Conservation Reserve Enhancement Program Improvement Act of 2023

To amend the Food Security Act of 1985 to modify the conservation reserve enhancement program. 1. Short title This Act may be cited as the Conservation Reserve Enhancement Program Improvement Act of 2023 2. Conservation reserve enhancement program (a) In general Section 1231A of the Food Security Act of 1985 ( 16 U.S.C. 3831a (1) in subsection (a)(4), in the matter preceding subparagraph (A), by inserting (other than an agreement described in subsection (e)) this subchapter (2) in subsection (b)(2)(A)(vi), by inserting or other appropriate practices, such as dryland agricultural uses and grazing, conservation practices (3) in subsection (c), by adding at the end the following: (5) Variable allocation An owner or operator may elect to determine the amounts of annual payments under this section allocated to each year of the agreement under subsection (b)(1). (6) Drought and water conservation agreements (A) Retirement of water rights In the case of an agreement described in subsection (e) that includes a permanent retirement of water rights, the payment rates for annual payments shall be equal to the irrigated acre payment rates determined by the Secretary. (B) Dryland agricultural uses (i) In general In the case of an agreement described in subsection (e) that permits dryland agricultural uses pursuant to paragraph (2) of that subsection, the payment rates for annual payments shall be equal to the difference between— (I) the irrigated acre payment rates determined by the Secretary; and (II) the dryland acre payment rates determined by the Secretary. (ii) Retroactive application In the case of an agreement covered by clause (i) entered into before the date of enactment of this paragraph under which the payment rate is lower than the payment rate that would be calculated for the agreement under that clause, the Secretary shall modify the agreement by calculating the payment rate in accordance with that clause. ; and (4) in subsection (e)— (A) in the matter preceding paragraph (1), by striking may— shall— (B) in paragraph (1), by inserting (including agricultural land on which a continuous crop or crop rotation is maintained) agricultural land (C) in paragraph (2), by striking with the adoption of best management practices on in accordance with a conservation plan adopted with respect to (D) in paragraph (3), by inserting subject to subsection (c)(6), calculate (b) Exemption from payment limitation Section 1234(g) of the Food Security Act of 1985 ( 16 U.S.C. 3834(g) (1) in paragraph (1), by striking paragraph (2) paragraphs (2) and (3) (2) by adding at the end the following: (3) Conservation reserve enhancement program Paragraph (1) shall not apply to rental payments received under agreements entered into under section 1231A. .

Summary: Conservation Reserve Enhancement Program Improvement Act of 2023This bill revises the Conservation Reserve Enhancement Program (CREP), which is a component of the Farm Service Agency's (FSA's) Conservation Reserve Program (CRP). CREP is a public-private partnership program which allows states, tribal governments, and nonprofit and private entities to partner with FSA to implement CRP practices. CRP is a land conservation program that provides an annual rental payment to farmers in exchange for removing environmentally sensitive land from agricultural production and planting species that will improve environmental health and quality.&nbsp;The bill specifies that dryland agricultural uses and grazing are included as appropriate practices under CREP.The bill also allows a land owner or operator to elect to determine the annual payment amount allocated for each year of a CREP agreement, instead of a fixed payment per year for the contract period.For drought and water conservation agreements that include the permanent retirement of water rights, annual payment rates must be equal to the irrigated acre payment rates determined by the Department of Agriculture (USDA). In the case of an agreement that permits dryland agricultural uses, the annual payment rates must be equal to the difference between the irrigated acre payment rates and the dryland acre payment rates determined by USDA. The payment formula is retroactive for certain&nbsp;existing drought and water conservation agreements.&nbsp;Further, the bill exempts CREP payments from the $50,000 annual payment limitation under CRP.&nbsp;&nbsp;&nbsp; &nbsp;