Wetland Reserve Program (WRP)

Purpose:

The Wetland Reserve Program (WRP) is a voluntary program that provides technical and financial assistance to eligible landowners to address wetland, wildlife habitat, soil, water, and related natural resource concerns on private lands. The program provides an opportunity for landowners to receive financial incentives to enhance wetlands in exchange for retiring marginal land from agriculture.

Participants voluntarily limit use of the land but retain ownership.

Administering Agency:

WRP is administered by the Natural Resources Conservation Service.

Tax Consequences:

Sale or donation of WRP easements may provide landowners with a variety of tax benefits, including reduction in ad valorem tax liability and capital gains (losses).

Cost-share payments received under the Wetland Reserve Program qualify for the "Section 126 Exclusion."

Eligibility:

To offer a conservation easement, the landowner must have owned the land for at least 12 months prior to enrolling it in the program, unless the land was inherited, the landowner exercised the landowner's right of redemption after foreclosure, or the landowner can prove the land was not obtained for the purpose of enrolling it in the program.

To participate in a restoration cost-share agreement, the landowner must show evidence of ownership.

To be eligible for WRP, land must restorable and be suitable for wildlife benefits. This include:

  1. Wetlands farmed under natural conditions;
  2. Farmed wetlands;
  3. Prior converted cropland;
  4. Farmed wetland pasture;
  5. Farmland that has become a wetland as a result of flooding;
  6. Range land, pasture, or production forestland where the hydrology has been significantly degraded and can be restored;
  7. Riparian areas which link protected wetlands;
  8. Land adjacent to protected wetlands that contribute significantly to wetland functions and values; and
  9. Previously restored wetlands that need long-term protection

Assistance Offered:

The program offers three enrollment options

Permanent Easement - This is a conservation easement in perpetuity. Easement payments for this option equal the lowest of three amounts: the agricultural value of the land, an established payment cap, or an amount offered by the landowner. In additions to paying for the easement, USDA pays 100 percent of the costs of restoring the wetland.

30-Year Easement - Easement payments through this option are 75 percent of what would be paid for a permanent easement. USDA also pays 75 percent of restoration costs.

Restoration Cost-Share Agreement - This is an agreement (generally for a minimum of 10 years) to reestablish lost or degraded wetland habitat. USDA pays 75 percent of the cost of restoration. Other agencies, conservation districts, and private conservation organizations may provide additional assistance for easement payments and wetland restoration costs as a way to reduce the landowners share of the costs.

NOTE:This enrollment option does not place an easement on the property.

Additional Information: