USDA Opens $7.7B to Support Climate-Smart Practices on Agricultural Lands

Earlier this month, the USDA announced up to $7.7 billion is available to help agricultural and forestry producers adopt conservation practices on working lands.

The U.S. Department of Agriculture (USDA) recently announced up to $7.7 billion in assistance for fiscal year 2025 to help agricultural and forestry producers adopt conservation practices on working lands. This includes up to $5.7 billion for climate-smart practices, made possible by the Inflation Reduction Act, and $2 billion in Farm Bill funding. This doubles the amount available last year and the most conservation assistance made available in a single year in U.S. history.

Climate change affects USDA’s stakeholders’ livelihoods due to changing temperatures, precipitation patterns, drought, flooding, and increasingly more severe extreme events, such as hurricanes and wildfires. Innovations in adapting to such changes will be central to the future success of working lands. USDA’s Natural Resources Conservation Service (NRCS) received more than 156,485 applications for its conservation programs in fiscal year 2024. While NRCS accepts applications year-round, interested agricultural producers can now apply for fiscal year 2025 funding through NRCS at their local USDA Service Center.

This year producers can apply for $2.8 billion through the Environmental Quality Incentives Program (EQIP), $943 million through the Conservation Stewardship Program (CSP), $472 million through the Agricultural Conservation Easement Program (ACEP), and up to $1.4 billion in the Regional Conservation Partnership Program (RCPP). This is in addition to the $2 billion available for these programs through the Farm Bill, including $860 million for EQIP, $600 million for CSP, $450 million for ACEP, and $250 million for RCPP.

Climate-Smart Agriculture and Forestry Activities

NRCS recently released an updated list of Climate-Smart Agriculture and Forestry Mitigation Activities eligible for Inflation Reduction Act funding in fiscal year 2025, which includes 14 new activities. NRCS also released the NRCS Conservation Practices and Greenhouse Gas Mitigation Information dashboard sharing the expected mitigation benefits and science-based estimation approach for listed practices.

These in-demand activities are expected to reduce greenhouse gas emissions or increase carbon sequestration, as well as provide other significant benefits to natural resources like soil health, water quality, pollinator and wildlife habitat and air quality. These activities will also help producers mitigate the risks of climate change, including drought and flooding from extreme weather events such as the recent hurricane.

Conservation Easements

NRCS is accepting applications for ACEP for fiscal year 2025, which includes $472 million in Inflation Reduction Act funds for this year. ACEP helps producers conserve and protect grasslands, wetlands, and farmlands. Producers interested in funding through ACEP should submit their applications by Dec. 20, 2024. Any ACEP application submitted to NRCS that was unfunded in fiscal year 2024 will be automatically re-considered during the Oct. 4 funding cycle.

In addition, NRCS is also accepting ACEP applications eligible for Farm Bill funding. Application dates for fiscal year 2025 funding differ by state, and they’re available on the NRCS Ranking Dates webpage.

How to Apply

NRCS accepts producer applications for EQIP and CSP year-round, but producers interested in fiscal year 2025 funding should apply by their state’s ranking dates through NRCS at their local USDA Service Center. Funding is provided through a competitive process and is an opportunity to address the unmet demand from producers who have previously sought funding for climate-smart conservation activities.

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