Funding Options Contained in the 1996 Farm Bill

Partners in Conserving America's Resources

Funding Options Contained
in the 1996 Farm Bill

For the most recent funding options provided in the 2002 Farm Bill, go to contents page for the Farmland Stewardship Program which is grew out the Panthers & Private Lands project. Also, see the Rural Lands Stewardship Program, which also grew out of this project.

Here's the original text from this page when it was created in 1997:

Prepared in by:

WILDLIFE MANAGEMENT INSTITUTE
1101 14th Street, N.W, Suite 801
Washington, D.C. 20005

EXECUTIVE SUMMARY

The Players

The Farm Bill is as much about the players as it is the programs. Wildlife managers cannot be effective at securing habitat improvements through the Farm Bill without knowing and working intimately with the responsible U.S. Department of Agriculture (USDA) agencies and other agricultural interests. To achieve lasting habitat benefits from the Farm Bill, wildlife managers must exert sustained and coordinated effort at the national, state and local levels.

National Level

Wildlife advocates were better prepared and more active in debating the development of the 1996 Farm Bill than any previous Farm Bill. This effective advocacy was rewarded with the strongest package of private-land wildlife habitat opportunities ever assembled. However, there are no guarantees for the next Farm Bill. Wildlifers must be preparing even now to wage a similar or even stronger campaign for the scheduled 2002 Farm Bill. The best advocacy tool is documented results, showing that programs are making meaningful improvements in identified priority resources. Wildlife managers then must be prepared to use these results persistently and persuasively with Congress, USDA, other conservation interests and agricultural groups.

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State Level

At the state level, the most important key for wildlife managers to get involved in the Farm Bill is to get to know and be able to work with the other state-level agriculture players -- i.e., become known as a regular player. The State Technical Committee is the logical starting point, but success will be elusive if it also is the endpoint of involvement. State-level wildlife managers must have a working relationship outside the Technical Committee meetings with the Natural Resource Conservation Service's (NRCS) State Conservationist, the Farm Service Agency's (FSA) State Director and key members of both staffs. In addition, leaders of the State Soil and Water Conservation Agency, the State Association of Conservation n Districts, the State Forestry Commission, the Cooperative Extension Service, and the State Department of Agriculture all are important players. The Natural Resource Conservation Service's Regional Conservationist and staff also are important contacts.

Many important decisions are made at the state level that affect the implementation of the Farm Bill throughout the state. For example, the Natural Resource Conservation Service's State Technical Guides are the basis for the Field Office Technical Guides that influence every conservation plan and action taken by the agency at the local level. The guides' standards and specifications for all of its practices should adequately consider wildlife needs. State ranking plans are an increasingly common way to prioritize local applications for many USDA conservation programs. Finally, wildlife managers now are in a lead position to define standards and specifications for Conservation Reserve Program (CRP) cover practices and maintenance requirements.

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Local Level

The Farm Bill hits the ground at the local level. It is arguably both the most important and most difficult arena in which wildlife managers can work effectively. Farm Service Agency District Directors and, in some states, Natural Resource Conservation Service Area Conservationists may be the most knowledgeable individuals about how consistently and effectively Farm Bill programs are being implemented among counties. The Conservation District, the Natural Resource Conservation Service District Conservationist and staff, the Farm Service Agency County Executive Director and staff, and the Farm Service Agency County Committee traditionally vie for leadership roles in local agricultural conservation. They all are critical contacts for local wildlife managers.

A new entity, the Local Working Group, quickly is rising as a leading local voice in agricultural conservation, and its membership is open to local representatives of wildlife management agencies. Local Working Groups are charged with identifying and setting local resource priorities that will become the basis for implementation of several USDA programs. In some areas, other local groups, such as watershed sponsors, and Resource Conservation and Development Councils, are active in agricultural conservation. Farm Service Agency County Committees and Conservation Districts meet regularly to evaluate program implementation and formulate changes. These meetings can be tedious but important forums.

Among the most important local opportunities and tasks is generating landowner interest in conservation programs. National programs are meaningless if landowners are not aware of them, do not understand them or choose not to participate.

The only secret to ultimate success at the local level is persistence, because progress never will be achieved immediately. The agricultural arena is rarely glamorous or fun for wildlife managers, and successes for wildlife habitat seem infrequent. Consequently, it is tempting for local wildlife managers to choose not to bother with agriculture. On the other hand, no other conservation arena offers comparable payoffs for wildlife -- and for wildlife managers who accept the challenge -- in the magnitude of potential habitat benefits. For local wildlife managers who are serious about habitat, there is little alternative but to get serious about the Farm Bill.

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Summary of Programs

The Farm Bill offers an unprecedented $2.5 billion per year menu of programs that can address every conceivable type of conservation need on agricultural land. These programs are in various stages of implementation and offer varying degrees of habitat opportunities. Every one of the programs described herein offers habitat opportunities, but each needs close involvement by wildlife managers to realize its potential.

The Conservation Farm Option is a pilot, whole-farm management program intended to foster innovation in conservation program administration and technology application. Proposals for this nontraditional, broadbrush incentive program are required only to provide some type of environmental benefits, including fish and wildlife habitat.

Conservation of Private Grazing Land is the first federal program to focus on conservation needs -- including fish and wildlife habitat -- of private pasture, hayland and range. It provides, upon request, technical and educational assistance modeled on the traditional conservation operations of the Natural Resource Conservation Service and Conservation Districts.

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The Conservation Reserve Program is a large-scale land-retirement program that establishes permanent grass or tree cover for wildlife habitat and other purposes on environmentally valuable cropland or marginal pasture for 10 or 15 years. It enrolls large acreages periodically through a traditional national sign-up, or small acreages of certain practices continuously.

The Environmental Quality Incentives Program is a land-management program that provides incentives to address conservation needs -- including fish and wildlife habitat-- on cropland or land used for livestock operations. It is a locally driven program focused on priority areas and needs.

USDA's Farm Loan Programs have authority to transfer fee-title ownership of inventory lands to conservation agencies, or to secure easements or long-term contracts for wetland and other environmental restoration and protection on suitable inventory lands or land owned or farmed by willing borrowers.

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The Flood Risk Reduction Program is a voluntary program to encourage USDA farm program participants who farm frequently flooded cropland to convert to less intensive uses of that land.

The Highly Erodible Land Conservation Compliance Program requires USDA farm program participants who farm highly erodible land to implement a soil conservation system to reduce erosion.

The National Natural Resources Conservation Foundation is a quasi-governmental, charitable, nonprofit corporation intended to catalyze and support conservation activities of USDA and its partners.

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The Resource Conservation and Development Program helps local groups plan, coordinate and carry out a wide variety of rural development and natural resource conservation activities.

Four State and Private Forestry Programs provide educational, technical, cost-share and incentive assistance to landowners to restore, manage and protect nonindustrial private forest land for forest products, wildlife habitat, open space and other environmental purposes.

The Water Bank Program is a regional wetland protection program that compensates landowners for protecting certain wetland types that are key migratory bird habitat.

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The Watershed Protection and Flood Prevention Program is a locally driven federal cost-share program to implement watershed work plans to prevent floods, control soil erosion and protect other watershed functions.

The Wetland Conservation Compliance Program, better known as "Swampbuster," is a disincentive program that ties wetland conservation strings to the voluntary receipt of publicly funded USDA farm program benefits.

The Wetlands Reserve Program is a voluntary land-retirement program that assists landowners in restoring and protecting wetlands through cost-share agreements or easements.

The Wildlife Habitat Incentives Program is a farmland management program that helps landowners plan and pay for habitat improvements in association with active farming operations.

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PROGRAMS

Conservation Farm Option
(16 USC 3839bb)

The Conservation Farm Option (CFO) is a pilot program created by Section 335 of the 1996 Farm Bill to foster and test innovation in two arenas -- program administration and application of emerging conservation technologies. The goals of CFO are conservation of soil, water and related resources, water quality protection and improvement, wetland restoration, protection and creation, wildlife habitat development and protection, and other conservation purposes. CFO is intended to be a whole-farm management program -- rather than a land-retirement program -- to integrate conservation activities and practices throughout active agriculture operations. Program regulations are in draft for CFO to commence operation soon.

CFO is funded by the Commodity Credit Corporation (CCC) and administered by the Natural Resources Conservation Service (NRCS) in cooperation with the Farm Service Agency (FSA). NRCS will supervise technical aspects of the program, as well as oversight and evaluation, while FSA will handle administrative and financial matters. Any other conservation agencies, organizations or consultants may assist in organizing projects, developing conservation plans, contributing matching money or other resources, and implementing practices. However, CFO will not provide funds to any agency, organization or entity other than individual producers.

Congress authorized specific funding levels -- increasing each year through 2002 -- to be made available from CCC, totaling $197.5 million. CFO will provide cost-share and annual incentive payments to individual producers who sign 10-year contracts. The annual CFO contract and payment will replace any Conservation Reserve Program (CRP), Wetlands Reserve Program (WRP) and Environmental Quality Incentives Program (EQIP) contracts and payments the producer may already be receiving. CFO is available to any wheat, feed grain, cooon or rice farmer who has a production flexibility contract with FSA under the Agriculture Market Transition Act (AMTA).

CFO will commence operation when an interim final rule for the program is published in the Federal Register. This notice will include all the background, guidance, application forms and scoring procedures necessary to knowledgeably submit a proposal. Individual producers and groups of producers may submit proposals, as well as organized associations or other entities on behalf of producers. CFO will offer a continuous sign-up. All proposals are submitted to the USDA national office for evaluation and selection by a national level interagency review team.

There are no restrictions on the type of proposals that may be submitted except that they must provide some type of environmental benefits. Proposals will be ranked on a variety of factors, such as project size, rate of participation, type of resource problems being addressed, types of conservation practices, innovation, cost effectiveness, partnerships, and monitoring and evaluation plans. Plans that address priority resource problems -- including wildlife habitat needs -- identified and documented by Local Working Groups (LWG) will receive preference. Producers accepted into CFO then must prepare a detailed "conservation farm plan" describing all practices and the schedule of implementation. NRCS and any other technical entity can provide technical assistance in developing the plans. On final approval by NRCS, the plan becomes the basis for the CFO contract.

CFO is designed to take a nontraditional approach to conservation. Most USDA programs provide incentives for producers to undertake predetermined categories of priority conservation practices. CFO, on the other hand, is designed to be a "broad-brush" program that is infinitely adaptable and flexible to deal with myriad identified problems at once. Because CFO's application is limited only by the imaginations of the participants and their advisors, CFO can foster many innovative conservation activities compatible with productive agricultural operations. The wildlife habitat opportunities are limitless.

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Conservation of Private Grazing Land
(16 USC 2005b)

Conservation of Private Grazing Land (CPGL), created by Section 386 of the 1996 Farm Bill, is the first-ever conservation program specifically targeted to private grazing land. The purpose is "to conserve and enhance private grazing land resources and provide related benefits to all citizens of the United States." This program, created in response to the privately sponsored "Grazing Lands Conservation Initiative," will offer landowners the opportunity and assist them to better manage their grazing lands to protect soil, conserve water, provide wildlife habitat and sustain forage production. Conserving and improving wildlife and fish habitat are among several explicit statutory goals of the program.

CPGL essentially is an educational and technical assistance program administered by the Natural Resources Conservation Service (NRCS) and modeled on that agency's traditional conservation operations. That is, technical -assistance is provided through Conservation Districts to owners of grazing la nd on request. Cost share or incentive payments, contracts and easements are not authorized. The only new authority is its grazing lands emphasis and its provision for earmarked funds in NRCS's base operating budget to add grazing specialists to strengthen the agency's expertise and outreach capability. Because this program is so similar to NRCS's existing conservation operations authority, few, if any, special regulations are needed to implement this program.

Up to $60 million per year is authorized for CPGL, to be included in NCRS's base conservation operations budget. However, these funds must be specifically appropriated by Congress on request of the Administration. Unlike those programs that are funded through the Commodity Credit Corporation (CCC), CPGL must compete for funding each year. To date, Congress has earmarked $10-15 million of existing NRCS operational funds for the grazing land program, but has not appropriated any additional funds to the agency.

There are about 640 million acres of private grazing lands in the U.S .-- nearly half of the nation's nonfederal land. Virtually all of it is eligible for federal assistance through the program. Specifically, any private, state-owned, tribally owned and any other nonfederal rangeland, pastureland, grazed forestland and hayland is eligible. The 1996 Farm Bill authorizes the creation of grazing management districts to demonstrate and promote scientifically sound grazing practices. Grazing management districts would have an associated technical advisory committee composed of ranchers, farmers and technical experts.

CPGL has vast, long-term potential to improve range and pasture grassland habitats in ways that benefit wildlife. For example, grazing specialists could convince many landowners to convert portions of tame, cool-season grass pastures to native, warm-season grasses; sustainably graze -- rather than drain -- wetlands; and manage existing forage lands more compatibly with fish and wildlife needs. It also is ideally suited to partnering with other programs, agencies or organizations that can provide cost-share or incentive funds to help implement the new technologies or management strategies. Wildlife managers can enhance the program's wildlife benefits by getting actively involved in its formation, implementation and technology.

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The Wildlife Habitat Incentives Program
(16 USC 3836a; 7 CFR Part 1470)

The Wildlife Habitat Incentives Program (WHIP) is a land-management -- rather than land-retirement -- program that helps private landowners plan and pay for wildlife habitat improvements. WHIP was created by Section 387 of the 1996 Farm Bill, to help landowners "develop upland wildlife, wetland wildlife, threatened and endangered species, fish, and other types of Wildlife habitat."

By law, WHIP is administered by the Natural Resources Conservation Service (NRCS), but is developed in conjunction with State Technical Committees, as well as other federal and state agencies and conservation partners. USDA may enter into cooperative agreements with non-USDA entities to facilitate implementation of WHIP.

WHIP provides technical and cost-share assistance, but, contrary to its name, cannot make incentive payments, under current law. WHIP is funded by money transferred from the Conservation Reserve Program (which, in turn, is funded through the Commodity Credit Corporation [CCC]), tip to a total of $50 million through the year 2002. It will provide up to 75 percent of the cost of installing and maintaining practices. The remaining 25 percent of the cost may be paid by the landowner or any other nonfederal conservation partners. Additional incentives, above the cost of installation, maybe provided by conservation partners to enhance participation.

WHIP funds are subjectively allocated among states by the NRCS national office based primarily on two factors -- NRCS state WHIP plans developed by the State Conservationist in consultation with the State Technical Committee, and national, regional and state habitat priorities. National allocations also are made with consideration for the presence and amount of matching funds and partnership involvement. The State Conservationist then distributes the state allocation to landowners with approved plans, based on priorities identified in the state plan, which may include priority areas, species or conservation practices.

Most privately owned land is eligible, providing it is not enrolled in other federal conservation programs and does not have a restrictive easement. Land need not even be in active agriculture use to be eligible for WHIP. State- and county-owned lands are eligible, but likely will be low priority for funding.

To participate in WHIP, landowners must submit an application during an announced sign-up period at the local USDA service center. Subsequently, NRCS will help the landowner prepare a Wildlife Habitat Development Plan (WHDP), in conjunction with the local Conservation District and other technical partners (as available and approved by the landowner). The WHDP includes the landowner's wildlife goals and habitat practices for meeting them, as well as installation and maintenance practices. After the sign-up period, the WHDPs are ranked by the NRCS State Conservationist according to the state WHIP plan's priorities and criteria. For the top-ranking applications that are funded, the WHDP becomes the basis of the 10-year (minimum) WHIP contract. Landowners are reimbursed by the CCC as the plan is implemented.

WHIP was conceived to promote habitat management that is compatible with active agriculture operations. However, it can be used to develop, restore or enhance virtually any habitat type, including but not limited to:

	aquatic habitats -- instream an streambank restoration;
	riparian habitats -- trees, shrubs or herbaceous vegetation;; 
	early successional habitats -- whole fields, or strips in or around
	wetlands -- restoration, enhancement or management of any type cropland;
	grasslands -- creation, renovation or management of pasture, hayland, rangeland and idle lands; and
	forests -- establishment or management.

Specific practices that are eligible for cost-share assistance are determined in advance by the State Conservationist in consultation with the State Technical Committee. Long-lasting practices that require only periodic maintenance are encouraged. Annual food lotps are not eligible for WHIP funds.