What does the Inflation Reduction Act of 2022 mean for organic agriculture?
Last week, Senate leaders announced major legislation, the Inflation Reduction Act of 2022, that would provide $369.75 billion for energy security and climate change programs over a ten-year period, including $20 billion for agricultural conservation programs that would build resilience and reduce agricultural emissions.
The bill includes the following provisions:
$3.25 billion for the Conservation Stewardship Program (CSP); these CSP funds would be used for conservation practices that improve soil carbon or reduce nitrogen losses or greenhouse gas emissions, or capture or sequester greenhouse gases; or the funds could be used for state or region-specific agricultural activities for climate change mitigation, including transitioning to organic
$8.45 billion for the Environmental Quality Incentives Program**
$6.75 billion for the Regional Conservation Partnership Program (RCPP)
$1.4 billion for the Agricultural Conservation Easement Program (ACEP)
Organic producers are already utilizing soil health practices that sequester carbon and other conservation practices to promote biodiversity and conserve natural resources. Many organic producers benefit from the technical assistance and financial support provided through these USDA conservation programs. These conservation programs are also helping all farmers make a shift to practices that build resilience to extreme weather and reduce agricultural greenhouse gas emissions.
If the bill passes, it could create additional flexibilities for conservation program funding going into the 2023 Farm Bill.
**NOTE: According to Politico, ‘Significantly, the bill also eliminates the requirement that at least 50 percent of the new EQIP funds be used for “practices relating to livestock production, including grazing management practices.” The requirement for farm bill EQIP funds will still last through 2023, but its removal in the new bill may make it easier for non-animal agriculture operators to win the new grant money for conservation investments.’
What happens next?
Passage of this bill is not guaranteed. Democrats are using a process to move the measure forward in the Senate by a simple majority, with Vice President Kamala Harris casting the tiebreaking vote. The Senate plans to bring the bill to a vote this week, pending confirmation from the Senate parliamentarian that the bill conforms to Senate rules. The bill will require support from all 50 Senate Democrats - and all must be present to vote yes (the spread of the latest Covid-19 variant could make this hard to achieve). House Speaker Nancy Pelosi (D-CA) has indicated that after passage in the Senate, the House plans to pass the bill, and President Biden has indicated that he will sign it.
A summary of the bill’s climate and energy provisions is available here.