Grassland Reserve Program (GRP)

Helping landowners and operators restore and protect grassland, including rangeland, pastureland, and certain other lands, while maintaining the areas as grazing lands

The Grassland Reserve Program (GRP) is a voluntary program that emphasizes support for grazing operations, plant and animal biodiversity, and grassland and land containing shrubs and forbs under the greatest threat of conversion.

GRP is authorized by the Food Security Act of 1985, as amended by the 2002 Farm Bill. The USDA Natural Resources Conservation Service (NRCS) and USDA Farm Service Agency (FSA) administer the program in cooperation with the USDA Forest Service.

Participants voluntarily limit future use of the land while retaining the right to conduct common grazing practices; produce hay, mow, or harvest for seed production (subject to certain restrictions during the nesting season of bird species that are in significant decline or those that are protected under Federal or State law); and conduct fire rehabilitation and build firebreaks and fences.

Project Examples
Because this program's first year of applications was in fall of 2003, examples are unavailable at the time of printing this guide.

Application and Financial Information
Applications may be filed for an easement or rental agreement with the local NRCS or FSA office at any time during each year's designated application period. The program offers several enrollment options:

Permanent easement. This is a conservation easement in perpetuity. Easement payments for this option equal the fair market value, less the grazing value of the land encumbered by the easement. These values will be determined using an appraisal process.

30-year easement. USDA will provide an easement payment equal to 30 percent of the value of the land for the period during which the land is encumbered by the easement. For both easement options, USDA will provide all administrative costs associated with recording the easement, including appraisal fees, survey costs, title insurance, and recording fees. Easement payments may be provided, at the participant's request, in lump sum or annual payments (equal or unequal amounts) for up to 10 years.

Rental agreement. Participants can choose a 10-, 15-, 20-, or 30-year easement. The USDA will provide annual payments in an amount that is not more than 75 percent of the grazing value of the land covered by the agreement for the life of the agreement. Payments will be disbursed on the agreement anniversary date each year.

Restoration agreement. If restoration is determined necessary by NRCS, a restoration agreement will be incorporated within the rental agreement or easement. The Commodity Credit Corporation (CCC) will provide up to 90 percent of the restoration costs on lands that have never been cultivated, and up to 75 percent of the cost on restored grasslands. Participants will be paid upon certification of the completion of the approved practice(s) by NRCS or an approved third party. Participants may contribute to the application of a cost-share practice through inkind contributions.

Funding comes from the CCC, which made $49,942,000 available to implement the GRP in fiscal year 2003. The CCC holds the easement unless the USDA Secretary authorizes a private conservation or land trust organization or state agency to hold or enforce an easement.

Applicants will be selected at the state level by the NRCS State Conservationist and the FSA State Executive Director. Selection criteria for each state will be made available upon request to the public before signup. Each state's application selection criteria will be available on the NRCS Website at www.nrcs.usda.gov/programs/farmbill/2002/index.html and www.fsa.usda.gov/FSA/webapp?area=home&subject=copr&topic=grp

Eligibility, Uses, and Restrictions
Either easement option is available for application from landowners who can provide clear title. Landowners and others who have general control of the acreage may apply for a rental agreement.

The Adjusted Gross Income provision of the 2002 Farm Bill affects eligibility for GRP and several other 2002 Farm Bill programs. Individuals or entities that are not eligible to receive program benefits or payments if they have an average adjusted gross income exceeding $2.5 million for the 3 tax years immediately preceding the year the contract is approved.

However, an exemption is provided in cases where 75 percent of the adjusted gross income is derived from farming, ranching, or forestry operations.

Eligible land includes:

Grassland or land that contains forbs or shrubs (including improved rangeland and pastureland)
Land that is located in an area that historically has been dominated by grassland, forbs, and shrubs and has potential to provide habitat for animal or plant populations of significant ecological value if the land is retained in its current use or restored to a natural condition

Incidental lands may be included to allow for the efficient administration of an agreement or easement.

Participants in GRP must meet "swampbuster" and conservation compliance provisions. GRP rental agreements and easements prohibit:

Production of crops (other than hay) that require breaking the soil surface, as well as fruit trees and vineyards
Any other activity that would disturb the surface of the land, except for appropriate land management activities included in a conservation plan.

Participants are required to follow a conservation plan developed by NRCS (or a designated third party) and the participant to preserve the integrity of the grassland.

There is no national maximum limitation on the amount of land that may be offered for the program, although there is a minimum requirement of 40 contiguous acres, barring special circumstances.

Contact
NRCS
Floyd Wood
Phone: (202) 720-0242
E-mail: floyd.wood@usda.gov

FSA
Jim Williams
Phone: (202) 720-9562
E-mail: jim.williams@wdc.usda.gov

Internet
www.nrcs.usda.gov/programs/GRP/

Last Updated June 16, 2007