03/28/07 CRP rental rate review

03/28/07 CRP rental rate review

With some commodity prices rising many farmers and ranchers have decided not to put their land into CRP, the Conservation Reserve Program. Agriculture Secretary Mike Johanns told Congress the other day that some producers won't re-enroll their land; others simply won't add new land to CRP. JOHANNS -"They may look at four dollar corn and say this is a no brainer for me." And that land which is worth more than a year ago will be planted to crops like corn. The USDA is going to its county offices and asking them to review and possibly adjust rental rates. John Johnson of the Farm Service Agency says the goal is to stay competitive with the local market conditions. JOHNSON "We do not want to be higher than local market conditions but at the same time we don't want to be way below the local market conditions so that land owners lose all incentive to install conservation practices on their farm." Reviewing those rental rates is nothing new but in light of a rapid rise in crop prices Johnson says this is the proper time to take a closer look. JOHNSON "The authority is in the handbook for the county offices to review soil rental rates at any time that they think necessarily but periodically the national office has seen economic conditions warrant a directive for them to do it nationwide all simultaneously. Today's Idaho Ag News Bill Scott
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