April 26, 2021

US looks to conserve farmland but farmers unwilling as crop prices surge

The United States Biden administration looks to increase payment rates in its Conservation Reserve Program to conserve four million more acres of land, but farmers are unwilling as crop prices surge to record highs, Reuters reported.

The Conservation Reserve Program is voluntary and is aimed at countering climate change. The US Department of Agriculture (USDA) will pay an annual rent to farmers not to grow crops on environmentally sensitive land for 10-15 years. The programme aims to stop soil erosion, sequester carbon, lower nitrogen runoff, and provide wildlife habitats.

The programme currently enrolls about 21 million acres of land, which is below the 25 million acre limit set by Congress. This cap will steadily increase to 27 million acres by 2023.

The USDA said they will increase payment rates and expand the number of incentivised environmental practices on conservation land to attract farmers, such as in outdoor recreation or construction.

However, farmers are reluctant to set aside land for conservation as US corn and soy futures reach multi-year highs on the Chicago Board of Trade.

Dave Kestel, who grows corn and soybeans in Manhattan, Illinois, said it will be hard to convince farmers to sign up for the programme unless they have really tough soil with rocky ground like in southern Illinois.

The National Grain & Feed Association urged the USDA not to enroll more productive farmland into the programme as farmers in competing export countries will increase plantings to meet global demand for commodities.

Tom Vilsack, USDA Secretary, said conserving more US land won't lead to deforestation in other countries, adding that the programme aims to preserve marginal acres and not productive domestic farmland.

- Reuters