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August 26, 2007 <br />Page 4 <br />If state funds used, Republican River and Rio Grande will almost certainly want <br />proportionate share. <br />III. Environmental Quality Incentive Program (EQIP) <br /> A. EQIP Facts : <br />Administered by Natural Resources Conservation Service (NRCS) through Ground <br />and Surface Water Conservation Program. <br />Promotes agricultural production and envir onmental quality as compatible goals. <br />Farm land is removed from irriga tion; dry-land cropping is allowed. <br />Greater flexibility than CREP: allows for thr ee year, five year, or perpetual contracts. <br />Three and five year contracts allow for resumption of irriga tion upon completion of <br />contract term. <br />Land is only required to be removed from irrigation; dry land cropping still allowed. <br />B. Republican River EQIP : <br />Acres must have been irrigated 2 out of the last 5 years. <br />Republican River WCD portion of funding co mes from per acre assessment described <br />in Republican River CREP above. <br />Payments vary depending upon proximity to Republican and Arikaree Rivers. <br />Permanent dry up - $740/acre to $1,310/acre <br />o <br />Total paid over 5 years <br />o <br />C. EQIP Considerations in South Platte Basin : <br />Program currently unavailable in Morgan and Weld counties. <br />Contract payments considerab ly less that CRP or CREP <br />EQIP application process is seen as arduous and complicated. <br />IV. Legislative Modifications Bein g Considered In 2007 Farm Bill <br />Acres enrolled in a CREP (as opposed to CRP) do not count toward county cap. <br />Remove requirement for replanting alfalfa. <br />Allow water conservation districts like Centra l to be applicant for EQIP grant, then <br />distribute money to individual producers, with less red tape. <br />Address applicability to curtailed wells? This may not be acceptable to USDA/FSA; <br />removes risk-based incentive to participate in program. <br />3755041_3.DOC <br />