IRA Section 21001 – Climate Smart Agricultural Conservation Investments

Section 21001 of the IRA appropriates to the U.S. Department of Agriculture (“USDA”) funding to carry out the following programs under the Food Security Act of 1985:

1) for the Environmental Quality Incentives Program, $8.45 billion;
2) for the Conservation Stewardship Program, $3.25 billion;
3) for the Agricultural Conservation Easement Program, $1.4 billion;
4) for the Regional Conservation Partnership Program, $4.95 billion.

The funding is to be made available to USDA in yearly allocations, starting in fiscal year 2023 and ending in fiscal year 2026. In using the funding, the USDA must prioritize proposals and projects that reduce methane or greenhouse gas emissions, directly improve soil carbon or reduce nitrogen losses, or capture or sequester greenhouse gas emissions associated with agricultural production. The USDA must also prioritize projects that mitigate or address climate change through the management of agricultural production, including by reducing or avoiding greenhouse gas emissions.

The USDA shall not enter into any agreement that extends beyond, or under which any payment could be made after September 30, 2031. The USDA is also prohibited from using any other funds available to the Department to satisfy obligations under this section.