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.

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.

woman holding rye cover crop in field
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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.

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.

The USDA has a lot of programs for different kinds of conservation practices. Be sure to ask questions like:

  1. How long is the contract and can I cancel?
  2. What does the sign-up process look like and is it competetive?
  3. If I sign up for this program, can I use other programs in the future?

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.

Sign up at your local NRCS office.

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.

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!

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.

We recommend starting with IDALS or Iowa DNR.

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.

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.

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.

We aren’t familiar with all carbon programs, but we do recommend Soil and Water Outcomes, as it’s a subsidiary of one of our founding members.

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.

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.

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!

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.

Agricultural Carbon Markets: The Basics

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

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!

Cost share tools

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.

Cost Share Compare Hub

How many years is the contract? Can I cancel?

How many years can I renew or re-enroll?

If I sign up, will I be ineligible for other cost share programs?

Are there other payment programs that will stack with this one?

Is there an acre or total payment cap?

How will I be paid, by who, and when?

What are the requirements for me to submit in order to get paid?

If I need agronomy, paperwork, or support, who will be my main contact?

How will my data be used?

For carbon programs: Is this an inset or an offset program?

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.
2024 Insights report

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