Healthy Soils Financial Incentives
States may allocate funding towards financial incentive and grant programs supporting regenerative practices. Commonly paired with other forms of state assistance, these programs encourage and facilitate the voluntary adoption and continued practice of climate-friendly farming methods. Incentives may include reduced crop insurance premiums, property tax exemptions, or direct financial assistance through grants or cost-share programs. Another form of financial assistance is providing per-acre rewards from available state funding to farmers who employ soil health practices.
Targeted practices are those which have been identified — often by organizations, state agencies, or task forces — to promote soil health, water quality, biodiversity, carbon sequestration, and, ultimately, crop yields. Common soil health practices include implementing conservation tillage, planting cover crops, utilizing crop rotation, and minimizing the use of chemicals and fertilizers.
Key Resources
State Healthy Soil Policy Map
Report: Soil Health
Financial Incentives for Agricultural Carbon Sequestration
Agricultural Soil Carbon Credits: Making sense of protocols for carbon sequestration and net greenhouse gas removals
Model Rules
LPDD Model Law: State Healthy Soils Legislation
Model States
Illinois
The Sustainable Agriculture Grants Program provides grants to implement conservation practices that reduce soil loss and improve soil health.
The Cover Crop Premium Discount Program offers premium discounts to promote additional acres of cover crops that are not covered by other state and federal program incentives.
Funds in the Partners for Conservation Fund and the Partners for Conservation Projects Fund may be used to provide capacity grants to support soil and water conservation districts in implementing soil health programs.
The Illinois Healthy Soils Initiative promotes voluntary and incentive-based soil health efforts.
Oklahoma
The Soil Health Implementation Program provides technical assistance and financial incentives to encourage the adoption of soil health practices among agricultural producers.
The Conservation Cost-Share Program provides financial assistance to implement conservation practices, including soil health measures.
Pennsylvania
The Conservation Excellence Grant Program provides grants, loans, and tax credits for soil management practices, including soil health measures.
The Agriculture-Linked low Interest Loan (AgriLink) Program provides low-interest loans to implement best management practices (BMPs), including soil health measures.
Vermont
Vermont established a Soil Conservation Practice and Payment for Ecosystem Services Working Group to recommend financial incentives for farmers to implement practices to improve soil health, enhance crop resilience, and reduce runoff.
The Environmental Stewardship Program is a voluntary program that encourages agricultural producers to meet high environmental standards including soil health, greenhouse gas emissions, and carbon sequestration.
The Farm Agronomic Practices Assistance Program utilizes state funding to help Vermont farms implement soil-based agronomic practices that, among other things, improve soil quality and health.
Healthy Soils Financial Incentives By State
Status | State Sort descending | Region | Components | Year Enacted | |
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Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
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Southeast | |||
Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
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West | |||
In-Progress |
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Natural resource conservation districts are enabled to create and administer soil health programs that promote implementation of soil health practices, research, demonstration projects, educational projects, or other activities. Establishing Policies
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Southwest | |||
Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
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Southeast | |||
Enacted |
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The Healthy Soils Program (HSP) Incentives Program provides financial assistance for implementation of conservation management practices that improve soil health, sequester carbon, and reduce greenhouse gas emissions. Establishing Policies
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West | 2021 | ||
Enacted |
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The Colorado Soil Health Program provides financial assistance to help producers improve their soil quality. The Agricultural Stewardship Practices Tax Credit offers a state income tax credit for active qualified stewardship practices on a farm or ranch to be claimed for income tax years 2026 through 2030. Qualified stewardship practices are defined by the Colorado Department of Agriculture, and include practices that increase soil health. Establishing Policies
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West | 2021 | ||
Enacted |
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The Commissioner of Agriculture is authorized to pay or reimburse nonprofits, soil and water conservation districts, the University of Connecticut Extension Services, or any municipality to distribute grant funding to producers who are implementing climate-smart agriculture and forestry practices, which include soil health measures Establishing Policies
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Northeast | 2022 | ||
Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
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Southeast | |||
Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
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Southeast | |||
Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
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Southeast | |||
Enacted |
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The Hawai‘i Carbon Smart Land Management Assistance Pilot Program provides compensation to producers for practices that increase soil health through June 30, 2025. Establishing Policies
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West | 2022 | ||
Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
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West | |||
Enacted |
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The Sustainable Agriculture Grants Program provides grants to implement conservation practices that reduce soil loss and improve soil health. The Cover Crop Premium Discount Program offers premium discounts to promote additional acres of cover crops that are not covered by other state and federal program incentives. Funds in the Partners for Conservation Fund and the Partners for Conservation Projects Fund may be used to provide capacity grants to support soil and water conservation districts in implementing soil health programs. The Illinois Healthy Soils Initiative promotes voluntary and incentive-based soil health efforts. Establishing Policies
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Midwest | 2023 | ||
Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
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Midwest | |||
Enacted |
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The Iowa Cost Share Programs offer cost share funding and crop insurance discounts to increase the use of cover crops. Establishing Policies
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Midwest | 2020 | ||
Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
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Midwest | |||
Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
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Southeast | |||
Enacted |
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Soil and water conservation districts are authorized to provide financial assistance for practices that improve soil health. Establishing Policies
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Southeast | 2022 | ||
Enacted |
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The Maine Healthy Soils Program incentivizes healthy soils best practices, and the legislation calls for the program to equitably distribute incentives to beginning and socially disadvantaged farmers and ranchers. Establishing Policies
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Northeast | 2021 | ||
Enacted |
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The Maryland Healthy Soils Program provides financial assistance to manage conservation practices in new and innovative ways that improve soil health, yield, and profitability and capture carbon. Maryland's Cover Crop Program offers grants to help pay for seed, labor, and equipment costs to plant cover crops. Establishing Policies
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Southeast | 2017 | ||
Enacted |
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The Massachusetts Healthy Soils Program supports produce and dairy farmers in implementing soil health practices. Establishing Policies
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Northeast | 2021 | ||
Enacted |
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Michigan has passed legislation that creates and funds an agricultural resiliency program to promote soil health and regenerative agriculture. Establishing Policies
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Midwest | 2023 | ||
Enacted |
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The Soil Health Financial Assistance Program provides cost-share incentives for the purchase and retrofit of soil health equipment. The Cover Crop Demonstration Grants Initiative provides grants to increase the establishment of cover crops and related tillage practices. Establishing Policies
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Midwest | 2023 | ||
Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
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Southeast | |||
Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
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Midwest | |||
Enacted |
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The Renewable Resource Grant and Loan Program can fund soil health projects Establishing Policies
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West | 2017 | ||
Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
|
Midwest | |||
Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
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West | |||
Enacted |
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Conservation Districts in the state are authorized to provide incentives to promote healthy soil practices. Establishing Policies
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Northeast | 2021 | ||
Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
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Northeast | |||
Enacted |
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The New Mexico Healthy Soils Program provides grants to implement on-the-ground projects that improve soil health and maximize biodiversity. Establishing Policies
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Southwest | 2019 | ||
Enacted |
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The Climate Resilient Farming Program provides competitive grant funding to support farmers with agricultural waste storage, methane reduction, on-farm water management, and soil health. New York Soil Health Program provides grants to support projects, activities, and travel related to soil health within New York State. Establishing Policies
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Northeast | 2021 | ||
Enacted |
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The Agriculture Cost Share Program (ACSP) provides financial assistance to help address nonpoint source pollution, including soil health measures. Establishing Policies
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Southeast | 1984 | ||
Not Enacted |
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Soil health grants were funded from 2021-2023 Establishing Policies
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Midwest | |||
Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
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Midwest | |||
Enacted |
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The Soil Health Implementation Program provides technical assistance and financial incentives to encourage the adoption of soil health practices among agricultural producers. The Conservation Cost-Share Program provides financial assistance to implement conservation practices, including soil health measures. Establishing Policies
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Southwest | 2022 | ||
Enacted |
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The Natural and Working Lands (NWL) Fund provides financial incentives to help Tribes, landowners, land managers, and environmental justice communities adopt practices that support natural climate solutions, including soil health measures. Establishing Policies
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|
West | 2023 | ||
Enacted |
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The Conservation Excellence Grant Program provides grants, loans, and tax credits for soil management practices, including soil health measures. The Agriculture-Linked low Interest Loan (AgriLink) Program provides low-interest loans to implement best management practices (BMPs), including soil health measures. Establishing Policies
Empty column
|
Northeast | 2019 | ||
Not Enacted |
Empty column
Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
|
Northeast | |||
Not Enacted |
Empty column
Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
|
Southeast | |||
Enacted |
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The Conservation Tillage Loan Program provides loans for up to 80 percent of conservation tillage equipment costs. Establishing Policies
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Midwest | |||
Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
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Southeast | |||
Enacted |
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The On-The-Ground Conservation Program provides financial assistance in the form of grants and cost-share assistance for soil health improvement measures. Establishing Policies
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Southwest | 2021 | ||
Enacted |
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The Utah Soil Health Program provides grants to fund the implementation of soil health practices. Establishing Policies
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|
West | 2021 | ||
Enacted |
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Vermont established a Soil Conservation Practice and Payment for Ecosystem Services Working Group to recommend financial incentives for farmers to implement practices to improve soil health, enhance crop resilience, and reduce runoff. The Environmental Stewardship Program is a voluntary program that encourages agricultural producers to meet high environmental standards including soil health, greenhouse gas emissions, and carbon sequestration. The Farm Agronomic Practices Assistance Program utilizes state funding to help Vermont farms implement soil-based agronomic practices that, among other things, improve soil quality and health. Establishing Policies
Empty column
|
Northeast | 2020 | ||
Not Enacted |
Empty column
Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
|
Southeast | |||
Enacted |
Empty column
The Sustainable Farms and Fields Grant Program and the Washington Soil Health Initiative provide financial assistance and free services to help implement climate-smart practices and projects that increase carbon sequestration and reduce greenhouse gas emissions. Priority projects include those that enhance soil carbon; integrate native vegetation into agricultural lands; reduce carbon, nitrous oxide, and methane emissions; support efficiency and reduced fuel use; and support pollinator habitats. Establishing Policies
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West | 2025 | ||
Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
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Southeast | |||
Enacted |
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Wisconsin passed legislation that provides crop insurance rebates for cover crops. Establishing Policies
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Midwest | 2022 | ||
Not Enacted |
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Agriculture financial incentives support healthy soils and regenerative agriculture. Incentives may include reduced crop insurance premiums, property tax exemptions, grants, or cost-share programs. Empty column
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West |