CRS-135 



unprotected. The 1980 amendments expanded the eligibility list under the pro- 

 gram to include Type 6 and 7 areas located in inland freshwater regions and to 

 include all artificially developed inland freshwater areas which meet the 

 descriptions of Type 1 through 7. 



The second major provision in the 1980 amendments to the Water Bank Act 

 concerned rates of payment to participants in water bank, agreements. A 1970 

 General Accounting Office report stated that, according to one estimate, nearly 

 40 percent of water bank program agreements made in any one year would be ter- 

 minated before the end of the 10-year agreement period. 190 / The major reason 

 for terminations was said to be the rising cost of land and rental rates. 

 In many of these cases, landowners had greater economic incentive to terminate 

 the agreements, discontinue conservation of their wetland areas, and turn 

 them to more profitable uses, usually farming, thus destroying such potential 

 wetland benefits as flood water retention, ecological productivity, 

 and nutrient production. 



The 1980 amendments to the Water Bank Act therefore authorized the Secre- 

 tary of Agriculture to reexamine the payment rates to landowners and operators 

 participating in conservation agreements at the end of each 5-year period. Based 

 on current land and crop values, the Secretary could make rate adjustments that 

 would reflect increased land values during the life of the agreements and would 

 provide incentive to the landowners to continue conserving wetland areas. 



In commenting on these amendments to the Act, the Secretary of Agriculture 

 said that the legislation was premature. The Administration did not seek expan- 

 sion of the water bank program. The Department preferred to continue wetland 



190 / U.S. General Accounting Office. Better Understanding of Wetland 

 Benefits Will Help Water Bank and Other Federal Programs Achieve Wetland Pre- 

 servation Objectives. PAD-79-10, Feb. 8, 1979. Washington, 1979. p. 11. 



96-073 0-82-11 



