Conservation

Conservation Stewardship Program Sign-Ups Ongoing

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If you are interested in the Conservation Stewardship Program for 2015, you have until February 27, 2015 to submit your initial application to your local NRCS office.  If you submit your application after February 27, 2015, your application will be considered in 2016.

What is the Conservation Stewardship Program?  It is a working lands program that rewards farmers and ranchers for conservation and environmental benefits they produce.  NRCS has a self-screening checklist available to help you determine if the program is suitable for your operation.

CSP is a competitive program that aims to achieve environmental benefits by scoring and then financially rewarding CSP applicants with the highest conservation performance outcomes, based on current and planned future conservation activities. First you apply to see if you are eligible, then NRCS scores your current performance and future plans. If you already meet acceptable conservation levels, then you compete in a ranking process that determines who will receive contracts. Contracts are awarded to those offering the highest level of environmental benefits, with NRCS working down through the list of eligible applicants until acreage allocated to the particular state for that particular year runs out. At the national level in most years approximately twice as many farmers apply as get into the program in a given year, though there is some variation by state to that two to one ratio.

Signing up is simple.  Head over to your local NRCS office and submit the initial application, which is a simple form.

Keep in mind that if you are applying as an entity (that is, a business), you must have a DUNS number  (click here on information on how to obtain a DUNS number).  Additionally, the entity will need to register with the System for Award Management.  If you are applying as an individual and use your social security number as your Employer Identification Number (EIN), you do not need a DUNS number or register with SAM.

At this time, NRCS has not published updated information for the fiscal year 2015 sign-up, such as which enhancements are available to choose among or corresponding environmental benefit score.  But don’t let that stop you from contacting your local NRCS office if you are interested.

Conservation Compliance and Crop Insurance

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Pursuant to the 2014 Farm Bill, crop insurance premium subsidies are now linked to conservation compliance.  The Risk Management Agency has put together a good FAQ about conservation compliance but here are some highlights:

What type of compliance is required?

For production on highly erodible land, a producer of annually tilled crops or sugarcane is required to use a Natural Resources Conservation Service approved conservation plan.  If production occurs on a converted wetland, certain USDA benefits are not available.

Are there any deadlines?  If so, what is required to be done before the deadline?

Yes.  To be eligible for a crop insurance subsidy, a completed and signed form AD-1026 must be on file at the Farm Service Agency by June 1, 2015 for the 2016 reinsurance year (July 1, 2015 to June 30, 2016) and you, and any affiliated person, must be in compliance.

What is a form AD-1026?

Form AD-1026 is also called a “certificate of compliance” and is the form used to certify compliance with highly erodible land and wetlands conversion provisions.

Who determines if my farm has highly erodible land or wetland conservation?

The National Resource Conservation Service makes the determination.

How do I know if I am already in compliance?

If you are currently eligible for commodity, conservation, or disaster programs administered by FSA and the USDA, you are in compliance for crop insurance subsidy purposes.  If you are unsure if you are eligible for commodity, conservation, or disaster programs, you may contact your local USDA service center.

Can I obtain crop insurance if I do not file the proper documentation and/or am not in compliance?

Yes, although you will pay the full crop insurance premium.

I do not grow annual crops; I insure only livestock and pasture.  Must I still file a certificate of compliance?

Yes.  To be eligible for any crop insurance premium subsidy, you must have a completed and signed form AD-1026 on file with the Farm Service Agency by June 1, 2015.

There are more technical questions and answers posted on the RMA FAQ.  Feel free to take a look at the FAQs and if you have further questions, you are welcome to contact us!

What’s in the Farm Bill for Beginning Farmers?

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This post does not promise to be a comprehensive review of all the new programs and funding in the new Farm Bill.  Rather, it is a short review for you to begin to think about ways in which you can potentially use some new programs or additional funding in the Farm Bill for your own operation.  (For a thorough review of the beginning farmer initiatives, click here.)

So what’s in there?

  • Additional funding for beginning farmer and rancher training and outreach programs.  This website and program is funded via the Beginning Farmer and Rancher Development Program.  That program has received additional funding with a new emphasis on military veteran farmers.
  • Enhanced premium subsidies for crop insurance.  The enhanced subsidy of 10 percent points is only for a beginning farmer in the first five years of his/her farming career.
  • The Farm Service Agency’s microloan program becomes permanent.  For beginning and military veteran farmers, microloans will no longer have a term limit.
  • Additionally, the FSA will continue to prioritize beginning farmers in its direct and guaranteed farm ownership and operating loan programs.
  • NRCS’ EQIP program will continue to cost-share with beginning, limited resource, and socially disadvantaged farmers.  Additionally, while a farmer can current receive up to 30% of a project’s cost in advance, the new farm bill increases the possible cost-share to 50%.
  • Land access is obviously an important topic and there are some new initiatives for beginning farmers.  The FSA Down Payment Loan Program increases the value of land eligible from $500,000 to $667,000. A new Agricultural Conservation Easement Program, per the Land Trust Alliance:

The Agricultural Lands Easement program (ALE) combines the Farm and Ranch Lands Protection Program (FRPP) and Grassland Reserve Program (GRP). ALE is part of the larger Agricultural Conservation Easement Program (ACEP), which also contains the former Wetlands Reserve Program (WRP).

  • There are some additional provisions, such as conservation funding and a return of the Transition Incentive Program (with an increase in funding) administered by the FSA.  There are also some clarifications within the Value Added Producer program defining beginning farmer status in multi-applicant applications.

Overall, there are some interesting opportunities for beginning farmers and ranchers in the new Farm Bill.  As the new programs, additional funding, and more details become available, we’ll know more about how to maximize use of the programs for specific types of operations.  But as of now, there appears to be a significant amount of promise in the new Farm Bill for beginning farmers and ranchers, socially disadvantaged farmers, and veteran farmers.

 

What is EQIP?

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If you have an interest in soil, water, and wildlife conservation, Nebraska NRCS is now accepting applications for its EQIP program.

What is EQIP?

EQIP stands for Environmental Quality Incentives Program.  It is a voluntary program designed to assist owners of land in agriculture or forest production in soil, water, and wildlife conservation.  The owner of the land enters into a contract with a maximum term of ten years (although most are three to four years); the contracts provide financial assistance via cost-sharing to plan and implement conservation practices that are appropriate for the land and the owner’s conservation goals.

How does EQIP work?

EQIP applications are subject to a competitive process, in which the applications are ranked.  Nebraska offers special incentives for water conservation in the Ogalalla Aquifer, energy conservation, and conversion to organic production.  How the ranking is determined varies by state.

Does EQIP assist beginning farmers and ranchers?

Absolutely.  In fact, if all other application requirements are met, beginning farmers, socially-disadvantaged farmers, and limited-resource farmers may receive greater financial assistance of 25% above the applicable cost-share percentage.  What this means is if a resource practice has a cost-share of 50%, a beginning farmer or rancher will receive 75% cost-share from EQIP.

Additionally, five percent of EQIP funding is set aside for beginning farmers and ranchers and another five percent is set aside for socially disadvantaged farmers and ranchers.

Can I only apply once?

No.  As long as you meet the eligibility criteria, you may continue to apply for EQIP funds.

Can I receive unlimited monetary assistance?

Smart question but the answer is no.  Payments are limited to $300,000 for all contracts entered into during a six year period.  Payments for technical assistance are excluded from the $300,000 limitation.  Further, payments for organic production may not exceed $20,000 per year or $80,000 during any six year period.

If NRCS determines your project has special environmental significance, an applicant may petition the NRCS Chief for the payment limitation to be raised to $450,000.

When are applications due?

Nebraska applications can be accepted at any time but ranking for applications on hand will begin on November 15, 2013.  A second round of ranking has a cut-off date of January 17, 2014.