Conservation Reserve Program - 18th sign-up, Mayer Nov. 1998

AgDM newsletter article, November 1998

Conservation Reserve Program – 18^th sign-up

by Ralph Mayer, Extension Farm Management Specialist, 515-842-2014, mayer@iastate.edu

The next general Conservation Reserve Program (CRP) sign-up is scheduled for October 26 through December 11, 1998 at county Farm Service Agency offices. Contracts for accepted offers will begin on October 1, 1999. The sign-up will be on a competitive process.

Offers on tracts may be divided between the general sign-up and the continuous sign-up as some of the land eligible for the general sign-up may be eligible for the continuous sign-up as well. The continuous sign-up often pays more as some practices have a bonus payment.

Environmental Benefits Index

Offers will be accepted based on a score determined by the Environmental Benefits Index (EBI). Iowans will compete with landowners on a nationwide basis. Offers were accepted for the 15^th sign-up (spring 1997) with 259 or more points and in the 16^th sign-up (fall 1997) with 247 or more points.

The EBI is based on seven factors. They include:

wildlife habitat cover,

water quality benefits,

soil erosion control benefits,

enrolling land that is in a priority area, and

Influence the decision

Of the total of 435 possible points, landowners can have some impact over about 200. Areas where a landowner can influence the point score are discussed below.

Wildlife habitat cover
There are five basic choices for habitat cover. Your cover choice determines the points you receive.

Planting just one or two species of introduced grasses like smooth brome grass, orchard grass, redtop, or timothy will earn 10 points.

Planting one, two, or three native grass species – big bluestem, indian grass, switch grass, little bluestem, sideoats gramma or Canada wild rye will earn 20 points.

Planting one or two species of introduced grasses and one legume or forb* with a minimum of 50 percent grasses and 20 percent legumes or forbs will earn 30 points.

Planting a mixture of four species containing at least two introduced grasses and one species of legume or forb with a minimum of 50 percent grasses and 20 percent legumes or forbs receives 40 points.

Planting a mixture of four species containing at least two native grasses and one species of legume, forb or shrub with a minimum of 50 percent grasses and 20 percent legumes or forbs will earn 40 points.

Planting any mixture of at least five species containing at least three native grasses and one species of legume, forb, or shrub with a minimum of 50 percent grasses and 20 percent legumes or forbs receives 50 points.

Soil erosion control benefits
Land with more erosion potential – higher erosion index (EI) scores higher. The range is from zero points for an EI of three or less to 100 points for an EI of 21 or greater. The EI is based on soil type, slope length and slope steepness, and climate. Carefully evaluating which parcels to offer can significantly impact total EBI points.

Enduring benefits
Landowners can get points for enduring benefits for planting trees based on the acres of trees planted. Points are based on the cover and then weighted against the offered acres. Up to 50 points may be obtained for this practice.

Cost
When you make an offer, you find out the maximum rental rate possible for the offer. You will receive one point for every $1 under the rental cap up to $15. After all offers are made, additional points may be given to landowners who offer land at a rental rate of more than $15 below the maximum. You can also receive 10 points by declining cost share.

Key decisions

Key decisions a landowner must consider in offering land for enrollment in CRP are:

Which fields will I offer? The higher the average EI score, the more points you receive.

Do I offer some land in continuous sign-up and the rest in general sign-up? Some land eligible for the continuous sign-up may not score high on an EI basis. By splitting your offer, you may improve your changes of acceptance in the general sign-up, plus potentially getting a higher payment for acres enrolled under the continuous sign-up.

Will I accept less than the rental rate cap for payment? Budgeting out your anticipated returns from cropping the land can provide insight into what rate you may offer land for CRP and still equal or exceed anticipated returns from farming the land over the life of the CRP contract.

Do I want cost share? Cost share is a one time benefit which should be amortized over the life of the contract. Ten points are given for declining cost share.

What will I agree to plant for cover? Planting a larger variety of grasses, legumes, forbs*, or shrubs will gain more EBI points.

Answers to these questions will require investigation. Therefore, it is to your benefit to apply early in the sign-up period in order to have adequate time to obtain the needed answers. Each of these decisions impacts your total EBI score and likelihood of acceptance.

* A forb is basically any broadleaf (wildflower) plant which may or may not be a legume. For CRP purposes it must also be a native plant. NRCS has a list of approved native broadleaf plants which meet the definition.

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Conservation Reserve Program – 18th sign-up

Conservation Reserve Program – 18^th sign-up