NRCS and the EQIP Program

NWWI

5 year old buck +
Has anyone had any dealings with these programs? I read a little about the DMAP program and the NRCS was touched on. It sounds like the Ruffed Grouse Society is lumped in with it as well with the forestry programs.
What is a person getting into?
What is good about the program?
What is bad about the program?
 
Yes, I'm hoping to get approved for the EQIP program this year to get support for invasives control. In a nutshell, foresters evaluate your property and determine what plans may be appropriate for your property. If you get approved you can get financial assistance.
 
Yes, I'm hoping to get approved for the EQIP program this year to get support for invasives control. In a nutshell, foresters evaluate your property and determine what plans may be appropriate for your property. If you get approved you can get financial assistance.
I have not looked very far into it yet, but does it come with restrictions on what you can do on your property such as clearing land for food plots or trails. They talk about having a plan written like the MFL program, but in MFL you have your hands tied to what you can do.
 
It worked well for me here in VA. Basically you work with NRCS biologists and others to develop a plan. There are certain practices that NRCS will pay a certain amount for. Once you agree on a plan, you execute it, knowing what the NRCS payment will be. You put up the money up front. You can do work yourself or hire contractors. After the work is complete, NRCS comes out to inspect to make sure it was done to there standards (you get a copy of the standards up front). They then pay you for completing that work.

We had 3 practices that qualified for reimbursement with our plan, herbicide application, firebreak installation, and controlled burns. For herbicide application NRCS pays on a per acre basis. This was to spray a clear-cut to keep stumps from regenerating. We hired a crew to come in and spry for us. They work on NRCS projects and knew the standards well. After they sprayed, we waited to give the herbicide time to work and then NRCS came in and inspected to ensure we got a sufficient kill. They then paid us. The cost we paid the contractor exceeded what NRCS paid so we had to cover the difference.

Firebreaks were paid for on a per-foot basis. Again, we hired a contractor with a dozer at an hourly rate with and estimate of how many hours it would take him to complete the breaks. After he completed the firebreaks, NRCS came in and used a GPS and drove all the breaks with an ATV. They then paid us on a per linear foot basis. It turned out we got paid more for the breaks than we had to pay the contractor plus he had hours left on his estimate after he finished the breaks. Since his dozer was on site and we did not have to pay additional transport, we had him use those extra hours to clear and destump some wildlife openings where we will plant clover and fruit trees. So, we got that added benefit plus we were able to pocket the difference between what NRCS paid and what the contractor charged.

Finally we conducted controlled burns. We hired a burn coordinator and crew and another owner and I added our labor to his crew. He brought a dozer out "just in case" things got out of control. We found there were a few more small breaks we needed so he did that. He also kept the dozer on site for a week after the burn again "just in case". During that time, he let me operate it. He charged me an unoperated rate which was less than he charged per hour to operate it. That let me get a few other small wildlife openings and such cleared. The burn itself was both for our clear-cuts and for our thinned pines. We did lose some pines when the fire got a bit hot in places, but it really did a great job for wildlife. The controlled burn coordinator suggested that we take the controlled burner class offered by VDOF so that in the future we could burn ourselves. He said we could rent his dozer at an unoperated rate "just in case" for those burns. That would let us pocket most of the controlled burn money. I haven't taken the class yet but am considering it. Again, after we conducted the burn, NRCS came out and inspected it and then reimbursed us. They then paid us on a per acre basis. I used ArcGIS to provide them maps with all the acreages and liner footage estimates.

We had zero issues with NRCS being intrusive or telling us what to do. They acted in an advisory capacity and told us what they would pay for and how much. We then made the decision what to do. They were very supportive of all of our efforts. We basically got a lot of the cost covered for stuff that we would have eventually done ourselves when we could afford it.

I have nothing bad to say about EQIP. Last year they guided us toward a new program that pays for particular practices. You basically make a plan and put it into their software model and it squirts out a payment. It was described to us that EQIP is aimed at getting a new property up to snuff and then this new program with CSP practices is aimed at supporting you for using certain practices in an on going way. We could not make the numbers for this new program work for us. Because of the growth state of our pines, we covered about half the property with our EQIP plan. In a couple years the pines on the other half will be old enough to thin. We are looking to use the EQIP program again for that other half.

The new program with CSP practices was fairly new and changing. We will probably look at it again after we use the EQIP on the other side.

Thanks,

Jack
 
Yoder, nice explanation! The NRCS boys and girls here in Virginia are top notch! There are two things I would offer. The first is there's usually more demand for the money than there is money to go around in any given year, a testament to the programs popularity. Second, you're probably asking what do I get for it and how can they tell me what to do? By that, I mean there should be a recognized conservation need. It's a contract. There's a little room for negotiation. In exchange for what you get there's the reverse concerning what you have to give.
The payoff, and we can argue about how effective the program is, to society is improvements to "soil, water, plant, animal, air and related natural resources on agricultural land and non-industrial private forestland."

https://www.nrcs.usda.gov/wps/portal/nrcs/main/national/programs/financial/eqip/
 
I happened upon the EQIP program through the nrcs a year after I bought my farm. They approved me to clear 50 acres of invasive Japanese bush honeysuckle. Folks I hate that stuff with a passion. You couldn't see 5 foot through the woods it was so thick and I spent three years cutting and spraying the lousy stuff. All that to say, I wouldn't have done it if they didn't pay me to do it. I ended up paying for most of the farm with the funds though! (They don't pay as much anymore I've been told). But it was definitely worth it. Although I'm still spraying the many resprouting bushes. I'm now a part of the afore mentioned conservation stewardship program (CSP) where they are funding me to plant, get this...edible native food bearing plants hahaha! I'm like, ok you want to pay me for something I wanted to do anyway go ahead! All in all, I've been very pleased with their service. Nice guys to work with, not picky and overbearing on my land. I wouldn't hesitate to give them a call and attempt to sign up for one of the programs. As also mentioned, they do run out of money and some of the things like tsi I applied for I haven't gotten approved for. Best wishes.
 
I have some first hand experience on this since I get the pleasure of sleeping next to an nrcs employee at night.

Keep in mind nrcs is a branch of the usda which is a federal agency. Wi dnr is a state agency.

In addition nrcs is a conservation agency with no regulatory power. They have resources (carrot) to help with effforts that are considered beneficial to the conservation efforts. If you follow the contract you get the money and if you don't you don't get paid(stick). Pretty simple really.

Look online for equip resource concerns. Different states have different fund pools and resource concerns. If you are lucky to be in a high resource concern area with lots of money your deer projects get much cheaper.
 
It sounds like it might not be too bad of a deal to get tied in with. My biggest fear with anything would be penalties or someone telling me I can't do something I want to with my property. The financial aspects are nowhere near the top of my list of needs either. I really appreciate the responses and keep them coming.
 
There are no active penalties with EQIP. If you don't complete a planned activity or don't do it to their standard, you simply don't get paid. The biggest negative is all the forms.

Thanks,

Jack
 
I have both EQIP and WHIP projects through the NRCS, both were tree planting projects. I would do it again as they were easy to work with. It was done early spring of 2012 then we were hit with the major drought that summer. NCRS gave me a do-over in 2013 to replant some of it to cover losses. Haven't heard from them since.

They were one-time payments - not annual amounts like a CRP project. However they did not take out crop areas - these plantings were to convert fescue pastures. Note the money received will be reported to the IRS as taxable income on a 1099??. So document your expenses to avoid paying taxes on it.
 
From a tax perspective, how do you deal with the income? Is it considered farm-related? Specifically, what form would I use to offset the income with expenses?
 
From a tax perspective, how do you deal with the income? Is it considered farm-related? Specifically, what form would I use to offset the income with expenses?

It is income and you receive a 1099 and need to report it as income. We are organized as an LLC business and this is just income like our timber sales. The costs associated with our business are included on the K-1. We leave the details to a CPA. I'm not giving tax advice but I can talk in general about our approach. We are a pine farm and timber is our primary product. Costs associated with growing that timber in a sustainable way are generally deductible against income. We worked with the state department of forestry to develop a forest stewardship plan. This plan includes producing timber in wildlife friendly way. For example, when we leave riparian buffers rather than planting every inch of the land with pines, we forgo income in order to execute a best practice, improve water quality, and make the property more wildlife friendly. Generally, any expense we incur for a practice that is within the bounds of the forest stewardship plan can be deducted against income. Again, a CPA and tax professional make the final call and deal with the complexities of equipment depreciation and such.

You must report the income. Whether you can offset part or all of that income with deductions depends on your specific situation.

Thanks,

Jack
 
From a tax perspective, how do you deal with the income? Is it considered farm-related? Specifically, what form would I use to offset the income with expenses?
Agricultural Program Payments
https://www.irs.gov/publications/p225/ch03.html#en_US_2016_publink1000217735

IRS Publication 225

See the Section under "Agricultural Program Payments," a portion of which is provided below.
You must include in income most government payments, such as those for approved conservation practices, livestock indemnity payments, livestock forage disaster payments, price loss coverage payments, or agricultural risk coverage payments, whether you receive them in cash, materials, services, or commodity certificates. However, you can exclude from income some payments you receive under certain cost-sharing conservation programs. See Cost-Sharing Exclusion (Improvements) , later.

Report the agricultural program payment on the appropriate line of Schedule F, Part I. Report the full amount even if you return a government check for cancellation, refund any of the payment you receive, or the government collects all or part of the payment from you by reducing the amount of some other payment or Commodity Credit Corporation (CCC) loan. However, you can deduct the amount you refund or return or that reduces some other payment or loan to you. Claim the deduction on Schedule F for the year of repayment or reduction
 
Thanks guys!
 
They also talked about writing a forest management plan. Obviously I understand it's a long term plan, but once they write it up is it just for reference with this program or am I locked in long term like Wisconsins MFL program?
 
In our case we were only locked in to whatever was in our contract for the duration of the contract, not our forest stewardship plan. The contract with NRCS only specified what they would pay us for, but that contract was worked out in the context of our larger forest stewardship plan which is a guiding document, not an obligatory one. The only penalty for not doing what we said was not getting paid.

This was our experience in VA. I don't know if anything is done differently in WI or not but it is a federal agency.

Thanks,

Jack
 
The staffing at NRCS varies by state. Here in Virginia we have a grasslands biologist, a wildlife biologist, an agronomist, varied flavors of engineers along with the many ecology and conservation specialists. The mission for NRCS is the conservation of private lands owned by agricultural producers. That includes forestland owners as well as traditional farm and cropland owners. While there are several incentive programs that will pay you to improve, NRCS also offers free technical services and advice to qualified landowners. All you need to do is ask. No fees. No obligations. Then it's up to you to pull the trigger - and pay for implementation of the plan should you choose to do so.

If you want to hear an involved give and take discussion get a forester and a wildlife biologist (NRCS and/or state) on you property at the same time. When the conversation is over, you'll need to fit the pieces of the puzzle together. it's an interesting exercise and a lot of free consultation time!
 
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There are clawbacks and penalties if you violate your EQIP contract which has a life period such as 10 years. Perhaps not bad, but they are there. I did TSI through an EQIP cost share in 2011. Over its 10 year period its supposed to remain as-is. At the time I knew we might build a pond above this tract, but now that we have surveyed it we would prefer to move the dam further down and getting into this tract of TSI. NRCS says they will pro-rate the cost share of the acreage I violate I will have to refund, and the state NRCS conservationist can apply up to a 20% penalty of the entire contract. Sounds like this penalty is at the discretion of this person. My worst case scenario is a $288 bill, not be a deal breaker for me - however if I were to violate my tree planting EQIP it could be some serious money.

EQIP is still a great program, just realize you are signing up to have the gov't looking over your shoulder.
 
I have no complaints. I got a grant to mow 8 acres of tag alder for regeneration. It cost me 2000 to have it done and they paid me 3300. Next will be the forestry plan, which they will pay for, but is only advisory as I understand it. Only downside for me is the time element. It generally takes at least a year to go thru the entire process from application to payment, but the agents were very helpful with any questions I had. I will continue to use them to help me achieve MY GOALS.
 
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