By Rebekah Jones

STATEWIDE, Iowa – March 28, 2026 – Only about one in five Iowa NRCS applications received conservation funding in 2025, according to NRCS data for three of the most popular farmer programs. Those programs pay for conservation practices like cover crops, prairie, and grazing infrastructure.

Why it matters

• New adopters of conservation often rely on NRCS financial support to install expensive conservation like wetlands or to try sometimes risky practices like cover crops.

Demand grows, funding shrinks

In 2025, NRCS was one of many federal departments that had cuts to Biden-era Inflation Reduction Act Funding

• That led to a 32% decrease in conservation obligations compared to 2024 (obligate means set aside money for project contracts)

Zooming out

Historically, federal funding has accounted for about half of the nation’s conservation spending (NWFF report). 

Zooming in

Iowa had a huge year in 2025 for the Regional Conservation Partnership Program (RCPP). Though RCPP is a federal program, states don’t get RCPP funding unless project partners apply for RCPP projects.

• State Conservationist Jon Hubbert says that this shows the power of Iowa partners in conservation.
• We say – “We see you. Keep it up!”

What’s next: Any “new” money on the horizon?

Regenerative Ag Pilot Program – The Trump administration announced a new USDA program, the Regenerative Ag Pilot Program. This is not a new infusion of funds, but a repurposing of NRCS funding. Funding will come from 25% of EQIP funding and 25% of CSP funding.

• This program is highly focused on soil health. Farmers who sign up will need to do a whole farm assessment with soil testing before and after in-field management changes.

2026 Farm Bill – A new Farm Bill is still being negotiated. NRCS programs rely heavily on Farm Bill funding, especially without the Inflation Reduction Act. The Farm Bill pays for $8 billion in conservation projects each year.

• Some pieces of the farm bill were included in the Big Beautiful Bill. But not the Conservation Reserve Program (CRP) – the most popular conservation program in Iowa.

45Z Clean Fuel Credit – 45Z, originally enacted in the Inflation Reduction Act and later updated in the Big Beautiful Bill, is also still being negotiated.

What is 45Z:

• 45Z creates a clean fuel credit that rewards ethanol producers for low carbon intensity scores
• They can lower their carbon intensity by buying grain from producers who use regenerative practices (cover crops, no-till, etc)
• The expectation is that farmers will get a premium for using conservation.

What’s that in dollars and cents? According to this article, an average CI improvement of 18 points equates to the following for ethanol producers…

• $1.08/bushel of corn
• $227/acre
• $3 billion across Iowa’s corn acres

Farmers will want to prepare by having strong record keeping and transitioning now to conservation practices. You are not penalized for being an early adopter.