The Conservation Reserve Program in the Presence of a Working Land Alternative: Implications for Environmental Quality, Program Participation, and Income Transfer, August 2005

The United States has invested large sums of resources in multiple conservation programs for agriculture over the past century. In this paper we focus on the impacts of program interactions. Specifically, using an integrated economic and bio-physical modeling framework, we consider the impacts of the presence of working land programs on a land retirement for an important agricultural region—the Upper Mississippi River Basin (UMRB). Compared to a land retirement only program, we find that the presence of a working land program for conservation tillage results in significantly lower predicted signups for land retirement at a given rental rate. We also find that the presence of both a large working land and land retirement program can result in more environmental benefits and income transfers than a land retirement only program can achieve.

Impact of High Crop Prices on Environmental Quality: A Case of Iowa and the Conservation Reserve Program, 2007

Growing demand for corn due to the expansion of ethanol has increased concerns that environmentally sensitive lands retired from agricultural production into the Conservation Reserve Program (CRP) will be cropped again. Iowa produces more ethanol than any other state in the United States, and it also produces the most corn. Thus, an examination of the impacts of higher crop prices on CRP land in Iowa can give insight into what we might expect nationally in the years ahead if crop prices remain high. We construct CRP land supply curves for various corn prices and then estimate the environmental impacts of cropping CRP land through the Environmental Policy Integrated Climate (EPIC) model. EPIC provides edge-of-field estimates of soil erosion, nutrient loss, and carbon sequestration. We find that incremental impacts increase dramatically as higher corn prices bring into production more and more environmentally fragile land. Maintaining current levels of environmental quality will require substantially higher spending levels. Even allowing for the cost savings that would accrue as CRP land leaves the program, a change in targeting strategies will likely be required to ensure that the most sensitive land does not leave the program.

Iowa Conservation Reserve Enhancement Program, Helping Landowners Protect Iowa’s Natural Resources,January 2009

The Iowa Conservation Reserve Enhancement Program is a state, federal, local, and private partnership that provides incentives to landowners who voluntarily establish wetlands for water quality improvement in the tile-drained regions of Iowa. The goal of the program is to reduce nitrogen loads and movement of other agricultural chemicals from croplands to streams and rivers. In addition to improving water quality, these wetlands will provide wildlife habitat and increase recreational opportunities.

Issue review : school district cash reserve levy.

During the recent economic crisis, school district budgets have been impacted by state school aid funding shortfalls and state aid reductions due to across-the-board general fund reductions in fiscal year 2009 and fiscal year 2010. Additionally, in fiscal year 2011, the state school aid appropriation was capped and was 156.1 million dollars short of fully funding the state portion of the school aid formula. This issue review examines the impact that the reductions in state aid have had on school district cash reserve levies.

Planning for Wooded Acreages and Woodlands, August 2005

PM2002B: People own wooded acreages and woodlands for a variety of reasons that may include: timber production, firewood production, recreation, wildlife habitat, aesthetics, and alternative forest products. Most of Iowa’s forestland is privately held, and the majority of ownership is fragmented into an average of ten acres (Forest Reserve Survey, 2004). In fact, the average size of an individual forest or woodlot ownership has been steadily declining for several years due in part to population growth, urban sprawl, and changes in land ownership. Studies indicate that the probability of a sustainable woodlot decreases as the population increases. At the same time, most woodlot owners want to be good stewards and protect and enhance the forest that they own. To achieve this goal, careful forest planning and management is required especially when managing the land for multiple objectives.

Emerging Biofuels: Outlook of Effects on U.S. Grain, Oilseed, and Livestock Markets, 2007

Projections of U.S. ethanol production and its impacts on planted acreage, crop prices, livestock production and prices, trade, and retail food costs are presented under the assumption that current tax credits and trade policies are maintained. The projections were made using a multi-product, multi-country deterministic partial equilibrium model. The impacts of higher oil prices, a drought combined with an ethanol mandate, and removal of land from the Conservation Reserve Program (CRP) relative to baseline projections are also presented. The results indicate that expanded U.S. ethanol production will cause long-run crop prices to increase. In response to higher feed costs, livestock farmgate prices will increase enough to cover the feed cost increases. Retail meat, egg, and dairy prices will also increase. If oil prices are permanently $10-per-barrel higher than assumed in the baseline projections, U.S. ethanol will expand significantly. The magnitude of the expansion will depend on the future makeup of the U.S. automobile fleet. If sufficient demand for E-85 from flex-fuel vehicles is available, corn-based ethanol production is projected to increase to over 30 billion gallons per year with the higher oil prices. The direct effect of higher feed costs is that U.S. food prices would increase by a minimum of 1.1% over baseline levels. Results of a model of a 1988-type drought combined with a large mandate for continued ethanol production show sharply higher crop prices, a drop in livestock production, and higher food prices. Corn exports would drop significantly, and feed costs would rise. Wheat feed use would rise sharply. Taking additional land out of the CRP would lower crop prices in the short run. But because long-run corn prices are determined by ethanol prices and not by corn acreage, the long-run impacts on commodity prices and food prices of a smaller CRP are modest. Cellulosic ethanol from switchgrass and biodiesel from soybeans do not become economically viable in the Corn Belt under any of the scenarios. This is so because high energy costs that increase the prices of biodiesel and switchgrass ethanol also increase the price of cornbased ethanol. So long as producers can choose between soybeans for biodiesel, switchgrass for ethanol, and corn for ethanol, they will choose to grow corn. Cellulosic ethanol from corn stover does not enter into any scenario because of the high cost of collecting and transporting corn stover over the large distances required to supply a commercial-sized ethanol facility.

Iowa Budget Report, Building on our Progress: Protecting our Priorities, 2009

*********** Some files are large and will take time to load. *********** Seven Files: 1)Report Cover, 2)Table of Contents, 3)Statewide Financial Summaries, 4)Department Budgets, 5)Capitol Projects, 6)Associated Financial Documents, 7)Budget Report. To Members of the 82nd General Assembly, As we begin the second year of our Administration, we are pleased to submit the Fiscal Year 2009 budget for the State of Iowa pursuant to Iowa Code Section 8.21 and our constitutional authority. This budget recognizes the progress that we began last year with improvements in education, economic development, energy independence, and health care; provides funding for new policy initiatives in these areas; and is based on fiscally sound budget practices. Building on last year’s accomplishments, our Fiscal Year 2009 General Fund budget proposes an additional $75 million for increasing teachers’ salaries as part of our goal to move Iowa closer to the national average. We lay the foundation for student achievement by recommending $32.1 million for pre-school education, and we also propose $177.5 million in total for community colleges and $726.2 million in total for Regents universities. To make our State more energy independent, our General Fund budget appropriates the second-year funding of $25 million for the new Iowa Power Fund. The newly established Office of Energy Independence will soon start making awards from the Power Fund. Apart from the budget, we will be making several proposals to implement the new State energy plan. We have pledged to expand the number of Iowans who have health-care coverage. As a result, we are recommending additional funding for enrollment growth in the State Children Health Insurance Program (SCHIP). These additional funds will help the State provide coverage for another 25 percent of children who are eligible but not yet enrolled in hawk-i and the Iowa Medicaid Program. To protect the safety of Iowans, we are recommending issuance of revenue bonds for approximately $260 million in net proceeds to build a new state penitentiary in Ft. Madison, renovate and expand the Women’s Correctional Institution at Mitchellville, upgrade kitchen facilities at the Rockwell City and Mt. Pleasant Correctional Institutions, and expand Community-Based Correctional Facilities in Ottumwa, Sioux City, Waterloo, and Des Moines. Additionally, we are including funding for developing a prototype program for providing parolees and low-risk offenders with mental health and drug abuse treatment and educational services to help them make a crime-free re-entry into our communities. As part of this Capitals Budget, we also propose using $20 million for the State’s matching share for building new facilities at the Iowa Veterans Home. Iowa Budget Report iv Fiscal Year 2009 Importantly, our budget continues to fully fund our State’s Reserve Funds to help buffer Iowa from any future economic downturn. We recommend reimbursing $78.2 million to the Property Tax Credit Fund as part of our multi-year proposal to correct bad budgeting practices and eventually restore $160.0 million to this Fund. To provide more transparency, we are transferring operational expenditures in the Rebuild Iowa Infrastructure Fund to the General Fund and expenditures from the Endowment for Healthy Iowans and Healthy Iowans Tobacco Trust Funds to the General Fund. We believe that Iowa has charted a new course of becoming energy independent, providing quality pre-school education, recognizing the importance of our teachers, and providing greater health coverage for children. Our Fiscal Year 2009 budget and policy priorities reflect our continuing faith in Iowa’s ability to be the best state in the nation. We look forward to working with you in a bi-partisan and all-inclusive manner to build on our progress and protect our priorities. Sincerely, Chester J. Culver Governor Patty Judge Lt. Governor

Iowa CREP News, February 1, 2007, Issue 1

A newsletter produced by Iowa Department of Agriculture and Land Stewardship. The Conservation Reserve Enhancement Program for the state of Iowa.

Iowa CREP News, March 18, 2009, Issue 3

The Conservation Reserve Enhancement Program, or CREP, was designed specifically to reduce the nutrients from leaving Iowa and having an impact down stream. Newsletter produced by The Department of Agriculture and Land Stewardship.

Iowa CREP News, October 29, 2007, Issue. 2

A newsletter produced by Iowa Department of Agriculture and Land Stewardship. The Conservation Reserve Enhancement Program for the state of Iowa.

Planning for Wooded Acreages and Woodlands,August 2005

PEOPLE OWN WOODED ACREAGES and woodlands for a variety of reasons that may include: timber production, firewood production, recreation, wildlife habitat, aesthetics, and alternative forest products. Most of Iowa’s forestland is privately held, and the majority of ownership is fragmented into an average of ten acres (Forest Reserve Survey, 2004). In fact, the average size of an individual forest or woodlot ownership has been steadily declining for several years due in part to population growth, urban sprawl, and changes in land ownership. Studies indicate that the probability of a sustainable woodlot decreases as the population increases. At the same time, most woodlot owners want to be good stewards and protect and enhance the forest that they own. To achieve this goal, careful forest planning and management is required especially when managing the land for multiple objectives.

1119-008 Lake Icaria Final Report

Lake Icaria is a 660 acre man-made lake in rural Adams County. Lake Icaria is a popular recreational attraction providing ample fishing, boating, and swimming opportunities. Constructed in 1977 for water supply, Lake lcaria continues to provide reliable drinking water to 1,900 households in Adams and Montgomery counties. No stranger to the water quality world, Lake Icaria was the primary lake in the 3Lakes Water Quality Project(1996-2004), an eight year water quality effort which came to be known as one oflowa's first great water quality successes. At time of construction the Lake Icaria watershed was primarily grass. A shift towards maximizing crop production in the 1980's brought about the end of dairy farms and a concern for sediment loss and how that would affect water quality. This change in land use set the stage for the first water quality project at Lake Icaria. Since the conclusion of the 3Lakes Water Quality Project in 2004land use in the watershed has made yet another monumental shift towards crop production. Nearly 2,000 acres ofland that was once in the conservation reserve program is now being planted to a crop. This change in land use has once again brought about serious concerns for the quality of water being provided by Lake Icaria.

08005-002 Silver Lake Watershed Final Report

Silver Lake is located in an 18,053-acre watershed. The watershed is intensively farmed with almost all of the wetlands being previously drained or degraded over the last 50 years. Silver Lake is listed on the State of Iowa’s impaired water bodies list due to sediment and high nutrient level. Silver Lake is also known be in the bottom 25 percentile of Iowa’s lakes due Secchi disk readings and Chlorophyll a level. Farming in the watershed is the principle concern and cause for many of the problems occurring in Silver Lake currently with 78% of the watershed being intensively farmed. There are two major drainage ditches that have been used to drain the major wetlands and sloughs that, at one time, filtered the water and slowed it down before it reached Silver Lake. With these two major drainage ditches, water is able to reach the lake much faster and unfiltered than it once did historically. The loss of 255 restorable wetland basins to row crop production has caused serious problems in Silver Lake. These wetland basins once slowed and filtered water as it moved through the watershed. With their loss over the last 50 years that traditional drainage no longer occurs. We propose to create a Wetland Reserve Program incentive project to make WRP a more attractive option to landowners within the watershed. The incentive will be based on the amount of sediment delivery reduction to the lake, therefore paying a greater payment for a greater benefit to the lake. The expected result of this project is the restoration of over 250 acres of wetland basins with an associated 650 acres of upland buffers. The benefit for these wetlands and buffers would be reduced sediment, reduced nutrients, and slowed waters to the lake.

1118-007 Lake Hendricks Watershed Final Report

Lake Hendricks is a 54 acre man-made lake that is encompassed by a 1,209 acre watershed. Lake Hendricks is currently on the 303(d) Impaired Waters List for algae and pH impairments due to an abundance of algae growth caused by nutrients being delivered to the lake via 11 separate tile lines draining adjoining cropland areas. In 2009, a Watershed Management Plan was developed in partnership with IDALS and the IDNR 319 programs and $256,500 was awarded to address the nutrient and sediment loading of the lake. Over the past three years a total of $251,000 were spent to implement one grade stabilization structure, two sediment basins, two bioreactors, 700 feet of streambank stabilization, 30.7 acres oftimber stand improvement, and 39.4 acres of Conservation Reserve Program (CRP). A proposed wetland structure and three sediment basins are scheduled to be constructed in the fall of 2011. Current water monitoring data is showing an average of 54% Nitrate (N) loading reductions as a result of the installed BMPs. The District feels further reductions are possible by addressing nutrient management issues in the cropland areas, stabilizing additional streambanks, and improving the surrounding woodland areas. The goal is to reduce N loading by an additional 20% and sediment loading by 50 tlac/yr. The resulting collaborative effort may lead to the future de-listing of Lake Hendricks from the 303(d) Impaired Waters List.

07032-012 Lake MacBride Watershed Final Report

Lake Macbride is considered to be one of the top four lakes for fishing in the state of Iowa. It is widely used by the public and contributes significant economic benefits to the county. Lake Macbride is situated in the North Corridor which is one of the fastest growing areas in the state. The lake has a surface area of 940 acres and drains 16,205 acres. Lake Macbride is on the Iowa 303(d) list for excessive sediments and nutrients. In 2001, Lake Macbride State Park received over 2.5 million dollars from the Marine Fuel Tax and Fish and Wildlife Trust to install 2 silt basins and stabilize over 12 miles of shoreline in the lake. Also in 2001, the Johnson County SWCD received a WSPF allocation from DSC to address agriculture and urban runoff issues in the watershed. Section 319 funding was received in 2002 to continue watershed efforts to the present. A watershed assessment was completed in 2003 to guide watershed activities. In 2005, a TMDL was completed for the lake. Since 2001, over $645,000 dollars has been spent by landowners and funding partners to install conservation practices in the watershed. Watershed efforts have resulted in the reduction of over 4200 tons of soils from being delivered into Lake Macbride. Nutrient reductions have also occurred from the development of nutrient management plans on 2000 acres. The District is in the process of wrapping up watershed efforts on private land. A series of 13 structures is planned to be installed in the State Park over the next several years. One of the last remaining items that still needs addressed is 1,400 feet of eroding shoreline adjacent to Lake Macbride along Cottage Reserve Road. The road is under the jurisdiction of the Johnson County Board of Supervisors. Both the Board of Supervisors and the IDNR are willing to contribute substantial dollars to address the 250 tons of soil that are being directly delivered to Lake Macbride each year.