FAQs: Climate-Smart Agriculture and Forestry Mitigation Activities and Inflation Reduction Act Funding
The Inflation Reduction Act provides historic investments ($19.5 billion) in additional funding to existing conservation programs already popular with producers, like the Environmental Quality Incentives Program (EQIP), Conservation Stewardship Program (CSP), Agricultural Conservation Easement Program (ACEP), Regional Conservation Partnership Program (RCPP) and Conservation Technical Assistance (CTA), to implement climate-smart mitigation activities. Climate-smart mitigation activities can sequester carbon and reduce key greenhouse gas emissions like nitrous oxide, methane, and carbon dioxide. These activities have also been, and will continue to be, funded by the farm bill.
General information about agriculture’s role in mitigating climate change can be found in a recently developed brochure: The Role of Agriculture in Climate Change Mitigation.
1. What is the significance of Climate-Smart Agriculture and Forestry Mitigation Activities for implementing Inflation Reduction Act funding through the Environmental Quality Incentives Program and the Conservation Stewardship Program?
The conservation activities (conservation practice or enhancement) on the NRCS Climate-Smart Agriculture and Forestry Mitigation Activities List provide climate change mitigation benefits (reduction in greenhouse gas emissions or increase in carbon sequestration). These activities are eligible to receive funding through the Inflation Reduction Act because, based on scientific literature, they are expected to directly improve soil carbon; reduce nitrogen losses; or reduce, capture, avoid, or sequester carbon dioxide, methane, or nitrous oxide emissions associated with agricultural production. Inflation Reduction Act funds may also be used for facilitating practices that support the management or the function of Climate-Smart Agriculture and Forestry Mitigation Activities.
2. How does the Natural Resources Conservation Service estimate the impact of Climate-Smart Agriculture and Forestry Mitigation Activities?
USDA’s Natural Resources Conservation Service (NRCS) uses its conservation practice activity data to quantitatively estimate the potential mitigation benefits of an average implementation of a Climate-Smart Agriculture and Forestry Mitigation Activity and determine the potential impact of these Inflation Reduction Act investments. These estimations include the use of coefficients derived from the COMET-Planner meta-model, as well as coefficients developed based on other available quantification methodologies, guidance, and protocols, including the updated USDA Quantifying Greenhouse Gas Fluxes: Methods for Entity-Scale Inventory and GHG inventory guidance from the UN's Intergovernmental Panel on Climate Change. A summary of the estimation approach and key assumptions used in these estimates is available in the NRCS Conservation Practices and Greenhouse Gas Mitigation Information dashboard NRCS will continue to update this Dashboard as additional literature and data become available. NRCS will continue to update this Dashboard as additional literature and data become available.
3. What is the process NRCS uses for adding, removing, or updating practices on the Climate-Smart Agriculture and Forestry Mitigation Activities List?
Each year, NRCS considers and evaluates the practices on the Climate-Smart Agriculture and Forestry Mitigation Activities List. Throughout the year, NRCS receives feedback from partners and staff, which is used to identify practices for consideration to be removed, added, or updated. Using this feedback, the NRCS Climate Office works with subject matter experts, including the NRCS National Discipline Leads (such as the National Agronomist, National Environmental Engineer, and National Air Quality Specialist), to review feedback and literature and prioritize practices that would be most suitable for consideration. Evaluation teams, composed of employees across NRCS and a non-NRCS USDA expert, evaluate the practice based on the identified criteria and available scientific literature for the practice. Climate-Smart Agriculture and Forestry Mitigation Activities are evaluated against two main criteria:
- Is the activity expected to result in a direct impact on net greenhouse gas emission reduction or removal within a given scope as supported by the scientific literature? This is in alignment with IRA requirement that eligible activities “directly improve soil carbon, reduce nitrogen losses, or reduce, capture, avoid, or sequester carbon dioxide, methane, or nitrous oxide emissions, associated with agricultural production.”
- Does NRCS have a science-based approach for quantitatively estimating mitigation benefits using available NRCS activity data, to support reporting of outcomes associated with Climate-Smart Agriculture and Forestry Mitigation Activities?
All activities on the list must meet criterion 1 above, which is a requirement in the Inflation Reduction Act. Most activities meet both criteria, and NRCS continues to work on quantification approaches for those activities that do not currently meet criterion 2.
Evaluation team recommendations for removals, additions, or updates are then presented to NRCS leadership for final approval for the next fiscal year. The NRCS Climate Office will continue to refine this approach to be sure it is both science-based and incorporates locally led feedback received through the Local Work Group process, outlined here LWG Guidebook, where possible. The list is updated each fiscal year.
4. Why does NRCS no longer list certain practices as “provisional,” as was done in FY23 and FY24?
In FY23 and FY24, some practices were designated as “provisional” because they were expected to provide mitigation benefits (they met criterion 1, per the requirement of the Inflation Reduction Act). However, quantification of those benefits had not yet been incorporated into NRCS reporting activity data (i.e., did not meet criterion 2 at the time). This led to confusion. To avoid further confusion, the designation of “provisional” will no longer be used for FY25 and beyond, because all listed practices are expected on average to provide a direct impact resulting in net greenhouse gas emission reduction or removal as supported by the scientific literature. NRCS is continually working to improve its ability to quantitatively estimate the benefits of its Climate-Smart Agriculture and Forestry Mitigation Activities. Additional information about each listed practice can now be found on the NRCS Conservation Practices and Greenhouse Gas Mitigation Information dashboard. NRCS will continue to update this dashboard as additional scientific literature and data become available.
5. What does it mean if a practice is listed with a specific implementation?
This means the practice is considered a mitigation activity only when implemented in a specified way. These are described in the Climate-Smart Agriculture and Forestry Mitigation Activities list.
6. Under what circumstances will Inflation Reduction Act funds be used to fund livestock manure management activities through the Environmental Quality Incentives Program and the Conservation Stewardship Program?
Manure management is a major source of methane emissions within the agricultural sector and is therefore an important opportunity for significant climate change mitigation. When compared to a typical liquid storage system or uncovered lagoon, the identified practices on the Climate-Smart Agriculture and Forestry Mitigation Activities list are expected to provide emission reductions from methane. Livestock manure management activities can only be funded through Inflation Reduction Act for specific purposes:
- To implement a Composting Facility (Code 317), which can lead to reduced methane emissions from the increased higher temperatures and more aeration during composting.
- To implement a Compost-Bedded Pack system, under the practice Waste Storage Facility (Code 313), which can lead to reduced methane emissions resulting from the added carbonaceous bedding material and regularly tilling to promote composting.
- To install a cover to capture biogas from anaerobic lagoons or liquid storage systems, under the practice Roofs and Covers (Code 367), which can lead to reduced methane emissions as biogas is captured and either flared or used as a natural gas substitute.
- To install an Anaerobic Digester (Code 366), which can reduce emissions by capturing biogas and combusting it for energy generation or flaring it.
- To install a Waste Separation Facility (Code 632), which removes solids from manure streams to potentially reduce methane generated from the storage lagoon.
7. Under what circumstances will Inflation Reduction Act funds be used to fund irrigation activities through the Environmental Quality Incentives Program and the Conservation Stewardship Program?
Several irrigation practices were added with the expectation that when implemented in a specific way, they can result in energy savings that, in most cases, would lead to greenhouse gas emission reductions. To provide the expected emissions reductions, these practices are only applicable when changes are made to an existing system that is powered by a fossil fuel-based energy source. The practices are not to be used for implementation of a new irrigation system and must not result in increased irrigated acres. Planners must consider local energy sources when planning the practice as a Climate-Smart Agriculture and Forestry Mitigation Activity to ensure that the existing system is powered by a fossil fuel-based energy source.
8. Is Prescribed Burning (Code 338) used on grasslands considered a CSAF Mitigation Activity?
As a CSAF Mitigation Activity, Prescribed Burning should only be applied to manage fire hazards on forested ecosystems. While there is some evidence that points to potential mitigation benefits on grasslands under certain circumstances, due to wide variation in site-specific conditions like precipitation and moisture that would impact any potential mitigation benefits and a limited understanding of emissions from grassland prescribed burns compared to naturally occurring fire scenarios, grasslands are excluded at this time. Other instances of Prescribed Burning remain eligible under farm bill funding for FY25 and may also be included as a facilitating practice to support the implementation of other CSAF Mitigation Activities. NRCS will continue to review the literature to identify potential opportunities and parameters where Prescribed Burning on grasslands may provide mitigation benefits for consideration in FY26.
9. What is the difference between climate change mitigation and climate change adaptation and what can the Inflation Reduction Act fund?
Climate change mitigation addresses the root causes of climate change, while adaptation focuses on resilience to the consequences of climate change. Mitigation is making the impacts of climate change less severe by preventing or reducing the emission of greenhouse gases into the atmosphere. Adaptation is the process of adjusting to the current and future effects of climate change. While the Inflation Reduction Act requires funds to be used for climate change mitigation activities, some of those same practices may also support adaptation. Through its conservation programs, NRCS also provides support to producers to help them adapt to the climate change impacts they face, such as increased drought, extreme weather, or seasonal shifts.
10. Why aren’t all conservation activities eligible to receive Inflation Reduction Act funding through the Environmental Quality Incentives Program and the Conservation Stewardship Program?
While all conservation activities provide important benefits to address natural resource concerns, not all practices provide the climate change mitigation benefits required by the Inflation Reduction Act. Under the law, Inflation Reduction Act funds can only be used for conservation activities that have climate change mitigation benefits. However, Farm Bill funds can be used for any conservation activities, including those with climate change mitigation benefits. NRCS state offices determine which funding pool (Inflation Reduction Act or Farm Bill) to use for each conservation contract based on local needs.
11. Can Climate-Smart Agriculture and Forestry Mitigation Activities only be implemented using Inflation Reduction Act funds?
No. All conservation practices and activities are eligible to receive funding through NRCS’s conservation programs. The Inflation Reduction Act provides additional funding to these programs to be used only for prioritizing climate-smart mitigation activities. However, Climate-Smart Agriculture and Forestry Mitigation Activities could also be funded through existing Farm Bill funding through these programs. This results in more climate-smart mitigation practices being implemented. Since NRCS receives far more applications than there is available funding, Inflation Reduction Act funds are helping more customers meet their conservation goals while also helping mitigate climate change.
12. Does the Climate-Smart Agriculture and Forestry Mitigation Activities List apply to the Regional Conservation Partnership Program (RCPP) projects funded by the Inflation Reduction Act?
According to the Inflation Reduction Act, RCPP is directed to prioritize projects with climate change mitigation benefits. The RCPP projects funded by the Inflation Reduction Act are selected because of their potential climate mitigation benefits and should include listed activities that are expected to provide those benefits. While RCPP contracts are not required to exclusively use the Climate-Smart Agriculture and Forestry Mitigation Activities List, use of listed activities is encouraged to support the goals of the Inflation Reduction Act. For RCPP easements, NRCS will prioritize forest, wetland, and grassland easements that protect land and habitats that are or will be in permanent vegetative cover, are located on soils high in organic carbon, or will be managed to contribute to carbon sequestration.
13. Does the Climate-Smart Agriculture and Forestry Mitigation Activities List apply to the Agricultural Conservation Easements Program (ACEP) projects funded by the Inflation Reduction Act?
Under the Inflation Reduction Act, NRCS is directed to enroll easements that best reduce greenhouse gas emissions. Inflation Reduction Act funds are used to enroll both the ACEP-Wetland Reserve Easements (WRE) and the ACEP-Agricultural Land Easements (ALE). Lands enrolled through ACEP-WRE with Inflation Reduction Act funds are restored and managed to reduce greenhouse gas emissions, though the measures implemented may or may not be specifically on the CSAF Mitigation Activities List. Lands enrolled through ACEP-ALE with Inflation Reduction Act funds are protected from conversion to more intensive uses to avoid increased greenhouse gas emissions. Landowners with ACEP-ALE easements may apply to EQIP to implement conservation practices using the CSAF Mitigation Activities List.
For ACEP-ALE enrollment, NRCS currently prioritizes Inflation Reduction Act funding to purchase easements on:
- Grasslands at a high risk for conversion to non-grassland uses to protect valuable soil carbon stores,
- Agricultural lands under threat of conversion to non-agricultural uses, and
- State-specific priorities including rice cultivation on subsiding highly organic soils.
For ACEP-WRE enrollment, NRCS currently prioritizes Inflation Reduction Act funding to purchase and restore easements on:
- Land with soils high in organic carbon,
- Eligible lands that will be restored to and managed as forests like bottomland hardwood forests,
- Eligible lands in existing forest cover that will be managed as forests, and
- Several geographically specific priorities (i.e., former cranberry bogs, wet meadows, and ephemeral wetlands in grassland ecosystems).
14. Why was Upland Wildlife Habitat Management (Code 645) removed from the Climate-Smart Agriculture and Forestry Mitigation Activities List in fiscal year 2024?
Upland Wildlife Habitat Management (Code 645) was previously included as a Climate-Smart Agriculture and Forestry Mitigation Activity due to a nominal mitigation benefit associated with improvements to and establishment of vegetation plantings for improving upland wildlife habitat. Currently, this practice is limited to management activities that are not included in other practices, such as habitat monitoring and management. As such, it would currently not be used to establish vegetation (other than seasonal, typically annual cover). While Upland Wildlife Habitat Management (Code 645) may guide the implementation of certain other practices, it is not the practice through which implementation occurs and to which mitigation benefits could be attributed. Vegetation establishment components previously under Upland Wildlife Habitat Management are currently implemented instead under Wildlife Habitat Planting (Code 420) or Conservation Cover (Code 327), which are currently recognized as Climate-Smart Agriculture and Forestry Mitigation Activities.
15. How can the public provide input on what should or should not be considered Climate-Smart Agriculture and Forestry Mitigation Activities for fiscal year 2026?
NRCS collects internal and external input throughout the year. Input can be provided in several ways – locally to the Local Working group (a subcommittee of the State Technical Committee), at the state level to the State Technical Committee, and nationally via formal requests for information or by emailing the NRCS Climate Office at SM.FPAC.NRCS.CLIMATE@usda.gov.
Although input is collected throughout the year, input for the fiscal year 2026 list should be provided no later than April 25, 2025.
16. Where can I go for more information?
As with any conservation assistance, visit your local USDA Service Center to meet one-on-one with an NRCS conservation planner. Information about the Inflation Reduction Act is available on the NRCS Inflation Reduction Act page at nrcs.usda.gov/about/priorities/inflation-reduction-act. More details about climate-smart activities – including short videos featuring producers implementing these activities, as well as the list of activities and descriptions – are available on the NRCS Climate-Smart Mitigation Activities page.