WORKING LANDS CONSERVATION POLICY Food, Conservation, & Energy Act Conservation Production Systems
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Food, Conservation, & Energy Act WORKING LANDS CONSERVATION POLICY Conservation Production Systems Training Conference Thomasville, Georgia February 3, 2009 Wes Harris Special Projects Coordinator – Public Policy Center for Agribusiness and Economic Development The University of Georgia UGA - Center for Agribusiness and Economic Development 2008 Farm Bill White House Rural Agenda Partner with Landowners to Conserve Private Lands: Increase incentives for farmers and private landowners to conduct sustainable agriculture and protect wetlands, grasslands, and forests NRCS Objective NRCS utilizes its technical expertise to provide information to eligible participants who apply to or are eligible to participate in conservation programs to help them make land management decisions and to implement conservation practices and systems NRCS Objective Through its conservation planning process, NRCS helps the participant develop a conservation plan and, subject to the availability of funds provides financial assistance to the eligible participant to implement conservation practices or systems FCEA $307 Billion 2008 - 2012 Other Titles, 13% Conservation Program s 8% Com m odity Program s 11% Nutrition Program s 68% W HARRIS – UGA source: CBO STA & BR Subject To Appropriations & Budget Reconciliation FY 2007 Funding Limits: Program Authorized Appropriated WRP 250,000 ac 144,776 ac CSP $373 M $259 M EQIP $1.27 B $1.017 B GSWC $60 M $51 M WHIP $85 M $43 M FRPP $97 M $50 M AMA $14 M $6 M Farmers Need to recognize likely shift from commodity subsidies to green payments Regulations are coming – take advantage of incentive programs for compliance Conservation of natural resources will garner public support Conservation markets could be very lucrative Farmers Environmental benefits add value to land Some conservation practices are economically favorable: • • • Conservation tillage Integrated pest management Irrigation upgrades and efficiencies Stewardship programs now rewarded (CStP) Farmers RECORDS Investment in conservation practices: • • • • • Equipment Cover crops Structures Fencing Water conservation USDA ACRE, SURE, Pay limits will push FSA to limits of capability – diminishing profile for CRP and Continuous CRP NRCS almost insurmountable task: • • • • • • Expanded EQIP ($, AWEP, FLEP) New CStP Specialty crop technical assistance Organic certification and program inclusion Streamlining application process Fewer resources (people, TA funding) Advisors Crop Consultants – LGUs - Industry Technical Service Providers Encourage and assist farmer adoption of conservation systems approach Specialty crop/organics culture Beginning and S/D Farmer Assistance Plot, demonstration, and research Title II – Conservation Programs Increases total spending on conservation programs by $7.9 billion Continued shift in emphasis to working land programs from easement programs AGI payment limit of $1,000,000 unless 2/3 of income farm related for all conservation programs Working Lands Programs Redesigns Conservation Security Program (CSP) changing to Conservation Stewardship Program (CStP) Authorizes additional funds for the Environmental Quality Incentives Program (EQIP) Working Lands Programs Reduces the payment limit from $450,000 to $300,000 Re-authorizes Wildlife Habitat Incentives Program (WHIP) Incorporates Forest Land Enhancement Program (FLEP) into EQIP EQIP EQIP provides assistance to farmers and ranchers to conserve and enhance soil, water, air, and related natural resources on their land 60% Livestock – 40% Crops funding Programs under EQIP • • • • Conservation Innovation Grants (CIG) Specialty Crops and Organic Systems Plan IPM AWEP Environmental Quality Incentives Program (EQIP) Adds conservation activities (planning) to eligible practices Maintains 60/40 split in favor of livestock operations Water conservation or irrigation practice EQIP - Objectives Providing flexible assistance to producers to install and maintain conservation practices that sustain food and fiber production • Enhancing soil, water, and related natural resources including grazing land, forestland, wetland, and wildlife • Conserving energy EQIP - Payments Payments may not exceed 75 percent of the costs associated with planning, design, materials, equipment, installation, labor, management, maintenance, or training EQIP - Payments May not exceed 100 percent of income foregone by the producer from practices that promote: • Residue management • • • • • • Nutrient management Air quality management Invasive species management Pollinator habitat Animal carcass management technology Pest management EQIP - Organics Payments for conservation practices, on the operations of a producer, related to organic production; and to the transition to organic production EQIP Authorized Funding $1.2 B $1.35 B $1.45 B $1.59 B $1.75 B FY2008 FY2009 FY2010 FY2011 FY2012 $400 M $700 M $1.0 B $1.2 B $1.27 B $1.3 B FY02 FY03 FY04 FY05 FY06 FY07 Conservation Stewardship Program (CStP) CStP is a renovation of the Conservation Security Program (CSP) authorized in the 2002 Farm Bill No more tiers Nationwide signup • watershed basis discontinued Conservation Stewardship Program (CStP) Nationwide acreage based enrollment 12.8 M acres per year FY2009-2017 Program for producers to undertake additional conservation activities Improve, maintain and manage existing conservation activities CStP Producers must address one resource of concern at the stewardship threshold (improve and conserve the quality and condition of a resource of concern) on their entire operation and work to meet or exceed the stewardship threshold for one additional resource of concern CStP Begins FY ‘09 Payment Limit $200,000 over 5 years ($40,000 per year average) Contracts can be renewed for one additional 5-year period Target $18 per acre for overall admin of the program (including payments) +$1 billion dollar program CStP Reauthorizes the Conservation Security Program for existing contracts and those in the sign up process NRCS developed resource-specific indices for implementing CSP and other conservation assistance programs and is encouraged to continue standards CStP - Caveats Rule in process of being formulated May be too much work for too little money Entire operation must comply CStP RECORDS (soil samples, ipm, cultural practices, types of cover, irrigation amounts, wildlife habit improvement) CStP - Thresholds Stewardship threshold is the level of conservation and environmental management to improve and conserve a resource Thresholds should be set at a level that ensures substantial and lasting conservation benefits CStP – Stewardship Plan Identifies and inventories resource concerns Establishes benchmark data and conservation objectives Describes conservation activities to be implemented, managed, or improved CStP – Stewardship Plan Includes a schedule and evaluation plan for the planning, installation, and management of the new and existing conservation activities RESOURCE CONCERN The condition of natural resources that may be sensitive to change by natural forces or human activity. Such as: • Soil erosion, soil condition, soil deposition, water quality, water quantity, animal habitat, air quality, air condition, plant suitability, plant condition, plant management, and animal habitat and management CStP – Resource Concern Priority resource concern is a resource concern identified at State level, in consultation with the State Technical Committee, as a priority for a particular watershed or area of the State and is likely to be addressed successfully through the implementation of conservation activities CStP – Eligible Land Private agricultural land (including cropland, grassland, improved pastureland, and land used for agroforestry) Forested land that is an incidental part of an agricultural operation CStP – Eligible Lands Eligible land is all acres of an agricultural operation of a producer, contiguous or not, under effective control at contract, and is operated with equipment, labor, mgmt, and production practices that are substantially separate from other agricultural operations CSP – Eligible Lands Nonindustrial private forest land is eligible for enrollment except more than 10 percent of annual acres enrolled nationally in any fiscal year may be nonindustrial private forest land CStP – Eligible Lands Exclusions: • Land enrolled in the conservation reserve program • Land enrolled in the wetlands reserve program • Land enrolled in the grassland reserve program CSP – Eligible Lands Land used for crop production that was not planted, for at least 4 of the past 6 years will not be receive any payment under the program, unless: • Land had previously been enrolled in the conservation reserve program • Land has been maintained using long-term crop rotation practices • Land is incidental needed for efficient operation of the farm CStP On-farm conservation research and demonstration activities and pilottesting projects can be part of contract offers under the program USDA to design protocols and application procedures for individual producer and collaborative onfarm research and demonstration activities and for pilot testing projects CStP USDA will use outreach activities and provide appropriate technical assistance to specialty crop and organic producers and ensure they can effectively compete in the program ranking periods CStP – Organic Certification Establishment of a transparent means by which producers may initiate organic certification under the Organic Foods Production Act while participating in a CSP contract CStP - Implementation Program available to eligible producers on a continuous enrollment basis with 1 or more ranking periods, one of which shall occur in the first quarter of each fiscal year CStP - Implementation Identify not less than 3 nor more than 5 priority resource concerns in a particular watershed or other appropriate region or area within a state Develop reliable conservation measurement tools for carrying out the program CStP – State Share Primarily on state’s proportion of eligible acres to the total number of eligible acres in all states Magnitude of state’s conservation needs How effective the program will be in helping producers address needs Consideration to achieve equitable geographic distribution of funds CStP - Planning CSP includes planning needed to address a resource concern as a conservation activity CSP is intended to address multiple resource concerns in a coordinated manner, NRCS encourages comprehensive conservation planning through technical and financial support CStP – Specialty Crops Outreach and technical assistance are available, and program specifications appropriate to enable specialty crop and organic producers to participate in the program CStP – Crop Rotations Additional payments available, with participation in CStP if resource- conserving crop rotations are adopted to achieve beneficial crop rotations CStP – Crop Rotations NRCS will determine if a resourceconserving crop rotation is a beneficial crop rotation eligible for additional payments based on if the resourceconserving crop rotation is designed to provide natural resource conservation and production benefits CStP – Crop Rotations ’08 Producer agrees to adopt and maintain beneficial resource-conserving crop rotations for the term of the contract Resource-conserving crop rotation: • • • • • Includes at least 1 resource conserving crop Reduces erosion Improves soil fertility and tilth Interrupts pest cycles Reduces depletion of soil moisture as applicable or reduces the need for irrigation CStP – Crop Rotation Conference Language “encourage producers to adopt new, additional beneficial crop rotations that provide significant conservation benefits” “The payments are to be available to producers across the country and should not be limited to a particular crop, cropping system, or region of the country.” CStP – Crop Rotation Conference Language “In the Southeast, peanuts are an example of a crop that responds well to increased rotation lengths. Increased rotation lengths help peanut producers conserve water, more effectively control disease, reduce inputs to control disease and increase productivity.” Wildlife Habitat Incentive Program (WHIP) Reauthorized program $85 million each year 2009-2012 Includes habitat developed on pivot corners and irregular areas Payments made to a person or legal entity, may not exceed, $50,000 per year Special Consideration For each of fiscal years 2009 through 2012 funding for EQIP and the acres for CStP funding will be set aside at: • 5 percent to assist beginning farmers ranchers • 5 percent to assist socially disadvantaged farmers or ranchers AWEP Agricultural Water Enhancement Program (AWEP), replaces old Ground and Surface Water Program Promote ground and surface water conservation and water quality improvement USDA is seeking project proposals from potential partners – producers need a vehicle to participate Agricultural Water Enhancement Program (AWEP) Old Ground and Surface Water Conservation Program Under EQIP: • Water Enhancement activity -- Water quality or water conservation plan development; water conservation restoration or enhancement AWEP AWEP offers financial and technical assistance to help farmers and ranchers carry out water enhancement activities that conserve ground and surface water and improve water quality on cropland and forages AWEP Agricultural water enhancement activities: • water quality or water conservation plan development • water conservation restoration or enhancement projects, conversion to the production of less waterintensive agricultural commodities or dry land farming • water quality or quantity restoration or enhancement projects (ponds) • irrigation system improvement or irrigation efficiency enhancement • activities designed to reduce drought's impacts • other activities that achieve water quality or water conservation benefits on agricultural land. AWEP An eligible agricultural water enhancement activity could be the use of an impoundment to capture surface water runoff on agricultural land if the agricultural water enhancement activity: • Is located in an area that is experiencing or has experienced exceptional drought conditions during the previous two calendar years, and • Will capture surface water runoff through the construction, improvement, or maintenance of irrigation ponds or small, on-farm reservoirs AWEP NRCS contracts directly with producers included in approved partner proposals Eligible partners; • states, units of local government, or agricultural associations (con districts) Producers applying for AWEP must meet EQIP eligibility requirements AWEP funding must go to producers AWEP AWEP contract terms for producers run from 1 year to 10 years. Agricultural producers in selected project areas can apply for available AWEP funds at their local USDA service center Agricultural Water Enhancement Program Funding • • • $73 million for FY2009 & 2010; $74 million for FY 2011; $60 million for FY2012 and each year after State Technical Committees Standard operating procedures to standardize the operations of State technical committees Standards to be used by State technical committees in the development of technical guidelines for the implementation of the conservation provisions STC - Composition The Natural Resources Conservation Service The Farm Service Agency The Forest Service The National Institute of Food and Agriculture The State fish and wildlife agency The State forester or equivalent State official The State water resources agency The state Department of Agriculture The State soil and water conservation districts Producers of crops, livestock, poultry Owners of nonindustrial private forest land Nonprofit organizations with conservation expertise Agribusiness STC State technical committees are advisory in nature, and committees shall have no implementation or enforcement authority, but strong consideration to the recommendations should be given Each STC shall advise the State Con in establishing priorities and criteria for the programs, including the review of local working groups in addressing those priorities CIG CIG funds projects targeting innovative on-the-ground conservation, including pilot projects and field demonstrations Must be innovative (not common) Must be eligible for funding through EQIP Excellent opportunity for showcasing consultant work Carbon Markets USDA to research, analyze and enter into contracts and agreements to promote the development of standards for quantifying environmental benefits Promotion of the establishment of credit registries and third party verification Facilitation of private sector market based approaches for agriculture and forest conservation activities Carbon Markets USDA - technical guidelines with verification process that considers the role of third parties Federal and State agencies and NGO interests, such as producers, academia, and financial institutions input req’d Focus is on carbon markets due to the emerging market affecting agriculture Conservation Markets Chicago Climate Exchange: (86 M tons) Carbon Trading $3.95 to $7.50 per ton Usually 5 year contracts Congress expects expeditious accomplishment of standards Technical Assistance Planning and implementing conservation programs Agency personnel Technical Service Providers (TSP) Technical Service Contracts TSP TSPs are certified professionals, qualified to provide NRCS program participants with technical services necessary to implement their conservation projects Technical services include conservation planning, technical consultations, assistance with design and implementation of conservation practices TSP Technical service means the assistance provided by technical service providers: • including conservation planning • conservation practice design, layout, and installation • certification that the conservation practice meets NRCS standards and specifications TSP Improving the delivery of technical assistance: • increasing the availability of technical assistance • ensuring that conservation technical standards and resources are locally relevant Demand for technical assistance exceeds the supply of technical resources (NRCS personnel and TSPs) TSP TSPs provide another avenue for eligible participants to obtain the assistance they need to achieve the conservation objectives on their land Eligible participants choose technical assistance directly from NRCS, or a certified TSP from an approved list, or by an agreement NRCS has with a TSP TSP TSPs offset potential future increased workloads on a static NRCS workforce TSPs expedite projects increasing environmental benefits TSPs could increase the amount of contracts that actually are completed rather than cancelled due to time delays TSP Private sector cadre envisioned in the 2002 Farm Bill has not developed Address through authority for use of mandatory funds and multi-year contracts with third party providers Establishment of fair and reasonable payment rates TSP Payment Rates NRCS TSP experience the past 5 years is: rates based solely upon NRCS costs do not incorporate necessary profit margins to make such rates equal rates TSPs actually charge for their services “Not-to-exceed” rate restriction is removed Get on the Train Farm subsidy (direct payments and revenue support) in the future is uncertain Need to adopt systems that will enhance their economic benefit and regulatory compliance CIG and AWEP – provide the vehicle HOW? Cultivate relationship with your District Conservationist(s) Local working group members Stay current –study the programs Learn from neighbors, workshops, or field demonstrations Get computer literate KEEP GOOD RECORDS!!!! Wes Harris Special Projects Coordinator – Public Policy Center for Agribusiness and Economic Development wlharris@uga.edu 912.871.6130 www.caed.uga.edu
