Funding and Financing
Dairy farmers seeking to implement new sustainability practices can leverage various funding avenues such as cost-share programs, carbon markets, and grants to support their initiatives. By strategically leveraging these funding sources, dairy farmers can overcome financial barriers and invest in management changes that not only benefit the environment but also improve the long-term viability and resilience of their operations.
While there are various ways to fund projects and practices, with new and innovative options continually emerging, the following is a summary of the most prominent and well-established mechanisms.
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USDA NRCS and FSA Opportunities
Natural Resources Conservation Service (NRCS) offers voluntary programs to eligible landowners and agricultural producers to provide financial and technical assistance to help manage natural resources in a sustainable manner. Through these programs, the agency approves contracts to provide financial assistance to help plan and implement conservation practices that address natural resource concerns or opportunities to help save energy and improve soil, water, plant, air, animal and related resources on agricultural lands and non-industrial private forestland.
See examples of NRCS programs below.
Environmental Quality Incentives Program (EQIP) provides technical and financial assistance to agricultural producers and forest landowners to address natural resource concerns, such as:
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Improved water and air quality
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Conserved ground and surface water
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Increased soil health
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Reduced soil erosion and sedimentation
The Conservation Stewardship Program (CSP) helps farmers build on their existing conservation efforts while strengthening the operation.
The Conservation Reserve Program (CRP) provides a yearly rental payment to farmers who remove environmentally sensitive land from agricultural production and plant species that will improve environmental health and quality.
TO TAKE ACTION
To get started with NRCS, see your local USDA and NRCS field office.
Common technical assistance includes resource assessment, practice design, and resource monitoring. Applications for EQIP financial assistance are accepted throughout the year. Specific state deadlines are set for ranking and funding. If your application is ranked and selected, you will enter into a contract with NRCS to receive financial assistance for the cost of implementing conservation practices. Payment rates for conservation practices are reviewed and set each fiscal year.
See Learning Hub Content for More Information
USDA Rural Development Opportunities
TO TAKE ACTION
Find the state office's contact information and speak to a program specialist before attempting to fill out any forms or applications.
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For REAP applications, consider talking with a Rural Development Energy Coordinator before attempting to fill out any forms or applications.
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For VAPG applications, consider talking with a local Business Programs Specialist.
State Programs
Many states have started their own state programs that provide grants, loans, and other financial assistance to support conservation practice implementation. State programs tend to address regional priorities such as air quality, water quality, and water conservation.
TO TAKE ACTION
Every state program differs. Visit state-specific programs to learn more.
County and Watershed Programs
Some funding programs are administered at a hyper-local level. These programs are typically tailored to address specific regional priorities, making them highly relevant to local needs.
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Soil and Water Conservation Districts: Certain states allocate funds to counties for distribution to farmers through their Soil and Water Conservation Districts to support the implementation of conservation practices. Many districts also obtain and distribute grant funding to farmers in their region.
-
Non-Profits: Small agricultural non-profits and watershed organizations often provide grant funding to farmers within their regions.
Staff at these organizations can be invaluable partners in conservation efforts, offering personalized guidance and support. They often have the time and expertise to walk farmers through available options and opportunities, helping them to leverage additional funding from federal and state sources.
TO TAKE ACTION
Local Soil and Water Conservation Districts serve as valuable resources for information on regional funding options and opportunities. These districts typically offer detailed guidance on the programs available within a specific area and assist in navigating the application process.
This is a database of financial and technical resources that are currently available for producers in the U.S. It contains information from government, non-profit, extension, state planning tools, and many other relevant financial or technical assistance providers and resources. Financial resources include grants, cost-share, loan programs and other incentives available.
Carbon Markets and Credits
As countries around the world urgently seek to address climate change, carbon markets provide an option to accelerate the pace of decarbonization while offsetting the costs of reducing GHG emissions. These markets offer a key tool for countries and companies to mobilize the necessary resources to achieve climate goals by providing a flexible and economically viable pathway to reducing emissions.
A carbon market facilitates the buying and selling of carbon offset credits between entities. By converting emission reduction projects into tradable assets, buyers can pursue cost-effective ways to reduce emissions or meet a climate target. Carbon markets suffer from a lack of clarity because there is no unifying international market or established governance structure that guides carbon markets to ensure they function as intended.
See Learning Hub Content for More Information
Competitive Grants
Competitive grants focused on agriculture sustainability are often designed for larger organizations or non-profits rather than individual farms. These grants are intended to support broad-scale conservation initiatives, research, and sustainability projects that address significant agricultural challenges like soil health, water quality, and greenhouse gas (GHG) emissions. While individual farms typically do not apply directly for these grants, they can benefit from the funding through partnerships with the organizations that receive the awards.
To receive funding, organizations submit proposals outlining their proposed projects, and funding is awarded based on a rigorous evaluation process that considers the merits of each proposal. If funded, organizations can leverage these public and private funding sources to increase the availability of technical and financial support for farmers and action toward industry goals.
See examples of funding opportunities organization may be eligible for below.
Federal Funding Programs
USDA Natural Resources Conservation Service (NRCS) and Farm Service Agency (FSA) Opportunities
NRCS offers voluntary programs to eligible landowners and agricultural producers to provide financial and technical assistance to help manage natural resources in a sustainable manner. Through these programs the agency approves contracts to provide financial assistance to help plan and implement conservation practices that address natural resource concerns or opportunities to help save energy, improve soil, water, plant, air, animal and related resources on agricultural lands and non-industrial private forest land.
EQIP provides technical and financial assistance to agricultural producers and forest landowners to address natural resource concerns, such as
-
Improved water and air quality;
-
Conserved ground and surface water;
-
Increased soil health;
-
Reduced soil erosion and sedimentation;
The Conservation Stewardship Program (CSP) helps farmers build on their existing conservation efforts while strengthening the operation.
The Conservation Reserve Program (CRP) provides a yearly rental payment to farmers who remove environmentally sensitive land from agricultural production and plant species that will improve environmental health and quality.
TO TAKE ACTION
To get started with NRCS, see your local USDA and NRCS field office.
Common technical assistance includes resource assessment, practice design, and resource monitoring. Applications for EQIP financial assistance are accepted throughout the year. Specific state deadlines are set for ranking and funding. If your application is ranked and selected, you will enter into a contract with NRCS to receive financial assistance for the cost of implementing conservation practices. Payment rates for conservation practices are reviewed and set each fiscal year.
USDA Rural Development (RD) Opportunities
USDA Rural Development operates over fifty financial assistance programs for a variety of rural applications. RD Energy programs offer funding to complete energy audits, provide renewable energy development assistance, make energy efficiency improvements and install renewable energy systems. RD has programs that help convert older heating sources to cleaner technologies, produce advanced biofuels, install solar panels, build biorefineries, and much more. USDA Rural Development is at the forefront of renewable energy financing, with options including grants, guaranteed loans and payments.
The program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers may also apply for new energy-efficient equipment and new system loans for agricultural production and processing.
The Value-Added Producer Grant (VAPG) program helps agricultural producers enter value-added activities to generate new products, create and expand marketing opportunities, and increase producer income.
TO TAKE ACTION
Find the state office's contact information and speak to a program specialist before attempting to fill out any forms or applications.
-
For REAP applications, consider talking with a Rural Development Energy Coordinator before attempting to fill out any forms or applications.
-
For VAPG applications, consider talking with a local Business Programs Specialist.
State Programs
Many states have started their own state programs that provide grants, loans and other financial assistance to support conservation practice implementation. State programs tend to address regional priorities such as air quality, water quality, and water conservation.
TO TAKE ACTION
Every state program differs. Visit state-specific programs to learn more.
County and Watershed Programs
Some funding programs are administered at a hyper-local level. These programs are typically tailored to address specific regional priorities, making them highly relevant to local needs.
-
Soil and Water Conservation Districts: Certain states allocate funds to counties for distribution to farmers through their Soil and Water Conservation Districts to support the implementation of conservation practices. Many districts also obtain and distribute grant funding to farmers in their region.
-
Non-Profits: Small agricultural non-profits and watershed organizations often provide grant funding to farmers within their regions.
Staff at these organizations can be invaluable partners in conservation efforts, offering personalized guidance and support. They often have the time and expertise to walk farmers through available options and opportunities, helping them to leverage additional funding from federal and state sources.
TO TAKE ACTION
The FARM Conservation Practice Resource aggregates information about many federal, state, and country conservation funding programs.
Local Soil and Water Conservation Districts serve as valuable resources for information on regional funding options and opportunities. These districts typically offer detailed guidance on the programs available within a specific area and assist in navigating the application process.
This is a database of financial and technical resources that are currently available for producers in the US. It contains information from government, non-profit, extension, state planning tools, and many other relevant financial or technical assistance providers and resources. Financial resources include grants, cost-share, loan programs and other incentives available.
Competitive Grants
Competitive grants focused on agriculture sustainability are often designed for larger organizations or non-profits rather than individual farms. These grants are intended to support broad-scale conservation initiatives, research, and sustainability projects that address significant agricultural challenges like soil health, water quality, and greenhouse gas emissions. While individual farms typically do not apply directly for these grants, they can benefit from the funding through partnerships with the organizations that receive the awards.
To receive funding, organizations submit proposals outlining their proposed projects, and funding is awarded based on a rigorous evaluation process that considers the merits of each proposal. If funded, organizations can leverage these public and private funding sources to increase the availability of technical and financial support for farmers and action toward industry goals.
There are three annual Conservation Innovation Grants funding opportunities. CIG Classic grants support the early-stage development and piloting of new tools, practices and technologies. CIG On-Farm Conservation Innovation Trials (On-Farm Trials) support more widespread adoption and evaluation of innovative conservation approaches in partnership with agricultural producers. State CIG Classic
support early-stage development and piloting of new tools, practices and technologies.
The USDA Regional Conservation Partnership Program (RCPP) is a partner-driven approach to conservation that funds solutions to natural resource challenges on agricultural land. RCPP projects fall under two different categories: RCPP Classic and RCPP Alternative Funding Arrangements (AFAs).
Various Regional Programs award competitive grants through programs to protect and conserve fish, wildlife, plants, and habitats. NFWF funds technical assistance and innovative financial incentives for agricultural producers to make operational improvements that benefit wildlife and improve soil health and water quality.
TO TAKE ACTION
To learn more about competitive funding grants, see the handout linked below.
To see open opportunities for federal grants, see https://grants.gov.
Carbon Markets and Credits
Insets and Offsets
As countries around the world urgently seek to address climate change, carbon markets provide an option to accelerate the pace of decarbonization while offsetting the costs of reducing GHG emissions. These markets offer a key tool for countries and companies to mobilize the necessary resources to achieve climate goals by providing a flexible and economically viable pathway to reducing emissions.
A carbon market facilitates the buying and selling of carbon offset credits between entities. By converting emission reduction projects into tradable assets, buyers can pursue cost-effective ways to reduce emissions or meet a climate target. Carbon markets suffer from a lack of clarity because there is no unifying international market or established governance structure that guides carbon markets to ensure they function as intended.
See Learning Hub Content for More Information
Introduction to Carbon Markets