Big Money for Climate Smart

Big money, big money. The USDA is providing a big check—to the tune of $7.7B—for conservation assistance to farmers. It’s the most the agency has ever given in a single year.

Tell us more: Beginning in FY25, $5.7B will be available for climate-smart practices (through the Inflation Reduction Act), plus an additional $2B in farm bill funding. 

Background: In FY24, more than 156,485 applications were received by the Natural Resources Conservation Services (NRCS) for conservation programs. Meanwhile, 28,500 farmers and ranchers have used these funds to apply conservation practices to 361M acres of land since 2023.

The Inflation Reduction Act had dedicated $19.5B for USDA conservation programs with an emphasis on lowering emissions and sequestering carbon. Of that, $3.8B was spent in FY24, and $9.5B will be spent by the end of FY25.

Mo’ Money, Mo’ Programs: Fourteen new practices have been added to the eligible climate-smart activities list, which now stretches more than seven pages. Grazing management to improve wildlife food and cover, brush management on arid lands, and mulching with natural materials are just a few examples. 

And this: Also announced by the USDA last Wednesday were $852M in loans and loan guarantees for projects to shore up electric infrastructure and smart-grid technology in 14 states, plus another $443M for drinking water, sewage disposal, and stormwater drainage in 24 states.