Conservation Reserve Program Essay

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The c onse rvation re se rv e program (CRP), run through the office of the U.S. Department of Agriculture’s Farm Service Agency, was first established in the Farm Security Act of 1985. This voluntary program aims to promote sustained land and soil conservation efforts by private agricultural land holders by retiring highly erodible or environmentally sensitive farmland from active crop production for a period of 10-15 years. In exchange, landowners are provided annual rents. By retiring land from active crop cultivation, the program’s objectives are to help stem the rate of soil loss and erosion, reduce nutrient runoff, leaching, and sedimentation into streams and rivers, improve water quality, and enhance wildlife habitat conditions by planting more appropriate grasses, trees or cover crops. As of 2005, nearly 424,000 farmers across the United States, along with approximately 35 million acres were participating in this program.

Landowners may sign up for CRP during specified time windows, and to be eligible for enrollment, must have owned or operated the land parcel for at least a year prior to signing up for the program. Additionally, the land must have been planted with an agricultural commodity at least four out of the previous six years. Federal aid through the program compensates landowners with annual rental payments for land under long-term conservation contracts. Rental payments are calculated based on local soil productivity and market conditions. Furthermore, a 50 percent cost-share program helps landowners who wish to plant approved cover such as grasses, trees or other alternatives on their land to improve soil, water, and habitat conditions. Several federal, state and local agencies, including the Natural Resources Conservation Service, the U.S. Department of Agriculture’s Extension Service, and state forestry agencies provide technical support for the program, while the Farm Service Agency is responsible for overall administration.

More recently, the Conservation Reserve Enhancement Program (CREP), an offshoot of CRP implemented with the 1996 Federal Agriculture Improvement and Reform Act, has bolstered federal, state, and local stakeholder partnerships in targeting agriculture related conservation efforts. While similar to CRP in many ways, CREP differs in that it is limited to specific geographic areas with high-priority environmental concerns, requires measurable environmental outcomes and must involve cost-share between federal and state funds.

There has been some concern about the economic implications of CRP on local communities. Farmland retired from production will have an impact on the demand for agricultural and allied services, including those providing farm inputs and related agricultural processing services. Likewise, there is the possibility for declines in local agricultural labor markets as well. Initial studies suggest that CRP’s economic impacts vary geographically; and while in many cases the economic impact might be minimal, smaller rural counties that serve as agricultural service hubs might face more acute conditions. All the same, advocates of CRP have argued that the longterm environmental benefits of this program would positively influence long-term economic security. The most recent Farm Security and Rural Investment Act of 2002, which extends funding for agricultural and rural development programs through 2007, reaffirmed CRP funding and its objectives.

Bibliography:

  • P.D. Sullivan, L. Hellerstein, R. Hansen, S. Johansson, R. Koenig, W. Lubowski, D. McBride, M. McGranahan, S. Roberts, S. Vogel, and S. Bucholtz, “The Conservation Reserve Program: Economic Implications for Rural America,” Agricultural Economic Report No. AER834 (Economic Research Service, USDA, 2004).

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