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1 (September 11, 2008)

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                                                                       Order Code RS21613
                                                                Updated September 11, 2008





CRS Report for Congress



                   Conservation Reserve Program:

                       Status and Current Issues

                                    Tadlock Cowan
              Analyst in 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. It is the federal government's largest private land retirement
        program. The program is administered by the Farm Service Agency (FSA) of the U.S.
        Department of Agriculture (USDA), with technical assistance provided by USDA's
        Natural Resources Conservation Service. The CRP also has several subprograms, the
        best-known of which is the Conservation Reserve Enhancement Program (CREP).

            The 2008 farm bill (P.L. 110-246) reauthorizes CRP through FY2012 but lowers
        the maximum acreage level to 32 million acres, down from the previous cap of 39.2
        million acres. Haying and grazing conditions on CRP land are amended, and incentives
        are authorized to assist socially disadvantaged and beginning farmers in leasing or
        purchasing land under a CRP contract.
            August 2008 national enrollment stands at 34.7 million acres, down approximately
        2 million acres from September 2007. Most of this decrease was in North Dakota and
        South Dakota. USDA plans no general CRP sign-up in FY2008. A sign-up for critical
        feed use (CFU) haying and grazing was announced by USDA in May. A U.S. District
        Court issued a permanent injunction on July 24 against the CFU except for those who
        applied before a temporary restraining order issued on July 8. Between 2007 and 2010,
        27.8 million acres under CRP contracts will expire. Contracts for approximately 23
        million (83%) of these acres have been renewed or extended. This report will be
        updated periodically.


        CRP General 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
       control soil erosion, stabilize land prices and control excessive agricultural production.
       Since then, program purposes have been expanded to include environmental goals. The
       program is administered by USDA's Farm Services Agency (FSA), with technical
       assistance from USDA's Natural Resources Conservation Service (NRCS) and funding


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

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