Less Than 2 Million Acres To Exit CRP as of Sept. 30

September 26, 2013 11:32 PM
 

via a special arrangement with Informa Economics, Inc.

New contracts on current CRP acres, general signup main factors tempering exits


NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.


While contracts on 3.3 million acres of land in the Conservation Reserve Program (CRP) will expire Sept. 30, new contracts on more than 1.3 million acres will keep the number of acres exiting the program under 2 million acres, according to a review of CRP data. And when new enrollments via signup 45 held earlier this year are factored in, that will limit the net reduction in CRP acres to just over 1.6 million acres.

At the end of August, 26.876 million acres were in the CRP, including 21.395 million acres enrolled via general signups and another 5.481 million acres enrolled via continuous signup efforts.

USDA data shows that contracts on 3,299,907 acres will mature as of Sept. 30, but data shows that new contracts will kick in on 1,369,369 acres of those maturing acres. That should mean that 1,930,538 acres currently in CRP would be able to be brought back into production for the 2014 growing season. In addition, under signup 45 there were contracts awarded on 314,661 acres that were not currently in CRP which would bring the net acres exiting the program as of Sept. 30 down to 1,615,877 acres.

Recall that under the signup 45 held earlier this year, more than 81 percent of the 1,684,030 acres enrolled via that effort are acres that were under contracts which expire Sept. 30.

Under signup 45, the percentage of acres offered for a new contract that were under a CRP contract that matures Sept. 30 was 41 percent. On a state-by-state basis, that varied from 12 percent in South Dakota to 71 percent in Washington state.

In the heart of the Corn Belt, only 36 percent of maturing Illinois CRP acres landed a new contract with 20 percent in Indiana and 21 percent in Iowa. Only 16 percent of the maturing acres in Minnesota qualified for a new contract. By contrast, Texas – with the largest number of total CRP acres – saw 66 percent of the maturing acres get new contracts that start Oct. 1 with 57 percent of maturing acres in Kansas.

Here’s a look at the in key states with 100,000 or more acres maturing as of Sept. 30:

State

CRP Acres Expiring Sept. 30

New CRP acres via signup 45

Net change in acres in CRP as of Oct. 1

Colorado

223,424

169,503

-53,921

Illinois

186,359

73,296

-113,090

Iowa

183,754

47,418

-136,336

Kansas

213,350

146,152

-67,198

Minnesota

128,517

25,609

-102,908

Missouri

183,422

80,323

-103,099

Montana

365,452

145,576

-219,876

North Dakota

254,767

49,406

-205,361

South Dakota

105,017

14,837

90,180

Texas

361,461

312,289

-49,072

Washington

253,479

198,149

-55,330

US

3,299,907

1,684,030

-1,615,877

Data source: USDA. Based on CRP data published at the end of August for acres scheduled to expire Sept. 30 and new acres to be enrolled Oct. 1 via signup 45. Does not include 152,827 acres enrolled via continuous signup efforts as of Aug. 31 during FY 2013.

       

Comments: While CRP remains a popular program in several states based on the high percentage of acres currently in CRP that will be given a new contract as of Oct.1, clearly in some areas of the country the returns offered for bringing the land back into production outweigh the returns CRP contract holders had been receiving. And this will put the total acres in the program very close to the proposed maximum CRP acre levels in the House and Senate versions of the farm bill. Also, the expectation on CRP exits is dependent on farmers following through with their enrolling all the acres deemed eligible for CRP during signup 45.


 

NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.


 


 

 

 

 

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