2018 Farm Bill Primer: Title II Conservation Programs

2018 Farm Bill Primer: Title II Conservation Programs

May 3, 2019
2018 Farm Bill Primer: Title II Conservation Programs
Title II of the Agriculture Improvement Act of 2018 (2018
The two largest working lands programs—EQIP and
farm bill, P.L. 115-334) authorizes programs and provisions
CSP—were reauthorized and amended under the enacted
that assist farmers and ranchers in addressing
farm bill but in different ways.
environmental resource concerns on private land. The 2018
Conservation Stewardship Program
farm bill reauthorized and amended a number of existing
CSP provides financial and technical assistance to
programs, directed existing program resources, shifted
producers to maintain and improve existing conservation
funds within the title, and authorized a budget-neutral level
systems and to adopt additional conservation activities in a
of funding for the title.
comprehensive manner on a producer’s entire operation.
The House-passed bill would have repealed CSP and
Debate on the 2018 farm bill focused on a number of issues
created a stewardship contract within EQIP, whereas the
through two different versions proposed in the House- and
Senate-passed bill would have reauthorized CSP and
Senate-passed bills (H.R. 2). These differences were
reduced program enrollment. The enacted bill creates a mix
resolved in conference to create a final version of the title
of both the House- and Senate-passed bills by reauthorizing
that represents a mix of both proposals. The enacted bill
CSP, reducing program enrollment, and creating a new
reauthorizes and amends portions of most conservation
incentive contract within EQIP. The enacted bill also
programs, although the main focus is on the larger
amends CSP’s enrollment criteria; contract renewal
programs, namely the Conservation Reserve Program
requirements; payments for cover crops, grazing
(CRP), Environmental Quality Incentives Program (EQIP),
management, and comprehensive conservation plan
and Conservation Stewardship Program (CSP).
development; and organic certification allocations. Funding
Funding for Conservation
for CSP is shifted away from a national acreage limitation
Most farm bill conservation programs are authorized to
under prior law (10 million acres annually; approximately
receive mandatory funding and are not subject to
$1.4 billion in FY2018) to limits based on funding ($700
appropriation. According to the Congressional Budget
million in FY2019 increasing to $1 billion in FY2023).
Office (CBO), the Conservation title of the 2018 farm bill
makes up 7% of the bill’s total projected mandatory
Environmental Quality Incentives Program
spending over 10 years, amounting to $60 billion of the
EQIP provides financial and technical assistance to
total $867 billion. The Conservation title is budget neutral
producers and landowners to plan and install structural,
over the 10-year baseline. However, the 2018 farm bill is
vegetative, and land management practices on eligible lands
projected to increase funding in the first five years (+$555
to alleviate natural resource problems. EQIP is reauthorized
million over FY2019-FY2023) and decrease funding in the
and expanded with an increased funding level in annual
last five years (-$561 million over FY2024-FY2028).
increments from $1.75 billion in FY2019 to $2.025 billion
Generally, the 2018 farm bill reallocates mandatory funding
in FY2023. A number of amendments to EQIP focus on
within the Conservation title among the larger programs.
water-quality- and quantity-related practices, soil health
improvement, and wildlife habitat. The bill reduces the
Conservation Program Changes
allocation for livestock-related practices from 60% to 50%
Agricultural conservation programs administered by the
and increases the allocation for wildlife-related practices
U.S. Department of Agriculture (USDA) can be grouped
from 5% to 10%. Water conservation system payments are
into the following types based on similarities: working
expanded to include irrigation and drainage entities with
lands, land retirement, easement, conservation compliance,
limitations. Conservation Innovation Grants, a subprogram
and partnerships and grants. Most of these programs are
under EQIP, is expanded to include community colleges,
authorized to receive mandatory funding and include
on-farm innovation, and soil health trials.
authorities that expire with other farm bill programs at the
end of FY2023.
Conservation Reserve Program
The largest land retirement program—CRP—is
Other types of conservation programs—such as watershed
reauthorized and expanded by increasing annual CRP
programs, emergency programs, and technical assistance—
enrollment in annual increments from 24 million acres in
are authorized in other non-farm-bill legislation. Most of
FY2019 to 27 million by FY2023 using such mandatory
these programs have permanent authorities and receive
funding sums as necessary. CRP provides annual rental
appropriations annually through the discretionary
payments to producers to replace crops on highly erodible
appropriations process. These programs are not generally
and environmentally sensitive land with long-term
addressed in the context of a farm bill unless amendments
resource-conserving plantings. Within the total enrollment
to the program are included.
limit, CRP is required to enroll up to 2 million acres in
grasslands contracts and up to 8.6 million acres in
continuous contracts. This increase in enrollment is partly
https://crsreports.congress.gov

link to page 2
2018 Farm Bill Primer: Title II Conservation Programs
offset by reducing rental rates for general contracts to 85%
grants more flexibility to partners. RCPP funding is
of the county average rental rate and to 90% of the county
increased from $100 million annually under prior law to
average rental rate for continuous contracts. Cost-share
$300 million annually for FY2019-FY2023.
payments are limited to the actual cost of establishing the
Wetland and Watershed Programs
approved practices, including not more than 50% for seed
The Wetlands Conservation (“Swampbuster”) provision—
mix costs. The enacted bill also makes a number of other
under which producers agree not to convert wetlands to
changes that would further expand grazing and commercial
crop production in exchange for certain USDA program
uses on CRP acres as well as transition options for new and
benefits—was amended to require a notice of on-site
limited resource producers. Under CRP, new pilot programs
inspection and specify that benefits cannot be denied if an
are created—such as the Clean Lakes, Estuaries, and Rivers
exemption applies. Amendments were also made to the
initiative and the Soil Health and Income Protection Pilot—
Watershed Protection and Flood Prevention Operations
while existing subprograms are reauthorized and codified,
program, the most substantial being the authorization of
such as the Conservation Reserve Enhancement Program
permanent mandatory funding of $50 million annually.
and the Farmable Wetlands program.
Historically, the program received discretionary funding
Agricultural Conservation Easement Program
through annual appropriations.
(ACEP)
Policy Issues That Shaped the
ACEP is reauthorized and amended in the 2018 farm bill
Conservation Title
with an increase in overall funding from $250 million in
While the 2018 farm bill did not create new conservation
FY2018 to $450 million annually for FY2019 through
programs, it does require that a number of existing
FY2023. ACEP provides financial and technical assistance
programs direct a specific level of funding, acres, or
through two types of easements: (1) agricultural land
percentage of a program’s funding to a resource- or
easements that limit nonagricultural uses on productive
interest-specific issue, initiative, or subprogram. Some of
farm or grasslands and (2) wetland reserve easements that
these policies existed prior to the 2018 farm bill but did not
protect and restore wetlands. Most of the changes to ACEP
include a specific funding or acreage level. Through these
focus on the agricultural land easements by providing
directed policies Congress has specified a level of support
additional flexibilities to ACEP-eligible entities.
or required investment that USDA is to achieve through
program implementation. These directed policies may
Figure 1. Farm Bill Conservation Program Mandatory
reduce the flexibility the implementing agency has to
Spending, FY2002-FY2029
allocate funding based on need and reduce the total funds or
Outlays in millions of dol ars (not adjusted for inflation)
acres available for activities of the larger program that may
not meet a resource-specific provision.
Over time, high commodity prices, changing land rental
rates, and new conservation technologies have led to a shift
in farm bill conservation policy away from programs that
retire land from production (CRP) and toward an increased
focus on working lands programs (EQIP and CSP). Much
of this shift occurred following the 2008 farm bill and
continued in the 2014 farm bill as the level of total
mandatory program funding for land retirement programs
declined relative to working lands programs (Figure 1). At
the same time, the separation between land retirement
programs and working lands programs has become blurred
by an increase in compatible use allowances for grazing and
pasture use under retirement programs. Funding for
easement programs (ACEP) also declined somewhat under
the 2014 farm bill but is projected to level off under the
Source: CRS using CBO baseline data, FY2001-FY2019.
2018 farm bill. Partnership program (RCPP) funding has
Notes: FY2002-FY2018 include actual spending levels. FY2019-
also increased in recent farm bills but remains relatively
FY2029 are projected spending levels. Chart does not include
small compared to the working lands and land retirement
sequestration or savings from repealed programs.
programs.
Regional Conservation Partnership Program
Additional CRS Resources
(RCPP)
 CRS Report R45698, Agricultural Conservation in the
RCPP is also reauthorized and amended by shifting the
2018 Farm Bill;
program away from enrolling land through existing
 CRS Report R45525, The 2018 Farm Bill (P.L. 115-
conservation programs to a stand-alone program with its
334): Summary and Side-by-Side Comparison; and
own contracts. The program is to continue to enter into
agreements with eligible partners, and these partners are to
 CRS Report R40763, Agricultural Conservation: A
continue to define the scope and location of the projects,
Guide to Programs.
provide a portion of the project cost, and work with eligible
landowners to enroll in RCPP contracts. The 2018 farm bill
Megan Stubbs, Specialist in Agricultural Conservation and
expands the scope of eligible activities under RCCP and
Natural Resources Policy
https://crsreports.congress.gov

2018 Farm Bill Primer: Title II Conservation Programs

IF11199

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF11199 · VERSION 1 · NEW