1. Title II – Conservation Environmental Quality Incentives Program and other Conservation Programs 2002 Farm Bill Education Conference Kansas City, Missouri May 20-21, 2002 Andy Seidl Colorado State University

2. Title II: Conservation Presentation Focus: Environmental Quality Incentives Program (EQIP) Also: Wetlands Reserve Program Wildlife Habitat Incentives Program Farmland Protection Program Small Watershed Rehabilitation Program Desert Terminal Lakes Program

3. Environmental Quality Incentives Program (EQIP) 1996 vs 2002 Overview Priority areas Eligibility Funding/Payments

4. Environmental Quality Incentives Program (EQIP) Established 1996 Farm Bill Voluntary program addressing soil, water & other natural resource concerns on agricultural lands. Administered by NRCS, funding through CCC, facilitated by FSA Technical & financial assistance for… –regulatory compliance, –environmental enhancement, –conservation planning. 5X over subscribed.

5. 1996 Environmental Quality Incentives Program Details 5-10 yr contracts & conservation plans  75% cost share for conservation practices –Grassed waterways--Filter strips –Manure mgmt facilities--Capping wells Incentive payments for land mgmt (  3yr) –Nutrient mgmt--Manure mgmt –Irrigation water mgmt--IPM

6. EQIP Priority Areas Local CD identifies & proposes, State Conservationist prioritizes  65% of funds spent in priority areas Watersheds, regions or areas of special environmental sensitivity or… Areas of special soil, water, or related natural resource concerns –Soil erosion--Water quality/quantity –Wildlife habitat--Wetlands –Forest lands--Grazing lands.

8. 1996 EQIP: Eligibility Livestock or ag producers on targeted lands. No cost share for CAFO waste mgmt facilities, but eligible for other assistance Total cost share & incentives  $10K/yr & $50K/contract.

9. 1996 EQIP Funding FY1996-2001 $1.3 billion FY2001 $200 million –$158 million financial assistance –$3 million educational assistance –$38 million technical assistance  50% to livestock operations  50% to irrigation water management for soil erosion reduction and water quality improvements.

10. 2002 EQIP Funding $9 billion total budget Ramp to $1.3 billion/yr by 2007 (  6X)  60% to livestock operations  40% to crop producers. 1-10 yr contracts. $450,000 payment cap, 2002-07.  90% Cost share for limited resource or beginning farmer/rancher

11. 2002 EQIP: Other Changes Incentives expanded to annual & perennial crops and CNMPs Incentive payments emphasize residue, nutrient, pest, invasive species and air quality mgmt. Applied research support. Ranking based upon national conservation priorities. CAFOs are eligible for all parts of program.

12. 2002 EQIP: Water Conservation Program Cost share assistance and incentive payments to conserve ground and surface water Emphasis on irrigation efficiency & dryland alternatives. $600 million total $50 million for Klamath Basin

13. Perspectives on EQIP Producers generally in favor of voluntary incentive-based environmental programs. Producers not supportive of regulatory solutions. Environmental lobby generally supportive of EQIP, but also regulatory programs. Both concerned regarding relaxed payment caps and unrestricted eligibility. High profile with CWA & CAA Revisions

14. Perspectives on EQIP

15. EQIP Resources USDA Farm Bill site: http://www.usda.gov/farmbill/http://www.usda.gov/farmbill/ NRCS EQIP site: http://www.nrcs.usda.gov/programs/eqip/ http://www.nrcs.usda.gov/programs/eqip/ Farm Foundation Publications and National Producers’ Survey site: http://www.farmfoundation.org/2002_farm_bill.htm http://www.farmfoundation.org/2002_farm_bill.htm Environmental Working Group Database: http://www.ewg.org/ http://www.ewg.org/

16. Other Conservation Programs Wetlands Reserve Program (WRP) –Cap increased from 1.075 to 2.275 million acres –$1.5 billion total. –http://www.nrcs.usda.gov/programs/farmbill/2002 /pdf/WRPFct.pdf Wildlife Habitat Incentives Program (WHIP) –Cost share payments to provide wildlife habitat –1.6 million acres in program –Budget  10X to $700 million –http://www.nrcs.usda.gov/programs/farmbill/2002 /pdf/WHIPFct.pdf

17. WRP Acres

18. Other Conservation Programs: Farmland Protection Plan USDA partners with state, tribal & local organizations to acquire conservation easements. Matching funds (up to 50%) for 30 yr to perpetual conservation easements. Mandatory conservation plan (particularly highly erodible lands). Budget  20X to $985 million

19. Other Conservation Programs: Farmland Protection Plan Targets: –prime, unique, productive soils or historical or archeological resources –Privately owned –Part of an existing protection program –Large enough to sustain agricultural production –Accessible to markets –Surrounded by compatible uses. Fact sheet: http://www.nrcs.usda.gov/programs/farmbill/2002/p df/FPPFct.pdf

20. Other Conservation Programs Small Watershed Rehabilitation Program –Rehabilitates small watershed flood prevention dams –$275 million total. Desert terminal lakes –Provides funding to help conserve lakes. –$200 million total.