Agricultural Conservation Easement Program
Program Funding
Annual program obligations reported to SAM.gov.
Funded Projects
Examples of what this program has supported.
Program Objective
To establish an agricultural conservation easement program for the conservation of eligible land and natural resources through easements or other interests in the land. The Agricultural Conservation Easement Program (ACEP) is comprised of two components – Agricultural Land Easements (ALE) and Wetland Reserve Easements (WRE). The ACEP-ALE component provides funding to eligible entities to purchase conservation easements to protect the agricultural use and future viability, and related conservation values of eligible land by limiting nonagricultural uses of that land; and to protect grazing uses and related conservation values by restoring or conserving eligible land. The ACEP-WRE component provides funding for the purchase of conservation easements held by NRCS, and to restore, protect, and enhance wetlands on eligible land.
Eligibility
Eligible Applicants
- State
- Local
- Tribal Government (other)
- Land/Property Owner
- U.S. State Government
For ACEP-ALE an eligible entity that is an Indian Tribe, State government, local government, or a nongovernmental organization which has a farmland or grassland protection program that purchases agricultural land easements for the purpose of protecting agriculture use and related conservation values, including grazing uses and related conservation values, by limiting conversion to nonagricultural uses of the land, and that has pending offers may apply for funds. This program is available in all 50 States, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Mariana Islands. Individual landowners must apply through the local agency or organization that handles the farmland or grassland protection program.
For ACEP-WRE, private landowners, including individual landowners, partnerships, associations, corporations, estates, trusts, and other business or legal entities, and Indian tribes are eligible to apply. This program is available in all 50 States, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Mariana Islands.
Beneficiaries
- Land/Property Owner
- State
- Local
- Tribal Government (other)
- U.S. State Government
- Municipality/Township Government
- Tribal
- Nonprofit Organization
- Farmer / Rancher / Agriculture Producer
All landowners applying for ACEP must be in compliance with the Wetland Compliance (WC) and Highly Erodible Land (HEL) provisions of the Farm Bill and, within the exception of fiscal year 2014, meet the Adjusted Gross Income (AGI) limitations in the Farm Bill, and file a Farm Operating Plan. For ACEP-ALE, applications are submitted by an eligible entity who will be the participant in the program. For ACEP-WRE, only private landowners, partnerships, associations, corporations, estates, trusts, other business or legal entities and, Indian tribes may submit applications for easements.
How to Apply
Award Procedure
NRCS will rank parcels individually and award funding to the highest-ranked parcels based on ranking criteria established by NRCS in consultation with the State Technical Committee. The ranking factors are developed based on national and state criteria and priorities. NRCS conducts preliminary due diligence activities on the projects tentatively selected for funding and applicants are provided an offer of enrollment. Projects are enrolled in ACEP through agreements signed by NRCS and the eligible entity under ACEP-ALE or the landowner under ACEP-WRE.
Within a Federal fiscal year (October 1 - September 30), based on funding availability, States establish a single or multiple application batching periods for consideration of current year funding. Eligible entity or landowner applications may remain on sign-up list for subsequent funding consideration.
Program details & compliance
Description
The purposes of Agricultural Conservation Easement Program (ACEP) are to restore, protect, and enhance wetlands on eligible land; protect the agricultural viability and related conservation values of eligible land by limiting nonagricultural uses of that land that negatively affect the agricultural uses and conservation values; and protect grazing uses and related conservation values by restoring or conserving eligible land. Under ACEP Agricultural Land Easement (ALE), NRCS provides cost-share assistance to eligible entities to purchase agricultural land easements from eligible landowners to protect the agricultural use, including grazing uses, and related conservation values on eligible lands. Under ACEP Wetland Reserve Easements (WRE), NRCS protects wetlands by purchasing directly from eligible landowners a reserved interest in eligible land or entering into 30-year contracts on acreage owned by Indian Tribes, in each case providing for the restoration, enhancement, and protection of wetlands and associated habitats. ACEP repealed the Farm and Ranch lands Protection Program (FRPP), Grasslands Reserve Program (GRP), and Wetlands Reserve Program (WRP) but maintains the purposes of these predecessor easement programs. Easements and 30-year contracts previously enrolled under FRPP, GRP, and WRP, as well as easements previously enrolled in the previously repealed Farmland Protection Program (FPP) and the Emergency Wetlands Reserve Program (EWRP), are considered enrolled in ACEP.
Mission Categories
Primary: Agricultural Resource Conservation and Development
Other categories:
Agriculture Stabilization and Conservation
Use of Funds
Allowed Uses
The ACEP-ALE component provides funds to protect the agricultural use, including grazing, and related conservation values of eligible land through cost-share assistance to eligible entities for purchasing agricultural land easements. The Federal share for ACEP-ALE acquisition is limited to a maximum of 50 percent of the appraised fair market value of the agricultural land easement. The Chief can determine lands as Grasslands of Special Environmental Significance which authorizes a federal share of up to 75 percent of the fair market value of the agricultural land easement. ACEP-ALE are perpetual easements or maximum duration allowed by State law. A right of enforcement is incorporated in the conservation easement deed for the protection of the Federal investment. A failure of title would require the eligible entity to reimburse the United States for the Federal share of the easement value.
Under ACEP-WRE, eligible landowners may offer farmed wetlands, prior converted wetlands, wetlands farmed under natural condition, former or degraded wetlands on lands that have been used or are currently being used for the production of food and fiber, including cropland, rangeland and forest production land, lands substantially altered by flooding, certain riparian areas, along with certain adjacent areas. The goal of ACEP-WRE is to achieve the greatest wetlands functions and values, along with optimum wildlife habitat on every acre enrolled in the program. Enrollment options include permanent easements, 30-year easements, or easements for the maximum duration allowed under State law, and, for acreage owned by Indian Tribes, 30-year contracts. To be eligible for participation, land must be capable of being successfully and cost-effectively restored to wetlands and associated habitats. For easement projects, landowners shall ensure the easement is superior to the rights of all others and shall agree to implement a wetland restoration plan designed to restore and maintain the easement area. Landowners must agree to a permanent retirement of crop acreage bases, allotments, and quotas to the extent that the sum of the crop acreage bases and allotments will not exceed the remaining cropland on the farm. Participating landowners receive financial assistance for the purchase of the easement and NRCS shall share the cost of carrying out the establishment conservation measures and practices, and the protection of wetland functions and values including necessary maintenance activities to the extent that the Secretary determines that cost-sharing is appropriate and in the public interest. NRCS provides financial and technical assistance to the landowner or a third party as follows: • Permanent easements: Easement duration is in perpetuity; landowners receive up to 100 percent of the cost of the easement. NRCS provides up to 100 percent of the cost for establishment and maintenance of conservation measures and practices. • 30-year easements or maximum duration allowed by State law: Easement duration is 30 years or maximum duration allowed by State law; landowners receive the equivalent of 75 percent of the value for a permanent easement and NRCS provides up to 75 percent of the eligible restoration costs. • 30-year contracts: Acreage owned by Indian Tribes can be enrolled using a 30-year contract which shall be equivalent in value to a 30-year easement. NRCS provides up to 75 percent of the eligible restoration costs. • States with an approved Exhibit E may enroll easements with reserved grazing rights. The applicable compensation provided to the landowner for these easements will be reduced by 25%. For both permanent and 30-year easements, ACEP-WRE pays for all the related costs associated with acquiring and recording the easement including recording fees, charges for title abstracts, surveys, appraisal fees, records searches, and title insurance associated with acquiring an easement. These related costs are generally not paid to participants but are provided directly to the vendor performing the service. Therefore, payments appearing on USDAspending.gov will be reflective of payments to participants and payments to vendors for services associated with restoration and management activities and administrative costs associated with acquiring and recording an easement.
Restrictions
Funding may only be used to purchase or provide cost share on conservation easement rights; restore, repair, maintain, manage, steward and enforce the easement. Funds cannot be used for fee ownership purchases.
Required Documentation
ACEP is available to all 50 States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands of the United States, American Samoa, and the Commonwealth of the Northern Mariana Islands. NRCS accepts applications on a continuous basis. To participate in ACEP-ALE, entities must submit applications (Form NRCS-CPA-41, “Entity Application for an Agricultural Land Easement (ALE) Agreement” and Form NRCS-CPA-41A, “Parcel Sheet for Entity Application for an Agricultural Land Easement (ALE) Agreement”) to NRCS and NRCS must determine the eligibility of the entity, the eligibility of each parcel of land offered for enrollment, and the payment eligibility of the landowners of each parcel of land. Landowners interested in participating in ACEP-WRE must apply by submitting a completed application (Form NRCS-CPA-1200, “Conservation Program Application” or successor form) and required application package materials.
Matching Requirements
ACEP-ALE – NRCS may provide up to 50 percent of the fair market value of the agricultural land easement. An eligible entity will share in the cost of purchasing an agricultural land easement in an amount that is at least equivalent to the Federal share. An eligible entity may include as part of its share a charitable donation or qualified conservation contribution (as defined by section 170(h) of the Internal Revenue Code of 1986) from the landowner. NRCS may authorize a waiver to increase the federal share to 75 percent for grasslands of special environmental significance with respective adjustments to the eligible entity contribution. For grasslands of special environmental significance enrollments, the eligible entity must provide a non-Federal share that is at least equivalent to the Federal share or comprises the remainder of the fair market value of the agricultural land easement, whichever is less. Each eligible entity is required to fund its own administrative costs in acquiring easements, such as appraisals, surveys, title searches, and costs incurred in managing and enforcing the easements.
ACEP-WRE - Matching Requirements: While NRCS pays up to 100 percent of all related acquisition costs for 30-year easements, less-than perpetual easements limited by State law, and 30-year contracts, up to 75 percent of the cost of implementing the Wetland Restoration Plan will be paid by NRCS, with the landowner providing the balance (25 percent).
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart E — Cost Principles
- Subpart F — Audit Requirements