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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 HubEQIP & CSP Programs

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Downloadable Resources

A guide to NRCS funding for dairy farms

NRCS EQIP and CSP Program Overview

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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.  

  • Cropland or Farmstead: $7.50/acre/year

  • Pasture: $3.00/acre/year

  • Forestland: $0.50/acre/year

  • 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:

  • Forage harvest to reduce water  quality impacts by utilization of  excess soil nutrients: $5.20 per acre

  • Cover crop to minimize  soil compaction: $12.38 per acre

  • Use of multi-species cover crops to improve soil health and increase soil organic matter: $13.01 per acre

  • 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:

  •  You have not owned or operated your farm for more than 10 consecutive years.

  • You are a minority.

  • 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:

  • HU farmers can qualify for advance payments of 50% or more of the contracted amount.

  • Many contractors are familiar with the NRCS reimbursement process and are willing to adjust payment due dates. 

  • 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. 

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