Capturing Incentives for Environmental Stewardship - Validus Can Help : Capturing Incentives for Environmental Stewardship - Validus Can Help
Dennis Pate
Director of Planning
August 2005
Who is Validus? : Who is Validus? For profit, limited liability company
Works with all commodity groups
Uses the best of former NRCS/SCS planners
Who is Validus? (cont.) : Who is Validus? (cont.) Services Offered:
Conservation planning
Comprehensive nutrient management planning
Nutrient management planning
CSP preparation
Record keeping
Permits
New site assessments
Third party environmental audits
And, other producer needs
Potential NRCS Financial Assistance : Potential NRCS Financial Assistance
Environmental Quality Incentive Program (EQIP)
Conservation Security Program (CSP)
EQIP Purpose : EQIP Purpose A voluntary program to assist farmers and ranchers install conservation practices that provide environmental benefits.
National EQIP Priorities : National EQIP Priorities Reduction of:
Pollutants
Emissions
Soil Erosion
Promotion of at-risk species habitat recovery
EQIP Rules : EQIP Rules Payment Limitation- $450,000 (2002-07) per individual or entity
No size limitation
Cost-share up to 75%
Ranking System
If funding for waste storage facility, must have a CNMP
What you Need to Know to Use EQIP : What you Need to Know to Use EQIP Congress appropriates of funds to NRCS (Washington)
NRCS (Washington) appropriates to NRCS (State)
State Conservationist, with assistance of State Technical Committee, decides
NRCS District Conservationist, with assistance of local work group decides
EQIP Process-State/Local Level Decisions : EQIP Process-State/Local Level Decisions Practice Lists
Ranking Systems
Possible Payment Caps
Cost-Share Rates
And, Incentive Levels
If You Want EQIP Funding : If You Want EQIP Funding Do Your “Leg Work”
---Decide what you want:
-What practices?
-How does this fit National Priorities?
-What cost-share rate/incentive
payment is needed to get the practice
installed?
If you want EQIP Funding : If you want EQIP Funding
Provide Input
--State Technical Committee
--Local Working Group
Apply for the practices you want
Summary : Summary Know the Programs purpose
Remember the National Priorities
Determine what you want and how it fits program purpose/national priorities
Identify eligible practices and ranking criteria to get what you want
Meet with the State Technical Committee and/or the Local Working Group
Apply
Conservation Security Program (CSP) : Conservation Security Program (CSP) Purpose:
To reward those who are applying and documenting the pinnacle of good land stewardship on working land.
In short, “to reward the best and motivate the rest”.
Offered only in designated watersheds each year
Conservation Security Program (CSP) : Conservation Security Program (CSP) Producer expected to provide “proof” of eligibility (benchmark inventory)
Self-assessment workbook
Treatment Practices
Records
Applied Conservation Practices
Tillage System
Fertilizer/Nutrient and Pesticide Applications
Irrigation Management
Grazing Management
Conservation Security Program (CSP) : Conservation Security Program (CSP) General Eligibility:
Must have eligible working land (generally crop or pasture land)
Must share in the risk of producing crops/livestock
Must be in compliance with the highly erodible land and wetland requirements (HEL/wetland)
Must have control of land for length of contract
Majority of the agricultural operation in the eligible watershed
Must have completed a benchmark condition inventory
Payments for 5 to 10 Year Contracts : Payments for 5 to 10 Year Contracts Up to 4 Parts:
Stewardship
Existing Practices (Maintenance)
New Practices (One-Time)
Enhancement Payments
The more conservation, the more $$
2005 CSP Enhancement Payments in the Raccoon River Watershed, Iowa : 2005 CSP Enhancement Payments in the Raccoon River Watershed, Iowa Resource Practice Annual Payment/Unit
Soil Soil Conditioning Index (SCI) of .1 $1.16/acre
Soil SCI of .1.7 $19.72/acre
Nutrients No fall anhydrous applied $2.00/acre
Nutrients Split N application in spring, late spring N test $4.00/acre
Pest control Cultural pest mgt. (branding, Bt corn) $5.00/acre
New cons. Practice Filter Strip $200/acre (50%)
New cons. Practice Grass Waterway $1970/acre (50%)
New cons. Practice Wetland Enhancement $1500/acre (65%)
New cons. Practice Windbreak $4/foot (65%)
2005 CSP Enhancement Payments in the Raccoon River Watershed, Iowa (cont.) : 2005 CSP Enhancement Payments in the Raccoon River Watershed, Iowa (cont.) Resource Practice Annual Payment/Unit
Energy Soil Tillage Intensity
Rating (STIR) 31-60 $.50/acre
Energy Soil Tillage Intensity $.90/acre
Rating (STIR) less than 15
Energy Recycle motor oil $200/year
Energy Use Biodiesel or Ethanol $25/100 gal./year
Energy Energy Audit $500 each
Energy Use manure for 90% of $1.10/acre
plant needs
2005 CSP Enhancement Payments in the Raccoon River Watershed, Iowa (cont.) : 2005 CSP Enhancement Payments in the Raccoon River Watershed, Iowa (cont.) Resource Practice Annual Payment/Unit
Wildlife habitat Filter or buffer strips
protecting water body $20/acre
Wildlife habitat No-till planting $2.00/acre
Wildlife habitat Habitat transition zone planting $20.00/eacre
Wildlife habitat Interseed, manage
native grasses $20.00/acre
Wildlife habitat Basking areas (up to 4) for
reptiles & amphibians $10.00/each
Wildlife habitat No cropping of wetlands,
farmed wetlands $200/acre
Wildlife habitat Mix 4 species of native plants,
including a forb $60/acre
Conservation Security Program (CSP) - Cropland : Conservation Security Program (CSP) - Cropland
Minimum eligibility requirements:
Cropped 4 of 6 years prior to 5/13/2002
SOIL QUALITY: Benchmark inventory shows applying and maintaining practices to provide a Soil Conditioning Index (SCI) of “0” or higher:
Based in large part on the amount and type of tillage operations
Enhancement payment for every 0.1 above “0”
2 years or more of records to document implementation and maintenance
Conservation Security Program (CSP) : Conservation Security Program (CSP) Minimum eligibility requirements specific to cropland: (cont.)
WATER QUALITY: current treatment that addresses risks from nutrients, pests, sediment (erosion treated), and salinity by meeting or exceeding NRCS Tech Guide Requirements:
Records (2 years or more) to document implementation and maintenance
Conservation Security Program (CSP) : Conservation Security Program (CSP) Minimum Eligibility Requirements Specific to Grazing Land:
Vegetation and animal management by following grazing management principles;
Forage/animal balance, proper livestock distribution, timing of use, erosion treated, nutrient/pest management
2 years of records to document implementation and maintenance
Managed access by livestock to surface waters
Tier Levels : Tier Levels Tier Resource Concerns Amount of Land Contract Annual
Length Payment Cap
1 * Soil Quality Part of Operation 5 years $20,000
* Water Quality
2 * Soil Quality Total Operation 5 – 10 yrs. $35,000
* Water Quality
* Local during Contract
3 * Soil Quality
* Water Quality
* Irrigation
* Wildlife
* All others that Apply to the Site
* Have Riparian Zones Treated Total Operation 5 – 10 yrs. $45,000
Watershed Eligibility : Watershed Eligibility
Is it Worthwhile? : Is it Worthwhile? 2004 Average Payments
Watershed State Contracts Acres Ave. 2004 payment, by Tier
Tier 1 Tier 2 Tier 3
Auglaize OH, IN 189 103,573 $8,877 $15,442 $15,060
Blue Earth MN, IA 281 152,565 $9,946 $22,112 $19,640
East Nishnabotna IA 147 33,669 $5,742 $9,753 $10,399
Kishwaukee IL 191 130,314 $6,838 $28,496 $20,430
Little River MO, AR 189 146,358 $9,355 $24,567 $25,962 Lower Chippewa-WI 209 67,636 $4,066 $8,223 $16,595
Lower Little Blue-NE, KS 144 69,039 $5,448 $11,549 $18,016
St. Joseph IN 218 111,123 $7,521 $17,360 $24,064
In reality, may be better off if not yet in a watershed : In reality, may be better off if not yet in a watershed TIME TO GET READY!
Validus Suggestions to be Ready : Validus Suggestions to be Ready Get a conservation plan or CNMP
Implement your conservation plan or CNMP
Keep good records
When you do this, at least some part of your operation will likely be eligible
What’s in a Conservation Plan? : What’s in a Conservation Plan? Control erosion to “T”*
Nutrient Management*
Pest Management*
Grazing System*
Wildlife Habitat
* Required for every CSP contract where applicable
What is a Comprehensive Nutrient Management Plan? : What is a Comprehensive Nutrient Management Plan? A subset of a conservation plan that deals with the animal feeding operation
Identifies needed conservation practices and management activities on all land where manure is to be applied
How to Get Ready Now for CSP? : How to Get Ready Now for CSP? A conservation plan or comprehensive nutrient management plan will help your manual for practicing good conservation as part of a business responsibility:
Get organized-- CSP asks for 2 years’ detailed records by field (tillage, nutrient and pest management applications, prescribed grazing system)
Get credit ($$$) for current management & conservation practices; Step up management for higher payments
Get into CSP without a conservation plan or a Comprehensive Nutrient Management Plan? : Get into CSP without a conservation plan or a Comprehensive Nutrient Management Plan?
Possible, but less likely.
In addition, Environmental actions cause reactions. The plan looks at relationships to coordinate total resource care.
Why implement a conservation plan? …or a comprehensive nutrient management plan? : Why implement a conservation plan? …or a comprehensive nutrient management plan?
Meet EPA storm water discharge standards (if you feed livestock).
Get ready for CSP (the Conservation Security Program).
Review your operation for efficiencies (Look at costs, reductions).
Be a good neighbor and steward
Planning Documents for Regulations/USDA Program Eligibility : Planning Documents for Regulations/USDA Program Eligibility State NMP CNMP Cons. Plan
State Regs. 4 4 4
EPA CAFO ? 4 4
EQIP waste facility 4 4
CSP eligibility 4 4
CSP higher tier 4
Once Implemented Keep Records 2 year minimum, 5 better : Once Implemented Keep Records 2 year minimum, 5 better Soil Quality
Tillage: Type, when, % residue after planting
Erosion Control: when applied; when /what maintenance
Grazing: Practices to keep livestock out of water
Once Implemented Keep Records 2 year minimum, 5 better (cont.) : Once Implemented Keep Records 2 year minimum, 5 better (cont.) Water Quality
Current Soil Tests-Results when taken; manure tests; crops; yields/yield goals
Nutrients: Rates applied, date, method, tissue tests, equipment calibration, etc.
Pesticides: Pest targeted; brand/name, EPA negotiations no.; crop, rate applied, date, method, weather conditions, applicator no., buffers applied, setback distances, etc.
Rational Grazing: # Pastures, plant & species when rotated-dates, # head/livestock, supplemented feed, etc.
Irrigation: Crop, timing, method, amounts applied, etc.
Once Implemented Keep Records 2 year minimum, 5 better (cont.) : Once Implemented Keep Records 2 year minimum, 5 better (cont.) Rational Grazing: # Pastures, plant & species when rotated-dates, # head/livestock, supplemented feed, etc.
Irrigation: Crop, timing, method, amounts applied, etc.
Validus Suggestions : Validus Suggestions Get a conservation plan or CNMP
Apply your conservation plan or CNMP
Keep good records
When you do this, at least some part of your operation will likely be eligible
Validus Can Provide Technical Help : Validus Can Provide Technical Help Experience to assist producers from over 170 Validus planners that represent over 4000 years of experience
Assist in Developing:
Comprehensive Nutrient Management Plans (CNMPs)
Conservation Plans
Documenting benchmark conditions
Implementing Record Keeping System
Financial Help for Planning : Financial Help for Planning Conservation Plan
Little or None
CNMP
Some TSP assistance from USDA
Iowa, 3% state loan
Is Planning Financial Help Needed? : Is Planning Financial Help Needed? If…
The plan, when implemented, with good record keeping basically:
assures CSP participation for 5 to 10 years
Provides CAFO storm water exemption information
Questions - Discussion : Questions - Discussion
Contact : Contact
Denise Pate, Director of Planning
Validus
515-278-8002
pated@validusservices.com