CONSERVATION RESERVE PROGRAM FINAL RULE Release No.0045.97 Backgrounder CONSERVATION RESERVE PROGRAM FINAL RULE 1) Q: The Secretary's statement spoke of a commitment to redesign the CRP program. What has been done to improve the environmental performance of the program? A: The redesigned CRP program incorporates a number of changes to provide the most environmental benefits obtained through enrollment. They include:  Fully incorporating the joint objectives of soil erosion prevention, water quality improvement, and wildlife habitat enhancement;  Using a comprehensive scoring system, called the Environmental Benefits Index (EBI) that explicitly evaluates the environmental benefits of acres offered for enrollment. This allows USDA to rank and select those acres that provide the most benefits to wildlife habitat, erosion control, water quality and air quality at the least possible cost;  Making eligible 8.4 million acres of cropped wetlands;  Designating the Prairie Pothole region as a fourth national conservation priority area based on wildlife habitat (in addition to the Great Lakes, Long Island Sound, and the Chesapeake Bay areas); authorizing other conservation priority areas through the state Farm Service Agency committees to address other wildlife habitat, water quality, and air quality issues within a state -- acreage located in these areas is made basically eligible for enrollment and provided additional consideration in the acceptance process; and  Continuation of the continuous sign-up of highly valuable environmental acreage, including filter strips, riparian buffers, grassed waterways, field windbreaks, shelter belts, living snow fences, salt-tolerant shallow water areas for wildlife, contour grass strips, or acreage in a wellhead protection area designated by the Environmental Protection Agency or appropriate state agency. 2) Q: How are the final rule provisions different from those contained in the proposed rule? A: Based on the consideration of the 3,467 comments received and upon the Commodity Credit Corporation's (CCC) experience in implementing CRP since 1986, there were a number of substantive changes made from the proposed rule. Generally, the final rule amended the Eligible Land section by:  Changing the CRP erosion eligibility criteria to make it consistent with the definition of highly erodible land used for the conservation compliance program.  Making marginal pasture land eligible if it is suitable for use as a riparian buffer planted to trees. This will provide substantial water quality, erosion, wildlife, and other environmental benefits.  Generally making cropland associated with non-cropped wetlands eligible for enrollment in the CRP if such acreage meets the cropping requirements. This acreage provides high environmental benefits, such as erosion control and wetland protection, but is most beneficial as wildlife habitat, particularly for waterfowl and other species.  Changing the term "farmed wetlands" to "cropped wetlands" in establishing basic land eligibility.  Making field margins that are incidental to the planting of crops eligible for enrollment. The final rule also amended the Acceptability of Offers section regarding the environmental benefits index to add "air quality" as a possible factor in the evaluation of contract offers. Air quality was not included in the proposed rule. The CRP has proven to be an efficient tool in improving the air quality throughout the nation by reducing the amount of air pollution caused by blowing dust from production cropland. 3) Q: When will the next general sign-up be held? A: The 15th sign-up period will be conducted from March 3 through March 28, 1997. 4) Q: When will program information be available in local FSA offices? A: State and local FSA and Natural Resources Conservation Service (NRCS) employees will be trained in late February. Detailed program information will be available in local FSA offices beginning March 3. 5) Q: Will any existing CRP contracts be extended? A: No. The 1997 agriculture appropriations act effectively precluded the extension of any CRP contracts. All contracts which expire on September 30, 1997 will not be extended. 6) Q: Since existing CRP contracts cannot be extended upon expiration, will the acreage still be eligible to be re-offered under another sign-up? A: Only if the acreage is otherwise eligible for enrollment. Land already under contract is not automatically eligible for re-enrollment. 7) Q: What are the land eligibility requirements for new CRP contracts? A: Eligible cropland is defined as land that has been planted or considered planted to an agricultural commodity 2 of the 5 most recent crop years and must be capable of being planted to an agricultural commodity. Also, the final rule makes marginal pasture land eligible if it is either currently enrolled in the Water Bank Program or will be devoted to a riparian buffer to be planted to trees. Eligible cropland must also meet one of the following criteria to be offered for enrollment in the CRP:  Have an Erosion Index (EI) of 8 or higher or be considered highly erodible land according to the conservation compliance provisions (Redefined fields must have an EI of 8 or higher);  Be considered a cropped wetland;  Be devoted to any of a number of highly beneficial environmental practices, such as filter strips, riparian buffers, grass waterways, shelter belts, wellhead protection areas, and other similar practices;  Be subject to scour erosion;  Be located in a national or state CRP conservation priority area; or  Be cropland associated with, or surrounding, non-cropped wetlands. 8) Q: Are there any producer eligibility requirements? A: Yes. Land must have been owned or operated for at least 12 months prior to close of the sign-up period unless the: (1) new owner acquired the land as a result of death of the previous owner; (2) only ownership change occurred due to foreclosure where the owner exercised a timely right or redemption in accordance with State law; or (3) circumstances of the acquisition present adequate assurance to the CCC that the new owner did not acquire the land for the purpose of placing it in CRP. If a tenant, the tenant must be a participant with an eligible owner or operator. 9) Q: What will be the duration of CRP contracts? A: Generally, contracts will be for a term of not less than 10 years. However, for land devoted to practices such as riparian buffers, filter strips, restoration of cropped wetlands, hardwood trees, shelter belts, windbreaks, or wildlife corridors, contracts may be for a term of not less than 10 or more than 15 years. 10) Q: How are CRP rental rates determined? A: The rental rate is based on county average dryland cash or cash rent equivalent rental rates adjusted for site-specific soils-based productivity factors. An additional amount, not to exceed $5 per acre, is provided as an incentive to perform maintenance obligations. Producers will know in advance what the maximum rental rate will be for the acreage being offered and may offer whatever rate they choose. They can offer less than the maximum rental rate to increase the likelihood of acceptance through the competitive environmental benefits index (EBI). 11) Q: If a producer does not agree with the maximum payment rate can the rate be appealed? A: While most program decisions made by USDA officials can be appealed, appeal of a CRP maximum payment rate is restricted. Only the soil types and related soil type acreage determinations made by the NRCS may be appealed. The payment rate formula and the individual soil rental rates used in the formula are uniformly applicable to all CRP applicants within each county and may not be appealed. 12) Q: What is the Environmental Benefits Index (EBI)? A: When a bid is submitted, NRCS collects data for each of the EBI factors based upon the relative environmental benefits for the land offered. Offers are then ranked in comparison to all other offers and selections are made from that ranking. Rankings are based on potential environmental benefits derived from enrolling the acreage in the CRP, taking into consideration the cost to the taxpayer. 13) Q: What are the EBI factors? A: The EBI factors are: (1) wildlife habitat benefits which encourage covers on contract acreage that will be most beneficial to wildlife; (2) water quality benefits from reduced erosion, runoff, and leaching; (3) on-farm benefits of reduced erosion; (4) likely long-term benefits beyond the contract period which recognizes that certain practices such as trees will provide environmental benefits beyond the contract period; (5) air quality benefits from reduced wind erosion; (6) benefits of enrollment in conservation priority areas where enrollment would contribute to the improvement of identified adverse water quality, wildlife habitat, or air quality; and (7) cost. 14) Q: When will contracts selected for enrollment become effective? A: For sign-up 15, new contracts for acreage under contracts scheduled to expire on September 30, 1997, will be effective October 1, 1997. New contracts for acreage not previously in CRP become effective October 1, 1997, or October 1, 1998, at the participant's option. 15) Q: If a producer has more than one CRP contract expiring in 1997, must all acreage be offered for re-enrollment? A: No. A producer may offer any eligible acreage for the CRP. 16) Q: May land rejected when offered for an earlier sign-up be re-offered during a later sign-up? A: Yes. Land that meets basic eligibility criteria may be offered during any CRP sign-up even if it was not accepted previously. The likelihood of acceptance could be increased by bidding less than the maximum payment rate for the acreage. 17) Q: If a CRP contract has expired and the acreage is not enrolled under a new contract, must the producer follow a conservation plan to maintain farm program eligibility if the acreage is farmed? A: Yes. If the acreage meets the highly erodible land definition (HEL), a conservation plan will be required to retain eligibility for certain other USDA farm programs. 18) Q: What are the producer's obligations if the CRP contract has expired and the acreage is not accepted for a new contract? A: Some current CRP acreage is subject to easements which are in effect for up to 30 years. For acreage subject to a CRP contract only, all CRP obligations cease when the contract expires. 19) Q: May this land be returned to crop production? A: Some producers will wish to return their less-fragile CRP land to crop production as contracts expire. Acreage that had been enrolled in CRP, for which crop acreage base has been preserved, may be eligible to enter into a production flexibility contract. 20) Q: Will bases, allotments, and quotas continue to be reduced as a condition of enrollment in CRP? A: As a result of the 1996 Farm Bill, crop acreage bases no longer exist. However, the Food Security Act of 1985, as amended, requires a reduction as a condition of enrollment in CRP. Therefore, only quota and acreage allotments for tobacco and peanuts will be subject to reduction. 21) Q: For cropped wetlands eligible for CRP, must the wetland's functions and values be fully restored when the acreage is enrolled? A: The level in restoration is determined by the participant. However, for restoration, a one-time incentive payment is available in addition to the normal cost-share payment. Restoration of the wetland will increase the likelihood that the contract will be accepted, due to enhanced environmental benefits. 22) Q: How many acres in the nation are meet the basic eligibility requirements for enrollment in CRP? A: Of over 364 million acres of cultivated cropland in the nation, approximately 230 to 240 million acres meet the basic eligibility requirements for CRP. 23) Q: Of the acreage eligible, how many acres are considered highly erodible? A: Of about 230 to 240 million acres, approximately 140 million acres are considered highly erodible. 24) Q: Of the acreage eligible, how many acres are considered cropped wetland? A: Of about 230 to 240 million acres, approximately 8 million acres are considered cropped wetland. 25) Q: When will the final rule be effective? A: The final rule is effective upon publication. The provisions of the Small Business Regulatory Enforcement Fairness Act of 1996 generally require a 60-day period during which Congress may review certain rules before they become effective. However, that Act, also provides that the 60-day waiting period will not apply when an agency finds that the delay would be impracticable, unnecessary, or contrary to the public interest. It has been determined it would be contrary to the interests of producers and the public to delay the effectiveness of the CRP rule. Delaying implementation of the final rule would have prevented producers, particularly those with expiring contracts, from making timely crop production or CRP enrollment decision. # NOTE: USDA news releases and media advisories are available on the Internet. Access the USDA Home Page on the World Wide Web at http://www.usda.gov