From Agri News, By Janet Kubat Willette
At first glance, the president's budget contains good news for the Conservation Reserve Program.
"In the 2006 budget, the administration is requesting $274 million for the Conservation Security Program, a 35 percent increase," the budget reads.
It looks good in those terms, said Minnesota Project senior policy analyst Loni Kemp, but it's really not good at all.
Each year's appropriation has to cover the current year payments for previous contracts, Kemp explained, so in reality the $274 appropriation leaves only $72 million for new contracts.
"We're flabbergasted that secretary Johanns said they're be 200 more watersheds next year," Kemp said.
With only $72 million to spread out, payments to individual producers will either have to decline or fewer people will be admitted to the competitive program that pays farmers based on conservation on working lands.
The upcoming 2005 signup shouldn't be impacted by the president's proposal, Kemp said.
Congress authorized spending $649 million in 2006 in the farm bill, so Bush's proposal is a 58 percent cut, Kemp said.
"We're glad to see the administration is committed to going forward on CSP, but this budget does not really let us continue at the same rate," Kemp said. Under the farm bill budget, it's estimated that each watershed will qualify for enrollment in the CSP once every eight years.
