United States Department of Agriculture
Natural Resources Conservation Service		 West Virginia Go to Accessibility Information
Skip to Page Content




CREP Calculating Example for One Acre

FUNDING EXAMPLE

The following dollar calculations are made based on a projection that reflects an estimation of USDA payments using actual contract practices and costs. This example uses a projected one (1) acre contract for simplification in calculations.

Assumptions

  • Calculations made recognize a contract on marginal pastureland with a conservation plan requiring the installation/establishment of Practice CP22 - Riparian Buffer. (This is the predominant practice utilized in WV)
  • Riparian Buffer area is 100 feet wide (50 ft. per each side of stream) X 435 feet in distance. (1 Acre)
  • The average Base Rental Rate amount used is $30 per acre. (WV marginal pastureland rates range from $28 to $34 per acre with Berkeley/Morgan/Jefferson at $40 per acre)
  • Practice components (fence, water facility, stream crossing) are typical for contracts in WV.
  • Total CREP contract period estimated is for 10 Years.

FEDERAL (CCC) PAYMENT CALCULATIONS

Base Rental Rate $30
Additional Incentive (100%) $30
Maintenance Rate $10

TOTAL ANNUAL FEDERAL (CCC) RENTAL RATE $70/Acre

Contract Acres X Federal Contract Obligations X Contract Years

  • 1 Acre x $70 x 10 Years = $700

SIGNING INCENTIVE PAYMENT (SIP) $10/Acre

Contract Acres X SIP X Contract Years 1 Acre X $10 X 10 Years = $100

COMPONENT PRACTICES (50% of total eligible costs)
Fencing $1000/Contract X 50% = $500
Water Facility (2) $3000/Contract X 50% = $1500
Stream Crossing $2000/Contract X 50% = $1000
                                                    TOTAL $3000

PRACTICE INCENTIVE PAYMENT (PIP) (Additional 40% of total Component Practice costs)
Fencing $1000/Contract X 40% = $400
Water Facility (2) $3000/Contract X 40% = $1200
Stream Crossing $2000/Contract X 40 % = $800
                                                    TOTAL $2400
TOTAL FEDERAL OBLIGATIONS
CCC Contract Obligations $700
Signing Incentive Payment $100
Component Practices $3000
Practice Incentive Payment $2400

CCC CREP CONTRACT OBLIGATION
    (1 Acre for 10 Years with practice establishment) $6200




< Back to West Virginia Technical Resources