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RCED-95-87R 1 (1995-02-03)

handle is hein.gao/gaobacksu0001 and id is 1 raw text is: United States General Accounting Office Washington, D.C. 20548 Resources, Community, and Economic Development Division B-260031 February 3, 1995 The Honorable Pat Roberts Chairman The Honorable E (Kika) de la Garza Ranking Minority Member Committee on Agriculture House of Representatives The Food Security Act of 1985 authorized a number of new programs designed, in part, to reduce wind and water erosion caused on crop-producing land. Under one of these programs--the Conservation Reserve Program (CRP)--farmers could sign 10- to 15-year contracts (beginning in 1986) with the U.S. Department of Agriculture (USDA) to remove certain erodible or environmentally sensitive cropland from production in return for annual federal payments. In preparing for hearings on the 1995 farm bill, you asked if we could determine on a national basis the proportion of CRP payments made to tenants versus landlords. We could not make this determination because USDA does not categorize the approximately 375,000 CRP contracts in this manner in its data base. USDA categorizes CRP contract holders in its data base as owner, operator, owner/operator, or other producer. None of these categories are clearly tenant or landlord. Although USDA's classification is not exact, as explained further in this correspondence, and funding cannot be definitively broken out between tenants and landlords, some insights can be drawn from the available data. For fiscal years 1990 through 1994, USDA's data base shows that 46 percent of CRP contract holders are categorized as owner/operator. USDA officials believe that these individuals farm their own land and should be neither a tenant nor a landlord. These contract holders received 53 percent of all payments, or about $4.2 billion, over the 5-year period. To determine specifically which of the remaining individual CRP contracts were held by tenants or landlords would require extensive and timely reviewing or sampling of GAO/RCED-95-87R, CRP Payments

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