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Ag Report: New Incentive Program for New, and Old Farmers

By: Josh Berry
Updated: October 5, 2011
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New incentives are available starting this month for farmers and ranchers getting out of the agriculture business, who want to bring in somebody new to take over their land.

One out of every ten acres in the country is occupied by CRP or the Conservation Reserve Program.

"In Taylor County for instance we have something like 30,000 acres in CRP," explained Tim Hall, County Executive Director for the Farm Service Agency.
 
The program started in 1985 to promote wildlife habitat and also to clear sediment in lakes and streams by placing a permanent cover on fragile and sensitive crop land. Farmers with land under CRP receive an annual payment for conserving their land.

Farmers that started their CRP contract in 2002 are coming to the end of their ten year contract. But there is a way to extend the payments.

Hall said, "Congress realizes that we don't have the youth in our farming sector that they desire."

Which is why in 2009 a program called TIP (Transition Incentive Program) was created to encourage new and socially disadvantaged farmers to get into agriculture.  If a producer takes advantage of this they can receive two extra CRP payments despite their contract expiring.

"They feel like the younger ones are not getting a good foot-holed and this is gonna be some what of a leveraging tool for them to get into."

To take advantage of TIP, the person retiring or leaving farming who also has a CRP contract ending, can lease their land for at least five years to the new farmer, which helps get their new career well under way.

"It is really greasing the skids for them to get into farming and make a go of it."

Retiring farmers and ranchers with an expiring CRP contract have until September 30, of next year to apply.

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