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CRP Questions

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Charger5

Member
Hey All-

So a buddy and myself bought 40 acres this spring, of the 40 acres about 23 were just enrolled into CRP for the next 10 years starting next year. It's enrolled into the Quail Habitat program.

This is our first go around with this process and I've heard a lot about cost sharing and what not, and I'm aware of the sign up incentive for the first year as well as the standard FSA 50% cost share, but what exactly does that all include? We've been trying to meet with our local FSA guy but he has been fairly busy the last few months.

I've been told we get paid for when we are working on the CRP ground but how is that documented? Are there other things that are cost shared? Our emphasis is on deer hunting but obviously establishing quail/pheasant habitat would be great as well.

Is there anything that you do for tax deductions as well? Sorry for all the random questions, but just been getting mixed answers and trying to sort through it all.
 
Not an expert by any means, but have the CRP thing on a couple of properties over the past 20 years or so. The "cost share" usually applies only to some of the mandated CRP programs for mid-contract management. This might include prescribed burning, interseeding, etc... Documentation of these expenses is pretty much on the honor system but there are maximum allowable payments. Food plots, routine weed control, non-program habitat enhancement, fence maintenance, etc are not normally cost shared. Pretty much all of your expenses associated with work done, property tax, chemicals, fertilizer etc the entire piece are tax deductible against tax burden on your CRP payment. I believe this to be pretty much correct but a check with the FSA person & your tax accountant would be prudent. I think you will find that the ladies in the FSA office in Red Oak to be of great help and can answer many if not all of your CRP program questions. That who I deal with most of the time. Have fun!
 
Cost share happens at two types of points and will be spelled out in the contract.

1. establishment. This includes buying seed, spray, planting, etc.

2. MCM (Mid Contract Maintenance). Your contract will spell out at what years MCM will be required. From there you will have various options on MCM that all pay differently (you will get sent paperwork on it ahead of time). Discing, spraying, burning, etc. Many also include an option for additional interseeding. MCM usually happens a few times in the window from 1/3 to 2/3 thru the contract

In both cases there will be a "max payment" specified which is 50% of cost incurred. Hypothetical example: Cost share at year 4 for burning, discing, along with interseeding of red clover (making this up) will pay $45/acre. Realize $45/acre is 50% of cost, so you would have to come up with $90/acre in costs to recoup the $45/acre.

From there, as stated above, it is honor system (this is the part that cracks me up). You literally make a line item invoice invoice with hourly rates, etc.

John Deere model 5115M 8 hours x $125/Hour
Honda 600ABC 6 hours x $85
Clover seed 110# x $3.00/lb
WHATEVER
WHATEVER
WHATEVER

Turn in the invoice, sign the provided USDA form, get paid.
 
So did the previous owner already plant the NWSG?I take it he got the sign up bonus.About everything mentioned above is the way it is,just be sure to check your times and dates you can work on it.
 
The FSA guy being fairly busy is an excuse. He/she should have found an hour to review your file in two months.

I would recommend an appointment, get the cost share doc. Also as mentioned, hopefully the previous owner did not get the bonus payment.
 
The CRP packet should have a spreadsheet in it that shows what exactly is reimbursed, how much, etc. For instance, I help manage some CRP and the packet for the new quail program has it broke down line by line into things like "spraying # acres at a max reimbursement of $X/acre", "seedbed prep for firebreak - # acres at a max reimbursement of $X/acre", and so on...

So in that example, if the co-op is hired to spray it, and they charge 20/acre, they will reimburse $18/acre (90%) as long as 18 isnt over the max. For something like that, you would simply turn in the bill.

If you are going to do the work yourself (say you are going to do the seedbed prep for the firebreak by disking it), you would write up basically an invoice for yourself and turn it in and will get reimbursed the set amount.

My CRP packet has directions on what they want on an invoice and all that stuff..

I would talk to your FSA guy again...
 
cornfedkiller said:
The CRP packet should have a spreadsheet in it that shows what exactly is reimbursed, how much, etc. For instance, I help manage some CRP and the packet for the new quail program has it broke down line by line into things like "spraying # acres at a max reimbursement of $X/acre", "seedbed prep for firebreak - # acres at a max reimbursement of $X/acre", and so on...

So in that example, if the co-op is hired to spray it, and they charge 20/acre, they will reimburse $18/acre (90%) as long as 18 isnt over the max. For something like that, you would simply turn in the bill.

If you are going to do the work yourself (say you are going to do the seedbed prep for the firebreak by disking it), you would write up basically an invoice for yourself and turn it in and will get reimbursed the set amount.

My CRP packet has directions on what they want on an invoice and all that stuff..

I would talk to your FSA guy again...
Click to expand...
I just got my crp packet for the quail safe program in the mail this information is spot on.
 
I can't remember , but you can possibly designate an area for plots and be paid for those acres...

Annual plots only
 
  • Deleted by Charger5
  • Reason: replied to wrong msg
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