Summer/Fall 2000

Conservation Programs of the Farm Bill: An Interview With Homer Wilkes

In this article, Homer Wilkes, Mississippi's State Conservationist for the U.S. Department of Agriculture's Natural Resources Conservation Service, discusses with Wildlife Mississippi Magazine the conservation programs of the Federal Agricultural Improvement and Reform (FAIR) Act, or the 1996 Farm Bill as it is commonly called. A native of Port Gibson, Wilkes is a graduate of Jackson State University with a B.S. degree and a M.B.A. He has worked for what was formerly the Soil Conservation Service in Massachusetts, Mississippi and Washington, D.C.

When the 1996 Farm Bill was passed, one of its many benefits was that it simplified existing conservation programs and improved their flexibility and efficiency. The bill created new programs to further address conservation needs. It authorized more than $2.2 billion in additional funding for conservation programs, extended the Conservation Reserve Program and Wetland Reserve Program and created new initiatives, such as the Wildlife Habitat Incentives Program, to improve wetlands, water quality and wildlife habitat on private lands. This discussion between Wildlife Mississippi Magazine (WMM) and Homer Wilkes briefly describes each of the programs that are available for Mississippi.

WMM: The Conservation Reserve Program (CRP) has been hailed as one of the most successful conservation programs in the United States. It has been largely responsible for improving waterfowl habitat in the breeding grounds of the upper Midwest and improving water quality throughout the United States. Please describe it and what are some of the new provisions.

Wilkes: CRP protects highly erodible and environmentally sensitive lands with grass, trees and other cover. It was extended through 2002 and allows up to 36.4 million acres to be enrolled at any one time. New enrollments can replace expired or terminated contracts. Owners or operators who entered into a contract before 1995 will be allowed to terminate contracts on certain acres after giving written notice. Contracts must have been in effect for at least five years. Lands with high environmental values, including filter strips, waterways, windbreaks, riparian areas, wetlands and lands with an erodibility index greater than 15, are not eligible for early release. CRP gives the Secretary discretionary authority to offer future early outs for CRP acres.

WMM: Arkansas, Louisiana and Mississippi lead the nation in the amount of acres enrolled in the Wetland Reserve Program (WRP). What are the changes in WRP?

Wilkes: Under WRP, easements are acquired on marginal, high risk lands that are vulnerable both to the vagaries of floods and droughts because of the high content of hydric soils. These marginal lands detract from a farmer's cash flow and tend to experience repeated losses requiring disaster recovery assistance. WRP provides a lump sum easement payment that assists financially distressed farmers. The easement payment may be used to pay off current debts or to meet current operating fund needs. Additionally, WRP may provide farmers and ranchers with both a temporary alternative source of income through the wetlands restoration contract and a permanent source of income from the recreational and lease hunting income generated by the valuable restored wildlife habitat. The public benefits from both the reduced demand placed on disaster assistance funds from lands that previously experienced repeated losses and from a significant long-term conservation benefits obtained from the protection of wildlife habitat, improvement of water quality, the increase of flood storage and the reduction of soil erosion. WRP had an enrollment cap of 975,000 acres until an amendment was introduced on the Senate floor this year by Senators Thad Cochran and Trent Lott, and signed into law by President Clinton, to increase the cap by 100,000 acres to 1,075,000 acres. Program changes provide more flexibility and help landowners work toward a goal of no net loss of wetlands. It provides landowners with 75 to 100 percent cost-sharing for permanent easements, 50 to 75 percent for 30-year easements and 50 to 75 percent for restoration cost-share agreements. Cost-sharing will help pay for restoration.

WMM: The Environmental Quality Incentives Program (EQIP) is like an umbrella with a lot of programs under it. Please explain how it is organized and what it will do?

Wilkes: EQIP is a new program which combines the functions of the Agricultural Conservation Program, which has been very popular in Mississippi, Water Quality Incentives Program, Great Plains Conservation Program and the Colorado River Basin Salinity Control Program. EQIP is funded at approximately $175 million per year. Five to ten year contracts are established to provide technical assistance and pay up to 75 percent of the costs of conservation practices such as manure management systems, pest management and erosion control. Land eligible for EQIP contracts is agricultural land that poses a serious problem to soil erosion or water quality. Activities under the contract are required to be carried out according to a conservation plan. The total cost-share and incentive payments to any person is limited to $10,000 annually and to $50,000 for the life of the contract. In the past, payments have been limited to $3,500 annually and $10,500 for the life of the contract.

WMM: Senator Thad Cochran's amendment to the Farm Bill created the Wildlife Habitat Incentives Program (WHIP). Funding for it was recently increased by Senators Cochran and Lott. Can you briefly describe WHIP?

Wilkes: WHIP is a new provision that will help landowners improve wildlife habitat on private lands. The program has already spent $50 million for wildlife habitat improvement. Cost-sharing to landowners is provided for developing habitat for upland wildlife, wetland wildlife, endangered species, fisheries and other wildlife. The practices of WHIP often complement programs such as the WRP by offering farmers an opportunity to develop habitat on acreage that is not eligible for any other USDA program.

Practices, such as winter flooding of fields and sloughs, fit with the agricultural operation as well as create wintering areas for wildlife. Other practices, such as those developed on grazing lands, benefit the agricultural operation even though the primary purpose of the practices is fish and wildlife habitat development. In many areas of the country, agricultural producers are recognizing the economic value of fish and wildlife recreational activities and are seeking assistance in large numbers to develop alternative sources of income around such activities.

WMM: Mississippi is one of the largest participants in the Forestry Incentives Program (FIP). Please describe it.

Wilkes: FIP, which was authorized in 1973, provides funding, in the form of cost-share assistance, to non-industrial forest landowners to enhance wildlife habitat and help meet the rising demand for wood and wood fiber.

Since 1973, FIP has planted over 450,000 acres of trees in Mississippi. Nationwide, FIP has been successful in helping improve the productivity of our nation's privately owned forest land by planting 3.2 million acres of trees, accomplishing 1.3 million acres of other forest land improvement practices and assisting over 130,000 landowners. Besides the numerous benefits to society that have accrued because of this program, FIP is extremely cost-efficient. It has resulted in a very low cost per acre ($41.47 per acre) for planting and is one of only a few federal assistance programs that has a benefit/cost ratio greater than one-to-one. Trees are a renewable resource that will never be depleted as long as responsible forest management is practiced. FIP continues to provide jobs, income, forest products, energy, clean air and water, wildlife habitat, water quality protection and recreational opportunities. To be eligible for FIP, a landowner must own no more than 1,000 acres of eligible land and have land suitable for producing marketable timber. The minimum accepted acreage for FIP is 10 acres. The annual cost-share payment limitation is $5,000 per person. NRCS in Mississippi recently received an additional $224,000 in emergency funding for FIP due to the efforts of Senator Cochran.

WMM: What is the Flood Risk Reduction Program (FRRP), which is also new?

Wilkes: This provision authorizes voluntary contracts that provide one lump sum payment to producers who farm land with high flood potential. The payment will equal 95 percent of the seven-year market transition payments and other payments to offset estimated federal outlays on frequently flooded land. In return, the producer agrees to comply with applicable wetlands and highly erodible land requirements and to forego commodity loans, crop insurance, conservation program payments and disaster payments. This program has a lot of potential in the Lower Mississippi River Valley.