15 November 2019 Natural Resources Conservation Service Conservation

15 November 2019 Natural Resources Conservation Service Conservation Stewardship Program & The 2018 Farm Bill

15 November 2019 Overlapping Goals Secretary Streamline Programs Increase Efficiency Customer Service Farm Bill Stakeholders 1 Chief Implement Farm Bill Streamline Programs Customer Service FPAC, OGC, OBPA, OMB… NRCS Staff Program Implementation & Delivery (regs & policies)

15 November 2019 Status of Farm Bill Rules Implementation Completed In Progress May 2019 – Misc. Interim Final Rule EQIP Interim Final Rule Nov. 2019 – CSP Interim Final Rule ACEP Interim Final Rule RCPP Interim Final Rule Additional Updates: • • CIG On-Farm Innovation Trials –November announcement CIG Classic –December announcement Feral Swine Eradication –November announcement Review of Conservation Practice Standards – public comments received April 2019 ü Requesting additional comment on 13 practices and will be requesting feedback on additional practices over the coming months. 2

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15 November 2019 2018 Special Authority • Section 2504 – Interim Administration of Conservation Programs. • Authority terminated September 30, 2019. • No impact on servicing obligated contracts but impacts entering into new agreements. 4

15 November 2019 Conservation Stewardship Program (CSP) Overview • Continuous sign up offered across 50 states and Pacific and Caribbean areas. • $725 million available in fiscal year 2020 • Contracts renewals during the first half of the fifth year of the five-year contract. • Contract extensions – one year. 5

15 November 2019 CSP Statutory Changes • CSP and EQIP under the same chapter. • CSP and EQIP remain separate and distinct. Maintains EQIP and CSP set-asides for beginning and socially disadvantaged producers. • Alternative funding arrangements with tribal entities available under EQIP and CSP. • May contribute to the FB requirement that at least 10% of all program funding is devoted to source water. 6

15 November 2019 CSP Statutory Changes, Continued • Converts CSP from an acre-based program to a funding-based program. • Authorizes that contracts expiring on or before December 31, 2019 may be granted a 1 -year extension under the same terms and payments rates. Authorizes renewal of such contracts under the new CSP authority. • Defines new term of “conservation activities” and expands definition of “stewardship threshold. ” • Simplifies ranking criteria. 7

15 November 2019 CSP Statutory Changes, Continued • Authorizes payment for cover crop activities be paid at not less than 125% of the annual payment amount. • Authorizes supplemental payments for resource conserving crop rotations and advanced grazing management systems will not be less than 150% of the annual payment amount. • Provides for a 1 -time payment to develop a comprehensive conservation plan. 8

15 November 2019 CSP Statutory Changes, Continued • Establishes a $200, 000 payment limitation on all contracts entered into during FY 2019 through 2023. • Provides specific support for organic and transitioning to organic production activities. • Establishes the new CSP Grassland Conservation Initiative (CSP-GCI). 9

15 November 2019 CSP Statutory Changes, Continued • Requires streamlining and alignment with EQIP, including: ü Applications, contracting, conservation planning, conservation practices, and related administrative procedures. • Requires to the greatest extent practicable, the program managed to enhance soil health. 10

15 November 2019 CSP Regulatory Changes - Cleanup Mandatory: ü Removes regulatory language that addressed CSP implementation under the Regional Conservation Partnership Program (RCPP). ü Removes reference to acreage cap and dollar amount per acre limit. ü Adds definitions to reflect statutory changes: advanced grazing management, comprehensive conservation plan, and management-intensive rotational grazing. ü Adds a separate section outlining the requirements and parameters of CSP-GCI. 11

15 November 2019 CSP Regulatory Changes – Cleanup Discretionary: ü Removes identification of Chief as a Vice President of the Commodity Credit Corporation. ü Removes language related to training NRCS staff. ü Adjusts definitions to conform to those in other NRCS or Department regulations. ü Modifies and simplifies language throughout the regulation to improve clarity, organization, readability, and to reduce duplicative information. 12

15 November 2019 CSP Regulatory Changes - Cleanup Modifies existing terms to more closely align CSP administration with EQIP, and/or for clarity: Mandatory: ü Modifies the definition of “veteran farmers or ranchers” to cite the statutory reference in the 2018 Act. Clarifies “enhancement”, “participant” and “stewardship threshold. ” 13

15 November 2019 CSP Regulatory Changes - Cleanup Discretionary: ü Modifies “eligible land” to include public land when the land is a working component of the participant’s agricultural or forestry operation. ü Clarifies the annual payment structure and adjusted the timeframe for implementing the first conservation activity to align with EQIP. 14

15 November 2019 CSP Regulatory Changes - New Mandatory: 1470. 4 - Adds a paragraph to address State organic allocations based on the number of organic and transitioningto-organic operations in a State and the number of organic and transitioning-to-organic acres in a State. 15

15 November 2019 CSP Regulatory Changes - New Discretionary: 1470. 6 - Specifies eligibility requirements for all applicants sharing in the risk and participating in dayto-day activities. 1470. 7 - Expanded the potential scope of bundles. 1470. 20 - Removes requirements associated with an operation crossing ranking pool boundaries to increase applicant flexibility. 1470. 20 - Adds organic producers or producers transitioning to organic as a category of producer with a targeted ranking pool. 16

15 November 2019 CSP Regulatory Changes - New Mandatory: 1470. 24 - Includes language for the one-time payment option for development of a comprehensive conservation plan. 1470. 24 - Adds advanced grazing management as another type of supplemental payment. 1470. 24 - Requires that if two or more applications receive the same ranking, they be ranked on the extent to which actual and anticipated conservation benefits from each contract are provided at the lowest cost relative to other similarly beneficial offers. 17

15 November 2019 CSP Regulatory Changes - New Mandatory: 1470. 24 - Payment limits: Maintains the statutory payment limitation and establishes a regulatory $200, 000 contract limit for all contract participants, with the exception of formal joint operations. Discretionary: 1470. 24 - Adds language: unless a waiver is granted, participants will not receive payment for conservation activities initiated or implemented prior to contract approval. 18

15 November 2019 CSP Regulatory Changes - New Discretionary: 1470. 24 - Establishes a regulatory $400, 000 contract limit for all joint operations. Adds language to allow for contract increases due to minor adjustments made to conservation activities at the discretion of NRCS. Modifies language to provide greater consideration to a participant’s circumstances with respect to operational changes. 19

15 November 2019 CSP Regulatory Changes - New Discretionary: 1470. 25 – Adds language to allow for contract increases due to minor adjustments made to conservation activities. Modifies language to provide greater consideration to a participants circumstances with respect to operational changes. 20

15 November 2019 CSP Regulatory Changes - New Mandatory: 1470. 26 - Incorporates language about opportunity for participants to renew their contracts in the first half of the fifth year of the 5 -year contract. Discretionary: 1470. 26 - Includes an eligibility restriction for renewal -eligible participants who choose not to renew in favor of competing for a new contract. 21

15 November 2019 Key Points • Interim rule effective on date of publication. • Currently available for public review and comment in the Federal Register. • In effect until a final rule is published. • Interim final rules for EQIP, ACEP, and the RCPP later this calendar year. 22

15 November 2019 Key Dates • CSP interim rule published in the Federal Register on November 12, 2019. • Public comment period - 60 days. • Comments due January 13, 2020. • CSP participants will have an opportunity to renew their contracts in the first half of the fifth year of the five-year contract. 23

15 November 2019 How to Submit Comments • Federal e. Rulemaking Portal. Go to https: //www. regulations. gov/ search for Docket ID NRCS-2019 -0020. • Action: Submit comments by January 13 , 2020. • All written comments received will be publicly available on http: //www. regulations. gov. 24

15 November 2019 The USDA is an equal opportunity employer, provider and lender.