Conservation and the Next Farm Bill – A Statement of Principles A Historic Opportunity As American farmers face growing financial pressures from low crop prices, there is a growing recognition that they can provide even more to society than food and fiber. Farms have a crucial role to play in improving water quality, offsetting climate change, containing urban sprawl, and protecting environmental health and promoting ecological diversity and wildlife habitat. These efforts can be pursued in ways that benefit and support farmers and rural communities that are suffering from serious economic stress. There are proven programs and techniques for conserving and enhancing soil and water quality, wildlife habitat, and natural landscapes that will be utilized by greater numbers of farmers with adequate financial support and on-site technical assistance. The next Farm Bill represents a tremendous opportunity for achieving these important societal goals. Specific aspects that will enable farmers, ranchers, foresters, and other landowners to better maintain viable rural communities and a healthy environment include increasing funding for conservation, best management practices, and the technical assistance, research and development necessary to implement them. An Emerging Consensus A broad new consensus is emerging among agricultural and environmental groups across the country on the need to expand conservation programs in the next Farm Bill. The Lower Mississippi Valley Initiative (LMVI), a multi-state partnership of government agencies and farm interests, has emphasized the need for a comprehensive policy to achieve environmental quality and improve agricultural economic viability. The LMVI states that “federal spending for USDA conservation programs must be increased to meet society’s environmental quality demands and match farmer, rancher, forester, and landowners’ willingness to accept conservation challenges.” The “Vision for Conservation in the 2002 Farm Bill” put forth by the Farm Bill Task Force of the National Association of Conservation Districts (NACD) emphasizes the value of conservation practices Conservation and the Next Farm Bill – 2 for all landowners that enhance quality of life, restore air and watershed health, and contribute to safe and affordable food and fiber. The NACD “Vision” statement notes that although conservation programs have been successful in many respects, they have not achieved their full potential, due to lack of funding for financial incentives and technical assistance. “Revitalize Conservation Programs and Farm Communities in the Next Farm Bill,” a statement by a coalition of thirty national and regional environmental groups, has stated that without a new, broader approach, farm spending will not benefit most farmers, consumers, or the environment, and instead calls for increased funding for conservation programs and stewardship incentives, as well as programs that support research, marketing, and rural economic development. All three documents recognize the need for an annual investment in conservation and stewardship programs of between $8 and 10 billion. The statement of goals and principles below, signed by environmental and farm groups in Louisiana, has drawn from the above sources and others to articulate a shared vision for priorities in the next Farm Bill. Core Principles 1. Conservation and Environmental Protection Since working lands – farms, ranches, and forests – cover more than seventy percent of the continental United States, we can take a major leap forward in meeting both our production and environmental goals by increasing support for agriculture and forestry conservation programs in the coming years. Conservation programs can also help farmers who do not otherwise benefit from federal commodity support programs. 2. Keeping Farming Viable and Profitable The next Farm Bill needs to support conservation and farm income at the same time. The decrease in family farms and the increase in rural poverty need to be reversed. Today’s farmers face decreased market opportunities and lower prices. The next Farm Bill should support efforts to add value to agricultural products, increase regional and local market opportunities for farmers, expand research and development, and facilitate credit and technical assistance to farmers. Conservation and the Next Farm Bill - 3 Economic stresses from low commodity prices and an aging farm population are combining to result in a serious loss of farmland. Farms that are sold are often developed, furthering the problem of urban sprawl as well as a loss of cropland. By rewarding farmers for conservation practices, and making sure benefits from federal programs also benefit rural economies and small to medium-sized farms, the Congress and administration can achieve greater regional equity, help small farmers compete, strengthen rural communities, and make substantial progress on a range of serious environmental problems. Funding should be available to reward “good actors” already implementing high value conservation practices on their land. Proven practices and programs should be expanded, but there should also be incentives for innovation. 3. Multiple Benefits and Natural Services Conservation of soil and water health, nutrient management, habitat protection, and the offsetting conditions that may lead to climate change are important services that farms can deliver to society even as they produce food, fiber, and energy. Hence, the programs that promote and support these goals should be seen as payments for natural services, and not merely subsidies. Although the cost of meeting these goals may seem high, the costs of ignoring them will be far greater. Soil erosion increases water treatment and dredging costs, while nutrient loading puts drinking water and productive fisheries at risk. The costs of providing safe drinking water are projected to cost municipalities $20 billion over the next two decades. On the other hand, the retirement of marginal, highly erodible lands through the Conservation Reserve Program has generated an estimated $3.5 billion in water quality benefits alone. Key Environmental Issues There are a number of key environmental issues that the next Farm Bill can address: Water Quality All states face serious problems from impaired waterbodies. It is estimated that at least half of America’s rivers, lakes, and coastal bays are too polluted for fishing, swimming, or drinking. The rich coastal fisheries off Louisiana’s coast are at risk from nutrient loading upstream in the Conservation and the Next Farm Bill - 4 Mississippi River Basin, which fuels the large hypoxic zone in the Gulf of Mexico. Best-management and conservation practices can successfully control and reduce runoff and nutrient loading to waterways. Yet on a national level, at least two out of five farmers seeking federal support for such efforts are rejected because federal programs lack sufficient funds to meet the demands for participation. There is a growing backlog of applicants for programs like the USDA Wetlands Reserve Program (WRP), which utilize vegetative buffers and wetlands to intercept, slow, and filter runoff, removing significant amounts of nutrients, sediment, pesticides, and bacteria from water. There are also significant opportunities to utilize market-based solutions to nonpoint source pollution, through the development of nutrient-trading programs. Climate Change Agriculture is the economic sector most vulnerable to climate, and to the changes projected to result from human-induced global warming. Louisiana is among the states most vulnerable to drought, floods, and heat waves, as well as the pest species and pathogens that would flourish in a warming climate. At the same time, agriculture can help implement cost-effective measures to mitigate projected climate change impacts by capturing carbon dioxide in the atmosphere and storing it in crops and soil. Sugar cane, one of Louisiana’s leading crops, has one of the highest capacities for carbon sequestration. Farmers can also take actions to reduce emissions of nitrous oxides and methane. The federal government should help spur creative solutions to the problem of climate change. The development of greenhouse gas trading programs would allow participants to sell and purchase reductions in greenhouse gases below existing baselines, with adequate verification systems for carbon storage and trading, and reduction credits for methane and nitrous oxide. Energy Agriculture can help meet the need for diverse energy sources through production of bio-fuels. Production of ethanol is one value-added use of crops, while development of energy-producing crops such as switch grass and eastern gama grass can also help farmers find new markets for Conservation and the Next Farm Bill – 5 existing and new crops with little or no additional investment on their part. More funding for research and technical assistance is necessary to make this happen. Reduced energy use in agriculture can be achieved by increasing the application of energy-saving conservation measures. Urban Sprawl By some estimates, approximately 3 million acres of farm, ranch, and forest land have been converted to urban uses every year since 1992. Uncontrolled urban sprawl imposes a variety of environmental and social costs. Pavement generates more runoff that farmland, and rapid drainage of urban stormwater into local streams can deprive them of the ability to support aquatic life. The growth in urban runoff pollution can even offset expensive improvements to sewage treatment systems. Sprawl also fragments wildlife habitat. Farms near urban centers serve as a primary source of fresh, locally-grown food. Maintaining the mosaic of rural landscapes of farms and ranches that can conserve sensitive landscapes and protect the health of soil and water will require strong rural economies linked to consumers and markets. Conservation and easement programs can help farmers who face escalating land prices and development pressures. Watershed Resource Planning Improving water quality, increasing public interest in wetlands protection and restoration, increasing wildlife habitat, and meeting needs of agricultural, industrial, and municipal water supplies all require watershed-based planning. Watershed planning requires availability of multi-disciplinary technical assistance specialists to assist in development of local plans, and there is a growing demand for these programs throughout the country. Goals for the Next Farm Bill General goals: Increase funding levels for USDA conservation programs, especially for technical assistance staff and resources; Increase acreage and participation “caps” for USDA conservation programs, especially for environmentally-sensitive lands; Increase funding for research and education that focuses on alternative crops, value-added uses, and environmental stewardship; Conservation and the Next Farm Bill - 6 Make the next Farm Bill more equitable, with increased resources for small farms; Make the next Farm Bill increase support for watershed-based planning. Specific Goals: Increase Funding for Conservation Programs We call for expanded funding for the USDA agencies that are responsible for federal conservation programs; in particular, for USDA’s Natural Resources Conservation Service (NRCS), to provide technical assistance to farmers and producers for implementation of conservation programs, and the Farm Service Agency (FSA) for program administrative purposes. The USDA NRCS and Land Grant Institutions’ Extension Services and Experiment Stations have field offices throughout the country to work with local soil and water conservation districts and private landowners, yet lacks the staff and funding to respond to the level of demand for education, outreach, research and technical assistance. Achieving the important societal goals of supporting prosperous farms and rural communities, as well as conserving air, soil, and water, and sensitive habitats will require adequate federal funding at levels above the current “caps.” Along with expanded funding, the acreage levels in these programs need to be expanded to meet the opportunities provided by the backlog of applicants. We call for expanded funding and extended authorization for conservation programs in the next Farm Bill, as well as for incentive programs for onfarm best management practices. These include the following programs: The Conservation Technical Assistance Program (CTA) supports staff necessary to assist agricultural producers and landowners plan and implement site-specific, science-based conservation and environmental protection practices and systems. CTA funding supports staff to assist producers who may not be eligible for for cost-share programs, but must comply with “swampbuster” provisions of the 1985, 1990, and 1996 Farm Bills. The Conservation Reserve and Wetlands Reserve Programs (CRP and WRP) have not only increased wetland acreage and the retirement of environmentally-sensitive lands, but have resulted in significant rebounding of populations of migratory birds and waterfowl and Conservation and the Next Farm Bill – 7 expansion of upland wildlife habitats. Other benefits include pollution abatement from runoff and enhanced flood protection. The Conservation Reserve Enhancement Program (CREP), a voluntary program for agricultural landowners, utilizes federal and state partnerships to implement specific conservation and environmental enhancement practices. Farmers receive annual rental payments and cost-share assistance to establish long-term conservation cover growth on eligible land. The Environmental Quality Incentives Program (EQIP), created to address water quality problems, should be expanded with funding formulas for rewards and incentives, and amended to support irrigation efficiency and other innovative practices to reduce water use demands. Requests from producers for assistance through EQIP have been overwhelming, far exceeding the amount of funds available and putting greater demands on an already overburdened NRCS conservation district delivery system. EQIP has the potential to garner tremendous environmental benefits, as well as to reach socially disadvantaged producers who have not traditionally participated in USDA’s conservation programs. In addition to increased funding levels, the technical assistance funding cap limits in EQIP should be raised to levels that would allow NRCS to do service plans for the life of contracts. The Wildlife Habitat Incentives Program (WHIP) provides cost-sharing to landowners for developing habitat for upland wildlife, wetland wildlife, endangered species, and other wildlife. WHIP has proven to be so popular that it exhausted its funding authorization in two years. There still exists a great demand for program participation. We call for extending authorization and increasing funding for WHIP. The Farmland Protection and Forest Legacy Programs have been funded by Congress since 1992 to match state and local funds to help protect thousands of acres of farms and forestlands, but the small level of funding – less than $100 million since 1992 – have limited their impact. The Sustainable Agriculture Research and Education Program has supported small farmers through better research efforts. Small farms have the ability to produce a broad range of products in environmentally friendly ways. Environmental and health concerns on the part of consumers are creating a growing market for these products. Conservation and the Next Farm Bill - 8 Goals and Benefits for Louisiana We also urge that the new Farm Bill be structured to deliver benefits specific to Louisiana’s needs: Increase Conservation Program Benefits: * Louisiana has been a leader in conservation programs such as WRP and CRP, yet still faces a large backlog of applicants. While Louisiana currently has over 137,000 acres under easements in WRP, potential program demand has been estimated to be four times as much. This program if expanded would also benefit significantly the nation’s carbon sequestration efforts. * Over the past four years, Louisiana has been able to fund only one out of four EQIP applications received, and many applicants have opted not to re-apply after several attempts. * Louisiana lacks a statewide program to secure funds for the cost-share required to implement the Farmland Protection Program. * Louisiana has seen increased public demand for participation in WHIP, FLP, and other conservation programs. * Louisiana does not have an approved CREP program. Meeting Other Critical Conservation Goals: * Incentive-based programs that restore wetlands, reduce nutrient runoff, and improve water quality are key elements in the federal-state Action Plan for Reducing, Mitigating, and Controlling Hypoxia in the Northern Gulf of Mexico; * Louisiana’s sugar cane industry has significant potential to become a leader in carbon-sequestration efforts; *Watershed-scale planning is needed for high priority areas where nonpoint source pollution is a major part of total maximum daily load (TMDL) targets; * Conservation benefits need to be extended to the large number of sharecroppers in Louisiana. Conservation and the Next Farm Bill - 9 Signatory Groups Doug Daigle Hypoxia Program Director Mississippi River Basin Alliance Bob Odum Secretary Louisiana Department of Agriculture & Forestry Brad Spicer Mark Davis Assistant Commissioner Executive Director Office of Soil and Water Conservation Coalition to Restore Coastal La. La. Department of Agriculture & Forestry; La. Association of Soil and Water Conservation Districts; La. State Soil & Water Conservation Committee Cynthia Sarthou Executive Director Gulf Restoration Network Carlton Dufrechou Executive Director Lake Pontchartrain Basin Foundation Paul Davidson Director La. Black Bear Conservation Committee; La. Organic Association Randy Lanctot Executive Director Louisiana Wildlife Federation Supporting Organizations Louisiana State University Agriculture Center Louisiana Farm Bureau