Land sales involving CRP
The Conservation Reserve Program (CRP) is a long-term program. Most contracts run for 10 to 15 years.
Once land is offered and accepted in the CRP, a permanent vegetative cover is established and the land is taken out of row crop or ranching. USDA enters into a binding long-term contract with each CRP participant. The contract cannot be terminated without penalties.
As such, CRP landowners and participants that consider selling land under a CRP contract should take precautions to let the buyer know about the CRP contract and get an agreement, whether in the deed or some other legally binding document, that the buyer will assume the CRP contract.
When a buyer does not assume the CRP contract, it remains in the seller’s name and the seller remains the participant as far as liquidating damages and refund of annual CRP rental payments The seller is ineligible for any additional payment after the year of the sale.
Sept. 30, 2024, is the end of the CRP year. Annual rental payments will be issued each October to the participants on the contract as of Oct. 1.
If you have purchased or sold CRP this year, make sure that FSA is notified before Sept. 30.
CRP rental payments are disbursed annually as direct deposits into participants’ bank accounts. If you have changed your account or banks or if you have changed your address, please notify FSA before Oct. 1, 2024. Statements notifying participants of the payments deposited in bank accounts are mailed to the address on record in FSA Office.
Sept. 30 is also the end of any expiring CRP contracts that were not re-enrolled. That means that timber harvest, grazing, haying and any possible clearing for or preparation of the land for row cropping, pasture or haying may began.
Landowners with any questions about CRP can contract the Tallahatchie FSA office at 662-647-8857, ext. 2.
