EQIP Organic Initiative funds go unused
By Heather Thorstensen
hthorstensen@agrinews.com
Date Modified: 05/27/2010 9:31 AM
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ST. PAUL— Participation in the Organic Initiative of the Environmental Quality Incentives Program is down slightly in Minnesota this year.
USDA's Natural Resources Conservation Service allocated $1.7 million for the state's organic and transitioning-to-organic producers to use for improving environmental protections on their farms. Sixty-five applications received contracts that will cost $1.1 million, leaving $600,000 unused.
Continuous sign-up is available, but the deadline to be considered for the 2010 ranking and scoring period has passed. The next funding round probably won't happen until 2011.
The Organic Initiative began last year to help producers in the organic sector compete for EQIP funds. It creates a separate pool of funding so they compete only with each other for cost-share opportunities.
Last year, $1.7 million was set aside and Minnesota NRCS had to request more funds to meet demand.
The way the initiative debuted was frustrating for some producers.
"It got started really late, there wasn't much time to get it out to producers, we were really rushing to let producers know about this. It was really a short period of time," said Robin Martinek, NRCS state agronomist."...I think in Minnesota we did a pretty good job, but it was still hard because the time period was so short."
Many people who applied weren't familiar with EQIP, so it took a while for people to understand the program and the paperwork it required, Martinek said.
"We want to work with new people, it just takes some time to deal with the new thing," she said.
In 2009, organic producers were eligible for cost-share at a higher rate than conventional producers in six core EQIP conservation practices, those that NRCS officials thought would be used most: Cover crops, crop rotation, nutrient management, pest management, prescribed grazing and forage harvest management. Producers in the Organic Initiative could apply for cost-share in other EQIP practices at the regular cost-share rate.
More time was available to promote the program this year. In 2010, Minnesota NRCS offered cost-share for all EQIPpractices to organic producers, just as they do for conventional producers. A few practices still had a higher payment rate for organic producers, but most were the same.
To be in the Organic Initiative, producers have to meet all the eligibility requirements for EQIP. Certified organic producers must give NRCS a copy of their organic system plan and contact information for their certifying agent.Transitioning producers submit a letter to NRCS stating they agree to put in place conservation practices for certified organic production. They must also provide contact information for the certifying agent they have begun working with to become certified. Applicants with less than $5,000 in annual sales aren't required to be certified, but still have to submit a copy of their organic system plan.
Organic Initiative participants can't receive more than $20,000 through EQIP each year or $80,000 over six years. That is lower than the normal EQIP payment limit, which is $300,000 for a six year period.
Approximately 900 applications, representing $25.9 million, throughout the entire EQIP program went unfunded this year because demand has exceeded the amount of funds available. The state program has a 2010 budget of $22.2 million.