ENVIRONMENTALQUALITYINCENTIVESPROGRAMBackgroundSection2301ofthe2002farmbillre-authorizedandamendedtheEnvironmentalQualityIncentivesProgram(EQIP).The2002farmbillrequiresthatatleast60percentofthefundsforEQIPbetargetedtoconservationpracticesorsystemsforconfinedandgrazedlivestock.Infiscalyear(FY)2005,$950millionwasobligatedforEQIP.EQIPprovidestechnicalandfinancialassistancetoeligiblefarmersandrancherstoaddresssoil,water,air,andrelatednaturalresourceconcernsontheirfarm,ranch,andprivate,nonindustrialforestlands.EQIPparticipantsimplementstructural,vegetative,andlandmanagementpracticesoneligiblelands.Additionally,EQIPprovidesassistancetofarmersandranchersincomplyingwithFederalandStateenvironmentallaws.EQIPparticipationisvoluntary,butproducerdemandhasalwaysoutpacedavailablefunding.LandandParticipantEligibilityRequirementsLandsenrolledinEQIPareprimarilyprivatelyowned.Eligiblelandsmayincludeagriculturalland(cropland,rangeland,pasture,privatenonindustrialforestland,andotherlandonwhichcropsorlivestockareproduced)thatposesaseriousthreattosoil,water,air,orrelatedresourcesbyreasonofsoiltype,terrain,climaticconditions,soiltopography,flooding,salinecharacteristics,orotherfactorsornaturalhazards.Publiclyownedlandiseligiblewhenthelandisunderprivatecontrolforthecontractperiod,isincludedintheparticipant’soperatingunit,andtheparticipanthaswrittenauthorizationfromtheGovernmentlandownertoapplyconservationpractices.Installationofconservationpracticesandsystemsmustcontributetoanimprovementintheidentifiednaturalresourceconcern.EQIPFinancialAssistanceCost-SharePayments:UnderEQIP,USDApayseligibleprogramparticipantsanamountnottoexceed75percentofthecosttoimplementoneormorestructural,vegetative,orlandmanagementpractices.Limited-resourcefarmersandbeginningfarmersareeligibletoreceiveupto90percentcostshare.IncentivePayments:TheSecretarydeterminesanamountandrateforincentivepaymentspaidtoeligibleprogramparticipantstoimplementoneormorelandmanagementpractices.Forexample,incentivepayments