Pryor and Berry said the voluntary Conservation Security Program provides financial and technical assistance to eligible farmers who meet the highest standards of conservation and environmental management on their operations. They argued to USDA and the Treasury Department that CSP payments are similar to other conservation programs, and should receive equitable tax-free treatment. In June 2005, USDA agreed the payments should be tax-exempt and asked the Treasury Department to concur. Pryor and Berry continued to bring this matter before the Treasury Department over the last 14 months, and today received official notice that the payments would no longer be taxed.

“Arkansas farmers who meet the high conservation standards of this program should reap its full benefits. It’s rare to squeeze a victory out of this Administration when it comes farm policy, but we did. I will continue to fight on behalf of all our farmers to make sure government meets its obligations to our farmers,” Pryor said.

“After more than a year of bad news, our farmers finally have reason to celebrate,” said Congressman Berry. “I commend Senator Pryor for his leadership on this issue and hope this is a sign of good things to come as our delegation works together to make the agriculture industry a priority in Washington.” 

Congress appropriated $259 million for the Conservation Security Program (CSP) for Fiscal Year 2006. In June, the USDA awarded 4,404 CSP contracts, which covers more than 3.7 million acres of private land in 60 watersheds nationwide. Depending on the level of participation, a farmer can receive up to $45,000 annually over a 10-year period.