Natural and Working Lands

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.

States with Policy Enacted

In Progress

Partially Enacted

See States List

Key Resources

State Healthy Soil Policy Map

A crowd-sourced policy tracker that highlights growth of healthy soil and related policies across states.
2025
Source:

Report: Soil Health

A map and tracker that lists and describes the status and key features of soil health policies in each state.

Financial Incentives for Agricultural Carbon Sequestration

A set of recommendations and resources related to financial incentives for carbon sequestration in agriculture.
2020
Source:

Agricultural Soil Carbon Credits: Making sense of protocols for carbon sequestration and net greenhouse gas removals

A report synthesizing resources on soil carbon and net greenhouse gas measurement, reporting, and verification processes, to help policymakers develop agricultural carbon credit policies.

Model Rules

LPDD Model Law: State Healthy Soils Legislation

A menu-based model legislation template of best practices in existing healthy soils legislation from around the country.
2019
Source:

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

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Status State Sort descending Region Components Year Enacted
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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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Midwest
Enacted
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The Renewable Resource Grant and Loan Program can fund soil health projects

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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Northeast 2019
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.

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Northeast
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.

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Southeast
Enacted
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The Conservation Tillage Loan Program provides loans for up to 80 percent of conservation tillage equipment costs.

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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.

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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.

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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.

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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.

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Northeast 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.

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Southeast
Enacted
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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.

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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.

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Southeast
Enacted
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Wisconsin passed legislation that provides crop insurance rebates for cover crops.

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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.

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West

The State Climate Policy Dashboard tracks only passed policies and does not include bills currently proposed in legislative sessions. The website is intended to illustrate the current status of policies for each state, as well as key resources and model states for each policy.

Much of the information contained in this database is derived from the public domain, with links to resources provided. The information provided is made available solely for general information purposes and does not constitute legal advice. Click here for full Terms of Use.

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