Agricultural Act of 2014 (The 2014 Farm Bill) Title II Conservation

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1 Agricultural Act of 2014 (The 2014 Farm Bill) Title II Conservation Subtitle A Conservation Reserve Program The CRP is a land conservation program administered by the Farm Service Agency. In exchange for a yearly rental payment, farmers enrolled in the program agree to remove environmentally sensitive land from agricultural production and plant species that will improve environmental health and quality. Contracts for land enrolled in CRP are years in length. The long-term goal of the program is to re-establish valuable land cover to help improve water quality, prevent soil erosion, and reduce loss of wildlife habitat. Section 2001 Extension and Enrollment Requirements Extends CRP through 2018 Caps enrollment at: o FY14 27,500,000 acres o FY15 26,000,000 acres o FY16 25,000,000 acres o FY17 24,000,000 acres o FY18 24,000,000 acres Section 2002 Farmable Wetland Program Extends through 2018 Decreases acreage limitation from 1,000,000 to 750,000 Section 2003 Duties of Owners and Operators Requires that conservation plans be developed and carried out during the duration of the contract The plan should detail conservation measures and practices and the commercial use, if any, that is permitted on the land Section 2004 Duties of the Secretary Permits certain commercial activities, if identified in the conservation plan and approved by the Secretary, including: o Harvesting, grazing, etc., in response to drought, flood or other emergency. o Managed harvesting (reduction of not less than 25% of annual rental rate) o Installation of wind turbines o Vegetative buffer practices o Grazing by livestock of a beginner farmer (restrictions apply) Authorizes certain activities on grasslands Section 2005 Payments Authorizes payments and incentives from the Secretary to producers Sets schedule and limits to payments made to producers Section 2006 Contract Requirements Outlines requirements of transition option and early termination by producer Page 1 of 5

2 Section 2007 Conversion of Land Subject to Contract to Other Conserving Uses Changes to program to not affect current contracts signed before enactment Allows producers the opportunity to update contracts, as determined by the Secretary Subtitle B Conservation Stewardship Program The CSP is a voluntary conservation program that encourages producers to address resource concerns in a comprehensive manner by undertaking additional conservation activities and improving, maintaining, and managing existing conservation activities. Through the CSP, NRCS will provide financial and technical assistance to eligible producers to conserve and enhance soil, water, air, plants, animals, and related natural resources on their land. Eligible lands include privately owned cropland, grassland, improved pastureland, nonindustrial private forestland, agricultural land under the jurisdiction of an Indian tribe, and other private agricultural land (including cropped woodland, marshes, and agricultural land used for the production of livestock) on which participants can address resource concerns related to agricultural production. Section 2101 Conservation Stewardship Program Defined eligible practices, producers and land Extends program through 2018 Eligibility of stewardship contracts o Must meet or exceed stewardship threshold for at least two priority resource concerns o Meet or exceed stewardship threshold for at least one additional priority resource concern by the end of the contract Outlines contract provisions (five years in duration) Subtitle C Environmental Quality Incentives Program EQIP is a voluntary program that provides financial and technical assistance to agricultural producers through contracts up to a maximum term of ten years in length. These contracts provide financial assistance to help plan and implement conservation practices that address natural resource concerns and for opportunities to improve soil, water, plant, animal, air and related resources on agricultural land and non-industrial private forestland. In addition, a purpose of EQIP is to help producers meet Federal, State, Tribal and local environmental regulations. Section 2201 Purposes Adds developing and improving wildlife habitat to the purposes of EQIP Section 2202 Definitions No large changes Section 2203 Establishment and Administration Authorizes through 2018 Contract terms may not exceed more than ten years Identifies eligible areas: o Soil health o Water quality and quantity improvement o Nutrient management o Pest management Page 2 of 5

3 o Air quality improvement o Wildlife habitat development, including pollinator habitat o Invasive species management Advance payments not more than 50% of amount determined may be provided in advance for the purchase of materials of contracting Allocation of funding: o At least 60% carve-out for practices related to livestock production o At least 5% carve-out for practices benefiting wildlife habitat (old Wildlife Habitat Incentives Program is now part of EQIP) specifically includes habitat on pivot corners and other irregular areas of a field. Section 2204 Evaluation of Applications No major changes Section 2205 Duties of Producers No major changes Section 2206 Limitation on Payments Caps aggregate payment of $450,000 for all contracts during FY14-18 per person or legal entity Section 2207 Conservation Innovation Grants and Payments Adds that CIGs should facilitate on-farm conservation research and demonstration activities and pilot testing of new technologies or innovative conservation practices Decreases funding from $37,500,000 per fiscal year, to $25,000,000 per fiscal year through FY18 Adds a requirement for the Secretary to report to Congress on the status of projects awarded, including funding, results, and how project findings, technologies, etc. have been incorporated into ag practices Section 2208 Effect on Existing Contracts Nothing included in this legislation affects contracts signed before date enacted Subtitle D Agricultural Conservation Easement Program New program that combines and coordinates the wetlands reserve program, the grassland reserve program and the farmland protection program. Goals are to restore, protect and enhance wetlands on eligible land; protect the agricultural use and future viability, and related conservation values, of eligible land by limiting nonagricultural uses of that land; and protect grazing uses and related conservation values by restoring and conserving eligible land. Defines ag land easement as eligible land that o Is conveyed for the purpose of protecting natural resources and the ag nature of the land; and o Permits the landowner the right to continue ag production and related uses subject to an ag land easement plan, as approved by the secretary Subtitle E Regional Conservation Partnership Program New program that streamlines the following programs: agricultural water enhancement program; Chesapeake Bay Watershed program; cooperative conservation partnership initiative; and the Great Lakes basin program. The RCPP also furthers the conservation, restoration and Page 3 of 5

4 sustainable sue of soil, water, wildlife, and related natural resources on eligible land on a regional or watershed scale. Establishment implement eligible activities through partnership agreements with eligible partners and contracts with producers Defines eligible activity as the following: o Water quality restoration or enhancement projects, including nutrient management and sediment reduction o Water quantity conservation, restoration or enhancement projects relating to surface water and groundwater resources (including conversion to less waterintensive commodities or dryland; or irrigation system improvement and irrigation efficiency enhancement) o Drought mitigation o Flood prevention o Water retention o Air quality improvement o Habitat conservation, restoration and enhancement o Erosion control and sediment reduction o Forest restoration Eligible partners: o Ag or silvicultural producer association or group of producers o State or unit of local government o Indian tribe o Farmer coop o Water district, irrigation district, rural water district or association, or other organization with specific water delivery authority to producers on ag land o Municipal water or wastewater treatment entity o Institution of higher education o Organization or entity with a established history of working cooperatively with producers on agricultural land, as determined by the Secretary Partnership agreements should not exceed five years In states where irrigation has not been used significantly for ag purposes, as determined by the Secretary, the Secretary shall not limit eligibility under section 1271B (Regional Conservation Partnership Program) or this section based on prior irrigation history Priority given to applications that assist producers in meeting or avoiding the need for a natural resource regulatory requirement; high percentage of producers in the area to be covered by the agreement; significantly leverage non-federal financial and technical resources and coordinate with other local, State and national efforts; deliver high percentages of applied conservation to address conservation priorities; or provide innovation in conservation methods and delivery, including outcome-based performance measures Funding Secretary shall use $100,000,000 of the funds of the Commodity Credit Corporation for each of the fiscal years 2014 through 2018 Critical Conservation Areas defined as: o Multiple states with significant ag production o Covered by an existing regional, state, binational or multistate agreement or plan that has established objectives, goals and work plans o Would benefit from water quality improvement (reducing erosion, sediment control, nutrient management) o Would benefit from water quantity improvement (including groundwater and surface water or a need to promote water retention or flood prevention) Page 4 of 5

5 Contains producers that need assistance in meeting or avoiding the need for a natural resource regulatory requirement Critical conservation area designations expire after five years. Subtitle F Other Conservation Programs Section 2501 Conservation of Private Grazing Land Extends through 2018 Section 2502 Grassroots Source Water Protection Program Authorizes funding at $20,000,000 for each of the fiscal years Section 2503 Voluntary Public Access and Habitat Incentive Program Authorizes funding at $40,000,000 for the period of fiscal years Section 2504 Agriculture Conservation Experienced Services Program Excludes funds made available for the CRP to be used to carry out the ACES program Section 2505 Small Watershed Rehabilitation Program Authorizes funding at $250,000,000 for FY2014 to be made available until expended Section 2506 Emergency Watershed Protection Program Modifies Secretary s consideration requirements to terminate a floodplain easement Section 2507 Terminal Lakes Authorizes $25,000,000 to remain available until expended After enacted, Secretary shall transfer $150,000,000 from the CCC to the Bureau of Reclamation Water and Related Resources account Section 2508 Soil and Water Resources Conservation Adds Tribal to list of eligible areas. Subtitle G Funding and Administration Section 2601 Funding Conservation Reserve Program $10,000,000 for the period of fiscal years to provide payments under section 1234 (c) $33,000,000 for the period of fiscal years to carry out section 1235(f) Agricultural Conservation Easement Program FY14 - $400,000,000 FY15 - $425,000,000 FY16 - $450,000,000 FY17 - $500,000,000 FY18 - $250,000,000 Environmental Quality Incentives Program FY14 - $1.35 billion FY15 - $1.6 billion FY16 - $1.65 billion FY17 - $1.65 billion FY18 - $1.75 billion Page 5 of 5