Thousands of U.S. farmers have a decision to make this month, as they must choose to either keep their acres in the Conservation Reserve Program (CRP) or put those acres into crop production.

Conservation Reserve Program (Photo: usgs.gov)

Nationwide, there are 1.1 million acres in CRP contracts that will expire this month. Landowners holding those contracts will be weighing their options, making a judgment on whether to renew or to pull their acres out of the CRP program.

The number of CRP acres up for renewal jumps to 3.8 million acres in 2009, and then 4.4 million acres in 2010, according to a statement from U.S. Agriculture Secretary Ed Schafer in July.

Typically, the type of land that is enrolled in the CRP program is environmentally sensitive and erodible. The program was designed to keep those lands out of production to conserve soil and protect water resources, as well as to improve wildlife habitat. With millions of acres of farmland in CRP, the program also tends to protect against the overproduction of crops and can help maintain steady grain prices.

CRP has long had its detractors. Those critical of the program have called it a wasteful handout to landowners, paying farmers not to farm. Since its creation in the early 1980s, however, the program has been renewed every five years as a part of the federal farm bill. In 2005, the USDA spent approximately $1.7 billion in CRP payments to landowners.

Now that global demand is strong and commodity prices are high, many farmers may choose against renewing their CRP contracts to plant more corn and other grains. The CRP rental rates simply are notas lucrative as planting a field of corn.

In an interview last week with the Iowa Independent, Iowa Secretary of Agriculture Bill Northey said farmers are going to have some difficult decisions to make regarding CRP. Northey said some farmland may now be worth significantly more in cash rent than in CRP. For those farmers, he said, “it’s got to be really hard to keep it in CRP. You’ve got to really believe in [CRP] to keep it in, when you could be getting almost twice as much by farming it.”

With CRP rental rates not keeping up with the value of farmland, landowners will consider the bottom line.

“I run into some farmers out there that ask about it. I can see that they’re thinking about it,” said Northey. “They’re trying to figure out what to do.”

Opponents of alternative fuels such as ethanol have pointed to federal renewable fuels incentives as the reason farmers may choose to opt out of CRP. The demand for corn has increased because of ethanol, but landowners will consider other factors as well.

The penalties for taking land out of a CRP contract before the agreed-upon time can be steep. A farmer typically must return all payments received during the entire period of the CRP contract in order to be released early from the contract.

A simple lack of flexibility in the program may be what turns some farmers off. The USDA attempted this year to release CRP land for haying and grazing under its critical feed use program, but that action was mostly thwarted by a lawsuit filed by the National Wildlife Federation. Because of that lawsuit, it is now more difficult for the USDA to use its discretion and release CRP for feed uses when farmers really need it.

Conservation Reserve Program (Photo: usgs.gov)

According to a press release from Senate Agriculture Committee chairman Tom Harkin, D-Iowa, the USDA will release CRP acres for haying in counties that have received a presidential disaster declaration and contiguous counties because of the recent flooding. This release includes almost all of the state of Iowa.

U.S. Secretary of Agriculture Ed Schafer issued a release for livestock grazing on CRP acres for these same counties on July 7.

Harvesting of hay on CRP lands under the emergency release comes with several stipulations. CRP participants will receive a 25 percent payment reduction and harvesting will be limited to one cutting of hay. Additionally, one half of the field or contiguous fields in CRP must be left unharvested for the protection of wildlife, and all haying must cease on Sept. 30. Participants must write their county Farm Service Agency office and receive a modified conservation plan and approval before beginning to harvest hay.

Harkin had submitted numerous requests for the emergency CRP release for haying, and just this week he was joined by all of the members of Iowa’s congressional delegation in calling for the release.

“The disaster caused by this summer’s flooding has forced us to look at new ways to allow Iowa producers to provide for livestock,” said Harkin in the press release. “It was critical for USDA to release CRP lands for grazing. Yet it is important for producers in Iowa — many of whom no longer have fencing or livestock watering facilities on their CRP land — to be able to use CRP hay to feed their livestock or to market it. Emergency haying and grazing is permitted on lands affected by drought, and with the nesting season over, it only made sense to open this land for haying.”

The primary nesting season for wild birds in Iowa was determined by the USDA to be completed by Aug. 2 this year.

The emergency release of CRP acres for haying and grazing will only affect designated counties in 16 states. And while it will be welcome news to many livestock producers who have been struggling this year with the high cost of feed, a broader nationwide release of CRP land was what many really had hoped for.

That nationwide CRP release, under the Critical Feed Use program, was mostly derailed when a Seattle court found in favor of the National Wildlife Federation in a lawsuit two weeks ago.

Iowa’s other senator, Republican Chuck Grassley, said Tuesday in a conference call with agriculture reporters that he wants to change the law to override the court ruling on the CRP Critical Feed Use program.

Grassley announced that he is co-sponsoring a bill with Sen. John Thune, R-S.D., that will “implement the Critical Feed Use program and do it as originally intended by the USDA.”

Grassley said that the court stepped in and ruled in such a way to “dilute the value of the critical feed program,” adding that the lawsuit came at a very bad time for farmers. “The court issued an arbitrary ruling, which, well, just simply and essentially cut off many farmers who wanted to participate,” said Grassley.

Grassley said that the court, in fact, may be accurately interpreting the law, but if that is the case, “then we need to rewrite the law.” He said that the arbitrary ruling of the court resulted in farmers being treated inequitably, because some farmers who had applied before the deadline would be allowed to participate, while others who had missed the deadline would not be allowed to participate.

Conservation Reserve Program (Photo: usgs.gov)

The U.S. Department of Agriculture has backed away from a proposal to release more conservation lands for crop production.

U.S. Secretary of Agriculture Ed Schafer announced Tuesday that the USDA will not move forward with a plan to allow landowners a penalty free “early-out” of Conservation Reserve Program contracts. Schafer said that the proposal was deemed unnecessary after reviewing the current condition of crops and feedstocks around the country.

In a press conference held Tuesday, Schafer said grain prices have dropped in recent weeks, easing pressure on livestock feed markets and lessening the need for any further steps to be taken at this time.

“Despite the damage and disruption caused by the very severe floods that hit the Midwest last month, the indications so far are that the impact on this year’s corn and soybean crops will be less than what was originally feared,” said Schafer. “The markets have been reacting favorably to the good growing weather we have been experiencing in recent weeks and encouraging reports on crop conditions. Cash prices for corn are down 25 percent and for soybeans 14 percent from their record highs just last month.”

The Conservation Reserve Program has been in the news quite frequently this summer, as the USDA has sought to relax the rules of the program in a number of different ways to make available more livestock feed.

But that didn’t sit well with environmental organizations like the National Wildlife Federation, which recently sued the USDA to block a release of CRP acres for haying and grazing under the Critical Feed Use program. That issue was resolved with a U.S. District Court ruling last week.

This week’s announcement involved a different proposal which would have allowed landowners who are currently under CRP contract with USDA to be allowed completely out of their contracts without paying the usual penalty.

In Tuesday’s press conference, Schafer was asked about the relationship of this week’s announcement to last week’s court ruling. He answered by saying that the Critical Feed Use court ruling did not affect the USDA’s decision on the “early-out” proposal.

“As far as the court ruling, we see these as separate issues,” said Schafer. “But the most critical important issue I think is that that was not tied to early out without penalty decision; nor did our attorneys here feel that that decision affected what this decision might be.”

Iowa has approximately 1.8 million acres of land enrolled in the CRP program. When enrolled in the program, landowners sign 10- to 15-year contracts with the USDA and agree to leave the acres out of production. The farmers receive a regular payment from the government, and the program protects environmentally sensitive land and provides wildlife habitat.

The penalties for taking land out of a CRP contract before the agreed-upon time can be steep. A farmer typically must return all payments received during the entire period of the CRP contract in order to be released early from the contract.

Schafer said that even without any action by the USDA, a large amount of CRP land will become available for crop production soon as many current CRP contracts simply expire on their own.

Schafer said that nationwide there are 1.1 million acres in CRP contracts that will naturally expire this September. Landowners will then have the option to renew those contracts. That number jumps to 3.8 million acres in 2009, and then 4.4 million acres in 2010, said Schafer. “So, large blocks of land will be available for other uses, if landowners choose to pursue them.”

The Seattle Times reported Thursday that U.S. District Judge John C. Coughenour has ordered a temporary injunction to the U.S. Department of Agriculture's (USDA) planned Aug. 2 release of Conservation Reserve Program (CRP) acres for emergency haying and grazing.

The judge's injunction came in response to a lawsuit filed by the National Wildlife Federation and its affiliates, which claim that the federal government failed to perform an environmental impact assessment before ordering the release.

The USDA announced in May that it would allow an emergency release of all CRP acres for haying and grazing after the primary nesting season for birds is completed, on Aug. 2. The plan would bring relief to livestock producers who have been suffering under high costs of feed and forage.

Senate Agriculture Committee Chairman Tom Harkin, D-Iowa, responded Thursday to a request for comment by Iowa Independent.

"I am strongly supportive of the Conservation Reserve Program, and also of reasonable access to these acres for responsible grazing and haying where that is needed," said Harkin in an e-mail statement. "What's before the court involves essentially legal questions whether the USDA went about its decisions and policy in the proper ways. These are matters under litigation and I will await the decisions of the courts."

The court injunction does not block the opening of CRP acres for grazing in presidential disaster areas, a separate early release of CRP acres that was announced by the USDA this week. That release affected 97 of Iowa's 99 counties, allowing emergency livestock grazing on CRP acres but not allowing the acres to be harvested for hay.

Iowa has approximately 1.8 million acres of land enrolled in the CRP program. When enrolled in the program, landowners sign 10- to 15-year contracts with the USDA and agree to leave the acres out of production. The farmers receive a payment from the government, and the program protects environmentally sensitive land and provides wildlife habitat. But CRP acres can be opened up for production when deemed necessary by the USDA.

In an article on the Brownfield Network Web site, U.S. Secretary of Agriculture Ed Schafer said he was "disappointed" in the judge's decision and also disappointed in the National Wildlife Federation for taking the legal action.

Coughenour is expected to hold a hearing on July 17, when a final decision on the injunction will be made.

The U.S. Department of Agriculture released CRP acres for livestock grazing in 97 of Iowa’s 99 counties on Monday. The release of CRP acres in Iowa and 15 other states will allow the conservation land to be used for livestock grazing only, and landowners will suffer a 25 percent reduction in their CRP payments if they choose to use the land for grazing. The release will not allow the land to be harvested for hay.

The release only allows grazing in counties that were designated as primary and contiguous Presidential Disasters Areas because of flooding, but the move could provide relief to livestock producers who have been struggling with rising costs of feed.“We have a crisis situation in the Midwest and other parts of the country that calls for drastic action,” said U.S. Secretary of Agriculture Ed Schafer when he announced the CRP release. “Major flooding along the Mississippi River and its tributaries came at one of the worst times for agriculture. Flood waters inundated thousands of acres that cannot be salvaged for production this growing season, and it happened at a time of record crop, food and fuel prices.”

The USDA’s release of CRP land for grazing only could be seen as too little, too late for some in the agriculture community. All of Iowa’s congressional delegation recently called for a complete release of all CRP acres in Iowa for haying and grazing in an effort to alleviate pressure on feed prices caused by the historic floods.

Iowa has approximately 1.8 million acres of land enrolled in the CRP program. When enrolled in the program, landowners sign 10- to 15-year contracts with the USDA and agree to leave the acres out of production. The farmers receive a payment from the government, and the program protects environmentally sensitive land and provides wildlife habitat. But CRP acres can be opened up for production when deemed necessary by the USDA.

Iowa Secretary of Agriculture Bill Northey said in a press release Monday that the release of CRP acres for grazing “is a step in the right direction.” Northey said he had requested the immediate release of CRP for both haying and grazing, but added that the release will still be beneficial to some producers.

To be approved for CRP release, participating farmers need to write their county USDA Farm Service Agency office, obtain a modified conservation plan and receive county office approval before beginning grazing.

Iowa counties where CRP acres are released for grazing include Adair, Adams, Allamakee, Appanoose, Audubon, Benton, Black Hawk, Boone, Bremer, Buchanan, Buena Vista, Butler, Calhoun, Carroll, Cass, Cedar, Cerro Gordo, Chickasaw, Clay, Clarke, Clayton, Clinton, Crawford, Dallas, Davis, Decatur, Delaware, Des Monies, Dickinson, Dubuque, Emmet, Fayette, Floyd, Franklin, Fremont, Greene, Grundy, Guthrie, Hamilton, Hancock, Hardin, Harrison, Henry, Howard, Humboldt, Ida, Iowa, Jackson, Jasper, Jefferson, Johnson, Jones, Keokuk, Kossuth, Lee, Linn, Louisa, Lucas, Lyon, Madison, Mahaska, Marion, Marshall, Mills, Mitchell, Monona, Monroe, Montgomery, Muscatine, O’Brien, Osceola, Page, Palo Alto, Pocahontas, Polk, Pottawattamie, Poweshiek, Ringgold, Sac, Scott, Shelby, Sioux, Story, Tama, Taylor, Union, Van Buren, Wapello, Warren, Washington, Wayne, Webster, Winnebago, Winneshiek, Woodbury, Worth and Wright.