In 2024, the United States saw a record-breaking investment in farm conservation programs, largely due to funding from the Inflation Reduction Act (IRA). This landmark funding helped push the U.S. Department of Agriculture’s (USDA) investment in conservation to new heights, with over $3 billion allocated to climate-smart agriculture and forestry activities through the IRA, in addition to $2 billion from the farm bill. These funds aimed to support climate-focused conservation projects and mitigate the environmental impact of farming and forestry.
Despite the historic levels of investment, the demand for funding continues to outpace the resources available. Close to two-thirds of applicants for USDA’s flagship climate programs specifically the Environmental Quality Incentives Program (EQIP), Conservation Stewardship Program (CSP), and the Agricultural Conservation Easement Program (ACEP) were rejected. This high rejection rate reveals the challenge of balancing ambitious climate goals with limited financial support.
In total, the USDA supported over 23,000 conservation contracts during fiscal year 2024, covering more than 11 million acres of agricultural land. This was part of the broader effort to reduce agriculture’s carbon footprint, as agriculture is responsible for roughly 10% of the nation’s greenhouse gas emissions. By adopting climate-smart practices, farmers can significantly contribute to the nation’s climate mitigation efforts.
Historically, U.S. conservation programs have seen overwhelming demand. For instance, previous years have witnessed application rates that were oversubscribed by as much as three to one, a trend that continued into 2024. While the Inflation Reduction Act allocated nearly $20 billion in new funding to these programs, the strong demand for assistance continued to outstrip the available resources.
Although the IRA has increased funding for key conservation programs like EQIP and CSP, it has not fully addressed the issue of limited funding availability. In 2023, a slight improvement in the acceptance rate for CSP applications was observed, partly due to expanded outreach efforts and the added IRA funding. However, the number of accepted applications in other flagship programs, such as EQIP, remained relatively stable year over year, despite the increased funding. This indicates that the gap between available funds and applicant demand remains significant.
This funding shortfall highlights a deeper issue in the U.S.’s approach to climate change mitigation, particularly in agriculture. While the government is trying to incentivize conservation practices, the sheer volume of farmers seeking assistance and the limited program budgets present major challenges. The programs in question provide financial assistance to farmers who implement practices aimed at reducing their environmental impact such as planting cover crops, improving irrigation systems, and enhancing soil health. These practices are essential to combating climate change and making agriculture more sustainable in the long term.
The situation could become more challenging in the coming years as Congressional debates over future farm bills and IRA investments unfold. Some Republican lawmakers have proposed adjustments that could diminish the focus of the funding on climate-related initiatives. Without clear legislative guardrails, future investments may be diverted away from conservation programs, further widening the funding gap and limiting the ability of farmers to contribute to climate solutions.
The funding gap also underscores the need for continued advocacy and reform in agricultural policy. Conservation programs have long been a cornerstone of efforts to protect natural resources, yet the limited funding available for these programs means many farmers are left without the necessary support to implement practices that could help mitigate climate change. With farmers eager to participate, and with agriculture’s impact on the environment continuing to grow, it is crucial that the government not only maintain but expand investments in these programs.
The future of agricultural conservation depends on maintaining or increasing support for farmers who are willing to make the transition to more sustainable practices. As demand for funding continues to outpace the available resources, policymakers will need to find ways to better address the funding shortfall and ensure that more farmers can access the support they need to meet climate goals. With the right investment and policy support, farm conservation can become a critical tool in the fight against climate change, helping farmers lead the way toward a more sustainable and resilient agricultural system.
