Agriculture Conservation Programs: A Scorecard

Order Code RL32940

Agriculture Conservation Programs: A Scorecard

Updated May 9, 2008

Tadlock Cowan

Analyst in Natural Resources and Rural Development Policy

Resources, Science, and Industry Division

Renée Johnson

Analyst in Agricultural Policy

Resources, Science, and Industry Division

Agriculture Conservation Programs: A Scorecard

Summary

The Natural Resources Conservation Service and the Farm Service Agency in

the U.S. Department of Agriculture currently administer 20 programs and

subprograms that are directly or indirectly available to assist producers and

landowners who wish to practice conservation on agricultural lands. The number,

scope, and overall funding of these programs have all grown with each recent farm

bill. This growth can cause confusion over which problems and conditions each

program addresses, and specific program characteristics and performance. Policy

responses to this proliferation of programs are likely to be seen in the forthcoming

omnibus farm bill. The programs are:

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Agricultural Management Assistance Program

Conservation Operations; Technical Assistance (CTA)

Conservation Reserve Program (CRP)

CRP — Conservation Reserve Enhancement Program (CREP)

CRP — Farmable Wetlands Program

Conservation Security Program

Emergency Conservation Program

Emergency Watershed Program

Environmental Quality Incentive Program (EQIP)

EQIP — Innovative Grants

EQIP — Ground and Surface Water Conservation

EQIP — Klamath River Basin

Farm and Ranchland Protection Program

Grassland Reserve Program

Resource Conservation and Development Program

Watershed and Flood Prevention Operations

Watershed Rehabilitation Program

Watershed Surveys and Planning

Wetland Reserve Program

Wildlife Habitat Incentive Program

This tabular presentation provides basic information introducing each of the

programs. The information about each program includes:

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brief program description;

national participation levels;

states with the greatest participation;

participation priorities specified in law;

FY2008 estimated spending;

FY2009 Administration budget request;

authorization expiration date;

backlog or other measures of continuing interest;

major amendments in the 2002 farm bill; and

statutory authority.

This report will be updated periodically.

Contents

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

Conservation Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Agricultural Management Assistance Program . . . . . . . . . . . . . . . . . . . . . . . 4

Conservation Operations (CO) — Technical Assistance (CTA) . . . . . . . . . 4

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

CRP — Conservation Reserve Enhancement Program (CREP) . . . . . . . . . . 6

CRP — Farmable Wetlands Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Conservation Security Program (CSP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Emergency Conservation Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Emergency Watershed Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Environmental Quality Incentive Program (EQIP) . . . . . . . . . . . . . . . . . . . 10

EQIP — Innovative Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

EQIP — Ground and Surface Water Conservation . . . . . . . . . . . . . . . . . . . 11

EQIP — Klamath River Basin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Farm and Ranchlands Protection Program . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Grassland Reserve Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Resource Conservation and Development Program . . . . . . . . . . . . . . . . . . 14

Watershed and Flood Prevention Operations . . . . . . . . . . . . . . . . . . . . . . . . 15

Watershed Rehabilitation Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Watershed Surveys and Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Wetland Reserve Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Wildlife Habitat Incentive Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Agriculture Conservation Programs:

A Scorecard

Introduction

The Natural Resources Conservation Service (NRCS) and the Farm Service

Agency (FSA) in the U.S. Department of Agriculture (USDA) currently administer

20 programs and subprograms that directly or indirectly provide technical and

financial assistance to producers and landowners who wish to practice conservation

on agricultural lands.1 With each recent farm bill, enacted in 1985, 1990, 1996, and

2002, Congress has responded to the potential adverse effects of agricultural

activities on the physical landscape by increasing the number, scope, and overall

funding of conservation programs. Reorganizing these programs to reduce the total

number by combining similar programs is a likely outcome in the forthcoming

omnibus farm bill.2

One result of the growth of conservation programs since 1985 is that these

programs now attract attention from groups and individuals that had not necessarily

had an interest in conservation policy, and may be confused about which problems

and conditions each program addresses and specific program characteristics and

performance. These people often ask questions about which programs may be used

to respond to a specific resource problem, why several programs appear to address

a single problem, or which agency administers a program.

USDA provides technical and cost share assistance to attract interest and

encourage participation. Participation in all USDA conservation programs is

voluntary. These programs protect soil, water, wildlife, and other natural resources

on privately owned agricultural lands to limit environmental impacts of production

activities both on and off the farm, while maintaining or improving production of

food and fiber. Some of these programs center on improving or restoring resources

1

The number of programs can be determined in several different ways, as two of the larger

ones, the Conservation Reserve and the Environmental Quality Reserve Programs have

several subprograms, some created in legislation and others created by administrative action.

This report is limited to subprograms created by Congress. In addition to these 20 programs,

Congress has authorized a large number of other small (in terms of spending levels)

discretionary programs, usually with a specific geographic focus (examples from the 2002

farm bill include the Great Lakes and the Delmarva Peninsula), and programs that have

never been funded or implemented (examples include the Environmental Easement Program

and the Office of Agriculture Environmental Quality). These programs are not identified

or presented in this report.

2

This is an updated and revised edition of a report originally written by Jeffrey A. Zinn,

Specialist in Natural Resources Policy, Resources, Sciences, and Industry Division and

Tadlock Cowan.

CRS-2

that have been degraded, while others create conditions to will limit degradation in

the future. Of the 20 programs, 16 are administered by NRCS and four are

administered by FSA. However, both agencies, as well as other agencies, mostly in

USDA, work closely to implement many of them.

All of these programs, with the exception of the Conservation Security Program

(CSP), respond to existing resource problems. Some of them address these problems

by paying landowners to retire land from production for multi-year periods, using

easements and long-term agreements. Many programs also have a particular resource

focus, such as cropland, wetlands, or grasslands, or focus on a specific physical

condition, such as floods or drought. Others address problems by assisting producers

in installing conservation practices that are designed to maintain or improve resource

conditions in ways that enhance the environmental and economic performance of a

farm. These practices may be structural (e.g., constructing terraces or an animal

waste management facility), land management (e.g., contour farming, nutrient

management), or vegetative (e.g., filter strips, tree planting). The CSP is different

because it pays producers to maintain conservation practices that are already in place

and provides financial incentives and technical assistance to expand on their

conservation efforts.

The Conservation Reserve Program (CRP) and the Environmental Quality

Incentives Program (EQIP) each include subprograms enacted by Congress (as well

as other initiatives based on administrative actions). For the CRP, those subprograms

are the Conservation Reserve Enhancement Program (CREP), the Farmable Wetlands

Program, and the new Emergency Forestry Conservation Reserve Program (FSA

began implementing this program in 2007, enacted in December 2005 in P.L. 109148; it is not included in this report). Acreage enrolled in these subprograms is

considered to be within the CRP, and therefore counts against the current overall

program enrollment cap of 39.2 million acres. The three EQIP subprograms address

development of innovative approaches to conservation, surface and groundwater

conservation, and water use challenges in the Klamath River basin. The innovative

grants subprogram is funded using a portion of the overall annual funding authorized

for EQIP, while the water conservation and Klamath River subprograms have

specified funding levels that are treated as being in addition to EQIP funding.

This report provides basic information, primarily drawn from agency budget

presentations and websites, about each program using a consistent format. This

information should help respond to basic questions and resolve many common

sources of confusion about the purposes of the program, program participation and

policy topics. Further information about all of these programs can be found on the

NRCS website at [http://www.nrcs.usda.gov/programs/] and on the “conservation

programs” page of the FSA website at [http://www.fsa.usda.gov]; and in written

responses to questions published later each year in hearing records of the House and

Senate Agriculture Appropriations Subcommittee.

Both NRCS and FSA post extensive information on most programs on their

website in several formats, including basic descriptions, questions and answers, and

charts, tables, and maps that show participation and other characteristics. Website

information appears to be designed for both program participants and others who

want to learn more about the programs. The appropriations records provide more

detailed information about program activities and accomplishments during the past

CRS-3

year, and anticipated adjustments to program administration or implementation in the

next year. While the programs are listed alphabetically in this report, they are listed

by size in the table below, based on USDA’s estimated available spending levels in

2008, to convey a sense of their relative magnitude. The estimated total for these 20

conservation programs in FY2008 is $4.961 billion.

Program

FY2008 Est.

Spending

(in millions)

Program

FY2008 Est.

Spending

(in millions)

1. Conservation Reserve

Program (CRP)

$1,759

11. EQIP — Ground and Surface

Water Conservation Program

$60

2. Environmental Quality

Incentives Program (EQIP)

$1,000

12. Resource Conservation &

Development Program

$52

3. Conservation Operations;

Technical Assistance

$712

13. Watershed Rehabilitation

Program

$22

4. Wetland Reserve Program

$455

14. CRP — Farmable Wetlands

Program

$21

5. Conservation Security

Program

$381

15. Agricultural Management

Assistance Program

$10

6. CRP — Conservation

Reserve Enhancement Program

$139

16. EQIP — Innovative Grants

Program

Up to $20

(from EQIP)

7. Farm and Ranchlands

Protection Program

$97

17. Emergency Watershed

Program

$4.6

8. Wildlife Habitat Incentive

Program

$85

18. Grassland Reserve Program

$0

9. Emergency Conservation

Program

$75

19. EQIP — Klamath River

Basin

$0

10. Watershed and Flood

Prevention Operations

$67

20. Water Surveys and Planning

$0

A majority of the programs, 14, are mandatory spending, funded through

USDA’s Commodity Credit Corporation. Congress authorizes mandatory programs

at specified funding levels each year (or acreage enrollment levels for the

Conservation Reserve, Wetlands Reserve, and Grasslands Reserve Programs). They

are funded at these levels unless Congress limits funding to a lower amount through

the appropriations or legislative process (or puts a ceiling on acreage that can be

enrolled). Discretionary programs are funded each year through the annual

appropriations process. In recent years, Congress generally has made more

significant adjustments (almost always reductions) in funding for discretionary

programs than for mandatory programs from year to year.

If one is interested in learning more about how to apply to participate any of

these programs, a good place to start is the local NRCS or FSA county offices, which

are usually co-located. For more general information about the programs over a

larger area, such as program priorities within a state, one should contact the state

CRS-4

office of the agency. Contact information at the state level for both agencies can be

found on the agency website, at the addresses identified above.

Conservation Programs

Agricultural Management Assistance Program

Program description

This mandatory program, administered by the NRCS, provides cost-sharing

assistance under contracts of 3 to 10 years to producers in 15 specified states

where participation in the federal crop insurance program has been historically

low. Producers use this assistance to construct or improve water management and

irrigation structures, plant trees, control soil erosion, practice integrated pest

management, practice organic farming, develop value-added processing, and enter

into futures, hedging, or options contracts to reduce production, price or revenue

risk.

National participation

Not applicable. Eligible states are: CT, DE, MD, MA, ME, NV, NH, NJ, NY, PA,

RI, UT, VT, WV, and WY.

Leading states

In FY07, NRCS allocated $5 million to accelerate implementation of contracts.

Currently, 1,119 contracts are being implemented.

Participation priorities

Uses listed in law (see program description), but no priorities are specified.

FY2008 spending (est.)

$10.0 million.

FY2009 Administration

request

$0 ($10 million authorized)

Authorization expires

Permanent authorization ($10 million annually after FY07).

Backlog/interest

A backlog of 263 applications was pending at the end of FY07, down from a

backlog of 892 applications in FY05. These contracts would enroll more than

6,583 acres at a cost of $2.1 million.

Major 2002 farm bill

amendments

Designated 15 eligible states; authorized funding of $20 million annually from

FY03 through FY07, and $10 million in subsequent years.

Statutory authority

Authorized in the Agricultural Risk Protection Act of 2000, title I, §133 (P.L. 106224) as §524(b) of the Federal Crop Insurance Act; amended by §2501 of the

Farm Security and Rural Investment Act of 2002 (P.L. 107-171). (7 U.S.C. 1524).

Conservation Operations (CO) — Technical Assistance (CTA)

Program description

CTA is a discretionary NRCS program. It is more than 80% of all spending in the

CO account, and funds technical support to provide conservation planning and

implementation assistance through field staff placed in almost all counties. This

assistance is provided to producers and land owners who voluntarily apply natural

resource conservation systems, consisting of one or more practices, on private and

other non-federal lands. (Other components of CO include the Grazing Lands

Conservation Initiative, soil surveys, snow surveys, and plant material centers.)

National participation

CTA is estimated at $735.5 million and 6,096 staff years for FY08, according to

the FY09 budget notes. (Total CO funding was $861.5 million and 7,094 staff

years.)

Leading states

No data published for the CTA subset in FY08, but for total CO funding, TX

received $46.9 million, CA received $21.3 million, and IA received $24.4 million.

CRS-5

Participation priorities

None specified in law. The NRCS program description in the FY0 budget notes,

states, in part, “The natural resource conservation systems help control erosion,

improve water, soil, and air quality, protect farmlands and other land uses that

support wildlife habitat, and cultivate partnerships among federal, state and local

entities to implementing conservation measures.” NRCS national priorities in

FY07 included reducing soil erosion, assisting producers with comprehensive

nutrient management programs, reducing non-point pollution and ground water

contamination, reducing air emissions and soil erosion, and promoting habitat

conservation.

FY2008 spending (est.)

$735.5 million.

FY2009Administration

request

$680.8 million.

Authorization expires

Permanent authorization, no amount specified.

Backlog/interest

None specified.

Major 2002 farm bill

amendments

No direct changes. However, other provisions affect this program, including

retaining a cap on total funding for technical assistance provided through

mandatory programs, and allowing NRCS to approve qualified individuals and

entities, referred to as third parties, to provide some types of technical assistance.

Statutory authority

Authorized in the Soil Conservation and Domestic Allotment Act, as amended

(P.L. 74-46). (16 U.S.C. 590a-g, 16 U.S.C. 590q)

Conservation Reserve Program (CRP)

Program description

The CRP is a mandatory program administered by FSA, assisted by NRCS, that

provides annual rental payments, usually over 10 years, to producers to replace

crops on highly erodible and environmentally sensitive land with long-term

resource conserving plantings. Bids to enroll land are solicited during a limited

time period, then compared using an Environmental Benefits Index (EBI). Those

with the highest EBI scores are accepted. Imbedded in the CRP are several small

and more focused programs that bypass the general bidding process, some

established in law and others established administratively, to address specific

resource topics, including more concentrated resource problems in a portion of a

state, protection of small isolated agricultural wetlands, and improvement of

habitat for upland game birds. All lands that qualify for these subprograms are

automatically accepted.

National participation

760,875active contracts on 427,263 farms are currently enrolling 34.7 million

acres, according to FSA’s March 2008 monthly program summary. There was no

general sign-up in FY2007 and FY2008.

Leading states

In terms of acres, the leading states are TX (3.94 million acres), MT (3.31 million

acres), and ND (3.03 million acres). In terms of contracts, the leading states are IA

(106,069 contracts), IL (78,734 contracts), and MN (62,626 contracts).

Participation priorities

None specified in law from among the many types of eligible land that are

identified. Priorities established by FSA using an EBI which rates 5 factors

(erosion, water quality, wildlife, air quality, and enduring benefits) plus cost when

deciding which bids will be accepted. The EBI has been modified from signup to

signup. States may ask the Secretary to designate conservation priority areas in

watersheds. Chesapeake Bay, Great Lakes, and Long Island Sound are specified

as possibilities because of “special environmental sensitivity.”

FY2008 spending (est.)

$1.759 billion (based on the estimated number of acres that will be enrolled).

Program authorized on calendar year basis.

CRS-6

FY2009 Administration

request

$1.854 billion (based on the estimated number of acres that will be enrolled and

includes the emergency forestry program). Program authorized on calendar year

basis.

Authorization expires

December 31, 2007. Both House and Senate farm bills would reauthorize the

program, although the cap of 39.2 million acres is expected to be reduced.

Backlog/interest

In the last general signup (8/30/04 - 9/24/04), FSA accepted 19,732 offers to enroll

1.19 million acres from 26,080 offers to enroll 1.67 million acres, according to

data posted on the FSA website. Land currently under contract for the 2008 crop

year, 34.7 million acres is down 2.1 million acres from last year’s 36.8 million

acres. States with the largest decline are North Dakota and South Dakota, with

declines of 362,000 acres and 264,000 acres, respectively). Results of FY07

re-enrollment and extension (REX) offer for general sign-up contracts originally

set to expire between 2007 and 2010 show contracts on 23.0 million acres. 83% of

the 27.8 million eligible acres will be extended or re-enrolled under new contracts.

The new contract expiration schedule shows that 2.6 million acres expired

September 30, 2007, some of which have been re-enrolled as continuous sign-up

contracts.

Major 2002 farm bill

amendments

Raised enrollment ceiling from 36.4 million acres to 39.2 million acres; liberalized

economic uses of enrolled lands; required that eligible land must have been planted

4 of the 6 years preceding enactment.

Statutory authority

Authorized in §1231-§1235 of the Food Security Act of 1985 (P.L.99-198);

amended by §2101 of the Farm Security and Rural Investment Act of 2002 (P.L.

107-171). (16 U.S.C. 3831-3835a)

CRP — Conservation Reserve Enhancement Program (CREP)

Program description

This subprogram of the CRP is a mandatory program administered by the FSA,

assisted by NRCS, that partners with states at their request. States propose

substate areas, such as a watershed, where environmental or resource concerns are

more concentrated and can be addressed by enrolling up to 100,000 acres. States

contribute 20% of the funding so that larger payments can be made, thereby

encouraging greater participation.

National participation

46,681 contracts on 31,148 farms have enrolling a total of 790.705 acres,

according to FSA’s March 2008 monthly program summary.

Leading states

Currently, 32 states participate, with 195,759 acres enrolled in PA, 127,134 acres

enrolled in IL, and 92,244 acres in OH. The most contracts are in PA (10,343),

followed by OH (9,9551), and IL (6,635).

Participation priorities

None specified beyond those that apply to the general CRP (see entry above).

FY2008 spending (est.)

$139 million

FY2009 Administration

request

Unspecified acreage subset of CRP.

Authorization expires

September 30, 2007. Both House and Senate farm bills would reauthorized the

program.

Backlog/interest

Not applicable since any eligible land can be enrolled at any time; participation has

been much higher in some states than in others, but that is due, reportedly, to how

the program is promoted. Average rental payments are higher than for acreage

under the general sign-up process.

CRS-7

Major 2002 farm bill

amendments

None.

Statutory authority

Authorized in §1231of the Food Security Act of 1985 (P.L.99-198); amended by

§2101 of the Farm Security and Rural Investment Act of 2002 (P.L. 107-171). (16

U.S.C. 3831)

CRP — Farmable Wetlands Program

Program description

This 1 million acre subprogram of the CRP is a mandatory program administered

by the FSA, assisted by NRCS, to enroll small isolated agricultural wetlands.

Eligible wetlands must be smaller than 10 acres, with a maximum of 5 acres

eligible for payments. Eligible lands include wetlands that were cropped 3 of the

preceding 10 years, and buffers sufficient to protect them, on which the hydrology

will be restored and a vegetative cover established.

National participation

11,555 contracts on 9,208 farms have enrolled a total of 179,793 acres, according

to FSA’s March 2008 monthly program summary.

Leading states

In terms of acres, the leading states are IA (73,242 acres), SD (42,618 acres), and

MN (39,528 acres). The largest number of contracts are in IA (4,558), followed

by MN (2,886) and SD (2,513).

Participation priorities

None specified in law.

FY2008 spending (est.)

$21 million

FY2009 Administration

request

Unspecified acreage subset of CRP.

Authorization expires

September 30, 2007.

Backlog/interest

Not applicable since any eligible land can be enrolled at any time; participation

has been much higher in some states than in others, but that is due, reportedly, to

how the program is promoted.

Major 2002 farm bill

amendments

Increase overall size from 500,000 acres in 6 specified states to 1 million acre

national program, with no more than 100,000 acres in a state; in accepting

contracts, “ensure, to the maximum extent practicable, an equitable balance among

the conservation purposes of soil erosion, water quality, and wildlife habitat.”

Statutory authority

Authorized in Title XI of Agriculture and Related Agency appropriations, 2001

(P.L. 106-387) as §1231 of the Food Security Act of 1985 (P.L.99-198); amended

by §2101 of the Farm Security and Rural Investment Act of 2002 (P.L. 107-171).

(16 U.S.C. 3831)

CRS-8

Conservation Security Program (CSP)

Program description

This mandatory funded program administered by NRCS provides financial and

technical assistance for improvements in conserving environmental resources on

farmland that meets soil and water quality criteria standards of NRCS. CSP

supports producers who are already implementing and maintaining substantial

conservation systems to protect soil, water, air, and wildlife, or who will adopt

more sustainable systems as part of the program. The maximum annual assistance

through CSP increases with each of 3 progressive tiers of participation, each

requiring greater conservation. Only producers in specified watersheds can

participate each year. CSP was initially implemented in 18 watersheds in FY04,

and the number of watersheds eligible in subsequent signups has been determined

by the amount of funding available.

National participation

Three sign-ups (FY04, FY05, FY06) in 298 watersheds resulted in a total of

19,323 contracts on 15.7 million acres: 2,188 contracts on 1.88 million acres in 18

watersheds for FY04; 12,787 contracts on 10.24 million acres in 220 watersheds in

FY05; 4,423 contracts on 3.6 million acres in FY06. There were no sing-ups in

FY07. A new sign-up on 51 new watersheds runs to May 2008.

Leading watersheds

(states)

The largest number of contracts (281) and enrolled acres (152,388) from the FY04

signup were in the Blue Earth Watershed (IA and MN), and the largest total

payment ($5.173 million) was in the Umatilla Watershed (OR). For FY05, the

largest number of contracts were in IA (1,970), the largest number of enrolled

acres are in OR (977,026 acres), and the largest total payment is in OR ($15.7

million). For the FY06 sign-up, Oklahoma had the largest number of contracts

(440), and Nebraska had the largest acreage (320,894) and largest payment ($5.0

million).

Participation priorities

None specified in law. NRCS gives a priority to watersheds where agricultural

runoff is a major source of pollution.

FY2008 spending (est.)

$381.7 million. (Current law limits total CSP spending to $1.954 billion for FY06

through FY10, and $5.650 billion for FY06 through FY14.)

FY2009 Administration

request

$360 million.

Authorization expires

September 30, 2011. Senate farm bill would create a new “Conservation

Stewardship Program.” House bill would authorize a “New Conservation Security

Program.”

Backlog/interest

There have been three sign-ups in 298 watersheds. A new sign-up will run until

May 2008 and encompass 51 new watersheds. In eligible watersheds, all working

farmland can be enrolled, regardless of crop grown. There are no data on the

NRCS website on applicants in eligible watersheds who were rejected.

Major 2002 farm bill

amendments

Program initially authorized in Farm Security and Rural Investment Act of 2002 as

an entitlement (spending has been capped in subsequent legislation).

Statutory authority

Authorized in §2001 of the Farm Security and Rural Investment Act of 2002 (P.L.

107-171) as §1238-§1238C of the Food Security Act of 1985 (P.L.99-198). (16

U.S.C. 3833-3838c)

CRS-9

Emergency Conservation Program

Program description

This discretionary program, administered by FSA, with technical assistance

provided by NRCS, provides emergency funding and technical assistance to

producers to rehabilitate farmland damaged by natural disasters (hurricanes,

floods, wind, and erosion are examples) by activities such as removing debris, and

by implementing emergency water conservation measures in response to severe

droughts.

National participation

Participation varies widely and unpredictably from year to year. In FY2005, more

than half the outlays were in response to hurricanes, with the remainder being

divided among other types of natural disasters. Funds went to 46 states and

territories in FY07. Amounts are often earmarked to specific locations.

Leading states

In FY07, FL received $17.6 million, MN received $14.8 million and TX received

$6.6 million, according to the FY09 budget notes.

Participation priorities

None specified in law.

FY2008 spending (est.)

$74.7 million (Since this program is almost always funded in emergency

supplemental appropriations legislation in response to specific natural disasters

that have occurred, additional funding is possible before 9/30/08.)

FY2009 Administration

request

$0. The Administration’s farm bill proposal would combine this program and the

Emergency Watershed Protection program into a new Emergency Landscape

Restoration Program.

Authorization expires

Permanent authorization.

Backlog/interest

Not applicable.

Major 2002 farm bill

amendments

None.

Statutory authority

Authorized in the Emergency Conservation Measures (P.L. 85-88); amended by

§401 of the Agriculture Credit Act of 1978 (P.L. 95-334). (16 U.S.C. 2201-2204)

Emergency Watershed Program

Program description

This discretionary program, administered by NRCS, provides technical and

financial assistance to reduce hazards to life and property in watersheds that have

been damaged by natural disasters. Assistance includes disaster cleanup and

recovery activities, and purchasing easements in flood plains that will benefit

natural resources such as wetlands, while reducing the risk of exposure to future

natural disasters.

National participation

In FY05, $354.5 million was distributed in 38 states. In FY06, Congress

appropriated two supplementals totaling $351 million for the 2005 hurricane

recovery efforts.

Leading states

In FY07, KS received $3.6 million, MO received $3 million, and OK received $4

million, according to the FY09 budget notes. (Spending responds to the

distribution of natural disasters, and changes greatly from year to year.)

Participation priorities

None specified in law.

FY2008 spending (est.)

An FY07 supplemental appropriated $10.7 million. $0 funding is estimated for

FY08. Since this program is almost always funded in emergency supplemental

appropriations additional legislation in response to specific natural disasters is

possible before 9/30/08.

CRS-10

FY2009 Administration

request

$0. The Administration’s farm bill proposal would combine this program and the

Emergency Conservation Program into a new Emergency Landscape Restoration

Program

Authorization expires

Permanent authorization.

Backlog/interest

Not applicable.

Major 2002 farm bill

amendments

None.

Statutory authority

Authorized in the Emergency Conservation Measures (P.L. 85-88); amended by

§402 - §403 of the Agriculture Credit Act of 1978 (P.L. 95-334). (16 U.S.C.

2202-2204)

Environmental Quality Incentive Program (EQIP)

Program description

This mandatory program, administered by NRCS and funded by the Commodity

Credit Corporations, , provides cost share payments to producers and land owners

to plan and install structural, vegetative, and land management practices on eligible

lands to alleviate conservation problems, with 60% of the funds targeted to

livestock producers. EQIP is to be administered in an environmentally-beneficial

and cost-effective manner.

National participation

In FY07, EQIP allocated $1.005 billion for 41,700 contracts covering 17.1 million

acres, according to data in the FY09 budget notes.

Leading states

In FY07, the most contracts were signed in TX (5,099), followed by MS (2,367)

and NE (1,712). The largest allocation was paid to TX ($89.1 million), followed

by CA ($62.1 million) and CO ($40.2 million).

Participation priorities

The law states that applications that encourage cost-effective conservation

practices or address national conservation priorities are to be given greater

consideration. Also, in determining the amount and rate of incentive payments,

practices that promote residue, nutrient, pest, invasive species or air quality

management may be accorded “great significance.” Current priorities are reducing

non-point pollution, conserving ground and surface water, improving air quality,

reducing soil erosion, and promoting at-risk habitat conservation.

FY2008 spending (est.)

$1.0 billion.

FY2009 Administration

request

$1.050 billion. Administration’s farm bill proposal calls for a revised EQIP

program and streamlines existing water conservation programs into a new

Regional Water Enhancement Program. Funding for EQIP would be increased by

$4.25 billion FY2002-2017.

Authorization expires

September 30, 2010.

Backlog/interest

In FY07, 41,700 contracts were accepted and the remaining 40,535 applications

went unfunded. The total estimated cost to eliminate this backlog would be $865

million. The most unfunded applications were submitted in OK (3,772), followed

by TX (3,078). In terms of cost, the largest amount was in MT ($55.7 million),

followed by CA ($55.1 million), according to information in the FY09 budget

notes.

CRS-11

Major 2002 farm bill

amendments

Specified that the goals of EQIP are to “promote agricultural production and

environmental quality as compatible goals, and to optimize environmental

benefits...”; allowed cost sharing with large confined livestock operations for waste

management facilities (which had previously been prohibited); limited payments to

a total of $450,000; authorized competitive innovative matching grants; allocated

60% of funding each year to practices related to livestock production.

Statutory authority

Authorized in subtitle D of Title III (§331-336) of the Federal Agriculture

Improvement and Reform Act of 1996 (P.L. 104-127) as §1240-§1240I of the

1985 Food Security Act (P.L.97-198); amended by §2301 of the Farm Security

and Rural Investment Act of 2002 (P.L. 107-171). (16 U.S.C. 3839aa - 3839aa90)

EQIP — Innovative Grants

Program description

This mandatory program, administered by NRCS, awards competitive grants to

state and local agencies, non-governmental organizations, tribes, and individuals

to implement conservation. The program was implemented in FY04. Examples of

eligible projects identified in the 2002 farm bill include “market systems for

pollution reduction” and “innovative conservation practices, including the storing

of carbon in the soil.”

National participation

In FY04, 41 recipients received a total of $14.3 million, and in FY05, 103

recipients received a total of $22.1 million. Up to $20 million was made available

for awards in FY06, with $5 million of the total again going to the Chesapeake Bay

watershed states. For FY07, up to $20 million was made available and 52 awards

were made.

Leading states

Not applicable.

Participation priorities

None specified in law.

FY2008 spending (est.)

Unspecified subset of EQIP. In FY08, up to $15 million is available for natural

resource concerns, up to $5 million is available for the Chesapeake Bay watershed,

and up to $5 million is available for technology.

FY2009 Administration

request

Unspecified subset of EQIP. For the past 4 years, approximately $20 million of

EQIP’s CCC funding has been available for the grants program. Administration’s

farm bill proposal would increase funding to $100 million annually.

Authorization expires

September 30, 2010.

Backlog/interest

None identified.

Major 2002 farm bill

amendments

Program initially authorized in the Farm Security and Rural Investment Act of

2002.

Statutory authority

Authorized in §2301 of the Farm Security and Rural Investment Act of 2002 (P.L.

107-171) as §1240H of the 1985 Food Security Act (P.L. 97-198). (16 U.S.C.

3839aa8)

EQIP — Ground and Surface Water Conservation

Program description

This mandatory program, administered by NRCS, funds contracts with producers

to improve irrigation and water use efficiency on irrigated cropland, and reduce

water consumption on agricultural operations in areas severely affected by

drought. This program is available only for conservation measures that “results in

a net savings in groundwater or surface water resources in the agricultural

operation...”

CRS-12

National participation

Not applicable. A total of 32 states located either over the high plains aquifer or

severely impacted by drought received funds to implement EQIP contracts to

“improve irrigation and water use efficiency on currently irrigated cropland.” In

FY07, producers entered into 2,072 contracts on approximately 354,000 acres to

improve irrigation and water use efficiency on irrigated cropland.

Leading states

States receiving the largest obligations in FY07 were CA ($11.5 million), TX

($6.7 million), and NE ($6.1 million).

Participation priorities

None specified in law.

FY2008 spending (est.)

($60 million authorized, to be in addition to overall EQIP funding).

FY2009Administration

request

Administration’s farm bill proposal calls for a revised EQIP program and

streamlines existing water conservation programs into a new Regional Water

Enhancement Program (RWEP). In addition to cost-share funds under EQIP, the

RWEP would add $175 million annually to coordinate and fund large-scale water

conservation projects.

Authorization expires

September 30, 2007. House and Senate farm bills would modify the program and

increase authorized funding.

Backlog/interest

None identified.

Major 2002 farm bill

amendments

Program initially authorized in Farm Security and Rural Investment Act of 2002.

Statutory authority

Authorized in §2301 of the Farm Security and Rural Investment Act of 2002 (P.L.

107-171) as §1240I of the 1985 Food Security Act (P.L. 97-198). (16 U.S.C.

3839aa9)

EQIP — Klamath River Basin

Program description

This mandatory program, administered by NRCS, focuses on improving the

efficiency of water use associated with agricultural operations in the Klamath

River basin of OR and CA.

National participation

Not applicable as program operates only in portions of OR and CA.

Leading states

In FY07, CA received $3.7 million and OR received $4.0 million. Funds in FY07

and in pervious years were used to complete irrigation management plans on

37,209 acres and to apply conservation practices on 84,497 acres.

Participation priorities

None specified in law.

FY2008 spending (est.)

$0. Authorized at $50 million FY02-FY07.

FY2009 Administration

request

$0. Administration’s farm bill proposal calls for a revised EQIP program and

streamlines existing water conservation programs into a new Regional Water

Enhancement Program (RWEP). In addition to cost-share funds under EQIP, the

RWEP would add $175 million annually to coordinate and fund large-scale water

conservation projects, including Klamath.

Authorization expires

September 30, 2007. House farm bill authorizes a new Regional Water

Enhancement Program that prioritizes Klamath. The Senate measure also gives

priority to Klamath in its provision for a Partnerships and Cooperation Program.

Backlog/interest

None identified.

Major 2002 farm bill

amendments

Program initially authorized in the Farm Security and Rural Investment Act of

2002.

CRS-13

Statutory authority

Authorized in §2301 of the Farm Security and Rural Investment Act of 2002 (P.L.

107-171) as §1240I of the 1985 Food Security Act (P.L. 97-198). (16 U.S.C.

3839aa9)

Farm and Ranchlands Protection Program

Program description

This mandatory program, administered by NRCS, provides funds to state, tribal,

and local governments, and non-governmental organizations to help them purchase

conservation easements from willing sellers to limit conversion of farmland to

nonagricultural uses.

National participation

From the program’s inception in 1996 through FY07, $511.8 million was spent to

acquire 1,914 easements on 389,395 acres. Approximately 536,936 acres on 2,764

farms with an estimated easement value of $1.63 billion have or will have

easement contracts in the near future, according to the FY09 budget notes. (The

length of time from when a land owner first offers to sell an easement to when it is

recorded with the deed to the land can be considerable.)

Leading states

In FY07, the largest amount has been spent in NJ ($4.7 million), followed by DE

($3.1 million), and PA ($3.0 million). The most easements have been acquired in

MA and VT (33 each), followed by PA (27). The largest number of acres acquired

under easement are in VT (7,486 acres), followed by KS (6,761 acres) and WY

(4.229).

Participation priorities

None specified in law.

FY2008 spending (est.)

$97 million.

FY2009 Administration

request

$0. The Administration’s farm bill proposal calls for a new Private Lands

Protection Program that would encompass the FRPP and invest an additional $90

million annually into the various land conservation programs.

Authorization expires

September 30, 2007.

Backlog/interest

The FY2009 budget notes state that “The demand for the program has exceeded

available funds by approximately 200 percent.”

Major 2002 farm bill

amendments

Expanded the list of eligible lands to include cropland, rangeland, grassland,

pastureland, incidental forest land, and archeological and historic sites; expanded

eligibility to include Indian tribes and qualified non-profit organizations.

Statutory authority

Authorized in §388 of the Federal Agriculture Improvement and Reform Act of

1996 as §1238H-§1238J of the 1985 Food Security Act (P.L. 97-198); amended

by §2503 of the Farm Security and Rural Investment Act of 2002 (P.L. 107-171)

(16 U.S.C. 3838i)

CRS-14

Grassland Reserve Program

Program description

This mandatory program, jointly administered by NRCS and FSA, and working

with USDA’s Forest Service, uses long-term rental agreements and easements to

help land owners and producers restore and protect grasslands while maintaining

them in a condition suitable for grazing using common management practices.

National participation

The program has enrollments in 50 states. In FY07, $3.0 million was obligated to

new rental agreements in 17 states covering 76,333 acres to limited resource

farmers. In addition, 47 easements were signed in Kansas protecting 22,000 acres

according to the FY09 budget notes.

Leading states

In FY06 (the most recent data), the most approved applications were in MO (43),

followed by ND (17) and OK and MN (16 each). The most acres were approved

in SD (18,044 acres), followed by OK (16,033) and MT (14,314 acres).

Participation priorities

None identified in law.

FY2008 spending (est.)

$0.

FY2009 Administration

request

$0. The Administration’s farm bill proposal calls for a new Private Lands

Protection Program that would encompass the GRP and invest an additional $90

million annually into the various land conservation programs.

Authorization expires

September 30, 2007.

Backlog/interest

In FY05, 7,412 applications were submitted to enroll 5.0 million acres; 1,219

applications enrolling 385,000 acres were accepted. The backlog of unfunded

applications totaled more than $1.1 billion, according to the FY06 budget notes,

and continued to grow.

Major 2002 farm bill

amendments

Program initially authorized in the Farm Security and Rural Investment Act of

2002.

Statutory authority

Authorized in §2401 of the of the Farm Security and Rural Investment Act of 2002

(P.L. 107-171) as §1238N-§1238Q of the 1985 Food Security Act (P.L. 97-198).

(16 U.S.C. 3838n - 3838q)

Resource Conservation and Development Program

Program description

This discretionary program, administered by NRCS, provides support in the form

of NRCS staff coordinators, to authorized multi-county areas. Coordinators assists

state and local units of government and non-profits to develop and carry out

programs to conserve and improve natural resources and the use of land, and

improve conditions in rural America.

National participation

375 authorized areas encompass approximately 2,693 counties, more than 85% of

the national total, and more than 77% of the U.S. population, according to the

FY09 budget notes.

Leading states

Not applicable.

Participation priorities

None specified in law.

FY2008 spending (est.)

$52.3 million for technical assistance. $0 for financial assistance.

FY2009 Administration

request

$52.3 million for technical assistance. $0 for financial assistance. A Program

Assessment Rating Tool (PART) judged the program “duplicative.”

Authorization expires

Permanent authorization of “such sums as are necessary.”

CRS-15

Backlog/interest

Another 38 application areas covering 231 additional counties have applied for the

Secretary’s designation.

Major 2002 farm bill

amendments

Permanently reauthorized program, and amended it in its entirety, making

numerous, mostly minor or technical amendments.

Statutory authority

Enacted in §31 and §32 of the Bankhead-Jones Farm Tenant Act (P.L. 89-796);

Amended in its entirety in §2504 of the Farm Security and Rural Investment Act

of 2002 (P.L. 107-171). (16 U.S.C. 3451 - 3459)

Watershed and Flood Prevention Operations

Program description

This discretionary program, administered by NRCS, combines two separate

authorizations under which more than 11,000 structures have been built in more

than 1,500 active and completed projects. The P.L. 534 Flood Prevention

Operations Program authorizes 11 projects, while the P.L. 566 Small Watershed

Operations Program authorizes watershed projects generally. Projects may be

authorized for any of 8 purposes; almost all projects have flood control as an

authorized purpose. Under P.L.566, NRCS provides technical and financial

assistance to plan and install projects on private lands, in cooperation with local

sponsors, states, and other public agencies. The small watershed project costs are

shared with local partners. Projects are limited to a maximum size, including

25,000 acre feet of total capacity and 250,000 acres in extent. Projects above a

specified size require congressional committee authorization.

National participation

A total of 397 projects are active or completed under P.L. 534, and 1,363 are

active or completed under P.L. 566, according to the FY09 budget notes. No new

P.L. 566 projects were authorized for FY07.

Leading states

In FY06 (the latest available data), the largest allocation went to MO ($11.3

million), followed by HI ($8.0 million) and TX ($6.4 million). In FY05 (the latest

data available), the greatest number of active and completed projects are in IA

(179 projects encompassing 3.2 million acres), followed by TX (170 projects

encompassing 23.3 million acres) and MS (166 projects encompassing 8.7 million

acres).

Participation priorities

None specified in law.

FY2008 spending (est.)

$211.2 million.

FY2009 Administration

request

$0.

Authorization expires

Permanent authorization, no amount specified.

Backlog/interest

NRCS identifies a total of $1.42 billion in unfunded federal commitments for

authorized projects; the greatest value of unfunded commitments are in TX ($293

million) and OK ($234 million), according to the FY09 budget notes.

Major 2002 farm bill

amendments

None.

Statutory authority

Enacted in the Flood Control Act of 1944 (P.L. 534), as amended, and the

Watershed Protection and Flood Prevention Act (P.L. 83-566), as amended. (33

U.S.C. 701b-1 and 16 U.S.C. 1000, et. seq.)

CRS-16

Watershed Rehabilitation Program

Program description

This program, with funding authorized through both discretionary and mandatory

funds and administered by NRCS, provides technical and financial assistance for

planning, design, and implementation to rehabilitate aging watershed dam projects

(including upgrading or removing dams) to communities to address health and

safety concerns. Small watershed project dams have a 50-year design life, and 448

reached or exceeded that time span by the end of 2005. By the end of 2015, this

number will exceed 3,800, according to the FY07 budget notes.

National participation

FY07 was the sixth year of funding for the program. As of September 30, 2007, a

total of 160 projects have been funded in 25 states with 64 dams rehabilitated

according to the FY09 budget notes. In FY07, 94 rehabilitation projects in 24

states were funded, including 26 new projects.

Leading states

The largest number of projects are in OK (40), MS (19), and WI and Texas (14

each); The most completed projects are in OK (15), WI (11), MS (9).

Participation priorities

None specified in law. The Secretary is directed to develop a system for ranking

rehabilitation requests.

FY2008 spending (est.)

$22.3 million in discretionary funding and $0 in mandatory funding ($85 million in

discretionary funding and $0 million in mandatory funding authorized).

FY2009 Administration

request

$5.9 in discretionary funding and $65 million in mandatory funding. Funding is

part of the Administration’s farm bill proposal for improving national water

conservation efforts.

Authorization expires

Mandatory and discretionary funding expired September 30, 2007.

Backlog/interest

In FY07, funds were not available to address 18 additional requests for projects.

Major 2002 farm bill

amendments

Authorized both mandatory and discretionary funding levels each year; made

funding “no year” funding (meaning that discretionary funding is available until

spent, rather than until the end of the fiscal year for which it is appropriated, and

mandatory funding that is limited in the annual appropriations process is counted as

savings each year until it is made available). 2006 reconciliation legislation (P.L.

109-171) cancelled prior year funds that were available in FY07.

Statutory authority

Enacted in §313 of the Grain Standards and Warehouse Improvement Act of 2000

(P.L. 106-472) as §14 of the Watershed Protection and Flood Prevention Act; as

amended by §2505 of the Farm Security and Rural Investment Act of 2002. (16

U.S.C. 1012)

Watershed Surveys and Planning

Program description

This discretionary program, administered by NRCS, funds investigations and

surveys of river basins as the basis for developing coordinated water resource

programs in upstream watersheds. Plans address ways to respond to water quality,

flooding, water and land management, and sedimentation problems, and are

prepared in cooperation with federal, state and local agencies.

National participation

In FY07, $6.1 million was were provided to 39 states, according to the FY09

budget notes.

Leading states

In FY07, the greatest spending was in national headquarters ($991,342) followed

by CA ($529,290) and WY ($461,637).

Participation priorities

None specified in law. Agency priorities are stated in general terms and basically

restate the major missions of NRCS (erosion control and fish and wildlife

concerns, for example).

CRS-17

FY2008 spending (est.)

$0.

FY2009 Administration

request

$0.

Authorization expires

Permanent authorization, no amount specified.

Backlog/interest

None specified.

Major 2002 farm bill

amendments

None.

Statutory authority

Enacted in §6 of the Watershed Protection and Flood Prevention Act (P.L. 83566), as amended. (16 U.S.C. 1006-1009)

Wetland Reserve Program

Program description

This mandatory program, administered by NRCS, funds purchase of long-term

agreements and easements (30 year and permanent) to assist land owners in

protecting and restoring wetlands. It provides technical and financial assistance,

and emphasizes restoration to original natural conditions where possible.

National participation

Through 2007, 1.92 million acres had been enrolled, with easements perfected on

1.58 million acres. In 2007, more than 149,000 acres were enrolled in 821 projects,

at a cost of $247.8 million, according to the FY07 budget notes.

Leading states

In 2007, 13,528 acres were enrolled in FL, 8,669 acres were enrolled in NC, and

7,195 acres were enrolled in MS. In 2007, $49.6 million was spent in FL, $14.3

million in NC, and $19.9 million in MS, according to the NRCS website.

Participation priorities

Priority given to permanent easements over shorter terms, and to easements that

provide greater benefits in “protecting and enhancing habitat for migratory birds

and other wildlife.”

FY2008 spending (est.)

Enrollment limited to 150,000 acres, which will cost an estimated $250.2 million.

Authorized to enroll 250,000 acres annually with no annual spending limit specified

(measured in calendar years).

FY2009 Administration

request

Would reauthorize the program in the Omnibus farm bill and raise the total

enrollment cap to 3.5 million acres, but maintain the fiscal year enrollment goal of

250,000 acres. The proposed increase in acreage would cost $2.125 billion over 10

years. Also proposes consolidating floodplain easement function of the Emergency

Watershed Program into WRP.

Authorization expires

December 31, 2007. Both House and Senate farm bills propose reauthorizing the

program.

Backlog/interest

In FY05, 3,204 unfunded easement applications would have enrolled 461,704 acres

at an estimated cost of $653 million. The most applications were from AR (376),

followed by MN (371). The most land was in AR (81,893 acres), followed by MN

(59,276 acres). The cost of the easements was greatest in AR ($76 million),

followed by IA ($62 million), according to the NRCS Website. The FY09 budget

notes state that in FY2007 123 of 317 cost share applications were funded; 72 of

266 30 year agreements were funded, and 626 of 1,775 permanent easements were

funded.

Major 2002 farm bill

amendments

Increased enrollment ceiling from 1.075 million acres to 2.275 million acres in

total, and 250,000 acres annually, “to the maximum extent practicable.”

CRS-18

Statutory authority

Enacted in §1438 of the Food, Agriculture, Conservation and Trade Act of 1990

(P.L. 101-624) as §1237 - §1237F of the 1985 Food Security Act (P.L. 198);

amended by §2201-2204 of the Farm Security and Rural Investment Act of 2002.

(16 U.S.C. 3837 - 3837c)

Wildlife Habitat Incentive Program

Program description

This mandatory program, administered by NRCS, provides technical and financial

assistance to eligible participants to develop upland and wetland wildlife,

threatened and endangered species, fish and other types of wetland habitat in an

environmentally beneficial and cost effective manner.

National participation

Since the program’s inception in FY98, more than 25,600 agreements have enrolled

in over 4 million acres. In FY07, more than 350,000 acres were enrolled through

more than 2,100 agreements, according to the FY09 budget notes.

Greatest participation

In FY07, the largest number of contracts were in KS (132), followed by MS (119),

and KY (108). The largest numbers of enrolled acres were in AZ (68,032 acres),

OR (34,280 acres), and OK (26,504 acres). The greatest spending was in NH ($2.5

million), followed by AK ($2.2 million) and HI ($2.2 million).

Participation priorities

WHIP priorities for FY07 were to promote restoration of important wildlife habitat,

promote wildlife habitat of at-risk species, reduce the impact of invasive species on

wildlife habitat,; and promote declining aquatic wildlife species habitat.

FY2008 spending (est.)

$85 million.

FY2009 spending (prop.)

$0. Administration’s farm bill proposal would consolidate WHIP into a new

comprehensive EQIP program.

Authorization expires

September 30, 2007.

Backlog/interest

In FY2007, WHIP had 3,242 unfunded applications at a total cost of $55.7 million.

OK had the most unfunded applications (579), followed by GA (186) and VT

(138). RI had the highest cost for these applications ($9.6 million), followed by

OK ($5.7 million) and ME ($4.2 million), according to the NRCS website.

Major 2002 farm bill

amendments

Required consideration of regional wildlife issues; authorized pilot program using

up to 15% of funds to enroll land in contracts of at least 15 years.

Statutory authority

Enacted in §387 of the Federal Agriculture Improvement and Reform Act of 1996

(P.L. 104-127) as §1240N of the 1985 Food Security Act (P.L. 99-198); amended

by §2502 of the Farm Security and Rural Investment Act 2002 (P.L. 107-171). (16

U.S.C. 3839bb-1)