1. Agriculture and Water Quality Where Are We ? And Where Are We Going? Dan D. Lawson Branch Chief, Conservation and Watershed Planning, NRCS It’s The Water Workshop September 13-15, 2005 Hannibal, Missouri

2. 2 Mission The Natural Resources Conservation Service provides leadership in a partnership effort to help people conserve, maintain, and improve our natural resources and environment.

3. 3 Where Are We?

4. 4 Staffing 11,804 permanent full-time employees 93% at the state level or below 2,536 field offices

5. 5 FY-2005 Funding (Dollars in thousands) Discretionary Funds 1,241,662 Mandatory Funds 1,955,496 NRCS Reimbursables 70,467 TOTAL$ 3,267,625

6. 6 FINANCIAL ASSISTANCE PROGRAMS

7. 7 Environmental Challenges - Agriculture Water quality (nutrients, sediment, pathogens, etc.) Water quantity (too little or too much) Air quality (odor, particulates, etc.), greenhouse gas emissions and carbon sequestration Invasive Species Energy production and conservation Urban / rural interface

8. 8 USDA Policy “Food and Agricultural Policy: Taking Stock for the New Century” (September 2001) A portfolio approach: –Land retirement –Stewardship –Conservation compliance –Regulatory assistance “…carefully designed…each where most appropriate...”

9. 9 Types of Conservation Programs in the 2002 Farm Bill “Conservation Portfolio” –Technical Assistance –Easement Programs –Cost-Share Programs –Stewardship Program –Grants for Innovation

10. 10 Highlights – Implementation of the Conservation Title through Conservation Programs 21 major rules completed National and local priorities established New approaches implemented –Conservation Security Program –Grant Programs (CIG, Biomass) –Technical Service Providers Program management performance incentives initiated (EQIP) Program delivery costs reduced NRCS reorganized for efficiency/effectiveness

11. 11 Highlights – Science, Technology & Management Advancements Producer self-assessment tool (CSP) ProTracts for contract management (EQIP, CSP, WHIP, AMA) Management intensity (EQIP and CSP enhancements) Soil Conditioning index (CSP) Conservation Effects Assessment Project Conservation planning sign-up pilot project

12. 12 Environmental Quality Incentives Program (EQIP) The conservation cost- share “work horse” in the NRCS tool box Approximately $1 billion in 2005 Typically a 50-75% cost- share rate Practices and rates determined on state level with local input

13. 13 EQIP National Conservation Priorities Reduction of non-point source pollutants, reduction of groundwater contamination, and conservation of ground and surface water resources Reduction of emissions that contribute to air quality impairment Reduction in soil erosion and sedimentation from unacceptable levels on agricultural lands Promotion of at-risk species habitat conservation

14. 14 EQIP FY-2005 Applications & Contracts

15. 15 EQIP FY-2004 Cost-Share Payments by Natural Resource Concerns

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17. 17 Stewardship Program Conservation Security Program

18. 18 CSP: A Three-Tiered Program I.Protect soil and water quality on part of your operation II.Protect soil and water quality on all of your operation (Plus: Agree to address one other resource concern) III.Protect all natural resources on all of your operation (Plus: Agree to additional activities)

19. 19 2004 & 2005 CSP Watersheds

20. 20 CSP Implementation: FY-2005 First available in 2004 in 18 watersheds, 2005 in 220 12,700 participants/contracts 9.0 million acres enrolled $202 million available; $11,500/yr/average contract 51% in Tier I 28% in Tier II 21% in Tier III

21. 21 CSP Implementation: FY-2006 States provided input to Chief on watershed priorities for 2006 on June 15, 2005 Chief reviewed 2006 watershed selection proposals and made a recommendation on August 25 th to USDA USDA announced 110 watersheds for FY 2006 Watersheds represent 137,000 eligible farms and ranches covering 50 million acres Sign-up period will take place early in FY 2006

22. 22 CRP Contract Expiration

23. 23 Planned CRP Activities USDA will issue a policy on contract extensions/re-enrollments by end of FY-2005 (General CRP) USDA will issue a policy on re-enrollment of Continuous CRP and CREP by end of FY- 2005 USDA may postpone this year’s Fall General Sign-up until early in calendar year 2006 USDA is continuing to look at tasks/activities to streamline (all provisions of CRP)

24. 24 CEAP Watershed Assessment Studies 2004

25. 25 Where Are We Going?

26. 26 NEXT FARM BILL (Per Chief Bruce Knight) Even more emphasis on: Working lands (conservation and economic sustainability) Incentives Voluntary efforts to negate need for additional regulation Efficient program administration Measurable results Meeting water quality/quantity, wetlands, and forest health objectives

27. 27 Preparation for Next Farm Bill Programmatic streamlining and efficiency/effectiveness improvements Conservation planning and technical assistance streamlining Conservation program reform and assessment Maximizing performance of existing programs and contracts

28. 28 Preparation for Next Farm Bill Programmatic Streamlining and Efficiency/Effectiveness Improvements 1 policy manual, 1 set of procedures, 1 set of forms, etc. for cost-share and easement programs, respectively ProTracts Phase II – easement programs Technical assistance efficiency measures for each program National priorities for all programs to create greater programmatic synergy/eliminate duplication Program management performance incentive for each program Automated application evaluation and ranking template for EQIP and WHIP

29. 29 Preparation for Next Farm Bill Conservation Planning and Technical Assistance Streamlining Improvement/expansion of CSP producer self- assessment model for all conservation planning Standard template in Customer Service Toolkit (CST) for development of CNMPs Full use of FSA’s digitized common land units for conservation planning in CST FSA’s adoption of NRCS’s recommendations on streamlining NRCS technical assistance with CRP

30. 30 Preparation for Next Farm Bill Conservation Program Reform and Assessment Completing “Reform and Assessment of Conservation Programs” provision of 2002 Farm Bill Considering and evaluating improvements to discretionary programs (Small Watershed Program; RC&D Program)

31. 31 Preparation for Next Farm Bill Maximizing Performance of Existing Programs and Contracts Complete unfinished work in prior year contracts Benefit as many producers as possible Buy as much conservation as we can Help livestock sector comply with regulations Demonstrate accountability for funding (OMB PART)

32. 32 Program Assessment Rating Tool Scores for NRCS Programs ProgramScoreRatingYear CTA59Results Not Demonstrated2003 Soil Survey71Moderately Effective2003 WHIP60Results Not Demonstrated2002 Snow Survey - RePART82Moderately Effective2004 FRPP66Results Not Demonstrated2002 Plant Materials63Results Not Demonstrated2003 NRI69Results Not Demonstrated2003 Watershed and Flood Prevention 65Adequate2004 EWP56Results Not Demonstrated2004 EQIP72Moderately Effective2004 RC&D41Results Not Demonstrated2004

33. 33 “Stewardship is the daily work of America’s farmers and ranchers.” - Chuck Connor, USDA Deputy Secretary, May 26, 2005 Secretary Johanns will take the Farm Bill debate to farmers and ranchers throughout the U.S. (Farm Bill Listening Sessions) By late fall 2005, USDA will be able to articulate a common vision for 2007 Farm Bill Bush Administration Farm Bill proposal is a priority – building off input from the ground up

34. 34 2007 Farm Bill Forums The Secretary will hold Farm Bill Forums to seek input from America’s farmers, ranchers and rural residents regarding the development of the 2007 Farm Bill The first Farm Bill Forum was held July 7, 2005, in Nashville, Tennessee USDA plans to announce additional sessions as arrangements are confirmed throughout the year There probably will be specialized forums on specific issues, such as food assistance and research

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40. 40 FY 04 Progress by NRCS

41. 41 Nutrient Management Applied FY 04

42. 42 Tillage and Cropping Residue Management Applied FY 04

43. 43 Water Management – Terraces Applied FY 04

44. 44 Land Treatment – Vegetative Stabilization Conservation Cover Applied FY 04

45. 45 Riparian Forest Buffers Applied FY 04

46. 46 Wetland Wildlife Habitat Management Applied FY 04

47. 47 Principal Goals for the Next Four Years Increase breadth and enhance quality of cooperative conservation as a driving force in NRCS programs Restructure NRCS program delivery at the watershed level to better integrate a wide range of programs and better coordinate with non-NRCS conservation efforts Realize full implementation and full participation in the 2002 Farm Bill

48. Agriculture and Water Quality Where Are We ? And Where Are We Going? Dan D. Lawson Branch Chief, Conservation and Watershed Planning, NRCS It’s The Water Workshop September 13-15, 2005 Hannibal, Missouri