Enrollment is now underway for the Conservation Reserve Enhancement Program (CREP) for 16 counties in the Ohio River Basin. CREP is available for the first 65,000 acres enrolled, after the acreage limit is reached, it will be closed indefinitely. CREP program participants will receive financial incentives from FSA to voluntarily enroll fragile farmlands for periods of 10 to 15 years.

From a financial standpoint, participants could be eligible for an annual rental payment, a signing incentive payment, a practice incentive payment and cost-share assistance. Specific rental rates will vary from farm to farm. Rental rates are based upon soil types, percent of slope and length of slope. While CREP may seem like a good deal financially, its not just easy money; participants must still abide by CREP guidelines.

It also is important for everyone to understand the goals of CREP. They are: To improve water quality, to improve wildlife habitat (birds and rabbits), and to increase farm income on marginal land.

CREP is not designed to increase farmland rental rates charged to farmers by farm owners. CREP also is not designed for farm owners to enroll land without consent of a tenant farmer. CREP payments can be shared between a farm owner and farm operator, but if the operator does not want to participate, the owner will not qualify by removing the tenant from the farm.

Listed here are some of the important features of the CREP program that must be followed by participants. Failure to follow program guidelines will result in liquidated damages being assessed by the county committee and contract termination.

Noxious weeds must be controlled on CREP land. Mowing or spraying may be used on noxious weeds with approval from the county committee. Multi-Flora Rose and Canadian Thistle spreading onto neighboring farms in prohibited.

Maintenance requirements will vary from farm to farm depending upon the conservation plan for CREP. Participants will receive an annual payment for maintenance of CREP land in addition to the annual CREP payment. Most of the time, mowing will be required on

of the acreage each year. Mowing the entire CREP acreage each year is prohibited.

Eligible cropland must have been cropped for 4 of the years between 1996 and 2001. Woodlands are ineligible unless cattle are in the woods and a creek is present. Marginal pastureland is eligible within 180 feet of either side of a creek.

Landlord/Tenant provisions apply to CREP participants. Farm operators can not be removed from tenant status just so the farm owner can enroll in CREP. If a farmer is paying $12 per acre rent and the farm owner wants the higher rent offered by CREP, the land is ineligible unless the landlord and tenant agree on the CREP land. In some cases, owners and operators can share the CREP payment and the farmer can still farm the best fields on the farm.

Since CREP contracts are for 10 to 15 years, participants need to be aware that revisions and terminations are possible in some cases without penalty and in some cases with a penalty. Revisions to contracts due to changing shares or names for successors will result in no penalty. Contract terminations due to death will result in no penalty to the estate or heirs. Contract termination due to selling the land or converting to non-agricultural uses will result in a penalty. The penalty will be all payments received plus interest, and in some cases could result in liquidated damages. If a CREP farm is to be sold and the new owner does not want to continue the contract, the owner should add to the purchase price enough to repay the CREP payments plus interest. Liquidated damages will only be assessed in certain situations.