Tier 2: Contracts for 5-10 years, and must address at least 1 significant resource of concern for the entire operation. Payment is computed as 10% of the “base payment”, plus no more than 75% of the cost of the implemented practice(s) (90% for beginning farmers), plus a potential incentive payment for exceeding the minimum requirements of Tier 2. Tier 2 payments are limited to $35,000 per year.

Tier 3: Contracts for 5-10 years, and must apply a resource management system that meets the appropriate nondegradation standard for all resources of concern for the entire operation. Payment is computed as 15% of the “base payment”, plus no more than 75% of the cost of the implemented practice(s) (90% for beginning farmers), plus a potential incentive payment for exceeding the minimum requirements of Tier 3. Tier 3 payments are limited to $45,000 per year.

Renewals are permitted, but Tier 1 renewals will require the adoption of additional practices on land already enrolled or an agreement to enroll new land in the program; the program essentially compels you to move up into the upper tiers. Payments for the practices are available after October 1 (the beginning of the federal fiscal year).

There are two major points of concern in the language: (1) payments are not allowed for purchase or maintenance of “equipment or a land-based structure that is not integral to a land-based practice”. Since adoption of many practices will require investment in new equipment, NAWG will ask USDA to be sure that the rules allow for payment for equipment that is integral to a land-based practice. (2) If you are participating in another program that requires conservation compliance, the CSP pays only for additional practices beyond those requirements. Costs of achieving conservation compliance are apparently not allowed.

Confidentiality: The law considers information provided to USDA to obtain technical or financial assistance as non-public information, but specifically exempts payment information from the protection. Both payment amounts and names and addresses of recipients are excluded from protection, though the law doesn’t explicitly say that they must be provided in a linked fashion. NAWG will request that the two pieces of data (producer names/addresses and payment information) be provided independently.

Administrative Reform: USDA is to prepare and present a plan to reform the administration of conservation programs by December 31, 2005. The plan is to eliminate redundancy, streamline delivery, and improve service.

ECARP: The Environmental Conservation Acreage Reserve Program (ECARP) is renamed the Comprehensive Conservation Enhancement Program (CCEP).

Conservation Reserve Program: CRP enrollment criteria appear largely unchanged from present law. The discretionary cap on CRP is raised to 39.2 million acres from the current cap of 36.4 million. Land expiring in 2002 may extend for one year . Conservation Priority Areas continue, and a pilot program for enrollment of wetlands and buffers in CRP is authorized; no state may enroll more than 100,000 acres, and not more than 1 million acres nationally may be enrolled in this pilot. Managed haying and grazing in emergencies is allowed, with the CRP payment reduced by the amount of economic gain of the haying or grazing. Wind turbine installation is permitted. CRP contracts may provide for permanent retirement of any existing cropland base and allotment history; however, when CRP land completes its contract, the Secretary is required to make an adjustment in base acres if the producer wants to enroll it in the commodity programs. Cost share of up to 50% may be provided to establish required practices. The Secretary is permitted to establish different criteria in different states. CRP annual payments are limited to $50,000.

Wetlands Reserve Program: WRP is limited to 2.275 million acres. The program seeks to obtain permanent or 30-year easements, or restoration cost share agreements. The Secretary is required, to the extent practicable, to enroll 250,000 acres per calendar year.

EQIP: EQIP can provide a 75% cost share (90% for new or limited resource farmers). Contracts can last from one year (after practices are established) up to 10 years. Payments are limited to $450,000 total over the 6-year life of the bill, or an annual average of $75,000. USDA is directed to minimize the extent of duplicate plans for activities under EQIP and other conservation programs. Conservation priority areas are eliminated. Evaluation of contract offers will be based on use of cost-effective conservation practices, use of practices that address national priorities. Funding for livestock producers is targeted at 60% of annual program funding. Commodity Credit Corporation funding is as follows: $400 million in FY 2002; $700 million in FY 2003; $1.0 billion in FY 2004; $1.2 billion in each of FY 2005 and 2006; $1.3 billion in FY 2007.

Ground and Surface Water Conservation: A program is established to conserve water, primarily targeted at irrigation systems, though it also speaks to storage of water and drought mitigation. Funds available start at $25 million in 2002, $45 million in 2003, and $60 million for 2004-2007. In addition, there is $50 million earmarked for water conservation activities in the Klamath Basin.

Grassland Reserve Program: A GRP is established with an acreage cap of 2 million acres. Enrolled parcels must make up at least 40 contiguous acres, though the Secretary can make an exception if the case warrants. The program establishes easements that would keep land in grass, but would allow for grazing by deducting the grazing value from the easement compensation.

Private Grazing Land Conservation: A program is authorized for this purpose, but it is subject to appropriations each year.

Farmland Protection Program: A program designed to purchase easements on highly erodible cropland, which would require conversion to less-intensive uses.

Technical Assistance: USDA is required to provide technical assistance either directly or through certified third party providers. The Secretary has 6 months from the date of enactment a system of certifying individuals and entities to provide technical assistance and payment schedules for the assistance.