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In an attempt to ease the strain of high feed costs on the livestock industry, the Agriculture Department will allow haying and grazing on millions of acres enrolled in the Conservation Reserve Program.
Landowners enrolled in CRP, the nation's largest land retirement program, can apply for a permit to cut grass or use it for grazing. They will still receive the full CRP acreage payment, but they must meet certain environmental requirements, including avoiding birds' nesting season.
"It will significantly increase the amount of feed available to the livestock industry while still maintaining CRP's environmental benefits," Agriculture Secretary Ed Schafer said in a call with reporters yesterday.
The environmental safeguards were enough to win support of wildlife advocates like Ducks Unlimited that favor CRP. Ducks Unlimited calls CRP the "holy grail" of conservation programs and a "duck factory" for the extensive habitat it provides.
But at least some trade groups that the new policy was intended to help oppose it. The National Cattlemen's Beef Association and Kansas Livestock Association said it would provide no significant, long-term relief for the dwindling supply of land and feed sources.
The conflict highlights the challenge for CRP at a time of soaring commodity prices. The program is a favorite of wildlife and hunting groups, but many farmers are choosing to plow former CRP tracts as their contracts expire.
Farmers in the program receive an annual payment for idling land and planting grasses and trees that reduce soil erosion, improve water quality and protect wildlife habitat.
There are currently about 34.7 million acres in CRP. Landowners withdrew 2.6 million acres in 2007, and USDA officials have said they have no plans in the next two years to enroll new fields. Some agriculture economists have predicted that as many as 20 million acres could be removed from the program over the next decade.
'The wrong solution'
Under USDA's new grazing plan, landowners would stay enrolled in the program but would have the option to use it for haying and grazing. Wetlands, filter strips along streams and ponds and other particularly sensitive land would not be eligible, and landowners must have a conservation plan and avoid grazing during nesting season.
USDA estimates that 24 million acres would qualify for the voluntary program, producing about 18 million tons, or $1.2 billion worth, of forage.
"Using the land in this way is a better deal for ranchers, wildlife enthusiasts and taxpayers than trying to bring marginal cropland into production," said Barton James, director of conservation policy for Ducks Unlimited.
Cattle farmers say there should be some payment reduction when additional uses are allowed on CRP land. Otherwise, they say, the plan puts other livestock producers that get their hay and forage from non-CRP land at an unfair advantage. The group also thinks the smaller window of time for grazing to accommodate nesting season would not provide the scope of relief they feel the livestock industry needs.
"Cattlemen appreciate the fact that USDA recognizes the hard times we are facing in the livestock industry and wants to provide some relief through this CRP plan," said Colin Woodall of the Cattlemen's Association. "But this is just the wrong solution. Any CRP relief plan must maintain a level playing field for all farmers and ranchers and put land back into production in a meaningful way."
Livestock producers have been hit hard by the rising costs for grains and feeds, as corn and soybean prices have skyrocketed over the past two years, due in part to increased demand for the crops for biofuels.
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