Posted by farmallsandcoops on October 10, 2012 at 11:24:50 from (69.57.203.41):
In Reply to: CRP posted by Fullers Farmalls on October 10, 2012 at 10:46:34:
CRP did start as a land-idling program in the mid1980s. They even offered a bonus for one year for corn base acres to be taken out of production and put in the program.
However, the program has shifted and within the last decade and has become much more of a conservation program. In fact, there are now likely around 6-7 million acres in the CRP that could be brought back into row-crop production without causing environmental damage. In other words, there are still more than 20 million acres in it that ARE environmentally sensitive (highly erodible, etc.).
The maximum acreage allowed in the program was reduced with the 2008 Farm Bill as a cost-saving measure. And the acreage level will be reduced again in the new bill -- again to save costs.
But it is a popular program. In the last 3 general signups (competitive bid type, not the continuous signup where you can enroll any time), around 50-60% of the land accepted in for a new 10-15 year contract were acres that had already been in the program. And the average rental payment under those general signup acres is MUCH lower than going cash rents -- nationwide average is around $50 per acre. Now you tell me where you can rent CROP land for that??!!
It has made a difference in some areas relative to creating more wildlife habitat.
Lot of the folks in it are elderly that just don't want to mess with either operating it themselves or dealing with renters, etc. Steady guaranteed income.
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