Building Resilience Through the Conservation Stewardship Program


$ 25 Million Available for On-Farm Conservation Innovation Grants
A test plot of crimson clover at USDA NRCS Plant Material Center.

One of the key questions lingering over the 2023 farm bill reauthorization is whether Congress will approve a farm bill that builds climate resilience for the countless farmers whose livelihoods depend on it. While there is not one policy solution that can do this alone, the facts show that the U.S. Department of Agriculture’s (USDA) Conservation Stewardship Program (CSP) is perhaps the single most ready-made tool for farmers to voluntarily tackle climate change. 

CSP is an incredibly popular program among farmers. In 2020, more than 20,000 farmers were turned away from the program due to a lack of funding. And in 2022, the number of farmers turned away from CSP due to a lack of funding had grown to over 24,000. In these two years, more than 75% of the farmers that applied to one of USDA’s most effective climate programs were turned away.

In August 2022, Congress passed the historic Inflation Reduction Act (IRA), a landmark piece of legislation that provided nearly $ 20 billion dollars to the United States Department of Agriculture for various programs capable of reducing greenhouse gasses across our food and farm system, including CSP. Through the IRA, CSP received a total of $ 3.25 billion, a crucial investment that is already helping to meet farmer demand and making progress toward climate goals through this high impact program.

But to understand just how impactful IRA spending in CSP is likely to be, this blog post examines both how CSP’s unique programmatic design creates greater conservation benefits than other approaches and how CSP spending in recent years shows a clear track record of delivering support to producers ready to implement climate friendly practices on their farms.

CSP’s Approach to Conservation

Farmers and ranchers are important managers of our shared air, water, and soil resources, and CSP recognizes and rewards this critical role. CSP is an innovative program for working farms, built on the belief that we must enhance natural resources and environmental protection as we simultaneously produce profitable food, fiber, and energy. By providing comprehensive conservation assistance to whole farms, CSP offers farmers the opportunity to earn payments for actively managing, maintaining, and expanding conservation activities like cover crops, rotational grazing, ecologically-based pest management, buffer strips, and the transition to organic farming – even while they work their lands for production.

CSP pays producers to improve, maintain, and actively manage conservation activities already in place at the time of application and to adopt new conservation activities during the life of the five-year contract. Payment amounts are determined by multiple factors, including income forgone, expected conservation benefits, and the costs incurred, which range from planning, design, materials, installation, labor, management, maintenance, and training.

When paying producers for their conservation activities, NRCS groups specific activities into three categories: conservation practices, enhancements, and bundles: 

Conservation Practices are the basic conservation activities that have long been supported by the Environmental Quality Incentives Program (EQIP) and other cost-share programs. Basic conservation practices might prove particularly helpful in meeting the stewardship threshold for additional priority resource concerns. As an example, Cover Crop is a basic Conservation Practice that NRCS compensates producers for in multiple conservation programs.

Enhancements are more substantial interventions and are largely unique to CSP. Conservation enhancements are designed to help farmers exceed the sustainable performance level for a given resource concern. In other words, they are intended to help solve natural resource problems and improve overall conservation performance and build on the good work accomplished by adopting an underlying conservation practice. As an example, NRCS considers the use of multi-species cover crops to improve soil health and increase soil organic matter an enhancement on the basic Cover Crop practice. Producers that implement this enhancement receive additional compensation in CSP.

Bundles are the most integrated elements of CSP supported interventions. Bundles are groupings of conservation enhancements that the agency feels may work well together to provide increased benefits when they are implemented as a group on particular types of farms. Participants who include bundles as part of their CSP contract receive a higher level of financial assistance to encourage the holistic approach to generate additional conservation benefits. As an example, NRCS offers a Cropland Soil Health Management System Bundle. This bundle lets producers choose a cover crop enhancement, a nutrient management enhancement, and pairs them with two no-till practice enhancements, thereby compensating producers that are willing to utilize multiple high value conservation activities together on the same acreage. This holistic approach to conservation generates far greater environmental benefit than implementing any basic conservation practice on its own.

Climate Friendly Spending In CSP

In addition to CSP’s approach of layering and enhancing conservation activities, rather than paying producers to adopt single practices, CSP has a track record of spending a high percentage of program funds on climate friendly practices.

NRCS, as the agency responsible for administering CSP, is also responsible for ensuring the will of Congress is carried out with respect to the IRA, which states that funds provided to CSP can only be spent on activities that mitigate or reduce greenhouse gas emissions. NRCS has generated its list of CSAF practices in order to funnel IRA funding to a subset of established conservation activities it believes accomplish this goal. While NSAC strongly disagrees with a handful of the activities selected for the list, on the whole the NRCS CSAF practices represent a solid set of classic conservation activities that have clear co-benefits for the climate and other pressing resource concerns.

While the CSAF practice list is a recent development at NRCS, nearly all of the activities on the list have existed in some shape or form at NRCS for years. This allows for old contracting data to be compared to activities on the current CSAF practice list. The tables below summarize contract data for fiscal year (FY) 21 and FY22, grouping financial assistance (cost-share provided to producers) by conservation activity codes. Basic practice codes use all numbers (ex. 340), enhancement codes start with an E (ex. E340C), and bundles start with a B (ex. B000CPL24). Table 1 provides a snapshot of how many CSAF conservation activities were funded through CSP contracts in FY21. 

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

CSAF Category Practice NameEnhancement Name Code Financial Assistance Total Percentage of Total CSP Payments
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%

Perhaps the biggest takeaway is that over $ 153 million was delivered to farmers through CSP to implement CSAF conservation activities in FY21. That is more than 30% of the total program funding available. This is a large amount of money working to address climate change on farms, and all the evidence suggests that farmers are prepared to do more if funds are made available. During this same year, less than 20% of farmers applying to CSP were awarded contracts.

The IRA made $ 250 million available in FY23 for this same subset of practices on top of $ 1 billion in Farm Bill funding for CSP. That’s a 25% increase in total funding available, a modest increase for program with such a clear track record of oversubscription. Additionally, with a strong pattern at the agency of spending 30% of available program dollars on CSAF practices, obligating all IRA money for contracts containing these practices should not be a challenge. In fact, if only the $ 250 million of IRA funding was used to support CSAF practices in FY23, then we would see a decrease in proportion of total program dollars obligated to CSAF practices, from 30% to 20%. It is far more likely that with a larger total dollar amount available to address the backlog of program applications, we will see all IRA funding obligated, and an additional portion of Farm Bill baseline funding used to support more CSAF practices.

Table 2 illustrates this likelihood by showing increasing farmer interest in CSAF practices in FY22, with both total dollars spent on CSAF practices and total proportion of spending on CSAF practices rising.

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

CSAF Category Practice Name Code Financial Assistance Total Percentage of Total CSP Payments
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%

The trend of increased spending on CSAF in CSP is clear, with total funds delivered to farmers rising to over $ 234 million in FY23, accounting for 38% of program spending. This shows a significant history of increased funding in CSP translating directly to more CSAF practices on the landscape.  CSP had $ 750 million dollars in FY21 for new contracts and $ 800 million in FY22, and demonstrates the program’s ability to easily obligate the total amount of IRA funding allocated in FY23.

Conclusion

CSP has been successfully funding hundreds of millions of dollars’ worth of CSAF practices for years. Over the life of the 2018 Farm Bill, increased money available in the program has resulted in an immediate increase in the number of CSAF practices funded on farms across the country. Further, the total annual program spending on CSAF practices in recent years is nearly equal to recently obligated IRA funding. All together, these facts show that CSP is perhaps the single most ready-made tool for farmers to voluntarily tackle climate change in the country, and therefore is among the wisest investments made through the IRA. Ensuring this great work is made permanently possible inside CSP in the next Farm Bill needs to be a top priority for all of Congress.

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