$1.7 billion in Conservation Reserve Program payments for fiscal 2005

Agriculture Secretary Mike Johanns says USDA will issue $1.7 billion in Conservation Reserve Program (CRP) payments to participating producers for fiscal 2005, allowing producers to earn an average of $4,143 per farm enrolled.

“The Conservation Reserve Program helps farmers and ranchers work cooperatively to preserve the natural resources we all depend on — soil, water and air,” said Johanns. “By restoring wetlands and protecting flood plains vital to the health and beauty of our environment, the Bush administration is fulfilling its commitment to improve water quality and wildlife habit.”

Producers holding 694,226 contracts on 405,792 farms will receive an average of $48.18 per acre. The number of contracts is higher than the number of farms as some producers may have multiple contracts on a single farm.

CRP enrollment as of September 2005 and October 2005 rental payments*
State Number of contracts Number of farms Acres enrolled Rental payments
Alabama 10,338 7,595 485,263 $21,851,154
Arkansas 4,273 2,608 202,519 9,910,396
Georgia 8,233 6155 304,906 12,109,703
Louisiana 3,526 2,391 243,489 11,300,568
Mississippi 20,493 13,628 941,000 39,143,867
Missouri 34,099 21,028 1,550,891 102,498,250
Oklahoma 8,879 6,104 1,030,523 33,376,214
Tennessee 8,471 6,016 274,213 15,945,932
Texas 24,423 17,734 3,956,464 139,256,206
694,226 405,792 34,892,041 1,681,149,103
*Mid-South and nearby states.

In Texas, for example, 3.9 million acres are enrolled through more than 24,000 contracts on over 17,000 farms and will receive $139 million in payments.

The announcement does not include rental payments for 1.2 million acres already enrolled under CRP general sign-up 29, held from Aug. 30 to Sept. 24, 2004. Payments for new CRP acreage will be issued starting in October 2006 or October 2007, depending on when contracts become effective.

CRP is the largest public-private partnership for conservation and wildlife habitat in the United States. This voluntary program helps agricultural producers safeguard environmentally sensitive land. Producers enroll in CRP and plant long-term, resource-conserving covers to improve water quality, control soil erosion and enhance habitats for waterfowl and wildlife. In return, USDA provides producers with rental payments. CRP contract duration is from 10 to 15 years.

Johanns announced Sept. 28 that farmers and ranchers can re-enroll or extend CRP contracts expiring in 2007 through 2010. This effort fulfills the commitment President Bush made last year to underscore the administration's commitment to improving the environment and protecting the nation's wildlife habitat, water and natural resources.

Other CRP payments, including 50 percent expense reimbursement for establishing cover as well as incentive payments for enrolling eligible conservation practices, are made throughout the year. The fiscal 2006 projection for these payments are $99 million for expense reimbursements and $77 million for incentive payments.

The accompanying table lists acreage enrollments by state, CRP rental payments, number of contracts and number of farms for Mid-South and nearby states. It includes September 2005 and October 2005 rental payments.

For more information on CRP producers should contact their local FSA office or visit FSA's Web site at http://www.fsa.usda.gov.

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