CREP

Start to Finish

What you needto know!

Pennsylvania Conservation Reserve Enhancement Program

• Land must have been in annually-tilled crop (corn, beans, wheat, etc.) two of the last five years, or be pasture ground along a stream that will be planted to trees.
• Long-term hay land is not eligible.
• All cropping history must be certified to the FSA office. If the producer never reported crops to the FSA office, it is the landowner’s responsibility to supply this infonnation on maps provided by FSA and verified with two unrelated signatures.
• Land must meet erodibility criteria as determined by soil type and slope during NRCS field visit.
• CRP contracts enrolled after September 11, 1995, and prematurely withdrawn for any reason, are not eligible to be enrolled in CREP.
• All crops must be removed before a contract is started. Any unharvested crops remaining after the contract starts cannot be harvested.
• All contracts begin the l’~ of the month after FSA County Committee’s approval of the contract.
• All owners on the deed MUST sign the contract.

• Landowner’s must obtain the signature of the most recent producer stating that the producer is voluntarily stopping production on land so that it can be enrolled in CREP (including a Verbal Lease). 
           
  Establishment of Conservation Practices
• It is the landowner’s responsibility to arrange for the timely establishment of the required practices. This includes all aspects of establishment such as soil testing and subsequent liming and fertilization, seed ordering, ground preparation, planting, and follow-up establishment maintenance ifnecessaty. NRCS staff can provide assistance in arranging details of establishment where needed.
• Landowners are responsible for all up-front costs of establishment.
• Reimbursement for installation ofCREP practices is 100% paid in two parts.
• Federal (50%) and State (50%) reimbursement will follow the completion of the required seeding, fertilizing, etc. as required in the conservation plan.
• High priority practices have a Sign-up Incentive Payment (SIP) & Practice Incentive Payment (PIP). (Ask for details.)
• Partial payments are an option if the landowner chooses to break establishment costs into two groups.
• All costs must be documented with bills to receive reimbursement.
• Landowners can perform any or all of the required work and receive reimbursement for labor and machinery costs.
          

• Landowners receive a flat rate per acre maintenance payment as a part of their yearly payment, regardless of any actual annual maintenance costs.
• All maintenance of the cover is the responsibility of the landowner and shall be performed according to guidelines that are prepared by the NRCS staff and agreed upon in the conservation plan of operations.     

• If fields are divided into smaller units, FSA will require a measurement service. This charge is to be paid by the landowner and is not cost-shared.
• At the end of the year, landowners will receive one or more Form 1099 showing all payments (including Cost-Share) for that year. Landowners should consult their tax advisers on how to report these payments.
• Contracts are transferable if the land is sold and the new owner agrees to the term of the contract.
• Termination of any contract will result inpayback of the following: 
  • All Annual Payments received plus intrerest
  • All Cost-Share payments received for establishing cover plus interest
  • All SIP & PIP payments (if applicable)
  • Liquidated Damages (acres x per acre annual rental payment x 25%)
• Income Tax — If you do not currently file a Schedule F (Profit or Loss from Fanning), you may want to start now. Consult your tax advisor and/or the Farmer’s Tax Guide available to you.
• State Sales Tax— If you are not conductingAgricultural Production activities as a “business,” it  may be appropriate for you to pay State Sales Tax. Sales Tax is eligible for reimbursement through cost-sharing.
           
              

  CREP is a project of the Pennsylvania Conservation Partnership     USDA Farm Service Agency	Sponsors include:       Ducks Unlimited
  USDA Natural Resources Conservation Service	Chesapeake Bay Foundation
  Pennsylvania Department of Agriculture	Center for Rural Pennsylvania
  Pennsylvania Department of Environmental Protection	Pheasants Forever
  Pennsylvania Game Commission	Governor’s Sportsman Advisory Council
  Pennsylvania Department of Conservation and Natural Resources	Pennsylvania Farm Bureau
  Pennsylvania Fish and Boat Commission	Pennsylvania State Cooperative Extension
  Pennsylvania Association of Conservation Districts
  State Conservation Commission