How Environmental Quality Incentives Program (EQIP) Works in Kentucky

Updated 05/12/2009

Kentucky 2009 EQIP Overview

For 2009, Kentucky will have a “General EQIP” for which all eligible EQIP applicants may apply. In addition to General EQIP, Kentucky has identified several “Special Initiatives” that will focus on more specific resource concerns. These special initiatives will each have a separate funding pool as well as separate evaluation tools.  Pre-ranking Tools and Ranking Worksheets for all pooling areas and special initiatives may be found by clicking on the hypertext in this sentence.

General EQIP:

For General EQIP, Kentucky will use 14 different pooling areas for both allocations and rankings. The areas will range from 6 counties to 11 counties and will cover all of Kentucky's 120 counties. These groupings were determined to have similar resource concerns.

One pooling area, Area 3, will be divided into two ranking areas for fiscal year 2009. Three counties, Ohio, Hancock and McLean, were determined to be different enough in resources and resource concerns to compete separately from the other four counties in pooling area 3. This request came from the local work group and their request will be honored. All of area 3 will use the same ranking tool.

All states utilize a national ranking tool to score applications for EQIP funding.  Even though it is a national tool, it has been localized by including state and local issues. The tool consists of four basic components: an efficiency component, a local issues component, a state issues component and a national priorities component.

The efficiency component determines the effectiveness of the conservation practices that are proposed to be implemented and is based on environmental benefits achieved, average costs to implement the practices, practice lifespan, and longevity of environmental benefits achieved.

For the national, state and local issue components, priorities have been identified at each of these three levels. Questions were developed for each level that award points to applications that address these priorities. Each of the three levels are also given a weight of importance

To include the Locally Led Conservation effort, each different pooling area held local work group meetings to identify and prioritize their natural resource concerns which EQIP can address. They then created a list of “local issue” questions for use in the ranking tool. All local issue questions were reviewed and approved by the state conservationist. Each pooling area has a ranking tool that has been localized for their use. The same group of practices will be available statewide. Because of the timing of the 2008 Farm Bill Rules being published, Local Work Groups did not update the local questions and priorities for 2009. It is expected that updates will be made for the 2010 EQIP program based on Local Work Group input.

The Kentucky State Technical Committee determined statewide resource concerns and to recommended issues for the state level component. The State Technical Committee also recommended weights for each of the levels.

National priorities were identified and provided by the NRCS national office. The national issues are consistent with the EQIP Rule.

After funding is set aside for the special initiatives, a state allocation formula is used to allocate funds to each of the 14 areas. It includes a variety of factors that address items such as number of livestock, number of farms, acres or percentage of prime farmland, water quality concerns, wildlife concerns, etc. These factors take into consideration national and state EQIP priorities and measures. Each of the 14 areas are guaranteed funding (which won't be equal), but there is no guarantee that every county will receive funding. Each pooling area will distribute their funds to their applications based on the ranking criteria for that area. Every county will have the opportunity to compete and receive funding, but there will be no county level allocation.

Kentucky NRCS will establish ranking periods to evaluate (rank) all applications taken (until the end of a given ranking period.) The first FY 2009 ranking period ends May 1, 2009. Additional ranking periods will be established if all of the funds are not utilized by the applicants evaluated during the first ranking period. Applications will be funded as ranked as far down the list as the funding will allow. A cut off date will be established by the NRCS state office as to when funds must be obligated. If a pooling area’s funds are not obligated by this date, funds may be reallocated to other pooling areas.

Special Initiatives:

The special initiatives and their purposes are as follows:

·         EQIP Grassland Bird Initiative:  Promotion of at-risk species habitat conservation is one of the five national priorities, identified by law, which will be considered when implementing EQIP. With reports indicating a significant decline in grassland birds primarily due to habitat loss, the decision was made to make special funding available to address this concern. The funding will target wildlife friendly production oriented practices on critical landscapes in 3 priority focus areas where at-risk species have exhibited downward population trends due to habitat loss and degradation. Emphasis is placed on creating and improving habitat for grassland nesting songbirds, restoring grass and shrub habitat to reverse the downward trend of the northern bobwhite quail, improving grazing operations by converting KY 31 tall fescue to native warm season grasses, improving water quality and riparian and aquatic habitats by excluding livestock from streams, and to improve habitat for amphibian and bat species by restoring ephemeral pools to the landscape.

·         EQIP Energy Initiative:  As this country’s population and energy needs increase, it is likely that U.S. power companies will be required to reduce emissions while finding ways to utilize renewable, “green” fuel sources. There are many potential sources for biofuel production including wood products, native grasses and exotic plant species. However, native grasses, such as Big bluestem, Switch grass, and Indian grass have multiple uses including hay production, wildlife habitat, pellet fuels for light industry and home furnace use, seed production, grazing, ethanol production, and power generation. Should environmental laws require more stringent control of air emissions and/or increased use of renewable energy sources, pasture and hay plantings dominated by native grass species can be harvested for bio-fuel production. This initiative will use EQIP funding to provide financial and technical assistance to interested land owners in establishing fields of native grasses that can be harvested as a renewable, clean fuel.

·         EQIP Air Quality Initiative:  Seven Kentucky counties have been identified as having serious air quality resource concerns. Those counties are Boone, Kenton, Campbell, Jefferson, Bullitt, Lawrence and Boyd.  An allocation has been provided for an Air Quality Initiative funded through EQIP to aid in addressing this resource concern. A group of practices have been selected to address the primary air quality natural resource concerns associated with “non-attainment” for the ambient air quality standards of Particulate Matter 2.5 (PM2.5), Particulate Matter 10 (PM10), 8-hour Ozone and that address the reduction of Volatile Organic Compounds (VOCs).

·         EQIP Forestland Initiative:  With over nine million acres of privately owned woodland in the state it is important that wise forest management is practiced to help preserve this significant natural resource. A properly managed forest not only provides timber resources, but also can greatly enhance wildlife habitat, improve water quality, create recreational opportunities, sequester more carbon, and increase overall aesthetics. Considering the increased emphasis on forest management in the 2008 Farm Bill and damage from the past ice storm the EQIP Forestland Initiative was established for the 2009 ranking period. This initiative will focus on practices that will improve forest health; promote forest management; landowner education; and create, enhance, and protect forestland bird habitat.

·         EQIP Organic Initiative:  In accordance with the 2008 Farm Bill, NRCS will provide EQIP assistance to eligible producers related to organic production and to the transition to organic production.  While organic producers have always been eligible for EQIP assistance, this special initiative will provide dedicated funding for this particular group of producers.  A special sign-up period will be held for the Organic Initiative. It is expected to run from May 11 through May 29, 2009.

ELIGIBILITY

Any producer engaged in livestock, forestry, or crop production on eligible land may apply for EQIP. Eligible land includes cropland, rangeland, pasture land, private non-industrial forestland, and other farm or ranch lands as determined by the Secretary of Agriculture.

SIGN-UP

Application signup is an ongoing process and can be done online or completed at your local USDA Service Center with NRCS or the Farm Service Agency. Ranking periods are identified and all applications that have been received prior to the ranking period cut-off will be ranked against each other. The first FY 2009 ranking period ends May 1, 2009. Additional ranking periods will be established if all of the funds are not utilized by the applicants evaluated during the first ranking period. Applications received after the cut-off date will be held for ranking during the next ranking period.  The Organic special initiative will have a special sign-up period from May 11 – May 29, 2009.

RANKING OF APPLICATIONS

Regulation and policy require that EQIP funds be granted on a competitive basis. EQIP is a competitive program. Since program implementation in 1997, demand for EQIP financial assistance in Kentucky has greatly exceeded the funds available.

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·         Kentucky EQIP Pre-Ranking Tool – Because the demand for EQIP financial assistance in Kentucky has greatly exceeded the funds available, a screening tool is used to place applications in a high, medium or low category.  All “high” priority applications will be evaluated using ranking criteria specific to the local pooling area the in which the land is located.  If funding is exhausted for the high category applications, then the medium category applications will be ranked and funded.  Should funding still be available, then the low priority applications will be ranked and funded until all funding is exhausted.  In addition to pre-ranking tools developed for each pooling area for “General EQIP”, pre-ranking tools have been developed for each special initiative.  Click on the link above to view the pre-ranking tools.

·         Ranking Criteria by Pooling Areas and Ranking Criteria for Special Initiatives

TECHNICAL ASSISTANCE

As always, technical assistance for EQIP will be available to you at no charge through the Natural Resources Conservation Service (NRCS). You also have the opportunity to select a certified Technical Service Provider (TSP) to perform your technical assistance. TSPs are private sector or public agencies (such as a State agency) who have one or more individuals certified by the NRCS State Conservationist to perform technical services. Technical assistance provided by TSPs is required to meet NRCS’s high technical standards. These individuals will be compensated for their services with EQIP funding.

If you are interested in using a provider other than NRCS, you can see if there is a TSP certified to perform the technical services you need for your EQIP contract by visiting http://techreg.usda.gov and click on "TSP Locator."

A list of certified individuals is also available from NRCS Field Offices.  Click here to view a TSP fact sheet.    (PDF; 82 KB)

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