New Forest Easement Program Guarantees $100M Annually for Forest Protection, Prioritizes Underserved Landowners

The Forest Conservation Easement Program Act of 2025 is setting up a major new conservation effort within the Department of Agriculture. Starting in fiscal year 2026, this program is designed to protect and restore forests by purchasing conservation easements—essentially, legally binding agreements that limit development—from private landowners. The bill guarantees a dedicated funding stream of $100 million annually for five years (2026 through 2030), a significant commitment to keeping forests as forests.

The Trade-Off: New Program Replaces Old

This new program isn't just an add-on; it’s a replacement. The bill repeals the existing Healthy Forests Reserve Program (HFRP), though it’s careful to protect anyone who already has a deal. If you have an existing contract or easement under the old HFRP, the bill explicitly states those agreements remain completely valid, and the government must continue making payments. For those familiar with the old system, this means the structure has changed, but your current agreement is safe and will be funded either by the old money or the new program’s pot.

Conservation with a Paycheck

The program offers two main paths for landowners. The first is the Forest Land Easement, where an eligible entity (like a local land trust or state agency) buys the easement. This protects the natural resources and prevents conversion to non-forest uses, but it still allows the landowner to continue working the forest for production. The second is the Forest Reserve Easement, which is focused more on species recovery and requires a joint restoration plan with the Secretary of Agriculture. For this second type, the government pays the landowner the difference between the land's value before and after the permanent easement is placed, or 50% to 75% of that value for a 30-year term.

Prioritizing the Underserved

One of the most notable features of this bill is its focus on equity. The Secretary is required to try their best to set aside 10% of the program funds for landowners who often face systemic barriers: Beginning Forest Landowners (those owning land for less than 10 years), Socially Disadvantaged Forest Landowners, and Veteran Forest Landowners. Furthermore, these groups can qualify for a higher federal cost-share—up to 75% of the easement’s value, compared to the standard 50%—making participation much more financially viable for them. This is a clear signal that the program aims to broaden who benefits from federal conservation funding.

The Catch: Finding the Money

While the $100 million annual funding is guaranteed, Congress added a crucial, and potentially challenging, provision in Section 5: a Sense of Congress stating that all costs associated with this Act must be offset by finding savings or new revenue elsewhere. This means the money for this new forest program can't just be added to the national debt; it must be balanced out. For the USDA, this could mean budget pressure on other existing programs within the Commodity Credit Corporation or elsewhere, as administrators search for $100 million in offsets each year to fund these new forest easements.