The Land Broker Co-Op has just launched an amazing website and we wanted to share their press release “The Land Broker Cooperative (the Co-Op) is pleased to announce the first website for land, farms and ranches for sale using a map-based view as the primary search functionality” : Read The Full Press Release Here
A new window has opened for sign-up for the Conservation Reserve Program (CRP). USDA will resume allowing continuous CRP sign-ups from June 4 through August 17.
According to USDA, producers with contracts that will mature Sept. 30 and have a contract term of 14 years or less will also be able to enroll for a one-year extension during the same sign-up period. However, producers with contracts that would breach the 15-year limit with a one-year extension are not eligible.
According to Pro Farmer’s Jim Wiesemeyer, USDA has not allowed continuous sign-ups under CRP so far in fiscal year 2018 as it sought to keep CRP acres under the cap of 24 million acres.
Limited priority practices are available for continuous enrollment, including grassed waterways, filter strips, riparian buffers, wetland restoration and others, USDA says.
Current CRP enrollment is about 22.7 million acres. USDA has not published the number of acres in the CRP since September 2017 when there were 23.43 million acres enrolled in the program.
“There were 2.51 million acres scheduled to expire as of Sept. 30 while the FY 2017 continuous sign-up resulted in 1.185 million acres enrolled in the program with contracts to start Oct. 1, 2017,” Wiesemeyer says.
The CRP program has long been accused of inflating land prices. USDA plans to combat that with updated soil rental rates for annual rental payments and will not issue any incentive payments.
–Anna-Lisa Laca, Farm Journal, LandOwner Newsletter June 28, 2018
LandOwner Newsletter Vol 37 Issue 9 May 12, 2016
Texas Real Estate Attorney Hammers WOTUS Reg
A court stay is the only wall standing between landowner property rights and a federal takeover of most of the nation’s land, says Judon Fambrough, an attorney with the Teal Estate Center at Texas A & M University. The result of the waters of the U.S. (WOTUS) regulation enacted by the Environmental Protection Agency (EPA) and Army Corps of Engineers (Corps) means “the Clean Water Act’s jurisdiction now extends well beyond the navigable waters of the U.S. to practically all waters if implemented,” says Fambrough.
“If implemented, it would freeze all land use in place at the time of the implementation. That means if you want to make any sort of change in the way you use your land, you will need to file for a permit with the EPA and Corps, which is estimated to take up to three years and cost $250,000 to obtain,” he explains. “If you don’t obtain a permit, you are subject to a fine of $37,500 per day until land is returned to its original use.” READ article
The most current general enrollment for the Conservation Reserve Program began December 1, 2015. Enrollment will run thru February 26, 2016. According to the USDA, “as of September, 2015. 24.2 million acres were enrolled in CRP. CRP is also protecting 170,000 stream miles with riparian forest and grass buffers, enough to go around the world 7 times.” Check out the USDA’s Celebrating 30 Years of the Conservation Reserve Program.
The USDA has a New CRP Website. Seems to be a well organized website for those familiar with the Conservation Reserve Program, as well as those who are not as familiar. If you have questions about this program, chances are you will find the answers here. Click here to go to the new website.
Farm Bill Allows Early Termination for Certain CRP Contracts
USDA Texas Farm Service Agency (FSA) Executive Director, Judith A. Canales, reminds producers that as of Aug. 6, producers with acres under contract through the Conservation Reserve Program (CRP) can apply for early contract termination, as required by the 2014 Farm Bill. The deadline to request early CRP contract termination is Jan. 30, 2015.
The effective date for early termination is no earlier than October 1, 2014. The CRP contract must been in effect for at least five years and other conditions must be met. The 2014 Farm Bill identifies 10 exceptions whereby land will not be eligible for the early-out provisions. For a complete list of these exceptions, please view the program fact sheet CRP Opt Out Fact Sheet
“Once a CRP contract termination request is approved by the FSA County Committee, the decision cannot be reversed and the contract cannot be reinstated,” said Canales. “Likewise, producers must meet conservation compliance provisions for all land that will be returned to production.”
For more information on or to determine eligibility for early termination of existing CRP contracts, please contact your local FSA office. For local FSA Service Center contact information, please visit: http://offices.sc.egov.usda.gov/locator/app.
June 4, 2014 Press Release – USDA Farm Service Agency
“Farmers, ranchers and landowners committed to protecting and conserving environmentally sensitive land may now sign up for the Conservation Reserve Program (CRP). Additionally, retiring farmers enrolled in CRP could receive incentives to transfer a portion of their land to beginning, disadvantaged or veteran farmers through the Transition Incentives Program (TIP).”
See complete press release here.
“CRP consists of a ‘continuous’ and ‘general’ sign-up period. Continuous sign up for the voluntary program starts June 9.”
“The Transition Incentives Program provides two additional years of payments for retired farmers and ranchers who transition expiring CRP acres to socially disadvantaged, military veteran, or beginning producers who return the land to sustainable grazing or crop production. Sign up will also begin June 9.”
U. S. Tax Court says non-farmer Texas resident must pay self-employment tax on Conservation Reserve Program land inherited in South Dakota.
A non-farmer’s Conservation Reserve Program income can be hit with self-employment tax, said U.S. Tax Court in a ruling last year, which involved a Texas resident who inherited farm land in South Dakota.
“Since the late 1980s, the IRS and the courts have issued various rulings, advices, notices and opinions concerning the issue of whether CRP payments are subject to self-employment tax,” says Roger McEowen, Leonard Dolezal Professor of Agricultural Law at Iowa State University. “Until 2003, the IRS always took the position that a taxpayer had to be materially participating in a farming operation for CRP payments to be subject to self-employment tax.”
The courts agreed, but in 2003, the IRS took the position that the signing of a CRP contract resulted in the signing taxpayer being engaged in the trade or business of farming with the result that CRP payments were subject to self-employment tax. Last year, the U.S. Tax Court agreed with the IRS, he said.
See complete article in the Southeast Farm Press