Agricultural Conservation Issues in the 111th Congress

Congressional research reportSep 21, 2010

Ask Donna

What actually matters in this document.

Text

Agricultural Conservation Issues in the

111th Congress

(name redacted)

Analyst in Agricultural Conservation and Natural Resources Policy

September 21, 2010

Congressional Research Service

7-....

www.crs.gov

R40692

CRS Report for Congress

Prepared for Members and Committees of Congress

Agricultural Conservation Issues in the 111th Congress

Summary

Agricultural conservation has been a public policy issue for more than 60 years. Congress has

repeatedly taken action on the issue through water and soil legislation, often as part of omnibus

farm bills. Early policy decisions were directed at addressing natural resource concerns on the

farm, primarily reducing high levels of soil erosion and providing water to agriculture in

quantities and quality that enhanced farm production. In more recent years, conservation policy

has shifted to concerns about the off-farm impacts of agricultural activities.

The latest farm bill, the Food, Conservation, and Energy Act of 2008 (P.L. 110-246), reauthorized

most existing conservation programs, modified several programs, and created a few new

programs. The U.S. Department of Agriculture’s (USDA’s) conservation efforts have centered on

implementing these conservation programs through working land conservation practices, retiring

land from production or establishing conservation easements, and providing technical assistance.

Program implementation controversies could lead to congressional oversight or action, especially

given the recent financial statement audit reports on conservation program payments at USDA.

Other emerging issues in the 111th Congress could have a significant impact on agricultural

conservation. The climate change debate and use of ecosystem services markets has brought

conservation to the forefront of discussion on the role of agriculture in reducing greenhouse gas

emissions. Also, the effect of ethanol production on natural resources and changes in land use is

an ongoing concern in the area of biofuels policy. Other environmental issues for agriculture such

as concentrated animal feeding operation regulations, greenhouse gas emission reporting for

livestock producers, and wetlands mitigation could lead to expanded opportunities and challenges

for many conservation efforts.

Appropriations and budget issues continue to influence conservation programs and policy.

Conservation programs with mandatory funding have been routinely reduced through annual

appropriation bills. In FY2009 and FY2010, the reductions were limited to a handful of programs,

with the Environmental Quality Incentives Program (EQIP) receiving the largest reductions,

including $270 million in FY2009 and FY2010. The watershed programs have experienced an

increase in congressionally directed projects through appropriations, with Watershed and Flood

Prevention Operations being 97% earmarked in FY2009 and 74% in FY2010. The ongoing issue

of funding for conservation technical assistance in mandatory programs will likely be raised again

due to an expiring authority.

Other issues of potential interest in the 111th Congress include implementation of conservation

program payment and income limitations, use of the Conservation Effects Assessment Project,

and recent financial audits and conservation contract administration concerns.

Congressional Research Service

Agricultural Conservation Issues in the 111th Congress

Contents

Introduction ................................................................................................................................1

Current Major Activities........................................................................................................2

Overview of Conservation Programs .....................................................................................2

Working Lands................................................................................................................2

Land Retirement and Easement Programs .......................................................................3

Watershed Programs........................................................................................................4

Other Selected Programs .................................................................................................4

Agricultural Conservation Issues in the 111th Congress................................................................5

2008 Farm Bill Implementation.............................................................................................5

Conservation Reserve Program (CRP).............................................................................5

Environmental Quality Incentives Program (EQIP) .........................................................6

Conservation Stewardship Program (CSP).......................................................................7

Wildlife Habitat Incentives Program (WHIP) ..................................................................8

Wetlands Reserve Program (WRP)..................................................................................9

Farmland Protection Program (FPP)................................................................................9

New Programs ................................................................................................................9

Chesapeake Bay Watershed Program....................................................................... 10

Voluntary Public Access and Habitat Incentives Program ........................................ 10

Sodsaver Provision.................................................................................................. 10

Environmental Services Markets ............................................................................. 11

Payment and Income Limitations .................................................................................. 12

Payment Limits....................................................................................................... 12

Income Limits......................................................................................................... 13

Conservation Funding and Oversight................................................................................... 14

Spending Limits on Mandatory Funding........................................................................ 14

Congressionally Directed Projects ................................................................................. 15

Technical Assistance ..................................................................................................... 15

Financial Audit and Contract Administration ................................................................. 16

Conservation Effects Assessment Project (CEAP) ......................................................... 17

Emerging and Continuing Issues ......................................................................................... 18

Ecosystem Services Markets ......................................................................................... 18

Climate Change ............................................................................................................ 19

Energy Effects .............................................................................................................. 21

Figures

Figure 1. 2009 Estimated Funding for Conservation Programs.....................................................3

Figure 2. CSP FY2010 Sign-Up Period .......................................................................................8

Figure 3. Prairie Pothole National Priority Area......................................................................... 11

Tables

Table 1. EQIP Funded and Unfunded Applications and Funds Obligated .....................................6

Congressional Research Service

Agricultural Conservation Issues in the 111th Congress

Table 2. Conservation Programs Affected by Payment and Income Limitation Changes in

the 2008 Farm Bill ................................................................................................................. 12

Table A-1. USDA Agricultural Conservation Program Funding Levels, FY2009 and

FY2010.................................................................................................................................. 24

Appendixes

Appendix. USDA Conservation Programs: Funding .................................................................. 24

Contacts

Author Contact Information ...................................................................................................... 25

Congressional Research Service

Agricultural Conservation Issues in the 111th Congress

Introduction

Agricultural conservation has been a public policy issue for more than 60 years, an issue

repeatedly recast as new problems have emerged or old problems have resurfaced. Early

conservation efforts were focused on two themes—reducing high levels of soil erosion and

providing water to agriculture in quantities and quality that enhanced farm production.

Congress responded repeatedly to these themes by creating or revising programs designed to

reduce resource problems on the farm. By the early 1980s, however, concern was growing that

these programs were not adequately dealing with environmental problems resulting from

agricultural activities (especially off the farm). Publicized instances of significant problems,

especially high soil erosion rates said to rival the dust bowl era, increased awareness and

intensified the policy debate. In 1985, conservation policy took a new direction when Congress

enacted four major new conservation programs in the conservation title of the Food Security Act

of 1985 (P.L. 99-198): the Conservation Reserve Program (CRP), Sodbuster, Conservation

Compliance, and Swampbuster. These programs, all administered by the U.S. Department of

Agriculture (USDA), were the first conservation programs designed to deal with environmental

problems related to the off-farm impacts of agricultural activities.

Provisions enacted in subsequent farm bills, including in 1990, 1996, 2002, and 2008, reflect a

rapid evolution of the conservation agenda, including the growing influence of environmentalists

and other non-agricultural interests in the formulation of conservation policy, and a recognition

that agriculture was not treated like other business sectors in many environmental laws.1 Congress

also began funding many of these new programs through mandatory spending for the first time,

using the borrowing authority of USDA’s Commodity Credit Corporation (CCC)2 as the funding

mechanism instead of annual appropriations. In addition to the original soil erosion and water

quality and quantity issues, the conservation agenda has continued to expand to address other

natural resource concerns such as wildlife habitat, air quality, wetlands restoration and protection,

energy efficiency, and sustainable agriculture.

Many conservation programs receive continued support among producers and Congress, as

evidenced by the recent reauthorization and expansion of existing programs and creation of new

ones in the most recent farm bill (Food, Conservation, and Energy Act of 2008, P.L. 110-246).

The enacted bill addressed several emerging issues, such as payment structure, geographic

targeting, program complexity, the importance of large-scale conservation efforts, and

measurement of costs and effectiveness. Funding also played a large role in the 2008 farm bill

debate as a pronounced domestic budget constraint caused several conservation groups to

compete with other farming interests for the necessary resources to expand and continue many

conservation programs. Many of these general policy issues were central to outcomes in the

enacted conservation title of the farm bill.

1

Conservation and Trade Act of 1990 (P.L. 101-624), Federal Agricultural Improvement and Reform Act of 1996 (P.L.

104-127), Farm Security and Rural Investment Act of 2002 (P.L. 107-171), and Food, Conservation, and Energy Act of

2008 (P.L. 110-246).

2

The CCC is the funding mechanism for the mandatory payments that are administered by various agencies of USDA.

Congressional Research Service

1

Agricultural Conservation Issues in the 111th Congress

Current Major Activities

USDA’s conservation efforts have centered in recent years on implementing conservation

programs that target working lands, remove land from production (also known as retiring land) or

create conservation easements, and provide technical assistance. Funding for the overall

conservation effort has grown significantly since the 2002 farm bill (P.L. 107-171) and many

reauthorized programs received increases in funding in the 2008 farm bill. Recent trends in policy

for the suite of conservation programs include less emphasis on land retirement and on land

producing row crops, and more attention to conservation on land in other agricultural uses and to

livestock producers. Congress in the 2008 farm bill expanded many program benefits to include

specialty crop producers, producers transitioning to organic production, forested and managed

lands, pollinator habitat and protection, and nutrient and pest management.

Lead agricultural conservation agencies within USDA are the Natural Resources Conservation

Service (NRCS), which provides technical assistance and administers most programs, and the

Farm Service Agency (FSA), which administers the largest program, CRP. These agencies are

supported by others in USDA that supply research and educational assistance, including the

Agricultural Research Service, the Forest Service, and the Economic Research Service. 3 In

addition, the conservation effort involves a very large array of partners, including other federal

agencies, state and local governments, and private organizations, among others, who provide

funds, expertise, and other forms of assistance to the conservation effort.

Overview of Conservation Programs

There are currently more than 20 USDA agricultural conservation programs that assist private

landowners with natural resource concerns. Conservation programs are grouped into working

land programs, land retirement and easement programs, watershed programs, and other programs.

For a brief description of the individual USDA agricultural conservation programs, see CRS

Report R40763, Agricultural Conservation: A Guide to Programs, and for program funding

levels, see the Appendix. 4 Figure 1 illustrates the estimated amount of funding in FY2009 for

each group of programs.

Working Lands

Working lands conservation programs are typically classified as programs that allow private land

to remain in production, while implementing various conservation practices to address natural

resource concerns specific to the area. The largest of these programs is the Environmental Quality

Incentives Program (EQIP), currently authorized at a total of $7.3 billion between FY2008 and

FY2012. Others, such as the Wildlife Habitat Incentives Program (WHIP), Agricultural

Management Assistance (AMA), and Agricultural Water Enhancement Program (AWEP), operate

similarly to EQIP; however, they target specific resource concerns or geographic areas. The new

Conservation Stewardship Program (CSP) replaces the Conservation Security Program and is

designed to encourage producers to address specific resource concerns in a comprehensive

manner.

3

For more information on ARS projects, see http://www.ars.usda.gov/Research/Research.htm; for ERS projects, see

http://www.ers.usda.gov/Browse/view.aspx?subject=NaturalResourcesEnvironment; and for FS projects, see

http://www.fs.fed.us/projects/.

4

For additional information on agricultural conservation programs, see CRS Report R40763, Agricultural

Conservation: A Guide to Programs.

Congressional Research Service

2

Agricultural Conservation Issues in the 111th Congress

Figure 1. 2009 Estimated Funding for Conservation Programs

Land Retirement

and Easement

Programs

46%

Emergency

Programs

3%

Compliance and

Technical

Assistance

Programs

17%

Watershed

Programs

5%

Working Lands

Programs

29%

Source: CRS Funding estimates compiled from FY2009 Omnibus Appropriations Act (P.L. 111-8), American

Recovery and Reinvestment Act of 2009 (P.L. 111-5), and USDA, FSA, CCC Commodity Estimates Book, FY2010

Mid-Session Review, August 25, 2009, http://www.fsa.usda.gov/FSA/webapp?area=about&subject=landing&topic=

bap-bu-ce.

Notes: Technical assistance includes funding for compliance programs. Funding for extension and research is not

included. Total funding for conservation programs is approximately $5.3 billion.

Land Retirement and Easement Programs

Land retirement programs provide federal payments to private agricultural landowners for

temporary changes in land use or management to achieve environmental benefits. Conversely,

conservation easements impose a permanent land-use restriction that is voluntarily placed on the

land in exchange for a government payment. The largest land retirement program is the

Conservation Reserve Program (CRP), which removes land from production and is authorized to

enroll up to 32 million acres. Other programs such as the Wetlands Reserve Program (WRP) and

the Grasslands Reserve Program (GRP) use a combination of long-term or permanent easements

as well as restoration contracts to protect wetlands and grasslands from production. The Farmland

Protection Program (FPP) also uses easements; unlike the aforementioned programs, however, it

does not remove land from production, but rather restricts productive farmland from being

developed for non-farm purposes.

Congressional Research Service

3

Agricultural Conservation Issues in the 111th Congress

USDA Agricultural Conservation Programs

Working Lands Programs—Environmental Quality Incentives Program (EQIP), Conservation Stewardship

Program (CSP)/Conservation Security Program, Wildlife Habitat Incentives Program (WHIP), Agricultural Water

Enhancement Program (AWEP), and Agricultural Management Assistance (AMA).

Land Retirement and Easement Programs—Conservation Reserve Program (CRP, including Conservation

Reserve Enhancement Program (CREP) and CRP Farmable Wetlands), Wetlands Reserve Program (WRP), Farmland

Protection Program (FPP), Grassland Reserve Program (GRP), and Healthy Forests Reserve Program (HFRP).

Watershed Programs—Watershed and Flood Prevention Operations (also referred to as the Small Watershed

Programs), Watershed Rehabilitation, and Watershed Surveys and Planning.

Emergency Programs—Emergency Conservation Program (ECP) and Emergency Watershed Program (EWP)

(includes floodplain easements).

Compliance—Conservation Compliance, Sodbuster, Swampbuster, and Sodsaver.

Technical Assistance Programs—Conservation Operations (includes Conservation Technical Assistance, Survey,

Soil Survey, Grazing Lands Conservation Initiative, Plant Materials Centers), Resource Conservation and

Development (RC&D) program.

Other Conservation Programs and Provisions—Chesapeake Bay Watershed Program, Cooperative

Conservation Partnership Initiative, Conservation Innovation Grants, Great Lakes Basin Program, Regional Equity,

State Technical Committees, Voluntary Public Access and Habitat Incentive Program, and Grassroots Source Water

Protection Program.

Watershed Programs

Watershed and Flood Prevention Operations (P.L. 83-566 and P.L. 78-534) are two separate

program authorities that have almost identical objectives and operations. These programs are

sometimes referred to as the Small Watershed Programs. Through these programs, NRCS partners

with local sponsors to carry out activities for soil conservation; flood prevention; conservation,

development, utilization and disposal of water; and conservation and proper utilization of land.

The Watershed Rehabilitation program was authorized in 2000 (P.L. 106-472) to rehabilitate

watershed structures created under the Watershed and Flood Prevention Operations programs that

have reached or exceeded their design life.

Other Selected Programs

USDA administers several other conservation programs. Technical assistance programs, such as

Conservation Operations (including Conservation Technical Assistance, Survey, Soil Survey,

Grazing Lands Conservation Initiative, and the Plant Materials Centers) provide landowners with

science-based conservation information and technical expertise (e.g., engineering and biological)

unique to the region and land-use type. USDA also administers compliance programs such as

Sodbuster, Swampbuster, conservation compliance, and Sodsaver, which halt a producer’s access

to many federal farm program benefits if they do not meet conservation program requirements for

highly erodible lands and wetlands. Programs such as the Emergency Conservation Program

(ECP) and the Emergency Watershed Program (EWP) provide disaster assistance for farmland

rehabilitation and impairments to watersheds, and are funded on an ad-hoc emergency basis.

Congressional Research Service

4

Agricultural Conservation Issues in the 111th Congress

Agricultural Conservation Issues in the 111th

Congress

2008 Farm Bill Implementation

The Food, Conservation, and Energy Act of 2008 (P.L. 110-246), the 2008 farm bill, reauthorizes

almost all existing conservation programs, modifies several programs, and creates various new

conservation programs. The changes address eligibility requirements, program definitions,

enrollment and payment limits, contract terms, evaluation and application ranking criteria, among

other administrative issues.5 Following the passage of the 2008 farm bill, USDA has taken steps

toward implementation of many conservation programs. In the 111th Congress, lawmakers’

attention likely will be focused on USDA’s implementation of these provisions. The following

sections provide a brief description of implementation issues within some larger conservation

programs and provisions.

Conservation Reserve Program (CRP)

The 2008 farm bill reauthorized CRP and reduced the maximum acreage cap to 32 million acres,

down from a cap of 39.2 million acres established in the 2002 farm bill. There are two types of

sign-ups for enrolling land in the CRP: general and continuous. General sign-ups are specified

enrollment periods during which landowners compete nationally to enroll their land in the CRP.

Following the expiration of acres in 2009, which reduced the total enrolled acres below the 32

million acre cap, a general sign-up was expected to enroll additional acres. During a June 2010

hearing before the House Committee on Agriculture, USDA was questioned about the delay in

offering a CRP general sign-up. 6 In response, USDA indicated that an executive branch control on

mandatory program spending, often referred to as administrative PAYGO, resulted in delayed

implementation of CRP, including enrolling additional acres. While Congress may have the

understanding that it has given USDA statutory authority and access to mandatory funding to

enroll 32 million acres, as well as the expectation that the authority would be used, the process

outlined by the Office of Management and Budget (OMB) appears to have prevented USDA from

reaching that goal, at least for a time. 7

USDA eventually announced a new general sign-up in August 2010 (sign-up number 39). Unlike

continuous sign-up, general sign-up is always competitive. Approximately 85% of CRP acreage

(26.7 million of 31.3 million acres) is currently enrolled through general sign-up. 8 For this most

recent general sign-up, FSA enrolled 4.3 million acres of 4.8 million acres offered. Over half the

5

For additional information on conservation provisions in the farm bill, see CRS Report RL34557, Conservation

Provisions of the 2008 Farm Bill.

6

U.S. Congress, House Committee on Agriculture, “Hearing to Review U.S. Farm Safety Net Programs in Advance of

the 2012 Farm Bill,” June 17, 2010, at http://agriculture.house.gov/hearings/statements.html. Unofficial transcript of

testimony by James Miller, USDA Under Secretary for Farm and Foreign Agricultural Services, provided to CRS by

the committee on June 18, 2010.

7

For more information on administrative PAYGO and its role in CRP sign-up, see CRS Report R41375, OMB Controls

on Agency Mandatory Spending Programs: “Administrative PAYGO” and Related Issues for Congress.

8

USDA, FSA, Conservation Reserve Program Monthly Summary, Washington, DC, August 2010,

http://www.fsa.usda.gov/Internet/FSA_File/aug2010crpstat.pdf.

Congressional Research Service

5

Agricultural Conservation Issues in the 111th Congress

acreage enrolled (over 2.7 million acres, or 57%) was set to expire on September 30, 2010, or had

expired in 2009.9 States with the most offers accepted during the 39th sign-up were Texas

(858,436 acres), Colorado (739,467 acres), and Kansas (618,905 acres).

As of August 2010, there is a total of 31.3 million acres enrolled in CRP. According to USDA, the

remaining acres below the 32 million-acre cap are reserved for continuous sign-up and other signup efforts. Approximately 4.4 million acres are set to expire on September 30, 2011, possibly

creating room for another general sign-up. Future general sign-ups, however, could be further

impacted by administrative PAYGO if no congressional action is taken and OMB continues to

enforce its current policies.

Environmental Quality Incentives Program (EQIP)

With the 111th Congress experiencing continued budget constraints, EQIP could face similar

challenges, with a potential reduction in mandatory funding levels and a continuing backlog of

unfunded applications.10 The 2008 farm bill continued an increase in authorized mandatory

funding that began with the 2002 farm bill. Mandatory funding for EQIP has grown substantially

from its FY2002 level of $200 million, to the authorized level of $1.75 billion in FY2012.

Despite this significant increase in authorized mandatory funding, annual appropriations acts have

reduced the actual funding levels by a total of nearly $1.16 billion from FY2005 through

FY2010.11 Some of this reduction has come at the request of both the current and previous

Administrations. The number of pending applications continues to exceed the amount of available

funding (Table 1). In 2009, 37% of eligible applications were funded. Many conservation groups

are concerned that this has deterred producers from applying and enrolling in the program. Others

point out that despite reductions from the authorized level, total funding continues to increase.

This issue will likely intensify if annual appropriations continue to reduce actual funding for

EQIP below authorized mandatory levels.

Table 1. EQIP Funded and Unfunded Applications and Funds Obligated

Fiscal

Year

Total Applications

Funded

Total Applications

Unfunded

Percentage of

Applications Funded

Funds Obligated (Financial

Assistance, in thousands)

2000

16,249

37,712

30%

$139,606

2001

17,648

29,777

37%

$160,123

2002

19,817

70,495

22%

$322,193

2003

30,251

174,062

15%

$483,484

2004

46,413

135,394

26%

$718,150

2005

49,406

32,708

60%

$794,261

2006

41,190

32,633

56%

$787,968

2007

41,700

40,535

51%

$784,186

9

“USDA Accepts Offers on 4.3 Mil. Acres into CRP,” Pro Farmer, vol. 38, no. 38 (2010), p. 3.

10

For additional information on reductions in mandatory program spending, see CRS Report R41245, Reductions in

Mandatory Agriculture Program Spending.

11

Annual appropriations reduce funding for several other agriculture mandatory programs as a means of meeting

overall budget targets. EQIP, however, has taken the largest reductions of all conservation programs.

Congressional Research Service

6

Agricultural Conservation Issues in the 111th Congress

Fiscal

Year

Total Applications

Funded

Total Applications

Unfunded

Percentage of

Applications Funded

Funds Obligated (Financial

Assistance, in thousands)

2008

48,116

23,803

67%

$924,221

2009

31,960

54,329

37%

$976,196

Source: USDA, NRCS, EQIP Contract and Funding Information, http://www.nrcs.usda.gov/programs/eqip/.

Conservation Stewardship Program (CSP)

The original Conservation Security Program, established in the 2002 farm bill (P.L. 107-171),

faced numerous implementation challenges, drawing criticism by many in Congress.12 The 2008

farm bill established the new Conservation Stewardship Program (CSP) to restructure and replace

the old CSP. NRCS implements CSP through a final rule published in the Federal Register on

June 3, 2010.13 Applications for CSP are accepted on a continuous basis and ranked and funded

based on established cut-off dates. During the first sign-up period in FY2010, NRCS funded over

10,600 contracts enrolling approximately 12.7 million acres.14 States enrolling the most

applications were Missouri (1,007), Minnesota (906), and Iowa (729).15

One possible implementation issue with the new CSP could be similar to one faced by the old

CSP—cost restrictions. NRCS argued that because the 2002 farm bill placed a statutory 15%

limit on technical assistance cost to administer CSP, program implementation was constrained.

The new CSP could face similar implementation concerns owing to a 2008 farm bill requirement

that the program achieve a national average program cost of $18 per acre. This per-acre cost

includes all financial assistance paid to the producer, technical assistance, and any other expense

associated with enrollment or participation in the program. Depending on the cost of

implementing CSP, the total per-acre payment offer to producers during a sign-up could be

reduced in order to meet the average $18 per-acre cost requirement. This lower per-acre funding

level could also impact the type of acres enrolled if NRCS must enroll 12.7 million acres

annually. For example, following the FY2010 sign-up period, 62% of enrolled acres are range,

pasture, and non-industrial private forest land, which have a lower per-acre payment than

cropland (Figure 2).

12

Many of CSP’s implementation issues centered around additional eligibility and enrollment criteria added by USDA

but not specified in the 2002 farm bill. These issues included implementing CSP in certain watersheds on a rotating

basis; requiring producers to meet strict eligibility criteria; sorting producers’ applications into enrollment categories;

and reducing certain CSP payments. USDA justified the restrictive actions because congressional authorizers crafted an

entitlement program with unlimited funding, but congressional appropriators limited that funding. For additional

information on CSP, see CRS Report RS21740, Conservation Security Program: Implementation and Termination.

13

USDA, CCC, “Conservation Stewardship Program,” 75 Federal Register 31610, June 3, 2010.

14

NRCS is required to enroll, “to the maximum extent practicable,” 12,769,000 acres annually in CSP (16 U.S.C.

3838g).

15

NRCS, Conservation Stewardship Program Ranking Period One Results, June 30, 2010, http://www.nrcs.usda.gov/

programs/new_csp/2010rp-one-results.html.

Congressional Research Service

7

Agricultural Conservation Issues in the 111th Congress

Figure 2. CSP FY2010 Sign-Up Period

Forest

9%

Cropland

38%

Range

47%

Pasture

6%

Source: NRCS, FY2010 Ranking Period One—Final Results, Conservation Stewardship Program, July 22, 2010,

http://www.nrcs.usda.gov/programs/new_csp/2010rp-one-results.html.

Wildlife Habitat Incentives Program (WHIP)

The 2008 farm bill placed new limitations on lands eligible for enrollment in WHIP, which will

likely reduce the number of eligible acres in traditionally high participation states. Language was

added requiring WHIP to be used “for the development of wildlife habitat on private agricultural

land, nonindustrial private forest land, and tribal lands.” The addition of this language reverses

the previous interpretation by NRCS, which extended eligibility to all privately owned land, tribal

land, state/local government land, or federal land. By previously offering support for wildlife

habitat projects on all land and aquatic areas, WHIP provided an assistance option to landowners

who were unable to meet the specific eligibility requirements of other USDA conservation

programs. The new requirement of agricultural production could shift financial assistance for

WHIP contracts away from the traditionally large-allocation states in the Northeast to more

agriculturally intensive states in the West and Midwest. For example, in FY2007, prior to the

agricultural production requirement, states that received large WHIP allocations were Rhode

Island, Alaska, Hawaii, Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, and

Vermont.16 In FY2009, following the agricultural production requirement, states that received

large WHIP allocations were Texas, Alaska, California, New Hampshire, and Florida.17

16

USDA, NRCS, FY2007 - WHIP Allocations to States, 2007, http://www.nrcs.usda.gov/programs/2007_allocations/

07WHIPAlloc.pdf.

17

USDA, NRCS, WHIP Financial Assistance Dollars Allocated, 2009, http://www.nrcs.usda.gov/programs/whip/

FY09contract_info/whip-dollars-obligated-2009-11-19-09.pdf.

Congressional Research Service

8

Agricultural Conservation Issues in the 111th Congress

Wetlands Reserve Program (WRP)

The 2008 farm bill reauthorized WRP and increased the maximum enrollment to 3,041,200 acres,

an increase of 766,200 acres above the previous cap established in the 2002 farm bill. The

program receives mandatory funding through the Commodity Credit Corporation (CCC) and is

estimated at $441 million for FY2009.18 Between FY2003 and FY2007, WRP enrollment was

reduced through annual appropriations bills. As Congress faces continued budget constraints,

WRP could see similar reductions in the future.

One provision in the 2008 farm bill has generated considerable response from the environmental

and conservation communities. Under Section 2203, Congress extended the length of time

required to own the land before an applicant is eligible for the program from one year to seven

years. The bill retained the exemptions to the ownership requirement, allowing a landowner to

enroll land owned for less than seven years if the land was obtained (1) through inheritance;

(2) through foreclosure; or (3) for any reason that gives NRCS assurance that the property was

obtained for a purpose other than placing it in WRP. An investigation, conducted by the House

Agriculture Committee, prior to the seven-year requirement found that NRCS “routinely ignored,

or excluded its non-compliance with, the twelve-month ownership requirement” when in many

cases partnering organizations would purchase the land for the explicit purpose of enrolling it into

a WRP easement.19 Many environmental organizations believe the seven-year requirement is

excessive and will reduce the number of eligible lands and discourage enrollment. Supporters of

the requirement point to the results of the House Agriculture Committee’s investigation, which

stated that NRCS “became a cash cow enabling partner organizations to acquire private lands at

discount prices.”20

Farmland Protection Program (FPP)

The 2008 farm bill (P.L. 110-246, Sec. 2401) reauthorized FPP and made significant changes. The

enacted bill changes the program’s purpose from protecting topsoil to protecting the land’s

agricultural use by limiting nonagricultural uses and including lands that promote state and local

farmland protection. It also restructures the program to emphasize longer-term and renewable

cooperative agreements, and changes the authority of the Secretary from purchasing conservation

easements to facilitating the purchase of conservation easements. Some conservation

organizations have praised the increased authority for partners, while others have expressed

concerns that it could create inconsistencies within the program.

New Programs

In addition to the changes made to existing agricultural conservation programs, the enacted 2008

farm bill also expands the range of USDA conservation activities by creating several new

programs, including a program expanding conservation activities in the Chesapeake Bay region, a

18

U.S. Congressional Budget Office, CBO January 2009 Baseline for CCC, FCIC, and Conservation, January 2009.

U.S. Congress, House Committee on Agriculture, Subcommittee on Conservation, Credit, Energy, and Research,

Testimony from John Jurich, Investigator, Committee on Agriculture, U.S. House of Representatives, subcommittee

hearing to review the USDA administration of conservation program contracts, 111th Cong., 1st sess., March 25, 2009,

http://agriculture.house.gov/testimony/111/h032509/Jurich.pdf.

20

Ibid.

19

Congressional Research Service

9

Agricultural Conservation Issues in the 111th Congress

new state grants program, a provision to limit production on native sod, and a provision

promoting market-based approaches to conservation. The progress USDA has made in

implementing these new programs varies and could be of interest for congressional oversight.

Chesapeake Bay Watershed Program

This program (Sec. 2605) is targeted at conserving and protecting the Chesapeake Bay and the

water sources that make up the watershed. The bill authorizes $188 million in mandatory funding

(FY2009-FY2012) to be used through existing conservation programs. Targeting funding to

specific geographic regions was debated during the 2008 farm bill. The effectiveness of targeting

federal conservation spending through identified states, regions, or watersheds is still a question

when developing conservation policy. The Chesapeake Bay Watershed Program has received

widespread support indicating that similar programs targeting other watersheds could be created

by Congress in the future.

Voluntary Public Access and Habitat Incentives Program

Also referred to as the “Open Fields” program, this program authorizes state grants to encourage

landowners to provide public access for wildlife-dependent recreation. The bill provides $50

million in mandatory funds (FY2009-FY2012) for the program. The Farm Service Agency (FSA)

implements the program through an interim rule published in the Federal Register on July 8,

2010.21 Only state and tribal governments are eligible for grants under this program. Funds may

be used to either expand existing public access programs or create new public access programs, or

to provide incentives to improve habitat on enrolled program lands. It is unclear how program

funding will be divided among these two program objectives.

Sodsaver Provision

This 2008 farm bill provision (Sec. 12020) makes producers that plant an insurable crop (over 5

acres) on native sod ineligible for crop insurance and the noninsured crop disaster assistance

(NAP) program for the first five years of planting. The conference agreement states that this

provision may apply to virgin prairie converted to cropland in the Prairie Pothole National

Priority Area (Figure 3), if elected by the state. USDA established a sign-up date of February 15,

2009, in which no governors opted to participate in the program. Additional opportunities to

participate are possible though thought unlikely if the program remains voluntary.

21

USDA, CCC, “Voluntary Public Access and Habitat Incentive Program,” 75 Federal Register 39135, July 8, 2010.

Congressional Research Service

10

Agricultural Conservation Issues in the 111th Congress

Figure 3. Prairie Pothole National Priority Area

Source: USDA, RMA, Prairie Pothole National Priority Area, April 28, 2008, http://www.rma.usda.gov/data/

pothole/2008/all_states.pdf

Environmental Services Markets

The 2008 farm bill also included a new conservation provision intended to facilitate the

participation of farmers and ranchers in emerging carbon and emissions trading markets by

directing USDA to establish guidelines for standards, accounting procedures, reporting protocols,

and verification processes for carbon storage and other types of environmental services markets

(this is discussed further in the section on “Ecosystem Services Markets,” below). 22 This

provision was also intended to help address some of the measurement and quantification issues

surrounding agricultural and forestry carbon credits, as well as to expand existing voluntary

conservation and other farm bill programs, provide incentives that could accelerate opportunities

for agriculture and forestry to reduce emissions associated with climate change, adopt energy

efficiency measures, and produce renewable energy feedstocks.

In December 2008, USDA announced it would create a federal government-wide Conservation

and Land Management Environmental Services Board to assist USDA with the “development of

new technical guidelines and science-based methods to assess environmental service benefits

which will in turn promote markets for ecosystem services including carbon trading to mitigate

climate change.”23 A federally chartered public advisory committee will advise the board, and will

include farmers, ranchers, forest landowners, and tribal representatives, as well as representatives

from state natural resource and environmental agencies, agriculture departments, and

conservation and environmental organizations. USDA’s press release also announced that USDA

was establishing a new Office of Ecosystem Services and Markets, which would provide

administrative and technical assistance in developing the uniform guidelines and tools needed to

create and expand markets for ecosystem services in the farming and forestry sectors. In March

2010, USDA announced that the office’s title had changed to the Office of Environmental

Markets (OEM), and its functions were moved to the USDA Natural Resources and Environment

22

P.L. 110-246, Section 2709, included new language amending Section 1245(f) of the Food Security Act of 1985.

Ecosystem services refers to the environmental goods and services and other benefits that the society obtains from the

environment and ecosystems, both natural and managed. Examples include water filtration, flood control, provision of

habitat, carbon storage, and many others. For more information, see CRS Report RL34042, Provisions Supporting

Ecosystem Services Markets in U.S. Farm Bill Legislation, by (name redacted).

23

USDA, “USDA Announces New Office of Ecosystem Services and Markets,” Release No. 0307.08, Dec. 18, 2008.

Congressional Research Service

11

Agricultural Conservation Issues in the 111th Congress

(NRE) mission area.24 No additional information has been provided on either the board’s or the

office’s activities.

Payment and Income Limitations

Two types of payment limits exist for conservation programs. One sets the maximum amount of

conservation program payments that a person or legal entity can receive during a specified period

of time. The other (known as the adjusted gross income or AGI limit) sets the maximum amount

of income that an individual can earn and still remain eligible for conservation program benefits.

Limitations on payments received through conservation programs were expanded in the 2008

farm bill. Prior to the 2008 farm bill, most conservation programs were affected by an income

limitation, not a limitation on payments. Now, most programs are affected by both (see Table 2).

Table 2. Conservation Programs Affected by Payment and Income Limitation

Changes in the 2008 Farm Bill

Prior Law (P.L. 107-171, as amended)

Current Law (P.L. 110-246)

Payment Limit

Income Limit

Payment Limit

Income Limit

AMA, CRP, and

EQIP

AMA, Chesapeake Bay Watershed

Program, CRP, CSP, EQIP, FPP,

GRP, WRP, WHIP, and other

programs under Title II of the

2002 farm bill

AMA, Chesapeake

Bay Watershed

Program, CRP, CSP,

CCPI, EQIP, AWEP,

FPP, GRP, WRP, and

WHIP

AMA, AWEP, CRP, CSP, EQIP,

FPP, GRP, GSWC, WRP, WHIP,

and other programs under Title

II of the 2008 farm bill

Source: Income limits may be found under Section 1604 of the 2002 farm bill (P.L. 107-171) and Section 1604

the 2008 farm bill (P.L. 110-246). Payment limitations may be found under individual program sections under

Title II of both enacted bills.

Notes: Listed programs include Environmental Quality Incentives Program (EQIP), Conservation Stewardship

Program/Conservation Security Program (CSP), Wildlife Habitat Incentives Program (WHIP), Agricultural Water

Enhancement Program (AWEP), Agricultural Management Assistance (AMA), Conservation Reserve Program

(CRP), Wetlands Reserve Program (WRP), Farmland Protection Program (FPP), Grassland Reserve Program

(GRP), Cooperative Conservation Partnership Initiative (CCPI), and Ground and Surface Water Conservation

(GSWC).

Payment Limits

Payment limits are the maximum amount of conservation program funding that a person or legal

entity can receive during a specified period of time. As with commodity programs, payment limits

for conservation programs are controversial because of issues relating to the size of operations

receiving support and who should receive payments. The effect of payment limits varies by

program and the conservation practices implemented.25 Most conservation programs with higher

payments tend to be skewed to farms and ranches with larger acreage because payments for many

conservation practices are scaled by the number of acres on which that practice is applied. 26

24

In addition to OEM, USDA’s NRE mission area oversees the USDA Forest Service and the Natural Resources

Conservation Service.

25

Payment limits vary from $300,000 for any six-year period for EQIP to $50,000 annually for WHIP payments.

26

Soil and Water Conservation Society and Environmental Defense, Environmental Quality Incentives Program

(EQIP)—Program Assessment, March 2007, http://www.swcs.org/documents/filelibrary/EQIP_assessment.pdf.

Congressional Research Service

12

Agricultural Conservation Issues in the 111th Congress

Supporters of payment limits are often advocates for smaller farms and opponents of large animal

feeding operations. Most conservation programs provide a percentage of the cost to install

conservation practices (known as cost-share) or implement site-specific management practices.

As noted above, most of these payments are made on a per-acre applied basis, thereby skewing

larger payments to contracts with more acres enrolled. Small farm advocates claim that this

disproportionately benefits large agricultural producers by making less money available for small

producers. Also, in the case of EQIP, cost-share assistance is provided for more expensive

practices such as animal waste storage facilities in concentrated animal feeding operations

(CAFOs).27 Opponents of these animal operations cite the higher payment limit as “further

subsidizing an environmentally destructive method of production.”28

Those who oppose payment limits (or support higher limits) for conservation programs counter

that conservation programs should focus on land with the greatest environmental need and not be

limited to a price per participant. They argue that higher payment limits allow for greater

environmental stewardship on farms and ranches, particularly larger operations with a greater

land base, which may have greater natural resource concerns. Others claim that payment limits on

restoration agreements could create a disincentive to enroll larger conservation easements, which

are the most desirable. Because most conservation easement programs, namely WRP and GRP,

enroll land that will also require restoration, a limit on restoration payments could reduce the

enrollment of large acre tracts.

Income Limits

The AGI limit sets a maximum amount of income that an individual can earn and still remain

eligible for program benefits. The 2008 farm bill made the AGI limitation for conservation

programs higher than the AGI limitation for the commodity farm support programs; however,

income limitations on conservation programs have been somewhat controversial. Previously, the

AGI limit for both conservation and commodities programs was set at $2.5 million and had an

exception if three-fourths of AGI was earned from farming sources. Now, if the three-year

average of non-farm income AGI exceeds $1,000,000, no conservation program benefits are

allowed. The exception to this limit is if two-thirds of the three-year AGI was earned from

farming sources. In addition, this limitation may be waived by USDA on a case-by-case basis for

the protection of environmentally sensitive land of special significance. In general, the AGI limit

for conservation programs is higher than that for commodity programs to encourage

environmental stewardship on farms and ranches, particularly larger operations that may have

greater natural resource problems.

Supporters of AGI limits believe that tighter limits benefit small producers and gain additional

public support for all agricultural programs through fiscal responsibility. Opponents of AGI limits

on conservation programs believe that if there are greater conservation benefits provided to the

general public, then, irrespective of wealth, a producer’s enrollment is good for the general

public.

27

The 2002 farm bill increased the payment limit from its 1996 farm bill levels of $10,000 for any fiscal year and

$50,000 for any multi-year contract, to a limitation on total payments to $450,000. The 2002 farm bill also required that

60% of EQIP funds should be made available to payments for practices relating to livestock production.

28

Elanor Starmer, “Industrial Livestock at the Taxpayer Trough: How Large Hog and Dairy Operations are Subsidized

by the Environmental Quality Incentives Program,” Campaign for Family Farms and the Environment, December

2008, p. 3.

Congressional Research Service

13

Agricultural Conservation Issues in the 111th Congress

Conservation Funding and Oversight

The majority of conservation program funding is mandatory and funded through the Commodity

Credit Corporation (CCC).29 Other conservation programs, mostly technical assistance, are

discretionary and funded through annual appropriations. Reductions in mandatory funding and an

increase in earmarks within discretionary funding, as well as fund accountability and quantifying

environmental benefits of conservation practices, could be issues for Congress.

Spending Limits on Mandatory Funding

The 2002 farm bill authorized significant increases in mandatory funding for many conservation

programs. Unlike the discretionary conservation programs, which must be funded through the

annual appropriations process, mandatory programs have an authorized level of funding (or

acreage enrollment) that is available unless reduced to smaller amounts in the appropriations

process. If appropriators do not set a spending limit or reduce the authorized level, then the

program receives the authorized level of funding. Mandatory conservation programs are usually

authorized through omnibus farm bills for four to five years. Mandatory funds are provided by the

CCC, USDA’s financing entity for many other agricultural programs and export subsidies.

Despite the increase in mandatory funding authority, many conservation programs have been

reduced or capped through annual appropriations acts since FY2003. Many of these spending

reductions were at the request of the Bush Administration. The mix of programs and amounts of

reduction have varied from year to year. Some programs, such as the CRP, have not been reduced

by appropriators in recent years, while others, such as EQIP, have been repeatedly reduced below

authorized levels. EQIP’s authorized mandatory funding was reduced by almost $1.16 billion

from FY2005 through FY2010. Even with these reductions, total mandatory funding for

conservation programs has remained relatively constant at a total over $4 billion annually. For

more information about reductions in mandatory program spending, see CRS Report R41245,

Reductions in Mandatory Agriculture Program Spending.

Although some titles in the 2008 farm bill received a reduction in funding over the next five to

ten years, the conservation title received increased funding. Many supporters of conservation

programs viewed this as a victory during the farm bill debate and were surprised to see that the

FY2010 President’s budget requested a reduction of over $500 million in mandatory funding

from many conservation programs.30 While the FY2010 Agriculture appropriations bill (P.L. 11180) did not include many of these reductions (with the exception of EQIP), the FY2011

President’s budget again requested multiple reductions in mandatory conservation funding.31

Advocates for these programs contend that these limitations are significant changes from the

intent of the farm bill, which they say compromise the programs’ ability to provide the anticipated

magnitude of benefits to producers and the environment. Others, including those interested in

29

The CCC is the funding mechanism for the mandatory payments that are administered by various agencies of USDA.

30

The FY2010 President’s budget requested reductions in the following conservation programs receiving mandatory

funding: AMA ($5 million reduction), EQIP ($250 million reduction), FPP ($30 million reduction), HFRP ($5 million

reduction), WHIP ($43 million reduction), and WRP (139,000 acre reduction).

31

The FY2011 President’s budget requested reductions in the following conservation programs receiving mandatory

funding: AMA ($5 million reduction), EQIP ($380 million reduction), FPP ($15 million reduction), CSP (769,000-acre

reduction), WHIP ($12 million reduction), GRP (184,000-acre reduction), and WRP (57,000-acre reduction). The

requested FY2011 reduction totals over $760 million.

Congressional Research Service

14

Agricultural Conservation Issues in the 111th Congress

reducing agricultural expenditures or in spending the funds for other agriculture purposes, counter

that, even with these reductions, overall funding for conservation has not been reduced. With the

111th Congress facing tighter budget constraints, it is possible for conservation programs to face

spending reductions either in the appropriations process or if budget reconciliation is required.32

Congressionally Directed Projects

The Watershed and Flood Prevention Operations program has received discretionary funding for

an increasing number of congressionally directed projects (commonly referred to as earmarks).

The program is not authorized at a specified amount. Annual appropriations reached a high of

$200 million, including a $94 million supplemental, in FY2002 and have declined steadily to $30

million in FY2010.33 The program also received $145 million as part of the American Recovery

and Reinvestment Act of 2009 (ARRA, P.L. 111-5). As appropriated funding decreased, the

number of earmarks increased, reaching 97% of appropriated funding in FY2009 and 74% in

FY2010. The past five presidential budget requests, including the FY2011 request, have sought

zero funding for the program, citing the number of earmarks. Currently there are approximately

300 unfunded authorized watershed projects totaling over $1 billion.

Technical Assistance

Two issues associated with technical assistance have been whether NRCS has the capacity to

meet the growing technical assistance demand and how technical assistance costs should be

funded for mandatory programs.

The 2002 farm bill (P.L. 107-171, Sec. 2701) dramatically increased financial assistance in

conservation programs. This increase in financial assistance also led to an increased demand for

technical assistance. 34 The 2002 farm bill allowed NRCS to augment its technical assistance

capacity by allowing producers to use approved third parties to provide assistance. As of February

2010, approximately 1,140 individuals and businesses were certified and registered as third-party

providers with NRCS.35 Despite this increase in capacity, NRCS, like other organizations, is

facing personnel attrition in “mission critical occupations” (most of which provide technical

assistance). 36 The 2008 farm bill further increased funding for mandatory conservation programs,

which could cause the demand for technical assistance to increase, placing additional strain on the

current capacity.

32

For more information on the reconciliation process in general, see CRS Report RL30458, The Budget Reconciliation

Process: Timing of Legislative Action.

33

Much of the decline had been at the request of the USDA. Source: Agriculture, Rural Development, Food and Drug

Administration, and Related Agencies Appropriations Act, 2002 (P.L. 107-76); 2002 Supplemental Appropriations Act

for Further Recovery From and Response to Terrorist Attacks on the United States (P.L. 107-206); and Agriculture

Appropriations Act, 2010 (P.L. 111-80).

34

Most conservation programs that include financial assistance require a certain amount of technical assistance.

According to Section 2706 of the 2008 farm bill (P.L. 110-246), the purpose of technical assistance within farm bill

programs is to “provide eligible participants with consistent, science-based, site-specific practices designed to achieve

conservation objectives on land active in agriculture, forestry, or related uses.”

35

NRCS reports obligating $289 million for technical assistance provided through a third-party between 2004 through

February 2010. USDA, NRCS, Technical Service Provider, Mid Year Report to Management, Fiscal Year 2010,

Washington, DC, 2010, p. 1.

36

USDA, NRCS, “Human Capital Strategic Plan, 2006-2010,” at http://www.nrcs.usda.gov/about/humancapital/.

Congressional Research Service

15

Agricultural Conservation Issues in the 111th Congress

Congress has addressed the issue of how to fund technical assistance in mandatory programs in

the past and will likely do so again in the future. The central issue is whether NRCS has the

authority to pay for technical assistance for mandatory programs using the mandatory programs’

funding.37 Previous conflicting interpretations by the Office of Management and Budget resulted

in Congress providing clarifying language through enacted legislation in 2002, 2005, and 2008.38

The clarifying language appeared to resolve the issue until recently. The 2008 farm bill

reauthorized and amended other mandatory conservation programs not originally authorized

under the 1985 farm bill. 39 Because previous language only addressed those programs authorized

under the 1985 farm bill, the issue of where technical assistance funding should originate for non1985 farm bill programs was once again raised. On February 17, 2009, Congress enacted

clarifying language for this issue in Section 103 of the American Recovery and Reinvestment Act

of 2009 (P.L. 111-5).40 The new language allows all mandatory programs established or amended

in the 2008 farm bill, excluding those in Title I, to use CCC funds for administrative expenses and

technical assistance. Congress will likely need to address this issue again because the new

language only covers FY2009 and FY2010, while funding authority for most farm bill programs

expires at the end of FY2012.

Financial Audit and Contract Administration

Most USDA agencies are covered by a consolidated financial statement audit for the entire

department. In FY2007, the OMB required NRCS to conduct a stand-alone audit for the FY2008

financial statement. In FY2008, NRCS contracted with a private auditing firm, KPMG, to review

the agency’s financial statements in its first stand-alone audit. KPMG was unable to provide an

opinion on the agency’s financial statements because NRCS could not document or support its

transactions or account balances.41

The FY2008 audit was NRCS’s first attempt at a comprehensive financial statement audit. The

lack of an opinion from the auditing firm was a result of several problems—namely, NRCS was

unable to provide material in support of transactions and account balances with respect to

obligations, accrued expenses and undeliverable orders, and unfilled customer orders. According

to NRCS, the agency has taken corrective actions to address the deficiencies found in the audit,

37

Unlike most government agencies, NRCS does not receive a salaries and expenses appropriation. Most of the

funding for employees and overhead (including what is known as technical assistance) is appropriated through the

Conservation Operations account, which is discretionary. OMB originally determined that technical assistance for

mandatory programs would be funded through annual discretionary appropriations and funding from larger mandatory

programs. Congress disagreed and passed legislation stating that funding for a mandatory program’s technical

assistance could only come from that mandatory program’s funding authority.

38

Section 2701 of the 2002 farm bill (P.L. 107-171) provided that technical assistance in support of each mandatory

program authorized under the 1985 farm bill, as amended, come from the funding provided by the CCC for that

program P.L. 108-498, further clarified the funding source for technical assistance in mandatory conservation programs

and specified that funding for technical assistance cannot be transferred among the mandatory funded programs,

starting in FY2005. The language was reauthorized in the 2008 farm bill (P.L. 110-246).

39

For example, the Healthy Forest Reserve Program authorized in section 502 of the Healthy Forest Restoration Act of

2003 (16 U.S.C. 6572), the Agricultural Management Assistance Program authorized in section 524 of the Federal

Crop Insurance Act (7 U.S.C. 1524), and the Chesapeake Bay Watershed Program authorized in section 2605 of the

Food, Conservation, and Energy Act of 2008 (16 U.S.C. 3839bb-3).

40

For more information on the ARRA see, CRS Report R40160, Agriculture, Nutrition, and Rural Provisions in the

American Recovery and Reinvestment Act (ARRA) of 2009.

41

For a copy of the FY2008 NRCS audit report by USDA’s OIG, see http://www.usda.gov/oig/webdocs/10401-2FM.pdf.

Congressional Research Service

16

Agricultural Conservation Issues in the 111th Congress

including training over 300 employees in accounting principles, developing an automated tool for

general ledger accounts, and performing quality assurance reviews on over 160,000 open

obligations.42 Despite these corrective actions, a FY2009 audit of the NRCS financial statements

returned a similar no-opinion result. The auditing firm again cited NRCS’s inability to provide

material in support of transactions and account balances.

The 111th Congress continues to take action on this issue. On March 25, 2009, the House

Committee on Agriculture’s Subcommittee on Conservation, Credit, Energy, and Research held a

hearing to review the administration of conservation contracts. A similar hearing to review the

delivery of conservation programs conducted by the same subcommittee was held on July 1,

2010. Also, in the FY2009 Omnibus Appropriations Act, Congress provided $10 million in

Conservation Technical Assistance (CTA) funds to “strengthen the agency’s program and

financial management capabilities.”43 According to the committee print, NRCS is expected to use

the funds to enhance the agency’s budgeting, accounting, contracting, and information technology

systems. The agency is expected to issue a report to Congress detailing the use of these funds.

The committee print also requires NRCS to issue a report to Congress regarding the 2008 audit

and any corrective actions being taken.

Conservation Effects Assessment Project (CEAP)

Following the significant increase in funding for conservation programs in the 2002 farm bill,

USDA initiated a project to measure the environmental benefits of many of these programs. The

project is a multi-agency effort known as the Conservation Effects Assessment Project (CEAP).

CEAP’s stated purpose is to aid policymakers in developing new conservation programs and help

existing conservation program managers implement programs more effectively and efficiently to

meet the goals of Congress and the Administration.44

Now in its seventh year at USDA, CEAP continues to be supported by many in the conservation

community as a much-needed evaluation system to ensure that conservation programs produce

the desired environmental and production outcomes.45 Although the project is not legislatively

mandated, many believe its potential outcomes could prove useful in shaping future policy

debates surrounding environmental issues in the 111th Congress, namely environmental services

markets.

Despite some of the strides made to quantify the environmental benefits of conservation practices

through CEAP, there are possible limitations to its use, namely the availability of data. To date,

the depth of information gathered through this project is enormous, yet very little has been made

available to the public or to other federal agencies. Despite some frustration generated by

42

U.S. Congress, House Committee on Agriculture, Subcommittee on Conservation, Credit, Energy, and Research,

Testimony of Dave White, Chief, Natural Resources Conservation Service, USDA, Hearing to review the USDA

administration of conservation program contracts, 111th Cong., 1st sess., March 25, 2009.

43

U.S. Congress, House Committee on Appropriations, Omnibus Appropriations Act, 2009, Division A—Agriculture,

Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act 2009, committee print,

111th Cong., 1st sess., March 2009 (Washington: GPO, 2009).

44

Soil and Water Conservation Society, Final Report from the Blue Ribbon Panel Conducting an External Review of

the U.S. Department of Agriculture Conservation Effects Assessment Project, Ankeny, IA, 2006, http://www.swcs.org/

documents/filelibrary/advocacy_publications/CEAP_Final_Report.pdf.

45

Lisa F. Duriancik, Dale Bucks, and James P. Dobrowolski et al., “The First Five Years of the Conservation Effects

Assessment Project,” Journal of Soil and Water Conservation, vol. 63, no. 6 (Nov/Dec 2008), p. 185A.

Congressional Research Service

17

Agricultural Conservation Issues in the 111th Congress

reporting delays, some in the scientific community support what they say is a meticulous in-depth

assessment and evaluation system, claiming it is necessary for statistical credibility.46 Only a few

initial results are currently available based on cropland in the upper Mississippi river basin. Initial

findings show beneficial effects from conservation practices as well as additional application

needs. Many conservation programs offer financial assistance to producers to implement many of

the conservation practices analyzed in the CEAP assessment; however, the assessment does not

correlate the effects and benefits of conservation practice to any one federal program.

Emerging and Continuing Issues

Emerging and continuing issues for agricultural conservation in the 111th Congress revolve

around ecosystem services markets, climate change, and bioenergy. The evolving debate over

climate change legislation has provoked several questions regarding the role of agriculture and

forestry. Other environmental concerns for agriculture, such as concentrated animal feeding

operation (CAFO) regulations, greenhouse gas emission reporting for livestock producers, and

wetlands mitigation, could lead to expanded opportunities for many conservation efforts.

Production pressures generated by corn-based ethanol have also had an ongoing impact on certain

conservation programs.

Ecosystem Services Markets

The participation of agriculture and forestry in emerging ecosystem services markets is gaining

wide support within the farm community and its supporting organizations and agencies, as well as

among the regulatory agencies and some environmental groups.47 Market-based approaches are

often viewed as encompassing broader societal benefits by complementing existing agricultural

conservation programs and evolving regulatory approaches intended to address environmental

improvements in the farm and forestry sectors. Among the principal questions regarding the

inclusion of ecosystem services provisions as part of any major legislative initiative is whether

the agriculture and forestry sectors can effectively provide environmental goods and services

along with the more traditional food, fiber, and other services these sectors already provide.

Ecosystem goods and services are the benefits society obtains from the environment and

ecosystems, both natural and managed, such as water filtration, flood control, provision of

habitat, carbon storage, and many others.48 In most cases, these constitute “free services,” since

landowners and managers are not compensated in the marketplace. The continued degradation of

these services over time has generated interest in creating markets, developed either through

regulation or voluntarily, so that providers of ecosystem services can be compensated in private

46

“Quantifying Practices with the Conservation Effects Assessment Project (CEAP),” panel discussion at the 2009

USDA Agriculture Outlook Forum, Arlington, VA, February 26, 2009.

47

In March 2009, Secretary of Agriculture Thomas Vilsack indicated that traditional agricultural support payments will

continue to be met with criticism and many producers should seek additional income from market-based ecosystem

services. U.S. Congress, House Committee on Appropriations, Subcommittee on Agriculture, Rural Development,

Food and Drug Administration, and Related Agencies, Statement by Thomas Vilsack, Secretary of Agriculture,

Submitted Remarks, 111th Cong., 1st sess., March 31, 2009. http://www.usda.gov/wps/portal?contentidonly=true&

contentid=2009/03/0077.xml

48

These may also be referred to as ecosystems services. See, for example, World Resources Institute, Millennium

Ecosystem Assessment, Ecosystems and Human Well-being, 2005, http://www.millenniumassessment.org/en/

index.aspx.

Congressional Research Service

18

Agricultural Conservation Issues in the 111th Congress

markets for the services they provide. This could offer a potential business opportunity to the

agriculture and forestry sectors, which may be able to provide for such services and participate in

the market, for example, by creating, restoring, and preserving function and value in a natural

resources area, or by capturing and storing carbon before gases that contribute to global climate

change are released into the atmosphere. These services would be in addition to the food and fiber

services traditionally supplied by the agriculture and forestry sectors.49

Conservation practices on agricultural land provide one of the main vehicles through which

producers may develop environmental credits and benefits to be sold or traded in a market-based

system. Many existing USDA conservation programs offer incentives through financial and

technical assistance to implement these practices. For example, cropland tillage practices such as

reduced/medium-till, no-till, and ridge/strip-till practices sequester carbon that could be sold

through a carbon offset program. Conservation programs such as EQIP, AMA, CSP, and CTA

provide incentives for farmers to install these practices. Programs such as WRP offer incentives

for wetland restoration, the benefits of which could then be used in a wetlands mitigation

program. Other conservation practices such as riparian buffers, setbacks, wind breaks, and buffer

strips offered under EQIP, CRP, CSP and WHIP create water quality improvements that could be

traded in local water quality credit programs.

The inclusion of these market provisions in legislation has raised procedural and implementation

questions as Congress continues to consider the role of the agriculture and forestry sectors in

environmental legislation. 50 One key question is how USDA will respond to several existing

barriers that may prevent the development of ecosystem goods and services markets involving the

farm and forestry sectors, such as participation challenges, and issues of measuring and valuing

credits, monitoring, and enforcement, among others.51 It is also unclear how USDA will bridge

existing conservation program benefits with ecosystem services markets, and what direct role the

new USDA Office of Ecosystem Service Markets (see “Environmental Services Markets,” above)

plans to play.

Climate Change

Among the many questions for Congress regarding the topic of climate change is what role the

agriculture and forestry sectors will play; and, if they are allowed to participate, how concerns

regarding their participation will be resolved. Farm and forestry activities both emit and sequester

greenhouse gases (GHG) from the atmosphere. 52 As reported by the Environmental Protection

Agency (EPA), the agriculture and forestry sectors currently account for 6%-8% of estimated

49

For additional information, see CRS Report RL34042, Provisions Supporting Ecosystem Services Markets in U.S.

Farm Bill Legislation.

50

For more information on the role of agriculture in climate change policy, see CRS Report RL33898, Climate

Change: The Role of the U.S. Agriculture Sector. For other general information on climate change issues, see CRS

Report RL34513, Climate Change: Current Issues and Policy Tools.

51

For more information, see USDA, 2007 Farm Bill, Conservation and Environment Theme Paper, June 2006, at

http://www.usda.gov/documents/FarmBill07consenv.pdf; and M. Ribaudo and C. Jones, “Environmental Credit

Trading: Can Farming Benefit,” Amber Waves, USDA’s Economic Research Service, Feb. 2006.

52

GHG emissions from agriculture are associated with livestock operations (as part of the natural digestive process of

animals and manure management) and crop production (soil management, commercial fertilizer and manure

application, and production of nitrogen-fixing crops). The two key types of GHG emissions are methane (CH4) and

nitrous oxide (N2O). Estimated emissions are expressed on a CO2-equivalent basis. See CRS Report RL33898, Climate

Change: The Role of the U.S. Agriculture Sector.

Congressional Research Service

19

Agricultural Conservation Issues in the 111th Congress

total U.S. GHG emissions annually.53 However, combined carbon sequestration on farm and

forested lands is currently estimated to mitigate about 11% of total annual GHG emissions in the

United States. The potential to reduce emissions and sequester carbon on agricultural lands is

reportedly much greater than current rates.

Congress is considering a range of climate change policy options, including greenhouse gas

(GHG) emission reduction programs that would either mandate or authorize a cap-and-trade

program to reduce GHG emissions.54 In general, the current legislative proposals would not

require emission reductions in the agriculture and forestry sectors. The drafters of some proposals

are reluctant to include opportunities for agriculture and forestry participation due to uncertainties

regarding measuring, monitoring, and permanence of agriculture and forestry activities.55 Others

in Congress would like a GHG program to include provisions allowing farm and forestry

landowners to receive emissions allowances (or credits) to generate carbon offsets.

Most land management and farm conservation practices can help reduce GHG emissions and/or

sequester carbon, including land retirement, conservation tillage, soil management, and manure

and animal feed management, among other practices. Many of these practices are encouraged

under existing USDA conservation programs that provide financial and technical assistance to

farmers, such as EQIP, CRP, CSP, CTA, and WHIP, among others. However, uncertainties are

associated with implementing these types of practices depending on site-specific conditions, the

type of practice, how well it is implemented, the length of time a practice is undertaken, and

available funding, among other factors.

USDA has already expanded some of its existing conservation programs to further encourage

emission reductions and carbon sequestration. For example, many of the practices encouraged

under EQIP and CSP reduce net emissions. Programs such as CTA, AMA, EQIP, and CSP list a

reduction in emissions as a national priority for the program, which affects the funding and

ranking of projects. Under CRP, USDA has modified how it scores and ranks offers to enroll land

in CRP in order to place greater weight on installing vegetative covers that sequester carbon.

USDA also has an initiative under CRP’s continuous enrollment provision to plant up to 500,000

acres of bottomland hardwoods, which are among the most productive U.S. lands for sequestering

carbon.56 Recently, USDA has recognized the potential credits generated by these conservation

programs and has removed any claim on the credits through recent changes to many of the

program rules.57 Whether or not benefits generated from existing conservation programs would be

considered eligible carbon offsets under current legislative proposals varies.

53

EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2007, April 2009, http://epa.gov/climatechange/

emissions/usinventoryreport.html.

54

For more information on the current GHG emissions legislation, see CRS Report R40556, Market-Based Greenhouse

Gas Control: Selected Proposals in the 111th Congress; and CRS Report RL34436, The Role of Offsets in a

Greenhouse Gas Emissions Cap-and-Trade Program: Potential Benefits and Concerns.

55

For more information on issues associated with measuring and monitoring carbon, see CRS Report RS22964,

Measuring and Monitoring Carbon in the Agricultural and Forestry Sectors.

56

For more information on these programs, see CRS Report R40763, Agricultural Conservation: A Guide to Programs.

57

The following program rules include a section recognizing the credits generated by programs and asserting no direct

or indirect claim on these credits: EQIP (§1466.36, 74 Federal Register 2317), WRP (§1467.20, 74 Federal Register

2336), AMA (§1465.36, 73 Federal Register 70256), GRP (§1415.10, 74 Federal Register 3875), FPP (§1491.21, 74

Federal Register 2822), WHIP (§636.21, 74 Federal Register 2800), CRP (§1410.63(6), 68 Federal Register 24845),

and HFRP (§625.8, §74 Federal Register 1967).

Congressional Research Service

20

Agricultural Conservation Issues in the 111th Congress

Congress has already taken steps to address some of the challenges associated with measuring

carbon changes from forested and agricultural lands and practices. The 2008 farm bill includes

provisions that could expand the scope of existing land-based conservation and other farm bill

programs by providing incentives to encourage farmers and landowners to sequester carbon and

reduce emissions associated with climate change and participate in markets for carbon storage

(see “Environmental Services Markets” section, above). The Energy Independence and Security

Act of 2007 (P.L. 110-140, Sec. 712) directs the Secretary of the Interior to develop a

methodology to assess carbon sequestration and emissions from ecosystems. This methodology is

to cover measuring, monitoring, and quantifying GHG emissions and reductions, and provide

estimates of sequestration capacity and the mitigation potential of different ecosystem

management practices. Congress continues to face the question of whether its current authorized

activities (and proposed activities) provide adequate and sufficient guidelines for accurately

measuring carbon levels from forest and agricultural activities.

On June 29, 2009, the House passed H.R. 2454, which includes a new program for agricultureand forestry-related GHG offsets within USDA. 58 The so-called “Peterson amendment” was

added to H.R. 2454 just prior to the floor debate, following negotiations between the Chairmen of

the House Energy and Commerce Committee and the House Agriculture Committee. The Energy

Committee’s June 26, 2009, manager’s amendment included a new Title V to H.R. 2454—

”Agriculture and Forestry Related Offsets.” Among other provisions, the Peterson amendment

allowed for certain agricultural and forestry activities to become eligible to participate in a carbon

offset program, established that this program would be implemented by USDA (rather than EPA),

addressed concerns in the agricultural community about existing and evolving renewable energy

and certain biomass requirements, and also recognized certain early actions that have already

been taken by farmers and landowners to reduce emissions and sequester carbon. For the most

part, the provisions in Title V are similar to those found in Title III of H.R. 2454, with the most

notable exception being the difference in implementing agencies. 59

Similar action was taken in the Senate, where S. 1733 allows for agriculture and forestry offsets

as part of a cap-and-trade scheme. S. 1733 differed from H.R. 2454 in terms of the types of

projects and activities allowed, the total allowable quantity of domestic versus international

offsets, and agency administration of the program, among other differences. The Clean Energy

Partnerships Act of 2009 (S. 2729) was introduced by Senator Stabenow shortly after the Senate

EPW Committee completed work on S. 1733. This bill (often referred to as the “Stabenow

amendment”) is not comprehensive and only expands on the agricultural and forestry carbon

offset provisions in these climate bills and also allows for certain other provisions benefitting

U.S. farmers and landowners.

Energy Effects

Renewable energy and energy conservation continue to be topics of concern as Congress seeks to

reduce the national use of fossil fuels. Renewable energy is energy generated through natural

means, including wind, solar, geothermal, hydroelectric, and biomass, among others. With each

58

For more information on H.R. 2454, see CRS Report R40643, Greenhouse Gas Legislation: Summary and Analysis

of H.R. 2454 as Passed by the House of Representatives.

59

For additional information, see CRS Report R40994, Agriculture and Forestry Provisions in Climate Legislation in

the 111th Congress, by (name redacted); and CRS Report RL34436,The Role of Offsets in a Greenhouse Gas Emissions

Cap-and-Trade Program: Potential Benefits and Concerns, by (name redacted).

Congressional Research Service

21

Agricultural Conservation Issues in the 111th Congress

renewable energy source comes benefits and consequences. Energy sources closely tied to the

agriculture and forestry sectors are biofuels derived from corn-based ethanol and cellulosic

feedstock. Federal support for ethanol through mandated levels of consumption, grants and loan

guarantees, tax credits, tariffs on imports, and research and development projects has generated

some controversy.60 Critics say that important and unwanted environmental consequences

resulting from the production of biofuels should be considered when evaluating renewable energy

options.

A continued expansion of corn-based ethanol production could have significant consequences for

traditional U.S. agricultural crop production and rural economies. Supporters of an expanded

renewable fuels standard (RFS, the statutorily required use of renewable fuels) claim that

increased biofuels production and use would produce enormous agricultural and rural economic

benefits by increasing farm and rural incomes and generating substantial rural employment

opportunities.61 However, large-scale shifts in agricultural production activities will likely also

have important regional economic consequences that have yet to be fully considered or

understood. As corn prices rise, so too does the incentive to expand corn production to more

marginal soil environments. Further, corn production is among the most energy-intensive of the

major field crops. This shift could have important and unwanted environmental consequences due

to possible increases in fertilizer and chemical use and soil erosion.

Ethanol and biodiesel produced from cellulosic feedstocks, such as prairie grasses and fastgrowing trees, have the potential to improve the energy and environmental effects of U.S.

biofuels. A key potential benefit of cellulosic feedstocks is that they can be grown without the

need for chemicals. Reducing or eliminating the need for chemical fertilizers could address one of

the largest energy inputs for corn-based ethanol production. However, additional concerns about

cellulosic feedstocks exist, including concerns that required increases in per-acre yields to obtain

economic feasibility could require the use of fertilizers; that availability of sufficient feedstock

supply is limited and expansion could generate additional land use pressures for expanded

production; and that development of harvesting machinery and technology lags behind that of

traditional corn-based ethanol production. In addition to these concerns, some groups say that

other potential environmental drawbacks associated with cellulosic fuels should be addressed,

such as the potential for soil erosion, increased runoff, the spread of invasive species, and

disruption of wildlife habitat.62

Although the 2008 farm bill expands many existing agricultural conservation programs to

encourage producers to adopt energy efficiency measures and produce renewable energy

feedstocks, it does not address the potential environmental consequences that could result from

biofuels production. Expanding existing conservation efforts or creating new ones can serve as a

potential countermeasure to the increased environmental pressures generated by biofuel

production. The extent to which this is or could be done is not clear.

60

For more information on ethanol policy issues, see CRS Report R40488, Ethanol: Economic and Policy Issues.

61

For more information on the renewable fuels standard, see CRS Report R40155, Renewable Fuel Standard (RFS):

Overview and Issues.

62

For more information on cellulosic biofuels, see CRS Report RL34738, Cellulosic Biofuels: Analysis of Policy Issues

for Congress.

Congressional Research Service

22

Agricultural Conservation Issues in the 111th Congress

The EPA has proposed changes to the RFS program, as required by the Energy Independence and

Security Act of 2007 (EISA, P.L. 110-140).63 Two areas of this proposed rulemaking have caused

concerns among those in the U.S. agriculture sector: the EISA biomass definition and the

requirement that EPA consider so-called “indirect land use” effects when calculating GHG

emissions associated with advanced biofuels. Amendments to the Waxman/Markey climate

change and energy legislation (H.R. 2454) would change the EISA biomass definition to the

definition in the 2008 farm bill (P.L. 110-246) and prevent EPA (for at least six years) from

including emissions from international indirect land use changes when weighing biofuels’ carbon

footprint under the 2007 RFS.64

63

74 Federal Register 99, 24904-25143, May 26, 2009. EISA significantly expanded the RFS established in the Energy

Policy Act of 2005 (P.L. 109-58). The RFS now requires the use of 9.0 billion gallons of renewable fuel in 2008,

increasing to 36 billion gallons in 2022.

64

For more information on these requirements and related RFS issues, see CRS Report R40155, Renewable Fuel

Standard (RFS): Overview and Issues; and CRS Report R40460, Calculation of Lifecycle Greenhouse Gas Emissions

for the Renewable Fuel Standard (RFS). For more background on biomass definitions, see CRS Report R40529,

Biomass: Comparison of Definitions in Legislation.

Congressional Research Service

23

Appendix. USDA Conservation Programs: Funding

Table A-1. USDA Agricultural Conservation Program Funding Levels, FY2009 and FY2010

(listed by FY2009 funding level, in millions)

Program

Mandatory/ Discretionary

FY2009 Available

FY2010 Available

Conservation Reserve Program (CRP)

Mandatory

$1,888 est. (39.2 million acres)

$1,872 est. (32 million acres)

Environmental Quality Incentives Program (EQIP)

Mandatory

$1,067 ($1,337 authorized)

$1,180 ($1,450 authorized)

Conservation Operations (includes Conservation Technical Assistance,

Survey, Soil Survey, Grazing Lands Conservation Initiative, Plant Materials

Centers, Conservation Compliance, Sodbuster, and Swampbuster)

Discretionary

$730

$888

Conservation Stewardship Program (CSP)

Mandatory

$569 est. (12.5 million acres annually)

$752 est. (12.5 million acres annually)

Wetlands Reserve Program (WRP)

Mandatory

$417 est. (3.04 million acres)

$671 est. (3.04 million acres)

Emergency Watershed Program (EWP)

Discretionary

$245

$0

Watershed and Flood Prevention Operations

Discretionary

$169

$30

Farmland Protection Program (FPP)

Mandatory

$121

$150

Emergency Conservation Program (ECP)

Discretionary

$115

$0

Watershed Rehabilitation

Mandatory and Discretionary

$90

$41.1 discretionary, $0 mandatory

($165 authorized)

Wildlife Habitat Incentives Program (WHIP)

Mandatory

$85

$85

Agricultural Water Enhancement Program (AWEP)

Mandatory

$73

$73

Grassland Reserve Program (GRP)

Mandatory

$63

$78

Resource Conservation and Development (RC&D)

Discretionary

$51

$51

Chesapeake Bay Watershed Program

Mandatory

$23

$43

Healthy Forests Reserve Program (HFRP)

Mandatory

$9.8

$9.8

Agricultural Management Assistance (AMA)

Mandatory

$7.5 (conservation only)

$7.5 (conservation only)

Voluntary Public Access and Habitat Incentive Program

Mandatory

$50 (total for FY2009-2012)

$50 (total for FY2009-2012)

Source: Division A, Title II of the Omnibus Appropriations Act, 2009 (P.L. 111-8); Division A, Title I of the American Recovery and Reinvestment Act of 2009 (P.L. 111-5); Title

I and II of the Food, Conservation, and Energy Act of 2008 (P.L. 110-246); and Division B, Title I, Chapter I of the Consolidated Security, Disaster Assistance, and Continuing

Appropriations Act, 2009 (P.L. 110-329). Funding estimates for acreage based programs are taken from CBO Baseline projections, March 2009; and USDA, CCC, Commodity

Credit Corporations - Commodity Estimates Book, FY 2010 Mid-Session Review, August 25, 2009, http://www.fsa.usda.gov/Internet/FSA_File/msr10_commodity_estimates_book.pdf.

Notes: FY2009 available column represents the actual appropriated or authorized level of funding. The total includes funding from the American Recovery and Reinvestment

Act of 2009 (P.L. 111-5), which provided additional funding for Watershed and Flood Prevention Operations, Watershed Rehabilitation, and Emergency Watershed Program (in

the form of floodplain easements). Both EWP and ECP received funding in the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, 2009 (P.L. 110329). FY2010 authorized limits are provided in title I and II of the Food, Conservation, and Energy Act of 2008 (P.L. 110-246).

CRS-24

Agricultural Conservation Issues in the 111th Congress

Author Contact Information

(name redacted)

Analyst in Agricultural Conservation and Natural

Resources Policy

/redacted/@crs.loc.gov, 7-....

Congressional Research Service

25

EveryCRSReport.com

The Congressional Research Service (CRS) is a federal legislative branch agency, housed inside the

Library of Congress, charged with providing the United States Congress non-partisan advice on

issues that may come before Congress.

EveryCRSReport.com republishes CRS reports that are available to all Congressional staff. The

reports are not classified, and Members of Congress routinely make individual reports available to

the public.

Prior to our republication, we redacted names, phone numbers and email addresses of analysts

who produced the reports. We also added this page to the report. We have not intentionally made

any other changes to any report published on EveryCRSReport.com.

CRS reports, as a work of the United States government, are not subject to copyright protection in

the United States. Any CRS report may be reproduced and distributed in its entirety without

permission from CRS. However, as a CRS report may include copyrighted images or material from a

third party, you may need to obtain permission of the copyright holder if you wish to copy or

otherwise use copyrighted material.

Information in a CRS report should not be relied upon for purposes other than public

understanding of information that has been provided by CRS to members of Congress in

connection with CRS' institutional role.

EveryCRSReport.com is not a government website and is not affiliated with CRS. We do not claim

copyright on any CRS report we have republished.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

A word about cookies

We need a few to keep you signed in and the library working. The rest help us see which pages people use and where they get stuck. They stay off unless you say yes.