Conservation Reserve Program (CRP) Sign-up 18 FAQs Release No. 0084.99 Questions & Answers Conservation Reserve Program (CRP) Sign-up 18 FAQs 1) Q: When will producers be notified whether their offers are acceptable? A: Farm Service Agency's (FSA) service centers began receiving lists of acceptable and rejected offers today, and will immediately begin notifying producers. 2) Q: What is the regional distribution of this acreage compared to the historical CRP? A: CRP Enrollment Aggregate Historical Through Region CRP Sign-Up 15 Sign-Up 16 Sign-Up 18 Sign-Up 18 Northeast 1% 1% 1% <.5% 1 Appalachian 3% 2% 2% 1% 2% Southeast 5% 3% 2% 4% 3% Delta 3% 4% 2% 4% 4% Corn Belt 15% 10% 12% 11% 13% Lake States 8% 4% 11% 10% 7% N. Plains 27% 30% 21% 30% 26% S. Plains 15% 16% 18% 14% 16% Mountain 18% 27% 21% 21% 24% Pacific 5% 4% 9% 5% 5% Note: Numbers may not add to 100% due to rounding. 3) Q: How much acreage subject to expiring CRP contracts will be re-enrolled in this sign up? A: Of the 3.5 million acres expiring September 30, 1999, about 2.2 million acres were offered and about 2 million acres will be re-enrolled. 4) Q: When will these contracts become effective? A: All contracts will become effective October 1, 1999. 5) Q: Can a 1999 crop be harvested even when normal harvest occurs after the October 1, 1999, contract effective date? A: CRP participants may harvest this year's crops even when normal harvest occurs after the October 1 contract effective date. The first year's payment is not affected by the harvest date. 6) Q: What will be the duration of CRP contracts? A: Generally, CRP contracts are for a term of 10 years. However, for land devoted to certain practices such as hardwood trees, wildlife corridors, or restoration of cropped wetlands or rare and declining habitat, contracts may be for up to 15 years, as selected by the participant. 7) Q: How were the offers selected? A: The Commodity Credit Corporation (CCC) used a competitive environmental benefits index (EBI) based on seven factors. The EBI for Sign-Up 18 was essentially unchanged from the last general sign-up. CRP offers with an EBI score of 245 or greater are considered acceptable for enrollment. Land in counties impacted by the cropland limitation may have a higher minimum EBI score. CCC selects the highest ranked offers that provide significant environmental benefits relative to cost. 8) Q: What are the EBI factors? The EBI factors were: (1) wildlife habitat cover benefits which encourage covers on contract acreage that will be most beneficial to wildlife; (2) water quality benefits from reduced erosion, runoff, and leaching; (3) on-farm benefits of reduced erosion; (4) enduring benefits; (5) air quality benefits from reduced wind erosion; (6) benefits of enrollment in conservation priority areas where enrollment would contribute to the improvement of water quality, wildlife habitat, or air quality; and (7) cost. 9) Q: Is the quality of the wildlife habitat on CRP acreage expected to be improved as a result of the new EBI-based competitive selection process? The percentage of offered acres dedicated to optimal wildlife covers through the EBI has increased from 36 percent (15th sign-up), to 67 percent (16th sign- up), and to 73 percent (18th sign-up). This process not only helps target the acreage that will provide better wildlife benefits when selecting bids for contracts, but also strongly encourages applicants to commit to establishing ideal wildlife covers in their bidding in order to increase the likelihood of bid acceptance. 10) Q: What did producers do to make their offers more competitive? A: Over 90 percent of the offers significantly enhanced wildlife cover scores by agreeing to plant mixes of grasses, shrubs or trees that are better suited for wildlife. Many producers offered to establish more enduring practices such as tree planting, wetland restoration, and rare and declining habitat restoration. Additionally, over 60 percent of the producers were awarded additional points for submitting offers below the maximum rental rate. Also, many submitted offers on only the most environmentally sensitive acreage, while returning their more productive land to crop production. 11) Q: What was different about the 18th sign-up when compared to previous sign-ups? A: A new national conservation priority area for longleaf pine was authorized for nine southeastern States. Additionally, one minor change was made to the EBI by replacing the contract-size wildlife sub-factor that may have put smaller farming operations at a competitive disadvantage with credit for creation of food plots and wetland restoration. Additional guidance was provided to ensure consistency and to simplify the water quality and enduring benefits factors. 12) Q: What are the positive factors of using the EBI? A: The EBI fosters competition, enhances cover for wildlife, encourages enduring habitat restoration protection, and provides a quantitative basis for selecting the most environmentally sensitive acres. 13) Q: What criteria were used in determining EBI cutoff levels for approving offers for acceptance during the 15th, 16th, and 18th sign-ups? Why did the EBI cutoff level change from 247 in the 16th Sign-Up to 245 in the 18th, when the weight for the cost factor was not changed? A: The EBI of all cropland that could potentially be offered over the long run is estimated based on various data sources, including the National Resources Inventory (NRI), CRP offer data from past sign-ups and projections of future economic conditions. This information is used to estimate which acres represented by NRI sample points would be likely to be offered for enrollment and simulate the EBI score of each sample point. The lowest EBI score of all the sample points that would be included in the "best" 36.4 million acres (acres with the highest EBI scores) is then determined. After each sign-up, this value is used as the suggested cutoff point. This process is designed to ensure that acreage approved in a particular sign-up would not likely displace other higher EBI scoring acres that may be offered for enrollment in the future. Other analysis is performed to assist in determining if the cutoff level suggested is reasonable and consistent with the offer data and with the need to maintain the ability to meet continuous sign-up and CREP goals. The EBI cutoff level can change for various reasons. First, the sub- components of the EBI itself may be changed from sign-up to sign-up. Secondly, the estimated EBI scores of all potential cropland may be revised as additional information is incorporated. For example, in preparation for the 18th sign-up, the wildlife component was slightly modified by removing the sub-component for field size and awarding those 5 potential points for planting of wildlife food plots and restoration of wetlands. Also the model used to simulate the EBI scores and determine the "best" 36.4 million acres was updated to reflect more current economic conditions and to incorporate additional information about farmer behavior regarding what cover types they would be likely to select. A: 14) Q: May land that was the subject of an offer and rejected for enrollment be re-offered during a later sign-up? A: Yes. Land that meets basic eligibility criteria may be offered during any CRP sign-up even if it was previously offered but not accepted The likelihood of acceptance may be increased by offering less than the maximum payment rate for the acreage, agreeing to establish more beneficial cover, or limiting the offer to only the most environmentally sensitive acreage of a particular parcel of land. 15) Q: What must be done to maintain eligibility for benefits under certain USDA programs if land coming out of CRP is not accepted in this enrollment? Must it be farmed according to a conservation plan? A: Yes, if the acreage meets the applicable highly erodible land definition, a conservation plan is required to retain eligibility for certain other USDA programs. For land returning to production, grazing, or other uses, the Natural Resources Conservation Service will develop conservation plans to help ensure that environmental gains achieved under CRP are maintained. 16) Q: If an offer for land already under a CRP contract is not acceptable, when can a producer begin preparing the CRP land for crop production? A: Beginning July 1 in the final year of the contract, CRP participants may obtain approval to begin certain land preparation activities for fall-seeded crops. For 1999, in arid areas, land preparation approved for fall-seeded crops on certain CRP acreage may begin as early as May 1, if producers agree to a reduction in their rental payment. Participants may prepare land for spring-seeded crops only with chemical burn down of cover during the summer. Beginning dates for this activity vary by region. All early land preparation activities must be applied under an approved conservation plan and approved in advance by the local FSA office. Interested participants should contact their local FSA office for details regarding early land preparation policies to ensure that they do not violate the terms and conditions of their CRP contract. 17) Q: How does enrollment of this acreage help farmers during the agriculture-sector financial crisis? A: CRP enrollment ensures a producers a steady stream of income while protecting and enhancing the soil, water, and wildlife resources of the farm. Enrollment of 30 million acres in CRP also reduces crop production, keeping prices higher than they would have been without CRP. 18) Q: When will the next general CRP sign up be held? A: It is likely that the next general sign-up will be held this fall. A future announcement will provide specific dates and provisions. However, acceptable acreage may not be as large as in recent sign-ups due to the statutory cap of 36.4 million acres, plus the number of acres reserved for continuous sign-up and the Conservation Reserve Enhancement Program (CREP). 19) Q: What is the CREP? Farmers and ranchers may participate in the CREP on certain eligible land along the Illinois River, Minnesota River, in the New York City watershed, and in Maryland, North Carolina, Oregon, and Washington. In these areas, USDA and state governments have entered into agreements targeting environmentally sensitive land and combining the resources of the Federal, State, and, in some cases, local governments. USDA is soliciting proposals from other states to use this program to involve farmers in conservation practices that improve water quality and improve wildlife habitat. 20) Q: How many offers were made in the 18th Sign-Up? A: There were 90,306 offers. 21) Q: How many acres were offered for enrollment? A: 7.1 million acres were offered. 22) Q: What kind of acreage was accepted? A: The accepted acreage includes 3.2 million acres of highly erodible land, almost 2.8 million acres of land located within conservation priority areas, over 450 thousand acres of wetlands and protective upland areas, and 217 thousand acres to be restored to rare and declining habitats. Also, bids involving over 102 thousand acres of long leaf pine habitat will be accepted. 23) Q: How many acres are enrolled overall in the CRP? A: This enrollment will bring the total acres in the CRP to 31.3 million acres on October 1, 1999. This compares to 29.8 million acres currently enrolled, of which 3.5 million acres are subject to contracts that will expire September 30, 1999. The statutory maximum number of acres that can be enrolled in the program at any one time is 36.4 million. 24) Q: When can a CRP participant begin to establish the approved cover? A: Producers with acceptable offers may begin establishing the cover immediately. However, those who establish the cover before the CRP contract is approved do so at their own risk. 25) Q: When are producers and operators scheduled to receive their first annual rental payments from land accepted this sign-up? A: Participants are scheduled to receive their first payment on or shortly after October 2, 2000. 26) Q: Could you provide a comparison of key CRP data for Sign-up 15, 16, 18 and the historical CRP? A: Key Data Historical CRP Sign-up 15 Sign-up 16 Sign-up 18 Approved Acres 36,400,000 16,800,000 5,900,000 4,987,061 Approved Offers (No.) 375,000 160,428 75,284 61,559 Payment Rate/Acre $50.00 $39.39 $45.15 $45.50 Average EI 23 16 13 11 Highly Erodible Land 28,000,000 13,532,155 4,340,440 3,228,161 (Acs) EI>15 (Acs) 13,000,000 6,531,798 1,586,902 1,082,700 Cropped Wetland (Acs) 300,000 197,500 107,722 156,373 Trees (Acs) 2,400,000 1,312,000 295,419 431,119 National Priority Area) 6,600,000 3,507,473 1,432,405 1,486,241 /1 /1 includes acres enrolled under Longleaf Pine National Conservation Priority Area. 27) Q: What will be the total enrollment in CRP on October 1, 1999, when sign-up 18 contracts become effective? A: There will be approximately 31.3 million acres enrolled in the CRP on October 1, 1999. As more acres are enrolled through continuous sign up this spring and summer, that number may increase. 28) Q: Has acreage been reserved for future CRP enrollment? A: Yes. We will reserve at least 4.3 million acres for practices covered by the continuous CRP sign-up process, CREP (federal/state enhancement agreements), and other initiatives. This figure is based upon USDA analysis of the acreage authority needed to ensure successful operation of these initiatives in the future. We will continue to monitor enrollment levels and producer interest and adjust this reserve if necessary. # NOTE: USDA news releases and media advisories are available on the Internet. Access the USDA Home Page on the World Wide Web at http://www.usda.gov Additional CRP information can be obtained from the FSA home page at http://www.fsa.usda.gov/dafp/cepd/crpinfo.htm