SWOF Original: The Farm Bill and Inflation Reduction Act: How Legislation Impacts Conservation on Farms

The agricultural sector plays a vital role in the nation's economy, ensuring food security, and maintaining natural resources for future generations. To support sustainable farming practices and protect our environment, the federal government has implemented various voluntary conservation programs and funding mechanisms. In this blog post, we will explore the significant impact the Farm Bill has on conservation practices in agriculture. This is a timely topic as Congress is debating the reauthorization of the Farm Bill. We’ll also discuss the implications of the Inflation Reduction Act on agricultural conservation efforts.

The Farm Bill and Conservation Practices:

The Farm Bill is a comprehensive piece of legislation that touches upon a wide range of agricultural and conservation policies. Every five years, the Farm Bill expires and must be updated. During this extensive process, the bill is proposed, debated, and passed by Congress before being signed into law by the President. It covers programs ranging from crop insurance for farmers to healthy food access for low-income families. But did you know it also allocates critical funding for conservation programs on farms? These voluntary programs offer financial incentives and technical assistance to farmers, encouraging them to adopt sustainable practices that safeguard soil health, water resources, and biodiversity.

Detailed in the conservation title (or chapter), the Farm Bill significantly influences conservation practices by providing financial support for various initiatives, such as the Conservation Reserve Program (CRP), Environmental Quality Incentives Program (EQIP), Conservation Stewardship Program (CSP), Regional Conservation Partnership Program (RCPP), and others.

Of specific relevance to the Soil and Water Outcomes Fund® is the RCPP. This program encourages partners, like the Soil and Water Outcomes Fund, to develop projects and programs to work with farmers via pathways that may differ from how the USDA delivers programs. Outcome or performance-based programs are one of these pathways. Currently, the Soil and Water Outcomes Fund is implementing RCPP projects in Iowa, Illinois, Missouri, Indiana, and Ohio.

Funding for these conservation programs represented 7% of the current Farm Bill, totaling about $6 billion annually for the past five years. It is the single largest investment in conservation made by the federal government on a yearly basis. The Farm Bill's reauthorization and funding levels set within this portion have a significant impact on the scale and effectiveness of these conservation programs, as they allow farmers to make a more substantial commitment to sustainability and environmental stewardship. For example, when surveying Soil and Water Outcomes Fund farmer participants last year, 56% said they would not have implemented conservation practices on their enrolled acres without the support of our program.

The Farm Bill debate is also a time to refine program implementation, solve challenges with current programs, and improve the overall delivery of USDA conservation programming . For example, the 2018 Farm Bill required that USDA allocate $25 million annually for on-farm conservation innovation trials. This requirement was not in the prior Farm Bill.

Other Laws that Impact Conservation:

The Inflation Reduction Act, signed by the president in August 2022, aims to address inflationary pressures and the rising cost of living. While its primary focus is on fiscal and monetary policies, it also has implications for conservation efforts on farms. The Inflation Reduction Act provides additional funding for Farm Bill conservation programs (EQIP, RCPP, etc.), tax credits for lower carbon biofuels, and other activities driving on-farm conservation.

Additionally, the Consolidated Appropriations Act (aka Omnibus Spending Bill), signed into law on December 29, 2022, includes a requirement for USDA to explore the creation of a process to certify programs, like the Soil and Water Outcomes Fund, that work with farmers to generate greenhouse gas reductions and removals. We are expecting more from the USDA this year on this topic.

Conclusion:

Conservation practices are vital to maintaining the health of our agricultural landscapes and safeguarding natural resources for future generations. The Farm Bill's impact on conservation funding and programs on farms enables critical support for partners and farmers in adopting sustainable agricultural practices. It is important to stay in tune with the Farm Bill discussions to ensure that programs and funding remain available to farmers.