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1 (August 16, 2007)

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                                                                        Order Code RS21613
                                                                     Updated August 16, 2007





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 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. The CRP has
        several subprograms, the best-known of which is the Conservation Reserve
        Enhancement Program (CREP). In 2004, USDA 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.

            The July27 House-passed farm bill (H.R. 2419) reauthorizes the CRP at the current
        acreage cap of 39.2 million acres and makes provisions to facilitate the transition of land
        under CRP contracts from retired farmers to new and beginning farmers and socially
        disadvantaged farmers. The bill also directs the National Agricultural Statistical Service
        to conduct annual surveys of cash rental rates and to make these rates publicly available.

            Secretary Johanns has announced that there will be no general CRP sign-up in
        FY2007 and perhaps none in FY2008. Between 2007 and 2010, 27.8 million acres
        under CRP contracts will expire. Contracts for approximately 23 million (86%) of these
        acres have been renewed or extended. This report will be updated periodically.


        Current Issues

            House-Passed Farm Bill. On July 27, the House passed its version of the 2007
       farm bill (H.R. 2419). The bill reauthorizes the CRP at its current acreage cap of 39.2
       million acres established in the 2002 farm bill (P.L. 107-171). Other provisions include
       steps to facilitate the transition/sale of land subject to a CRP contract from a retired or
       retiring owner or operator to a beginning farmer or rancher, socially disadvantaged farmer
       or rancher, or limited resource farmer or rancher. This provision would permit the


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

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