Title II – Conservation

Environmental Quality Incentives Program and other Conservation Programs

2002 Farm Bill Education ConferenceKansas City, MissouriMay 20-21, 2002

Andy SeidlColorado State University

Title II: Conservation

Presentation Focus: • Environmental Quality Incentives Program

(EQIP)Also: • Wetlands Reserve Program • Wildlife Habitat Incentives Program• Farmland Protection Program• Small Watershed Rehabilitation Program• Desert Terminal Lakes Program

Environmental Quality Incentives Program (EQIP)

1996 vs 2002• Overview• Priority areas • Eligibility• Funding/Payments

Environmental Quality Incentives Program (EQIP)

• Established 1996 Farm Bill• Voluntary program addressing soil, water &

other natural resource concerns on agricultural lands.

• Administered by NRCS, funding through CCC, facilitated by FSA

• Technical & financial assistance for…– regulatory compliance, – environmental enhancement, – conservation planning.

• 5X over subscribed.

1996 Environmental Quality Incentives Program Details

• 5-10 yr contracts & conservation plans• 75% cost share for conservation practices

– Grassed waterways --Filter strips– Manure mgmt facilities --Capping wells

• Incentive payments for land mgmt ( 3yr)– Nutrient mgmt --Manure mgmt– Irrigation water mgmt --IPM

EQIP Priority Areas

• Local CD identifies & proposes, State Conservationist prioritizes

65% of funds spent in priority areas• Watersheds, regions or areas of special

environmental sensitivity or…• Areas of special soil, water, or related natural

resource concerns– Soil erosion --Water quality/quantity– Wildlife habitat --Wetlands– Forest lands --Grazing lands.

1996 EQIP: Eligibility

• Livestock or ag producers on targeted lands.

• No cost share for CAFO waste mgmt facilities, but eligible for other assistance

• Total cost share & incentives $10K/yr & $50K/contract.

1996 EQIP Funding

• FY1996-2001 $1.3 billion• FY2001 $200 million

– $158 million financial assistance– $3 million educational assistance– $38 million technical assistance

50% to livestock operations 50% to irrigation water management

for soil erosion reduction and water quality improvements.

2002 EQIP Funding

• $9 billion total budget• Ramp to $1.3 billion/yr by 2007 (6X) 60% to livestock operations 40% to crop producers.• 1-10 yr contracts.• $450,000 payment cap, 2002-07. 90% Cost share for limited resource or

beginning farmer/rancher

2002 EQIP: Other Changes

• Incentives expanded to annual & perennial crops and CNMPs

• Incentive payments emphasize residue, nutrient, pest, invasive species and air quality mgmt.

• Applied research support.• Ranking based upon national

conservation priorities.• CAFOs are eligible for all parts of

program.

2002 EQIP: Water Conservation Program

• Cost share assistance and incentive payments to conserve ground and surface water

• Emphasis on irrigation efficiency & dryland alternatives.

• $600 million total• $50 million for Klamath Basin

Perspectives on EQIP

• Producers generally in favor of voluntary incentive-based environmental programs.

• Producers not supportive of regulatory solutions.

• Environmental lobby generally supportive of EQIP, but also regulatory programs.

• Both concerned regarding relaxed payment caps and unrestricted eligibility.

• High profile with CWA & CAA Revisions

Perspectives on EQIP

Producer Support for Government Incentives for Environmental Benefits (% in favor) Open

Space Farm land

Water Quality

Wildlife Habitat

Animal Waste

Soil Erosion

Carbon Sequst

Biofuel Endang’d Species

Nation 62 86 91 69 68 89 49 86 52 West 59 82 86 66 63 82 47 83 46 North Central 60 86 91 66 68 89 49 90 51 Northeast 72 90 94 67 75 89 51 85 57 South 63 87 91 69 68 89 49 86 52

EQIP Resources

• USDA Farm Bill site: http://www.usda.gov/farmbill/

• NRCS EQIP site: http://www.nrcs.usda.gov/programs/eqip/

• Farm Foundation Publications and National Producers’ Survey site: http://www.farmfoundation.org/2002_farm_bill.htm

• Environmental Working Group Database: http://www.ewg.org/

Other Conservation Programs

• Wetlands Reserve Program (WRP)– Cap increased from 1.075 to 2.275 million acres– $1.5 billion total.– http://www.nrcs.usda.gov/programs/farmbill/

2002/pdf/WRPFct.pdf• Wildlife Habitat Incentives Program (WHIP)

– Cost share payments to provide wildlife habitat– 1.6 million acres in program– Budget 10X to $700 million– http://www.nrcs.usda.gov/programs/farmbill/

2002/pdf/WHIPFct.pdf

WRP Acres

Other Conservation Programs: Farmland

Protection Plan• USDA partners with state, tribal & local

organizations to acquire conservation easements.

• Matching funds (up to 50%) for 30 yr to perpetual conservation easements.

• Mandatory conservation plan (particularly highly erodible lands).

• Budget 20X to $985 million

Other Conservation Programs: Farmland

Protection Plan• Targets:

– prime, unique, productive soils or historical or archeological resources

– Privately owned– Part of an existing protection program– Large enough to sustain agricultural production– Accessible to markets– Surrounded by compatible uses.

• Fact sheet: http://www.nrcs.usda.gov/programs/farmbill/2002/pdf/FPPFct.pdf

Other Conservation Programs

• Small Watershed Rehabilitation Program– Rehabilitates small watershed flood

prevention dams– $275 million total.

• Desert terminal lakes– Provides funding to help conserve

lakes.– $200 million total.