April 1, 2008
SUBJECT:
LTP – Harvesting Cover Crops for Grain under
EQIP Contracts
File Code: 300-19
TO: All Employees
The
purpose of this memo is to address questions arising on the harvest of cover
crops for grain where the cover crops were seeded under the 2007 Emergency
Cover Crops provisions, or in 2008 EQIP contracts under the Cover Crop/Soil
Quality Initiative. Due to the ever
rising price of all grains, producers are asking about the potential to
harvest, for grain, wheat that was planted as a cover crop under the EQIP
program.
The
drought conditions of 2007 damaged pasture and hayland resources causing a need
for Indiana livestock producers to graze or harvest row crop residues for
supplemental forage. To reduce soil
resource degradation as a result of this grazing and harvest, there was a need
to seed cover crops. In an effort to
meet this need, additional EQIP funds were requested and received for FY07. Based on the demand the cover crop initiative
was included as part of the FY 08 EQIP. Cover
crop only applications were funded on a first come - first serve basis without
ranking prior to October 15, 2007.
The
purposes of the 2007 Emergency Cover Crop and the 2008 Cover Crop/Soil Quality
Initiative were to:
In
keeping with the intent to protect the resource base Indiana Bulletin 300-8-1,
dated October 1, 2008, defined provisions for the implementation of the 2008
Cover Crop/Soil Quality Initiative prior to the October 15, 2007 seeding cutoff
date. One of those provisions prohibits
the harvest of cover crops for grain.
This
provision was added to the “EQIP Indiana 2008 State Guidelines” through the
changes incorporated by Indiana Amendment 4 to the Conservation Programs Manual,
440-V-CMP, Part 515, released by Indiana Bulletin 300-8-8, dated November 1,
2007. Both have been well advertised and
discussed.
Under
the EQIP program NRCS has no authority to pay for the planting of commodity
crops for harvest. Additionally, there
is no method to accept a repayment of cost shares paid and still maintain a
valid EQIP contract. Therefore, any cover crops that are
harvested for grain are violations of the contract and are subject to contract
termination and full cost recovery.
Those
participants with cover crops only in their EQIP contracts may decide to
request cancellation of their contracts and pay the cost recovery and
liquidated damages. That would be their
choice.
Participants
with cover crops and other cost shared items in their contracts will need to
fully evaluate the cost of contract cancellation/ termination vs. the market
advantage of selling the wheat. These
decisions are up to the participant, and NRCS personnel should refrain from any
financial discussion beyond calculating potential cost recovery.
To
ensure that all participants have the same information, District
Conservationists should remind EQIP participants with wheat cover crops of the
contract provisions and the potential
for cost recovery if the wheat is harvested.
The State Conservationist will make the final determination of cost
recovery.
If
you have questions on this, contact Jim Dunaway, EQIP Program Manager, at
317-290-3200, ext. 334.
/s/
JANE E. HARDISTY
State
Conservationist