Understanding CRP Land: What Investors Need to Know

What Is CRP?

Voluntary USDA program paying annual rent to take sensitive cropland out of production. 10-15 year contracts, ~23M acres enrolled nationally.

Contract Transfer

CRP contracts transfer to new owners. Early termination requires repayment plus 25% penalty.

Financial Analysis

CRP wins on marginal land (Class III-IV). Farming wins on prime land (Class I-II). Conversion costs: $300-$1,000/acre.

Due Diligence

Verify contract terms, check soil productivity for post-CRP options, assess wetland development risk, confirm AGI eligibility ($900K limit).