USDA Offers Energy Cost Offset for Completion of EQIP Practices

Help for Producers Hard-hit by Escalating Energy Costs

MORGANTOWN WV, January 23, 2006–The USDA Natural Resources Conservation Service (NRCS) announced $40 million is available nationwide for one-time payment adjustments that will allow eligible Environmental Quality Incentives Program (EQIP) participants to complete conservation practices that have been delayed because of recent increases in energy prices.

"There are many conservation practices that farmers have put on hold because of increasing energy prices," said West Virginia State Conservationist, Ronald L. Hilliard. "This adjustment will help our producers to fully implement those practices which will increase the protection of our natural resources and in some cases, lessen the impact of high energy prices by reducing producers' need for energy and energy-related inputs."

This assistance is part of USDA's effort to mitigate the impact of high energy costs on agricultural producers. The one-time adjustment will apply to participants who signed EQIP contracts in 2004 or earlier. The increase in payment will apply to specific practices that have been most affected by spikes in the cost of concrete, steel, plastic pipe, and other construction materials. The increase will only be paid for practices that are completed between March 1 and June 30, 2006 and will focus on specific practices that have escalated in price by 20 percent or more because of rising energy costs.

EQIP is a voluntary conservation program for farmers that promotes agricultural production and environmental quality administered by USDA's Natural Resources Conservation Service. EQIP offers financial and technical assistance to participants who implement structural or management practices on agricultural land.

For more information on this one-time adjustment, contact your local USDA Service Center, listed in the telephone book under U.S. Department of Agriculture, or your local conservation district. Information is also available on the World Wide Web at: http://www.wv.nrcs.usda.gov/.

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