CRP-1

Cooperative Extension Service
Purdue University
West Lafayette, IN 47907

There are good reasons to stay in CRP in at least a modified format.

The Purdue University Cooperative Extension Service Task Force on CRP has developed a series of publications that will help farmers plan the future of their CRP acres. This series includes an overview of the options available to farmers, along with publications discussing each option in more detail with references to available Extension material. This is the first article and is intended to provide a brief overview of options and issues related to CRP land.

Recent action by the U.S. Department of Agriculture provides farmers several options regarding their 10-year Conservation Reserve Program contracts. They can:

• extend contracts;
• withdraw from the program early;
• reduce the number of acres enrolled;
• or enroll new acreage (pending 1995 Farm Bill).

Policies change often, so farmers must keep abreast of what occurs in Washington to be able to make appropriate choices for their individual situations.

Decisions must be made with respect to water quality issues and the character of the land (topography, geology, soil types) in mind.

You must know what options are available from the government and how they may impact your operation.

When CRP contracts are terminated, producers have several options for use of released acres. They can:

• produce crops-with or without conservation compliance
• graze the land;
• produce forages;
• raise trees for timber, shelter belts. or windbreaks
• use for wildlife habitat
• use land for hunting for free or for a fee
• produce specialty crops (certified organically grown crops may be an option.

Requirements vary by crop and marketplace.);

• rent as crop land;
• sell the land.

In determining which option to use, a producer should evaluate future goals, inventory available resources, and determine the economic viability of each option. Use Figure 1 as a guide to this process questions also need to be answered:

• What are the producer's long-term goals? Will investments pay off if producer plans to retire or sell the farm?
• What investments are needed to make the land suitable for the desired use?
• Will there be serious pest problems for the desired use?
• How much debt will be incurred?
• What are the expected annual cash outflows per acre?
• What are the expected annual cash inflows per acre?

There are several factors to consider when deciding whether to keep CRP acres in a conservation program after contracts expire, or to return them to crop and livestock production. These factors include the following possible benefits of utilizing such a program:

• Tax advantages-In Indiana county property taxes can be reduced almost seven times on acreage that is officially classified wildlife habitat, forest, wetlands, riparian, filter strips, or windbreak.
• Income opportunities-Recently adopted Indiana Department of Natural Resources regulations permit land owners to charge for hunting on their property. But the owner assumes more liability for the safety of the hunter than for permitting free access.
• Continued environmental protection and water quality improvement-Soil erosion has been reduced by 700 million tons annually and sediment loading has been reduced by over 100 million tons per year.
• Maintenance and improvement of the agricultural sector's image of being good stewards of the land

Figure 2 shows in more detail items which may be considered at each point in the decision-making process.

Extension publications CRP-1 through CRP- 10 are intended to assist you.

These publications discuss in more detail each option and the factors to consider in making your decisions. CRP-2 should be useful as an inventory guide and can be used when considering any of the options.

Deciding to utilize land for other than CRP may require months to years to develop the desired use. Table 1 suggests time lines for various end uses.

CRP-1, After CPR: Know Your Options
CRP-2, Inventory Your Resources (PDF)
CRP-3, Manage Grain CropsCarefully
CRP-4, Attack Weeds Early<
CRP-5, Scout for Potential InsectProblems
CRP-6, Sample Soil Months Ahead
CRP-7, Hay It Or Graze It
CRP-8, Invest in the Future-Plant Trees
CRP-9, Earn Income from Recreational Uses
CRP-10, Diversity Crop Mix

THE PLANNING PROCESS

CRP-1.fig1.gif

Figure 2. A schematic representation of the decision-making process

TIME LINE, Putting CRP land to other use. *

Months Before     Hay/Pasture           Row Crop              Wildlife Area      Forestry/Timber     Wetlands
New Activity                                                                                        Development
------------------------------------------------------------------------------------------------------------------------
                 Evaluate Weed         Evaluate Weed
                  Species               Species
   1 -2 years    Treat woody weed      Treat woody weed
                  species & other       species & other
                  perennials            perennials

                 Soil Sample           Soil Sample           Evaluate Site       Evaluate Species   Develop a plan for
                 Examine Annual        Examine Annual        Develop plan for                       waterlands and
   6-9 months    Weed Problems         Weed Problems         Enhancement                            plants
                 Lime?                 Lime?                                                        Possible Funding
                 Can I Cashflow?       Can I Cashflow?       Funding             Estimate Costs     Sources

                 Order Fertilizer,     Order Fertilizer,     Examine State,                         Line up a contractor
   3-6 months    seed, herbicides      seed, herbicides      Federal Assistance, Order trees
                 Apply needed          Apply needed          Tax Incentives                         Investigate Tax
                 herbicides or tillage herbicides or tillage Order supplies, seed                   incentives

                                                                                                    Remove tile -
1-3  months      Tillage, if needed    Tillage, if needed    Treat undesirable   Treat undesirable  Develop
                                                             plant species       time species       Impoundment

Establishment                                                Seed desirable      Plant Trees        Seed desirable
                                                                                                    plants


Post                                                         Are practices
                                                              working?            Maintenance       Maintenance

                                                             Maintenance

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*Producers in government programs need to check with the NRCS to verify planned tillage or spray complies with the conservation plan.

Rev 1/96

Cooperative Extension work in Agriculture and Home Economics, state of Indiana, Purdue University, and U.S. Department of Agriculture cooperating; H. A. Wadsworth, Director, West Lafayette, IN. Issued in futherance of the acts of May 8 and June 30,1914. Purdue University Cooperative Extension Service is an equal opportunity/equal access institution.