at the time of application.

Annual Payment

Annual Payment Determined:• Established using conservation

performance estimated by CMT• Calculated by eligible land-use type• Uniform payment rate per land use

performance point

Annual Payment

Annual Payment Product of:

• Land-use acres• Land-use performance payment points• Land-use payment rate

Annual Payment

To Receive a Land Use Annual Payment:

• Participant must schedule and install at least one new conservation activity on that land use

Annual Payment

Annual Payment Based On:

• Cost incurred• Income foregone• Expected environmental benefits

Supplemental Payment

• Available to a participant receiving annual

payment who adopts a resource- conserving crop rotation

Supplemental Payment

Payment Rate

• Set nationally• Traditional payment schedule

methodology

Timing of Payment

• Annual and supplemental payments made

as soon as practicable after October 1

each year for contract activities carried

out in the previous year.

Payment Issued = Contracted Obligation

• Annual payment amount not adjusted for change in actual performance

• Actual performance below contract requirement is potential contract violation

• Follow policy Title 440 - CPM, Part 512, Section 512.55

Prohibited Payments

Payment Not Provided For:• Animal waste storage, treatment, or transfer• Activities where no cost incurred or income

foregone by participant• New conservation activities applied with FA

through any other USDA program on same land at same time– STC determines which activities are duplicative

Payment Limitations

Person or Legal Entity Limit• Regardless of number of contracts, a

person or legal entity may not receive direct or indirect payments that in aggregate exceed:

• $40,000 during any FY• $200,000 during any five-year period

Payment Limitations

Contract Limit

• Each contract limited to $200,000 over the term of the initial contract period

2009 Payment Discovery Period

First Sign-up – Only• Set uniform annual payment rate per land

use performance point for eligible land uses• After ranking and pre-approval• Use real-time acreage enrollment data on:

– Land use performance points generated– Costs incurred, income foregone, environmental

benefits– Funds available for annual payment


Payment Mechanism Steps

1. Gather base data

• Total available funds for annual payment

• Total land use performance points• Estimate average cost per land use

point using cost data



2. Apportion dollars to each land use

• Estimate total performance point cost per land use

Average cost per point X Total land use points• Estimate percent of total realized cost by land use• Multiply available funds by land use percent to

yield annual payment dollars available by land use



3. Set the Payment Rate

• Divide the available annual payment dollars by the total land use performance points to estimate payment rate per point


Payment Mechanism

• First Sign-up - Only• Payment mechanism talking points• Pre-approved applicants notified of

contract amount with opportunity to cancel

Questions?

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or a part of an individual's income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of discrimination write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410 or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer.

conservation stewardship program fiscal year 2009 signup training

Documents

state allocations

conservation needs

states allocation

state conservationist

resource concerns

statesallocate acres

ranking pools

payment mechanism