Conservation Security Program Despite Cost Controls Improved Usda Management Is Needed To Ensure Proper Payments And Reduce Duplication With Other Programs

The U.S. Dept. of Agriculture (USDA) administers conservation programs, such as the Conservation Stewardship Program (CSP, formerly the Conservation Security Program) and the Environmental Quality Incentives Program (EQIP), to help farmers reduce soil erosion, enhance water supply and quality, and increase wildlife habitat, among other things. This testimony is based on reports on CSP and EQIP, each issued in 2006, and a 2008 report on farm program payments. It discusses: (1) the potential for duplicate payments between CSP and other conservation programs; (2) USDA's process for allocating EQIP funds to the states to optimize environmental benefits; and (3) USDA's management controls over farm program payments.

The Conservation Security Program (CSP)-called for in the 2002 farm bill and administered by the U.S. Department of Agriculture's (USDA) Natural Resources Conservation Service (NRCS)-provides financial assistance to producers to reward past conservation actions and to encourage further conservation stewardship. CSP payments may be made for structural or land management practices, such as strip cropping to reduce erosion. CSP has raised concerns among some stakeholders because CSP cost estimates generally have increased since the 2002 farm bill's enactment. For example, the Congressional Budget Office's estimate increased from $2 billion in 2002 to $8.9 billion in 2004. GAO determined (1) why CSP cost estimates generally increased; (2) what authority USDA has to control costs and what cost control measures exist; and (3) what measures exist to prevent duplication between CSP and other USDA conservation programs and what duplication, if any, has occurred.