NRCS Announces Date for Application Cutoff for Grassland Reserve Program

Salina, Kansas, June 21, 2004 — The Grassland Reserve Program (GRP) cutoff date for applications has been set for July 16, 2004. Although applications will be taken at any time, only those applications submitted by that date will be evaluated and ranked for funding for the Fiscal Year 2004 (FY-2004) program.

In FY-2004, GRP was funded at just over $54 million nationwide. Kansas received an allocation of nearly $2.6 million, an increase of more than 20 percent over last year.

"Healthy, productive grasslands are vital to Kansas' grazing operations," said Harold L. Klaege, state conservationist for the Natural Resources Conservation Service, Salina. "GRP not only offers ranchers and farmers a unique opportunity to protect and enhance those critical resources, but also offers them a way to help preserve the state’s distinctive ecological heritage," he continued.

Only in its second year of existence, GRP is a voluntary program offering landowners the opportunity to protect, restore, and enhance grasslands on their property through easements (permanent or 30-year) and rental agreements (10-year, 15-year, 20-year, or 30-year). In Kansas, approximately $1.8 million will be set aside for easements, while $750,000 will be set aside for rental agreements. Priority will be given to easements and 20-year and 30-year rental agreements.  The program emphasizes the preservation of native and natural grasslands and shrublands, support for grazing operations, plant and animal biodiversity, and the protection of grassland that is under multiple threats of conversion.

"I would encourage producers interested in preserving their grasslands to stop by a USDA Service Center and visit with the USDA Natural Resources Conservation Service (NRCS) or Farm Service Agency (FSA) staffs to learn more about the program," Klaege said.

Applications that were submitted for last year's program can also be considered for FY-2004 funding. However, those applicants will need to contact their local USDA Service Center and convey their continued interest in the program.

Klaege said that since this is still a newly developed program, he offered the following questions and answers to help farmers and ranchers understand how GRP works.

What land is eligible for GRP?

The overall emphasis for FY-2004 enrollment is on preserving native and natural species. Eligible land includes grasslands; land that contains forbs; shrubland (including improved rangeland and pastureland); or land that is located in an area that historically has been dominated by grassland, forbs, or shrubland when these lands have the potential to serve as wildlife habitat of significant ecological value.

Is there a limit on the number of acres a landowner may enroll in the program?

There is no maximum limit. However, offers for enrollment must contain at least 40 contiguous acres.

Who may participate in the program?

Only landowners may submit applications for easements. Both landowners and operators may participate on rental agreements.

How will my adjusted gross income affect my eligibility for GRP?

The Adjusted Gross Income (AGI) provision of the 2002 Farm Bill impacts eligibility for GRP and several other 2002 Farm Bill programs. Individuals or entities that have an average AGI exceeding $2.5 million for the three tax years immediately preceding the year the contract is approved are not eligible to receive program benefits or payments. However, an exemption is provided in cases where 75 percent of the adjusted gross income is derived from farming, ranching, or forestry operations.

What is the application process?

To participate, interested persons submit an application to their local NRCS or FSA office in the local USDA Service Center. Applications for the program are accepted at anytime.

What are my enrollment options?

Enrollment options are 30-year and permanent easements and 10-year, 15-year, 20-year, or 30-year rental agreements.

Can I graze my grassland while enrolled in GRP?

All enrollment options permit:

• common grazing practices that maintain the viability of the grassland;
• haying, mowing, or harvesting for seed production, subject to certain restrictions during the nesting season, as determined by NRCS; and
• fire rehabilitation and the construction of fire breaks, fences, and watering facilities and practices that protect and restore the grasslands functions and values.

Do I need a conservation plan?

All participants in GRP will be required to implement a conservation plan approved by USDA to preserve the viability of the grassland enrolled in the program.

What do GRP contracts or easements prohibit?

GRP contracts and easements prohibit the production of crops (other than hay), fruit trees, and vineyards that require breaking the soil surface and any other activity that would disturb the surface of the land, except for appropriate land management activities included in a conservation plan.

How is the contract or easement value determined?

The value of an easement is determined through a professional appraisal. The landowner is paid the fair market value of the land, less the grazing value of the land. For 30-year easements or an easement for the maximum duration allowed under State or Tribal law, a landowner receives 30 percent of the fair market value of the land, less the grazing value of the land.

For rental agreements, the participant receives not more than 75 percent of the grazing value in an annual payment for the length of the agreement. Grazing values will be determined based on local prevailing rental rates.

What should eligible applicants do if their GRP application is not funded?

Once funding has been exhausted, eligible applicants will remain on file until additional funding becomes available. 

Who will administer the GRP?

Both the NRCS and FSA handle program implementation. Applications will be accepted by either agency on a continuous sign-up basis.

For More Information

If you need more information about GRP, please contact your local USDA Service Center, listed in the telephone book under U.S. Department of Agriculture, or your local conservation district. Information also is available on the Kansas NRCS web site  and the national FSA web site.