Title II
Conservation

Land retirement, including CRP, CREP, the Wetland Pilot Program, and WRP.

Maximum acreage is increased to 39.2 million acres.

Land was eligible for CRP enrollment if it was cropped in 2 of past 5 years and met 1 or more of the following criteria:
• Had an erodibility index (EI) of 8 or higher;
• Was considered a cropped wetland;
• Was associated with or surrounding noncropped wetlands;
• Was devoted to a highly beneficial environmental practice (e.g., filter strips);
• Was subject to scour erosion;
• Was located in national or State CRP conservation priority areas.
• Was marginal pastureland in riparian areas.

Certain marginal pastureland that was enrolled in the Water Bank Program is also eligible.

Eligibility changes:
• Highly erodible land must have been cropped in 4 of the 6 years prior to 2002.
• Land under expiring contracts is automatically eligible to be considered for re-enrollment.
• Contracts expiring during 2002 can be extended by 1 year.
• Requires existing covers be retained, if feasible, when expiring contracts are re-enrolled.

Requires an equitable balance among conservation purposes of soil erosion control, water quality protection, and wildlife habitat.

Haying and grazing could be permitted on CRP land during drought emergencies.

Allows managed haying and grazing (including the harvest of biomass) and placement of wind turbines, if consistent with the conservation of soil, water quality, and wildlife habitat, with commensurate reduction in payment.

Requires study on economic effects of CRP enrollment.

Wetland acres are to be enrolled through a continuous sign-up similar to that for other high-priority conservation practices. Payments are to be commensurate with those provided to landowners who enroll filter strips in CRP.

Producers may enroll entire fields as buffers through the continuous sign-up when more than 50% of the field is eligible (through continuous sign-up) and farming is infeasible on the remainder of the field. Payments on the remaining acreage are limited to general sign-up rates.

WRP area was capped at 1.075 million acres.

Maximum acreage cap is increased to 2.275 million acres. The Secretary is required, to the extent practicable, to enroll 250,000 acres per calendar year.

Working lands, including EQIP, CSP, and other programs providing assistance on lands in production.

Mandates Commodity Credit Corporation (CCC) funding of:
• $400 million in fiscal year (FY) 2002,
• $700 million in FY 2003,
• $1.0 billion in FY 2004,
• $1.2 billion in each of FY 2005 and 2006, and
• $1.3 billion in FY 2007.

Removes animal unit cap for cost-share eligibility.

Evaluation of contract offers based on:
• location in conservation priority area (CPA);
• maximization of environmental benefits per dollar of program expenditure.

Evaluation of contract offers based on:
• use of cost-effective conservation practices;
• use of practices that address national priorities;
• optimization of environmental benefits is a purpose of the program.

CPAs are no longer used. Bidding down is eliminated, i.e., for applications with comparable environmental values, the Secretary cannot select one applicant over another only because of lower cost.

Retains requirement to prepare a conservation plan stating intended practices and describing environmental purposes. Confined livestock feeding operations must prepare a comprehensive nutrient management plan.

No annual payment limitation. The sum of all EQIP payments to an individual or entity cannot exceed $450,000 during FY 2002-07.

Provides CCC funding, in addition to what is available for the regular EQIP program, for ground and surface water conservation, including cost share for more efficient irrigation systems. Annual funding set at:
• $25 million for FY 2002,
• $45 million for FY 2003, and
• $60 million for FY 2004-07.

An additional $50 million in CCC funding (to be made available as soon as practical) is allocated to water conservation activities in the Klamath Basin.

All agricultural land (cropland and grazing land) is eligible.
• Cropland must have been cropped in 4 of the 6 years prior to 2002.
• Lands enrolled in the CRP, WRP, and Grassland Reserve Program are not eligible.
• Forestland that is an incidental part of the agricultural operation may be included.
• Animal waste storage or treatment facilities are not eligible.

Producers can participate at 1 of 3 tiers. Higher tiers require greater conservation effort and offer greater payments. The lowest cost practices that meet conservation standards must be used.

Conservation effort:
Tier I: Producer must address at least 1 resource of concern on at least part of the agricultural operation. Contracts are for 5 years. Tier I contract renewal requires broadening scope of practices or portion of the agricultural operation covered.

Tier II: Producer must address at least 1 resource of concern on the entire operation. Contracts are for 5-10 years and can be renewed.

Tier III: Producer must fully address all resources of concern on the entire operation. Contracts are for 5-10 years and can be renewed.

Payments:
Payment is a percentage of the national average land rental for the specific land use, or another appropriate rate that ensures regional equity:
• 5% for tier I,
• 10% for tier II, and
• 15% for tier III.

Producers can also receive 75% cost sharing for adoption or maintenance of conservation practices.

The Secretary can provide enhanced payments for taking additional actions in a way that ensures regional equity for:
• implementing or maintaining practices that exceed minimum required for tier;
• addressing local conservation priorities in addition to resources of concern;
• participating in an on-farm conservation, research, demonstration, or pilot project;
• participating in a watershed or regional resource conservation plan that involves at least 75% of area producers; or
• carrying out assessment and evaluation activities relating to practices in conservation security plan.

Payment limits:
• $20,000 annually for tier I, 25% of that amount for the initial payment based on a percentage of land rent;
• $35,000 annually for tier II, 30% for initial payment; and
• $45,000 annually for tier III, 30% for initial payment.

Mandates CCC funding of:
• $15 million in FY 2002,
• $30 million in FY 2003,
• $60 million in FY 2004, and
• $85 million in each FY 2005-07.

Secretary may use up to 15% of funds in any year to augment the program's regular cost-share payments on lands enrolled for at least 15 years.

Authorized appropriations of $20-$60 million. No funds were appropriated during FY 1996-2001.

Authorizes appropriations of $60 million for each of FY 2002-07.

Expands program purposes to include encouragement of sustainable grazing systems such as year-round, rotational, or managed grazing.

1996-2001 farm legislation

2002 Farm Bill

Mandates CCC funding of:
• $50 million in FY 2002,
• $100 million in FY 2003,
• $125 million in FY 2004 and FY 2005,
• $100 million in FY 2006, and
• $97 million in FY 2007. The acreage limit is removed.

Eligible land is expanded to include land with historical and archaeological resources. Eligible land now explicitly includes cropland, rangeland, grassland, pastureland, and forestland that is part of an agricultural operation.

Eligible entities are expanded to include nonprofit organizations operated for conservation purposes.

Eligible entities can use charitable contributions from the landowner of up to 25% of the fair market value of the conservation easement.

Grassland Reserve Program (GRP) is established to assist owners, through long-term contracts or easements, in restoring grassland and conserving virgin grassland.

No similar provisions.

Provides CCC funding, for 2003-07, of up to $254 million.

Restored, improved, or natural grassland, rangeland, and pasture, including prairie can be enrolled—up to 2 million acres. Tracts must be at least 40 contiguous acres. Waivers are available for smaller parcels in cases of exceptional acreage that meets purposes of program.

Eligible grassland can be enrolled under contracts of 10, 15, 20, or 30 years or under 30-year or permanent easements (or the maximum allowed by State law). Not more than 60 percent of funds can be used for 30-year contracts or 30-year and permanent easements. Not more than 40 percent are available for 10-, 15-, and 20-year contracts.

For contracts, annual rental payments equal 75% of grazing value. Permanent easements are to be purchased at fair market value, less grazing value, while 30-year easements are to be purchased at 30% of fair market value, less grazing value. Cost sharing is up to 75% of restoration costs on restored grassland, up to 90% on virgin grassland.

Provides CCC funding, to remain available until expended, of:
• $45 million in FY 2003,
• $50 million in FY 2004,
• $55 million in FY 2005,
• $60 million in FY 2006, and
• $65 million in FY 2007.

In addition, the following amounts, to remain available until expended, are authorized to be appropriated:
• $45 million in FY 2003,
• $55 million in FY 2004,
• $65 million in FY 2005,
• $75 million in FY 2006, and
• $85 million in FY 2007.

Conservation Corridor Demonstration Program

No similar provisions.

Requires establishment of a conservation corridor demonstration program on the east side of the Chesapeake Bay in Delaware, Maryland, and Virginia. The project is to demonstrate local conservation and economic cooperation using existing USDA conservation programs. State and local partners must provide 50 percent of funding. Appropriation of such sums as necessary is authorized.

1996-2001 farm legislation

2002 Farm Bill

Partnerships and cooperation

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