CRP Payments
As a farmer, you are the backbone of this country. We would not be anywhere if it weren’t for your job and assistance, and if anyone deserves an easy-to-navigate banking system, it’s you. After all, with so many things going on in your work and life, the last thing you need is any kind of hassle, particularly when it comes to getting your CRP payment.
Through the Conservation Reserve Program, you can get paid and supplemented for removing environmentally sensitive land from your agricultural production. When you work towards conserving land that will help improve the environment, you can receive subsidy payments from the government—and First Western Federal Savings Bank can help.
First Western Federal Savings Bank can cash out your CRP farm subsidy payments for present value in just days. If you're looking for creative financing alternatives rather than another loan, consider turning your future CRP payments into cash today with our CRP Purchase Program.
WHAT DOES CRP DO?
The USDA reports that “In exchange for a yearly rental payment, farmers enrolled in the program agree to remove environmentally sensitive land from agricultural production and plant species that will improve environment health and quality. In exchange for not using the land for agriculture or other, more destructive, non-natiuve measures, taxpayers receive a payment for each year of their contract, as well as cost-sharing payment for the coinciding costs of carrying out the conservation plan.
In essence, taxpayers enroll in a land contract, somewhere between 10-15 years in length. During this time, they voluntarily agree to implement a conservation to on land that had been previously used for farming or ranching. Land that has been used for agricultural purposes over time, and often does not utilize or encourage the growth of native species. This is problematic in the long run, because eventually the land will become unusable, unless proper methods for conservation and restoration are taken into effect.
According to the IRS, “Unless the taxpayer is receiving Social Security, retirement or disability benefits, CRP ‘annual rental payments’ are includible in net income from self-employment subjects to self-employment tax”. Essentially, this means a CRP payment can, in some circumstances, serve as an additional form of income. That being said, it is a taxable form of income and must be reported on all federal tax returns.
In exchange for not using the land for agricultural or other destructive, non-native measures, taxpayers receive a payment for each year of their contract, as well as cost-sharing payments for the coinciding costs of carrying out the conservation plan. According to Benefits.gov, “To be eligible for CRP enrollment, a farmer must have owned or operated the land for at least 12 months prior to the previous CRP sign-up period. Exceptions to this rule include:
- Land acquired by the new owner due to the previous owner’s death
- Change in ownership due to foreclosure; or
- Land that was purchased by the new owner without the sole intention of placing it in CRP”
Some of the financial benefits of enrolling in the Conservation Reserve Program include 10-15 years of annual rental payments, payments of up to 50% Cost-Share for practice establishment, and practices enrolled through CRPO Continuous Signup will also receive a 5% Practice Incentive Payment (PIP) and a Sign-Up Incentive Payment (SIP) equal to 32.5% of first full year’s annual rental payment. Learn more about the Conservation Reserve Program, and contact us today with any questions that you may have.
Members enrolled in this voluntary conservation program need to keep in mind the fact that CRP “annual rental payments” are not rental income for federal tax purposes. While the payments are called “annual rental payments”, they are not rental payments for federal tax purposes. A rental payment is an amount paid for the use or occupancy of the property. The government does not use or occupy the land covered by a CRP contract.
Further, unless the enrolled CRP taxpayer is receiving Social Security retirement or disability benefits, CRP “annual rental payments” are includible in net income from self-employment, subject to self-employment tax. For more information about where to report CRP payments on the federal tax return, view the IRS’s CRP tax resource.
WHAT ARE CRP PAYMENTS?
HOW DOES FIRST WESTERN FEDERAL SAVINGS BANK HELP?
When you receive a CRP payment, First Western can cash out your payment for present value, in just a few days. This is a service that is not available at every bank, and in fact, this is one of the valuable resources that First Western is known for.
Whether you are a rancher, a farmer, or simply a landowner, you have the potential to qualify for CRP and its subsequent payments. This is an incredible opportunity to not only increase your income, but to also contribute to the environment as a whole. Cashing out your CRP payments with First Western is one of the most positive ways you can not only impact your community or your wallet, but also the earth itself. Contact First Western today
IT'S SIMPLE
Ask For A Quote.
Get a free, fast, no-obligation CRP payment quote today. Simply answer three questions and provide contact information.
Get A Call Or Email.
Get a phone call or email from Jeff Fullerton or Pam Silver, CRP Purchase Officers, with the details of your quote.
Get Your Money.
Accept the quote and receive your payment in a matter of days.
Get your fast, free, confidential, no-obligation quote today.
One of the first things you’ll notice about First Western Federal Savings Bank is that our rates are among the most competitive in the field. We are committed to providing you with the best possible experience in both banking and non-recourse loans, and would be honored to work with you. Speak with one of our team members today to get a free quote and to learn more about how you can cash out your CRP payment with a bank that puts your needs first.
Who are we?
First Western Federal Savings Bank was founded in 1979 as a portfolio lender. Since the beginning, we have been committed to providing exceptional customer service, quick responses, and common sense answers.
Are you eligible?
Farmers, ranchers, landowners, agribusiness—if you receive annual CRP payments under the Conservation Reserve Program (CRP) from the United States Department of Agriculture (USDA) Commodity Credit Corporation (CCC) for your farmland, ranchland, wetland, or woodland, you can convert that future payment stream into cash today.
Questions?
Speak to the CRP payment specialists at First Western Federal Savings Bank today to discuss how our CRP Purchase Program could benefit you. We encourage you to review our notice of your financial privacy rights before you submit information. Please fill in each field on this page to receive a prompt, complete quote from the experienced professionals at First Western Federal Savings Bank regarding your CRP payments. Give us a call today at 800-908-8845 and get your CRP payments turned into one lump sum.