TL/DR –
Louisiana farmer David Smith wanted to expand the use of cover crops to improve soil health but couldn’t afford the costs due to low commodity prices and high input costs in the current agricultural economy. Smith considered applying for a U.S. Department of Agriculture Natural Resources Conservation Service program that subsidizes the cost of seeds. However, these programs have insufficient funds to meet demand, with the number of applicant farmers vastly outnumbering the available funds, and the federal government’s failure to honor contracts could damage trust in these programs.
Exploring Conservation Farming Methods
David Smith, a corn and wheat farmer from DeRidder, has been exploring the idea of implementing cover crops over large-scale acreages on his farm. His aim is not profit, but to enhance the quality of his soil.
To offset the high costs of implementing these changes amidst a challenging agricultural economy, he considered a program by the U.S. Department of Agriculture Natural Resources Conservation Service (USDA NRCS). This initiative helps farmers identify operational conservation concerns and ensures resource availability for future generations.
Funding and Support for Farmers
According to the Policy Design Lab, Louisiana farmers were projected to receive about $363 million from 2025 to 2031 via EQIP, CSP and other programs.
These funds, supplemented by the Inflation Reduction Act introduced by former President Joe Biden, allocated nearly $20 billion over five years to USDA conservation programs, with a focus on climate-friendly initiatives.
These programs support projects that improve water quality and retention, reduce soil runoff, and enhance soil health. This, according to Michael Deliberto, Associate Professor in Agricultural Policy at LSU, leads to improved farming efficiency.
Farmers Relying on Conservation Programs
The demand for these programs far exceeds available funds. In 2023, Louisiana received $25 million in EQIP funds and $28 million in CSP distributed over 825 contracts, while over 3,700 farmers applied.
These programs have become crucial for incentivizing the improvement of Louisiana’s farmland. With rising costs and an uncertain future, farmers may delay or abandon land improvements. Deliberto highlights the benefits of these practices, especially for new, underserved, and veteran farming operations.
Trust Erosion with Contract Breaches
While Smith did not enter a contract for his cover crops, other farmers have made improvements to their land expecting reimbursement. John Coppess, a professor at the University of Illinois, warns that the federal government’s failure to meet these contracts could erode trust in the USDA and government programs.
The exact amount owed to Louisiana farmers is unclear, but EQIP alone has already committed over $1 billion for fiscal year 2024. On Feb. 20, the USDA announced the release of $20 million in IRA funding for contracts under EQIP, CSP, and the Agricultural Conservation Easement Program. This figure represents just 0.35% of the NRCS’s $5.7 billion budget.
Looking Forward
Smith, a NRCS conservation project veteran, believes the funding freeze will pass and be restored. He stresses the importance of the government honoring their contracts with farmers.
“If I was expecting them to pay a certain amount, because they said they would, and then someone says, ‘No’. I would have a problem with it. That’s why we have a contract,” Smith said.
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