	Introduction

Agricultural conservation has been a public policy issue for more than 60 years, an issue repeatedly recast as new problems have emerged or old problems have resurfaced. Early conservation efforts were focused on two themes—reducing high levels of soil erosion and providing water to agriculture in quantities and quality that enhanced farm production. These programs, all administered by the U.S. Department of Agriculture (USDA), were the first conservation programs designed to deal with environmental problems related to the off-farm impacts of agricultural activities. Many conservation programs receive continued support among producers and Congress, as evidenced by the recent reauthorization and expansion of existing programs and creation of new ones in the most recent farm bill (Food, Conservation, and Energy Act of 2008, P.L. Current Major Activities

USDA's conservation efforts have centered in recent years on implementing conservation programs that target working lands, remove land from production (also known as retiring land) or create conservation easements, and provide technical assistance. Agricultural Conservation Issues in the 111th Congress

		2008 Farm Bill Implementation

The Food, Conservation, and Energy Act of 2008 ( P.L. 110-246 ), the 2008 farm bill, reauthorizes almost all existing conservation programs, modifies several programs, and creates various new conservation programs. Environmental Quality Incentives Program (EQIP)

With the 111 th Congress experiencing continued budget constraints, EQIP could face similar challenges, with a potential reduction in mandatory funding levels and a continuing backlog of unfunded applications. Payment and Income Limitations

Two types of payment limits exist for conservation programs. The effect of payment limits varies by program and the conservation practices implemented. Despite the increase in mandatory funding authority, many conservation programs have been reduced or capped through annual appropriations acts since FY2003. Congressionally Directed Projects

The Watershed and Flood Prevention Operations program has received discretionary funding for an increasing number of congressionally directed projects (commonly referred to as earmarks). As appropriated funding decreased, the number of earmarks increased, reaching 97% of appropriated funding in FY2009 and 74% in FY2010. Congress has addressed the issue of how to fund technical assistance in mandatory programs in the past and will likely do so again in the future. Financial Audit and Contract Administration

Most USDA agencies are covered by a consolidated financial statement audit for the entire department. The evolving debate over climate change legislation has provoked several questions regarding the role of agriculture and forestry. Other environmental concerns for agriculture, such as concentrated animal feeding operation (CAFO) regulations, greenhouse gas emission reporting for livestock producers, and wetlands mitigation, could lead to expanded opportunities for many conservation efforts.
Agricultural conservation has been a public policy issue for more than 60 years. Congress has repeatedly taken action on the issue through water and soil legislation, often as part of omnibus farm bills. Early policy decisions were directed at addressing natural resource concerns on the farm, primarily reducing high levels of soil erosion and providing water to agriculture in quantities and quality that enhanced farm production. In more recent years, conservation policy has shifted to concerns about the off-farm impacts of agricultural activities.
The latest farm bill, the Food, Conservation, and Energy Act of 2008 (P.L. 110-246), reauthorized most existing conservation programs, modified several programs, and created a few new programs. The U.S. Department of Agriculture's (USDA's) conservation efforts have centered on implementing these conservation programs through working land conservation practices, retiring land from production or establishing conservation easements, and providing technical assistance. Program implementation controversies could lead to congressional oversight or action, especially given the recent financial statement audit reports on conservation program payments at USDA.
Other emerging issues in the 111th Congress could have a significant impact on agricultural conservation. The climate change debate and use of ecosystem services markets has brought conservation to the forefront of discussion on the role of agriculture in reducing greenhouse gas emissions. Also, the effect of ethanol production on natural resources and changes in land use is an ongoing concern in the area of biofuels policy. Other environmental issues for agriculture such as concentrated animal feeding operation regulations, greenhouse gas emission reporting for livestock producers, and wetlands mitigation could lead to expanded opportunities and challenges for many conservation efforts.
Appropriations and budget issues continue to influence conservation programs and policy. Conservation programs with mandatory funding have been routinely reduced through annual appropriation bills. In FY2009 and FY2010, the reductions were limited to a handful of programs, with the Environmental Quality Incentives Program (EQIP) receiving the largest reductions, including $270 million in FY2009 and FY2010. The watershed programs have experienced an increase in congressionally directed projects through appropriations, with Watershed and Flood Prevention Operations being 97% earmarked in FY2009 and 74% in FY2010. The ongoing issue of funding for conservation technical assistance in mandatory programs will likely be raised again due to an expiring authority.
Other issues of potential interest in the 111th Congress include implementation of conservation program payment and income limitations, use of the Conservation Effects Assessment Project, and recent financial audits and conservation contract administration concerns.