USDA
April 1996
Farm Bill Conservation
Overview
Provisions
"-• United States Department of Agriculture
The 1996 Farm Bill's Commitment To Conservation
|he conservation provisions in the 1996 Farm Bill
will affect farmers well into the next century. The
new provisions build on the conservation gains
made by landowners over the past decade. They simplify
existing programs and create new programs to address
high priority environmental protection goals. Here is a
quick'summary of some of the key provisions:
• The new Environmental Quality Incentives Program
consolidates the functions of four existing conservation
programs into one and focuses assistance to locally-
identified conservation priority areas or areas where
agricultural improvements will help meet water quality
goals. In fiscal year 1996, $130 million will be available.
After that, the program will be funded at $200 million
annually. Funds will pay for technical assistance and
cost-sharing on conservation practices. Fifty percent of
the funds are dedicated to conservation associated with
livestock operations.
• The popular Wetlands Reserve Program and
Conservation Reserve Program are extended through
2002. Changes provide landowners more options for
protecting wetlands and highly erodible lands. In the
Wetlands Reserve Program, landowners will now be
able to choose either permanent or 30-year easements,
or restoration only cost-share agreements.
• A new Farmland Protection Program will provide up
to $35 million to help farmers preserve their land in
agriculture.The program provides assistance to states '
with existing farmland protection programs to purchase
conservation easements.
• Current Swampbuster and wetlands provisions from
the 1985 and 1990 Farm Bills were modified to provide
farmers with more flexibility to meet wetland conserva-
tion compliance requirements. Changes include expand-
ing areas where mitigation can be used, allowing
mitigation by restoration, enhancement or creation, and
changing the abandonment clause.
• The new Wildlife Habitat Incentives Program provides
$50 million over the next seven years to help landown-
ers improve wildlife habitat on private lands.
• Conservation Compliance was changed to direct USDA
employees who are providing on-site technical assistance
to notify landowners if they observe potential compliance
problems. Landowners will have up to one year to take
corrective action. County Committees are authorized to
provide relief in cases of economic hardship.
• A Rood Risk Reduction Program was established that
allows farmers who voluntarily enter into contracts to
receive payments on lands with high flood potential. In
return, participants agree to forego certain USDA program
benefits. These contract payments provide incentives to
move farming operations from frequently flooded land.
• The Emergency Watershed Protection Program was
amended to allow the purchase of Roodplain Easements,
«The new Conservation of Private Grazing Land initia-
tive offers landowners technical, educational and related
assistance on the Nation's 642 million acres of private
grazing lands.
• The National Natural Resources Conservation
Foundation is created as a nonprofit corporation to
fund research, education and demonstration projects
related to conservation.
• Membership in the State Technical Committees, the
group which provides guidance on technical standards
for conservation programs, was broadened to include
agricultural producers and others knowledgeable about
conservation.
• A new Conservation Farm Option was created for pro-
ducers of wheat, feed grains, upland cotton, and rice who
are eligible for Agriculture Market Transition Contracts.
Under this pilot program, landowners may consolidate
their CRP, WRP, and EQIP payments into one annual
payment The participants enter into a 10-year contract
and agree to adopt a conservation farm plan.
• Under the interagency Wetlands Memorandum of
Agreement, the definition of agricultural land was
expanded to include not only cropland and pastureland,
but also rangeland, native pastureland, other land used
to support livestock production, and tree farms.
Th« United Stat«s 0«parim«nt of AgncuSure (USDA) orcftSjKj discrmiwtion in tt programs on *w basis ol not. edor. n»Uon«l origin, tax. fOfigton. ag«. olsab.my. political6*6«fa •"I"*"*"
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To life- a complaint, wnts ln« Sacrctary ot Agnculturt. U.S. Oeoanment ol Agr«a«urt. Washington O.C.. 20250 or can (202) 720-7327 (vocc) or (202) 720-1127 (TOO), usu* o •" «n»-
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USDA
April 1996
Summary
Conservation
Provisions
United States Department of Agriculturs
Conservation Provisions of the
1996 Farm Bill
(HE conservation provisions of the 1996 farm
bill simplify existing conservation programs and
improve their flexibility and efficiency. The bill
also creates new programs to address high priority
environmental protection goals.
The farm bill authorizes more than $2.2 billion in
additional funding for conservation programs, extends
the Conservation Reserve Program and Wetland
Reserve Program, and creates new initiatives to
improve natural resources on America's private lands.
To qualify for market transition payments under
basic commodity programs which replace traditional
farm subsidies, farm operators must agree to abide by
Conservation Compliance and Wetlands Conservation
(Swampbuster) provisions in the 1996 farm bill.
Umbrella Program Reform
The bill reforms an existing program, the
Environmental Conservation Acreage Reserve
Program (ECARP), which encompasses the existing
Conservation Reserve Program, the new ,
Environmental Quality Incentives Program, and the
Wetland Reserve Program.
Conservation Reserve Program
The .CRP protects highly erodible'and environmentally
sensitive lands with grass, trees, and other long-term
cover.
The farm bill:
• Allows up to 36.4 million acres to be enrolled at any
one time. New enrollments can replace expired or
terminated contracts.
• Allows owners or operators who entered into a con-
tract before 1995 to terminate contracts on certain
acres after giving written notice. Contracts must have
been in effect for at least five years. Lands with high
environmental values are not eligible for early release.
• Gives the Secretary discretionary authority to offer
future early outs for CRP acres.
Environmental Quality Incentives
The Environmental Quality Incentives Program (EQIP)
is a new program which combines the functions of the
Agricultural Conservation Program, Water Quality
Incentives Program, Great Plains Conservation
• Program and the Colorado River Basin Salinity Control
Program.
EQIP is funded at $130 million in fiscal year 1996
and $200 million annually thereafter. Livestock-related
conservation practices will receive 50 percent of pro-
gram funding.
The farm bill:
• Establishes conservation priority areas where signifi-
cant water, soil, and related natural resource prob-
lems exist, in cooperation with state and federal
agencies and with the state technical committees.
• Gives higher priority to areas where state or local
governments offer financial or technical assistance,
or where agricultural improvements will help meet
water quality objectives.
• Establishes 5-to 10-year contracts to provide technical
assistance and pay up to 75 percent of the costs of
conservation practices such as manure management
systems, pest management, and erosion control.
• Defines land eligible for EQIP contracts as agricultur-
al land that poses a serious problem to soil, water, or
related resources.
• Does not allow large livestock operations (to be
defined through a public rule-making process) to be
eligible for cost-share assistance for animal waste
management facilities, but they do remain eligible for
technical assistance.
• Requires activities under the contract to be carried
out according to a conservation plan.
• Limits total cost-share and incentive payments to any
person to $10,000 annually, and to $50,000 for the
life of the contract.
• Phases in EQIP over the next six months, and then
ends the Agricultural Conservation Program,
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Colorado River Basin Salinity Control Program,
Water QuaJity Incentives Program, and the Great
Plains Conservation Program^
Wetland Reserve Program
The WRP will have an enrollment cap of 975,000
acres. Program changes provide more flexibility and
help landowners work toward a goal of no net loss of
wetlands.
The revised WRP:
• Requires that, beginning October 1,1996, one-third of
total program acres be enrolled in permanent ease-
ments, one-third in 30-year easements, and one-third
in restoration only cost-share agreements. Individuals
may choose the category for their eligible land.
• Stipulates that effective October 1,1996, no new
permanent easements may be enrolled until at least
75,000 acres of temporary easements have entered
the program.
• Provides landowners with 75 percent to 100 percent
cost-sharing for permanent easements, 50 percent to
75 percent for 30-year easements, and 50 percent to
75 percent for restoration cost-share agreements.
Cost-sharing will help pay for restoration.
Wetland Conservation (Swampbuster)
The 1996 farm bill makes several policy changes to
existing Swampbuster provisions to give farmers more
flexibility in complying with wetland conservation
requirements while protecting natural resources:.
• Expands areas where mitigation can be used. This
allows individuals to work with producers, conserva-
tion districts or other relevant entities to select the
best area for mitigating wetlands.
• Provides more options for mitigation, including
restoration, enhancement, or creation as long as
wetland functions and values are maintained.
• Encourages effective and timely use of "minimal
effect" determinations. This change allows the
National Resources Conservation Service (NRCS),
working with state technical committees, to identify
practices that have a minimal effect on the environ-
ment and put them on a "fast track."
• Stipulates that wetland conversion activities, autho-
rized by a permit issued under Section 404 of the
Clean Water Act, which make agriculture production
possible, will be accepted for farm bill purposes if
they'were adequately mitigated.
• Revises the concept of "abandonment" to ensure
that as long as land is used for agriculture, a csrtrfied
Prior Converted cropland designation remains in
effect. When done under an approved plan, landown-
ers with Farmed Wetlands (FW) and Farmed
Wetlands Pasture (FWP) may allow an area to revert
to wetland status, and convert it back to an FW or
FWP for agricultural purposes without violating the
Swampbuster provision.
• Requires wetland determinations to be certified by
NRCS. Previous wetland determinations will be certi-
fied to verify their accuracy. A certified wetland deter-
mination will remain in effect as long as the land is
used for agricultural purposes or until the owner or
operator requests a review from the Secretary.
• Provides the Secretary with the discretion to waive
penalties for ineligibility and to grant time to restore
converted wetlands.
• Provides the Secretary with authority to identify for
individual producers which programs are affected
by Swampbuster violations and how much the
penalty is. :
• Establishes a pilot program for wetland mitigation
banking in order to allow USDA to assess how well
mitigation banking works for agriculture.
Wetlands Memorandum of Agreement
The farm bill expands the definition of agricultural land
contained in the interagency Wetlands MOA to include
not only cropland and pasture land, but also tree
farms, rangeland, native pasture land, and other land
used for livestock production.
Conservation Research and Education
The farm bill creates the National Natural Resources
Conservation Foundation as a charitable nonprofit cor-
poration to fund research and educational activities
relating to conservation on private lands.
The foundation will promote innovative solutions to
conservation problems through public-private part-
nerships. It will also accept private gifts of money or
property to be used for conservation activities.
Congress has authorized $1 million annually from
1997 through 1999.
The new foundation will offer grants for research,
education, and demonstration projects. Grants will also
assist conservation districts in building resources to .
carry out local conservation programs.
The foundation will be administered by a nine-mem-
ber board of trustees appointed by the Secretary.
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Conservation Compliance
The farm bill makes several policy changes in the
operation of Conservation Compliance:
• Directs USOA employees who are providing on-site
technical assistance to work with landowners to cor-
rect an observed potential compliance problem.
Landowners will have up to one year to take correc-
tive action before a violation is reported.
• Encourages farmers to maintain records of residue
measurement, including those provided by a third
party. Where appropriate, USDA will use these mea-
surements when conducting annual status reviews to
determine erosion levels.
• Authorizes county committees to provide relief in
cases of undue economic hardship.
• Revises "good faith" to ensure penalties are com-
mensurate with violations.
NRCS Technical Guide
The farm bill requires public notice at the state level of
future changes in the NRCS technical guide that affect
Swampbuster and Conservation Compliance.
Conservation of Private Grazing Land
The grazing lands provision is a new program to
ensure technical, educational, and related assistance
is provided to landowners on the nation's 642 million
acres of private grazing lands. In fiscal year 1996, $20
million is authorized. This amount increases to $60 mil-
lion by the third year.
Farmland Protection Program
The Farmland Protection Program is a new program
under which the Secretary will join with state or local
governments to purchase conservation easements.
Based on voluntary participation, it only applies to land
which farmers want to preserve in agriculture.
The program:
• Protects between 170,000 and 340,000 acres of
farmland.
• Authorizes up to $35 million in total federal funding.
• Requires land to be subject to a pending offer from a
state or local farmland conservation program in order
to participate.
Task Force on Agricultural Air Quality
The-1996 farm bill establishes a task force on agricul-
tural air quality. The Chief of the Natural Resources
Conservation Service will chair the task force.
Flood Risk Reduction
This provision authorizes voluntary contracts that pro-
vide one lump sum payment to producers who farm
land with high flood potential. The payment will equal
95 percent of the seven-year market transition pay-
ments, and other payments to offset estimated federal
outlays on frequently flooded land.
In return, the producer agrees to comply with applic-
able wetlands and highly erodible land requirements
and to forego commodity loans, crop insurance, con-
servation program payments, and disaster payments.
Wildlife Habitat Incentives Program
This new provision will help landowners improve
wildlife habitat on private lands. The program will
have $50 million in CRP funds for wildlife habitat
improvement.
The program:
• Provides cost-sharing to landowners for developing
habitat for upland wildlife, wetland wildlife, endan-
gered species, fisheries and other wildlife.
• Provides for consulting with state technical commit-
tees to set priorities for cost-share measures and
habitat development projects.
Emergency Watershed Protection
Program Floodplain Easements
The farm bill authorizes the Secretary to purchase
floodplain easements under the Emergency
Watershed Protection Program.
State Technical Committees
State technical committees help develop technical
standards for conservation programs. The farm bill
requires public notice of meetings and expands com-
mittee membership to include representatives of non-
government organizations such as agricultural
producers, non-profit conservation organizations,
agribusiness, and experts on the economic and envi-
ronmental impacts of conservation techniques.
Conservation Farm Option
This is a pilot program for producers of wheat, feed
grains, upland cotton, and rice who are eligible for
Agriculture Market Transition Contracts. Under this pro-
gram, landowners may consolidate their CRP, WRP,
and EQIP payments into one annual payment The par-
ticipants enter into a 10-year contract and adopt a con-
servation farm plan approved by the Secretary. Initially,
$7.5 million is authorized, increasing to $62.5 million in
2002. Total authorized funding is $197.5 million. ,
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Resource Conservation and
Development Program
This program is reauthorized as is until 2002.
Forestry Incentives Program
This program is reauthorized as is until 2002.
Soil Survey ass*dF^"
The farm bill provides flexibility in determining how soil
survey information is communicated to the public.
Everglades
The farm bill supports ongoing efforts to protect the
Everglades ecosystem. This provision authorizes $200
million for restoration activities including land acquisi-
tion. Authority is also provided to sell or exchange an
additional $i 00 million in federal land to help protect •
the Everglades.
Bypass Flows on Forest Service Lands
A task force will be appointed to study the issue of
bypass flows and related water rights on national for-
est land. In the interim, there will be an 18-month
moratorium on bypass flow requirements during the
renewal of Forest Service permits for water supply
facilities.
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