The Emergency Conservation Program (ECP) is a voluntary program that provides eligible landowners of cropland and pastureland with cost-share assistance for restoring land affected by a natural disaster. The U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA) administers this program.
Type of lands that qualify: Cropland, pastureland
Type of program: Natural disaster restoration
Monetary benefit: Direct payment
How it Works
The ECP helps farmers repair damage to farmlands caused by natural disasters and to help put in place methods for water conservation during severe drought. The ECP does this by giving farmers funding and assistance to repair the damaged farmland or install water conservation methods.
Natural disasters can devastate farmland and grazing land and threaten the livelihood of farmers who depend on the land on which they live. The ECP can help lessen this burden, assisting in overcoming exceptional damage from storms and severe drought.
The FSA County Committee inspects the damage to determine if the land is eligible for ECP. For land to qualify for ECP funds, the damage from the natural disaster must create new conservation problems that, if not dealt with, would
- further damage the land,
- significantly affect the land’s productive capacity,
- represent damage from a natural disaster unusual for the area, or
- be too costly to repair without Federal assistance to return the land to agricultural production
The USDA’s Natural Resources Conservation Service (NRCS) may provide technical assistance to fix the conservation problem
Conservation problems that existed before the disaster or severe drought are ineligible for ECP assistance.
How to Apply
Since this program is available for emergency assistance, sign-up periods are not continual, and only certain counties may be eligible for assistance through the ECP. Landowners with significant damage should contact their local USDA service center and talk with the FSA to determine if their county is eligible for participation in the ECP.
Emergency Conservation Program Example
A landowner has grazing land that was damaged by a tornado and flooding. As a result, 1,320 linear feet of electric fencing and 90 square feet of grade stabilization structures in the form of weir drop structures must be replaced. The ECP can be utilized to pay for 75% of the restoration costs, based on the average cost for individual practices approved by NRCS.
Costs
The average costs for the following practices are as follows:
- Electric fencing: $1.79/foot
- Grade stabilization structure: $116.45/square foot
Sample Calculation
Electric Fencing:
$1.79/foot × 1,320 linear feet = $2,357.16
Grade Stabilization Structure:
$116.45/square foot × 90 square feet = $10,480.44
Total Cost: $12,837.60
ECP (Pays 75% of costs) = $9,628.20
Landowner (Pays 25% of costs) = $3,209.40
How are ECP Payments Taxed?
ECP payments are taxed at the ordinary income rate; however, if the expenses equal or exceed the revenue from the program, no tax is paid.
