USDA REVISES PAYMENT RATES FOR TECHNICAL SERVICE PROVIDERS

WASHINGTON, Oct. 13, 2004—The U.S. Department of Agriculture’s Natural Resources Conservation Service (NRCS) has released its revised “not to exceed” (NTE) payment rates for certified technical service providers. Generally, payment rates have increased and there is greater flexibility in their use.

The 2002 Farm Bill expanded the availability of technical assistance to producers by encouraging the use of third party technical service providers to assist USDA in delivering conservation technical services to farmers and ranchers. NTE rates are used when landowners contract with certified technical service providers in the private sector.

“We revised the NTE rates after considering public comments received from the first release in August 2003,” NRCS Chief Bruce Knight said. “As a result, we have increased rates, built in more flexibility for their use and significantly reduced inconsistencies in payment rates among neighboring states and regions.”

NRCS established NTE payment rates for categories of technical services for each state. To ensure consistency across state lines, the agency reviewed payment rates between adjacent states where similar resource conditions and agricultural operations exist, taking into account differences in state laws, cost of doing business, competition and other variables.

NRCS also updated its Technical Assistance Cost of Conservation Practices (TACCP) database, used to develop the payment rates. TACCP reflects the agency’s total cost to provide technical assistance for conservation practices. It uses cost information of sub-state areas, which reflect common natural resource, regulatory, geographic, social and economic factors. These factors affect the time needed to plan and implement conservation practices.

These revised payment rates apply to new contracts through calendar year 2005. Existing contracts will continue to use the 2003 payment rates. NRCS state conservationists can adjust NTE payment rates with adequate justification and documentation.

The revised NTE rates can be found at http://www.tsp-nte.nrcs.usda.gov/tspnte2/. The 2003 NTE rates can be found at http://www.tsp-nte.nrcs.usda.gov/TSPNTE03Archive/.
Comments on the payment rates will be accepted at any time. Please send comments to Liu-Hsiung Chuang, USDA-NRCS, Resource Economics and Social Sciences Division, 1400 Independence Ave., SW, Room 6141-S, Washington, D.C. 20250, phone: 202-720-7076 or Liu-Hsiung.Chuang@usda.gov. Information on the technical service provider process can be found at http://techreg.usda.gov.

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