CRP contracts being renewed despite land prices

As land values continue to increase, Conservation Reserve Program land contracts are coming up for renewal. Despite the uptick in land and commodity prices, area Farm Service Agency offices are continuing to see renewals of existing contracts.

Jim Eiden, Lincoln County Farm Service Agency conservation officer, said he has seen some land taken out of CRP recently, but the majority of contracts have been renewed.

"There is some land coming out of CRP because of the commodity prices and the high cash rents and that sort of thing," said Eiden. "In Lincoln County it's hard to say, but there is some interest in some of the new programs in CRP."

The Conservation Reserve Program was started in the 1980s by the US Department of Agriculture as an erosion control program that has expanded into wildlife preserves and other environmental control measures, Eiden said.

"A lot of (CRP land) is being used to protect water," said Eiden. "We're putting filter strips on county ditches, streams, creeks, wetlands, to buffer those areas so sediment doesn't wash into those areas.

"You're starting see grasses planted for pheasants and that sort of thing," he said.

The program is administered by the USDA Farmer Service Agency. The FSA contracts with landowners, paying rent on land put into CRP. Landowners are able to use the land for hunting but are unable to grow crops during the contract period.

Carl Wendel, Yellow Medicine County USDA Farm Service Agency executive director, said much of the CRP land in his county would be considered "marginal."

"Most of the land we have in Yellow Medicine County that is in CRP is pretty marginal and shouldn't be cropped anyway," said Wendel. "Farmers realize that and they're not going to get a whole lot out of it."

Wendel said the county has about 10,000 acres currently in CRP. He said some land has come out, but more land has come in to keep things stable.

"We're probably in the 10,000 to 12,000 acres of land. It has been fairly stable over the years," said Wendel. "We had more acres a few years ago because of how CRP was originally set up in the 1980s. People would have entire farms in CRP. Those have come out but retained portions of the land in CRP."

The FSA has been adjusting rental payments for landowners in CRP as values have gone up, Eiden said.

"Our CRP rates have been going up, we're paying more dollars per acre, we don't set the cash rent but we try to stay competitive," said Eiden.

Wendel said the prices paid to landowners are based on soil types and locations.

"The prices are determined a lot based on soil types and fertility of the soil," said Wendel. "The higher-productive soils don't get the higher prices through CRP. Sometimes the soils that are more fragile and where they are located makes a big difference.

"If we're protecting a wetland or a stream bank, those types of soils tend to generate higher prices," Wendel added. "Those are the types of areas farmers like to leave in CRP."

Eiden said landowners often find some benefit in placing land in CRP, including preserving other land that is less marginal for agriculture.

"A lot of people when they see a filter strip on a county ditch, they want to keep that land in CRP. They actually find it a benefit."

Eiden said landowners are often looking for alternatives to agriculture, including hunting, because the land isn't as suitable for crop agriculture.

"Most of the CRP ground is poorer ground," said Eiden. "You might have an older person that doesn't want to deal with a renter and they're happy with their (CRP) payment. You have people that are coming from out of the area to pheasant hunt and they look at CRP as being a bonus."

Despite some benefits to producers and landowners, Eiden said there will be some areas that will likely come out of CRP because of commodity prices.

"Some of the high cash rent is taking some of the better land out of CRP and I think it will continue to do that if these commodity prices continue to be high," said Eiden.

Eiden said a loss of some land out of CRP doesn't mean the program is losing traction.

"There is a lot of conservation in this new farm bill," said Eiden. "I'm signing up a lot of new CRP contracts right now."