A little known program continued from the 2008 Farm Bill is the Conservation Reserve Program Transition Incentive Program (TIP). TIP is a program that assists farmers interested in selling land to a beginning farmer.
Under TIP, landowners with expiring CRP contracts receive an additional two years of CRP payments on land that is sold or leased to a beginning, socially disadvantaged, or veteran farmer. The sold or leased land is then returned to production by the beginning farmer. Keep in mind the participating farmers must develop and/or implement a conversation plan for the land coming out of CRP.
TIP sign-ups began June 9. Funding increased from the 2008 Farm Bill; currently, TIP is funded with $33 million through 2018.
But there are other advantages to TIP. TIP can be combined with existing state and federal programs. For example, the Nebraska Beginning Farmer Tax Credit can be utilized by the landowner and beginning farmer while enrolled in TIP. That way, the landowner receives two additional CRP payments while also receiving the Nebraska Beginning Farmer Tax Credit. TIP may also be combined with EQIP (Environmental Quality Incentives Program) and CSP (Conservation Stewardship Program).
We are happy to help with any questions you may have regarding TIP. It is a wonderful program for both landowners and beginning farmers and ranchers so look into it!