A Guide to National Resources Conservation Service (NRCS) Funding for Dairy Farms
Most federal funding for conservation practices is distributed through the USDA Natural Resources Conservation Service (NRCS). This guide will highlight differences between the two largest programs and illuminate how dairy farmers can use them to advance farm goals.
Learning Hub ▶ EQIP & CSP Programs
CONTENT CURRENTLY UNDER DEVELOPMENT

Downloadable Resources
NRCS EQIP and CSP Program Overview

Conservation Stewardship Program
Conservation Stewardship Program (CSP) rewards farmers for both their ongoing conservation efforts and adoption of new, additional conservation enhancements and advanced conservation systems. Over the course of a five year contract, farmers enrolled in the program can receive up to $200,000. The program focuses on field and edge-of-field practices.
The chart below illustrates how program payments are calculated and provides some example of enhancements that are funded through the program.
HOW CSP PAYMENTS ARE CALCULATED
Stewardship Payments
(Existing Activity Payments)
Per Acre Payment
for every acre of land farmer operates (owned or rented)
$900 or more
for current farm stewardship
enhancements
(Additional Activity Payments)
Per Acre Payment
enhancement (or bundle of enhancements) the farmer selects to implement
Annual Payment
Min: $1,500
Max: $40,000
Existing Activity Payments
A farm enrolled in CSP is eligible to receive “exiting activity payments” on all of the land they control (owned and rented), even if the land has varying levels of conservation practice implementation. Farmers are eligible for annual payment for every acre they operate to maintain existing conservation.
See 2023 Existing Activity Payment (EAP) Rates below.
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Cropland or Farmstead: $7.50/acre/year
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Pasture: $3.00/acre/year
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Forestland: $0.50/acre/year
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Associated Agricultural Land (i.e., pivot corners, field edges, etc.): $0.50/acre/year
Enhancement Payments
Enhancement payments are for additional enhancements (or bundles of enhancements) the farmer selects to implement. There is no minimum number of acres. Farmers can select portions of their operation on which to implement enhancements for a portion of the contract. The minimal number of enhancements or acres is based on the conservation activity and how much is needed address to the resource concern(s).
See examples below with 2023 Enhancement Payment Rates:
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Forage harvest to reduce water quality impacts by utilization of excess soil nutrients: $5.20 per acre
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Cover crop to minimize soil compaction: $12.38 per acre
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Use of multi-species cover crops to improve soil health and increase soil organic matter: $13.01 per acre
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Manage livestock access to waterbodies to reduce nutrients or pathogens to surface water: $3.60/foot per acre
Enrollment & Implementation Process
STEP
01
Contact your local USDA service center.
A conservation planner will work with you to determine your eligibility and assist you in completing the paperwork.
STEP
02
Meet with an NRCS planner (on-farm) to identify resource concerns, objectives, and practices.
NRCS (or sometimes your local soil conservation district staff) will assist you in developing a conservation plan.
Eligibility of Rented Ground
Farms can receive payments for land they control through ownership, lease, or informal rental agreements as long as the owner agrees to sign a simple document.
STEP
03
Applications are ranked.
NRCS programs are competitive. You can make the application competitive by talking to your NRCS planner about the ranking criteria and incorporating small practices that address regional priorities. If the application was approved for funding, then you will work with NRCS to finalize the conservation plan,
Are you Historically Underserved?
"Historically underserved" (HU) farmers receive priority funding and higher payment rates. You may be a HU farmer if:
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You have not owned or operated your farm for more than 10 consecutive years.
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You are a minority.
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Your total household income is less than 50% of the county median income.
STEP
04
After the contract is obligated, you begin to implement the practice. NRCS may provide technical assistance to support you.
STEP
05
Practices are verified and certified.
NRCS staff will schedule a farm visit to verify that the practice implementation meets NRCS standards. For larger projects (e.g., manure storage) NRCS will verify interim steps to facilitate interim payments.
STEP
06
NRCS provides payment.
Farmers will typically receive payment via direct deposit shortly after practice verification. Keep in mind that producers do not need to submit receipts and all payments are considered taxable income.
Navigating the “Upfront” funding requirement
The NRCS reimbursement model places the responsibility on farmers to cover the initial implementation costs. To alleviate the financial burden, consider the following tips:
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HU farmers can qualify for advance payments of 50% or more of the contracted amount.
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Many contractors are familiar with the NRCS reimbursement process and are willing to adjust payment due dates.
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Certain non-profit organizations offer upfront payments for practice implementation. In such cases, farmers can agree to an “Assignment of Payment” where the non-profit covers the construction costs and waits for reimbursement from NRCS
Environmental Quality Incentives Program
Environmental Quality Incentives Program (EQIP) practices and payment rates vary substantially from state to state. Farmers are eligible for up $450,000 per Farm Bill cycle. EQIP funds various types of practices, including in-field and edge-of-field practices, energy upgrades, and infrastructure improvements. The chart below provides a few examples of NRCS practices that are popular among dairy farmers. These examples showcase the wide range of practices that farmers can choose from.
Examples of 2023 NRCS Payment Rates
PLANS AND DESIGNS
NRCS funds a wide range of planning documents, which are written by NRCS-certified technical service providers (TSPs) and are prerequisites to many EQIP practices.
Comprehensive Nutrient Management Plan (CNMP)
$3,500 - $11,500* per plan
Irrigation Water Management
$3,000 - $10,000* per plan
Agricultural Energy Management Plan (AgEMP)
$3,000 - $9,000* per plan
IN-FIELD PRACTICES
Farmers can receive annual payments for in-field and edge-of-field practices implementation.
Cover Crop (Single and Multi-Species)
$60 - $75* per acre
Reduced Tillage / Strip Till / No-till
$15 - $20* per acre
Pasture and Hay Planting
$110 - $290* per acre
Irrigation Water Management
$14- $38* per acre
Nutrient Management
$7 - $30* per acre
Gravel Trails and Walkways
$26-$31*/LnFt
Fence (i.e., Electric High Tensile)
$1.50 - $1.90* / LnFt
INFRASTRUCTURE UPGRADE
NRCS provides funding to support the construction of large infrastructure improvements. Qualifying plans are required.
Heavy Use Area Protection (HUAP)
Varies (Up to $450,000)
Waste Storage or Composting Facility
Varies (Up to $450,000)
Waste Separation Facility
Varies (Up to $450,000)
Irrigation Pipeline and Pumping Plant
Varies (Up to $450,000)
ENERGY UPGRADES
NRCS will fund the purchase, installation, or retrofit of certain buildings or equipment to improve energy efficiency. A qualifying AgEMP plan may be required.
Energy Efficient Agricultural Operation
Varies
Energy Efficient Lighting System
$0.28* per sq foot
Irrigation Pumps
Varies
Ventilation and Fans
$800 - $2,000* per fan
* Payment rates are approximations based on 2023 NRCS rates.
Actual payment rates vary significantly from state to state.
Payment Schedules (Rates) by State
Each year, NRCS re-evaluates the amount of financial assistance available for each activity in each state. These evaluations consider the current costs for material and labor within the state and also the fair marketplace compensation for opportunity costs that may arise (e.g., conversion of productive land). If necessary, the amount of financial assistance is adjusted to keep pace with actual costs. See payment schedules for fiscal year 2025.
Key Points
01
Don’t Sweat the Details
NRCS staff will walk you through the entire process from start to finish. They will fill out the application with you (it takes less than an hour!) and work with you to select which program(s) is/are right for you and your farm.
02
Apply (or reapply) in 2024-2026
Congress has set aside an additional $8.45 billion and $3.25 billion for EQIP and CSP, respectively, which then doubles the amount of money available to farmers. If your application was unfunded, consider reapplying in the next few years.
03
Seek out partners to support your application
Non-profits and soil conservation districts collaborate with NRCS and potentially offer additional cost-share.