On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law, a sweeping reconciliation bill that encompasses provisions typically found in the Farm Bill, the omnibus legislation that governs various agricultural and food programs in the United States. Among its many provisions, the OBBBA includes significant updates to conservation programs, which are crucial for farmers, ranchers, and the environment.
The OBBBA authorizes billions of dollars for several of the United States Department of Agriculture’s (USDA) voluntary conservation programs, primarily implemented through the USDA’s Natural Resource Conservation Service (NRCS). These programs offer farmers and ranchers financial incentives to adopt more environmentally focused land management practices. The bill continues funding for key programs such as the Environmental Quality Incentives Program (EQIP), the Conservation Stewardship Program (CSP), the Agricultural Conservation Easement Program (ACEP), and the Regional Conservation Partnership Program (RCPP).
A notable change brought about by the OBBBA is the redirection of conservation funding authorized by the Inflation Reduction Act (IRA) of 2022. The IRA had allocated around $18 billion for conservation programs, with a specific focus on practices aimed at improving soil carbon, reducing nitrogen losses, and sequestering carbon dioxide. However, this funding was supplemental and set to expire at the end of fiscal year 2031. The OBBBA makes this funding permanent by incorporating it into the Farm Bill baseline, ensuring that unspent funds will not expire. Additionally, the bill removed language that specifically designated conservation program funding for practices addressing nitrogen and carbon concerns.
In total, the OBBBA authorizes $18.5 billion for EQIP, $8.1 billion for CSP, $4.1 billion for ACEP, and $2.7 billion for RCPP. The bill also renews smaller conservation initiatives that were not funded under the last Farm Bill extension, such as the Grassroots Source Water Protection program, which aims to prevent pollution in rural drinking water, and the Voluntary Public Access and Habitat Incentive program, which provides financial incentives to private landowners who open their property to the public for hunting, fishing, and wildlife observation.
The implications of these changes are significant. By making conservation funding permanent, the OBBBA provides long-term stability and predictability for farmers and ranchers participating in these programs. This stability can encourage greater participation and investment in environmentally focused land management practices. However, the removal of specific designations for practices addressing nitrogen and carbon concerns may lead to a broader application of funds, potentially diluting the focus on critical environmental issues.
Beyond conservation, the OBBBA includes a wide range of provisions that impact agriculture. For instance, the bill makes changes to nutrition programs, tax policies, and various horticultural programs. Resources from organizations like the National Agricultural Law Center (NALC), the Center for Agricultural Law and Taxation at Iowa State University, and the Ohio State University Farm Office provide in-depth analyses of these provisions.
The Congressional Research Service has also published reports examining various aspects of the OBBBA, including estate and gift tax provisions, horticultural programs, and fiscal year 2025 appropriations for Labor, Health and Human Services, and Education and Related agencies. These resources offer valuable insights into the broader implications of the OBBBA for the agricultural sector.
In summary, the OBBBA represents a significant update to the agricultural landscape, with far-reaching implications for conservation, nutrition, tax policies, and more. While the permanent funding for conservation programs is a notable achievement, the broader impacts of the bill will continue to unfold as farmers, ranchers, and policymakers navigate its provisions.