CONSERVATION STEWARDSHIP PROGRAM
Fiscal Year 2009 Signup Training
August 2009
Agenda
• Program Design and Key Concepts• Allocations• Program Eligibility• Application Acceptance and Evaluation
Process• Payments
Agenda - continued
• Conservation Measurement Tool (CMT) Demo
• Enhancement Activity Review• Resource Conserving Crop Rotation • Field Verification• Conservation Stewardship Plan
Development• CMT/Toolkit/Program Contracts System
(ProTracts)
Stewardship Purpose
2008 Food, Conservation, and Energy Act established a new program purpose
• Encourage producers to address resource concerns in a comprehensive manner by: Installing and adopting additional conservation
activities Improving, maintaining, and managing existing
activities
Stewardship Policy
A new program purpose brings
• New Interim Final Rule• New Conservation Programs Manual, Part
508• New Fund Code (95F and 95T)
Security Program
Effect on Conservation Security Program
• Prohibits new or renewed security contracts after September 30, 2008
• Provides funds as necessary to administer existing security contracts
• Honors payment commitments
Stewardship Program Availability
Broadens program availability
• Available nationwide• Continuous sign-up with periodic cut-offs
for ranking• Adds nonindustrial private forest land
(NIPF) as eligible land
Decision-Making
Shifts significant program decision-making to states
• Allocate acres to states to manage• Focuses on resource concerns identified
as a priority for a state or areas of a state• Competitively ranks peers within a state
who face similar resource challenges
Acreage Limitation / Payment Constraint
Developing a payment mechanism challenging within constraints:
• Enroll 12,769,000 acres for each FY• Manage to achieve a national average
rate of $18 per acre (includes financial assistance [FA] and technical assistance [TA])
Conservation Stewardship Program
Allocations
National Allocation and Management
• (1) The Chief will allocate acres to states, based primarily on each state’s proportion of eligible land to the total amount of eligible land in all states; and:
National Allocation and Management
• (i) The extent and magnitude of the conservation needs associated with agricultural production in each state;
• (ii) The degree to which implementation of the program in the state is, or will be, effective in helping producers address those needs; and
• (iii) Other considerations determined by the Chief, to achieve equitable geographic distribution of program participation.
National Allocation and Management
• (2) In any FY, acres allocated to a state that are not enrolled by a date determined by the Chief, may be reallocated with associated FA and TA funds to another state for use in that fiscal year.
State Allocations and Management
• (1) The state conservationist (STC) will:
– (i) Identify and establish, with advice from the Kansas Technical Committee (KTC) and local work groups, ranking pools that ensure that applicants will be ranked relative to other applicants who share similar resource challenges (refer to Title 440 – Conservation Programs Manual (CPM), Part 508, Section 508.72, for guidance on establishing ranking pools); and
State Allocations and Management
– (ii) Allocate acres from the state’s allocation to each ranking pool based on the same factors from 440-CPM, Part 508, Section 508.61C(1)(i-iii), that the Chief considers in making allocations to states.
State Allocations and Management
• (2) In any fiscal year, acres allocated to a ranking pool that are not enrolled by a date determined by the STC, may be reallocated within their state for use in that FY.
CSP Allocations Application Period No. 1
Ag – 541, 404 acres
NIPF – 6,418 acres
Questions
Stewardship Program Eligibility
Program Eligibility - Objectives
Identify eligibility requirements:
• Applicant• Land• Stewardship Threshold Requirement
Program Eligibility - Applicant
An applicant must:• Be the operator in the FSA farm records
management system• Have documented control for contract
term• Be compliant with
– Highly erodible land conservation (HELC) and Wetland Conservation (WC)
– adjusted gross income (AGI) • Supply information to determine eligibility
Program Eligibility - Applicant
Operator in FSA records
• Reports available include:– Form FSA-156EZ - Required– Form AD-1026A – Required
– Producer Subsidiary Print - Optional
Program Eligibility - Applicant
Documented Control:• Follow policy – Title 440 - CPM, Part 512,
Section 512.22A“Who May be Eligible”
Program Eligibility - Applicant
Document Land Operated and Not Under
Control for Contract Term
• The applicant must provide a written statement for associated tracts that are not under their control.
• The Natural Resources Conservation Service (NRCS) will file in the stewardship contract file.
Program Eligibility - Applicant
Be in Compliance:• Follow policy – Title 440 - CPM, Part 512,
Section 512.20C“Certifications Required”– Form AD-1026 HELC/WC certification– Form CCC-926 AGI certification– Forms CCC-901 or CCC-902, Member
Information
Program Eligibility - Applicant
Be in Compliance - continued:
• CSP applicants should wait until after October 1, 2009 to certify eligibility for the current application period (August 10th – September 30th, 2009).
Program Eligibility - Land
Land eligible for enrollment:• Private, working agricultural land
– Cropland, Pastureland, and Rangeland• Agricultural Indian land
– Cropland, Pastureland, and Rangeland• Nonindustrial private forest land (NIPF)
– By special rule– No more than 10 percent of acres enrolled
nationally/FY
Program Eligibility - Land
Ineligible land:• Conservation Reserve Program (CRP),
Conservation Security Program, Grassland Reserve Program (GRP), and Wetlands Reserve Program (WRP)
• Public land – Federal, state, or local
Program Eligibility - Land
Ineligible land:• Land cropped after June 18, 2008, not
planted, considered planted, or devoted to crop production four of six preceding years – unless:– Previously enrolled in CRP– Maintained using long-term rotations– Incidental land needed for efficient operation
of farm
Program Eligibility - Land
Ineligible land:• Other lands that are not working ag land
or NIPF including:– Incidental areas not in ag production– Developed areas
• Farm headquarters, ranch sites, barnyards, feedlots, manure storage facilities, machinery storage areas, material handling facilities
Program Eligibility - Land
Agricultural Operation • Established based on how operator
represents their operation for other USDA program participation
Program Eligibility - Land
Agricultural Operation includes: • All eligible* and ineligible land
(contiguous or non-contiguous)– Where applicant is operator in FSA record
system– Under control of applicant for contract term– Operated substantially separate
* - NIPF Component Exception
Program Eligibility - Land
Entire Operation
An application includes the eligible land in an operator’s entire operation
Program Eligibility - Land
Entire Operation
An operator with bonafide, substantially separate operations will submit a separate application per operation
Program participation limits established by direct attribution to an individual
Program Eligibility - Land
*NIPF Component Exception• NIPF competes separately from ag land• NIPF applicants submit a separate
application for NIPF• If designated for funding, then NIPF
component of operation is established separate and includes all NIPF
• If not designated for funding, then NIPF is not part of the agricultural operation
Program Eligibility – Stewardship Threshold Requirement
Stewardship Threshold• Level of natural resource conservation
required to conserve and improve the quality and condition of a natural resource
• Land treatment eligibility requirement• Assessed on each eligible land use• Measured using the CMT
Program Eligibility – Stewardship Threshold Requirement
The applicant must meet or exceed the
stewardship threshold for at least:• One resource concern at the time of
application; and• One priority resource concern –
– At the time of application, or– By the end of the conservation stewardship
contract.
Program Eligibility – Stewardship Threshold Requirement
Seven Resource Concerns Plus Energy• Air Quality• Animals• Plants• Soil Erosion• Soil Quality• Water Quality• Water Quantity
Program Eligibility – Stewardship Threshold Requirement
Stewardship Threshold Requirement• Determined by land use• Resource concerns and priority resource
concern met could be different for different land use types
• Example:Pastureland resource concern met – Soil ErosionRangeland resource concern met – Water QualityPastureland priority resource concern met - AnimalsRangeland priority resource concern met - Plants
Program Eligibility – Stewardship Threshold Requirement
Stewardship Threshold Requirement• Resource concern and priority resource
concern met must be different for the same land use
• That is - If the one resource concern met at
application is a priority resource concern, then another priority resource concern must to be met by the end of the contract
Questions
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Application Acceptance and Evaluation
Process
Step # 1
Screening
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Producer Self-Screening Checklist
• Is a screening questionnaire to assist producers independently identify if the program is right for them and their operation.
• completed by the producer without technical assistance
Training Reference Material-Exhibit A
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• Will assist a producer to arrive at a preliminary conclusion as to whether the applicant, the land, and the conservation activities meet CSP eligibility requirements.
• available through producer information workshops, at NRCS field offices and electronically
Producer Self-Screening Checklist
Step # 2
Determine Applicant and Land Eligibility
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Application Process
• Contract Program Application– Form NRCS-CPA-1200
• *Enter into ProTracts as FY 2010
– Supporting documents• Ag operation maps• Form AD-1026A• Form FSA-156EZ• Control of Land
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Application Process• Map/Aerial photograph/overlay of
agricultural and/or NIPF operation.
– Identify Ag operation and /or NIPF component
– delineate each eligible land use and associated acres.
»cropland, pastureland, rangeland for agricultural land applications
» NIPF for NIPF application48
Application Process
• Agricultural land applications will compete separately from NIPF applications.
• Applicant with both will have:
1. One application for NIPF2. One application for agricultural land
(Two applications, one for each land type)
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Determine Applicant and Land Eligibility
• Applicant Eligibility - ProTracts– AGI, HELC, and WC and at least one farm associated
with the applicant.– Operator– Control
• Land Eligibility- FSA farm management record system
– Private agricultural land– Agricultural Indian lands– Nonindustrial private forest land
Step # 3
Resource inventory and determine if
stewardship threshold requirement is met in
the CMT51
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CMT
The CMT • Considers the relative conservation
physical effects of conservation activities across natural resource concerns and energy to estimate the existing conservation performance levels to be maintained, and the additional conservation performance improvement to be achieved by an applicant.
CMT
• Integrates and supports the processes of inventorying resources, determining land treatment, scheduling new conservation activities, ranking applications, and establishing payments.
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Stewardship Threshold Requirement
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Stewardship Threshold Requirement Not Met
•Advise applicants•Practices to meet additional stewardship thresholds through CSP
•Other programs available•TA
CMT Resource Inventory
• Activity charge for NRCS assistance to producers for CMT resource inventory completion will be
Conservation Technical Assistance (CTA)
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Step # 4
•Determine conservation performance points in CMT
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Stewardship Threshold Requirement Met
•Select additional conservation activities (practices and enhancements) using the CMT
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Conservation Performance Ranking Score
• Based on the following factors:
• Level of conservation treatment on all applicable priority resource concerns at the time of application
• Degree to which the proposed conservation treatment on applicable priority resource concerns effectively increases conservation performance
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Conservation Performance Ranking Score
• Based on the following factors:• Number of applicable priority resource
concerns proposed to be treated to meet or exceed the stewardship threshold by the end of the contract, and
• Extent to which other resource concerns, in addition to priority resource concerns, will be addressed to meet or exceed the stewardship threshold by the end of the contract period.
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Conservation Performance Ranking Score
Will be used for ranking in ProTracts
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CMT• Conservation Performance Summary
Report(1) Ranking pool(2) Existing conservation performance level(3) Increase in conservation performance level by adding new activities;(4) Schedule of operation of new activities;(5) Certification statement from the applicant
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Conservation Performance Summary Report
• Provides information needed for ranking and contract development in ProTracts and
• Stewardship plan in Toolkit
Step # 5
Ranking and Application
Pre-Approval64
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Ranking
• Ranking will occur in ProTracts
– Based on information from CMT as recorded on the Conservation Performance Summary Report
– The same offered acres cannot compete in more than one ranking pool
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Application Pre-Approval
• The assistant state conservationists for field operations (ASTCs-FO) will make application pre-approval determinations for the applicable administrative area ag lands ranking pools
• during established ranking periods based on eligibility, ranking score, and acre allocation.
• Pre-Approve “status”- applicationspre-approved for funding.
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Application Pre-Approval
• The Program Manager will make application pre-approval determinations for NIPF statewide ranking pools
• during established ranking periods based on eligibility, ranking score, and acre allocation.
• “Pre-Approve” status – applications pre-approved for funding.
Step # 6
Field Verify
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Field Verify
• Applicant information will be verified during an on-site field verification conducted after applications are pre-approved and before a stewardship plan is completed and contract is obligated.
Field Verify
• The NRCS will request records to determine accuracy of information provided during application
• Applicant’s records must be available to NRCS upon request
• Responses to the CMT questions will be verified
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Field Verify
• In the event that a discrepancy is found the application will be:
– Ineligible, or
– Re-ranked using the CMT to re-determine stewardship eligibility and ranking score.
Resource Inventory Information is Accurate
• Complete the Conservation Stewardship Plan in Toolkit.
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Step # 7
Approve and Obligate
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Approve and ObligateFollow steps in 512.42
• Finalize CPCForm NRCS-CPA -1155
• Approve application Forms NRCS-CPA-1202, NRCS-CPA-1155 and
NRCS-CPA-1202-CPC (appendix)
• Obligate
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CSP Application Activity Flow
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QUESTIONS
Payments
Payments
“Subject to the availability of funds. . .”
Payments
Two Payment Types:
1. Annual Payment
2. Supplemental Payment
Annual Payment
Annual Payment for• Installing and adopting additional
conservation activities as scheduled in the plan, and
• Maintaining existing activities to at least the level of conservation performance identified at the time of application.
Annual Payment
Annual Payment Determined:• Established using conservation
performance estimated by CMT• Calculated by eligible land-use type• Uniform payment rate per land use
performance point
Annual Payment
Annual Payment Product of:
• Land-use acres• Land-use performance payment points• Land-use payment rate
X
Annual Payment
To Receive a Land Use Annual Payment:
• Participant must schedule and install at least one new conservation activity on that land use
Annual Payment
Annual Payment Based On:
• Cost incurred• Income foregone• Expected environmental benefits
Supplemental Payment
• Available to a participant receiving annual
payment who adopts a resource- conserving crop rotation
Supplemental Payment
Payment Rate
• Set nationally• Traditional payment schedule
methodology
Timing of Payment
• Annual and supplemental payments made
as soon as practicable after October 1
each year for contract activities carried
out in the previous year.
Payment Issued = Contracted Obligation
• Annual payment amount not adjusted for change in actual performance
• Actual performance below contract requirement is potential contract violation
• Follow policy Title 440 - CPM, Part 512, Section 512.55
Prohibited Payments
Payment Not Provided For:• Animal waste storage, treatment, or transfer• Activities where no cost incurred or income
foregone by participant• New conservation activities applied with FA
through any other USDA program on same land at same time– STC determines which activities are duplicative
Payment Limitations
Person or Legal Entity Limit• Regardless of number of contracts, a
person or legal entity may not receive direct or indirect payments that in aggregate exceed:
• $40,000 during any FY• $200,000 during any five-year period
Payment Limitations
Contract Limit
• Each contract limited to $200,000 over the term of the initial contract period
2009 Payment Discovery Period
First Sign-up – Only• Set uniform annual payment rate per land
use performance point for eligible land uses• After ranking and pre-approval• Use real-time acreage enrollment data on:
– Land use performance points generated– Costs incurred, income foregone, environmental
benefits– Funds available for annual payment
2009 Payment Discovery Period
Payment Mechanism Steps
1. Gather base data
• Total available funds for annual payment
• Total land use performance points• Estimate average cost per land use
point using cost data
2009 Payment Discovery Period
Payment Mechanism Steps
2. Apportion dollars to each land use
• Estimate total performance point cost per land use
Average cost per point X Total land use points• Estimate percent of total realized cost by land use• Multiply available funds by land use percent to
yield annual payment dollars available by land use
2009 Payment Discovery Period
Payment Mechanism Steps
3. Set the Payment Rate
• Divide the available annual payment dollars by the total land use performance points to estimate payment rate per point
2009 Payment Discovery Period
Payment Mechanism
• First Sign-up - Only• Payment mechanism talking points• Pre-approved applicants notified of
contract amount with opportunity to cancel
Questions?
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