Conservation Provisions in the 2014 Farm Bill (P.L. 113-79)
Released: 2014-04-24T00:00:00

Agricultural conservation began in the 1930s with a focus on soil and water issues associated with production and environmental concerns on the farm. By the 1980s, agricultural conservation policies broadened to include environmental issues beyond soil and water, especially issues related to production (off the farm). Many of the current agricultural conservation programs were enacted as part of the 1985 farm bill ( P.L. 99-198 , Food Security Act of 1985). These programs have been reauthorized, modified, and expanded, and several new programs have been created, particularly in subsequent omnibus farm bills. While the number of programs has increased and new techniques to address resource problems continue to emerge, the basic approach has remained unchanged—voluntary farmer participation encouraged by financial and technical assistance, education, and basic and applied research.

The Conservation title (Title II) of the Agricultural Act of 2014 ( P.L. 113-79 ), the 2014 farm bill, was largely uncontroversial. Both the House-passed farm bill ( H.R. 2642 ) and the Senate-passed farm bill ( S. 954 ) reauthorized many of the largest conservation programs and consolidated others to create new ones. The major difference between the two bills was the extension of conservation compliance provisions to the federally funded portion of crop insurance and the total reduction in funding for the title. Total mandatory spending for the title is projected at $28.3 billion over 5 years (FY2014-FY2018) and $57.6 billion over 10 years (FY2012-FY2023). The estimated spending impact of the 2014 farm bill's Conservation title is projected to decrease by $208 million over 5 years and close to $4.0 billion over 10 years.

Policy Issues Shaping the Conservation Title

Agricultural conservation has been a stand-alone title in farm bills beginning with the Agriculture and Food Act of 1981 (1981 farm bill, P.L. 97-98 ). Its significance has grown with each passing omnibus farm bill. Debate on the 2014 farm bill focused on a number of controversial issues. While many did not consider conservation to be controversial, nonetheless, a number of policy issues shaped the final version of the title and ultimately its role in the enacted farm bill.

Simplifying the Conservation Portfolio

Before the 1985 farm bill, few conservation programs existed and only two would be considered large by today's standards. Prior to the 2014 farm bill, there were over 20 distinct conservation programs with annual spending greater than $5 billion. The differences and number of these programs created general confusion about the purpose, participation, and policies of the programs (see below for a list of conservation program acronyms). Discussion about simplifying or consolidating conservation programs to reduce overlap and duplication, and to generate savings, has continued for a number of years. The 2014 farm bill contained several program consolidation measures, including the repeal of 12 active and inactive programs, the creation of two new programs, and the merging of two programs into existing ones. Specific programmatic changes are discussed further in the " Program Changes " section.

Compliance Requirements

Federal policies and programs traditionally have offered voluntary incentives to producers to plan and apply resource-conserving practices on private lands. It was not until the 1985 farm bill that Congress took an alternative approach to agricultural conservation with the enactment of highly erodible land conservation (sodbuster) and wetland conservation (swampbuster)—collectively known as "conservation compliance." Both provisions remain significant today and require that in exchange for certain U.S. Department of Agriculture (USDA) program benefits, including commodity support payments, disaster payments, farm loans, and conservation program payments, to name a few, a producer agrees to maintain a minimum level of conservation on highly erodible land and to not convert wetlands to crop production. One of the most controversial issues in the 2014 farm bill debate was whether federal crop insurance subsidies should be included on the list of program benefits that could be lost if a producer were found to be out of compliance. Ultimately the 2014 farm bill did add federal crop insurance subsidies to the list of benefits that could be lost and extended limited protection for native sod in select states (sodsaver). Specific programmatic changes are discussed further in the " Compliance Programs " section below.

Change in Program Type

Land retirement programs (e.g., the Conservation Reserve Program, CRP) provide producers with financial incentives to temporarily remove from production and restore environmentally sensitive land. In contrast, working lands programs (e.g., the Environmental Quality Incentives Program, EQIP) allow land to remain in production and provide producers with financial incentives to adopt resource-conserving practices. Over time, high commodity prices, changing land rental rates, and new conservation technologies have led to a shift in farm bill conservation policy away from the more traditional land retirement programs toward an increased focus on conservation working lands programs. Some of this shift has already occurred in the last decade and was continued in the 2014 farm bill as the percentage of mandatory program funding for land retirement programs has declined relative to working lands programs (see Figure 1 ).

Most conservation and wildlife organizations support both land retirement and working lands programs; however, the appropriate "mix" continues to be debated. Some are still divided between shorter-term land retirement programs such as CRP and longer-term easement programs such as the new wetland reserve easements under the Agricultural Conservation Easement Program (ACEP). Unlike land retirement programs, easement programs impose a permanent or longer-term land-use restriction that is voluntarily placed on the land in exchange for a government payment. Supporters of easement programs cite a more cost-effective investment in sustainable ecosystems for long-term wildlife benefits. Short-term land retirement program supporters cite the increased flexibility, which can generate broader participation than permanent or long-term easement programs.

There has also been a rising interest in programs that partner with state and local communities to target conservation funding to local areas of concern. These partnership programs leverage private funding with federal funding to multiply the level of assistance in a select area. A number of these partnership programs were repealed in the 2014 farm bill and replaced with the new Regional Conservation Partnership Program (RCPP). RCPP is designed to allow local organizations to partner with USDA to address resource concerns specific to that area. Partners are required to supply a significant portion of the overall cost of the project.

Budget and Baseline

Most farm bill conservation programs are authorized to receive mandatory funding. The Conservation title makes up 6% of the total projected farm bill spending, or $58 billion of the total $956 billion in 10-year mandatory funding authorized in the 2014 farm bill. Like many titles in the farm bill debate, discussion was driven in part by the need for budget reduction. While a few titles did receive an increase in authorized mandatory funding over the projected baseline, three major titles did not, including Conservation. Ultimately the Conservation title was reduced by $3.97 billion over 10 years, or 24% of the total $16.5 billion in savings (see Figure 2 ). If the baseline to write the 2014 farm bill had not been reduced by sequestration, the enacted 2014 farm bill could have been credited for reducing conservation spending by about $6 billion over 10 years. But sequestration had already been factored into the baseline, so the official CBO score remains at $3.97 billion reduction from the Conservation title.

In addition to sequestration, other budgetary dynamics may have an effect on farm bill conservation programs in the future. Since the 1996 farm bill, the number and size of conservation programs receiving mandatory funding has continued to grow. Currently the level of mandatory spending for conservation is roughly five times that of discretionary spending for conservation. For more than a decade, appropriators have placed limits on mandatory spending authorized in the farm bill, including a number of conservation programs. These limits are also known as CHIMPS, "changes in mandatory program spending." Many of these mandatory programs usually are not part of the appropriations process since funding is authorized in the farm bill for a specific time period (FY2014-FY2018) and is assumed to be available based on the statute and without further congressional action. Most of these conservation spending reductions, however, were at the request of both the Bush and Obama Administrations. The mix of programs and amount of reduction has varied from year to year. Some programs, such as CRP, have not been reduced by appropriators in recent years, while others, such as EQIP, have been repeatedly reduced below authorized levels. Even with these reductions, total mandatory funding for conservation programs has remained relatively constant at around $5 billion annually for the past five years. Conservation advocates are concerned that future CHIMPS would further deepen the cuts made by potential future sequestration and the 2014 farm bill reductions.

Program Changes

The 2014 farm bill reauthorized, repealed, consolidated, and amended a number of conservation programs. Generally, farm bill conservation programs can be grouped into the following categories based on similarities: working land programs, land retirement programs, easement programs, conservation compliance programs, and other programs and overarching provisions (see Table 1 and page 2 for a list of conservation program acronyms). Most of these programs are authorized to receive mandatory funding (i.e., they do not require an annual appropriation) and include authorities that expire with other farm bill programs at the end of FY2018. Other types of conservation programs—such as watershed programs, emergency programs, and technical assistance—are authorized in other non-farm bill legislation. Most of these programs have permanent authorities and receive appropriations annually through the discretionary appropriations process. These programs are not generally addressed in the context of a farm bill and are not covered in detail in this report, except for cases where the 2014 farm bill made amendments to the program.

General programmatic amendments, reauthorizations, and consolidations are discussed in the sections below. The Appendix provides a series of tables detailing the changes enacted in the 2014 farm bill as compared to prior law. The 2014 farm bill included several program consolidation measures, including the repeal of 12 active and inactive programs, the creation of two new programs, and the merging of two programs into existing ones. Table 1 and Figure 3 illustrate these consolidation measures.

Working Lands Conservation Programs

Working lands conservation programs are typically classified as programs that allow private land to remain in production, while implementing various conservation practices to address natural resource concerns specific to the area. Program participants receive some form of conservation technical assistance and planning to guide the decision on the most appropriate practices to apply, given the natural resource concerns and land condition. If selected, participants receive federal financial support to defray a portion of the cost to install or maintain the vegetative, structural, or management practices agreed to in the terms of the contract.

The two main working lands programs are the Environmental Quality Incentives Program (EQIP) and the Conservation Stewardship Program (CSP). Other working lands programs, such as the Wildlife Habitat Incentives Program (WHIP) and Agricultural Water Enhancement Program (AWEP), were repealed and incorporated into either new or existing programs. The Agricultural Management Assistance (AMA) program is generally amended in Title XI (Crop Insurance) because its original authorizing statute resides in the Federal Crop Insurance Act. However, 50% of the funding is used as a conservation working lands program. Both the House- and Senate-passed farm bills included amendments to AMA, but none were adopted in the conference agreement.

Environmental Quality Incentives Program

The 2014 farm bill reauthorized and amended EQIP at a total of $8 billion between FY2014 and FY2018. The program provides financial and technical assistance to producers and landowners to plan and install structural, vegetative, and land management practices on eligible lands to alleviate natural resource problems. Eligible producers enter into contracts to receive payment for implementing conservation practices. Approved activities are carried out according to an EQIP plan developed in conjunction with the producer that identifies the appropriate conservation practice(s) to address resource concerns on the land. The program is reauthorized through FY2018 with a graduating level of mandatory funding—$1.35 billion (FY2014); $1.6 billion (FY2015); $1.65 billion (FY2016-FY2017); and $1.75 billion (FY2018). A similar progression was authorized in the 2008 farm bill; however, EQIP funding has been reduced in the annual appropriations process (CHIMPS) since 2003, and has never received its full authorized level of funding (see " Budget and Baseline " discussion above).

One of the major changes to EQIP in the 2014 farm bill was the incorporation of the WHIP. WHIP provided technical and financial assistance to private landowners to develop upland wildlife, wetland wildlife, threatened and endangered species, fish and other types of wildlife habitat. The program operated very similarly to EQIP, but had a direct focus on improving wildlife habitat. The 2014 farm bill repeals WHIP and amends EQIP to require that 5% of total EQIP payments benefit wildlife habitat. Other elements of WHIP are also incorporated, including the requirement for consulting with State Technical Committees annually to determine eligible wildlife habitat practices. The farm bill also reauthorizes the requirement that 60% of all EQIP payments benefit livestock. The two EQIP subprograms—AWEP and Conservation Innovation Grants (CIG)—are discussed further below. A detailed analysis of EQIP changes may be found in Table A-3 .

Conservation Stewardship Program

The 2014 farm bill also reauthorized and amended CSP. The program provides financial and technical assistance to producers to maintain and improve existing conservation systems, and adopt additional conservation activities. Under CSP, participants must meet a "stewardship threshold" for a set number of priority resource concerns when they apply for the program, and then must agree to meet or exceed the stewardship threshold for additional priority resource concerns by the end of the five-year contract. In exchange, participants receive annual payments that are based, in part, on conservation performance. The program is limited by the number of acres available for enrollment each fiscal year, not total funding. Enrollment is offered through a continuous sign-up and applications are accepted year-round.

The 2014 farm bill amended CSP by making a whole-program substitution of statutory text. This did not mean, however, that all elements of the program changed as a result of the amendment. Primarily the changes reorganized the statutory language and refocused the program on generating additional conservation benefits. The amendments also raise the entry bar for participants, who are now required to address two priority resource concerns upon entry and meet or exceed one additional priority resource concern by the end of the contract. Contract renewal participants must meet the threshold for two additional priority resources concerns or exceed the threshold for two existing priority resource concerns. The 10% limitation on nonindustrial private forest land was lifted and flexible transition options are available for land coming out of CRP.

Another major change was the reduction in enrollable acres. Under the 2008 farm bill, CSP could enroll up to 12.769 million acres annually. The FY2014 farm bill reduces this to 10 million acres annually. This reduction creates an estimated $2.272 billion in savings over 10 years (see Figure 2 ). CSP was reduced in FY2011 and FY2012, when appropriators placed limits on mandatory spending (CHIMPS). The program was further reduced in FY2013 by sequestration. If these reductions continue, then the lower 10 million acre cap authorized in the farm bill would continue to slow program growth. At the end of FY2013, 59 million acres were enrolled in CSP. A detailed analysis of the programmatic changes may be found in Table A-2 .

Land Retirement Programs

Land retirement programs provide federal payments to private agricultural landowners for temporary changes in land use or management to achieve environmental benefits. The primary land retirement program—the Conservation Reserve Program (CRP)—was reauthorized to enroll a decreasing number until FY2018. Other sub-programs of CRP, such as the Farmable Wetlands (FW) program, were also reauthorized and amended.

Conservation Reserve Program

CRP is the largest federal, private-land retirement program in the United States, spending more than $2 billion annually. The program provides financial compensation for landowners (annual rental rate) to voluntarily remove land from agricultural production for an extended period (typically 10 to 15 years) for the benefit of soil and water quality improvement and wildlife habitat. The 2014 farm bill reauthorized CRP and reduced the enrollment cap from the previous 32 million acres to 24 million acres in FY2018. While CRP enrollment has fluctuated since its creation in the 1985 farm bill, recent enrollment has declined from its peak in FY2007 (with 36.8 million acres enrolled) to 25.6 million acres in FY2013. Further reduction in the farm bill was viewed as inevitable, given the fiscal challenges. Conservation and wildlife groups, however, remain concerned that reduced enrollment will impact critical species habitat and soil and water quality. Others point to the reduced enrollment as a product of high commodity prices, low rental rates, and declining interest in retiring land from production. The 2014 farm bill enrollment reduction created an estimated savings of $3.3 billion over 10 years.

The 2014 farm bill made several amendments to CRP, mostly centered on permitted activities. Emergency harvesting, grazing, and other use of forage are permitted, in some cases, without a reduction in rental rate, as well as livestock grazing for a beginning farmer or rancher. Other approved activities, such as annual or routine grazing, may continue to require a reduction in rental rate. The 2014 farm bill repealed the Grassland Reserve Program (GRP) and incorporated grassland contracts, similar to what was repealed under GRP, into CRP. The 2014 farm bill also allows CRP participants the opportunity to terminate their contract early if the land has been enrolled longer than five years and does not contain environmentally sensitive practices. A detailed analysis of the programmatic changes may be found in Table A-1 .

Easement Programs

Conservation easements impose a permanent land-use restriction that is voluntarily placed on the land in exchange for a government payment. The 2014 farm bill repealed the conservation easement programs—Wetlands Reserve Program (WRP), Farmland Protection Program (FPP), and GRP—and created a new Agricultural Conservation Easement Program (ACEP).

Agricultural Conservation Easement Program

The three repealed easement programs had similar but slightly different goals. All three programs were voluntary and sought to protect land from development by using permanent or long-term easements to achieve this goal. Participants were compensated based on a fair market easement value of the conservation easement. All three programs provided technical assistance and required some form of conservation planning and conservation practice adoption. The major distinctions among the three conservation easement programs were the type of land protected; whether production was allowed; the duration of the protection; and who held the easement. More information on these repealed programs is provided in the text box below.

The 2014 farm bill provides permanent baseline funding for ACEP. Funding became an issue when the 2008 farm bill was not reauthorized and easement programs such as WRP and GRP did not have baseline funding. This meant that farm bill extensions did not restore funding for the programs, thus leaving them inactive until reauthorized. While permanent funding was seen as a victory by many, others pointed out that total funding for the three repealed programs (WRP, GRP, and FPP) was higher in the previous five years than the total authorized level for ACEP for the next five years. Additionally, the enacted level of funding for ACEP was less than the levels in both the House- and Senate-passed farm bills.

ACEP retains most of the program provisions in the repealed easement programs by establishing two types of easements: agricultural land easements (similar to FPP and GRP) that limit non-agricultural uses on productive farm or grass lands, and wetland reserve easements (similar to WRP) that protect and restore wetlands. General program provisions are the same across both easement types, including ineligible land; subordination, exchange, modification, and termination procedures; and compliance requirements. Priority enrollment is given to expiring CRP acres.

Agricultural Land Easements

Similar to FPP, ACEP requires USDA to enter into partnership agreements with eligible entities to purchase agricultural land easements. Agreements with certified entities are a minimum of five years with a review and recertification required every three years thereafter. Agreements with non-certified entities are three to five years in length. The entities agree to share the cost of the easement; purchase easements according to USDA's requirements; and enforce and monitor easements purchased. Also similar to the repealed FPP and GRP easements, agricultural land easements allow production to continue on the land while prohibiting nonagricultural uses.

ACEP provides funding to purchase easements through eligible entities and provides technical assistance for developing an agricultural land easement plan. The federal share of the easement may not exceed 50% of the fair market value of the easement. The nonfederal share must be provided by the eligible entity and should be equivalent to the USDA share. Up to 50% of the nonfederal share may be a charitable donation or qualified conservation contribution from the private landowner, assuming the remaining nonfederal share is a cash contribution from the eligible entity. These cost-share requirements may be waived for grasslands of "special environmental significance." In this case, the federal share may be up to 75% of the fair market value of the easement and the nonfederal share cash requirement may be waived entirely. Agricultural land easements are permanent or for the maximum duration allowed under state law.

Wetland Reserve Easements

Much like WRP, wetland reserve easements are used to restore, protect, and enhance wetlands through the use of 30-year or permanent easements, or the use of 30-year contracts for Indian tribes. Landowners who have owned the land for at least 24 months prior to enrollment may submit an offer to USDA that will be evaluated based on its conservation benefits, cost effectiveness, and financial leverage. If selected, the landowner agrees to restore and maintain the wetland according to an approved wetland reserve easement plan. USDA, in return, provides technical and financial assistance for wetland restoration. Landowners are compensated for the wetland reserve easement based on the fair market value of the land and the length of the easement or contract. USDA is also allowed to delegate the management, monitoring, and enforcement responsibilities of a wetland reserve easement to a separate authority.

A comparison of repealed program provisions (where applicable) to the new ACEP provisions may be found in Table A-4 .

Other Conservation Programs

Regional Conservation Partnership Program

Similar to the consolidation of the easement programs, the 2014 farm bill consolidated a number of the "other" conservation programs that provided partnership opportunities or multi-state funding for watershed-scale projects. The Regional Conservation Partnership Program (RCPP) creates partnership opportunities to target and leverage federal conservation funding for specific areas and resource concerns. A number of eligible activities are defined in statute. However, consistent with the repealed programs, water quantity and water quality concerns continue to have a large presence in RCPP.

RCPP incorporates the Agricultural Water Enhancement Program (AWEP), the Cooperative Conservation Partnership Initiative (CCPI), the Chesapeake Bay Watershed Program (CBWP), and the Great Lakes Basin Program for soil erosion and sediment control (GLBP). Both AWEP and CCPI utilized partnership agreements to focus conservation program funds to targeted areas. The CBWP provided additional funds through existing conservation programs in the Chesapeake Bay watershed. The GLBP also targeted funding to a specific watershed, but unlike the other three programs, the GLBP did not receive mandatory funding and was last funded through appropriations in FY2010.

RCPP uses 7% of available conservation program funds plus an additional $100 million annually in mandatory funding to address specific natural resource concerns in selected project areas. Project areas are defined by eligible partners and are selected through a competitive state or national competition. Partnership agreements (known as Regional Conservation Partnerships, RCPs) are for five years with a possible one-year extension. In addition to defining the project area, providing assistance, and possibly acting on behalf of the producers within the project area, partners must also provide a "significant portion" of the overall cost of the project. This leverages the partner's state, local, or private funding with RCPP's federal funding. Funds are also directed through "critical conservation areas" or CCAs. These areas are selected by USDA, are limited to eight nationwide, and expire after five years. To be eligible for an RCPP contract, a producer must be located in either a CCA or RCP, but is not required to work with the sponsoring RCP partner and may choose to work directly with USDA. Figure 4 gives a general illustration of how RCPP funding may be obligated to producer contracts based on the 2014 farm bill.

RCPP contracts will follow the existing rules and requirements of the covered programs (i.e., EQIP, CSP, ACEP, and the Healthy Forest Reserve Program, HFRP). Alternative funding arrangements are allowed for multistate water resources agencies. Also, five-year payments may be made to producers participating in water quantity and quality projects, specifically, conversion from irrigated to dryland farming and improved nutrient management. A comparison of repealed program provisions (where applicable) to the new RCPP provisions may be found in Table A-5 .

Conservation Innovation Grants

The Conservation Innovation Grants (CIG) program is a sub-program of EQIP. The program is intended to leverage federal investment, stimulate innovative approaches to conservation, and accelerate technology transfer in environmental protection, agricultural production, and forest management. The program was reauthorized in the 2014 farm bill through FY2018 at an unspecified funding level of total EQIP funding. The farm bill reauthorized and reduced the air quality component, which requires that payments be made through CIG to producers to implement practices to address air quality concerns from agricultural operations in order to meet federal, state, and local regulatory requirements. This air quality component was previously authorized at $37.5 million annually and is reduced to $25 million annually (between FY2014 and FY2018) in the 2014 farm bill. The farm bill also adds a reporting requirement that no later than December 31, 2014, and every two years thereafter, a report must be submitted to Congress regarding CIG funding, project results, and technology transfer efforts.

Compliance Programs

The 1985 farm bill included a number of conservation provisions designed to conserve soil and water resources. Two of the provisions remain in effect today—highly erodible land conservation (sodbuster) and wetland conservation (swampbuster). The provisions, collectively referred to as conservation compliance, require that in exchange for certain USDA program benefits, a producer agrees to maintain a minimum level of conservation on highly erodible land and to not convert wetlands to crop production.

One of the most significant changes made by the 2014 farm bill was the addition of federal crop insurance premium subsidies to the list of benefits that could possibly be lost if a producer were found out of compliance. How compliance is calculated, where compliance provisions apply, and traditional exemptions and variances were not amended. The 2014 farm bill did create separate considerations when addressing compliance violations and the loss of federal crop insurance premium subsidies.

Highly Erodible Lands Conservation

The highly erodible land conservation provision (sodbuster) applies to land classified as highly erodible that was not in cultivation between 1980 and 1985 (i.e., newly broken land, referred to as sodbuster) and to any highly erodible land in production after 1990, regardless of when the land was put into production. Land meeting this classification can be considered eligible for USDA program benefits if the producer agrees to cultivate the land using an approved conservation plan. In addition to the application of an approved conservation plan, a number of exemptions are possible before benefits would be lost. These provisions were unchanged by the 2014 farm bill.

What did change under the 2014 farm bill was the list of USDA program benefits that could be lost if a producer were found out of compliance with the sodbuster provision. The list was expanded to "include any portion of the premium paid by the Federal Crop Insurance Corporation for a policy or plan of insurance under the Federal Crop Insurance Act." This does not mean that producers cannot purchase a crop insurance plan through the federal crop insurance program; rather, if found out of compliance, they would be ineligible to receive the insurance premium subsidy paid by the federal government. The loss of the insurance premium subsidy is not retroactive and would only take effect after all administrative appeals were exhausted.

The 2014 farm bill also extends the list of exemptions, allowing producers new to compliance requirements additional time (five reinsurance years) to develop and comply with a conservation plan before the loss of federal crop insurance premium subsidies. Producers with compliance violations prior to the farm bill's enactment are allowed two reinsurance years to develop and comply with a conservation plan before the loss of the subsidies.

Wetlands Conservation

The "swampbuster" or wetland conservation provision extends the sodbuster concept to wetland areas. Producers who plant a program crop on a wetland converted after December 23, 1985, or who convert wetlands, making agricultural commodity production possible, after November 28, 1990, are ineligible for certain USDA program benefits. This means that, for a producer to be found out of compliance, crop production does not actually have to occur; production only needs to be made possible through activities such as draining, dredging, filling, or leveling the wetland. The wetlands compliance provision also includes a number of exempt lands. These provisions were unchanged by the 2014 farm bill.

Similar to sodbuster, the 2014 farm bill amends the wetlands conservation provision to include crop insurance premium subsidies as an ineligible benefit if found to be out of compliance. The amendment treats the time of wetland conversion differently ( Table 2 ). The amendment also extends the list of exemptions for compliance violators, allowing additional time (one or two reinsurance years) for producers to remedy or mitigate the wetland conversion before losing crop insurance premium subsidies.

Producers must continue to self-certify their compliance with the sodbuster and swampbuster provisions. USDA is required to review certifications in a "timely manner"; otherwise, producers will be held harmless with regard to eligibility even if a subsequent violation is found. Producers who do not self-certify and are found to be in violation must pay an "equitable contribution" to a wetland restoration fund, not to exceed the premium subsidy amount. USDA retains sole responsibility for implementing the conservation compliance provisions.

The 2014 farm bill also amended the wetland mitigation banking program. Under wetlands conservation, compliance violators have the option of mitigating the violation through the restoration of a converted wetland, the enhancement of an existing wetland, or the creation of a new wetland. Debate over these wetland mitigation requirements arose during the 2014 farm bill and centered on the concern that some producers were required to mitigate wetlands with a greater than 1-to-1 acreage ratio. This is allowed by statute if "more acreage is needed to provide equivalent functions and values that will be lost as a result of the wetland conversion to be mitigated." The House-passed farm bill would have limited wetland mitigation to not more than a 1-to-1 acreage ratio. The Senate-passed farm bill would have required a study to assess the use of wetland mitigation, determine impacts on wildlife habitat, and provide recommendations for improving wetland mitigation procedures. Ultimately, the conference agreement adopted neither the House nor Senate provision and instead provided $10 million in mandatory funding for mitigation banking efforts. While the provision remains unchanged in statute, the conference report ( H.Rept. 113-333 ) includes language encouraging USDA to use a wetland mitigation ratio not to exceed 1-to-1 acreage.

Sodsaver

The 2008 farm bill created a compliance provision under the Crop Insurance title, known as sodsaver. The sodsaver provision would have made producers who planted crops (five or more acres) on native sod ineligible for crop insurance and the noninsured crop disaster assistance (NAP) program for the first five years of planting. The 2008 farm bill limited the provision to virgin prairie converted to cropland in the Prairie Pothole National Priority Area, but only if elected by the state. Ultimately no governors opted to participate in the program and sodsaver was never activated.

The Crop Insurance title (Title XI) of the 2014 farm bill amended and expanded the sodsaver provision. Unlike the 2008 sodsaver provision, there is no opt-in requirement and the provision became effective upon enactment. The sodsaver provision also applies to native sod in six states—Minnesota, Iowa, North Dakota, South Dakota, Montana, and Nebraska—rather than only the area covered by the Prairie Pothole National Priority Area. Crop insurance premium subsidies will now be reduced by 50 percentage points for production on native sod during the first four years of planting. Crops planted on native sod will have reduced benefits under NAP. The farm bill also clarified that native sod may include land that has never been tilled or cases where the producer cannot substantiate that the ground has ever been tilled.

Crop yield guarantees might also be affected for crop insurance policies. The yield guarantee for a crop insurance policy is a producer's "normal" crop yield based on actual production history (APH). In the absence of actual yield data (e.g., production on native sod or no yield documentation on existing fields), a "transition yield" (T-yield) is assigned, which is based on a portion of 10-year average county yields for the crop. The 2014 farm bill sets the T-yield factor on native sod equal to 65% of the 10-year average county yield for production on native sod. For other cropland, the percentage can be higher depending on the number of years of actual data included in the APH. Also, "yield substitution" is not allowed; that is, low farm yields must be used in the APH rather than replacing them with potentially higher T-yields as allowed for other cropland. This is expected to reduce the incentive to produce on native sod.

Appendix. Comparison of Conservation Provisions Enacted in the 2014 Farm Bill to Prior Law

This appendix includes a series of tables arranged by subtitle included in Title II of the Agricultural Act of 2014 ( P.L. 113-79 ). U.S. Code citations are included in brackets in the "Prior Law" column. Corresponding section numbers in P.L. 113-79 are included in brackets in the "Enacted 2014 Farm Bill" column. Funding for most Title II programs is covered in the "Funding and Administration" subtitle ( Table A-7 ). Where appropriate, funding levels are repeated within a program's corresponding subtitle table.