May 2000
Conservation Reserve Program
Continuous Signup Enhancements
Authorization
The Food Security Act of 1985, as amended, authorizes the
Conservation Reserve Program (CRP), which is implemented through the Department of
Agricultures (USDA) Commodity Credit Corporation (CCC) by the Farm Service Agency
(FSA).
Overview
CRP is a voluntary program that offers annual rental
payments and cost-share assistance to establish long-term resource-conserving covers on
eligible land. CCC makes annual rental payments based on the agriculture rental value of
the land and provides cost-share assistance in an amount equal to not more than 50 percent
of the participants costs in establishing approved practices. The durations of
contracts are from 10 to 15 years.
Continuous CRP Signup
Continuous signup provides management flexibility to farmers
and ranchers to implement certain high-priority conservation practices on eligible land.
Offers are automatically accepted provided the acreage and producer
meet certain eligibility requirements. The per-acre annual rental rate may not exceed
CCCs maximum payment amount. While acceptance is not determined by a competitive
offer process, producers may elect to receive an amount less than the maximum payment
rate.
Additional Incentives Offered
Additional incentives are being offered to encourage
producers to participate in the CRP continuous signup.
Signup
Producers offering eligible land at their local FSA office
for the continuous CRP signup may be eligible for certain enhancements.
Key Provisions
Key provisions of the continuous signup enhancements
include:
Eligible Land and Practices
To be eligible under continuous signup, land must first meet the
basic CRP eligibility requirements. Acceptable land is:
(1) Cropland that was planted or considered planted to an
agricultural commodity 2 of the 5 most recent crop years (including field margins), which
is also physically and legally capable of being planted in a normal manner to an
agricultural commodity; or
(2) Marginal pastureland that is suitable for use as a
riparian buffer to be planted to trees.
The acreage must also be determined by USDAs Natural Resources
Conservation Service (NRCS) to be eligible and suitable for any of the following
practices:
Producer Eligibility Requirement
If a tenant, the producer must be a participant with an
eligible owner or operator.
Rental Rates
CCC bases rental rates on the average value of dryland cash
rent or the cash rent equivalent for the past 3 years and adjusts rates to reflect the
relative productivity of soils within each county. The maximum CRP rental rate is
calculated in advance of enrollment.
In addition, CCC offers additional financial incentives of up to 20
percent of the soil rental rate for field windbreaks, grass waterways, filter strips, and
riparian buffers. An additional 10 percent may be added to the soil rental rate for land
located within EPA-designated wellhead protection areas. A per-acre payment rate may also
be added for maintenance of eligible practices.
Offers for rents greater than the maximum rental rate are not
considered, and the maximum rental rate, as a matter of general applicability, is not
appealable. Only determinations by USDA officials regarding soil type and related soil
type acreage may be appealed.
Cost-Share Payments
In addition to the payments described above, CCC will pay up
to 50 percent of the eligible cost of establishing a permanent cover.
Contract Effective Date
The effective date of the CRP contract is the first day of
the month following the month of approval. In certain circumstances, producers may defer
the effective date for up to 6 months.
If the acreage is currently under CRP contract and is within 1 year
of the scheduled expiration date, the effective date is the October 1 following the
expiration date.
Length of Contracts
Contracts are for no less than 10 and no more than 15 years
in duration.
Cooperating Agencies
The CRP is administered by USDAs FSA with assistance
from NRCS, the Cooperative State Research, Education, and Extension Service, State
agencies, and local soil and water conservation districts. Producers can find out program
details and offer acreage for enrollment at their local FSA or NRCS office, both of which
are listed in telephone books under "United States Government, U.S. Department of
Agriculture."
More Information
More information about FSA and its conservation programs can
be found on the FSA website at: www.fsa.usda.gov