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March 2007, Week 2

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Subject:
FW: USDA ANNOUNCES RESULTS OF INTENTIONS TO RE-ENROLL AND EXTEND CRP CONTRACTS
From:
Neila Seaman <[log in to unmask]>
Reply To:
[log in to unmask]
Date:
Mon, 12 Mar 2007 08:10:02 -0600
Content-Type:
text/plain
Parts/Attachments:
text/plain (111 lines)
Release No. 0058.07  Contact: Keith Williams (202) 720-4623/Stevin
Westcott (202) 720-4178

USDA ANNOUNCES RESULTS OF INTENTIONS TO RE-ENROLL AND EXTEND CRP
CONTRACTS

WASHINGTON, March 8, 2007 - Agriculture Secretary Mike Johanns today
announced new results of the recent opportunity given to
Conservation Reserve Program (CRP) participants to re-enroll or
extend their contracts, which are set to expire between 2007 and
2010. An estimated 23.9 million acres out of 28 million acres of
eligible CRP contracts are expected to be re-enrolled. An estimated
4.1 million acres in CRP contracts will exit CRP between 2007 and
2010. Of the 4.1 million acres, approximately 1.4 million acres are
located in major corn producing states.

"The percentage of landowners choosing to remain in CRP is
consistent with what we have seen in the past, despite speculation
that re-enrollment would drop significantly due to high corn
prices," said Johanns. "We are closely monitoring interest in CRP
re-enrollment, planting projections and demand for commodities to
determine the most appropriate future actions in administering the
Conservation Reserve Program," Johanns said.

The 4.1 million-acre estimate includes all general sign-up expiring
contracts that were not extended or re-enrolled under last year's
offer. It does not include acres under expiring continuous sign-up
contracts, which will be eligible to be re-enrolled during the final
contract year.

Last year, USDA's Farm Service Agency (FSA) contacted more than
317,000 CRP participants with these USDA Commodity Credit
Corporation (CCC) contracts to determine their interest in
continuing in CRP. FSA, which implements CRP on behalf of CCC,
divided the group into 2007 expirations and 2008-2010 expirations.
The 2007 expirations included 15.7 million eligible acres out of 16
million total expiring acres. The 2008-2010 expirations included
12.1 million eligible acres out of 12.5 total expiring acres.

Last spring, FSA asked CRP participants with CCC contracts set to
expire in 2007 to confirm their interest in re-enrolling or
extending by paying a compliance fee. A recent review of the data
shows CRP participants have paid the fee on 89 percent of the
acreage, or 13.9 million acres of the 15.7 million acres set to
expire in 2007. Of the 13.9 million acres, landowners decided to
extend or re-enroll 13.1 million acres in CRP contracts so far.
Before approving re-enrolled or extended contracts, FSA must ensure
that the required cover is maintained and that other contract
provisions are met. In addition, participants must demonstrate show
that they meet eligibility requirements for the new enrollment
period. In the case of re-enrollments, updated rental rates will
apply.

Last summer, CRP participants with CCC contracts expiring in 2008
through 2010 were asked to express their interest in re-enrolling or
extending. To date, these contract holders have paid the compliance
fee covering 83 percent of the acreage, or 10.1 million acres of the
12.1 million acres set to expire. Tables showing state and county
acreage for which the fee has been paid for 2008- through
2010-expiring contracts are available at: http://www.fsa.usda.gov.
Updated tables based on the latest fee payment data for
2007-expiring contracts are also available at the same site. Acres
with compliance fee payments do not represent final approval to stay
in the program. Final figures of producers who sign contracts may
vary.

FSA has estimated a revised schedule of contract expirations, based
on compliance fee payments and data on contracts accepted for
re-enrollment and extension. It can be found in the Monthly
Summaries (page 16 of the Jan. 2007 Monthly Summary) posted on the
"CRP Statistics" Web page at: http://www.fsa.usda.gov. Also included
in the summaries is a state table (page 15 of the Jan. 2007 Monthly
Summary) showing acres of 2007-expiring contracts that have been
approved for re-enrollment or extension and recorded in the CRP
contract database. FSA will update the estimates as CRP participants
make their final decisions known.

USDA does not plan to conduct a general sign-up for Fiscal Year 2007
or 2008. However, continuous sign-up of high-priority buffers,
wetlands and other initiatives, as well as Conservation Reserve
Enhancement Program, will continue. USDA encourages farmers and
ranchers to consider these opportunities.

CRP is America's largest private-lands conservation program, with
more than 36 million acres enrolled. Under CRP, farmers and ranchers
plant grasses and trees in crop fields and along streams. The
plantings stop soil and nutrients from washing into regional
waterways and contaminating the air. They also provide habitat for
wildlife. Over its 20-year history, CRP has amassed a wealth of
benefits for the United States at an average cost of less than
$49.00 per acre annually. Through Jan. 2007, CRP has restored two
million acres of wetlands and two million acres of buffers. CRP
effectively reduces soil erosion across the United States by 454
million tons each year.

USDA News
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202 720-4623

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