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Environmental Quality Incentives Program (EQIP)

BACKGROUND AND PROBLEM: The Environmental Quality Incentives Program (EQIP) is the second largest conservation program in U.S. history. Under the 1996 farm bill EQIP was intended to help family farmers pay for practices that protect soil and water. The program worked reasonably well in support of farm conservation efforts, with a special emphasis on cost-effective land management practices. Payments were limited to $10,000 a year, with a cap of no more than $50,000 over five years. Animal waste storage structures for large-scale confined animal feeding operations (CAFOs) were ineligible for EQIP funding.

During the 2002 farm bill debate, family farm groups fought to ensure that this program remained in its original form, albeit with increased funding, to benefit family farmers rather than becoming a program of corporate welfare. However, Congress caved to the political clout of the meatpacking industry and corporate-aligned commodity groups and enabled large-scale confinement operations to become eligible for EQIP funding. Congress eliminated the yearly payment limit, and the overall payment limitation mushroomed nine-fold to $450,000 over the six-year span of the farm bill. Proponents of these changes spoke openly about converting EQIP from a conservation program to a program that used tax dollars to clean up after industrial livestock production.

Under current rules, EQIP is not the environmental quality program it was intended to be; rather it is a harmful subsidy program that will result in further CAFO expansion. Its ranking criteria can result in environmentally-damaging technologies being favored over sustainable methods. Public oversight of the EQIP program is now even more difficult, due to new special exemptions of key data from the Freedom of Information Act (FOIA).

CHANGES SUPPORTED BY NFFC:

In 2003, Senator Chuck Grassley’s (R-IA) plan to offer an amendment to reduce the amount of money that farms could get through the Environmental Quality Incentives Program (EQIP) was blocked. The Grassley amendment would have limited the use of EQIP to subsidize large factory farms, while allowing for a wider, fairer distribution of EQIP funds to a larger number of farmers. The amendment would have redirected funding to help family farms and improve the environmental outcomes of the EQIP program.

Senator Grassley’s proposed EQIP amendment would have been a step in the right direction to redirect conservation funding to help more family farmers, and limit the ability of large corporations to use the program as another form of corporate welfare.

FUTURE ACTION STEPS COULD INCLUDE:

• Watch this space for legislation in the U.S. Congress to limit EQIP payment caps, and otherwise mitigate the harmful changes of the 2002 Farm Bill for EQIP.
• Each state NRCS office is charged with providing regular opportunities for public input through State Technical Committees. In 2003, Missouri family farm activists (including members of the Missouri Rural Crisis Center) testified through the public participation process, and the NRCS announced in early September that they would revise new scoring criteria for EQIP applications received in 2003. The new rules made it more difficult for new or expanding CAFOs to receive EQIP funds.

Read the NFFC press release on Family Farmers and EQIP
For more information: Corporate Research Project's report on EQIP



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