Colorado Rio Grande Conservation Reserve Enhancement Program (CREP)

Transcription

1 Colorado Rio Grande Conservation Reserve Enhancement Program (CREP)

2 WHERE ARE WE WITH CREP TODAY? PROPOSAL WRITTEN AND APPROVED. PEA CONTRACTED, WRITTEN, AND APPROVED. RE-VEGETATION STUDY IMPLEMENTED AND ONGOING. RIO GRANDE CREP AGREEMENT WRITTEN, APPROVED, AND SIGNED. FINALIZING HANDBOOK AMENDMENT. SCHEDULING TRAINING FOR ALL.

3 FISCAL CLIFF, THE FARM BILL, AND CREP 2008 FARM BILL NOT RE-AUTHORIZED ON OCTOBER 1, NO SPENDING AUTHORITY FOR MANY FARM BILL PROGRAMS, INCLUDING CRP. FB EXTENDED ONE YEAR ON JANUARY 1, 2013: CRP (including CREP) STILL AWAITING OFFICIAL RE- AUTHORIZATION BY SECRETARY OF AGRICULTURE AND FUNDING AUTHORITY FROM OMB.

4 How is CREP different than CRP? Offshoot of the Conservation Reserve Program (CRP) administered by Farm Service Agency. Voluntary Federal/State/Local Conservation Partnership. Requires a 20% non-federal match. Geographically Focused. Irrigated vs. Dryland Rental Rates.

5 Core Features of the Rio Grande CREP Target 40,000 acres only within Subdistrict # year contract with USDA-FSA. Converts irrigated farmland to permanent cover for 15 years= no cropping or irrigation during contract (irrigation permitted for grass establishment only). No irrigation on enrolled acres except to establish permanent cover.

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7 Objectives of the Rio Grande CREP Reduce agricultural water use by at least 60,000 acre-feet annually. Improve the Aquifer through voluntary incentive-based program. Increase streamflows in streams associated with the Rio Grande Basin within the project area. Restore and enhance wildlife habitat.

8 Objectives of the Rio Grande CREP, continued Reduce soil erosion. Reduce fertilizer and pesticide application over the total project area. Reduce energy consumption from an average of 144,704 kilo-watt per hour (kw-hr) to less than 5,000 k-w per pivot.

9 Re-Vegetation Requirements All range sites will be evaluated by range conservationists and others to ensure stand establishment is maximized based on conditions. Vegetation selection will ensure that cover will persist for the term of the contract after irrigation is removed. All Practices will likely require an annual cover crop before permanent cover is planted. Most Practices will require that irrigation be applied for cover crop and permanent vegetation establishment.

10 ENROLLMENT CRITERIA USDA-FSA DETERMINATIONS LAND ELIGIBILITY CROPPING HISTORY LANDOWNER ELIGIBILITY SUBDISTRICT #1 DETERMINATIONS OFFER LOCATION WATER USE WATER OWNERSHIP

11 IRRIGATION CRITERIA FOR ENROLLMENT ½ acre foot irrigation for 4 of 6 yrs as established by CRP s National Directives (currently ). Must have been: Irrigated with ½ acre foot per acre within 24 months Or Enrolled in Voluntary Fallowing Program within 24 months of being offered Physically and legally capable of being irrigated at time of offer Or Enrolled in voluntary fallowing program Non-irrigated land is ineligible for this CREP.

12 Incentives for the Rio Grande CREP USDA-FSA rental payments and cost share. Subdistrict Incentives for water retirement and Bonus Zone. Bonus payments for permanent water retirement and cost share from Subdistrict #1 WAE.

13 Federal Rental Rates and Cost-Share Federal funding accounts for approximately 80% of the project costs. The USDA-FSA administers and provides: Annual irrigated rental payments ($175/ac/yr)* Practice installation cost-share- 50% of cost *USDA-FSA Irrigated Rental payments have been approved by FSA at this time. The Annual Irrigated FSA Rental Rate for the RG CREP will be $175.00/acre/year.

14 Incentives: Non-Federal Dollars Non-federal funding and in-kind contributions must account for at least 20% of the total project cost. Subdistrict #1 will provide: Annual Incentives Annual Water Retirement Payment Bonus Payments (Bonus Zone, Perm. Water Retirement, etc.) In-kind contributions such as monitoring, reporting, and promotional efforts

15 Rio Grande Subdistrict # 1 CREP- USDA Contributions USDA-FSA irrigated Rental Rate- $175/acre/year = $2, total (15 years) USDA-FSA cost-share 50% of total cost of practice installation (~$100.00/ACRE)

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17 SUBDISTRICT #1 INCENTIVES FOUR SCENARIOS YEAR WATER RETIREMENT OUTSIDE BONUS ZONE YEAR WATER RETIREMENT INSIDE BONUS ZONE 3. PERMANENT WATER RETIREMENT OUTSIDE BONUS ZONE 4. PERMANENT WATER RETIREMENT INSIDE BONUS ZONE

18 Rio Grande Subdistrict #1 Contributions: 15 year Water Retirement (Non-Bonus Zone ) Annual Water Retirement Payment $22.00/acre/year for 15 years = $330.00

19 Rio Grande Subdistrict #1 Contributions: 15 Year Water Retirement (Bonus Zone): Annual Water Retirement Payment $33.00/acre/year for 15 years= $ Annual Rental Payment Bonus $10.00/acre/year for 15 years= $ One-Time Bonus Payment $100.00/ acre = $ One Time Cover Establishment Bonus Up to $100.00/ acre (cannot exceed total cost of establishment)

20 Rio Grande Subdistrict #1 Contributions: Permanent Water Retirement (Non-Bonus Zone ): Annual Water Retirement $44.00/acre/year for 15 years= $ Permanent Water Retirement Bonus $ per acre = $200.00

21 Rio Grande Subdistrict #1 Contributions Permanent Water Retirement (Bonus Zone): Annual Water Retirement $66.00/acre/year for 15 years= $ Permanent Water Retirement Bonus $ per acre = $ Annual Rental Payment Bonus $10.00/acre/year for 15 years = $ One Time Bonus Payment $ per acre = $ One Time Cover Establishment Bonus Up to $100.00/acre (cannot exceed total cost of establishment)

22 Estimated Payment Summary USDA Rental Payment within entire Subdistrict $175/ac/yr x 15 yr = $ Subdistrict Payments: Non-bonus Zone(15 year water retirement) = $ Bonus Zone(15 year water retirement)= $ (includes estimated c/s of $100.00) Non-bonus Zone(Permanent water retirement) = $ Bonus Zone (Permanent water retirement)= $ (includes estimated c/s of $100.00)

23 Estimated Program Costs (Based on 40,000 acres enrolled) USDA Total cost-share and rental payments: $109,000,000 Subdistrict #1 Total cost-share, rental payments and bonus payments: $27,345,565 In-Kind Contributions: $4,000,000 Total Program Costs = $140,345,565

24 NEXT STEPS USDA MUST RE-AUTHORIZE FSA TO ACCEPT NATIONAL CRP ACRES,INCLUDING CREP. OFFICE OF MANAGEMENT AND BUDGET MUST RE-AUTHORIZE ANY CRP SPENDING. FSA AND SUBDISTRICT CONTINUE TO WORK ON THE HANDBOOK AMENDMENTS. BOTH FSA STATE AND LOCAL OFFICES AND THE SUBDISTRICT ARE WORKING ON TRAINING.

25 Tim J. Davis, CREP Consultant Contacts Kathryn H. Radke, Program Manager CDWR x8217 Steve Vandiver, Manager Subdistrict #1 (719) Robert Phillips, Program Manager (719)