A national voluntary program that originated from USDA Programs In FY 1995, the USDA spent an estimated $3.5 billion on voluntary resource conservation and other environmental programs and activities, many of which addressed water quality (see chapter 6.1, Conservation and Environmental Programs Overview). USDA uses six broad approaches to achieve conservation and environmental goals, including: (1) technical assistance and education, (2) financial assistance (cost-sharing and incentive payments), (3) public works projects, (4) rental and easement programs, (5) data and research programs, and (6) compliance programs “linked" to commodity and other USDA program benefits. Typically one or two of these approaches are evident in the many programs and activities USDA has used to address USDA research programs complement the other five approaches. Activities include: (1) research on new and alternative crops and agricultural technologies to reduce agriculture's harmful impacts on water resources; (2) research that estimates the economic impacts of policies, programs, and technologies designed to improve water quality and prevent pollution; and (3) environmental and conservation data collection. USDA also administers competitive grants and coordinates conservation and water quality research conducted by State Agricultural Experiment Stations and land grant universities. The 1996 Federal Agriculture Improvement and Reform Act (1996 Farm Act) continues the same approaches but, beginning in 1997, consolidates some Addressing Water Quality in the 1996 Farm Act The Federal Agriculture Improvement and Reform Act of 1996 (the 1996 Farm Act) made significant changes in how USDA provides support to landowners for adopting conservation practices. The Act combined the functions of the Agricultural Conservation Program (ACP), Great Plains Conservation Program (GPCP), Water Quality Incentives Projects, and Colorado River Salinity Control Program into a single program, the Environmental Quality Incentives Program (EQIP). EQIP is to provide financial assistance to farmers and ranchers such that environmental benefits per dollar expended are maximized. Whereas previous USDA conservation assistance was often available on a first-come, first-serve basis to farmers and ranchers, EQIP will be targeted to priority conservation areas and identified problems outside of priority areas. Assistance will be provided only to those farmers and ranchers facing the most serious threats to soil, water, and related natural resources, including grazing lands, wetlands, and wildlife habitat. Contracts will be for 5 to 10 years, giving farmers the chance to learn to use new practices successfully. Cost-sharing may pay up to 75 percent of the costs of installing approved practices. The annual payment limit is $10,000, with a maximum of $50,000 per contract. Half of the appropriated funding for the program is targeted at practices or systems relating to livestock production. However, owners of large confined livestock operations (generally over 1,000 animal units, but States may request another definition based on environmental circumstances) are not eligible for cost-share asistance for installing animal waste storage or treatment facilities. The Conservation Farm Option of the 1996 Farm Act is a pilot program that will provide producers of wheat, feed grains, cotton, and rice who have acres enrolled in production flexibility contracts the opportunity to receive one consolidated payment for implementing a 10-year conservation plan in lieu of separate payments from CRP, WRP, and EQIP (see chapter 6.1, Conservation and Environmental Programs Overview). Table 6.2.2-Summary of ACP expenditures and acres treated for water quality purposes, FY 1991-95 Agricultural Conservation Program (ACP) The ACP provided financial assistance to agricultural producers to help solve a wide range of agricultural conservation and environmental problems, including water quality. Program activities included prevention of soil loss, water conservation, improvement of water quality, conservation of forest and wildlife resources, and pollution abatement. With several important exceptions, ACP funds were not targeted to specific geographic areas. About 100 technical practices were eligible for ACP cost-share funds. Up to 75 percent of the total cost of implementing the practice could be payed by ACP, with a maximum of $3,500 per recipient per year. ACP also reimbursed the Natural Resources Conservation Service (NRCS) for technical assistance in planning and implementing technical practices. ACP was traditionally used to address soil erosion and water conservation issues. In recent years, as concern over water quality grew, more ACP resources were devoted to water quality practices. Cost-share expenditures on practices whose primary purpose was water quality rose from $13.4 million in 1988 to $44.2 million in 1994 (table 6.2.2), or from 7.1 percent of ACP expenditures to 23.1 percent (USDA, CFSA, 1995a). By 1994, almost all of USDA's water quality cost-share funds came from ACP. Evidence suggests that profitability is the primary factor for farmers adopting new practices (Logan, 1990; Camboni and Napier, 1994; Magleby and others, 1989). Practices most frequently cost-shared by ACP included conservation tillage, irrigation water management, and nutrient management. All have been shown to increase net returns in many parts of the country. Conservation Technical Assistance (CTA) Conservation Technical Assistance provides technical assistance to farmers for soil and water conservation and water quality practices, and is administered by NRCS. CTA provides technical assistance to farmers adopting practices cost-shared under ACP, and to other producers who ask for assistance in adopting approved NRCS practices. In 1995, the CTA program spent $7.6 million on water quality-related assistance, apart from those activities directly related to the Water Quality Program (see below). This includes assistance provided to programs run by agencies other than USDA (see below). Water Quality Incentive Projects (WQIP) The Water Quality Incentives Projects was created by the 1990 Food, Agriculture, Conservation and Trade Act, and was administered as an ACP practice. The goal of WQIP was to reduce agricultural pollutants through sound farm management practices that restore or enhance water resources compromised by agricultural nonpoint source pollution. Areas eligible for WQIP included: watersheds identified by States as being impaired by nonpoint source pollution under Section 319 of the Clean Water Act; areas identified by State agencies for environmental protection and so designated by the Governor; and areas where sinkholes conveyed runoff directly into ground water. A total of 242 projects were started during FY 1993-95. Eligible producers entered into 3- to 5-year agreements with USDA to implement approved management practices on their farms, as part of an overall water quality plan, in return for an incentive payment. The WQIP supported 39 different practices for protecting water quality (table 6.2.3). Consistent with practices funded under ACP, these were the conservation practices most likely to increase net farm returns. Integrated Crop Management (ICM) Integrated crop management was instituted in 1990 on a trial basis as part of the ACP. ICM promoted the efficient use of pesticides and fertilizers in an environmentally sound and economical manner. ICM provided 75-percent cost sharing, not exceeding $7 per acre for most field crops or $14 per acre for horticultural and specialty crops. Cost sharing was Health and environmental risks from pesticide applications were apparently reduced by ICM in some instances, while in others they were increased. An index that accounts for risks to farmworkers, consumers, and the environment from pesticide applications indicated that ICM generally reduced risks in its first year (Dicks and others, 1991). However, ICM impacts were not uniform. About 40 percent of the sampled farms demonstrated a net increase in the index or a negative environmental impact, often due to a change in the mix of chemicals used. Producers switched to chemicals that can be applied at lower rates but leach more easily or are more toxic. Simply reducing chemical applications may not provide adequate environmental protection from pesticides. The toxicity or leaching characteristics of new chemicals must be considered, as well as changes in application strategies. Colorado River Salinity Control Program (CRSCP) The Colorado River Salinity Control Program was started in 1984 to identify salt source areas in the Basin; assist landowners and operators in installing practices to reduce salinity in the Colorado River; carry out research, education, and demonstration activities; and monitor and evaluate the activities being performed. The Colorado River is the primary source of water for over 18 million people in Arizona, California, Colorado, Nevada, New Mexico, Utah, Wyoming, and Mexico. Water is used for irrigated agriculture, generating hydroelectric power, and municipal and industrial purposes. CRSCP was jointly administered by USDA and the U.S. Department of the Interior. The Bureau of Reclamation constructed salinity control structures for water distribution systems, and USDA provided technical and financial assistance to help irrigators implement improved irrigation systems. The improved irrigation systems were designed to increase irrigation efficiency and to reduce the movement of salt into the ground water. Efforts included installing more efficient sprinklers, installing pipe, and lining delivery canals. Landowners who wish to participate, once their application was approved, submitted to a contract of 3 to 10 years. Besides agreeing to build and install the salinity control project, the landowner agreed to operate and maintain the project for as long as 25 years. The cost-shares mitigated the upfront costs of more efficient systems, which might otherwise have discouraged landowners. Through 1994, 150,000 acres had been treated, out of 360,000 acres originally identified as needing treatment (U.S. GAO, 1995b). The program has conserved about 300,000 acre-feet of water (USDA, CFSA, 1995b). Salt loadings are down 191,223 tons per year (U.S. GAO, 1995b), 38 percent of the total reduction believed possible. The cost-effectiveness of the project ranges from $38 to $70 per ton of salt removed (U.S. GAO, 1995). Salt levels at the three monitoring stations have remained below the limits instituted under the Clean Water Act, thus satisfying the program's goal. USDA's Water Quality Program In 1990, USDA made a commitment to protect the Nation's waters from contamination by agricultural chemicals and waste products by establishing the Water Quality Program (WQP). The WQP was in response to a Presidential initiative in the 1990 budget for enhancing water quality. The initiative integrates the combined expertise of four Federal departments (USDA, EPA, Interior, and Commerce) to promote the use of environmentally and economically sound farm production practices, and to develop improved chemical and biological pest controls. The WQP in 1996 was in its seventh year, with annual expenditures ranging from $83 to $116 million (table 6.2.4). The WQP strives to (1) determine the precise nature of the relationship between agricultural activities and water quality; and (2) develop, and induce the adoption of, technically and economically effective agrichemical management and agricultural production strategies that protect surface- and groundwater quality (USDA, 1993). The WQP contains three major components: (1) research and development; (2) education, technical, and financial assistance; and (3) database development and evaluation. The scale of the program, and the integration of research and database development with the traditional education, technical, and financial assistance projects, makes this program unique to USDA. Originally intended as 5-year program, USDA funding for limited program activities is projected beyond 1999 (USDA, ERS, 1994). WQP research has improved our understanding of the relationship between water quality and production practices in the Midwest. In particular, the Management System Evaluation Area (MSEA) efforts have resulted in a number of improvements in nitrogen management, herbicide management, crop management, and irrigation water management. The MSEA findings are improving USDA's ability to provide farmers with information on practices that are sound economically, agronomically, and environmentally. The Hydrologic Unit Area (HUA) and Demonstration Projects (DP), which target education, technical, and financial assistance in areas with known agricultural pollution problems, have shown progress in: Nitrogen management. Through 1993, nitrogen management practices (including cover and green manure crops) have been implemented on 1 million acres, about 46 percent of the 5-year goal for the 90 |