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1 (February 14, 2007)

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                                                                         Order Code RS21613
                                                                   Updated February 14, 2007





C RS Report for Congress



                   Conservation Reserve Program:

                        Status and Current Issues

                                     Tadlock Cowan
        Analyst in Agriculture, Natural Resources, and Rural Development 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. CRP has
        several subprograms, the best-known of which is the Conservation Reserve
        Enhancement Program (CREP).

             Congress reauthorized and amended the CRP through FY2007 in the 2002 farm bill
         and increased the CRP enrollment cap from 36.4 million acres to 39.2 million acres.
         Congress also added wildlife resources as a CRP objective and allowed participants to
         extend certain contracts up to 15 years. Along with a general sign-up in 2004 for
         landowners to submit bids to enroll acreage, USDA also announced two CRP initiatives:
         one to enroll 250,000 acres of bobwhite quail habitat and a second to enroll 250,000
         acres of non-floodplain wetlands. Landowners may apply to enroll in these initiatives
         any time through December 31, 2007, or until the enrollment caps are reached.

             Between 2007 and 2010, 28 million acres under CRP contracts will expire, with
         16 million acres in 2007 alone. In June 2006, USDA announced that contracts for
         approximately 13 million acres were renewed. An additional 1 million acres were also
         added under the latest general sign-up. Reenrollments for contracts expiring 2008-2010
         were announced in late summer 2006. This report will be updated periodically.


         Background

            The Conservation Reserve Program (CRP) is the federal government's largest land
        retirement program for private land.! It was first enacted by Congress in 1985 to help


        This report is an updated and revised version of a report originally written by former CRS
                                                                        (continued...)

                  Congressional Research Service   The Library of Congress
                        Prepared for Members and Committees of Congress

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