Environmental Quality Incentives Program

Arkansas 2008 Environmental Quality Incentives Program (EQIP)

A Brief Description

The following information is not intended to be comprehensive.  More information regarding Arkansas’ EQIP program is available at this web site - http://www.ar.nrcs.usda.gov/programs/eqip/eqip.html  - or at any of the local Natural Resources Conservation Service (NRCS) field service centers.

Priorities for EQIP in Arkansas are to reduce erosion; reduce pollution from animal wastes, nutrients and sediments; improve irrigation efficiencies and reduce dependence on ground water for irrigation; improve the health and diversity of forests; improve the management of grazing lands; improve wildlife habitat associated with agricultural production land.  Contracts are funded under specific competitive groups related to these concerns

Cost share rates for practices range from 40 percent to 75 percent.  Applicants who can certify they meet the Limited Resource Farmer standard are eligible for an additional 15% cost sharing – until the target of $600,000 for this group is reached - provided the application ranks high enough for funding.  A few incentive payment practices are available at 100% payment for no more than three years if eligible.

Four funding categories have been established to treat special needs beyond the basic statewide categories.

1.    Alternative Crop / Small Farm Initiative – this category is available for producers who own or operate at least five acres, but no more than 100 acres, of cropland or grassland.  At least ten percent of the owned or operated cropland or grassland must be used to plant an alternative crop as described in Arkansas’ alternative crop definition for EQIP.

2.    L’anguille TMDL Project - this category is available on land falling within the boundaries of a 319 project addressing the L’Anguille River TMDL status.  Practices that provide or support specific erosion control and sediment reduction measures are the only practices available for contracts in this category.

3.    Small Grassland Farms –  this category is available for producers who own or operate no more than 100 acres of grassland and who can document that at least 60% of their household income for the past two years comes from farming activities, and that household income is no more that two times the counties medium income.

4.    Waste Systems Closure – this category is to help producers who find it necessary to close a liquid animal waste system to meet permit requirements because they have lost their production contract through no fault of their own and no other contract is available.

Ranking and Selections

Applicants must work with the NRCS field office staff to develop a conservation plan identifying the resource concerns to be treated, the practices to be used, and the amounts of each practice needed.  This information will be used to rank the application within the appropriate funding category and to estimate the cost shares needed to fund the contract.

For any given practice, cost shares are limited to the least cost alternative to treat a resource concern. Cost-share may be paid on any eligible practice only for those minimum units needed to treat a resource concern being addressed by EQIP.  NRCS has established payment caps on some practices.  The participant must bear full cost of installing any additional units above this minimum treatment.  Many practices are only available for cost share under certain circumstances that can be explained by NRCS field staff.

Applicants who do not receive funding before funds are exhausted may defer their application to next year.  They will have an opportunity during the next year to modify their plan if desired.  This deferral does not mean the application is not eligible for funds, but that enough other applications ranked higher to use up available funds.

All contracts selected for funding must be signed and obligated by dates set at the national level.

Applicant Responsibilities

Applicants are responsible for providing all necessary documentation regarding eligibility.  An application cannot be considered for funding until all eligibility criteria have been met.  This includes:

• Informing NRCS of the correct name, whether individual, corporation, partnership, trusts, etc., in which the application is being filed.  This information affects who eligibility criteria apply to, who payments are made to, how payment limitations are tracked, and who will receive form 1099 for tax purposes.  Inaccurate information can lead to delays in making payments when work is completed.
• Documenting either ownership or control of the property.  This can be a deed, a written lease, or letter from a landowner stating that the applicant will have control of the property for the life of the contract.  If this property is owned by a corporation and certain other entity types, a form CCC-501A listing all owners may be needed if information is not already on file correctly with the Farm Services Agency.
• Compliance with Highly Erodible Land and Wetland Conservation provisions.  A form AD-1026 must be filed with the Farm Services Agency (FSA) for all individuals, corporations, and members of entities.
• Compliance with Adjusted Gross Income provisions.  A current form CCC-526 must be on file with the FSA.
• Proof of agricultural activity on the land, if requested by NRCS.
• Legal proof of authority to sign documents for entities or other individuals.  For any applicant other than an individual, this can be a notarized power of attorney (see NRCS for the proper form), an official corporate document granting that authority, or official corporate minutes providing that information.  There is no provision that allows a husband and wife to sign for each other without this same kind of documentation.
• Certification as a Limited Resource Farmer (LRF), if needed.  NRCS will perform a 5% spot check of applicants certifying as a LRF, requesting copies of tax documents or other information.
• Certification of eligibility for the Small Grassland Farms category, if needed.  NRCS will perform a 5% spot check of applicants certifying in this category, requesting copies of tax documents or other information.
• Applicants requesting assistance with any irrigation related practice must self-certify (with confirmation by NRCS), that the field on which the practice will be applied, was irrigated two out of the past five years.
• Applicants requesting participating in the Waste Systems Closure category must provide proof their operation is closing through actions of a third party, i.e. loss of grower contract.

Other Participant Responsibilities

• Applicants chosen for funding must provide banking information for direct deposit payments for all individuals or entities receiving payments before the contract can be approved.

• Participants must complete at least one cost share practice within twelve months after contract approval.

• If a contract includes practices to be used for the storage and handling of animal waste, a Comprehensive Nutrient Management Plan must be developed prior to installing any of these practices and must be implemented within three years after the final practice is installed.

• All cost share practices must be completed one year prior to expiration of the contract.

• Materials used to install practices must be new.  The only used material acceptable is steel pipe and the specific material must be approved by an NRCS employee with job approval authority prior to installation.

• NRCS may require payment of liquidated damages up to 20% of the original contract value, plus repayment of cost shares on any implemented practice if a participant cancels the contract, sells the property and no successor-in-interest to the contract is established, or it is terminated by NRCS because of a violation.

• Participants may use a Technical Service Provider (TSP) to assist with the design and implementation of practices.  NRCS will pay the participant certain amounts for the use of TSP provided they are notified that a TSP will be used and the contract is modified to include those funds before the TSP begins work.

• Participants who will use a TSP or perform the work themselves must contact NRCS prior to beginning work to be sure they have proper information to complete the practice in a manner that meets NRCS standards and contract requirements.

• The document signed by the participant is a legal, binding contract and participants should be sure they understand the information in the Appendix provided as a part of that contract, and not assume too much. Participants should visit with their NRCS representative if they have any questions about the contract.

Last Modified: 09/18/2007

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