2007 Farm Bill: What Can We Expect?

Remarks by Bruce I. Knight, Chief, Natural Resources Conservation Service, at US EPA Ag Sector Contacts Meeting

Annapolis, MD
June 1, 2006

Good morning, and thanks Beth (Sauerhaft). I appreciate the opportunity to be part of this panel to discuss what lies ahead for conservation on working agricultural lands.

I am eager to share with you some thoughts about the next farm bill, the future of conservation and how NRCS and EPA can work together for the benefit of farmers, ranchers and the environment.

The 2002 Farm Bill

Before we move to the 2007 farm bill, I think we need to look briefly at the current farm bill. The 2002 farm bill committed unprecedented resources—more than $17.1 billion in funding over 10 years—for conservation.

Working lands conservation programs are unique among agricultural programs because they are specifically designed to produce a double benefit. Farmers or ranchers who install conservation practices improve their land and enhance their natural resources. But the public also receives many benefits: a cleaner environment, increased biological diversity and a scenic landscape, to name just a few.

In the past four years, under the 2002 farm bill, we have

• Assisted 1 million farmers and ranchers in improving natural resources.

• Applied conservation on more than 120 million acres of working farm and ranchland.

• Invested $6.6 billion of the taxpayers’ funds directly with farmers and ranchers to produce environmental improvements that will benefit us all.

• Applied more than 14,000 comprehensive nutrient management plans.

• Launched the Web Soil Survey to make soils data available 24/7 over the Internet.

FY 2002 to 2005 Management Improvements

We’ve also made significant improvements in management in our agency—

• Streamlining payment processes and reducing paperwork for customers

• Establishing a process for rapid watershed assessment to provide initial estimates of where conservation investments can best address resource concerns.

• Implementing Geographic Information Systems and Global Positioning Systems.

• Improving program management by creating a pilot sign-up process for technical assistance and common easement and cost-share provisions where possible.

New Programs, New Tools

Under the 2002 farm bill, we’ve implemented a number of new programs and developed some new tools for producers. I want to mention just a few.

First and foremost is the Conservation Security Program—CSP—to recognize and reward outstanding stewardship and to enable and encourage the best stewards to do more.

Beginning with 18 watersheds in 2004, the program has expanded to cover every state for a total of 280 watersheds. CSP is offered on a rotational basis, and we’ll be announcing the results of this year’s sign-up within the next few days. It’s been a very popular program.

One of the most exciting aspects of CSP is the enhancement provisions, which encourage producers to achieve even greater environmental performance and additional benefits for society. For example, the energy component of CSP is rewarding farmers and ranchers for converting to renewable energy fuels such as soy bio-diesel and ethanol. CSP is helping innovative producers to push conservation technology to produce even greater conservation benefits.

Also new in the 2002 farm bill is the Grassland Reserve Program, which helps landowners restore and protect grassland through easements or long-term rental agreements. Demand for this program has been very strong. More than 3,000 landowners have participated, enrolling more than 900,000 acres.

In addition, we have two new grant programs that are part of our largest conservation program, the Environmental Quality Incentives Program. I should mention that the growth of EQIP from a $200 million program in FY 2001 to more than $1 billion in FY 2006 is one of the most significant changes brought about by the 2002 farm bill.

Just last week we awarded 38 grants totaling nearly $5 million in 2006 under the Cooperative Conservation Partnership Initiative. CCPI funds cooperative conservation projects involving state and local governments, tribes and nongovernmental associations. About $1 million of those funds will go for rapid watershed assessment projects.

Very shortly, we’ll be announcing results of the competition for up to $20 million for Conservation Innovation Grants to foster new and emerging conservation strategies and tools. These grants go to partners who want to test innovative conservation approaches and technologies with a view toward sharing them with farmers and ranchers who could benefit. We’ve been particularly interested in using these grants to foster market-based approaches to conservation.

Under the 2002 farm bill, we’ve also developed a number of new tools. I mentioned the Web Soil Survey, launched last fall. We now have soil survey maps and related information available online for more than 95 percent of the Nation’s counties. This has been extremely popular with our customers—and with conservation professionals.

Another tool introduced last December is our Energy Estimator designed to help farmers determine how much money they can save by switching from conventional tillage to no-till. They just need to plug in their zip code, their crops and acreage, and the price they expect to pay for fuel.

More recently, we added a nitrogen estimator, which calculates how much farmers could save by switching from fossil fuel fertilizer to manure or by using different fertilizer management strategies. Next week we will release a third component, which will help quantify savings gained from moving to more efficient irrigation systems.

Making any of these changes will boost the farmer’s bottom line AND benefit the environment at the same time.

USDA Farm Policy

I think you can see just from this brief summary that the 2002 farm bill has resulted in significant strides in conservation. Let’s turn now to the next farm bill.

Last summer and fall, the Department of Agriculture held 52 listening sessions in 48 states to find out what producers want to see in the next farm bill.
Comments at those sessions confirmed that conservation is important to farmers and ranchers.

Earlier this spring, USDA released 41 short papers summarizing the topics from the farm bill forums, and those are available on the USDA website: www.usda.gov.

Meanwhile, Department economists have been analyzing themes and developing papers based on their analysis. The first issue paper—focusing on risk management—was released and put on the USDA website in May.

Quite honestly, it’s the second paper that interests me the most. That’s the one on conservation. And it will be coming out very shortly.

These papers are intended to set forth the facts and encourage debate that will help us develop an integrated farm policy. That’s a policy that recognizes

• the importance of world trade—when American agricultural productivity grows about 2 percent each year—more than double U.S. population and consumption growth,

• the value of rural development—when farmers often have jobs off the farm,

• the ongoing need for research, development and market promotion,

• the impact of rising energy prices, and

• the value of conservation—both to producers and the environment.

2007 Farm Bill

So what will happen with the conservation title in the next farm bill? It’s too soon, obviously, to identify specific changes or provisions.

I’ve spent more than two decades working on farm policies. This will be my fifth farm bill, and I’m excited about the opportunities to continue the emphasis on conservation on working lands.

It offers us the chance to:

• Better integrate our programs
• Increase transparency
• Ensure that programs work for all producers, including limited resource and underserved farmers,
• Increase market-based approaches and
• Emphasize results—outcome-based measures.

What Lies Ahead

Regardless of exactly what provisions are included in the next farm bill, NRCS will continue with its mission of helping people help the land. I think our vision, defined in our new strategic plan, will also remain the same: productive lands, healthy environment.

Our strategic plan focuses on the long-term—5, 10, 15 years ahead—and identifies three overarching strategies—

• cooperative conservation,
• a watershed approach, and
• a market-based approach.

We expect to continue our efforts to promote

• high quality, productive soils;
• clean and abundant water; and
• healthy plant and animal communities.

But we’ve also looked beyond our traditional conservation issues to zero in on emerging resource concerns related to current economic and demographic trends, including:

• air quality,
• an adequate energy supply, and
• working farms and ranch lands.

Commitment to Work in Partnership with EPA

In addition, we’re looking to bring additional partners—in some cases non-traditional partners to the table. Over the past four years, I believe EPA and NRCS have forged a much stronger relationship that will benefit both agricultural producers and the environment for years to come.

We’ve focused on cooperative conservation, on voluntary approaches based on incentives. I know we’re shortly going to sign an MOU focused specifically on water quality trading and overcoming barriers.

I expect to continue meeting bi-monthly with Jon Scholl. I’m sure we’ll find other areas of mutual interest and support as we move forward.

Last week, Administrator Steve Johnson spoke at our joint Water Quality Credit Trading Conference, and he said that he sees in agriculture “producers of solutions not creators of problems.” That’s a new angle—and I think it’s the right one.

I agree with another statement he made as well—that we can accelerate the pace of environmental progress while maintaining the country’s economic competitiveness. Economic growth and environmental stewardship are complementary goals, not mutually exclusive ones.

We’ve established an ongoing dialogue that will serve both our agencies—and agricultural producers and the public—well. At the same time, we face some barriers.

On our part, understanding your regional structure and how this plays out with our locally-led, state-based operation. I’m sure our state and local structure, our priority-setting and decision making process involving the State Technical Committee and local individuals may be a challenge for you to understand.

The key is to continue our dialogue and partnership—on animal agriculture, rulemaking, water quality and other environmental issues.

Conclusion

We know that debate is heating up on the next farm bill. And there are many challenging issues—conservation, rural development, world trade—along with others.

Let me give you some unsolicited advice about the next farm bill—the same thing I tell the 12,000 people who work for NRCS. The best thing you can do to support development of the 2007 farm bill is just do your job—and do it well. Congress writes the farm bill—our job is to implement it.

It is an exciting time to envision new possibilities and new opportunities—both for strengthening the economic health of our Nation’s farmers and ranchers and improving our environmental progress.

This is my fifth farm bill—and I’m looking forward to meeting the challenge of developing the best possible farm policy and the most forward-looking farm bill to benefit our producers, our Nation and the environment.