2008 Farm Bill Brings Opportunities, Disappointments
Posted: 23-Jun-2008; Updated: 24-Jun-2008
After months of debate, delay, voting and re-voting, the 2008 Farm Bill is finally law. Although Congress failed to enact genuine subsidy reform or provide conservation funding at a level that meets landowner demand, the legislation does offer new conservation initiatives, funding increases and possibilities for rulemaking that will benefit both landowners and the environment.
The new Farm Bill provides $4 billion in increased funding (budget authority over five years) for conservation programs, which is approximately $1 billion less than in either the House or Senate bill. Members of the conference committee also included policy changes in the final bill that could hinder conservation program effectiveness. Fortunately, several other important provisions can advance efforts to help farmers and ranchers address environmental issues associated with agricultural production.
The extent to which these positive conservation policy changes result in on-the-ground environmental improvement will be determined by the regulations USDA’s Natural Resources Conservation Service promulgates to implement the changes. Engagement in rulemaking is therefore critical for conservationists who want to get the biggest bang for the buck for farmers, ranchers and the environment.
Leveraging non-federal dollars
Several new provisions build on state, local and private dollars and/or reward state and local governments and other partners who develop proposals to focus Farm Bill conservation program resources on conservation priorities in particular geographic areas.
Cooperative Conservation Partnership Initiative. A new requirement reserves 6% of annual funding for several USDA conservation programs for multi-producer, multi-stakeholder cooperative projects that leverage non-federal funding to achieve particular environmental outcomes in specific areas. (Excluded programs are the Conservation Reserve Program, Wetlands Reserve Program, Grassland Reserve Program and Farmland Protection Program.) CCPI, if implemented effectively, can better coordinate federal, state and local efforts and thus help agricultural producers achieve real results in addressing natural resource challenges.
Agricultural Water Enhancement Program. This new subprogram under the Environmental Quality Incentives Program replaces the Ground and Surface Water Conservation Program and also incorporates the Regional Water Enhancement Program proposed by the Administration and included in both the House and Senate versions of the Farm Bill. In addition to assisting individual producers in improving water use efficiency and water quality, AWEP will support multi-producer cooperative projects developed by partners such as state or local governments or producer associations to address regional water quantity or water quality concerns.
(Photo: Environmental Defense Fund)
Increased GRP, EQIP and CSP benefits
Grassland Reserve Program. The 2008 Farm Bill authorizes the enrollment of an additional 1.22 million acres. It also provides greater flexibility for eligible third parties—states, local governments, land trusts and other conservation organizations—to enter into agreements with USDA to negotiate and hold easements with landowners under the program. Priority will be given to agreements in which a partner agrees to contribute more of its own funding to the purchase of easements.
EQIP gained $1.14 billion in new funding over five years, as well as additional monies for the AWEP subprogram. The new Farm Bill also strengthens the criteria for ranking EQIP applications. These new criteria will prioritize proposals that address national, state and local conservation priorities in the most cost-effective way.
Conservation Security Program funding increased by $1.3 billion over five years, with a provision to enroll over 12 million acres each year in a nationwide, continuous enrollment process. The new Farm Bill also reforms CSP to make the program more effective by driving adoption of new conservation practices and activities that address specific conservation priorities in particular watersheds or other areas within each state. States are to identify priority areas and resources, such as air quality concerns and habitat for at-risk species.
Tax deductions for habitat restoration
A small portion of the legislation originally introduced as the Endangered Species Recovery Act survived in the Farm Bill. Farmers and ranchers who voluntarily restore habitat to further the recovery of endangered or threatened species will be eligible for tax deductions. Provisions that did not make it into the final bill would have offered tax credits for landowners who enter land into conservation easements to benefit at-risk species.
Sara Hopper
Attorney
Center for Conservation Incentives
Environmental Defense Fund
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