Ag Industry Reacts to USDA's New Rules for $3.1 Billion Climate-Smart Program

On April 14, the USDA announced it was cancelling the Partnerships for Climate-Smart Commodities (PCSC) program and renaming it the Advancing Markets for Producers (AMP) initiative with a new set of rules. 

Introduced under the Biden administration, the $3.1 billion PCSC program included more than 130 projects with the goal to encourage farmers to adopt conservation practices to produce climate-smart commodities. Funds for PCSC have been frozen while the Trump administration reviewed the program. 

In a press release, the USDA said, "Following a thorough line by line review of each of these Biden era partnerships, it became clear that the majority of these projects had sky-high administration fees which in many instances provided less than half of the federal funding directly to farmers. Select projects may continue if it is demonstrated that a significant amount of the federal funds awarded will go to farmers."

Existing grant agreements will be reviewed based on these priorities, according to the USDA:

• A minimum of 65% of federal funds must go to producers.
• Grant recipients must have enrolled at least one producer as of Dec. 31, 2024.
• Grant recipients must have made a payment to at least one producer as of Dec. 31, 2024.

Some projects have already been given the green light to continue. The National Pork Board (NPB) is involved in several PCSC projects and is the lead on Advancing U.S. Pork Sustainability and Market Value Grant. NPB confirmed that the USDA has given them approval to continue with that project and will provide more details in the coming days.

Successful Farming reached out to multiple organizations who were involved in PCSC projects to get their response. Those are listed below as well as reactions from the American Farm Bureau Federation. Several organizations declined to comment at this time. 

National Pork Board (NPB)

The National Pork Board supports U.S. pig farmers through research, education, and promotion.

PCSC Projects

• Lead on: Advancing U.S. Pork Sustainability and Market Value Grant
• Partners in: Farmers for Soil Health Climate-Smart Commodities Partnership and Connected Ag Climate-Smart Commodities Pilot Project

"The NPB recognizes the AMP initiative as it prioritizes farmers and ranchers by directly supplying financial resources and focusing on the adoption of on-farm practices," says Jamie Burr, chief sustainability officer for NPB. "Pig farmers are grounded in six farmer-developed We Care Ethical Principles, and this alignment to USDA programming allows farmers more opportunities to do what’s best for pigs, people, and the planet. We are honored to be selected to continue with AMP."

Iowa Soybean Association (ISA)

The ISA delivers increased soybean demand through market development and new uses, farmer-focused research, timely information, and know-how and policy initiatives.

PCSC Projects

• Lead on: Midwest Climate-Smart Commodity Program
• Partners in: Horizon II: A Climate-Smart Future for Corn, Soybean, Livestock, and Renewable Natural Gas Production
  

"We continue to have productive conversations with elected leaders and the administration about the importance of the Midwest Climate-Smart Commodity Program and fulfilling the commitments in our five-year agreement," said Brent Swart, president of the ISA and farmer from Spencer. "Our program has proven to be one of the most effective and efficient public-private partnerships. When our matching private-sector funding is accounted for, nearly 120% of total funds go directly to farmers — well above the 65% threshold. We look forward to updating the contract to reflect the new provisions as outlined by the administration."

Illinois Corn Growers Association (ICGA)

ICGA is a state-based organization that represents the interests of corn farmers in Illinois, maintaining a high profile on issues in Washington, D.C., and Springfield, Illinois.

PCSC Projects

• Partners in: The Climate-Smart Agriculture Innovative Finance Initiative

"We’re approaching this change with cautious optimism," said Greg Goodwin, director of precision conservation management at ICGA. "We believe our farmer members are well positioned to meet the new criteria set by the administration. While the process now requires us to reapply and align with updated priorities, we believe our work qualifies and that we’ll continue to be part of the solution moving forward."

Maine Organic Farmers and Gardeners Association (MOFGA)

MOFGA is a broad-based community that supports farmers, empowers people to feed their communities, and advocates for an organic future. 

PCSC Projects

• Partners in: Climate-Smart Farming and Marketing: Engaging in Community-Science and Practice from Maine to South Carolina

"This program created new opportunities for farmers to diversify their businesses and employ cutting-edge technology and cultivation techniques," said Sarah Alexander, executive director of MOFGA. "The cuts to this program means a loss of over $2 million in investments for Maine farms to help build more resilient operations in the face of increasing storms and pest pressure, and ensure that their land and soil stay productive for generations to come.

"MOFGA and Maine Farmland Trust had already enrolled 27 farms in the program over the last year, and 37 more farms have applied. The cancellation of this program is devastating for these farms that were making critical investments into their farm viability.

"We urge Secretary Rollins’ team and our leaders in Congress to restore the nation’s investment in farming businesses across rural America. It’s in all of our best interests to preserve a strong domestic food system that can sustain our economy and keep food on our tables through any storms or market disruptions ahead."

American Farm Bureau Federation (AFBF)

AFBF is the national advocate for farmers, ranchers, and rural communities. Every year, Farm Bureau members in more than 2,800 counties meet to discuss and vote on policies affecting their farms, ranches, and communities. 

"Farm Bureau has long supported the goals of voluntary, market-driven programs that support America’s farmers and ranchers while protecting the natural resources they’ve been entrusted with," said Sam Kieffer, vice president of public policy for AFBF. "We are just learning of USDA’s decision and will assess the impact of these changes on growers.

"We are grateful the administration is focused on being there and delivering for farmers and ranchers. We also urge USDA to honor contracts already signed where farmers and farmer-led organizations may have already made investments and paid for supplies or services based on the assumption they would be reimbursed by this grant program."

National Sustainable Agriculture Coalition (NSAC)

The NSAC advocates for federal policy reform supporting the long-term social, economic, and environmental sustainability of agriculture, natural resources, and rural communities. There are over 100 member organizations that make up the NSAC.

”After months of self-inflicted uncertainty, today’s announcement is a significant and welcome step toward the clarity that farmers, ranchers, and the organizations who support them have desperately needed, particularly the farmers who have spoken in favor of the program,” said Mike Lavender, NSAC Policy Director. “Unfortunately, this clarity will also bring unnecessary hardship nationwide to farmer serving organizations and likely farmers as a result of USDA changing program requirements and cancelling projects mid-stream.” 

“Direct producer payments are important, and strong cost share can make all the difference for many farmers and ranchers seeking to adopt new practices in their operations,” said Richa Patel, NSAC Policy Specialist. “However, it is disappointing to see the administration disinvest in other valuable elements of PCSC projects beyond direct payments, including technical support for producers designing, implementing, and maintaining conservation systems. Coupling this announcement with USDA’s reductions in force, the administration must take every opportunity going forward to increase access to technical assistance and support the staffing levels necessary to provide efficient and dependable customer service for our farmers — those working directly with USDA and those working with the farmer-serving organizations it partners with.”