
Cost Share 101 | IAWA
Cost share doesn’t have to be confusing. We ‘ve compiled resources to help you find financial assistance for projects and practices on your farm.
What is Cost Share?
Rewarding Conservation Adoption
Cost share is a payment to farmers and landowners to cover all or part of the costs of conservation practices. You might also hear this referred to as an incentive or payment program.
There are many purposes of cost share depending on the practice.

Pay for the cost of new management practice like cover crop seed and application.

Mitigate the yield risk or equipment cost of trying something new like strip-till or no-till.

Pay for the installation of land improvements like wetlands, bioreactors, or prairie.

Incentivize change that would not otherwise happen.
Most Common Types of Cost Share Programs
Click through to learn about each type. Conservation is a long-term investment, but you don’t have to do it alone. Cost-share programs help offset the expenses of implementing practices that reduce runoff, improve soil health, and keep nutrients where they belong.
what they are
Federal cost share is funded by USDA, EPA, or other government agencies. There is an alphabet soup of acronyms in this category like RCPP, ACEP, EQIP, and more. You can usually find these programs by going to your local NRCS office.
what to look out for
The USDA has a lot of programs for different kinds of conservation practices. Be sure to ask questions like:
- How long is the contract and can I cancel?
- What does the sign-up process look like and is it competetive?
- If I sign up for this program, can I use other programs in the future?
pros and cons
Often times, federal cost share programs offer the largest cost share per acre. For example, the RCPP program can offer up to 3 times as much as state or private programs. However, it can take longer to sign up, and applications are competetive based on things like your watershed or how much funds are in the program.
how to sign up
Sign up at your local NRCS office.
What they are
State cost share comes from the Iowa Department of Agriculture and Land Stewardship and Iowa Department of Natural Resources. One of the most popular you’ve heard of is the Water Quality Initiative. You can read WQI reports here for a good overview.
what to look out for
Especially when it comes to cover crops, state dollars can be used up quickly every year. It’s important to get signed up sooner rather than later. The state also recognizes several priority watersheds where there are bigger incentives available. Be sure to ask if you are in one of them!
pros and cons
State programs are often easier to sign up for than federal programs. They also stack nicely with private programs. Most offices can help you quickly, but it depends on what county you live in. Some people may not want to utilize public dollars.
what they are
Carbon programs are privately funded by companies who are trying to lower their environmental impact. How it works: Farmers reduce their carbon footprint. A middleman tracks the impact. Companies purchase the carbon credit.
WHAT TO LOOK OUT FOR
It’s worth doing research on the program that you are signing up for to better understand who is purchasing their carbon credits and how strong that relationship is. You might want to understand if it’s an inset program or an offset program and if they also use any public dollars.
PROS AND CONS
Some farmers might prefer private funding instead of public. Each carbon program will have different pros and cons, so it’s up to you to research.
what they are
Some programs are 100% privately funded such as the Iowa Seed Corn Cover Crop Initiative. There aren’t many of these out there, but they do exist.
what to look out for
There are some programs out there that receive both public and private funding. It’s important to know where your funding comes because it impacts what programs you can stack or sign up for in the future. If you are looking into a private program, be sure to ask where the funding is from, and if it will impact your participation in future programs.
pros and cons
Private funding often removes the hassle of working with a government office or on government timelines. You can also stack it on top of public funding. However, the funding amount is often smaller or restricted. For example, a private program might require you to use that companies product or data software. This is something you can always ask about before signing up!
Partner Spotlight: Iowa Corn
Information to Help Farmers Make Decisions
Iowa Corn has developed Grower Guides to help inform Iowa farmers about topics such as carbon programs, carbon intensity scores, and protecting your farm data when enrolling in programs.

What Cost Share Can Pay For:
Cost-share programs help take the financial burden off farmers by covering part of the costs of conservation practices. From planting cover crops to installing bioreactors, these funds support improvements that enhance soil health, reduce nutrient loss, and protect water quality.
In-field practices
- Cover crops
- No-till
- Nutrient management
- Grassed waterways
- Drainage water management
Edge-of-field practices
- Bioreactors
- Saturated buffers
Land use changes
- Wetlands
- Oxbows
- Prairie
- Prairie strips
How to choose the right cost share program for you:
With so many cost share programs available, choosing the right one can feel overwhelming. The key is to start with your farm’s unique needs — whether it’s improving soil health, reducing runoff, or enhancing water management. By matching your goals with the right funding opportunities, you can maximize both financial support and conservation impact.
*If these steps feel too overwhelming, you can also start by contacting a conservation agronomist. They’ll walk you through the process and help you meet your goals!
1. Define Your Goals
What are you trying to achieve? Is it soil health, erosion control, or increasing organic matter? That sounds like a job for cover crops. What does the cost share need to cover? Pay for seed costs, application costs, or mitigate risk?
2. Consider Your Needs
Based on your farm’s goals, what is most important for you? If you need flexibility, you should look for programs with shortest contracts. If you are short on time, you want to consider programs that are easiest to sign up for.
3. Narrow It Down
For cover crops and other in-field management, use IAWA’s Cost Share Compare tool to filter through programs that meet your needs. Pick one or two that you want to learn more about.
4. Ask Questions
Reach out to a program representative to learn more. This is where you need to ask for the details you can’t find online. We have a list of suggested questions below if you’re not sure where to start.

Cost share tools
Where to start when there are many options
There are millions of dollars out there for on-farm improvements. Where do you start? There are two helpful tools out there to help you compare programs and make the best decisions for your farm.
Costsharecompare.com is an IAWA-built online tool that allows you to filter and search programs in Iowa that specifically cater to in-field practices like cover crops and no-till or reduced tillage. Connector.ag is a nationwide finder for cost share for any type of conservation practice.

10 Questions To Ask Before You Sign a Cost Share Agreement
Frequently Asked Questions
Why Do Many Programs Only Reward New Cover Crop Users?
We don’t make the rules, but we do get this question a lot. Most (but not all) programs are created to motivate change that would not otherwise happen without program incentives. Carbon markets and USDA-funded programs are two examples of this.
With carbon markets, private companies pay farmers to reduce environmental footprint so the company can report improvements in sustainability. They can only report improvements when there’s a change in the status quo. Carbon payments are in the form of offsets or insets. An example of an offset would be a hotel company that has inevitable energy use for laundry. They pay farmers to offset the hotel’s energy use because they can’t reduce their own. An example of an inset carbon credit would be a soda company that can reduce environmental impact through the farmers in their own supply chain who provide their corn syrup.
USDA-funded programs are also incentivizing change for environmental benefit. In order to improve water quality, more farmers need to plant cover crops in more acres. So to make limited cost share funding go further, USDA pays for those new acres that otherwise wouldn’t be protected by cover crops. The ultimate goal is outcomes like cleaner water and air and erosion prevention.
Can you “Stack” Programs or Benefits?
In some cases, yes. But you need to be careful to not “double dip” from the same pot of money – this can have serious repercussions including repaying the cost share. Generally you can stack public dollars with private dollars. We have a Program Stack Guide explaining how this works.
Should I Wait it Out for New Programs and Opportunities That Might Pay More in The Future?
New programs will come and old programs will go. It’s hard to say exactly how cost share programs will change. We think that choosing a cost share program is like buying a home – conditions are never perfect, but you can make the best choice at the time you need it. Generally, you should aim to commit:
- When prices and interest are in your favor.
- When you need it
- When you find the right fit.

Check out ISA’s 2024 Insights Report, which includes a helpful guide to cost share on page 22.

