Friday, May 25, 2012

USDA reserve to accept 3.9 million acres

The U.S. Department of Agriculture said Friday it would accept 3.9 million acres into its popular federal program that pays farmers and ranchers for taking environmentally sensitive land out of production. The USDA said the acres would bring total enrollment in its Conservation Reserve Program to about 29 million acres as of Oct. 1, the beginning of the government’s 2013 fiscal year. An estimated 29.6 million acres nationally are currently enrolled in the reserve, with contracts for 6.5 million acres set to expire on Sept. 30. The figure would still remain below the 32 million acre cap allowed by Congress. The USDA received nearly 48,000 offers on more than 4.5 million acres of land during the five-week sign-up period from farmers and ranchers across the country. Offers are examined for benefits in reduced soil erosion and improved air quality, water purity, wildlife habitat and long-term advantages. Rental payments would average $51.24 an acre. The 3.9 million acres of land could produce 178 million bushels of wheat, or 647 million bushels of corn, or 171 million bushels of soybeans, based on recent USDA projections for the 2012-13 crop year...more

Notice the implication: If these lands remained in production there would be more soil erosion and less air quality, water purity and wildlife habitat.

The primary purpose of this program, though, is political, as it is designed to bring enviros and farmers together to support the biggest boondoggle of all - The Farm Bill.   Enviros for wildlife habitat, etc. and farmers for supply control and a direct payment.

The article states, "But livestock producers have pushed for the land reserve to be cut, in order to increase crop production and potentially reduce the cost of feed."  Just a cut?  How about elimination. Anyway, a classic example of how government intervention to assist one sector damages another.

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