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EQIP
Swine
Producers and the Environmental Quality Incentives Program
(EQIP) in the 2002 Farm Bill
BACKGROUND
- The
National Pork Producers Council (NPPC) worked closely with
Congress and the Administration on the Farm Bill and the
Environmental Quality Incentives Program (EQIP).
- They
were leaders in a coalition of livestock interests that
helped secure a total of $11 billion in EQIP funding over
ten years to help livestock producers of all sizes address
their most pressing water and air quality issues.
- $400
mil in '02, $700 mil in '03, $1 bil in '04, $1.2 bil.
in '05 and '06, $1.3 bil. in '07-'11.
- Sixty
percent of EQIP funds, on a national basis, will be directed
to livestock producers' conservation needs. This is an increase
from 50% of total funds in the last farm bill.
- USDA's
Natural Resources Conservation Service (NRCS) is planning
to produce "interim final regulations" for EQIP
before the end of the year. Interim final regulations will
allow USDA to begin implementing the program as final details
are being determined.
KEY POINTS
1. EQIP
must assist family owned and operated commercial swine operations
of all sizes.
- Environmental
issues must be addressed on both small and large operations
for EQIP to fulfill its environmental purposes.
- 80%
of hogs are produced on operations with more than 1000
AU's. Half of these hogs are produced on operations
with less than 10,000 animal units.
- Limiting
EQIP to operations with less than 1000 AUs would prevent
the program from addressing manure issues from 80% of
the animals in this sector!
- Congress
debated and finally adopted a "payment limit,"
as opposed to a size limit, to help ensure EQIP can, in
fact, meet this objective.
- Congress
adopted a $450,000 payment limitation for ALL contracts
entered into by an individual or single tax i.d. number
over the life of the farm bill.
2. The
costs of Comprehensive Nutrient Management Plans (CNMPs) and
the proposed CAFO rule will drive concentration in the livestock
sector.
- The
Clean Water Action Plan advocated that every animal feeding
operation obtain and implement a Comprehensive Nutrient
Management Plan.
- USDA
estimates the cost of full CNMP implementation for all animal
feeding operations at approximately $20 billion over 10
years.
- CNMPs
will be one of the 2 or 3 top new areas of emphasis in the
upcoming EPA Confined Animal Feeding Operation (CAFO) rule
(see the "CAFO Rule Fact Sheet").
- The
surest way to help independent producers stay independent
is to provide them with financial and technical assistance
to meet these costs.
- EQIP
can and should make a big contribution to helping swine
producers meet these costs.
- CNMPs
will be great business planning documents for swine producers,
as well as their operations' individualized blueprints to
improve their environmental performance.
- NPPC
is prepared to work with their members and state associations
to help educate swine producers to ensure they get the best,
most cost effective CNMP possible.
3. A large
number of the most critical EQIP implementation decisions
will be made by NRCS at the state and local level
- These
decisions will include:
- The
specific practices that will receive financial assistance
- The
cost share and incentive payment rates
- How
funds will be allocated across the state and to what
issues, and
- Many
others
- The
NRCS State Conservationists will be responsible for a large
number of these decisions.
- State
Conservationists will make extensive use of the State Technical
Committee to help guide these decisions.
- The
State Technical Committees and State Conservationists
are at work now on specific EQIP focuses for their state.
It is not too early for producers and their state associations
to get engaged to help make sure EQIP works in their
states.
- NPPC
will work with the state swine associations to ensure that
they are getting the assistance they need to help producers
participate effectively in this process and these decisions.
Testimony
June 15,
2004
Implementation
of the Conservation Title of the 2002 Farm Bill
EQIP
Issue for Farm Bill Hearing
Links
Natural
Resources Conservation Service
http://www.nrcs.usda.gov/programs/farmbill/2002/index.html
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