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Enhancing Federal Support Enhancing Federal Support for Agricultural for Agricultural

Conservation in the Conservation in the Chesapeake Bay WatershedChesapeake Bay Watershed

The Federal Farm Policy Reform The Federal Farm Policy Reform ProjectProject

Chesapeake Bay Commission Marel Raub, Pennsylvania Director

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THE BAY IS A NATIONAL TREASURE: THE BAY IS A NATIONAL TREASURE: The World’s Largest, Most Productive EstuaryThe World’s Largest, Most Productive Estuary

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The U.S. FARM BILLThe U.S. FARM BILL is the primary is the primary Federal funding source Federal funding source to enhance funding for to enhance funding for agricultural conservation measures…agricultural conservation measures…With its With its reauthorization in 2007reauthorization in 2007, , making it work better is making it work better is a BIG priority. a BIG priority.

Thus, we have begun theThus, we have begun the

Federal Farm Policy Reform ProjectFederal Farm Policy Reform ProjectThus, we have begun theThus, we have begun the

Federal Farm Policy Reform ProjectFederal Farm Policy Reform Project

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TODAY’S GOAL: Identify needsIdentify needsShare some facts Share some facts Seek your recommendationsSeek your recommendations

TODAY’S GOAL: Identify needsIdentify needsShare some facts Share some facts Seek your recommendationsSeek your recommendations

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Over Over 90%90% of the of the Bay and its Bay and its tidal rivers are tidal rivers are impaired due to impaired due to low dissolved low dissolved oxygen levels oxygen levels and poor water and poor water clarity, all clarity, all related to related to nutrient and nutrient and sediment sediment pollution. pollution.

Over Over 90%90% of the of the Bay and its Bay and its tidal rivers are tidal rivers are impaired due to impaired due to low dissolved low dissolved oxygen levels oxygen levels and poor water and poor water clarity, all clarity, all related to related to nutrient and nutrient and sediment sediment pollution. pollution.

Impaired Water

FACT:FACT:

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FACT:FACT: While pollution comes from While pollution comes from many sourcesmany sources,, agriculture offers one of the greatest opportunities to agriculture offers one of the greatest opportunities to

improve water quality in the Bay and its tributariesimprove water quality in the Bay and its tributaries

Agriculture40%

Urban Stormwater11%

Grasslands7%

Point Source22%

Septic4%

Forest16%

Agriculture46%

Urban Stormwater16%

Grasslands12%

Point Source23%

Forest3%

Nitrogen Phosphorus

2003 Loads to the Tidal Chesapeake Bay by Source2003 Loads to the Tidal Chesapeake Bay by Source

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FACT:FACT: Tributary Strategies Tributary Strategies

are designed to are designed to remove the Bay from remove the Bay from the impaired waters the impaired waters list. All rely heavily list. All rely heavily upon agriculture to upon agriculture to

meet their watermeet their water quality goals.quality goals.

The Chesapeake Bay Watershed is broken into 36 Tributary Strategy Basins

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FACT:FACT: Every state is relying on agriculture to Every state is relying on agriculture to achieve the Tributary Strategy reductionsachieve the Tributary Strategy reductions

(2003-2010 Tributary Strategy delivered load reduction)

State Nitrogen(%)

Phosphorus(%)

Sediment(%)

Delaware 8989 9898 100100

Maryland 5454 6363 8383

New York 7171 4949 9191

Pennsylvania 7070 7272 9292

Virginia 5050 4848 8383

West Virginia 7575 5555 9090

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FACT:FACT: Agriculture is a Vital Component of the Agriculture is a Vital Component of the

Bay’s Economy, Landscape and CultureBay’s Economy, Landscape and Culture Nearly one-quarter of the land use in the watershed is

agricultural

Agriculture = 13% of the Bay region’s gross domestic product

4% of labor force is linked to agriculture

Crops make up two-thirds of ag production: corn, wheat and soybeans dominant tradable commodities

Poultry and milk are the region’s highest valued animal commodities

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FACT:FACT: Farmers are key stewards of the Farmers are key stewards of the environment, working on the frontlines to environment, working on the frontlines to protect the Bay and its riversprotect the Bay and its rivers

Buffer to Protect Water ways to Protect Water ways

Proper Nutrient & Manure Proper Nutrient & Manure ManagementManagement

Stream bank FencingStream bank Fencing

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FACT:FACT: Key Conservation Programs are Key Conservation Programs are DrasticallyDrastically Under Funded Under Funded

4 out 5 farmers are turned away due to inadequate funding 4 out 5 farmers are turned away due to inadequate funding when they offer to improve water qualitywhen they offer to improve water quality

0

50,000

100,000

150,000

200,000

2003 Unfunded 2003 Funded

Ap

pli

cati

on

s R

ecei

ved 1/5 th of Bay

farmers receive

the financial assistance they request

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FACT:FACT: Bay state farmers lose out Bay state farmers lose out on Federal Farm Bill fundingon Federal Farm Bill funding

Farmers in the Bay Watershed do not receive their fair share of Federal Farm Bill dollars, ranking near the bottom in terms of federal support for agriculture

For every $1 in Bay Watershed agricultural production, Bay farmers get back $0.01-$0.03 in Farm Bill support

North Dakota farmers get $0.17, and the national average is $0.06

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WHY? Because Most Funding WHY? Because Most Funding Goes to Commodity PaymentsGoes to Commodity Payments

Conservation spending Conservation spending represents $3.8 B represents $3.8 B of $29 B in total of $29 B in total Farm Bill payments to Farm Bill payments to farmers in 2005farmers in 2005

Source: USDA budget summary for 2005

Conservation's Part in USDA Payments to Farmers, 2005

Commodity Programs

64%

Conservation13%

Disaster Assistance10%

Crop Insurance (net cost)

13%

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Subsidy Funds Distribution Is Not Subsidy Funds Distribution Is Not Equitable – And the Bay Is Losing OutEquitable – And the Bay Is Losing Out

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Conservation Outlays In Relation Conservation Outlays In Relation to Total USDA Outlaysto Total USDA Outlays

FY2005FY2005

OBPA estimates that conservation outlays

will be $3.8 B out of a total of

$94.9 Billion

Source:  USDA Budget Summary for 2006. OBPA: Office of Budget and Program Analysis of USDA

4%

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FY 2004 FARM BILL FY 2004 FARM BILL Conservation Allocations by Conservation Allocations by StateState**

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

Bay States Percentage ofNational Total

4.3%4.3%

National Total: $3,215,991,120Bay States Total: $141,459,375

Source: USDA NRCS and FSA * Includes all state funds, not just watershed portion

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NEED:NEED: Roughly $700 Roughly $700

million annually to fully implementmillion annually to fully implementagricultural conservation measures agricultural conservation measures across 6 states in the watershed.across 6 states in the watershed.

HAVE:HAVE:

$$68 M/yr68 M/yr. in current Federal . in current Federal financial assistancefinancial assistance

for agricultural conservation for agricultural conservation in the in the watershed.watershed.

FACT:FACT: Farmers are committed – Farmers are committed – they would do far more if the resources were they would do far more if the resources were

there to support them. there to support them.

$141M state-wide

Source: USDA NRCS and FSA

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State/Federal Share of

Funding Gap

Calculations based upon historic cost

share

Maryland

State: 52% = 37 M

Fed: 48% = 34 M

Virginia

State: 44% = 55 M

Fed: 56% = 70 M

Ag Sector Conservation Costs and Income Annual by State Tributary Strategies (2005-2010)Annual by State Tributary Strategies (2005-2010)

Projected State Funds

Projected Federal Funds

Projected Deficit

Total Cost:100M

Total Cost:143M

Total Cost:215M

Source: MD, VA PA State Tributary Strategies

Pennsylvania

State: 52% = 90 M

Fed: 48% = 84 M

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Making the Farm Bill Work Better Making the Farm Bill Work Better for Farmers and the Bayfor Farmers and the Bay

Areas of OpportunityAreas of Opportunity

Conservation funding levels Regional distribution of funds Program Reforms to better address nutrients

and sediment challenges Harnessing energy from agricultural wastes

& crop residues Farmland preservation & wildlife enhancement

tools

2020

Key Farm Bill Conservation Key Farm Bill Conservation Programs for Addressing Bay IssuesPrograms for Addressing Bay Issues

Where is there room for improvement?Where is there room for improvement?

EQIPEQIP:: Cost share and incentive funding for Cost share and incentive funding for conservation practices. Water quality is one of conservation practices. Water quality is one of four national prioritiesfour national priorities

CREPCREP:: Rental payments and incentives for Rental payments and incentives for installing and maintaining buffers for water installing and maintaining buffers for water qualityquality

CSPCSP:: Program to reward good stewards of the Program to reward good stewards of the environment for on-going effortsenvironment for on-going efforts

WRPWRP:: Funding for creating and restoring Funding for creating and restoring wetlands for water qualitywetlands for water quality

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Desired Outcomes Desired Outcomes Federal Farm Policy Reform ProjectFederal Farm Policy Reform Project

Significant reductions in nutrients and sediments

Increased conservation funding Economically viable farming operations Better integration of farmers into Farm

Policy development

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What do you want to recommend?

Federal Farm Policy Reform Project

A project sponsored by the Chesapeake Bay Commission in support of Chesapeake Executive Council Directive #04-2