**NEW MEXICO BULLETIN NO. 300-3-3**

# **SUBJECT: LTP-EQIP-GUIDELINES/INSTRUCTIONS FOR FY 2003 PROGRAM IMPLEMENTATION.**

**[Purpose:]{.underline}** To provide guidance on implementation of the
EQIP program for FY 2003.

**[Expiration Date:]{.underline}** September 30, 2003

This Bulletin provides guidance and instructions for implementing the
Environmental Quality Incentives Program in New Mexico for FY 2003.

# **Background**

The proposed final rule for the EQIP program changes, due to the new
Farm Bill, is to be available in mid-December 2002. There will be a
60-day comment period. The final rule should then be available once the
comments have been addressed and the final rule published in the federal
register. Once the final rule is published and funding becomes
available, NRCS can begin to sign contracts.

The program for New Mexico was reviewed with the State Technical
Committee at the December 4, 2002 meeting. Their comments were received
and are incorporated in this bulletin, with the understanding that there
may be changes subject to the final rule. The conclusion is that the
program needs to move ahead immediately and adjust to changes as the
rules are finalized.

This bulletin provides direction on implementing EQIP for FY 2003.
Additional information will be provided, as it becomes available.

# **The New Mexico EQIP Program for FY 2003**

The EQIP program in New Mexico has been changed to allow more input into
the program at the local level. Details on each of the following items
are available in the attachments.

-   A pool of EQIP funds will be established for each Field Office that
    has responsibility to serve one or more Soil and Water Conservation
    District.

-   The District Conservationist will work with the SWCDs to develop the
    Local Working Group(s) that will provide input to the District
    Conservationist on the EQIP implementation in the Field Office.

-   Local Work Groups will provide input at a minimum on these items:

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-   The data used to determine the pool of funds to the Field Offices.

-   List of eligible conservation practices to be cost shared in the
    Field Office.

-   Average costs for each component under each approved practice in the
    County Cost Docket.

-   Cost share rates for each conservation practice. The maximum rate is
    still 75.0%, except for limited resource and beginning farmers
    (additional info. will be sent out later on LRFs).

-   Setting of resource concerns priorities within the Field Office.

-   Establishment of batching periods.

-   Coordination of the EQIP program with adjoining Local Work Groups.

-   Ranking Criteria to be used in the Field Office.

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-   The District Conservationist will submit a proposed program for
    implementation, based on the Local Work Group input, to the State
    Conservationist for review and approval.

-   The approved program will be sent to NRCS national headquarters to
    be placed on the national web page for access by the public.

-   Applications will be ranked and compete within the Field Office
    proposed program. There will be no statewide competition.

-   District Conservationists will sign the plan and plan of operations
    (formerly the contract support document).

-   Field Team Leaders will sign the contracts (CCC-1200).

More detailed information and instructions are attached. *[District
Conservationists are to submit their program to the State
Conservationist by March 14, 2003.]{.underline}* A template will be
provided. All funds must be obligated into contracts by June 30, 2003,
so that re-allocation of unused funds can be made to other Field Offices
before Sept 30, 2003.

There will be many questions regarding implementation. Contact your
Field Team Leader, Mike Neubeiser or Ken Leiting.

# ROSENDO TREVIÑO III

# State Conservationist

Attachments

AO

**New Mexico**

**Natural Resources Conservation Service**

**Environmental Quality Incentives Program**

**FY 2003 Program Guidance**

EQIP Local Work Groups

Every Field Office will establish at least one EQIP Local Work Group and
will hold at a minimum one official EQIP Local Work Group meeting in
preparing for the EQIP program. It is possible to have more than one
local work group. This needs to be determined jointly by the Districts
and the District Conservationist. The Local Work Group will be convened
by the Soil and Water Conservation Districts and will establish its own
working procedures, including:

-   Organization

-   Decision-making procedure

-   Meeting dates, including timely notification of members.

-   Recording and distributing Local Work Group considerations, actions
    and decisions

-   Others as deemed necessary

Some Districts may wish to join with neighboring Districts and have one
common local work group.

Membership on the EQIP Local Work Group is to include SWCD supervisors,
FSA CED, FSA COC, other federal, state and local agencies, and tribal
governments. District Conservationists are to ensure that the following
agencies/entities are provided an invitation to the Local Work Group
meetings:

Federal Agencies

US Forest Service -- local Districts

Bureau of Land Management -- Area Mangers

Farm Service Agency -- County Executive Directors

Farm Service Agency County Committees -- Chairman

Bureau of Indian Affairs

US Fish and Wildlife Service

Natural Resources Conservation Service

State Agencies

Department of Agriculture -- Field Representative

New Mexico Department of Environment -- Regional Representative

New Mexico Game and Fish -- Regional Representative

New Mexico State Engineer -- Local representative

State Land Office -- Local Representative

Irrigation Districts

Local Agencies

County Extension Service -- Extension Agent

County Government -- Commissioner or County Manger

SWCD Managers

Tribal Governments

Tribes with land in the Field Office area. - Governor

The SWCDs may wish to hold larger **[stakeholder]{.underline}** meetings
that are open to the public. The District can gather information from
the stakeholder meetings and use that information in the Local Work
Group meetings.

**[Fund Distribution]{.underline}**

Each Field Office that serves one or more Districts will be assigned a
pool of funds based on the percent of range land, irrigated land, dry
cropland, woodland and animal feeding operations in the Districts. Only
one pool of funds will be made per Field Office. The District
Conservationist with lead responsibility for a SWCD will coordinate with
any other field office(s) that serves producers within that SWCD.

A spreadsheet listing the acres in the field offices by District and
County will be sent to the District Conservationists by January 10,
2003. This needs to be reviewed by the Local Work Group. Any recommended
changes to the acreage data should be submitted with the Proposed
Program.

If New Mexico receives a Tribal assignment of funds, the assignment will
be provided to the Field Office based on percent of Tribal Land in the
Field Office. If these funds cannot be used on tribal lands, they must
be re-allocated to other offices.

##### [Cost Docket]{.underline}

Cost Dockets will now be maintained on a county basis. The lead District
Conservationist must ensure that input is obtained from all other
District Conservationists who have service areas in the county. District
Conservationists are to obtain input from Local Work Groups. Supporting
documentation must be submitted to increase/decrease average costs or to
add a practice component. The county cost dockets will be used for all
Farm Bill programs, including WHIP, WRP, CSP etc. The draft county cost
docket will be provided to District Conservationists about January 10,
2003 for review with the Local Work Groups.

###### Eligible Practices

Most of the currently approved practices for use in EQIP are available
in Toolkit. However there have been some recent changes in the latest
NHCP notice. An updated list of approved practices will be provided to
the field by January 10, 2003. The Local Work Group should review these
practices and make recommendations on which practices should be cost
shared in the Field Office area.

**[Cost Share Rates]{.underline}**

The EQIP Program allows cost share rates up to 75% on all practices.
Local Work Groups should review and recommend the cost share rate for
all practices to be included in the local program. If the LWG wants to
recommend a cost share rate less than 75.0% for one or more practices
written justification must be included in the program proposal submitted
to the State Conservationist. (There may be some additional guidance
come when the rules are final.)

Cost share rates for limited resource or beginning farmers and ranchers
is set at 90% at the national level. (Rules are currently being
developed to finalize this provision. Some additional guidance will
follow)

**[Options for Priority Setting]{.underline}**

At the local work group level, special priority settings can be
implemented. This could be on a watershed basis or on a resource
concern, (irrigated land, or rangeland or animal feeding operations.)
This could include establishing a separate pool of funds with a separate
ranking criteria.

The following special considerations are being recommended to Local Work
Groups to consider in their deliberations. This could be providing
points in a ranking criteria or a separate pool of funds and separate
ranking criteria, for example.

-   Consideration should be given to assistance to listed (T&E) and
    potentially listed species in the area.

-   Water Quality concerns where TMDLs are completed and being
    developed.

-   Approved 319 projects or high quality proposed 319 projects.

-   Need for assistance with animal feeding operations where new
    regulatory requirements are impacting producers.

**[Coordination across Field Office and State Lines]{.underline}**

It is important that the EQIP programs that are developed at the local
level are coordinated across Field Office and State Lines. While the
programs do not have to be identical, there should be much similarity
when addressing the same resource concerns. To ensure this coordination,
District Conservationists must contact by phone or other method, the
District Conservationist in adjoining Field Offices in New Mexico and in
adjoining states. The purpose is to discuss the implementation of EQIP,
including: cost-share rates, eligible practices, primary component
costs, ranking criteria, etc. This will need to be documented when
submitting the EQIP program to the State Conservationist.

**[Batching Periods]{.underline}**

Local Work Groups can set their own batching periods. All funds must be
obligated in contracts by June 30, 2003. Funds not obligated with be
reallocated to other field offices.

###### Ranking Criteria

Ranking Criteria will be developed at the local level with the EQIP
Local Working Group. The rules for EQIP are to have some specific
details on ranking criteria. We will provide further guidance when those
rules are finalized. The Local Work Group can begin to discuss ranking
criteria, but criteria cannot be finalized until further notice.

###### State Policies

Listed below are state policies for implementing the EQIP program in New
Mexico. These will be incorporated into the new manual when it becomes
available. These policies are in effect immediately.

-   EQIP funds will not be used to develop land for crop production,
    including development of new cropland. To be eligible for EQIP, the
    land must have been in crop production (irrigated, if irrigated
    land) 4 of the last 6 years.

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-   Land that is in a planned long-term rotation may qualify. Certain
    unique situations, such as squaring off a field that includes a
    small area (1 acre) may qualify. These exceptions will be reviewed
    and a decision made by the District Conservationist, with input from
    the Soil and Water Conservation District.

## **[Proposed EQIP Program]{.underline}**

## 

## Each District Conservationist must submit to the State Conservationist a proposed EQIP Program for the Local Work Group and the area to be served. This proposed program will be reviewed by the State Conservationist who will accept, reject, or require revisions before the program can begin. *[Program implementation at the local level cannot begin without written approval from the State Conservationist.]{.underline}* The proposed EQIP Program is due to the State Conservationist by March 14, 2003. 

## 

## Once approved, the local program will be entered on the web for access by the public. For that reason, a template is being provided to submit the program. This template will be available about January 10, 2003.

##