01/23/06 Energy costs and some EQIP contracts

Farm and Ranch January 23, 2006 The USDA is making available 40-million dollars for one-time payment adjustments that will allow eligible Environmental Quality Incentives Program participants to complete conservation practices delayed because of the increases in energy prices. Bruce Knight, chief of USDA's Natural Resources Conservation Service, says the one-time adjustment payment is available for contracts signed in 2004 or earlier. Knight: "If they are having a practice that's energy intensive, that is high cost, we will take a look at that contract and see if we can provide a bonus contract and see if we can provide a bonus payment in order to help them make sure they complete that conservation activity and that conservation contract." The payment will only be made for practices that are completed between March 1st and June 30th and will focus on specific practices that have escalated in price by 20 percent or more because of rising energy costs. Knight says it's difficult to identify which things will qualify but a news release mentions the cost of concrete, steel, and plastic pipe. Knight: "What I encourage producers to do who have a contract that they think they can get wrapped up before June 30th that are interested in this, want to encourage them to go into the local NRCS, sit down with the District Conservationist and talk about their plans, needs and desires and see if they might be eligible for this special supplement to the EQIP program." I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.