USDA Release: USDA ANNOUNCES RESULTS OF CRP GENERAL SIGN-UP AND CONTRACT RE-ENROLLMENTS AND EXTENSIONS

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Link: http://www.usda.gov/2006/06/0189.xml

Ed Loyd (202) 720-4623
Jillene Johnson (202) 720-9733

USDA ANNOUNCES RESULTS OF CRP GENERAL SIGN-UP AND CONTRACT
RE-ENROLLMENTS AND EXTENSIONS

WASHINGTON, June 5, 2006 - Agriculture Deputy Secretary Chuck Conner today announced that USDA will accept one million acres offered under the Conservation Reserve Program (CRP) general sign-up and that CRP participants intend to re-enroll and extend contracts covering 13 million acres set to expire Sept. 20, 2007.

"I'm pleased to announce the selection of one million acres offered for enrollment under the Conservation Reserve Program general sign-up," said Conner.  "In addition, contracts covering 13 million of the 15.5 million acres set to expire in 2007 will be re-enrolled or extended.  This enrollment helps fulfill the President's commitment to strengthening our largest cooperative conservation partnership with farmers and ranchers."

CRP General Sign-up Results

For CRP general sign-up 33, which ran from March 27 to April 28, 2006, USDA selected 1 million acres of the 1.4 million acres offered. USDA selected the most environmentally fragile of the cropland acres offered, ranking offers based on cost and the Environmental Benefits Index (EBI) factors of soil erosion, water quality, enduring benefits, air quality and wildlife enhancement.

USDA's Farm Service Agency (FSA) ranked all offers on the same basis and considered offers with an EBI score of at least 242 as acceptable for enrollment.  The average EBI score for all offers this sign-up was 284.  FSA administers CRP on behalf of the Commodity Credit Corporation (CCC).

The average rental rate per acre is $53.44, and will provide annual rental payments of
$54 million to participants for the 1 million acres enrolled.  This additional acreage raises the total CRP acreage to 36.68 million acres.

FSA received 22,990 offers for enrollment and accepted 18,140.  Offers accepted under this sign-up will become effective on Oct. 1, 2006.

CRP offers accepted by each state are as follows:

Conservation Reserve Program General Sign-up 33
State   Number Offered  Number Accepted Acres Offered   Acres Accepted
NATIONAL        22,990  18,140  1,369,447       1,007,793
ALABAMA 251     223     9,595   8,815
ALASKA  0       0       0       0
ARKANSAS        219     198     12,114  11,301
CALIFORNIA      14      11      5,357   5,021
COLORADO        801     582     117,873 81,991
CONNECTICUT     0       0       0       0
DELAWARE        0       0       0       0
FLORIDA 31      27      1,299   1,208
GEORGIA 415     380     13,639  12,421
HAWAII  0       0       0       0
IDAHO   224     197     18,596  15,616
ILLINOIS        2,169   1,707   42,880  33,095
INDIANA 630     508     13,342  10,805
IOWA    1,891   1,590   48,742  41,102
KANSAS  2,854   2,627   220,164 201,414
KENTUCKY        284     252     7,205   6,263
LOUISIANA       72      60      5,038   4,340
MAINE   29      3       1,301   110
MARYLAND        24      17      535     267
MASSACHUSETTS   0       0       0       0
MICHIGAN        645     454     17,913  12,279
MINNESOTA       1,838   1,598   44,337  39,712
MISSISSIPPI     468     362     26,549  19,677
MISSOURI        1,111   924     51,141  42,402
MONTANA 627     285     108,544 49,327
NEBRASKA        1,427   1,207   77,577  61,363
NEVADA  0       0       0       0
NEW HAMPSHIRE   *       0       *       0
NEW JERSEY      4       *       126     *
NEW MEXICO      4       *       673     *
NEW YORK        166     88      4,330   2,277
NORTH CAROLINA  334     303     5,733   5,213
NORTH DAKOTA    1,165   559     99,361  43,080
OHIO    743     616     15,557  12,830
OKLAHOMA        521     465     43,109  37,821
OREGON  189     117     31,286  26,124
PENNSYLVANIA    39      32      1,029   847
PUERTO RICO     0       0       0       0
RHODE ISLAND    0       0       0       0
SOUTH CAROLINA  108     85      2,409   1,643
SOUTH DAKOTA    1,003   631     75,742  46,347
TENNESSEE       249     207     6,914   6,040
TEXAS   655     394     104,491 57,929
UTAH    41      31      8,575   3,984
VERMONT 0       0       0       0
VIRGINIA        212     158     3,486   2,781
WASHINGTON      615     510     102,771 86,941
WEST VIRGINIA   5       4       166     158
WISCONSIN       905     723     19,600  14,719
WYOMING 6       *       324     *
* Data withheld to avoid disclosure of individual operators.



CRP Re-enrollments and Contract Extension Results

In addition, CRP participants with land set to expire in 2007 intend to re-enroll or extend CRP contracts covering 13 million acres, almost 84 percent of the 15.5 million acres set to expire.

In 2004, President Bush directed USDA to offer re-enrollments and extensions of CRP contracts set to expire between 2007 through 2010.  FSA received more than 5,000 public comments on how to implement the President's directive.  FSA contacted almost 158,000 CRP participants with contracts scheduled to expire in 2007 beginning on Jan. 31, 2006, to determine their interest in voluntarily continuing in CRP.

FSA has posted tables showing state and county acreage enrollment data at: http://www.fsa.usda.gov/dafp/cepd/crp.htm.

FSA used the EBI at the time of enrollment to determine eligibility for CRP re-enrollments or extensions, giving additional credit for contracts within national CRP conservation priority areas.  FSA ranked individual contracts into one of five tiers based on the environmental benefits of the original EBI score.  Eligible participants ranking in the first tier (between 81-100 percent) of the EBI could re-enroll their land in new 10-year contracts.  Farmers and ranchers with wetlands in this top tier ranking were eligible for a 15-year contract.

Eligible participants ranking in the second tier (between 61-80 percent) could extend their CRP contracts for five years.  Eligible participants ranking within the third tier (between 41-60 percent) could extend their CRP contracts by four years.  Eligible participants ranking in the fourth tier (between 21-40 percent) could receive three-year extensions.  Eligible participants ranking in the bottom tier could extend their contracts by two years.

FSA also notified almost 160,000 participants with contracts expiring between 2008 and 2010 of their opportunity to re-enroll and extend.  They have until June 30, 2006, to decide.  FSA will report the intentions of those contract holders later this summer.

Before approving re-enrolled or extended contracts, FSA will review the contract to ensure that the required cover is maintained and there is compliance with other contract provisions.  In addition, participants must be able to show that they meet eligibility requirements for the new enrollment period.  In the case of re-enrollments, updated rental rates will apply.

CRP is America's largest and most effective private-lands conservation program, with over 36 million acres enrolled.  Under CRP, farmers and ranchers plant grasses and trees in crop fields and along streams.  The plantings stop soil and nutrients from washing into regional waterways and contaminating the air.  They also provide habitat for wildlife.  Over its 20-year history, CRP has amassed a wealth of benefits for the United States, at an average cost of less than $49.00 per acre annually.  Through April 2006, CRP has restored 2 million acres of wetlands and 2 million acres of buffers.  CRP effectively reduces soil erosion by 454 million tons each year.

Other CRP Initiatives

Of the 39.2 million acres authorized for CRP enrollment, CCC reserves about 3 million acres for special CRP initiatives that target the most pressing environmental needs.  The initiatives are:

·       Continuous Sign-up - protecting the most environmentally sensitive land through  ongoing enrollment;
·       Conservation Reserve Enhancement Program - targeting defined geographic areas through federal-state-private partnerships;
·       Farmable Wetlands Program - protecting certain farmed and prior converted wetlands;
·       Bottomland Hardwood Tree Initiative - planting trees that sequester greenhouse gases;
·       Presidential Quail Initiative - increasing quail habitat and populations; and
·       Wetlands Restoration Initiative - restoring playa lakes and prairie potholes.

For more information on CRP, contact your local FSA office or visit the FSA Web site at: http://www.fsa.usda.gov/dafp/cepd/default.htm.

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