Conservation Programs and Agricultural Policy

The New Landscape

Bradley D. Lubben

Extension Agricultural Economist

Kansas State University

Policy and ag econ information from K-State – www.agmanager.info

USDA program information – www.usda.gov

Evolution of Conservation Programs

• From public support for agriculture…– Focus on farm income support– Conservation benefits as a side-effect

Evolution of Conservation Programs

• To public support for the environment– Focus on specific environmental/social

goals– Debate over incentives versus

regulations

Conservation Programs• Conservation Reserve Program• Wetlands Reserve Program• Environmental Quality Incentives Program• Farm and Ranch Lands Protection Program• Wildlife Habitat Incentives Program• Forest Land Enhancement Program• Grassland Reserve Program• Conservation Security Program• Other Programs

Conservation Reserve Program (CRP)

• Enrollment cap increased from 36.4 to 39.2 million acres– Regular and continuous enrollment

Wetlands Reserve Program (WRP)

• Enrollment cap increased from 1.075 to 2.275 million acres

Environmental Quality Incentives Program (EQIP)

• Funding increased from $200 million per year to $1.3 billion per year by 2007

Farm and Ranch Lands Protection Program (FRPP)

• Funding increased from $50 million for 1996-2002 to $597 million for 2002 through 2007

Wildlife Habitat Incentives Program (WHIP)

• Funding increased from $50 million for 1996-2002 to $85 million per year by 2005

Forest Land Enhancement Program (FLEP)

• Replaces FIP and SIP with funding of $100 million through 2007

Grasslands Reserve Program (GRP)

• Enrollment of up to 2 million acres of working grasslands

Conservation Security Program (CSP)

• Payments to producers for wide range of conservation practices– Spending and enrollment not limited by

legislation

Conservation Security ProgramPractices

• nutrient management• integrated pest management• water conservation• grazing, pasture, range

management• soil conservation, residue

management• invasive species management• fish & wildlife habitat &

management• air quality management• energy conservation measures• biological resource

conservation & regeneration

• contour farming• strip and cover cropping• controlled rotational grazing• resource conserving crop

rotation• conversion of portion of

cropland from soil depleting to soil conserving use

• partial field conservation practices

• native grass & prairie protection

• any other practices the Secretary determines appropriate and comparable to the other practices

Conservation Security ProgramFunding Projections

• 2002 Farm Bill– Spending estimated at $2 billion through 2011

• 2003 Budget Resolution– Spending re-estimated at $6.9 billion through 2012

• 2003 Ag Appropriations and Ag Aid– Spending limited to $3.8 billion through 2012

• 2004 Ag Appropriations (if passed)– Spending limit removed, returning to $6.9 billion

estimate through 2013– Spending in FY2004 limited to $41 million

Conservation Programs Summary

• Substantial expansion of most existing programs

– CRP and WRP enrollment caps increased– EQIP, FRPP, and WHIP funding increased– FIP and SIP consolidated into FLEP

• Promise of significant new programs– GRP implemented in FY 2003– CSP still on the way