100 



SOILE 

 AND VNiMER 

 CONSERVATION 

 SOCIETY 



Future Use of Conservation 

 Reserve Program Acres 



POLICY 

 POSITION 



ISSUE 



What is the future of the Conservation Reserve Program (CRP) as an environmentally, 

 economically, sociologically, and politically acceptable natural resources conservation 

 program, and more specifically, what uses will be made of the 36.5 million enrolled 

 acres after CRP contracts expire? 



BACKGROUND 



A broad spectrum of environmental and agricultural interests joined forces to craft the 

 Conservation Title of the 1985 Food Security Act, which included the Conservation 

 Reserve Program (CRP). The CRP is a voluntary program designed to encourage 

 landowners to retire highly erodible and other environmentally fragile land from crop 

 production for 10 years. In return, participating fanners receive an annual rental 

 payment plus cost-sharing for establishment of a permanent, soil-conserving cover of 

 grass, trees, and shrubs on the enrolled acres. Program changes in the Food, Agricul- 

 ture, Conservation and Trade Act of 1990 sought to target enrollments to water quality 

 and related environmental problems through such measures as partial-field enrollments 

 and stronger incentives for planting trees and native grasses. 



From the outset, the CRP was a multiple-objective program. A major impetus for the 

 program initially was the need to help reduce surplus agricultural commodity supplies 

 that were lowering food and feed grain prices and increasing the federal government's 

 farm program costs. The program was also designed to provide other important environ- 

 mental benefits, including soil erosion control, improved water quality, wildlife habitat 

 enhancement, and increased recreational opportunities. 



Since 1985, 36.5 million acres — about eight percent of all U.S. cropland — have been 

 enrolled in the CRP at an average rental rate of $50 per acre. The original enrollment 

 target was 40 million to 45 million acres. Program achievements include an estimated 

 22 percent reduction in soil erosion on U.S. cropland, compared with conditions 

 existing prior to the CRP, and dramatic improvements in wildlife habitat for many 

 species, including game and nongame birds and mammals as well as reptiles. Problems 

 associated with the program, such as upward pressure on land rents, reduced sales of 

 farm products, and fewer opportunities for beginning farmers, occurred in some areas 

 where signups approached, reached, or even exceeded the 25 percent county cropland 

 enrollment cap. 



While some perceive the costs of the CRP as enormous, the true costs and benefits are 

 still not well known. The direct costs to the government for the 36.5 million acres now 

 enrolled are estimated to be $19.2 billion over the life of the contracts. This estimate 

 excludes administrative costs, which have not been assessed. Nor does it reflect savings 

 in annual commodity price and income support programs that result from CRP enroll- 

 ment. A 1990 estimate by the U.S. Department of Agriculture's Economic Research 

 Service put the then-present value of the CRP's environmental benefits in a range 

 between $6 billion and $13.6 billion over the life of the contracts. 



