Inflation Reduction Act Funding for Climate-Smart Agriculture
The Inflation Reduction Act (IRA) was signed into law on August 16, 2022. Among its other aims, the act includes investments in federal programs that address the climate crisis, like those in support of climate-smart agriculture practices. As such, part of the IRA’s $19.5 billion package includes funding for oversubscribed conservation programs implemented by the USDA’s Natural Resources Conservation Service (NRCS). In fiscal year 2023, this means $850 million will be available for the Agricultural Conservation Easement Program (ACEP), Regional Conservation Partnership Program (RCPP), Environmental Quality Incentives Program (EQIP), and Conservation Stewardship Program (CSP).
Additional Investments for Thousands of Farmers and Millions of Acres
In total, the IRA will provide an additional $1.4 billion for ACEP, $4.95 billion for RCPP, $8.45 billion for EQIP, and $3.25 billion for CSP. The funding begins in fiscal year 2023 and will continue to rapidly build over the span of four years. Providing direct mitigation benefits, these programs will support climate-smart agriculture through financial and technical assistance to help farmers advance on-farm conservation practices.
Formerly, there have been about twice as many farmers applying for CSP as those who receive funding. The IRA will help to address the issue of oversubscription and underfunding. According to the USDA, “These additional investments are estimated to help hundreds of thousands of farmers and ranchers apply conservation to millions of acres of land.”
What are Climate-Smart Agricultural Practices?
To date, the IRA is the most significant federal investment in climate-smart agriculture. It bolsters existing USDA programs that mitigate the impacts of the climate crisis while strengthening a farm operation. So, what are examples of climate-smart agriculture?
Climate-smart agriculture practices are numerous and varied. For farmers, they include activities like resource-conserving crop rotations, buffer strips, and even mulching to improve soil health. Climate-smart agricultural examples for ranchers include rotational grazing and forage plantings that help to increase organic matter in depleted soil.
CSP at a Glance
The CSP helps forest and agricultural producers take their existing conservation efforts and climate-smart practices to the next level. Covering more acres on a multi-year basis than other conservation programs, CSP encourages farmers and ranchers to protect natural resources and improve the environment—while supporting profitability.
The technical and financial assistance targets five key conservation areas:
- Air, soil, and water quality
- Carbon sequestration
- Biodiversity and pollinator and wildlife habitat
- Natural resource concerns in a particular area (i.e., erosion, water quality)
- Water and energy conservation
Agricultural producers who make use of eligible climate-smart agricultural practices can apply for CSP funding. The enrollment process is competitive. Applications are ranked based on conservation plans, which are developed with an NRCS agent. Fortunately, as a result of the IRA, more producers in 2023 will have access to conservation assistance and funding from the CSP.
Get Paid for the Climate-Smart Practices You Use
“The Inflation Reduction Act provided a once-in-a-generation investment in conservation on working lands, and we want to work with agricultural and forest landowners to invest in climate-smart practices that create value and economic opportunity for producers,” said Ag Secretary Tom Vilsack. Payment amounts vary and are based on conservation practices, but all CSP contracts pay a minimum annual payment of $1,500 (up to approximately $40,000 a year).
If you control land and its production, you’re eligible for CSP. This includes landowners, renters, and owners who crop share. To take advantage of CSP’s increased funding as a result of the IRA, it’s imperative to apply by your state’s ranking dates. In Ohio, the first application cutoff date for the IRA-CSP funding pool is April 7, 2023.
To begin the application process, contact your local NRCS office. Along with an agent, you can use Ohio’s IRA CSP activity list to determine eligibility for the program. Based on the climate-smart agriculture activities you use and plan to use, you’ll work with an agent to complete the Conservation Assessment Ranking Tool (CART). Your conservation efforts will be assessed against those from other applicants. If you rank highly, you will be offered a five-year contract and funding. Historically underserved farmers receive special consideration.
The Benefits of CSP
Thousands of people voluntarily enroll in CSP—a number that will be even higher as a result of IRA funding. They often see real results, like improved wildlife habitats, increased resiliency to extreme weather and market volatility, and a decreased spending on agricultural inputs. Do you engage with CSP and the use of climate-smart agriculture practices? If so, please contact us to share your experiences. The 2023 Farm Bill provides an opportunity for us to continue advocating for NRCS programs like CSP.