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A portion of funding under the Environmental Quality
Incentives Program (EQIP) and acres allotted in the Conservation
Stewardship Program (CSP), which are administered by
USDA's Natural Resources Conservation Service (NRCS),
are set aside for beginning and socially disadvantaged
farmers. In EQIP, to the maximum extent possible, up
to 5 percent of funds are reserved for beginning farmers
and ranchers, and 5 percent for socially disadvantaged
farmers and ranchers. In CSP, 5 percent of the allotted
acres are reserved for beginning farmers, and 5 percent
are reserved for socially disadvantaged farmers. Funds
and acres not used for these groups by a certain date
are available for use by any type of farmer or rancher.
Beginning farmers are those who have operated a farm
or ranch for fewer than 10 years. Socially disadvantaged
farmers are those who are members of a group that has
experienced racial or ethnic prejudice. These groups
typically include Hispanics and non-Whites.
Program Overviews
EQIP provides technical
and financial assistance to help agricultural producers
and forestry managers implement conservation and environmental
improvements. Payments can be provided for a wide range
of practices, including nutrient management, livestock
waste handling, conservation tillage, terraces, and filter
strips. Socially disadvantaged, beginning, and limited-resource
farmers and ranchers are eligible for higher payment
rates for implementing certain conservation practices.
CSP provides payments to producers for maintaining or
adopting conservation activities that address a wide
range of local or national resource concerns. As with
EQIP, a wide range of practices can be subsidized. But
CSP focuses on land-based practices and excludes livestock
waste-handling facilities.
Economic Implications
Given the same selection criteria for all farmer groups,
setting aside funds (in EQIP) or acres (in CSP) for beginning
and socially disadvantaged farmers can increase participation
of those farmers if some eligible farmers' applications
are unlikely to be accepted without the set aside, and
the set-aside funds or acres exceeds the amount currently
claimed by eligible farmers.
EQIP contract data suggests a 5-percent set-aside of
EQIP funds may have little effect on participation, at
least for beginning farmers. Payments to beginning farmers
accounted for 12 percent of all EQIP payments in 2006.
This suggests the 5-percent set-aside funds would likely
go to beginning farmers who are able to participate in
EQIP even when funds are not set aside.
The 5-percent set-aside funds for beginning farmers
in EQIP may have more of an impact if administered at
the regional level. For example, payments to beginning
farmers in the Lake States region (including Michigan,
Minnesota, and Wisconsin) totaled less than 5 percent
of all EQIP payments in the region in 2006. Some beginning
farmers in this region who could not previously participate
in EQIP may be able to enroll with a regional 5-percent
set-aside. See a listing
of the States included in each region.
See Other Title II (Conservation) Program Provisions
See all ERS analysis
of program provisions...
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