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Correcting the Record: The IRA Made More Money Available for All Conservation Work

Photo credit: USDA.

The Inflation Reduction Act (IRA) invested billions of dollars in working lands conservation programs, making more money available to all farmers and for all conservation activities. 

IRA dollars function as a supplemental pool of funding for four conservation programs: the Conservation Stewardship Program (CSP), the Environmental Quality Incentives Program (EQIP), the Agricultural Conservation Easement Program (ACEP), and the Regional Conservation Partnership Program (RCPP.) In addition to the IRA-created supplemental pools, each program also has a separate pool of Farm Bill funding that is still available for all traditional conservation work that the Natural Resource Conservation Service (NRCS) has funded for decades. In practice, separate IRA and Farm Bill funding pools mean that farmers hoping to implement Climate Smart Agriculture and Forestry (CSAF) practices, conservation activities that have long been available in EQIP and CSP, will receive funding from the IRA pool created within the conservation program they apply to. Similarly, farmers hoping to implement conservation practices that are not on the NRCS CSAF practice list will be funded out of the Farm Bill funding pool that still exists in each conservation program.

With all of the money that IRA made available now and in coming years, what does this increased access really look like for farmers hoping to implement CSAF practices as well as other conservation activities? What does historic demand for different conservation practices tell us about the likely outcome of spending conservation dollars from two separate funding pools? Looking at FY21 and FY22 spending in CSP and EQIP helps to illustrate.

IRA Has  Dramatically Improved Access to Conservation Programs

In FY21, CSP had a total of $750 million dollars available for new contracts addressing all resource concerns. That same year, CSAF practices accounted for over $153 million of CSP obligations, or about 30% of program funding. Similarly, in FY22, CSP had a total of $800 million available for new contracts and obligated over $234 million supporting CSAF practices, accounting for 38% of program spending (see Appendix for Tables 1 & 2). Compare this spending to the $250 million IRA allocated to CSP in FY23. If we assume similar demand for CSAF practices in FY23 as in recent years, then the IRA funding pool is tailor made to meet that demand. This leaves dramatically more Farm Bill funding available to meet farmer demand for all other conservation activities.

Graph 1

As Graph 1 clearly shows, IRA’s separate, additional funding pool for CSAF practices gives NRCS the ability to meet historic demand for CSAF practices and then some, leaving all of the Farm Bill funding pool available to meet farmer demand for traditional conservation activities. Compared to FY22, IRA stands to help double the amount of CSP funds available for traditional conservation activities in FY23, with as much as $1 billion dollars up for grabs. Only $566 million went to traditional conservation activities in FY22.

Looking at EQIP tells a similar story. In FY21, EQIP obligated roughly $1.267 billion dollars via new contracts addressing all resource concerns. That same year, CSAF practices accounted for over $381 million of EQIP obligations, or about 30% of program funding. Similarly, in FY22, EQIP obligated about  $1.282 billion via new contracts, over $404 million of that supporting CSAF practices, accounting for 31% of program obligations (see Appendix for Tables 3 & 4). Compare this spending to the $250 million IRA allocated to EQIP in FY23. Again, if we assume similar demand for CSAF practices in FY23 as in recent years, then the IRA funding pool inside EQIP is a near perfect tool to meet that demand. This leaves dramatically more Farm Bill funding available to meet farmer demand for all other conservation activities.

Graph 2.

Again, Graph 2 shows that IRA’s supplemental funding pool for CSAF practices gives NRCS the ability to meet historic demand for CSAF practices, thus freeing up more of the Farm Bill funding pool available to meet farmer demand for traditional conservation activities. Compared to FY22, IRA stands to meet roughly 62% of historic demand for CSAF practices in EQIP, making $250 million dollars of the Farm Bill funding pool available for traditional conservation practices.

Conclusion

The 2023 Farm Bill can both establish a dedicated, permanent source of funds for farmers addressing climate change within their operations and significantly improve producers’ ability to get support for traditional conservation practices. Congress should seize the nearly unprecedented opportunity to strengthen investments in climate-friendly agriculture and traditional conservation for decades to come.

Appendix

Table 1. Climate-Smart Agriculture and Forestry Practice, CSP, FY2021

CSAF Category Practice NameEnhancement Name Code Financial Assistance Total Percentage of Total CSP Financial Assistance
Nitrogen Management Nutrient Management 590 $3,369,356 $66,725,833 13.23%
Improving nutrient uptake efficiency and reducing risk of nutrient losses E590A $38,293,260
Reduce risks of nutrient loss to surface water by utilizing precision agriculture technologies E590B $22,811,645
Improving nutrient uptake efficiency and reducing risk of nutrient losses on pasture E590C $2,251,572
Soil Health

Conservation Cover 327 $384,748 $45,635,955 9.05%
Conservation cover for pollinators and beneficial insects E327A $326,010
Establish Monarch butterfly habitat E327B $4,824,557
Conservation Crop Rotation 328 $835,069
Resource conserving crop rotation E328A $2,904,593
Improved resource conserving crop rotation E328B $54,087
Soil health crop rotation E328E $852,207
Modifications to improve soil health and increase soil organic matter E328F $1,495,421
Crop rotation on recently converted CRP grass/legume cover for soil organic matter improvement E328G $2,259
Residue and Tillage Management, No Till 329 $1,599,772
No till to reduce soil erosion E329A $1,154,691
No till to reduce tillage induced particulate matter E329B $10,047
No till to increase plant-available moisture E329C $157,687
No till system to increase soil health and soil organic matter content E329D $1,363,642
No till to reduce energy E329E $129,959
Cover Crop 340 $6,037,450
Cover crop to reduce soil erosion E340A $2,914,769
Intensive cover cropping to increase soil health and soil organic matter content E340B $2,725,537
Use of multi-species cover crops to improve soil health and increase soil organic matter E340C $2,594,300
Intensive orchard/vineyard floor cover cropping to increase soil health E340D $48,887
Cover crop to minimize soil compaction E340F $1,998,001
Cover crop to reduce water quality degradation by utilizing excess soil nutrients E340G $2,422,469
Cover crop to suppress excessive weed pressures and break pest cycles E340H $1,643,864
Using cover crops for biological strip till E340I $4,040
Residue and Tillage Management, Reduced Till 345 $1,585,482
Reduced tillage to reduce soil erosion E345A $3,417,079
Reduced tillage to reduce tillage induced particulate matter E345B $183,976
Reduced tillage to increase plant-available moisture E345C $374,085
Reduced tillage to increase soil health and soil organic matter content E345D $2,068,155
Reduced tillage to reduce energy use E345E $173,657
Field Border 386 $31,062
Enhanced field borders to reduce soil erosion along the edge(s) of a field E386A $275,195
Enhanced field borders to increase carbon storage along the edge(s) of the field E386B $117,180
Enhanced field borders to decrease particulate emissions along the edge(s) of the field E386C $4,422
Enhanced field borders to increase food for pollinators along the edge(s) of a field E386D $77,693
Enhanced field borders to increase wildlife food and habitat along the edge(s) of a field E386E $89,456
Filter Strip 393 $7,424
Extend existing filter strip to reduce water quality impacts E393A $82,097
Grassed Waterway 412 $23,453
Enhance a grassed waterway E412A $208,735
Mulching 484 $46,415
Mulching to improve soil health E484A $340
Reduce particulate matter emissions by using orchard or vineyard generated woody materials as mulch E484B $103,094
Mulching with natural materials in specialty crops for weed control E484C $7,190
Buffer Bundle#1 B000BFF1 $27,378
Crop Bundle #24 – Cropland Soil Health Management System B000CPL24 $248,321
Agroforestry, Forestry and Upland Wildlife Habitat Alley Cropping 311 $691 $35,328,641 7.00%
Critical Area Planting 342 $11,883
Windbreak/Shelterbelt Establishment 380 $6,022
Silvopasture 381 $1,287
Silvopasture to improve wildlife habitat E381A $9,202
Riparian Herbaceous Cover 390 $4,510
Increase riparian herbaceous cover width for sediment and nutrient reduction E390A $11,730
Increase riparian herbaceous cover width to enhance wildlife habitat E390B $23,680
Riparian Forest Buffer 391 $35,942
Increase riparian forest buffer width for sediment and nutrient reduction E391A $151,533
Increase stream shading for stream temperature reduction E391B $2,493,923
Increase riparian forest buffer width to enhance wildlife habitat E391C $2,706,388
Hedgerow Planting 422 $727
Tree/Shrub Establishment 612 $379,101
Planting for high carbon sequestration rate E612B $8,120,463
Establishing tree/shrub species to restore native plant communities E612C $1,123,367
Tree/shrub planting for wildlife food E612G $2,169,802
Upland Wildlife Habitat Management 645 $216,442
Manage existing shrub thickets to provide adequate shelter for wildlife E645B $133,529
Edge feathering for wildlife cover E645C $145,252
Forest Stand Improvement 666 $631,831
Maintaining and improving forest soil quality E666A $1,900,865
Forest management to enhance understory vegetation E666D $2,822,732
Reduce height of the forest understory to limit wildfire risk E666E $804,836
Reduce forest stand density to create open stand structure E666F $2,315,270
Increase on-site carbon storage E666H $542,706
Crop tree management for mast production E666I $2,053,711
Facilitating oak forest regeneration E666J $467,032
Creating structural diversity with patch openings E666K $621,042
Forest Stand Improvement to rehabilitate degraded hardwood stands E666L $1,696,454
Summer roosting habitat for native forest-dwelling bat species E666P $2,849,114
Forest songbird habitat maintenance E666R $245,550
Facilitating longleaf pine establishment E666S $28,299
Establish pollinator habitat E420A $181,882
Establish monarch butterfly habitat E420B $421,843
Grazing and Pasture Pasture and Hay Planting 512 $471,043 $5,163,050 1.02%
Prescribed Grazing 528 $4,670,397
Range Planting 550 $21,610
Rice Irrigation Water Management 449 $242,348 $242,348 0.05%
Energy Pumping Plant 533 $10,194 $10,194 0.002%
TOTAL $153,106,021 30.35%

Table 2. Climate-Smart Agriculture and Forestry Practices, CSP FY2022

CSAF Category Practice Name Code Financial Assistance Total Percentage of Total CSP Financial Assistance
Nitrogen Management Nutrient Management 590 $2,605,647 $97,382,301 15.84%
Improving nutrient uptake efficiency and reducing risk of nutrient losses E590A $71,916,154
Reduce risks of nutrient loss to surface water by utilizing precision agriculture technologies E590B $20,944,034
Improving nutrient uptake efficiency and reducing risk of nutrient losses on pasture E590C $1,816,436
Reduce nutrient loss by increasing setback awareness via precision technology for water quality E590D $100,030
Agroforestry, Forestry and Upland Wildlife Habitat Alley Cropping 311 $68 $58,201,207 9.47%
Critical Area Planting 342 $30,161
Windbreak/Shelterbelt Establishment and Renovation 380 $9,850
Silvopasture 381 $1,773
Silvopasture to improve wildlife habitat E381A $22,633
Riparian Herbaceous Cover 390 $2,424
Increase riparian herbaceous cover width for sediment and nutrient reduction E390A $20,286
Increase riparian herbaceous cover width to enhance wildlife habitat E390B $20,711
Riparian Forest Buffer 391 $30,960
Increase riparian forest buffer width for sediment and nutrient reduction E391A $91,854
Increase stream shading for stream temperature reduction E391B $2,346,857
Increase riparian forest buffer width to enhance wildlife habitat E391C $1,980,657
Wildlife Habitat Planting 420 $88,062
Establish pollinator habitat E420A $339,254
Establish monarch butterfly habitat E420B $445,948
Hedgerow Planting 422 $1,078
Tree/Shrub Establishment 612 $548,635
Planting for high carbon sequestration rate E612B $24,568,829
Establishing tree/shrub species to restore native plant communities E612C $2,619,562
Tree/shrub planting for wildlife food E612G $2,837,490
Upland Wildlife Habitat Management 645 $151,756
Manage existing shrub thickets to provide adequate shelter for wildlife E645B $385,535
Edge feathering for wildlife cover E645C $259,007
Forest Stand Improvement 666 $775,622
Maintaining and improving forest soil quality E666A $2,087,013
Forest management to enhance understory vegetation E666D $3,844,845
Reduce height of the forest understory to limit wildfire risk E666E $1,350,414
Reduce forest stand density to create open stand structure E666F $3,932,360
Increase on-site carbon storage E666H $374,671
Crop tree management for mast production E666I $1,746,532
Facilitating oak forest regeneration E666J $862,605
Creating structural diversity with patch openings E666K $704,021
Forest Stand Improvement to rehabilitate degraded hardwood stands E666L $2,349,227
Summer roosting habitat for native forest-dwelling bat species E666P $3,092,961
Forest songbird habitat maintenance E666R $228,683
Facilitating longleaf pine establishment E666S $48,863
Soil Health Conservation Cover 327 $137,563 $43,629,685 7.10%
Conservation cover for pollinators and beneficial insects E327A $614,349
Establish Monarch butterfly habitat E327B $1,156,690
Conservation Crop Rotation 328 $907,995
Resource conserving crop rotation E328A $2,534,902
Improved resource conserving crop rotation E328B $226,865
Soil health crop rotation E328E $937,088
Modifications to improve soil health and increase soil organic matter E328F $376,993
Crop rotation on recently converted CRP grass/legume cover for soil organic matter improvement E328G $2,368
Intercropping to Improve Soil Health E328N $16,412
Perennial Grain Conservation Crop Rotation E328O $59,936
Residue and Tillage Management, No Till 329 $1,277,923
No till to reduce soil erosion E329A $1,880,349
No till to reduce tillage induced particulate matter E329B $94,341
No till to increase plant-available moisture E329C $299,596
No till system to increase soil health and soil organic matter content E329D $1,186,798
No till to reduce energy E329E $102,644
Cover Crop 340 $5,828,222
Cover crop to reduce soil erosion E340A $3,986,434
Intensive cover cropping to increase soil health and soil organic matter content E340B $3,304,135
Use of multi-species cover crops to improve soil health and increase soil organic matter E340C $2,247,527
Intensive orchard/vineyard floor cover cropping to increase soil health E340D $48,612
Cover crop to minimize soil compaction E340F $1,926,454
Cover crop to reduce water quality degradation by utilizing excess soil nutrients E340G $1,223,058
Cover crop to suppress excessive weed pressures and break pest cycles E340H $3,046,357
Residue and Tillage Management, Reduced Till 345 $1,509,354
Reduced tillage to reduce soil erosion E345A $4,373,834
Reduced tillage to reduce tillage induced particulate matter E345B $155,419
Reduced tillage to increase plant-available moisture E345C $277,979
Reduced tillage to increase soil health and soil organic matter content E345D $2,063,039
Reduced tillage to reduce energy use E345E $104,387
Field Border 386 $17,272
Enhanced field borders to reduce soil erosion along the edge(s) of a field E386A $306,622
Enhanced field borders to increase carbon storage along the edge(s) of the field E386B $285,119
Enhanced field borders to decrease particulate emissions along the edge(s) of the field E386C $21,434
Enhanced field borders to increase food for pollinators along the edge(s) of a field E386D $85,401
Enhanced field borders to increase wildlife food and habitat along the edge(s) of a field E386E $77,940
Filter Strip 393 $8,594
Extend existing filter strip to reduce water quality impacts E393A $153,493
Grassed Waterway 412 $14,297
Enhance a grassed waterway E412A $354,786
Mulching 484 $88,715
Mulching to improve soil health E484A $21,575
Reduce particulate matter emissions by using orchard or vineyard generated woody materials as mulch E484B $240,260
Mulching with natural materials in specialty crops for weed control E484C $40,997
Buffer Bundle#1 B000BF $5,557
Grazing and Pasture Pasture and Hay Planting 512 $498,771 $34,146,322 5.55%
Cropland conversion to grass-based agriculture to reduce soil erosion E512A $21,566
Forage and biomass planting to reduce soil erosion or increase organic matter to build soil health E512B $82,948
Cropland conversion to grass for soil organic matter improvement E512C $17,681
Forage plantings that help increase organic matter in depleted soils E512D $73,014
Forage and biomass planting that produces feedstock for biofuels or energy production. E512E $68,378
Establish pollinator and/or beneficial insect and/or monarch habitat E512I $3,955
Establish wildlife corridors to provide habitat continuity or access to water E512J $94
Diversifying Forage Base with Interseeding Forbs and Legumes to Increase Pasture Quality E512L $72,349
Forage Plantings that Improve Wildlife Habitat Cover and Shelter or Structure and Composition E512M $62,510
Prescribed Grazing 528 $5,299,300
Maintaining quantity and quality of forage for animal health and productivity E528A $4,877,441
Grazing management for improving quantity and quality of food or cover and shelter for wildlife E528D $224,106
Improved grazing management for enhanced plant structure and composition for wildlife E528E $1,434,976
Stockpiling cool season forage to improve structure and composition or plant productivity and health E528F $435,847
Improved grazing management on pasture for plant productivity and health with monitoring activities E528G $284,213
Prescribed grazing to improve/maintain riparian and watershed function-elevated water temperature E528H $12,937
Grazing management that protects sensitive areas -surface or ground water from nutrients E528I $39,728
Prescribed grazing on pastureland that improves riparian and watershed function E528J $297,769
Prescribed grazing that improves or maintains riparian and watershed function-erosion E528L $1,723,162
Grazing management that protects sensitive areas from gully erosion E528M $40,577
Clipping mature forages to set back vegetative growth for improved forage quality E528O $9,744,386
Implementing Bale or Swath Grazing to increase organic matter and reduce nutrients in surface water E528P $3,625,316
Management Intensive Rotational Grazing E528R $4,945,828
Soil Health Improvements on Pasture E528S $175,823
Range Planting 550 $15,337
Range planting for increasing/maintaining organic matter E550A $60,569
Range planting for improving forage, browse, or cover for wildlife E550B $7,741
Rice Irrigation Water Management 449 $586,778 $586,778 0.10%
Energy Energy Efficient Agricultural Operation 374 $367 $180,517 0.03%
Alternated Wetting and Drying (AWD) of rice fields E449B $180,150
TOTAL $234,126,810 38.09%

Table 3. Climate-Smart Agriculture and Forestry Practices, EQIP FY2021

CSAF Category Practice Name Financial Assistance Total FA For CSAF Category Percent of Total EQIP Financial Assistance
Soil Health Conservation Cover $5,134,163 $142,748,326 11.3%
Conservation Crop Rotation $5,792,275
Residue and Tillage Management, No Till $10,499,921
Contour Buffer Strips $1,087
Cover Crop $102,139,480
Residue and Tillage Management, Reduced Till $5,579,716
Field Border $168,132
Filter Strip $34,756
Grassed Waterway $6,547,073
Mulching $6,770,949
Strip-cropping $67
Vegetative Barrier $80,275
Herbaceous Wind Barriers $432
Nutrient Management Nutrient Management $20,521,630 $20,521,630 1.6%
Livestock Partnership Anaerobic Digester $1,806,244 $3,943,914 0.3%
Waste Separation Facility $2,137,670
Grazing and Pasture Pasture and Hay Planting $30,093,271 $57,056,074 4.5%
Prescribed Grazing $18,573,311
Range Planting $8,389,492
Agroforestry, Forestry and Upland Wildlife Habitat Alley Cropping $3,021 $104,331,650 8.2%
Critical Area Planting $2,071,776
Windbreak/Shelterbelt Establishment $957,300
Silvopasture $513,673
Riparian Forest Buffer $805,626
Riparian Herbaceous Cover $214,573
Wildlife Habitat Planting $4,343,311
Hedgerow Planting $886,018
Tree/Shrub Establishment $37,214,440
Upland Wildlife Habitat Management $3,754,579
Forest Stand Improvement $52,997,784
Multi-Story Cropping $569,548
Energy, Combustion, and Electricity Efficiency Combustion System Improvement $24,231,089 $45,021,810 3.6%
Energy Efficient Building Envelope $9,401,434
Energy Efficient Lighting System $624,638
Farmstead Energy Improvement $10,764,650
Wetlands Wetland Restoration $489,039 $489,039 0.0%
Rice Irrigation Water Management $7,412,341 $7,412,341 0.6%
Grand Totals $381,524,784 30.1%

Table 4. Climate Smart Agriculture and Forestry Practices, EQIP FY 2022

CSAF Category Practice Name Financial Assistance Total FA for CSAF Category Percent of Total EQIP Financial Assistance
Soil Health Conservation Cover $4,521,721 $172,427,455 13.4%
Conservation Crop Rotation $7,506,982
Residue Management, No Till & Strip Till $11,002,111
Contour Buffer Strips $365
Cover Crop $129,040,843
Residue Management, Mulch Till $8,165,347
Field Border $204,674
Filter Strips $30,981
Grassed Waterway $4,806,024
Mulching $7,037,575
Vegetative Barrier $110,710
Herbaceous Wind Barriers $120
Nutrient Management Nutrient Management $22,264,068 $22,264,068 1.7%
Livestock Partnership Anaerobic Digester, Controlled Temperature $1,983,965 $4,443,476 0.3%
Solid/Liquid Waste Separation Facility $2,459,511
Grazing and Pasture Pasture & Hayland Planting $29,381,463 $62,394,728 4.9%
Prescribed Grazing $24,887,238
Range Planting $8,126,027
Agroforestry, Forestry and Upland Wildlife Habitat Alley Cropping $43,575 $91,453,650 7.1%
Critical Area Planting $3,233,756
Windbreak/Shelterbreak Establishment $1,281,505
Silvopasture Establishment $567,708
Riparian Forest Buffer $861,169
Riparian Herbaceous Buffer $101,196
Wildlife Upland Habitat Management $4,840,252
Hedgerow Planting $902,533
Tree/Shrub Establishment $29,345,626
Multi-Story Cropping $438,254
Wildlife Habitat Planting $4,394,420
Forest Stand Improvement $45,443,655
Energy, Combustion, and Electricity Efficiency Combustion System Improvement $23,124,086 $44,332,302 3.5%
On-Farm Equipment Efficiency Improvements $10,993,114
Lighting System Improvement $805,489
Building Envelope Improvement $9,409,613
Wetlands Wetland Restoration $624,805 $624,805 0.0%
Rice Irrigation Water Management $6,772,942 $6,772,942 0.5%
Grand Totals $404,713,427 31.6%

Endnotes

  1. One additional note for interpreting EQIP data presented here, projected totals in FY23 are estimated using budget authority for both IRA and Farm Bill funding totals, whereas the previous two fiscal years use obligated financial assistance data reported in NRCS’ annual protracts data set. The Farm Bill stepped up funding in EQIP each year over the last five years, going from $1.85 billion of budget authority in FY22 to $2.025 billion in FY23. This difference between obligations and budget authority combined with the step up in annual funding creates the large jump in funding from FY22 to FY23 shown in Graph 2.

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