Summary
PolicyEngine currently models USDA food assistance programs (SNAP, WIC, School Meals, CSFP, FDPIR) but no USDA farm programs. The Conservation Reserve Program (CRP) is one of the largest USDA conservation programs, paying ~$1.8B/year in annual rental payments to ~700,000 contracts covering ~22M acres. Adding CRP would expand PolicyEngine's coverage of government transfers to rural households.
Why CRP is a natural fit
- Entity model: CRP payments go directly to individual landowners/operators — maps cleanly to the Person entity
- Tax integration: CRP rental payments are already classified as self-employment income by the IRS (Schedule F or Schedule SE), so they interact with existing tax variables
- Existing variables:
farm_income, farm_operations_income, farm_rent_income, and is_farmer_fisher already establish farm/agriculture as in-scope
- Simple formula:
payment = soil_rental_rate × enrolled_acres × proration_factor + cost_share_payment
- Published parameters: USDA publishes county-level soil rental rates, proration factors are fixed (85% general signup, 90% continuous)
Proposed implementation
New input variables
crp_enrolled_acres (float, Person, YEAR) — acres enrolled in CRP
crp_contract_type (enum, Person, YEAR) — General, Continuous, CREP, or Grassland
crp_county_rental_rate (float, Person, YEAR) — per-acre soil rental rate (published by USDA FSA)
New computed variables
is_crp_eligible (bool) — has enrolled acres and is farmer/landowner
crp_annual_rental_payment (float, USD) — the annual payment amount
crp_cost_share_payment (float, USD) — 50% cost share for establishing conservation cover
Parameters
gov/usda/fsa/crp/proration_factor/general — 0.85
gov/usda/fsa/crp/proration_factor/continuous — 0.90
gov/usda/fsa/crp/cost_share_rate — 0.50
gov/usda/fsa/crp/max_annual_payment — $50,000 per person ($100,000 with waiver)
Integration with existing tax model
CRP rental payments should flow into farm_rent_income or farm_operations_income depending on whether the person materially participates (current IRS rules). This would automatically affect SE tax, AGI, and downstream benefit eligibility calculations.
References
Context
This could be the first of several USDA farm program additions. CRP is the cleanest starting point due to its simple formula, direct-to-person payments, and existing IRS tax integration. Future additions could include Dairy Margin Coverage (DMC), Price Loss Coverage (PLC), and Agriculture Risk Coverage (ARC).
Happy to submit a PR implementing this if the approach looks reasonable.
Summary
PolicyEngine currently models USDA food assistance programs (SNAP, WIC, School Meals, CSFP, FDPIR) but no USDA farm programs. The Conservation Reserve Program (CRP) is one of the largest USDA conservation programs, paying ~$1.8B/year in annual rental payments to ~700,000 contracts covering ~22M acres. Adding CRP would expand PolicyEngine's coverage of government transfers to rural households.
Why CRP is a natural fit
farm_income,farm_operations_income,farm_rent_income, andis_farmer_fisheralready establish farm/agriculture as in-scopepayment = soil_rental_rate × enrolled_acres × proration_factor + cost_share_paymentProposed implementation
New input variables
crp_enrolled_acres(float, Person, YEAR) — acres enrolled in CRPcrp_contract_type(enum, Person, YEAR) — General, Continuous, CREP, or Grasslandcrp_county_rental_rate(float, Person, YEAR) — per-acre soil rental rate (published by USDA FSA)New computed variables
is_crp_eligible(bool) — has enrolled acres and is farmer/landownercrp_annual_rental_payment(float, USD) — the annual payment amountcrp_cost_share_payment(float, USD) — 50% cost share for establishing conservation coverParameters
gov/usda/fsa/crp/proration_factor/general— 0.85gov/usda/fsa/crp/proration_factor/continuous— 0.90gov/usda/fsa/crp/cost_share_rate— 0.50gov/usda/fsa/crp/max_annual_payment— $50,000 per person ($100,000 with waiver)Integration with existing tax model
CRP rental payments should flow into
farm_rent_incomeorfarm_operations_incomedepending on whether the person materially participates (current IRS rules). This would automatically affect SE tax, AGI, and downstream benefit eligibility calculations.References
Context
This could be the first of several USDA farm program additions. CRP is the cleanest starting point due to its simple formula, direct-to-person payments, and existing IRS tax integration. Future additions could include Dairy Margin Coverage (DMC), Price Loss Coverage (PLC), and Agriculture Risk Coverage (ARC).
Happy to submit a PR implementing this if the approach looks reasonable.