# Presentation: 373539

## FAPD Net ConferenceThursday February 8th, 20071 PM ET

- Access #: 888-626-1832
- Passcode: FAPD

## AGENDA

- Opening Remarks 				Harry Slawter
- Environment Quality Incentive Program (EQIP)	Edward Brzostek
- A. CNMP Initiative
- Business Tools Team (BTT)			Mary Grande
- A. Tools to monitor eligibility
- B. Changing Terms and Conditions with 152 form
- C. Contract Transfer
- D. Application “History Module Enhancements”
- Conservation Security Program (CSP)		Dwayne Howard
- A. CSP Items
- Questions and Answers				All

## EQIP – CNMP National Initiative

- National Bulletin LTP - 300-7-10 Published February 2, 2007

## Background

- EQIP Statute – CNMP development eligible for financial assistance incentive payments
- EQIP Rule – allows financial incentive payments to be of an amount necessary to encourage participant to develop CNMP

## Explanation

- CNMPs were specifically emphasized in the EQIP Statute as a priority.
- The number of CNMPs developed through EQIP has not met program expectations.
- The agency has made a commitment to improve on the number of CNMPs developed using EQIP financial incentive payments.

##  National CNMP Initiative

- Incentive payment may cover all costs associated ( including an amount needed for TSP services) to encourage producers to have CNMPs developed.

## CNMP Initiative Requirements

- Completely voluntary for States to utilize
- Only for FY 2007 and future years
- Only for livestock-related contracts
- Funded totally with financial assistance funds already allocated to states

## CNMP Initiative and ProTracts

- Two cost share components will added to all 2007 uploaded cost lists by 2/15/07

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- This two item list will be distributed to all state EQIP program managers and should be appended into all Toolkit cost lists and new (not yet uploaded) ProTracts cost lists.

## Unit cost = zero is fully editable in applications and modifications. 

States need to determine and communicate the appropriate unit cost for animal units and/or acres and monitor compliance with that value during application approval or modification approval.

- States need to determine and communicate the appropriate unit cost for animal units and/or acres and monitor compliance with that value during application approval or modification approval.

- CNMP Initiative and ProTracts

## CNMP Initiative and AERT

- If code 100 was included in the ranking tool either of these two components can be included in the application via select online practices or upload from Toolkit.
- If code 100 was not included in the ranking tool either of these two components can be added only through a contract modification.

## Information Campaign

-    The following will be sent via email to State Program Managers the week of 2/12/07:
- A Sample Notification Letter.
- Spreadsheet containing eligible participant information from ProTracts as of 2/12/07.*
- Instructions for using Mail Merge.  (thanks to Kathy Green)
- Forward as appropriate to field offices.
- *New applicants will have notification handled separately.

## How will CNMP Initiative be implemented

- States can decide to offer or not offer the CNMP initiative – some States may have already ranked and selected applications for funding

## CNMP Initiative Implementation

- States may want to set up separate State fund pool to reserve money for this initiative similar to the 1 percent suggested for cost overruns for current year contracts.
- All funds to be obligated before ProTracts year end close out.
- Target date for Initiative closeout is August 31st.

## CNMP Initiative Implementation

- Reserved State Funds can be reallocated from state level to the local level for this initiative as needed for the initiative
- Can also encourage local offices to set aside funds for this initiative as appropriate with understanding that all funds must be committed by March 15, 2007.

## CNMP Initiative

- Although this CNMP roll out may be a little late for some States for 2007, it will definitely give all states the opportunity to use this cost-based financial incentive method for CNMP development for FY 2008.

## Comprehensive Nutrient Management Plan (CNMP)Development of Payment Rate Scenarios for Financial Assistance

## 180 - Conservation Planning and Application Part 600 - National Planning Procedures Handbook 600.53 - General Criteria for CNMP Development

## Documentation of the AFO owner’s/operator’s consideration of the six CNMP elements.1. Manure and Wastewater Handling and Storage2. Land Treatment Practices	3. Nutrient Management4. Recordkeeping5. Feed Management6. Other Utilization Activities http://www.nrcs.usda.gov/technical/nutrient.html (National Statement of Work)

## Payment rate scenarios should be develop for typical operations. 

-   Include soil sampling, manure analysis costs, manure handling, and land treatment planning costs at a minimum.
-   Work to minimize the number of scenarios.
-   Reflect the _actual cost_ to the producer.
-   Consider the impacts of scale.
-   Recognize points where significant increases or decreases in cost  occur.
-   Document actual costs for each scenario.

## CNMP Scenario Size Payment Rate Waste Storage and Handling < 100 animal units (AU)$28/AU Waste Storage and Handling > 100 AU, but < 200 AU $24/AUWaste Storage and Handling > 200 AU, but < 300 AU $20/AUWaste Storage and Handling> 300 AU with a 400 AU cap $16/AU 

## CNMP Scenario Size Payment  Rate Land Treatment < 100 acres (ac.) $30/ac.Land Treatment > 100 ac., but < 200 ac.$26/ac.Land Treatment > 200 ac., but < 300 ac.$22/ac.Land Treatment > 300 ac. with a 400 ac. cap $18/ac. 

## Example:  A livestock operation with 150 animal units and 450 acres requests to take part in the CNMP Initiative.  The State decides to use both units as the best methodology for providing the CNMP payment.Animal Unit Scenario:  Payment rate calculation scenario for animal units: 150 animal units at $24/AU would be $3600.Acres Unit Scenario:  Payment rate calculation scenario for acres:  450 acres at $18/acre with a 400 acre cap would be $7200.Combined Animal Units and Acres: Payment rate calculation of both scenarios is used for payment.  Animal Unit Scenario $3600 plus Acre Unit Scenario $7200 total payment to participant would be $10,800.

## Questions and Answers

## Question: What is the procedure for adding the CNMP initiative items into a contract?Answer: If code 100 was available for selection with State ranking tools, these two components can be added into existing applications through the upload from Toolkit process. If code 100 was not in the ranking tool, it cannot be selected in the contract development process.  The only way that the CNMP initiative items may be added is through contract modification after the original contract approval process.

## Question: How much time do States have to initiate the CNMP Initiative?  Answer:  States will have until COB on August 31, 2007 to modify CNMP Initiative items into FY 2007 contracts.

## Question: What is a payment rate scenario?Answer: A payment rate scenario is the methodology used for developing a payment rate based on specific characteristics or features used in determining the overall cost basis for the practice or item.

## Question: How may scenarios should/can a State develop?Answer:  Up to 12 scenarios may be needed to accurately determine payment for this type of practice depending on the complexity of scope (size and type of operation, typical elements in a plan, etc.).  States should limit the number of payment scenarios, however, to the minimum needed to reflect significant differences in cost.

## Question: Can a contract holder with a CNMP initiative item code also request technical assistance (TA) reimbursement?Answer: No, because the CNMP initiative items codes already include costs for TA services being provided.

## ProTracts Update

- Mary Grande

## Fund Manager Eligibility Reports

- The report only displays ineligible participants and ones with pending determination are not ineligible so do not appear in the report.

## DRAFT Fund Manager Report  DRAFT

## DRAFT  Sample Report  DRAFT

- Includes location, status, eligibility details

## Upcoming Changes to History Module

- Next step, changes to Participant signed process to capture date that all hard copy signature were obtained.

## Enhancement to Manage Applications

- Under development

## Enhancement to Manage Applications

- Under development

## Enhancement to Find Applications

- Under development

## State Submitted Q&A

## We understand that we are supposed to use the new 152 Transfer form to track contracts moving to new owners.  But we have several questions about the use of the form.   

Q. When exactly should the form be used? (only when land transfers to a new owner or do we also use it when shares between current contract holders change) .
A. Both for transfer of land and shares. Note program specific rules for Land Transfer (e.g. CSP Entire Contract Assumption only). See CPM 512.50 section on Contract Modifications.

 Q. What signatures are necessary? 
 A. For Land Transfers: Both the transferor (current contract participants) and the transferee (added to the contract in a land transfer).
	For Share Transfers: All the participants that are required to sign a modification (as now indicated on the CPA-1202 form) as share transfers can only be completed during modifications.

- Q. When exactly should the form be used? (only when land transfers to a new owner or do we also use it when shares between current contract holders change) .
- A. Both for transfer of land and shares. Note program specific rules for Land Transfer (e.g. CSP Entire Contract Assumption only). See CPM 512.50 section on Contract Modifications.
-  Q. What signatures are necessary?
-  A. For Land Transfers: Both the transferor (current contract participants) and the transferee (added to the contract in a land transfer).
- 	For Share Transfers: All the participants that are required to sign a modification (as now indicated on the CPA-1202 form) as share transfers can only be completed during modifications.

## Q. How does the form fit with ProTracts?
A. Currently states need to use the electronic copy of the 152 that was distributed to state Program Managers on 11/2/06 and complete a modification to change shares. Section 512.99 explains the current Land Transfer process.  Development of an integrated form is in progress in association with changes to modifications. When reason “Land Transfer” or “ Payment Share Transfer” is selected the form will be available. Intend to provide drill down capability to new application to better track. partial contract assumptions
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- A. Currently states need to use the electronic copy of the 152 that was distributed to state Program Managers on 11/2/06 and complete a modification to change shares. Section 512.99 explains the current Land Transfer process.  Development of an integrated form is in progress in association with changes to modifications. When reason “Land Transfer” or “ Payment Share Transfer” is selected the form will be available. Intend to provide drill down capability to new application to better track. partial contract assumptions
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## Q. Does the 152 replace the 1200 signature page or does it supplement it?
A. It is a supplement to the CPA-1202. The 1202 is “frozen” at contract obligation and changes to it are documented on either or both the CPA-1156 or CPA-152.

- A. It is a supplement to the CPA-1202. The 1202 is “frozen” at contract obligation and changes to it are documented on either or both the CPA-1156 or CPA-152.

- Questions on CPA-152

## Q&A