USDA CRP Payments – 2024

Introduction – Conservation Reserve Program Payments

[Update 2/24/2024: we updated the CRP payment figures on a per acre basis for all states using data from the USDA]

What are USDA CRP payments? In short, the Conservation Reserve Program (CRP) is a USDA program that pays to protect natural land.  More broadly speaking, the CRP pays landowners to establish long-term, resource-conserving plant species, such as approved grasses or trees, to control soil erosion, improve water quality, and enhance wildlife habitat on cropland.

The program includes a Climate-Smart Practice Incentive to help increase carbon sequestration and reduce greenhouse gas emissions by helping producers and landowners establish trees and permanent grasses. 

The Conservation Reserve Program (CRP) is voluntary. The paying entity is the U.S. Department of Agriculture (USDA), a branch of the federal government, which offers a range of conservation options to farmers, ranchers, and landowners.

Size Of CRP Payments By State – Total, General and Continuous For 2024

The U.S. average CRP rental rate is $74 per acre, including an average of $57 per acre for land enrolled under General CRP contracts, $149 per acres for Continuous CRP land, and $180 per acre for land enrolled in CREP (see below for what is CREP).

The average CRP rental rate varies by state. We include figures below for all states. One note – though we call these figures 2024, they are actually real statistics collected until December 2023. Consider these “real world” values for what farmers in each state have been receiving.

State	Total CRP $/Acre	General CRP $/Acre	Continuous CRP $/Acre
U.S.	73.63	57.07	149.11
Alabama	44.85	49.12	50.21
Alaska	42.05	41.91	44.53
Arizona	12.38	–	–
Arkansas	88.48	73.03	90.97
California	20.65	35.06	24.72
Colorado	23.94	29.76	63.04
Delaware	159.66	81.80	160.04
Florida	61.78	75.26	72.40
Georgia	70.65	77.71	77.61
Hawaii	19.97	–	48.58
Idaho	47.24	43.80	61.64
Illinois	218.97	160.52	235.80
Indiana	213.93	141.81	228.75
Iowa	240.42	172.61	257.18
Kansas	39.24	42.43	59.14
Kentucky	166.51	132.13	187.82
Louisiana	102.19	67.49	106.54
Maine	59.16	60.88	66.33
Maryland	251.28	115.77	259.01
Massachusetts	101.00	–	101.00
Michigan	126.98	113.26	173.25
Minnesota	159.85	100.08	177.61
Mississippi	90.28	68.00	103.54
Missouri	147.35	138.87	155.12
Montana	22.79	29.73	38.83
Nebraska	41.30	66.34	162.28
Nevada	10.12	–	–
New Jersey	77.59	54.32	106.20
New Mexico	18.04	31.26	29.02
New York	73.86	62.60	99.23
North Carolina	84.11	66.39	99.69
North Dakota	61.80	47.80	75.74
Ohio	228.01	122.03	258.29
Oklahoma	21.39	25.81	42.51
Oregon	35.59	52.19	77.70
Pennsylvania	158.09	75.65	159.95
Puerto Rico	50.00	–	50.00
Rhode Island	74.00	–	74.00
South Carolina	46.80	40.77	51.36
South Dakota	57.25	67.04	130.23
Tennessee	106.78	91.46	121.81
Texas	33.73	36.07	43.16
Utah	21.39	28.30	43.50
Vermont	120.25	–	120.25
Virginia	62.64	44.28	84.90
Washington	62.75	58.11	76.86
West Virginia	36.78	–	85.12
Wisconsin	178.04	122.50	200.90
Wyoming	15.32	25.89	28.45

Comparing the CRP rates to revenues from staple crops like corn, soybeans, and wheat highlights the difference in potential earnings.

In 2020-2021, corn and soybeans generated an average revenue of about $673 and $545 per acre, and wheat offered an average revenue of around $250 per acre, surpassing the CRP rates.

Why Anyone Would Want To Apply For CRP

Given that the revenue from even the lowest value crop exceeds CRP payments, why would anyone want to use the CRP program? Farmers may opt for USDA Conservation Reserve Program (CRP) payments instead of farming the land for several reasons.

Firstly, CRP payments provide a stable and guaranteed income source.

Secondly, enrolling in the CRP allows farmers to improve soil health, reduce soil erosion, and enhance water quality on their land, which can result in better long-term agricultural productivity.

Lastly, participating in the CRP program contributes to environmental conservation efforts.

A perfect candidate for the USDA Conservation Reserve Program (CRP) would be a farmer who:

1. Owns or operates environmentally sensitive or marginal agricultural land.
2. Is committed to sustainable land management practices.
3. Can benefit from a stable, guaranteed income source through CRP payments.
4. Is willing to take land out of active agricultural production for a specific period, typically 10-15 years.
5. Seeks to improve the long-term health and productivity of their land.

In the context of agriculture and land management, “marginal” refers to land that has limited agricultural productivity or economic value due to various factors.

In the case of the Conservation Reserve Program (CRP), converting marginal land to conservation uses can be a more sustainable and economically beneficial alternative for farmers.

Estimating the Economic Impact of CRP

Short-Term Economic Impact On Farm Income

Immediately after enrollment in the CRP, farmers might experience a decrease in farm income due to a reduction in land available for crop production. However, the compensatory CRP payments are designed to alleviate this. For example, if a farmer enrolls 10% of their arable land into the CRP, there might be a proportionate drop in crop output. Still, CRP payments could offset 60-80% of that lost income, providing farmers with financial stability during this transition.

Long-Term Economic Impact

Soil Fertility and Yield: Land that has been under the CRP usually benefits from rejuvenated soil health. Once it’s put back into production after a CRP term, these plots might yield 10-20% more crops than before, thanks to the healthier soils. This translates into increased income for the farmers.

Reduced Input Costs: With improved soil health, there could be a decrease in the dependency on fertilizers or pesticides. Over the years, this might result in a 5-10% reduction in input costs for the farmer, further enhancing profit margins.

Overview Of Application And Enrollment

Producers and landowners enroll in the CRP from February through April 7, 2023. FSA is aiming to reach the 27-million-acre cap statutorily set for fiscal year 2023.

Producers and landowners can participate in a variety of Continuous CRP opportunities, such as the Clean Lakes Estuaries and Rivers

They can also take advantage of the Climate-Smart Practice Incentive to increase carbon sequestration and reduce greenhouse gas emissions. 

There Are Three Types Of CRPs: General, Continuous, And Grassland

General CRP

Long-term, resource-conserving plant species help producers and landowners protect their land and natural resources while also providing economic benefits.

Through the CRP, eligible producers and landowners receive annual rental payments and cost-share assistance to establish conservation covers on eligible cropland.

These covers help reduce soil erosion and runoff, which in turn help improve water quality and protect wildlife habitat. 

Producers and landowners benefit from improved water quality through the CRP by establishing conservation covers.

This protects aquatic species and maintain healthy aquatic conditions.

Continuous CRP

The Conservation Reserve Program (CRP) offers a variety of options for agricultural producers and private landowners to invest in the long-term well-being of their land and natural resources.

The Continuous CRP provides additional opportunities for producers and landowners to enroll in the program.

These include the CLEAR30 Initiative, the State Acres for Wildlife Enhancement (SAFE) Initiative, the Farmable Wetlands Program (FWP), and the Conservation Reserve Enhancement Program (CREP). 

The CLEAR30 Initiative provides producers and landowners with the chance to enroll in 30-year CRP contracts for water quality practices.

Through the SAFE Initiative, producers and landowners have more opportunities to participate in the program.

The FWP allows landowners to enroll land in CRP as part of their efforts to restore previously farmed wetlands and wetland buffers.

The CREP was updated to reduce barriers and make the program more accessible to a broad range of producers and new types of partners.

For the first time ever, three Tribal Nations are now partnering with USDA to help conserve, maintain, and improve grassland productivity, reduce soil erosion, and enhance wildlife habitat.

Grassland CRP

One of the programs offered is the Grassland CRP, which has been designed to help landowners and operators protect grasslands, including rangeland and pastureland, while still allowing them to maintain working grazing lands. 

The Grassland CRP is a working lands program which offers a variety of benefits to landowners and operators, such as improving the economy of many regions, providing biodiversity of plant and animal populations, and providing important carbon sequestration benefits.

Protecting grasslands is an important part of the Grassland CRP program.

This includes planting approved grasses or trees, as well as establishing trees and permanent grasses which help to increase carbon sequestration and reduce greenhouse gas emissions.

In addition, the program offers incentives for producers and landowners to restore previously farmed wetlands and wetland buffers, which help to improve both vegetation and water flow.

Signing Up In 2023 And 2024

USDA will start accepting applications for the Continuous CRP on January 12, 2024. This program, including the Conservation Reserve Enhancement Program (CREP), offers yearly rental payments to agricultural producers and landowners for conservation efforts on their land.

The general CRP signup has yet to be announced, and those interested should contact their local USDA Service Center to learn more or to apply for the program before their deadlines.  To contact a local USDA Service Center, producers and landowners should contact a local USDA service center.

By doing so, producers and landowners get information about the program, learn about eligibility requirements, and find out more information about enrolling in the program.

Transition Incentives Program 

For producers with expiring CRP acres, the Transition Incentives Program (TIP) is available to incentivize producers who sell or enter a long-term lease with a beginning, veteran, or socially disadvantaged farmer or rancher who plans to sustainably farm or ranch the land.

TIP provides additional opportunities for those interested in enrolling in the CRP program.

Conclusions

The U.S. Department of Agriculture (USDA) Conservation Reserve Program (CRP) is a cornerstone voluntary conservation program that helps agricultural producers and private landowners protect and improve the long-term well-being of their land and natural resources.

The Conservation Reserve Program (CRP) is a voluntary conservation program offered by the U.S. Department of Agriculture (USDA) that helps producers and landowners establish long-term, resource-conserving plant species, such as approved grasses or trees, to control soil erosion, improve water quality and enhance wildlife habitat on cropland.

General CRP includes a Climate-Smart Practice Incentive to help increase carbon sequestration and reduce greenhouse gas emissions.

Starting February 27 through April 7, 2023, agricultural producers and private landowners begin applying for the Conservation Reserve Program (CRP) General signup.

Through this signup, producers and landowners enroll more than 5 million acres into CRP, aiming to reach the 27-million-acre cap statutorily set for fiscal year 2023.

Enrolling in the CRP provides a range of benefits, including controlling soil erosion, improving water quality, and enhancing wildlife habitat.

The Climate-Smart Practice Incentive helps producers and landowners establish trees and permanent grasses to help increase carbon sequestration and reduce greenhouse gas emissions.

Finally the Transition Incentives Program (TIP) incentivizes producers who sell or enter a long-term lease with a beginning, veteran, or socially disadvantaged farmer or rancher.