Department Impact Analysis
Under the State framework for managing farm runoff, the Department is responsible for implementation of performance standards promulgated by DNR. The 2005 and the 2015-590 NM Standard state that the alternative to the WI phosphorus index strategy is the soil test phosphorus strategy. This section of the 590 NM Standard remains unchanged. In the end, the key focus of ch. ATCP 50 rule revisions involves implementation of the 2015-590 NM Standard. Farmers
Implications for Recipients of Farmland Preservation Program (FPP) Tax Credits
The impacts from this rule on farmers participating in the FPP arise from the changes related to FPP implementation. In the case of the 13,500 farmers who collected $18 million in farmland preservation tax credits (based on 2015 payments for tax year 2014 claims), they may be required to comply with new and modified standards without receiving cost sharing. Identifying impacts with precision is complicated by a number of factors, including the changes in program participants over time, the compliance status of new participants, and the range of options to achieve compliance.
The Department’s proposed rule revision clarifies and limits impacts on this group by providing time for program participants to comply with the new performance standards, using performance schedules. In addition, the proposed rule clarifies that certificates of compliance issued to farmers complying with standards can be modified if some land is sold. Certificates of compliance are rendered void if all the land is under new ownership or a county land conservation committee issues a notice of noncompliance if a landowner no longer complies. Conversely, a county land conservation committee can withdraw a notice of noncompliance if the landowner is again found in compliance with standards. Also, farmers may receive cost sharing to install conservation practices necessary to maintain their eligibility for tax credits. Last, but not least, farmers who feel the compliance burdens are too great may decide to stop collecting a tax credit rather than implement standards.
Recordkeeping and New Skills Required
In considering impacts, the Department must evaluate additional reporting or record-keeping requirements imposed on farmers with respect to nutrient management planning. The Department believes these impacts will not be significant. Among the chief reasons for this conclusion, the Department assumes that these obligations will not arise in most cases unless farmers are provided cost-sharing. For those farmers who must comply with nutrient management requirements related to nutrient application restrictions for winter spreading or other seasons, the Department provides funding to maintain NM planning software, SnapPlus, developed with the University of Wisconsin’s Soil Science Department. SnapPlus software includes planning tools that communicates with map data. SnapPlus brings field features that may restrict nutrient applications and other provisions in the 2015-590 NM Standard into the farmer’s database to show the planner where application timing or rates may need to be adjusted in order to comply with the 2015-590 NM Standard. This software saves the planner’s time and the farmer’s money in planning and updating costs. For those farmers who must comply with nutrient management requirements related to the phosphorus index (PI), the Department clarified that a nutrient management plan developed in accordance with the nutrient management provisions in 50.04(3) and provides that in accordance with both the 2005-590 NM Standard and 2015-590 NM Standard the alternative to the PI is complying with the soil test P management strategy.
Farmers claiming FPP tax credits must keep records to document compliance with the DNR performance standards adopted in 2002. For FPP participants, additional recordkeeping created by this rule should be minimal. For example, since farmers must keep records related to nutrient management plans, farmers should be able to readily incorporate requirements relating to the 2015-590 NM Standard into their systems.
The increased requirements for nutrient management planning are slight in comparison with the responsibilities imposed on farmers in 2002 when the nutrient management standards were first adopted for cropland, or in comparison to 2005 when the standard was modified to include the phosphorus component. By its nature, the business of farming requires that farmers be skilled at managing changes triggered by the need to incorporate new technologies, respond to growing conditions, or modify production methods. In the case of nutrient management, farmers may need to build their skills with computers to take advantage of NM planning tools. Whether the challenge involves recordkeeping or new skills, the demands of this rule should be viewed in the larger context of the many programs in which farmers participate. Farmers need to make changes to meet other program requirements including state and local permitting and federal cost-share programs. Many programs, from county manure storage permits to FPP, require farmers to have nutrient management plans for their cropland. For farmers in these programs, it is a small step, and in some cases easier to implement the 2015-590 NM Standard provisions into these required nutrient management plans.
The Department believes that recordkeeping and other increased responsibilities are offset by a number of factors including the rule provisions that minimize burdens, and the following potential benefits from implementation of the 2011 DNR standards through the 2015-590 NM Standard:
• Promotion of more efficient use of nutrients and cost-savings on fertilizer through nutrient management planning.
• The implementation of conservation practices that provide protection against environmental and other landowner liabilities created by runoff events or groundwater contamination.
• The protection of water quality, particularly for: drinking water wells, Silurian dolomite features, DNR well compensation areas, additional winter spreading prohibition areas from drinking water wells, and soils vulnerable to N leaching.
Non-Farm Businesses
This rule has the following impacts on non-farm businesses, a considerable number of which qualify as “small businesses.”
Nutrient Management Planners and Crop Consultants
This rule will marginally increase the demand for professional nutrient management planners to develop nutrient management plans. Nutrient management planners who prepare plans for others must be qualified to do so. They must understand and follow record keeping requirements related to soil types, soil tests, crop nutrient requirements including University of Wisconsin recommendations, nutrient applications, nutrient contents of manure, nutrient application scheduling, and other matters related to nutrient management. Planners holding certain professional credentials are presumed to be qualified. Professionals with the knowledge and skill to use SnapPlus, a computer program critical to calculating the phosphorus index, are in a special position to capture new business. The rule also impacts planners byrequiring a qualified NM planner to complete a NM checklist form, provided by the Department, and provide reasonable documentation to substantiate each checklist response if requested by the Department or its agent.
Farm Supply and Farm Service Organizations
This rule will marginally increase the demand for entities that provide services to farmers. Farm supply and farm service organizations may provide nutrient management planning services, crop consulting, fertilizer sales, conservation compliance and other services. They may also sponsor the Department-approved training courses for farmers who wish to develop their own nutrient management plans.
This rule will not necessarily change demand for manure hauling services.
This rule is not likely to have a measurable impact on the sales of agricultural fertilizers, since it will not likely create an increase in sales to those farmers who must manage nutrients more carefully. Persons selling agricultural bulk fertilizer to farmers must record the name and address of the nutrient management planner (if any) who prepared the farmer’s nutrient management plan. This rule does not prohibit the sale of fertilizer to a farmer who lacks a nutrient management plan.
Soil Testing Laboratories
This rule will moderately increase demand for soil testing. Nutrient management plans must be based on soil tests conducted by certified laboratories. The Department certifies soil testing laboratories and may audit laboratories to ensure accurate testing. This rule adds a conflict of interest provision for the purposes of compliance with 50.04 (3). A Department-certified, privately owned laboratory shall not perform soil test analysis on cropland managed or owned by a person managing or having a substantial financial interest in the laboratory.
Construction Contractors
This rule does not substantially change demand for construction practices other than continuing the requirement to maintain grassed waterways in areas of reoccurring gullies. Nor does the rule alter construction standards or recordkeeping requirements.
Conservation Engineering Practitioners
This rule does not substantially change demand for agricultural (conservation) engineers and engineering practitioners. Under this rule, as under prior rules, conservation engineering practitioners must be certified by the Department. This rule revision simplifies the cancelling of a certification in certain situations without a Department order if the practitioner submits a written acknowledgement voluntarily agreeing to the cancellation. The rule clarifies the standards for cost-sharing, specifically that a manure storage system’s capacity is based on the farm’s inability to comply with the NM plan. When the facility is emptied, the manure must be applied to non-frozen soil in compliance with a NM plan under s. ATCP 50.04(3). Recordkeeping and New Skills Required for Non-Farm Businesses
This rule does not directly trigger changes in reporting, bookkeeping, or other procedures for non-farm businesses.
Business professionals will need to enhance their skills to help farmers implement the 2011 DNR standards; however, these professionals will likely take these actions for reasons other than this rule. Engineers and nutrient management planners must keep pace with the latest technical standards to meet the needs of customers. Certain professionals such as engineers and certified crop advisers are required to update their skills to retain their registration or certification.
Reporting, Bookkeeping, and other Procedures
To the extent that this rule requires reporting, bookkeeping, or other procedures, the Department’s analysis is included in the prior sections covering impacts on farmers and non-farm businesses.
Professional Skills Required
To the extent that this rule requires changes in professional skills, the Department’s analysis is included in the prior sections covering impacts on farmers and non-farm businesses.
Accommodation for Small Business
The Department has taken steps to identify compliance and reporting effects of this rule change. This final rule draft considered: (1) the existing performance standards and prohibitions in ch. NR 151, (2) the requirements of NRCS technical standard 590 needed to meet the nutrient management performance standard, (3) assumptions contained in the Wisconsin phosphorus index, and (4) feedback from members of advisory committees that included small business owners and organizations. The Department worked extensively with farm representatives and others to minimize adverse effects of this proposed rule on small business. The Department took the following actions: (1) worked with DNR to determine the scope of the Department rule revision, (2) conducted listening sessions that included farm and conservation groups, (3) held numerous public hearings throughout the state and held the record open afterward to receive written comments, (4) distributed simplified information materials to the public, and (5) reviewed the rule to identify opportunities to minimize impacts and accommodate small businesses. While DNR’s 2011 rule revision established the core requirements, the Department’s proposed rule provides accommodations to small businesses. These accommodations minimize the impact on farms and other businesses, both small and large. In general, this rule:
• Clarifies the changes from the 2005-590 NM Standard to the 2015-590 NM Standard and increases the associated cost-sharing rates from $7 to $10 per acre per year due to additional costs associated with soil tests and new spreading restrictions.
• Clarifies that the alternative related to s. NR 151.04, the phosphorus index (PI), is a nutrient management plan developed in accordance with the nutrient management provisions in ATCP 50.04(3) and provides that in accordance with both the 2005-590 NM Standard and 2015-590 NM Standard the alternative to the PI is complying with the soil test P management strategy. • Clarifies the Farmland Preservation section requirements seeking voluntary compliance with the rule changes to the maximum extent feasible, consistent with the Department’s past approach. Farmers may be required to comply with new and modified standards without receiving cost-sharing.
• Enables the Department to simplifying the process for cancelling a conservation engineer’s certification if agreed to in writing. The rule also provides for a person with the appropriate level of NRCS job approval authority to certify in writing that the practice complies with this rule.
• Requires a qualified NM planner to complete a NM checklist form, provided by the Department, and provide reasonable documentation to substantiate each checklist response if requested by the Department or its agent.
• Clarifies a NM plan, and subsequent annual submissions for local regulation means NM plans developed according to s. ATCP 50.04(3). Farmers may be required to comply with new and modified standards without receiving cost-sharing.
