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1 (September 2, 2004)

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                                                               Order Code RS21613
                                                        Updated September 2, 2004



 CRS Report for Congress

              Received through the CRS Web




           Conservation Reserve Program:

                Status and Current Issues

                            Barbara Johnson
                      Analyst in Agricultural Policy
               Resources, Science, and Industry Division


Summary


     The Conservation Reserve Program (CRP), enacted in 1985, provides payments to
 farmers to take highly erodible or environmentally sensitive cropland out of production
 for ten years or more to conserve soil and water resources. It is the federal government' s
 largest private land retirement program. The program is administered by the Farm
 Service Agency of the U.S. Department of Agriculture (USDA), with technical
 assistance provided by USDA's Natural Resources Conservation Service. Congress
 most recently reauthorized and amended the CRP through FY2007 in the 2002 Farm
 Bill, the Farm Security and Rural Investment Act (P.L. 107-171, 16 U.S.C. 3831 et seq.).

     The 2002 law increased the CRP enrollment cap from 36.4 million acres to 39.2
 million acres, added wildlife resources as a program purpose, and allowed participants
 to extend some contracts up to 15 years. In August 2004, USDA announced the second
 general signup since the farm bill was enacted. This signup, which runs from August
 30 - September 24, 2004, allows landowners to submit bids to enroll acreage in CRP.
 USDA also announced two new CRP initiatives: one aimed at enrolling 250,000 acres
 of bobwhite quail habitat and a second to enroll 250,000 acres of wetlands located
 outside of floodplains. Landowners may apply to enroll in these initiatives any time
 from October 1, 2004 - December 31, 2007, or until the enrollment caps are reached.
 Finally, USDA requested public comment on long-term CRP policy issues (69 FR
 48447). Comments are due December 8, 2004. This report will be updated periodically.



 What Is the Conservation Reserve Program (CRP)?

    The Conservation Reserve Program (CRP) is the largest federal land retirement
program for private land. It was first enacted by Congress in 1985 to help control soil
erosion, stabilize land prices and control excessive agricultural production. Since then,
program purposes have been expanded to include environmental goals such as increased
wildlife habitat. The program is administered by USDA' s Farm Services Agency (FSA),
with technical assistance from USDA' s Natural Resources Conservation Service (NRCS)

       Congressional Research Service **o The Library of Congress

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