Order Code RL32940
CRS Report for Congress
Received through the CRS Web
Agriculture Conservation Programs: A Scorecard
June 3, 2005
Jeffrey Zinn
Specialist in Natural Resources Policy
Resources, Science, and Industry Division
Tadlock Cowan
Analyst in Rural and Regional Development Policy
Resources, Science, and Industry Division
Congressional Research Service { The Library of Congress

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Agriculture Conservation Programs: A Scorecard
Summary
The Natural Resources Conservation Service and the Farm Service Agency in
the U.S. Department of Agriculture currently administer 20 programs and
subprograms that are directly or indirectly available to assist producers and
landowners who wish to practice conservation on agricultural lands. The number,
scope, and overall funding of these programs have all grown with each recent farm
bill. This growth can cause confusion over which problems and conditions each
program addresses, and specific program characteristics and performance, especially
for those who are less familiar with this conservation effort. The programs are:
! Agricultural Management Assistance Program
! Conservation Operations; Technical Assistance (CTA)
! Conservation Reserve Program (CRP)
! CRP — Conservation Reserve Enhancement Program (CREP)
! CRP — Farmable Wetlands Program
! Conservation Security Program
! Emergency Conservation Program
! Emergency Watershed Program
! Environmental Quality Incentive Program (EQIP)
! EQIP — Innovative Grants
! EQIP — Ground and Surface Water Conservation
! EQIP — Klamath River Basin
! Farmland Protection Program
! Grasslands Reserve Program
! Resource Conservation and Development Program
! Watershed and Flood Prevention Operations
! Watershed Rehabilitation Program
! Watershed Surveys and Planning
! Wetland Reserve Program
! Wildlife Habitat Incentive Program
This tabular presentation provides basic information introducing each of the
programs. The information about each program includes:
!
brief program description;
!
national participation levels;
!
states with the greatest participation;
!
participation priorities specified in law;
!
FY2005 estimated spending;
!
FY2006 Administration budget request;
!
authorization expiration date;
!
backlog or other measures of continuing interest;
!
major amendments in the 2002 farm bill; and
!
statutory authority.
This report will be updated periodically.

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Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Agricultural Management Assistance Program . . . . . . . . . . . . . . . . . . . . . . . 4
Conservation Operations (CO) — Technical Assistance (CTA) . . . . . . . . . 4
Conservation Reserve Program (CRP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
CRP — Conservation Reserve Enhancement Program (CREP) . . . . . . . . . . 6
CRP — Farmable Wetlands Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Conservation Security Program (CSP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Emergency Conservation Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Emergency Watershed Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Environmental Quality Incentive Program (EQIP) . . . . . . . . . . . . . . . . . . . . 9
EQIP — Innovative Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
EQIP — Ground and Surface Water Conservation . . . . . . . . . . . . . . . . . . . 11
EQIP — Klamath River Basin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Farmland Protection Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Grasslands Reserve Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Resource Conservation and Development Program . . . . . . . . . . . . . . . . . . 13
Watershed and Flood Prevention Operations . . . . . . . . . . . . . . . . . . . . . . . . 14
Watershed Rehabilitation Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Watershed Surveys and Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Wetlands Reserve Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Wildlife Habitat Incentive Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

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Agriculture Conservation Programs:
A Scorecard
Introduction
The Natural Resources Conservation Service (NRCS) and the Farm Service
Agency (FSA) in the U.S. Department of Agriculture currently administer 20
programs and subprograms that directly or indirectly provide technical and financial
assistance to producers and landowners who wish to practice conservation on
agricultural lands.1 With each recent farm bill, enacted in 1985, 1990, 1996, and
2002, Congress has responded to the potential adverse effects of agricultural
activities on the physical landscape by increasing the number, scope, and overall
funding of conservation programs. One result of this growth is that these programs
attract much more attention from groups and individuals that had not necessarily had
an interest in conservation policy. A related result is confusion over which problems
and conditions each program addresses and specific program characteristics and
performance, especially for those less familiar with this agriculture conservation
effort. These people often ask questions about which programs may be used to
respond to a specific resource problem, why several programs appear to address a
single problem, or which agency administers a program.
All of the USDA conservation programs are voluntary. USDA provides
technical and cost share assistance to attract interest and encourage participation.
These programs protect soil, water, wildlife, and other natural resources on
agricultural lands to limit environmental impacts of production activities both on and
off the farm, while maintaining or improving production of food and fiber. Some of
these programs center on improving or restoring resources that have been degraded,
while others create conditions that will limit degradation in the future. Of the 20
programs, 16 are administered by NRCS and four are administered by FSA.
However, both agencies, as well as other agencies, mostly in USDA, work closely to
implement many of them.
All of these programs, with the exception of the Conservation Security Program
(CSP), respond to existing resource problems. Some of them address these problems
1 The number of programs can be determined in several different ways, as two of the larger
ones, the Conservation Reserve and the Environmental Quality Reserve Programs have
several subprograms, some created in legislation and others created by administrative action.
This report is limited to subprograms created by Congress. In addition to these 20 programs,
Congress has authorized a large number of other small (in terms of spending levels)
discretionary programs, usually with a specific geographic focus (examples from the 2002
farm bill include the Great Lakes and the Delmarva Peninsula), and programs that have
never been funded or implemented (examples include the Environmental Easement Program
and the Office of Agriculture Environmental Quality). These programs are not identified
or presented in this report.

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CRS-2
by paying landowners to retire land from production for multi-year periods, using
easements and long term agreements. Many programs also have a particular resource
focus, such as cropland, wetlands, or grasslands, or focus on a specific physical
condition, such as floods or drought. Others address problems by assisting producers
to install conservation practices that are designed to maintain or improve resource
conditions in ways that enhance the environmental and economic performance of a
farm. These practices may be structural (involving construction, such as a terrace or
an animal waste management facility), land management (such as contour farming
or nutrient management), or vegetative (such as filter strips or tree planting). The
CSP is different because it pays producers to maintain conservation practices that are
already in place and provides financial incentives and technical assistance to expand
on these efforts.
The Conservation Reserve Program (CRP) and the Environmental Quality
Incentives Program (EQIP) each include subprograms enacted by Congress (as well
as other initiatives based on administrative actions). For the CRP, those subprograms
are the Conservation Reserve Enhancement Program (CREP) and the Farmable
Wetlands Program. Acreage enrolled in both of these subprograms is considered to
be within the CRP, and therefore counts against the current overall program
enrollment cap of 39.2 million acres. The three EQIP subprograms address
development of innovative approaches to conservation, surface and groundwater
conservation, and water use challenges in the Klamath River basin. The innovative
grants subprogram is funded using a portion of the overall annual funding authorized
for EQIP, while the water conservation and Klamath River subprograms have
specified funding levels that are treated as being in addition to EQIP funding.
This report provides basic information about each program using a consistent
format, primarily drawn from agency budget presentations and websites. This
information should help respond to basic questions and resolve many common
sources of confusion about the purposes of the program, program participation and
policy topics. Further information about all of these programs can be found on the
NRCS website at [http://www.nrcs.usda.gov/programs/] and on the “conservation
programs” page of the FSA website at [http://www.fsa.usda.gov]; in the agency
budget notes, published in late January or early February each year; and in written
responses to questions published later each year in hearing records of the House and
Senate Agriculture Appropriations Subcommittee.
Both NRCS and FSA post extensive information on most programs on their
websites in several formats, including basic descriptions, questions and answers, and
charts, tables, and maps. Website information appears to be designed for both
program participants and others who want to learn more about the programs. The
agency budget notes, released with the Administration funding requests, provide
more detailed information about program activities and accomplishments during the
past year, and anticipated adjustments to program administration or implementation
in the next year. While the programs are listed alphabetically in this report, they are
listed by size in the table below, based on USDA’s estimated spending levels in
2005, to convey a sense of their relative magnitude. The estimated total for these 20
conservation programs in FY2005 is $5.062 billion.

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CRS-3
Program
FY05 Est.
Program
FY05 Est.
Spending
Spending
(in millions)
(in millions)
1. Conservation Reserve
$1,937
11. EQIP — Ground and Surface
$51
Program (CRP)
Water Conservation Program
2. Environmental Quality
$1,017
12. Resource Conservation &
$51
Incentives Program (EQIP)
Development Program
3. Conservation Operations;
$697
13. Wildlife Habitat Incentive
$47
Technical Assistance
Program
4. Wetland Reserve Program
$275
14. Watershed Rehabilitation
$27
Program
5. Emergency Watershed
$250
15. EQIP — Innovative Grants
$14
Program
Program
6. Conservation Security
$202
16. Agricultural Management
$14
Program
Assistance Program
7. Emergency Conservation
$150
17.EQIP — Klamath River
$8
Program
Basin
8. Grasslands Reserve Program
$128
18.Water Surveys and Planning
$7
9. Farmland Protection Program
$112
19. CRP — Conservation
Unspecified
Reserve Enhancement Program
subset of CRP
10. Watershed and Flood
$75
20. CRP — Farmable Wetlands
Unspecified
Prevention Operations
Program
subset of CRP
A majority of the programs, 14, are mandatory spending, funded through
USDA’s Commodity Credit Corporation. Congress authorizes mandatory programs
at specified funding levels each year (or acreage enrollment levels for the
Conservation Reserve, Wetlands Reserve, and Grasslands Reserve Programs). They
are funded at these levels unless Congress limits funding to a lower amount through
the appropriations or legislative process (or puts a ceiling on acreage that can be
enrolled). Discretionary programs are funded each year through the annual
appropriations process. In recent years, Congress generally has made more
significant adjustments (almost always reductions) in funding for discretionary
programs than for mandatory programs from year to year.
If one is interested in learning more about how to apply to participate any of
these programs, a good place to start is the local NRCS or FSA county offices, which
are usually co-located. For more general information about the programs over a
larger area, such as program priorities within a state, one should contact the state
office of the agency. Contact information at the state level for both agencies can be
found on the agency websites, at the addresses identified above.

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CRS-4
Programs
Agricultural Management Assistance Program
Program description
This mandatory program, administered by the NRCS, provides cost-sharing
assistance under contracts of 3 to 10 years to producers in 15 specified states
where participation in the federal crop insurance program has been historically
low. Producers use this assistance to construct or improve water management and
irrigation structures, plant trees, control soil erosion, practice integrated pest
management, practice organic farming, develop value-added processing, and enter
into futures, hedging, or options contracts to reduce production, price or revenue
risk.
National participation
Not applicable. Eligible states are: CT, DE, MD, MA, ME, NV, NH, NJ, NY, PA,
RI, UT, VT, WV, and WY.
Leading states
In FY04, 304 of the 723 active contracts were in NY. A total of $10.2 million was
spent; of this total, $1.6 million was spent in WY, $1.5 million in NY, and $1.5
million in PA, according to the FY06 budget notes.
Participation priorities
Uses listed in law (see program description), but no priorities are specified.
FY2005 spending (est.)
$14.0 million (authorized at $20 million, with spending by NRCS limited to $14
million, and the remainder going to the Risk Management Agency and the
Agriculture Marketing Service).
FY2006 Administration
$0 (authorized at $20 million).
request
Authorization expires
Permanent authorization ($10 million annually after FY07).
Backlog/interest
The FY06 budget notes identify 809 pending applications (400 in NY) to enroll
more than 66.5 million acres at a cost of $17.2 million.
Major 2002 farm bill
Designated 15 eligible states; authorized funding of $20 million annually from
amendments
FY03 through FY07, and $10 million in subsequent years.
Statutory authority
Authorized in the Agricultural Risk Protection Act of 2000, title I, §133 (PL106-
224) as §524(b) of the Federal Crop Insurance Act; amended by §2501 of the
Farm Security and Rural Investment Act of 2002 (PL107-171). (7 U.S.C. 1524).
Conservation Operations (CO) — Technical Assistance (CTA)
Program description
TA is a discretionary NRCS program. It is more than 80% of all spending in the
CO account, and funds technical support to provide conservation planning and
implementation assistance through field staff placed in almost all counties. This
assistance is provided to producers and land owners who voluntarily apply natural
resource conservation systems, consisting of one or more practices, on private and
other non-federal lands. (Other components of CO are: the Grazing Lands
Conservation Initiative, soil surveys, snow surveys, and plant material centers.)
National participation
TA was $718.4 million and 7,017 staff years in FY04, according to the FY06
budget notes. (Total CO funding was $848.0 million and 8,169 staff years.)
Leading states
No data published for the TA subset in FY04, but for total CO funding, TX
received $47.0 million, IA received $29.7 million, and MO received $24.1 million
in FY04.

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CRS-5
Participation priorities
None specified in law. The NRCS program description in the FY06 budget notes,
states, in part, “The natural resource conservation systems help control erosion,
improve water, soil, and air quality, protect farmlands and other land uses that
support wildlife habitat, and cultivate partnerships among federal, state and local
entities to implementing conservation measures.” NRCS announced in a 2/15/05
press release that national priorities in 05 are to help producers to “comply more
easily with environmental regulatory burdens” and to be consistent with the
national priorities already established for the EQIP.
FY2005 spending (est.)
$697 million.
FY2006 Administration
$626 million.
request
Authorization expires
Permanent authorization, no amount specified.
Backlog/interest
None specified.
Major 2002 farm bill
No direct changes. However, other provisions affect this program, including
amendments
retaining a cap on total funding for technical assistance provided through
mandatory programs, and allowing NRCS to approve qualified individuals and
entities, referred to as third parties, to provide some types of technical assistance.
Statutory authority
Authorized in the Soil Conservation and Domestic Allotment Act, as amended
(P.L. 74-46). (16 U.S.C. 590a-g, 16 U.S.C. 590q)
Conservation Reserve Program (CRP)
Program description
The CRP is a mandatory program administered by FSA, assisted by NRCS, that
provides annual rental payments, usually over 10 years, to producers to replace
crops on highly erodible and environmentally sensitive land with long-term
resource conserving plantings. Bids to enroll land are solicited during a limited
time period, then compared using an Environmental Benefits Index (EBI). Those
with the highest EBI scores are accepted. Imbedded in the CRP are several small
and more focused programs that bypass the general bidding process, some
established in law and others established administratively, to address specific
resource topics, including more concentrated resource problems in a portion of a
state, protection of small isolated agricultural wetlands, and improvement of
habitat for upland game birds. All lands that qualify for these subprograms are
automatically accepted.
National participation
686,971active contracts on 402,287 farms are currently enrolling more than 34.8
million acres, according to FSA’s April, 2005 monthly program summary.
Leading states
In terms of acres, the leading states are TX (3.96 million acres), MT (3.40 million
acres), and ND (3.34 million acres). In terms of contracts, the leading states are IA
(95,355 contracts), IL (69,388 contracts), and MN (50,058 contracts).
Participation priorities
None specified in law from among the many types of eligible land that are
identified. Priorities established by FSA using an EBI which rates 5 factors
(erosion, water quality, wildlife, air quality, and enduring benefits) plus cost when
deciding which bids will be accepted. The EBI has been modified from signup to
signup. States may ask the Secretary to designate conservation priority areas in
watersheds. Chesapeake Bay, Great Lakes, and Long Island Sound are specified
as possibilities because of “special environmental sensitivity.”
FY2005 spending (est.)
$1.937 billion (based on the estimated number of acres that will be enrolled).
FY2006 Administration
$2.021 billion (based on the estimated number of acres that will be enrolled).
request

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CRS-6
Authorization expires
September 30, 2007.
Backlog/interest
In the last general signup (8/30/04 - 9/24/04), FSA accepted 19,732 offers to enroll
1.19 million acres from 26,080 offers to enroll 1.67 million acres, according to
data posted on the FSA website, visited 5/12/05.
Major 2002 farm bill
Raised enrollment ceiling from 36.4 million acres to 39.2 million acres; liberalized
amendments
economic uses of enrolled lands; required that eligible land must have been planted
4 of the 6 years preceding enactment.
Statutory authority
Authorized in §1231-§1235 of the Food Security Act of 1985 (P.L.99-198);
amended by §2101 of the Farm Security and Rural Investment Act of 2002 (P.L.
107-171). (16 U.S.C. 3831-3835a)
CRP — Conservation Reserve Enhancement Program (CREP)
Program description
This subprogram of the CRP is a mandatory program administered by the FSA,
assisted by NRCS, that partners with states at their request. States propose
substate areas, such as a watershed, where environmental or resource concerns are
more concentrated and can be addressed by enrolling up to 100,000 acres. States
contribute 20% of the funding so that larger payments can be made, thereby
encouraging greater participation.
National participation
41,332 contracts on 27,582 farms have enrolling a total of 650,845 acres,
according to FSA’s April, 2005 monthly program summary.
Leading states
Currently, 26 states participate, with more than 130,000 acres enrolled in PA,
almost 110,000 acres enrolled in IL, and 83,000 acres in MN. The most contracts
are in PA (6,800), followed by IL (5,411), and MD (5,041). CREP proposals are
pending from 7 additional states, according to a map on the FSA website, visited
on 4/22/05.
Participation priorities
None specified beyond those that apply to the general CRP (see entry above).
FY2005 spending (est.)
Unspecified acreage subset of CRP.
FY2006 Administration
Unspecified acreage subset of CRP.
request
Authorization expires
September 30, 2007.
Backlog/interest
Not applicable since any eligible land can be enrolled at any time; participation has
been much higher in some states than in others, but that is due, reportedly, to how
the program is promoted.
Major 2002 farm bill
None.
amendments
Statutory authority
Authorized in §1231of the Food Security Act of 1985 (P.L.99-198); amended by
§2101 of the Farm Security and Rural Investment Act of 2002 (P.L. 107-171). (16
U.S.C. 3831)

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CRS-7
CRP — Farmable Wetlands Program
Program description
This 1 million acre subprogram of the CRP is a mandatory program administered
by the FSA, assisted by NRCS, to enroll small isolated agricultural wetlands.
Eligible wetlands must be smaller than 10 acres, with a maximum of 5 acres
eligible for payments. Eligible lands include wetlands that were cropped 3 of the
preceding 10 years, and buffers sufficient to protect them, on which the hydrology
will be restored and a vegetative cover established.
National participation
8,246 contracts on 6,695 farms have enrolled a total of 127,528 acres, according
to FSA’s April, 2005 monthly program summary.
Leading states
In terms of acres, the leading states are IA (60,632 acres), MN (28,229 acres), and
SD (21,011 acres). The largest number of contracts are in IA (3,700), followed by
MN (2,067) and SD (1,342).
Participation priorities
None specified in law.
FY2005 spending (est.)
Unspecified acreage subset of CRP.
FY2006 Administration
Unspecified acreage subset of CRP.
request
Authorization expires
September 30, 2007.
Backlog/interest
Not applicable since any eligible land can be enrolled at any time; participation
has been much higher in some states than in others, but that is due, reportedly, to
how the program is promoted.
Major 2002 farm bill
Increase overall size from 500,000 acres in 6 specified states to 1 million acre
amendments
national program, with no more than 100,000 acres in a state; in accepting
contracts, “ensure, to the maximum extent practicable, an equitable balance among
the conservation purposes of soil erosion, water quality, and wildlife habitat.”
Statutory authority
Authorized in Title XI of Agriculture and Related Agency appropriations, 2001
(P.L. 106-387) as §1231 of the Food Security Act of 1985 (P.L.99-198); amended
by §2101 of the Farm Security and Rural Investment Act of 2002 (P.L. 107-171).
(16 U.S.C. 3831)
Conservation Security Program (CSP)
Program description
This mandatory funded program administered by NRCS provides financial and
technical assistance for improvements in conserving environmental resources on
farmland that meets soil and water quality criteria standards of NRCS. CSP
supports producers who are already implementing and maintaining substantial
conservation systems to protect soil, water, air, and wildlife, or who will adopt
more sustainable systems as part of the program. The maximum annual assistance
through CSP increases with each of 3 progressive tiers of participation, each
requiring greater conservation. Only producers in specified watersheds can
participate each year. CSP was initially implemented in 18 watersheds in FY04,
and the FY05 sign-up, which closed 5/27/05, encompasses 220 watersheds.
National participation
2,188 contracts on 1.88 million acres in 18 watersheds for FY04. For FY05, 220
watersheds are eligible (185 million acres), according to data on the NRCS
website, visited on 5/13/05. The 18 watersheds eligible in FY04 are included in
the 220 watersheds in FY05.
Leading watersheds
The largest number of contracts (281) and enrolled acres (152,388) are in the Blue
(states)
Earth Watershed (IA and MN). The largest total payment ($5.173 million) is in
the Umatilla Watershed (OR).

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CRS-8
Participation priorities
None specified in law. NRCS gives a priority to watersheds where agricultural
runoff is a major source of pollution.
FY2005 spending (est.)
Spending limited to $202 million. (Current law limits total CSP spending to
$6.037 billion between FY05 and FY14.)
FY2006 Administration
$274 million.
request
Authorization expires
FY2007. Contracts may expire as late as 2013.
Backlog/interest
18 watersheds in portions of 22 states were eligible in FY04. Watersheds in the
Southwest and New England were largely excluded, as were the major agricultural
states of Florida and California. All working farmland is eligible regardless of
crop grown. An interim rule establishes a “contract limit,” capping the total
payments to not more than 15% of local land rental rates multiplied by the number
of acres enrolled for Tier I, 25% for Tier II, and 40% for Tier III. This contract
limitation could lessen participation by smaller acreage farms and farms and
ranches of any size with very low rental rates.
Major 2002 farm bill
Program initially authorized in Farm Security and Rural Investment Act of 2002.
amendments
Statutory authority
Authorized in §2001 of the Farm Security and Rural Investment Act of 2002 (P.L.
107-171) as §1238-§1238C of the Food Security Act of 1985 (P.L.99-198). (16
U.S.C. 3833-3838c)
Emergency Conservation Program
Program description
This discretionary program, administered by FSA, with technical assistance
provided by NRCS, provides emergency funding and technical assistance to
producers to rehabilitate farmland damaged by natural disasters (hurricanes,
floods, wind, and erosion are examples) by activities such as removing debris, and
implementing emergency water conservation measures in response to severe
droughts.
National participation
From FY00 through FY04, $242 million was appropriated in emergency
supplemental appropriations legislation, ranging from a high of more than $91
million in FY00 to a low of more than $22 million in FY04. Funds went to 34
states in FY04. Amounts are often earmarked to specific locations.
Leading states
In FY04, CA received $8.1 million, NC received $7.0 million, and KY received
$7.0 million, according to the FY06 budget notes. (Spending responds to the
distribution of natural disasters, and changes greatly from year to year.)
Participation priorities
None specified in law.
FY2005 spending (est.)
$150 million. (Since this program is almost always funded in emergency
supplemental appropriations legislation in response to specific natural disasters
that have occurred, additional funding is possible before 9/30/05.)
FY2006 Administration
$0.
request
Authorization expires
Permanent authorization.
Backlog/interest
Not applicable.
Major 2002 farm bill
None.
amendments

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CRS-9
Statutory authority
Authorized in the Emergency Conservation Measures (P.L. 85-88); amended by
§401 of the Agriculture Credit Act of 1978 (P.L. 95-334). (16 U.S.C. 2201-2204)
Emergency Watershed Program
Program description
This discretionary program, administered by NRCS, provides technical and
financial assistance to reduce hazards to life and property in watersheds that have
been damaged by natural disasters. Assistance includes disaster cleanup and
recovery activities, and purchasing easements in floodplains that will benefit
natural resources such as wetlands, while reducing the risk of exposure to future
natural disasters.
National participation
Appropriations have averaged $120 million annually in recent years. In FY05,
$250 million has been appropriated to date.
Leading states
In FY05 to date, FL has received $120 million, NC received $65 million, and TN
received $11million, according to the FY06 budget notes. (Spending responds to
the distribution of natural disasters, and changes greatly from year to year.)
Participation priorities
None specified in law.
FY2005 spending (est.)
Two supplementals have a appropriated a total of $354.5 million. (Since this
program is almost always funded in emergency supplemental appropriations
legislation in response to specific natural disasters that have occurred, additional
funding is possible before 9/30/05.)
FY2006 Administration
$0.
request
Authorization expires
Permanent authorization.
Backlog/interest
Not applicable.
Major 2002 farm bill
None.
amendments
Statutory authority
Authorized in the Emergency Conservation Measures (P.L. 85-88); amended by
§402 - §403 of the Agriculture Credit Act of 1978 (P.L. 95-334). (16 U.S.C.
2202-2204)
Environmental Quality Incentive Program (EQIP)
Program description
This mandatory program, administered by NRCS, provides cost share payments to
producers and land owners to plan and install structural, vegetative, and land
management practices on eligible lands to alleviate conservation problems, with
60% of the funds targeted to livestock producers. EQIP is to be administered in an
environmentally-beneficial and cost-effective manner.
National participation
In FY04, EQIP allocated $908.23 million for 46,413 contracts, according to data
on the NRCS website, visited 5/19/05.
Leading states
In FY04, the most contracts were signed in TX (6,625), followed by MS (2,796)
and OK (1,975). The largest allocation was paid to TX ($78.6 million), followed
by CA ($57.0 million) and CO ($36.9 million).

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CRS-10
Participation priorities
The law states that applications that encourage cost-effective conservation
practices or address national conservation priorities are to be given greater
consideration. Also, in determining the amount and rate of incentive payments,
practices that promote residue, nutrient, pest, invasive species or air quality
management may be accorded “great significance.”
FY2005 spending (est.)
Spending limited to $1.017 billion ($1.20 billion authorized).
FY2006 Administration
$1.0 billion for programs ($1.20 billion authorized).
request
Authorization expires
September 30, 2007.
Backlog/interest
In FY2004, 47,510 contracts were accepted and the remaining 135,394
applications went unfunded. The total eliminated cost to eliminate this backlog
would be $2.204 billion. The most unfunded contracts were submitted in TX
(18,121), followed by AR (9,403). In terms of cost, the largest amount was AR
($190 million), followed by TX ($162 million), according to information in the
FY06 budget notes.
Major 2002 farm bill
Specified that the goals of EQIP are to “promote agricultural production and
amendments
environmental quality as compatible goals, and to optimize environmental
benefits...”; allowed cost sharing with large confined livestock operations for waste
management facilities (which had previously been prohibited); limited payments to
a total of $450,000; authorized competitive innovative matching grants; allocated
60% of funding each year to practices related to livestock production.
Statutory authority
Authorized in subtitle D of Title III (§331-336) of the Federal Agriculture
Improvement and Reform Act of 1996 (P.L. 104-127) as §1240-§1240I of the
1985 Food Security Act (P.L.97-198); amended by §2301 of the Farm Security
and Rural Investment Act of 2002 (P.L. 107-171). (16 U.S.C. 3839aa - 3839aa90)
EQIP — Innovative Grants
Program description
This mandatory program, administered by NRCS, awards competitive grants to
state and local agencies, non-governmental organizations, tribes, and individuals
to implement conservation projects. Examples of eligible projects identified in the
2002 farm bill include “market systems for pollution reduction” and “innovative
conservation practices, including the storing of carbon in the soil.” FY04 was the
first year of implementation.
National participation
In FY04, 41 projects in 29 states were awarded a total of $14.3 million, according
to the FY06 budget notes. Awards for FY05 will be announced in June, according
to the NRCS website, visited 5/09/05.
Leading states
Not applicable.
Participation priorities
None specified in law.
FY2005 spending (est.)
Unspecified subset of EQIP. In FY05, up to $15 million is available nationally, up
to $5 million is available for the Chesapeake Bay watershed, and an unspecified
amount is available for state competitions in 12 pilot states and the Pacific Basin,
according to the NRCS website, visited 5/09/05.
FY2006 Administration
Unspecified subset of EQIP.
request
Authorization expires
September 30, 2007.
Backlog/interest
None identified.

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CRS-11
Major 2002 farm bill
Program initially authorized in the Farm Security and Rural Investment Act of
amendments
2002.
Statutory authority
Authorized in §2301 of the Farm Security and Rural Investment Act of 2002 (P.L.
107-171) as §1240H of the 1985 Food Security Act (P.L. 97-198). (16 U.S.C.
3839aa8)
EQIP — Ground and Surface Water Conservation
Program description
This mandatory program, administered by NRCS, funds contracts with producers
to improve irrigation and water use efficiency on irrigated cropland, and reduce
water consumption on agricultural operations in areas severely affected by
drought. This program is available only for conservation measures that “results in
a net savings in groundwater or surface water resources in the agricultural
operation...”
National participation
Not applicable. A total of 32 states located either over the high plains aquifer or
severely impacted by drought received funds to implement EQIP contracts to
“improve irrigation and water use efficiency on currently irrigated cropland.”
Leading states
No information available.
Participation priorities
None specified in law.
FY2005 spending (est.)
Spending limited to $51 million ($60 million authorized, to be in addition to
overall EQIP funding).
FY2006 Administration
$60 million ($60 million authorized).
request
Authorization expires
September 30, 2007.
Backlog/interest
None identified.
Major 2002 farm bill
Program initially authorized in Farm Security and Rural Investment Act of 2002.
amendments
Statutory authority
Authorized in §2301 of the Farm Security and Rural Investment Act of 2002 (P.L.
107-171) as §1240I of the 1985 Food Security Act (P.L. 97-198). (16 U.S.C.
3839aa9)
EQIP — Klamath River Basin
Program description
This mandatory program, administered by NRCS, focuses on improving the
efficiency of water use associated with agriculture in the Klamath River basin of
OR and CA.
National participation
Not applicable as program operates only in portions of OR and CA.
Leading states
In FY04, CA received $8.7 million and OR received $9.5 million. These funds
were used to complete irrigation management plans on 30,288 acres and to apply
conservation practices on 6,331 acres, according to the FY06 budget notes for
EQIP.
Participation priorities
None specified in law.
FY2005 spending (est.)
$8.1 million (a total of $50 million authorized, to be taken in addition to overall
EQIP funding, and “to be made available as soon as practicable”).

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CRS-12
FY2006 Administration
$8.1 million (a total of $50 million authorized).
request
Authorization expires
September 30, 2007.
Backlog/interest
None identified.
Major 2002 farm bill
Program initially authorized in the Farm Security and Rural Investment Act of
amendments
2002.
Statutory authority
Authorized in §2301 of the Farm Security and Rural Investment Act of 2002 (P.L.
107-171) as §1240I of the 1985 Food Security Act (P.L. 97-198). (16 U.S.C.
3839aa9)
Farmland Protection Program
Program description
This mandatory program, administered by NRCS and called the Farm and Ranch
Lands Protection Program by NRCS, provides funds to state, tribal, and local
governments, and non-governmental organizations to help them purchase
conservation easements from willing sellers to limit conversion of farmland to
nonagricultural uses.
National participation
From the program’s inception in 1996 through FY04, $265 million was spent to
acquire 870 easements on 177,817 acres, with an additional 959 easements on
209,621 acres pending, according to the FY06 budget notes. (The length of time
from when a land owner first offers to sell an easement to when it is recorded with
the deed to the land can be considerable.)
Leading states
The largest amount has been spent in MD ($17.7 million), followed by PA ($15.8
million), and NJ ($15.5 million). The most easements have been acquired in VT
(111), followed by MD (103) and PA (91). The largest number of acres acquired
under easement are in VT (27,911 acres), followed by PA (16,204 acres) and MD
(15,586).
Participation priorities
None specified in law.
FY2005 spending (est.)
$112 million ($125 million authorized).
FY2006 Administration
$83.5 million ($100 million authorized).
request
Authorization expires
September 30, 2007.
Backlog/interest
The FY2006 budget request states that “The demand for the program has exceeded
available funds by approximately 300 percent.” During the 2004 signup, 216
applications with a total cost of $101 million to enroll 48,488 acres went unfunded.
States with the most unfunded requests were SC (59), followed by KY (36). The
greatest cost of unfunded applications was SC ($27 million), followed by MD ($18
million). The largest number of acres were in SC (13,104), followed by NV
(8,804 acres).
Major 2002 farm bill
Expanded the list of eligible lands to include cropland, rangeland, grassland,
amendments
pastureland, incidental forest land, and archeological and historic sites; expanded
eligibility to include Indian tribes and qualified non-profit organizations.
Statutory authority
Authorized in §388 of the Federal Agriculture Improvement and Reform Act of
1996 as §1238H-§1238J of the 1985 Food Security Act (P.L. 97-198); amended
by §2503 of the Farm Security and Rural Investment Act of 2002 (P.L. 107-171)
(16 U.S.C. 3838i)

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CRS-13
Grasslands Reserve Program
Program description
This mandatory program, jointly administered by NRCS and FSA, and working
with USDA’s Forest Service, uses long-term rental agreements and easements to
help land owners and producers restore and protect grasslands while maintaining
them in a condition suitable for grazing using common management practices.
National participation
In FY04, 904 rental agreements enrolling 177,298 acres and 151 easements
enrolling 106,076 acres were approved, according to the FY06 budget notes.
Leading states
In FY04, the most applications were approved in MO (126), followed by OH (96)
and TN (84). The most acres were approved in TX (53,452 acres), followed by
OK (20,009 acres) and NM (16,676 acres).
Participation priorities
None identified in law.
FY2005 spending (est.)
Spending limited to $128.4 million (a total of 2 million acres and $254 million
through FY07).
FY2006 Administration
$0. (All authorized funds, a total of $254 million, are anticipated to have been
request
spent by the end of FY2005.)
Authorization expires
September 30, 2007.
Backlog/interest
In FY04, 10,122 applications were submitted to enroll 6.5 million acres; 1,055
applications enrolling 283,000 acres were accepted, leaving a backlog of unfunded
applications that totals more than $1.1 billion, according to the FY06 budget notes.
Major 2002 farm bill
Program initially authorized in the Farm Security and Rural Investment Act of
amendments
2002.
Statutory authority
Authorized in §2401 of the of the Farm Security and Rural Investment Act of 2002
(P.L. 107-171) as §1238N-§1238Q of the 1985 Food Security Act (P.L. 97-198).
(16 U.S.C. 3838n - 3838q)
Resource Conservation and Development Program
Program description
This discretionary program, administered by NRCS, provides support in the form
of NRCS staff coordinators, to authorized multi-county areas. Coordinators assists
state and local units of government and non-profits to develop and carry out
programs to conserve and improve natural resources and the use of land, and
improve conditions in rural America.
National participation
375 authorized areas encompass approximately 2,675 counties, more than 80% of
the national total, according to the FY06 budget notes.
Leading states
Not applicable.
Participation priorities
None specified in law.
FY2005 spending (est.)
$51.2 million.
FY2006 Administration
$25.6 million. (Administration proposes to halt coordinator support funding to
request
areas that have already received funds under this program for more than 20 years.)
Authorization expires
Permanent authorization of “such sums as are necessary.”
Backlog/interest
NRCS has yet to act on 28 pending applications encompassing 154 counties,
according to the FY06 budget notes.

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CRS-14
Major 2002 farm bill
Permanently reauthorized program, and amended it in its entirety, making
amendments
numerous, mostly minor or technical amendments.
Statutory authority
Enacted in §31 and §32 of the Bankhead-Jones Farm Tenant Act (P.L. 89-796);
Amended in its entirety in §2504 of the Farm Security and Rural Investment Act
of 2002 (P.L. 107-171). (16 U.S.C. 3451 - 3459)
Watershed and Flood Prevention Operations
Program description
This discretionary program, administered by NRCS, combines two separate
authorizations under which more than 11,000 structures have been built in more
than 1,500 active and completed projects. The P.L. 534 Flood Prevention
Operations Program authorizes 11 projects, while the P.L. 566 Small Watershed
Operations Program authorizes watershed projects generally. Projects may be
authorized for any of 8 purposes; almost all projects have flood control as an
authorized purpose. Under P.L.566, NRCS provides technical and financial
assistance to plan and install projects on private lands, in cooperation with local
sponsors, states, and other public agencies. The small watershed project costs are
shared with local partners. Projects are limited to a maximum size, including
25,000 acre feet of total capacity and 250,000 acres in extent. Projects above a
specified size require congressional committee authorization.
National participation
A total of 430 projects are active or completed under P.L. 534, and 1,671 are
active or completed under P.L. 566. These projects encompass more than 148
million acres, according to the FY06 budget notes.
Leading states
The greatest number of active and completed projects are in IA (179 projects
encompassing 3.2 million acres), followed by TX (170 projects encompassing
23.3 million acres) and MS (166 projects encompassing 8.7 million acres).
Participation priorities
None specified in law.
FY2005 spending (est.)
$74.95 million.
FY2006 Administration
$0.
request
Authorization expires
Permanent authorization, no amount specified.
Backlog/interest
NRCS identifies a total of $1.888 billion in unfunded federal commitments for
authorized projects; the greatest value of unfunded commitments are in TX ($440
million) and MS ($245 million), according to the FY06 budget notes.
Major 2002 farm bill
None.
amendments
Statutory authority
Enacted in the Flood Control Act of 1944 (P.L. 534), as amended, and the
Watershed Protection and Flood Prevention Act (P.L.83-566), as amended. (33
U.S.C. 701b-1 and 16 U.S.C. 1000, et. seq.)

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CRS-15
Watershed Rehabilitation Program
Program description
This program, with funding authorized through both discretionary and mandatory
funds and administered by NRCS, provides technical and financial assistance for
planning, design, and implementation to rehabilitate aging watershed dam projects
(including upgrading or removing dams) to communities to address health and
safety concerns. Small watershed project dams have a 50-year design life, and 264
reached or exceeded that time span by the end of 2004. By the end of 2014, this
number will exceed 3,800, according to the FY06 budget notes.
National participation
As of January, 2005, 132 projects have been funded in 21 states; 38 of these
projects have been completed, according to the FY06 budget notes.
Leading states
The greatest number of projects are in OK (26), MS (18), and TX (15); The most
completed projects are in WI (10), MS (9), and OH (7).
Participation priorities
None specified in law. The Secretary is directed to develop a system for ranking
rehabilitation requests.
FY2005 spending (est.)
$27.3 million in discretionary funding and $0 in mandatory funding ($65 million in
discretionary funding and $55 million in mandatory funding authorized).
FY2006 Administration
$15.1 in discretionary funding and $0 in mandatory funding ($75 million in
request
discretionary funding and $60 million in mandatory funding authorized).
Authorization expires
Mandatory funding, September 30, 2008; discretionary funding, September 30,
2007.
Backlog/interest
In FY05, funds were requested for 123 projects in 21 states, but only 87 of those
projects could be funded.
Major 2002 farm bill
Authorized both mandatory and discretionary funding levels each year; made
amendments
funding “no year” funding (meaning that discretionary funding is available until
spent, rather than until the end of the fiscal year for which it is appropriated, and
mandatory funding that is limited in the annual appropriations process is counted as
savings each year until it is made available).
Statutory authority
Enacted in §313 of the Grain Standards and Warehouse Improvement Act of 2000
(P.L. 106-472) as §14 of the Watershed Protection and Flood Prevention Act; as
amended by §2505 of the Farm Security and Rural Investment Act of 2002. (16
U.S.C. 1012)
Watershed Surveys and Planning
Program description
This discretionary program, administered by NRCS, funds investigations and
surveys of river basins as the basis for developing coordinated water resource
programs in upstream watersheds. Plans address ways to respond to water quality,
flooding, water and land management, and sedimentation problems, and are
prepared in cooperation with federal, state and local agencies.
National participation
In FY04, funds were provided in 39 states, according to the FY06 budget notes.
Leading states
In FY04, the greatest spending was in national headquarters ($892,000), followed
by RI ($587,000) and WY ($423,000).
Participation priorities
None specified in law. Agency priorities are stated in general terms and basically
restate the major missions of NRCS (erosion control and fish and wildlife
concerns, for example).
FY2005 spending (est.)
$7.026 million.

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CRS-16
FY2006 Adminitration
$5.141 million.
request
Authorization expires
Permanent authorization, no amount specified.
Backlog/interest
None specified.
Major 2002 farm bill
None.
amendments
Statutory authority
Enacted in §6 of the Watershed Protection and Flood Prevention Act (P.L.83-
566), as amended. (16 U.S.C. 1006-1009)
Wetlands Reserve Program
Program description
This mandatory program, administered by NRCS, funds purchase of long-term
agreements and easements (30 year and permanent) to assist land owners in
protecting and restoring wetlands. It provides technical and financial assistance,
and emphasizes restoration to original natural conditions where possible.
National participation
Through 2004, 1.63 million acres had been enrolled, with easements perfected on
1.17 million acres. In 2004, more than 189,000 acres were enrolled, at a cost of
$240.9 million, according to the FY06 budget notes.
Leading states
In 2004, 31,718 acres were enrolled in AR, 15,822 acres were enrolled in LA, and
11,936 acres were enrolled in FL. In 2004, $20.4 million was spent in AR, $19.1
million in IL, and $16.3 million in MO, according to the NRCS website, visited
5/19/05.
Participation priorities
Priority given to permanent easements over shorter terms, and to easements that
provide greater benefits in “protecting and enhancing habitat for migratory birds
and other wildlife.”
FY2005 spending (est.)
Enrollment limited to 154,500 acres, which will cost an estimated $274.5 million.
Authorized to enroll 250,000 acres annually with no annual spending limit specified
(measured in calendar years).
FY2006 Administration
Projected enrollment of 200,000 acres would cost an estimated $321.1 million.
request
Authorized to enroll 250,000 acres annually with no annual spending limit specified
(measured in calendar years).
Authorization expires
December 31, 2007.
Backlog/interest
In FY02, 3,173 unfunded easement applications would have enrolled 536,000 acres
at an estimated cost of $622 million. The most applications were from AR (357),
followed by MN (331). The most land was in FL (79,000 acres), followed by AR
(76,000 acres). The cost of the easements was greatest in FL ($90 million),
followed by AR ($ 63 million), according to the FY06 budget notes.
Major 2002 farm bill
Increased enrollment ceiling from 1.075 million acres to 2.275 million acres in
amendments
total, and 250,000 acres annually, “to the maximum extent practicable.”
Statutory authority
Enacted in §1438 of the Food, Agriculture, Conservation and Trade Act of 1990
(P.L. 101-624) as §1237 - §1237F of the 1985 Food Security Act (P.L.198);
amended by §2201-2204 of the Farm Security and Rural Investment Act of 2002.
(16 U.S.C. 3837 - 3837c)

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CRS-17
Wildlife Habitat Incentive Program
Program description
This mandatory program, administered by NRCS, provides technical and financial
assistance to eligible participants to develop upland and wetland wildlife,
threatened and endangered species, fish and other types of wetland habitat in an
environmentally beneficial and cost effective manner.
National participation
Through FY04, more than 2.8 million acres have been enrolled through 17,500
contracts. In FY04, more than $27.9 million was spent to enroll 425,000 acres
through more than 3,000 agreements, according to the NRCS website, visited
5/20/05.
Greatest participation
In FY04, the largest number of contracts were in MS (262), followed by KS (152),
and KY (142). The largest numbers of enrolled acres were in UT (111,720 acres),
TX (30,319 acres), and OK (27,707 acres). The greatest spending was in CA
($1.231 million), followed by AR ($1.129 million), and RI ($1.029 million).
Participation priorities
None specified, although the law calls for dealing with “regional issues of concern”
where possible.
FY2005 spending (est.)
Spending limited to $47 million ($85 million authorized).
FY2006 spending (prop.)
$60 million ($85 million authorized).
Authorization expires
September 30, 2007.
Backlog/interest
In FY2004, WHIP had 3,033 unfunded applications at a total cost of $10.7 million.
AR had the most unfunded applications (218), followed by IA (187). AK had the
highest cost for these applications ($2.1 million), followed by RI ($814,000),
according to the NRCS website, visited 5/20/05.
Major 2002 farm bill
Required consideration of regional wildlife issues; authorized pilot program using
amendments
up to 15% of funds to enroll land in contracts of at least 15 years.
Statutory authority
Enacted in §387 of the Federal Agriculture Improvement and Reform Act of 1996
(P.L. 104-127) as §1240N of the 1985 Food Security Act (P.L. 99-198); amended
by §2502 of the Farm Security and Rural Investment Act 2002 (P.L. 107-171). (16
U.S.C. 3839bb-1)

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