What is “stacking” and why do it?

Our perspective at IAWA

There are dozens of great programs you can sign up for to receive financial benefits for conservation practices like cover crops. Often you can combine two or even three programs in order to increase your payment.

But, first thing’s first. The point of these programs is to encourage conservation – not to simply make a profit, though that can be a nice perk!

Below are four reasons that IAWA encourages stacking conservation benefits:

Get your tenant or landowner on board

One of the greatest influencers is money. If you need a little extra help to convince your business partner to get on board, splitting large cost share payments can help.

Mitigate risk of yield loss if you’re nervous

In the long term, conservation like cover crops should pay for itself in the form of soil health benefits, weed suppression, etc. But trying something new can takes trial and error. Use cost share to make the risk less risky.

Be able to fully pay for the cost

Most cost share programs offer $25 or less for cover crops. But we know it can cost more than that. Combining two programs means you don’t have to add a new expense right away.

Make sure you can use cover crops in a tough year

Sometimes the farm economy might feel like a roller coaster. In tough years, we don’t want you to pull back on cover crops to reduce expenses. Cost share can get you through.

Lesson 1: Types of cost share

You have to know your funding source

The first step to combining programs is knowing what types of cost share there are.

Federal

Federal funding comes from USDA, EPA, DNR, or other departments. It is often administered through an NRCS office. If you want to really get specific, federal funding comes from the Farm Bill, AMP, or other pots of money.

State

State funding comes from Iowa Department of Ag and Land Stewardship, Iowa DNR, or other state departments. It is often administred through a local SWCD office.

Private (non-carbon)

Private-only funding is rare, but does exist. This is an investment by a business or an organization into a program.

Private (carbon)

It’s important to differentiate carbon funding from others. That’s because you can’t “double sell” carbon credits. This funding comes from large businesses wanting to lower their carbon footprint.

Lesson 2: How funding interacts

In summary, never dip from the same “pot”.

Your best bet is to talk to a conservation agronomist, your local USDA office, local SWCD office, or other experts who can help. As a reminder, the point of combining programs is to encourage conservation – not to simply make a profit, though that can be a nice perk!

What works and what doesn’t

• Will “stack”
• Won’t “stack”
• Examples

funding that will stack

public funding + private funding

You can always combine state or federal funding with private funding. That does not matter if the private funding is from carbon markets or other.

private + private (non-carbon)

Private programs can be combined, but only if they are not carbon market programs. This is because you cannot double-sell a carbon credit. It’s pretty rare to find private programs that are not carbon-related, though.

different acres or different practices

The above rules do not apply if you are looking to get funding for different acres or for a different practice.

funding that WON’T stack

PUBLIC FUNDs + PUBLIC FUNDs

You cannot combine two public funding sources because it is considered “double dipping.” There are a few exceptions were state and federal funding can be combined, though.

carbon funds + carbon funds

You cannot combine carbon market funding. The carbon market is a way for companies to purchase carbon credits from farmers to reduce their carbon footprint. Once a carbon credit has been sold, that impact is claimed and it can’t be sold again.

Examples of cost share stacking

yes

Soil and Water Outcomes Fund + Farmers for Soil Health

RCPP + PFI Cover Crop Incentive

Iowa Seed Corn Initiative + Farmers for Soil Health

no

Soil and Water Outcomes Fund + PFI Cover Crop Incentive

State Crop Insurance Rebate + Water Quality Initiative

RCPP + Water Quality Initiative

Lesson 3: Ask for help

These professionals will take care of you

The last thing you want to do is receive benefits incorrectly and have to pay them back. We recommend these water quality professionals to help you!

Conservation Agronomists

Conservation Agronomists are trained to help you with both sustainability and profitability. That includes cost share.

find a ca

USDA Service Center

NRCS employees are the go-to source for federal funding. They can help you pick the right program and provide technical assistance.

find yours

SWCD professionals

Local SWCDs are often in the same office as the USDA service center, but their expertise is state funding.

swcd info

Cover crop dealers

Cover crop dealers can help you find cost share for cover crops. Sometimes they’ll even help you sign up. PFI has a directy linked below.

cover crop directory