Federal funding that supports climate-smart agriculture is under threat as the Chair of the House Committee on Agriculture has proposed to divert billions of dollars from this sector in the upcoming farm bill. This move comes despite these programs being underfunded for years. The funding is essential to farmers, forest landowners, and ranchers across the nation who wish to implement climate-smart practices on their lands. Data from the U.S. Department of Agriculture (USDA) affirms that such funding has already been beneficial to these groups in every state.
In 2022, nearly $20 billion was allocated in the Inflation Reduction Act (IRA) for producers to introduce climate-smart agriculture and conservation measures on their land. This funding bolsters four primary programs at the USDA’s Natural Resources Conservation Service (NRCS): the Environmental Quality Incentives Program, the Conservation Stewardship Program, the Agricultural Conservation Easement Program, and the Regional Conservation Partnership Program. Given that some of these programs have been underfunded for years, this $20 billion investment is vital.
The IRA's climate-smart agriculture funding can assist any farmer, forest landowner, or rancher by supporting sustainable land management efforts. These practices can also save them money. For instance, climate-smart agriculture methods can help farmers use fertilizer more efficiently, leading to less waste and cost savings. This additional funding also benefits local communities in various ways, including improving water quality.
Every state has benefited from IRA’s climate-smart agriculture funding. The Environmental Quality Incentives Program received $250 million in IRA funds for fiscal year 2023 with every state receiving a portion. The Conservation Stewardship Program had $250 million in IRA funds for FY 2023 with every state but Alaska receiving some funds.
IRA-funded programs for FY 2023 channeled a significant portion of climate-smart agriculture funding to historically underserved farmers and ranchers including veterans, farmers of color, and beginning farmers. These farmers stand to lose out if future funding is redirected away from climate-smart agriculture.
Conservation programs are historically and currently oversubscribed, with many qualified projects left unfunded each year. Despite the supplemental funding, demand was still greater than supply for the first year of IRA funding—fiscal year 2023—for multiple programs.
Two years ago, the Inflation Reduction Act committed almost $20 billion to farmers, forest landowners, and ranchers in support of better stewardship of the land. New data further confirm that these groups in every state benefit from this funding. However, many who have eligible projects are still waiting for funding. If Congress redistributes the remaining funds, they may never receive the financial support they need and deserve.
