New Farm Bill Cuts Conservation Funding Cap from $450K to $150K, While Boosting Lost Income Reimbursement to 100%

The EQIP Improvement Act of 2025 is making some serious adjustments to the Environmental Quality Incentives Program (EQIP), which helps farmers pay for conservation work. Essentially, this bill tweaks the rules on who gets how much, and for what.

The New Math for Conservation Costs

Right now, EQIP generally helps cover the costs of conservation practices like improving soil health or managing water. This bill sets a clear ceiling: most general conservation work will be reimbursed at a maximum of 75% of the actual cost. So, if your new cover crop program costs $10,000, the government will chip in up to $7,500.

However, the bill introduces a much tighter cap for specific infrastructure projects. If you're building certain things—like an access road, an animal waste storage facility, or installing irrigation pipelines—the payment limit drops sharply to just 40% of the cost. Think about a mid-sized farmer needing a new waste storage facility for regulatory compliance. Under the old rules, they might have expected a higher cost-share; now, they’ll have to cover 60% of the cost out of pocket. This change could be a real barrier for producers who need these capital-intensive improvements.

100% Coverage for Lost Income

There is one piece of good news for producers: the bill guarantees 100% reimbursement for income lost while implementing a conservation practice. Say a farmer has to take a field out of production for a season to establish a new wetland or soil restoration practice. That lost revenue is now fully covered. This is a significant win, especially for smaller or diversified operations where temporary income loss can be a major financial hit, making it easier for them to commit to practices that offer long-term environmental benefits.

A Tight Squeeze for Larger Operations

Perhaps the biggest financial change is the dramatic reduction in the overall payment cap. The bill slashes a key payment limitation from $450,000 down to $150,000. This is a huge haircut. For large-scale operations or those undertaking extensive, multi-year conservation projects, this means they will hit the program’s funding limit much faster. While this change might be intended to spread the EQIP dollars to more producers, it immediately limits the scope of conservation work that large farms can undertake using this specific funding stream. If you were planning a $400,000 multi-stage project, you now have to find $250,000 more elsewhere.

More Oversight on the Books

Finally, the bill adds a new layer of transparency, requiring the Secretary of Agriculture to submit an annual report to Congress. This report must detail how EQIP funds are being spent, broken down by state, by the specific type of conservation practice, and critically, by the size of the producer’s operation. For those of us who track how public money is spent, this is a welcome change. It provides the data needed to see exactly who is benefiting from the program—whether the funds are going to small family farms or massive agricultural enterprises—and helps ensure the money is achieving its intended environmental goals.