What Congress Does Next Could Cost Farmers and Taxpayers Billions

August 22, 2018 | 10:16 am
Photo: Paige Stanley
Paige L. Stanley

This year has been hard for all farmers—they have faced an ongoing trade war from the Trump administration and an uphill battle with climate change. But farmers who want to use sustainable practices are being particularly hard hit, as their interests are sidelined for the benefit of agribusinesses. And for the rest of us, 2018 has—almost like clockwork—shown the failure of half-hearted efforts to control farm-sourced water pollution that contaminates drinking water and destroys fisheries.  

The House Committee on Agriculture’s farm bill proposal to eliminate a program that offers tangible hope in difficult times is the biggest blow yet. Not only is the Conservation Stewardship Program (CSP) popular among farmers, it addresses agricultural challenges and delivers environmental benefits that impact us all. As the deadline to complete the 2018 farm bill approaches, Congress should think long and hard before giving CSP the axe. According to new UCS analysis, they’d sacrifice as much as $4.7 billion dollars in annual taxpayer value to do it.

Maybe you’re not familiar with the farm bill (no one completely understands it), or maybe you’re more concerned with other happenings, like the current attack on science at the EPA. I can’t say I blame you. But if you like to eat food and drink clean water—and you want strong returns on your tax dollars—then listen up.

The good, the bad, and the ugly of today’s farming system

Industrialized US agriculture is highly productive, but it comes at an enormous cost. UCS has documented how the two most widely-grown commodity crops, corn and soy, are failing to feed people and are grown in ways that degrade our soil, increase damage from droughts and floodspollute drinking water, and create vast dead zones along our coasts. Industrialized animal agriculture often leads to even worse outcomes for the environment.

Luckily, there are better methods of agricultural production, and scaling them up is within reach. Conservation and ecologically based farming (agroecology) can not only prevent pollution and soil loss, they can help regenerate ecosystemsincrease productivity, and improve farmer livelihoods. And while federal policies have played a big role in incentivizing many of today’s damaging practices, there are also federal programs that deliver solutions.

Introducing the Conservation Stewardship Program

Conservation practices can improve soil health and soil ecosystem function, which leads to reduced erosion and runoff, improved water quality, and taxpayer savings.

The five-year farm bill funds several such programs run by the US Department of Agriculture (USDA). Some, like the Conservation Reserve Program, pay for farmers to retire sensitive land from production. Others, like the Environmental Quality Incentives Program (EQIP) and the Conservation Stewardship Program (CSP), termed “working lands programs,” incentivize farmers to adopt more sustainable practices on farm lands that stay in production. Although these programs make up only 6 percent of total farm bill spending, they pack in co-benefits like soil, air and water quality, climate change mitigation, and wildlife habitat. Tiny, but mighty.

Of these, CSP is the crown jewel. It is the only program that promotes comprehensive, whole farm sustainability. As the largest conservation program covering over 72 million acres, CSP targets high priority sustainability concerns and ensures we’re getting the most bang for our buck. Not only does this program pay for practices that are scientifically proven to produce results, such as resource conserving crop rotations, management intensive rotational grazing, cover cropping, and establishment of wildlife habitats, it pays for farmers to implement such practices in combination. And that is where the money is, literally, as our analysis shows.

CSP offers taxpayers an eye-popping deal

We sought to quantify the return on investment of public dollars in CSP and compare the effects that Senate and House farm bill changes to CSP could have on farmers and taxpayers. You can dig into our detailed methodology but, in short, we did this by considering the cost of CSP to taxpayers (according to the USDA budget) and estimating the benefits that CSP is known to deliver, including things like reduced erosion, increased grazing land productivity, improved air quality, carbon sequestration, and more.

Benefits included costs savings to farmers (like reduced need for fertilizer) and consumers (like reduced expenses for contaminated water), as well as the projected benefits of other ecosystem services (like increased productivity and reduced greenhouse gases).

Here’s what we found:

  • For every dollar of taxpayer money invested into CSP, we get about $3.95 in returned value. This value is notably higher than ROIs estimated for other conservation programs, thanks to CSP’s holistic approach and synergistic benefits that maximize returns.
  • Using this ROI, we estimated that the House bill eliminating CSP would result in lost benefits of $4.7 billion dollars per year. (This is the estimated net loss of benefits, even after including the benefits derived from increased spending on EQIP.) Pause for shock effect (I know we did). These are costs that would impact us ALL- from increased input costs for farmers, increased environmental degradation, and risking food security with a changing climate.
  • Conversely, we estimate that the Senate bill would lead to a net increase of benefits likely valued at around $1.2 billion dollars per year. Though the Senate bill does include some CSP funding cuts, it also improves the program in ways that emphasize high-value practices, so it’s more efficient.

The chart below summarizes the economic impacts of each of our farm bill scenarios.

Change in benefits calculated across four possible farm bill outcomes: 1) House bill is adopted and CSP is eliminated, 2) Senate bill is adopted, but without program improvements, and 3) Senate bill is adopted but with improvements resulting in a) a small increase (10 percent) to the expected ROI in both the Minimal and Likely ROI scenarios and b) a larger (33 percent) increase in both the Minimal and Likely ROI scenarios (see appendix for more details)

Farmers want—and need—incentives to pursue conservation goals

This program is in high demand. An average of between 50 and 75 percent of farmers and ranchers who apply each year are turned away. Recently, more than 165 farmers and ranchers wrote a letter to the House of Representatives Ranking Member Collin Peterson urging him to not only maintain the program, but to keep the promise of enrolling 10 million new acres per year. The results of a survey of more than 2,800 farmers earlier this year provided even more evidence that farmers are interested in this type of support from the farm bill.

The future fate of the CSP rests in the hands of those negotiating the 2018 farm bill. With the current farm bill set to expire on September 30, 2018, the House and Senate agriculture committees are scrambling to reauthorize a bill in time. Considering the intense backlash from farmers on Trump’s current tariff war and hot debates on proposed cuts to SNAP, this egregious crime of side-stepping the environment by cutting CSP is happening largely under the radar.

It’s illogical to eliminate, or even cut, a program that so efficiently provides broad-ranging environmental benefits to so many people across the country. Farmers are begging to keep it. Taxpayers benefit from it. The environment depends on it. So, while the House is busy trying to eliminate it – which would effectively cost us billions of dollars – all evidence suggests that strengthening it should be the real priority.

House and Senate negotiators are now deciding on the final outlines of the 2018 farm bill, including what happens to CSP. Tell them to prioritize this and other proven, science-based policies and programs that are good for all of us.

Paige L. Stanley has a Master of Animal Science degree from Michigan State University and is currently a Doctoral Researcher at the University of California Berkeley in the Department of Environmental Science, Policy, and Management. She is interested in transitions toward sustainable and humane livestock production systems with a focus in beef cattle. Her research is currently focused on farmer and rancher barriers to entry to adopting sustainable management practices.

The UCS Science Network is an inclusive community of more than 25,000 scientists, engineers, economists, and other experts, focused on changing the world for the better. The views expressed in Science Network posts are those of the authors alone.