Water-Saving Commodities (WSC) Program

Water-Saving Commodities (WSC) Program is sponsored by USDA Farm Service Agency. Supports agricultural commodity production while reducing water losses in drought-affected areas.

**What is the Water-Saving Commodities Program? ** The Water-Saving Commodities (WSC) Program is a new non-competitive grant program offered by USDA’s Farm Service Agency (FSA) to support agricultural commodity production while saving water in places experiencing impacts from drought. **How much water is expected to be saved by these investments from the new WSC grants?

** 50,000 acre-feet of water saved is expected from WSC grants awarded for activities applied across 250,000 acres of irrigated land **Who is eligible for these non-competitive WSC grants?

** Public corporations, special-purpose units of government, or other organizations with authority for delivering water to farms or ranches such as but not limited to irrigation districts, drainage districts, irrigation companies, ditch companies, and water companies. **How are WSC grant recipients selected?

** Organizations offered WSC grants were pre-selected based on data from the USDA’s Economic Research Service (ERS) and analysis of their exposure to drought frequency, capacity to reduce water, capacity to switch to less water-intensive crops, and capacity to increase on-farm irrigation efficiency. Final selections are based on the organization’s ability to meet administrative requirements of grant agreements.

**How much funding is available through the Water-Saving Commodities Program? ** $400 million is available for eligible organizations and $60 million is set aside for partnerships with Tribes or organizations working with acequias. **How much funding can be awarded to an eligible organization?

** Up to $15 million may be awarded to an eligible organization. **How long is the grant good for? ** Funds awarded in a WSC grant must be fully disbursed within 5 years.

**What activities are eligible for payment under these kinds of grants? ** Any activity (practice, structure, or improvement) which enables the production of water-saving agricultural commodities as approved by FSA may be eligible. **What is the payment rate for each activity eligible for funding by this grant?

** Payment rates will not exceed the actual cost of the activities needed to save water and are capped per acre-foot of water saved at a maximum determined by FSA. **Are grant funds advanced before or reimbursed after the activity is completed? ** Funds are typically reimbursed for approved activities after they are completed.

Advances may be requested and approved as needed on a case-by-case basis. **How can producers get paid to carry out water-saving activities on their farm or ranch? ** Producers may get paid through methods determined by the grant recipient.

**What are the eligibility requirements for a producer to get paid? ** A producer may be eligible for payment if they are located within an area designated by the recipient of a WSC grant, agree to carry out water-saving activities on their farm or ranch, have records established at FSA, and are in compliance with USDA’s Highly Erodible Land Conservation and Wetland Conservation requirements.

**Who determines eligibility for payments to producers? ** **Must eligible producers establish farm records with the Farm Service Agency? ** Yes, producers must have farm, tract, and field records established with FSA.

**Do Adjusted Gross Income provisions apply? ** No, Adjusted Gross Income provisions do not apply. **Must eligible producers meet USDA Highly Erodible Land Conservation and Wetland Conservation compliance requirements?

** Yes, any person who produces an agricultural commodity on highly erodible land or designates such land for conservation uses, plants an agricultural commodity on a converted wetland, or converts a wetland must be determined compliant with the requirements of the Code of Federal Regulations, Tittle 7, Part 12, before receiving payments.

**How do producers establish farm records and meet conservation compliance requirements, and can FSA help with this? ** Producers may establish or update farm records by contacting their local FSA office or using Farmers. gov. FSA will determine if they meet conservation compliance requirements.

**Are there opportunities for contractors, consultants, or other partners to help grant recipients carry out water-saving activities? ** Maybe. The grant recipient may enter into contracts with consultants/contractors or enter into agreements with partners to carry out approved water-saving activities.

**What is a water-saving activity? ** Water-saving activities are the practices, structures, or improvements which reduce the loss of water during production and marketing of agricultural commodities. They are guided by strategies for reducing water losses during storage, delivery, distribution, and application of water needed for crop production based on full time or supplemental irrigation methods.

**What kinds of activities reduce water losses during storage and delivery of water to farms? ** Activities that reduce water losses during storage and delivery of water to farms may include lining or piping canals, improving turnouts, headgates, pumping facilities, installing automation, data collection and transmittal systems, constructing tailwater recovery or water harvesting catchment basins, or other innovations.

**What kinds of activities reduce water losses during crop production?

** Activities which reduce water losses during crop production may occur during distribution of water to crop fields or during irrigation of crops and may include upgrading irrigation systems or on-farm water infrastructure, adjustment of management practices and selections of less water-demanding crops, crop varieties or rotations, restoration of wetlands, riparian areas or other natural groundwater recharge areas, construction of on-farm managed groundwater recharge areas, or other innovations on the farm or ranch level.

**How are water savings calculated? ** There are many methods used to calculate the volume of water saved by reducing current losses. Methods are specific to the kind of practice, structure, or improvement being made.

Engineers or irrigation experts familiar with specific methods used to estimate water losses or verify actual amounts reduced provide documentation showing their calculations. **How will these water-savings activities help producers?

** Water-savings activities help producers receiving water from grant recipients respond to the impacts of reduced off-site water deliveries on agricultural commodity production, build resilience of drought impacts on irrigated crops, and create or expand agricultural commodity production and product markets based on water savings. **How will these water-savings activities help the wider community?

** Water saved by these grant recipients helps build resilience to the impacts of drought on the wider community by remaining available for downstream beneficial use (e.g. jr. water right holders, non-agricultural uses).