Financial costs remain a significant barrier for growers wanting to implement practices like cover crops and conservation tillage. However, public programs are designed to reduce these barriers and enhance the adoption of conservation practices.

For growers who have yet to adopt these practices, these programs can offer significant incentives to reimburse a percentage of the implementation costs. The options for growers who have already adopted practices are more limited and often less rewarding.

Growers should contact their local offices for the best information on these programs. Your location in North Carolina may affect requirements, considerations, and payments.

While program payments alone may not recover the entire cost of implementing practices, they should be considered alongside on-farm benefits when assessing whether they make sense for your operation. Receiving payments from multiple programs may be possible and can significantly improve the financial incentive.

Producers can receive funding for an individual conservation practice from both a federal and state cost-incentive program. “Stacking” these programs can significantly improve the financial incentive to implement.

Producers in North Carolina should compare the multiple federal programs available and decide which best suits their operations and plans. Currently, there is only one state-funded program in North Carolina.

Beyond public payments, producers may also receive a private incentive payment through one of the several programs currently operating in North Carolina. This would allow them to receive three incentive payments for adopting a conservation practice.

It is important to remember that programs focusing on “new” practices must take effect during the same growing season to remain eligible. This requires additional time and effort for the producer, but the additional financial incentive may be worth the trouble.

NRCS offers several programs that provide technical and financial assistance for producers utilizing conservation practices on their farms. The two primary programs available are the Environmental Quality Incentive Program (EQIP) and the Conservation Stewardship Program (CSP). A practice must address a resource concern to qualify for either of these programs.

Contacting your local NRCS office is the best way to explore these programs, determine your eligibility, and create a conservation plan for your farm. Both programs will rank applicants based on cost-effectiveness, the number of resource concerns addressed, and the length of time resource benefits are expected to last based on each applicant's conservation plan. State and local resource concerns are considered when ranking applicants, so working with your county office is the best way to enhance the likelihood of funding.

EQIP is often preferred for growers looking to implement a new conservation practice. CSP incentivizes growers to continue and enhance conservation practices already implemented. Working with local NRCS experts will help growers understand which program best fits their operation.

NRCS Programs Website

Environmental Quality Incentive Program (EQIP)

EQIP offers technical and financial assistance for working lands, including field crops, specialty crops, organic, confined livestock and grazing, and non-industrial private forest land.

Eligibility

• Control or own the land.
• Land complies with highly erodible land and wetland conservation determination provisions.
• Updated farm records with Farm Service Agency.
• Social security or employer identification number issued by IRS.
• Average gross income less than $900,000

Technical Assistance

• NRCS works one-on-one with producers to develop a conservation plan that outlines conservation practices and activities to help solve on-farm resource issues.
• Producers do not need to be enrolled in a program to access NRCS technical assistance.

Financial Assistance

• Cost reimbursement of up to 75% of NRCS estimated costs for new practice adoption.
• Payments are typically distributed in October of the following year. The farmer will need to bear the initial cost.
• Increased payment rate (up to 90%) and advanced payment option (50% upfront) available for Historically Underserved Producers.
  • Beginning Farmer or Rancher (less than 10 years)
  • Socially Disadvantaged Farmer or Rancher
  • Veteran Farmer or Rancher
  • Limited Resource Farmer or Rancher

Contract Length

• Average: 1 to 5 years

Conservation Practices

• Practice must be new.
• Must address resource concerns.
  • Water and air quality
  • Conserve ground and surface water
  • Soil health
  • Soil erosion
  • Wildlife habitat
• Contact your local NRCS office for the most relevant and up-to-date list of practices and resource concerns.

Contact Information

• Find your local NRCS Office

Program Information

Conservation Stewardship Program (CSP)

The Conservation Stewardship Program (CSP) helps you build on your existing conservation efforts while strengthening your operation.

Eligibility

• Control or own the land.
• Already doing conservation practices on operation.
• Want to expand existing conservation efforts.
• Intend to maintain control of land for at least 5 years.
• Land complies with highly erodible land and wetland conservation determination provisions.
• Updated farm records with Farm Service Agency.
• Social security or employer identification number issued by IRS.
• Average gross income less than $900,000

Technical Assistance

• NRCS works one-on-one with producers to develop a conservation plan that outlines conservation practices and activities to help solve on-farm resource issues.
• Producers do not need to be enrolled in a program to access NRCS technical assistance.

Financial Assistance

• 3 types of payments
  • Annual Contract Payment
    • Payments to maintain existing levels of conservation.
    • Payments to implement additional conservation practices.
  • Supplemental Payments
    • Producers willing to implement a resource-conserving crop rotation, improve an existing resource-conserving crop rotation, or implement advanced grazing management.
  • Minimum Contract Payment
    • Available for most contracts
    • Recently raised to $4,000
• Payments are typically distributed in October of the following year. The farmer will need to bear the initial cost.

Contract Length

• 5-year contract with option for 5-year renewal.

Conservation Practices

• Must address resource concerns.
  • Water and air quality
  • Conserve ground and surface water
  • Soil health
  • Soil erosion
  • Wildlife habitat
• Contact your local NRCS office for the most relevant and up-to-date list of practices and resource concerns.

Contact Information

• Find your local NRCS office

Program Information

The Soy Checkoff, Pork Checkoff, and National Corn Growers Association lead Farmers for Soil Health, which operates in 20 states, including North Carolina. This initiative aims to enhance the adoption of cover crop acreage through financial and technical assistance. To qualify for this program, growers must have corn and/or soybeans in their rotation. The North Carolina Soybean Producers Association runs this program in North Carolina.

This program is designed to be more straightforward for growers, with self-enrollment often quicker than NRCS programs and requiring less documentation. Enrolling in this program will also grant growers access to commodity price premiums through DTN’s Sustainability Marketplace.

Farmers for Soil Health provides modest compensation for growers who have already implemented cover crops. These growers will also have access to potential price premiums through the Sustainability Marketplace for their corn and soy commodities.

Eligibility

• Corn or soybean in rotation for the first year of contract.

• Social security or employer identification number issued by IRS.

• Farm Service Agency Farm, Tract, and Field numbers for each field.

• Valid email address.

Technical Assistance

• Technical Assistance in North Carolina is provided through NC State Extension with the Conservation Agronomy Extension Program.

Financial Assistance

• Transition Incentive Payments

  • New cover crop adoption

  • Year 1: $25/acre

  • Year 2: $15/acre

  • Year 3: $10/acre

• Signing Incentive Payments

  • For growers who have already implemented cover crops.

  • $2/acre

• DTN Sustainability Marketplace

  • Price premiums for corn and soybean commodities.

  • Optional

Contract Length

• 3-year contract

Conservation Practices

• Cover crops

Contact Information

• North Carolina Soybean Producers Association

  • Jeff Chandler

Website

The NCDA&CS program helps address nonpoint source pollution by providing technical and financial assistance through a voluntary, incentive-based program designed to improve water quality by installing various best management practices (BMPs) on agricultural lands directly involved with agriculture production.

Contacting your local soil and water conservation district is the best way to explore this program, determine your eligibility, and create a conservation plan. Applications are ranked based on how well their conservation plan addresses local resource concerns. Districts' priorities are set annually based on natural resource concerns. Working with your local soil and water conservation district office is required for program participation. Funding from this program comes in the form of a cost reimbursement; farmers must bear the initial cost of implementation. Reimbursement is distributed when the installed BMPs are certified as meeting the design specifications.

Eligibility:

• Activities occur on land in agricultural production for three or more years.

• Applicants must demonstrate the farm meets state bona fide farm purposes.

• Practice(s) must result in documented water quality enhancement.

Technical Assistance:

• Soil and water conservation districts work with producers to develop a conservation plan that outlines conservation practices best suited for their operation.

• The district technical staff help design BMPs to established standards and specifications.

Financial Assistance:

• Reimbursement is generally based on 75% of the predetermined average cost of implementing conservation practice. Beginning farmers, limited resource farmers, and EVAD properties can qualify for 90% of the predetermined average cost.

• Reimbursement will only be issued when district staff certify the BMPs were installed as designed to establish stands and specifications.

Contract Length:

• Applicants have up to 3 years to install the contracted practices. Installed BMPs have a required maintenance period of 1-10 years.

Conservation Practices:

• Practices must address a water resource concern in one of the following areas.

  • Agrichemical Pollution Prevention

  • Erosion and Nutrient Management

  • Sediment and Nutrient Management

  • Stream Protection Management

  • Waste Management

Contact Information:

• Find your local Soil and Water Conservation District

Website