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a/ Includes a total increase of $1,181,000 toward increased operating costs to sustain performance levels for continuing programs.

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The appropriation "Resource Conservation and Development" of SCS funds the activities authorized under Section 32(e) of Title III of te Bankhead-Jones Farm Tenant Act (Public Law 95-210) as amended and the Soil Conservation and Domestic Allotment Act of April 27, 1935, (Public Law 74-46) as amended. Program assistance provided authorized RC&D areas are technical assistance for planning and implementation, financial assistance, and loan services. Technical Assistance: Staff assistance is provided to local sponsors in the preparation of RC&D area plans for the conservation, development, and utilization of the natural resources in the RC&D area. Staff assistance is also provided to local sponsors in the implementation of their RC&D plans. This includes:

a.

b.

C.

Assistance with inventories and studies of a measure of areawide scale that directly aids sponsors in achieving their RC&D objectives.

Assistance in developing plans, designs, layout, and installation of measures eligible for RC&D financial assistance.

Assistance to sponsors to achieve activities and measures contained in the RC&D plans which are ineligible for RC&D financial assistance. Financial Assistance: Financial assistance is provided to eligible sponsors to install approved measures. Maior eligible purposes are: erosion and sediment control (critical area treatment), flood prevention, farm irrigation, land drainage, soil and water management for control of agriculture-related pollutants, public water-based recreation developments, and public water-based fish and wildlife developments.

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1/ All applications will be returned to applicants.

2/ Sponsors do not receive assistance from an RC&D coordinator.

Loan Services Assistance: Funds are provided the Farmers Home Administration (FmHA) to service loans made to sponsors from the Agricultural Credit Insurance Fund. Loan services must be provided from Resource Conservation and Development funds because the Agricultural Credit Insurance Fund of the FmHA is not available for such expenses. The workload consists of servicing 325 loans with will be made by the end of the 1982 fiscal year and loan counseling to help local sponsors arrange funding necessary to implement planned financial assistance measures.

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CED-80-132, dated 9/3/80, Improvements Are Needed in USDA's Soil and Water
Resources Conservation Act Report.

JUSTIFICATION OF INCREASES AND DECREASES

(1) A decrease in appropriation of $7,347,000 for Resource Conservation and Development consisting of: (On the basis of available funds there is a decrease of $7,785,455.)

(a) An increase of $1,181,000 for increased operating costs of which
$984,000 is for financial assistance and $197,000 is for other costs.
This increase is necessary to meet increased costs associated with the
recommended level of assistance to RC&D sponsors.

77-802 0-81--54

(b) A decrease of $8,528,000 in Resource Conservation and Development program activities ($35,479,000 available in 1981).

Need for Change: This program was implemented in FY 1962 to accelerate the installation of conservation measures, and to alleviate unemployment in rural areas through the accelerated conservation work. Reviews of the RC&D program, conducted in previous years, have not been able to demonstrate satisfactorily that statistically significant economic progress towards program objectives has been made. In the FY 1980 Agriculture Appropriation Bill report, the Congress directed the Government Accounting Office to conduct a full and complete review of the RC&D program in FY 1980 taking into account both the costs and benefits of the program. The report is scheduled for publication in March of 1981.

In

During FY 1981, emphasis will be placed on completing planned measures. addition, some assistance will be provided for planning an estimated 160 new measures, however, sponsors will be informed that the provision of this technical assistance does not infer that any future financial assistance will be provided. RC&D Coordinator positions that become vacant will not be filled when (areawide planning and coordination) assistance can be furnished by other means. In other cases, when the presence of a coordinator is essential, the position will be filled after Washington Office approval. is estimated that by the end of FY 1981 there will be 120 coordinators.

It

Nature of Change: No new RC&D areas will be authorized in FY 1982 in order to concentrate resources toward completion of existing high priority projects in progress. Efforts to complete the installation of work in process will result in providing more financial assistance than technical assistance in FY 1982.

The FY 1982 budget proposal completes the phase out of the program by the end of FY 1982. Emphasis will be placed on completing those measures on which work is underway and on which sponsors have expended significant local resources in preparing for installation.

STATUS OF PROGRAM

The Resource Conservation and Development (RC&D) Program began in February 1964 under authority of Section 102 of the Food and Agriculture Act of 1962 (Public Law 87-703) and other Departmental authorities. Program assistance is provided to RC&D sponsors as authorized by the Secretary of Agriculture. RC&D sponsors, State and local units of government, and nonprofit organizations initiate and direct the continuing planning process, develop and maintain an RC&D area plan, and carry out activities to implement the plan.

Current Activities: Department of Agriculture agencies provide technical, financial, and loan assistance to local sponsors. Program leadership is provided by the Soil Conservation Service. Sponsors also seek the assistance of local, State, and other Federal agencies that can assist them in areawide planning and in carrying out activities to implement plans.

There are three major objectives of the RC&D Program:

1.

2.

3.

To develop and improve the natural resource capability of State and local governments and nonprofit organizations serving rural areas by assisting in:

the development of a locally directed and managed area planning and decisionmaking process;

To establish or improve the coordination system used in rural communities

to:

effectively utilize available Federal, State, and local programs
and applicable new programs to achieve sponsors' objectives;

develop priorities for activities that will result in the
maximum conservation, economic, and social benefit to the area;

To obtain effective use and conservation of natural resources of
community concern to:

carry out erosion control, flood prevention, recreation,

and other such activities in the RC&D area plan in keeping with State and local plans.

obtain full utilization of natural resources through

orderly development and improvement;

conserve natural resources and provide for continuing wise and
sustained use.

In FY 1982, the RC&D Program is to be terminated. Program funds will be used to cover the cost of a "reduction of Force," reassignments of remaining personnel, disposition of equipment and facilities. The remaining funds will be used to provide technical and financial assistance to complete measures already started.

Types of Assistance Furnished by the Department

Assistance provided within an RC&D area are:

1.

Technical assistance was being provided to 190 authorized RC&D areas as
of September 30, 1980. Land, water, and related natural resources are
studied by the sponsors and the cooperating Federal, State, and local
agencies and organizations in each area. These studies identify problems,
needs, and the importance and availability of resources in the RC&D area.
Local goals and objectives are redefined as studies are completed and the

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