Federal Register, Volume 74, Number 10, January 15, 2009, Pages 2293-2756 Page: 2,296
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Federal Register/Vol. 74, No. 10/Thursday, January 15, 2009/Rules and Regulations
* Environmental benefits generated in Conclusions
the animal waste management benefit
category were adjusted downward by 42
percent to account for mandatory
regulatory requirements associated with
large concentrated animal feeding
operations (CAFOs). This reduction is
necessary to avoid any double counting
of benefits attributed to EPA's CAFO
regulations. The total CAFO-related
costs associated with conservation
practices were reduced by 23 percent
* Other than large CAFOs meeting
EPA regulatory requirements, the
adoption of conservation practices by
EQIP participants is assumed to be
solely attributed to their participation in
EQIP.The EQIP benefit-cost analysis
assumes that the basic program features
of EQIP created in 2002 (the "current
program") remains the same, but is
funded at higher funding allocations as
a result of the 2008 Act.
The summary table below shows the
estimated values of each benefit
category and the estimated costs
associated with EQIP for the "current"
(2007-base) and "new" (with increased
funding) scenario. Under the
assumption that the current program
continues at level funding, the expected
present value of benefits over the period
of FY 2007 to FY 2012 is estimated at
$7.1 billion, with $0.5 billion coming
from improved animal wastemanagement and $6.6 billion from
improved land treatment. Expected net
benefits are estimated at $39 million
above total costs, including producer
costs, other non-federal costs, and
federal (EQIP) costs.
With expanded funding, the estimated
present value of benefits over the period
of FY 2007 to FY 2012 was $10.4 billion
with $0.8 billion coming from improved
animal waste management and $9.6
billion from land treatment. Estimated
net benefits were $57 million above
total costs. This provides $18 million in
additional net benefits due to the
expansion of EQIP funds in the 2008
Farm Bill over the roughly $1.0 billion
annual baseline funding.TABLE 1-SUMMARY OF CUMULATIVE 5-YEAR EQIP BENEFITS AND COSTS OVER FY 2008-FY 2012, USING A SEVEN
PERCENT DISCOUNT RATE
[$ million of 2007 dollars]
To not 2007 EQIP 2008 Act 2007 EQIP 2008 Act
ToiCto ient with $1 billion benefits Increases with with $1 billion/ 2act
Benefit Category implement $1b ee & Ie h a~ n )Unit
EQIP year FY 2008- b & the 2008 Act year (acres or (acres or
FY 2012 costs animal units) animal units)
Animal waste $0 $554 $816 $262 2,724,000 4,061,000 Animal Units.
management*.
Sheet and rill 0 1,948 2,869 920 8,019,000 11,955,000 Acres.
water erosion.
Grazing land pro- 0 3,111 4,580 1,470 35,586,000 53,057,000 Acres.
ductivity.
Irrigation water 0 231 341 109 4,014,000 5,985,000 Acres.
use.
Air quality ........... 0 181 266 85 8,039,000 11,985,000 Acres.
Fertilizer use ...... 0 601 885 284 11,370,000 16,953,000 Acres.
Wildlife habitat ... 0 172 254 81 5,660,000 8,439,000 Acres.
Energy use ......... 0 210 309 99 7,446,000 11,102,000 Acres.
Carbon seques- 0 82 121 39 41,525,000 61,911,000 Acres.
tration.
Grand Total 0 7,091 10,441 3,350
Benefits.
Costs:
Total costs** ...... 7,053 10,384 3,332
Net Benefits:
Net benefits ........ 39 57 18
* Environmental benefits from improved animal waste management attributed to EQIP are 42 percent below the total CAFO-related benefits to
account for environmental benefits captured by EPA regulatory requirements on large CAFOs. Likewise, costs associated with large CAFOs rep-
resent about 23 percent of NRCS costs related to CAFOs of all sizes. These costs were deducted from the analysis as well.
**Total costs include all federal costs plus private and other non-federal costs which have historically matched federal EQIP FA funding at an
overall 50 percent cost-share rate discounted at seven percent. Costs associated with large CAFOs (roughly 23 percent) were deducted from the
analysis.Section 2904 of the Food, Conservation,
and Energy Act of 2008
The Commodity Credit Corporation
(CCC) is not required by 5 U.S.C. 553 or
by any other provision of law, to
publish a notice of proposed rulemaking
with respect to the subject matter of this
rule. Section 2904 of the 2008 Act
requires regulations to be published
within 90 days after the date of
enactment and authorizes the CCC to
promulgate an interim final rule
effective upon publication with anopportunity for notice and comment.
CCC has determined that an interim
final rule is necessary to expedite the
effective date of rulemaking in order to
meet the intent of section 2904.
Discussion of Program
The 2008 Act has reauthorized and
amended the Environmental Quality
Incentives Program, which had been
added to the Food Security Act of 1985
(1985 Act) (16 U.S.C. 3801 et seq.) by
the Federal Agriculture Improvement
and Reform Act of 1996 (1996 Act) (16U.S.C. 3839aa). The program is
implemented under the general
supervision and direction of the Chief of
NRCS, who is a Vice President of the
Commodity Credit Corporation (CCC).
Through EQIP, NRCS provides
assistance to farmers and ranchers to
conserve and enhance soil, water, air,
and related natural resources on their
land. Eligible lands include cropland,
grassland, rangeland, pasture, wetlands,
nonindustrial private forest land, and
other agricultural land on which
agricultural or forest-related products,2296
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United States. Office of the Federal Register. Federal Register, Volume 74, Number 10, January 15, 2009, Pages 2293-2756, periodical, January 15, 2009; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc132872/m1/13/: accessed April 23, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.