State Technical Committee Meeting Minutes

3. Watersheds – Mike Thralls, OCC

Ron Hilliard stated that watersheds are a big issue, and there has been a lot of work accomplished through efforts of the Conservation Districts with funding from the federal government with a state match. Ron asked that Mike Thralls report on this topic.

Mike Thralls reported that watershed dams have played a major role in the last few years. Most of the dams were built to low hazard specifications and now the requirement is for a high hazard dam. There are 190 flood control dams in that classification, and 10 or 12 have been rebuilt. Last year, $6.5 million was appropriated by the legislature to be matched by federal monies, and $25 million was received this year. $8.8 of this funding went to rehabilitation.

4. State Manure Transfer, OCC

Dan Butler discussed the manure transfer program for poultry manure (litter) to move it out of the Illinois and Eucha Spavinaw Rivers. A subsidy was provided and $480,000 was distributed in nearly four years of the program. $300,000 went in about 6 months, and the last $100,000 was gone in less than 10 days, so the market is there. Dan commented that there is a lot of nitrogen and phosphorus in litter, and some farmers now see it as a better deal as fertilizer costs also went up. More people want it than there is a supply. OCC’s program was established to develop a market for this with funds provided by EPA and the State of Oklahoma. They began subsidizing the haulers, but some farmers wanted to use their own trucks. NRCS paid funds to the buyer for litter, and OCC went to this model so there is now more general contentment with this program. Van Kozak asked about the cost of fuel, and the reply was that it has not gone as high as the cost of fertilizer. Mike Thralls commented that fertilizer that cost $300/ton is now $1100/ton, so fertilizer costs have tripled. OCC is decreasing the rate to wean people away from government subsidies.

Dan also discussed the CREP that OCC is developing in the Illinois River and Eucha Spavinaw area. 80 acres with 10 landowners are under contract awaiting FSA’s approval. There are 1184 acres involved in OCC’s part of contracting with 15 landowners. They will pay 150% of the rental rate, and 3 counties are involved at $42-$44/acre. Landowners do not believe this is enough money, and the state of Arkansas is paying 300% of the rental rate. OCC is trying to modify the agreement and ask for that amount also. Payments will be made on a per acre/per year basis for 10-15 years. Each state negotiates the terms of the agreement with FSA. OCC will meet tomorrow with NRCS and FSA to discuss practices. Another application is the Municipal Lake in Elk City, a recreational lake that wants to get their bacteria numbers down and protect the riparian areas. Elk City will provide the non-federal match.

5. Conservation Reserve Program (CRP) and FSA Programs, Rod Wanger, FSA

Rod Wanger stated that the Farm Service Agency’s summer, 2008, newsletter is available to attendees as a handout. He discussed the CRP Mid Contract Management (MCM) Issue which involves required management at some point in the contract period. In 2008, participants with re-enrolled CRP were required to do MCM the first year if rolled over to a new contract period. There were a few complaints regarding mowing, burning, and nutrient management. Regarding the time period to complete, if native grass and a rollover, they would have to complete in the first and sixth years; if a new contract, the sixth year. For introduced grass, the requirement is for the fourth and seventh years. Due to fuel prices, at the next meeting this issue may need to be discussed to decide on the number of times during a contract the participant should be required to complete the MCM. In addition, Rod reported that some participants believe the burn period is too short. He stated they may consider all year the burn period, excluding the nesting season, and may consider a green burn also. Also, if hayed or grazed, that may be allowed to count as a management activity.

Rod also reported on a Secretarial Natural Disaster Determination for drought for nine counties which makes them available for emergency loans. He commented that a lot of producers had to sell their cattle. There has also been a Presidential Major Disaster Designation due to winter storms, tornadoes, and flooding. A Secretarial Designation is an Ag designation; a Presidential Designation occurs when a municipality has had the events occur and FEMA is involved. The Presidential Designation can also allow producers to get emergency loans.

In 2007, the Emergency Conservation Program (ECP) was approved due to ice storms and floods to clean up debris and repair fences. In 2008, ECP had $13 million in requests due to wildfires and tornadoes. $89 million was recently appropriated for ECP, but the funding has not been received.

Rod discussed the CRP Critical Feed Use; there are 182,526 acres currently enrolled for CFU. Rod stated there is a temporary restraining order preventing this program from continuing, but a decision is to be made soon in federal court.

Rod reported the State Acres for Wildlife Enhancement Program (SAFE) was started in 2006 in the northwest Oklahoma counties. He stated that about the time the program was on the ground, crop prices went up, so as a result there are only 544 acres currently enrolled in Harper and Woodward counties. Oklahoma is allotted 15,100 acres. This program involves a 15 year contract and a signup incentive.

Rod also mentioned Disaster Payments, the Livestock Indemnity Program, Livestock Compensation Program, Crop Disaster Program, and Dairy Disaster Assistance Program. He stated that the Quality Loss Crop Disaster Program is dependent upon whether the producer had crop insurance or NAP to be eligible. He stated that September 30, 2008, is the signup deadline for 2008 DCP contracts, and reported that the Supplemental Revenue Assistance Payment Program (SURE) covers crop losses due to natural disasters. The Livestock Indemnity Program (LIP) will assist with a payment for livestock death losses in excess of normal mortality and due to adverse weather as determined by the Secretary of Agriculture. The Livestock Feed Assistance Program (LFP) will be available to producers who suffered grazing losses for eligible livestock due to drought or fire. Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish (ELAP) is intended to provide emergency relief to producers of livestock, honey bees, and farm-raised fish because of losses from adverse weather or other conditions, such as blizzards, and wildfires, as determined by the Secretary. The Tree Assistance Program (TAP) was reauthorized to provide assistance to orchardists and eligible nursery tree growers because of a natural disaster. Rod stated the Farm Stored Facility Loan program was a $100,000 maximum, 7 year loan period, but will now be a $500,000 maximum loan for a 12 year period.

Rod provided that the cap for the Conservation Reserve Program (CRP) will be reduced to 32 million beginning in 2010; the cropping requirement will be 2002-2007, and new AGI and PL provisions will apply. He also stated that the Milk Income Loss Program was reauthorized for 2008 through 2012. Mike Sams commented that weight should be given to CRP expiring contracts in the GRP valuation process, and Rod commented that with the cap reduction for CRP, contracts will be directed to GRP.

6. Closing Remarks - Ron Hilliard

< Back to the previous page