FARM BILL PROGRAMS

&

CLIMATE CHANGE

Leveraging USDA Conservation DollarsMarch 27-28, Lied Lodge & Conference Center, Arbor Day Farm

Martha NobleSenior Policy Associate

Sustainable Agriculture Coalition Founded 1988

National coalition of grassroots family farm, conservation, rural development member groups

Farm Bill Wins: SARE, Conservation Security Program, Value-Added, Farmers Market Promotion, Organic Cert. Cost Share, Wetlands Reserve Program, and more…

www.sustainableagriculture.net

Photo Credits: Practical Farmers of Iowa (top) Land Stewardship Project (bottom)

Rapid Global Climate Change Greenhouse effect (major GHGs)

Carbon dioxide (CO2) Methane (CH4) Nitrous Oxide (NOX)

GHG emissions Observed changes

Warming More extemes Sea-level rise Glacial, ice-cap melting Seasonal shifts

see www.ipcc.ch

U.S. GHG Emissions Allocated to Economic SectorsSource: Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2005 (EPA #430-R-07-002)

0

500

1,000

1,500

2,000

2,500

3,000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Year

Tg C

O2

Eq

Transportation

Electricity Generation

Industry

Residential

Agriculture

Commercial

Contribution of Sectors to GHG EmissionsGlobal Anthropogenic GHG Emissions for 2000 at sector level (MtCO2eq/yr)Table 3.2: Global Anthropogenic GHG Emissions -Sectors Detail for 2000 (MtCO2eq.)Sector sub-total & Percent of Total Sub-sectors CO2 CH4 N2O F-gases

Coal 8,133 451

ENERGY Nat Gas 4,800 895

25,098 Petroleum Syst 10,476 62

67% Stationary/Mobile Sources 59 224

LUCF and Agriculture (net) 3,435

LUCF 1 and Soils 2,607

AGRICULTURE Biomass 491 187

9,543 Enteric Fermentation 1,745 - 25% Manure Management 224 205

Rice 649 -

Cement 829

Adipic & Nitric Acid Prd 158 INDUSTRY HFC-23 95

1,434 PFCs 106 4% SF6 55

Substitution of ODS 2 191

WASTE Landfills 781

1,448 Wastewater 565 81 4% Other 11 11

Total All GHG 37,524 27,671 5,933 3,472 447

Gas as percent of total 74% 16% 9% 1%

Notes: 1/ LUCF is Land-use change and forestry. 2/ HFCs are used as substitutes for ODSs in a range of applicationsSources: Weyant et al, 2006.

Agriculture and Potential GHG Emission Reductions GHG Sequestration

Organic Farming Systems Conventional conservation tillage and crop rotations Cover crops Managed grazing systems

GHG Avoided emissions Energy Conservation Biofuel production Thermal bio-power and bio-heat Renewable electrical power (wind, solar, and biomass)

GHG Emission reductions Manure management (especially CH4 control) Fertilizer practices (especially less synthetic fertilizer)

Organic Farming Systems: Lower Inputs Plus . . .

Organic production:

“responds to site-specific conditions by integrating cultural, biological, and mechanical practices that foster cycling of resources, promote ecological

balance, and conserve biodiversity.”

National Organic Program, Section 205.2

Organic Farming: Energy, Water and Climate Change

Organic agricultural practices can be the most effective strategy currently available for mitigating CO2 emissions.

High correlation between increased soil carbon levels and very high amounts of mycorrhizal fungi. These fungi help slow down the decay of organic matter.

Carbon was sequestered into the soil at the rate of 875 lbs/acre/year in a crop rotation utilizing raw manure 500 lbs/ac/year in a rotation using legume cover crops.

Implementing organic farming practices on a national basis will depend on two factors: a strong bottom-up demand for change a top-down shift in state and national policy to support farmers in this

transition.

Source: Regenerative Organic Farming: A Solution to Global Warming, The Rodale Institute, 2008

Total Mandatory Spending on Organic Agriculture: 2002 and 2008 Farm Bills

TOPIC 2002 2008

Certification cost share programs $5 million $29.5 million

Research $15 million $78 million

Production and market data collection No specific funding $5 millionfor organic

TOTAL $20 million $112.5 million

In 2000, separate from the Farm Bill process, an additional $5 million was allocated for certification cost share for farms in specific states.

Source: Organic Trade Association, Summer 2008

Selected Farm Bill Opportunities For Organic

2008 Farm Bill: Conservation Related Opportunities for Organic Farmers & Ranchers Conservation loans. USDA’s loan program for the costs of some conservation

improvements will now include a priority for farmers converting to organic conservation systems.

EQIP Organic Conversion Assistance. A new provision to support the transition to organic production, with support payments up to $20,000 per year, but no more than $80,000 over six years, excluding any money given for technical assistance. Support is also available for technical assistance in making the transition, within the general technical assistance system of the USDA’s conservation programs.

Conservation Stewardship Program. New provision streamlining coordination between CSP and the National Organic Program. This “cross-walk” provision is intended to make it much easier and simpler for organic producers to qualify for CSP and be rewarded for the conservation benefits of their organic system.

Conservation Reserve Program. If a retiring owner with land enrolled in this program transfers it to a beginning, socially disadvantaged, or limited resource farmer, the new bill allows for the farmer to whom the land is being transferred to begin the organic certification process up to one year before the CRP contract expires, with additional two years CRP payment to a landowner not related to the buyer.

2008 Farm Bill: Grassland & Managed Grazing Conservation Reserve Program: cropland/marginal pasture to permanent

cover – CO2 sequestration / lowered NOX from row crop farming / limited grazing and haying allowed. Also allows tree planting.

Sodsaver (limited to Prairie Pothole National Priority Region at request of governor).

Grasslands Reserve Program. Carbon sequestration with perennial grassland.

Wetlands Reserve Program (CO2 sequestration with some concerns about methane levels).

EQIP / CSP: managed grazing / pasture improvements, etc.

Energy Conservation:NRCS Energy EstimatorsUSDA’s Natural Resources Conservation Service (NRCS) has

developed four energy estimators to help farmers and ranchers identify where they can reduce their energy costs:

Animal Housing Irrigation Nitrogen Tillage

http://energytools.sc.egov.usda.gov/

Farm Bill Conservation Title --

Programs with Energy Related Aspects

Conservation Stewardship Program (2008)<<Conservation Security Program (2002)>>

Environmental Quality Incentives Program (EQIP)

Conservation Innovation Grants

Conservation Reserve Program

Conservation Security Program (2002 Farm Bill)

2002 Farm Bill CSP included “energy conservation measures” in the list of conservation measures that could be implemented under a CSP contract

For the 2005 CSP sign-up, NRCS included CSP payments for energy enhancement activities (CSP08)

Conservation Security Program:Energy Enhancement Activities

Performing a professional energy audit of farm/ranch operations

Recycling of all farm equipment lubricants

Maintaining a Soil Tillage Intensity Rating (STIR) of less than 60, 30, or 15

Using annual or perennial legumes in the rotation

Supplying 90% of crop nitrogen needs with legumes, manures, and/or other organic sources

Purchasing biofuels (biodiesel and/or ethanol) for farm operations

Producing renewable energy on farm

Reducing farm or ranch energy consumption by 5, 10 or 15% below an established baseline level (baseline will be established during an energy audit)

http://www.nrcs.usda.gov/programs/CSP/cspenergy05.html

Maryland Farm Energy Site Assessments: Building on the CSP Energy Provisions

In 2005, the Maryland NRCS State Conservationist included payments for energy audits in the CSP program for selected Maryland Watersheds. Subsequently, Maryland NRCS built on this CSP experience to help establish a Maryland Farm Energy Site Assessment program, with numerous partners.

Tiffany Laws, Farm Bill Program Specialist, USDA Natural Resources Conservation Service, Annapolis MD. More information on the program is posted on the web at --http://www.md.nrcs.usda.gov/technical/energy.html.

2008 Farm Bill Conservation Stewardship Program Voluntary program providing payments for maintenance/adoption of conservation

practices that: Address a state-defined resource concern Are operated beyond a threshold resource/environmental management level Does not have a list of specific concerns but likely to include concerns from

2002 Farm Bill CSP

Replaces/revamps the 2002 Conservation Security Program beginning FY2009 Tiered payment system eliminated Watershed-based eligibility eliminated

Specific provision for resource conserving crop rotations which can work with biofuel production / perennial crops

Energy conservation likely to be retained – regulations for the Conservation Stewardship Program will be issued in 2009

2008 Farm BillEnvironmental Quality Incentives Program (EQIP) Voluntary program providing financial and technical

assistance to protect water, air and soil quality and wildlife habitat by implementation and management of conservation practices on livestock and cropping operations.

2008 Farm Bill expanded NRCS to include energy conservation and fuels management in EQIP’s purposes.

EQIP already funded numerous conservation practices related to energy efficiency and renewable energy but implementation varies widely from state to state.

EQIP: Connecticut NRCS State Conservationist Example -Energy Conservation and Energy Efficiency Practices (CT)

Group I: Practices include thermal blanket insulation in greenhouses, maple sap pre-heater, combination maple sap pre-heater and evaporator, maple sap reverse osmosis, and energy efficient irrigation pumps on irrigated cropland.

Participant has construction plans for all energy conservation or energy efficiency projects prior to EQIP application.

Plans completed by an independent contractor at the participant's expense and be reviewed by NRCS for adequacy. Plans shall contain specifications and a detailed cost estimate.

Group II: practice includes solar hot water production, electricity production using solar photovoltaic cells or windmills, and geothermal heating systems.

Participant has a feasibility study conducted for all proposed systems prior to EQIP application. The study conducted by an independent contractor at the participant's expense and reviewed by NRCS for adequacy prior to submitting an EQIP application. The feasibility study must show a favorable cost-benefit for the project as determined by NRCS.

Construction plans shall also be completed by an independent contractor at the participant's expense and be reviewed by NRCS for adequacy. Plans shall contain specifications and a detailed cost estimate.

Conservation Innovation Grants

Conservation Innovation Grants (CIG) program is a voluntary program intended to stimulate the development and adoption of innovative conservation approaches and technologies while leveraging Federal investment in environmental enhancement and protection, in conjunction with agricultural production.

Under CIG, Environmental Quality Incentives Program funds are used to award competitive grants to non-Federal governmental or non-governmental organizations, Tribes, or individuals. CIG enables NRCS to work with other public and private entities to accelerate technology transfer and adoption of promising technologies and approaches to address some of the Nation's most pressing natural resource concerns.

Part of CIG funding is administered by NRCS at the national level. In addition, NRCS State Conservationists administer state CIGs.

Conservation Innovation Grants

Examples of 2008 Grants to Energy Projects White River Irrigation District Pumping Plant

Energy Audit and Reporting System (AR) ($531,833)

Pine Ridge Winery Modular Biopower for Conservation of Winery Biomass Residues for On-site Heat and Power (CA)($560,134)

Georgia RC&D Energy Conservation Planning - Broiler Operations (GA)($275,000)

2008 Farm Bill Energy Title Rural Energy for America Program (REAP)

Energy audits and technical assistance grants Loans and grants for energy efficiency improvements and

renewable energy systems

Biomass Crop Assistance Programassistance for farmers participating in “next generation” bioenergy feedstock production projects and forest landowners involved with forest biomass energy projects; project selection criteria includes priority for projects with lower impacts on soil, water and wildlife-related concerns.

USDA Office of Ecosystem Services & Markets The 2008 Farm Bill requires the USDA Secretary to establish technical guidelines that

outline science-based methods to measure the environmental services benefits from conservation and land management activities in order to facilitate the participation of farmers, ranchers, and forest landowners in emerging environmental services markets.

In 2008, an inter-departmental Conservation and Land Management Environmental Services Board (“Board”) was established to assist the USDA the Secretary in adopting the technical guidelines and science-based methods to be used by the Federal Government to assess environmental service benefits of conservation and land management.  The Secretary serves as Chair of the Board, and the Chairman of the Council on Environmental Quality and the Administrator of the Office of Information and Regulatory Affairs in the Office of Management and Budget serve as Vice-Chairs of the Board.  Board membership consists of other executive branch officials. 

USDA has also established an Office of Ecosystem Services and Markets to provide administrative and technical assistance to the Secretary in implementing section 2709 of FCEA, including assistance in carrying out the Secretary’s duties as Chair of the Board. 

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Contact: Aimee Witteman // awitteman@sustainableagriculture.net