WASHINGTON, Feb. 17, 2016 - The prospect for another year of
low commodity prices has farmers scrambling for safer revenue in the USDA’s Conservation
Reserve Program, but there’s less space than ever in the land-idling
program thanks to recent cuts by Congress.
USDA’s Farm Service Agency is now holding a general signup
for the program that pays farmers to idle environmentally sensitive land. The
deadline to enroll land is Feb. 26, and FSA Administrator Val Dolcini told Agri-Pulse that lots of applications are
being submitted and he expects the volume to rise over the next several days.
CRP contracts for about 1.6 million acres expire this fall,
but that doesn’t mean FSA will be able to enroll that many new acres. Some land
owners will be able to re-enroll acreage and new caps set by Congress have the
agency concerned about not allowing too many acres in.
“Until we know exactly how many people re-enrolled and weigh
that against the number of acres in the applications we’ve been receiving since
this general signup started, we won’t know the exact number,” Dolcini said in
an interview. “But I think that there will be more applications for
participation in the program than we have available acres for.”
Not only is there a flood of applicants, there’s less room
in the program. Congress, in a succession of cost-saving efforts, cut the CRP
from 39 million acres to 32 million in the 2008 farm bill and then made even
steeper cuts in the 2014 farm bill. The cap was staggered to cut CRP each
fiscal year, from 27.5 million acres in 2014, to 26 million in 2015, to 25
million this year and to 24 million in 2017 and 2018.
As it stands now there are 23.5 million acres enrolled and enrollment
statutorily cannot go above 24 million for the next fiscal year, which begins
Oct. 1.
But even though the FSA is very limited in the number of new
acres that it can accept, the stiff competition happening now for enrollment
means that the agency will have its pick of some of the most environmentally
sensitive land to preserve and conserve.
Declining commodity prices has farmers looking for an
“economic buffer,” and that has made CRP a very popular program, Dolcini said.
“In light of what will be a very competitive signup, the applications we’ll get
for CRP will be very, very competitive.”
When prices are high, farmers generally try to keep as much
land as possible producing corn, soybeans, wheat and other crops – including
less productive land that may be environmentally sensitive. But
conservationists want to see as many of those sensitive acres idled as
possible.
“You really do want to be targeting the most environmentally
sensitive acres,” said Greg Fogel, senior policy specialist for the National
Sustainable Agriculture Coalition.
And with futures prices so low, it will be the most marginal
land that farmers will be trying to put in CRP, said Jack Scoville, vice
president of the Chicago-based Price Futures Group.
“If you have any marginal land – and almost everybody does –
then you’re going to look at putting that land in the (CRP) and getting paid
for it as soon as you can,” Scoville said. “I expect to see a pretty sharp
increase in the use of the program.”
And that is good news for the environment, said Dolcini and
USDA Secretary Tom Vilsack.
“The Conservation Reserve Program has been and continues to be a key
piece of USDA’s conservation strategy, and with this competitive sign-up we are
encouraging applications that offer the greatest environmental protection,”
Vilsack said in a recent statement.
“The goal is to get the best acreage that we can,” Dolcini
said. “I think we’ll have some really good applications from around the country
to choose from. We’ve got a limited amount of acreage, so we’ll certainly have
to pick and choose.”
Taking the most marginal land out of production creates new
wildlife habitat, improves water quality by reducing phosphorous runoff and
reduces topsoil erosion across the country, Dolcini said. And this is some of
the land worst suited for farming, he added.
“That’s been one of the underpinnings of CRP over the
years,” Dolcini said. “It’s marginal farmland that’s highly erodible. In some
cases it might have wetlands on it. It’s not that primo Midwestern soil that
grows great crops under any condition.”
In fact, Scoville said, taking all of that poorer farmland
out of production could have the effect of actually improving the national
yield averages.
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