Environmental Quality Incentive Program (EQIP) – EQIP stands for Environmental Quality Incentives Program and is provided through the USDA’s Natural Resource Conservation Service. The USDA addresses the natural resource concern by promoting sustainable agricultural practices which means agricultural producers or farmers who want to implement conservation practices on their pasture land, rangeland or farmland and can adopt new practices and boost profitability with the assistance of USDA.
Farmers or ranchers looking for funding associated with a farm conservation, air quality, water quality and soil health initiative can obtain funding through equipment. An important thing to note is that you need to have a project that addresses the natural resource concern associated with soil, air and water quality or animal husbandry to be competitive for the fund. This guide will provide an overview of the Environmental Quality Incentive Program by USDA and how you can qualify for it.
Highlights of this Post
What Is The Environmental Quality Incentives Program (EQIP)?
The Environmental Quality Incentives Program is a popular farm funding program that enables agricultural producers or farmers to adopt conservation practices on their farms or ranches. This is a nationwide program that is administered at the state level however the budget for the program is set by the farm bill each five years.
The USDA sets aside nearly $1 billion of its farm bill budget for the Environmental Quality Incentives Program every year and an average rancher or farmer in America gets around $30,000 from an annual EQIP contract. The program funding is provided to eligible producers through the USDA office known as the Natural Resource Conservation Service (NRCS). The NRCS provide assistance and programs to farmers and aim to protect the natural resources on private lands.
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How Does Environmental Quality Incentives Program Work?
The Environmental Quality Incentives Program is a cost-share program that is run by the Natural Resource Conservation Service and both the producer and the government have to contribute funds.
The awards of the program are structured as cost-share contracts and NRCS will be reimbursing the eligible producers nearly 75% of the implemented practice cost and you have to bear the capital upfront expense. Those who are beginning farmers can apply to receive an advance of half of the funding for the agricultural project or practice.
The underserved producers and beginning farmers can also receive up to 90% of the cost share instead of the standard 75% cost share.
How Much Assistance Can You Get With The Help Of Environmental Quality Incentives Program?
The Environmental Quality Incentive Program assistance may vary in amount and is based on your state of residence and the proposed practice. However, generally candidates can receive up to 75% of the cost of their implemented project. The average assistance that you can get may range between 50% to 90% depending on your eligibility criteria.
For historically underserved producers and beginning farmers can receive assistance up to 90% with 50% of the funding upfront. On an average producer can secure assistance up to $30,000 in funding through the EQIP program.
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What Are The Benefits Of Environmental Quality Incentives Program?
The Environmental Quality Incentives PROGRAM is designed by the USDA to benefit the environment, the producers and their farme. Let’s take a look at the following benefits that you can get on qualifying for the Environmental Quality Incentives Program.
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Environmental Benefits
The Environmental Quality Incentives Program has been designed by the USDA to encourage agricultural producers or farmers to fight against climatic changes and also integrate conservation into their business operations.
Eligible projects that get approval from the EQIP program have the potential to address natural resource concerns and so they get assistance from USDA. Even though it is difficult to calculate the positive effects that the program has created for the environment and the producers, the intent of the EQIP program is to ensure the following.
- Create healthy habitats for pollinators and wildlife
- Improve the quality of air and water resources
- Improve soil health
- Reduce the effect of extreme weather conditions
Research states that the agriculture and farming sector is one of the primary contributors to negative environmental effects and greenhouse gas emissions therefore the EQIP program has been established to address and mitigate these harmful effects.
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Efficiency Benefits
Environmental Quality Incentives Program projects help farmers deal with several issues and help to improve the efficiency of the farm.
For instance, the program will help you to deal with animal feeding operations, irrigation efficiency improvement, soil erosion, water resources, crop rotation practice and improving the quality of surface water.
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Operational Benefits
Environmental Quality Incentives Program requires producers to come up with a robust plan of conservation and operations so that the Natural Resource Conservation Service can know about the eligibility of your plan and can provide you assistance. In short, EQIP will help you to get an environmentally friendly and cost-effective farm by qualifying and fulfilling the eligibility criteria.
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Profitability For Farmers/ Ranchers
The Environmental Quality Incentive Program is an amazing option for farmers or ranchers who have limited resources and need financial assistance. This is a cost-share program which means eligible producers need to put up a share of the cost of their project and fulfill the requirements of the program.
Despite being a cost-share program, it is an excellent investment at the beginning of farm operation. The producer can instill conservation practices in their farm or agriculture operations and save a great cost from energy efficiency, reduced input costs and added value to their produce.
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Who Is Eligible For The EQIP Financial Assistance?
The EQIP program covers the following:
- Non-industrial private forest land
- Beginning and historically underserved farmers
- Eligible land in an urban or rural area
It is important to know what land can qualify for an EQIP program as well as the group of people who can qualify for equipment financial assistance. The land eligibility as per the USDA’s EQIP is defined as grassland, cropland, confined livestock feeding operation, rangeland, and other non-industrial private forest land.
In case your land does not fit into this definition then do not lose hope as there is another land category that you may fit under and this is known as ‘agricultural land that can address the resource concern’. This category includes community gardens or watershed land.
When it comes to being eligible for EQIP financial assistance USDA prioritizes historically underserved farmers and ranchers particularly producers who have faced economic or social disadvantages over other farmers.
Farm Projects That Are Eligible For EQIP Financial Assistance
To qualify for EQIP financial assistance you need to have a particular farm project in mind and obtain EQIP funds to address a specific resource concern that is related to water, soil, animal health or husbandry and air quality. This will make you a competitive applicant for EQIP funding.
Every EQIP contract is given for a specific project or practice that fits the practice standards of Natural Resource Conservation Services. You need to contact your state NRCS office to get a list of applicable practices and the corresponding standards.
It is important to have a cost-effective proposal that will make you an attractive EQIP recipient. For instance, your proposed budget cost must correspond to the conservation benefits that you are expecting. Following are the common equipment projects as well as practices that you need to know:
- Adding high tunnels
- Transitioning to no or low till management
- Adoption of natural herbicides, fertilizers and pesticides
- Improving livestock watering and irrigation system
- Transitioning to organic farming
- Installing fencing for supporting prescribed grazing practices or rotational grazing
- Best management practices
- Nutrient management planning.
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How To Apply For The Environmental Quality Incentives Program?
NRCS will help eligible farms develop an EQIP plan of operation so that they can become the basis of the EQIP contract. The application for the program will be ranked based on varied factors such as the cost-effectiveness of the proposal and environmental benefits with the most scoring application receiving the first EQIP contract.
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Research Your Option
Environmental Quality Incentives Program provides support for a variety of projects and conservation activities including technical support and financial assistance. EQIP provides funding to reimburse the cost related to specific infrastructure projects or practices on a farm.
The most popular programs by EQIP include the High Tunnel Initiative which covers the cost of installation of high tunnels for production farms, and the Organic Initiative which assists up to $140k to certified transitioning farms or organic farms to install conservation practices such as the installation of efficient irrigation system, developing grazing plan, nutrient and pest management strategies etc.
The On-Farm Energy Initiative that covers the cost of energy-saving infrastructure and equipment improvements like greenhouse improvement or refrigeration units.
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Contact your USDA
The next step is to create or update an account at Farmers.gov and contact the local NRCS office to get started. Here your conservation specialist will help you know about your eligibility and identify the projects or practices that will best suit your business operation.
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Schedule Your Conservation Plan Development
A conservation specialist from USDA’s NRCS will work in collaboration with you and help you develop a conservation plan for your farmer agriculture operation and enable you to complete the compulsory AD 1026 form.
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Gather Relevant Documents
The next step is to gather relevant documents that you need to submit to prove your eligibility. These documents are as follows
- Adjusted gross income certification for instance CCC 941 requires your AGI from the previous three taxpayers and taxpayer ID number.
- Official tax ID such as employer identification number or Social Security number
- Farm tract number that you will get from FSA membership or Farmers.gov
- Property lease agreement or deed as well as a written authorization from the land owner for installing vegetative or structural practice
- Documents related to your land irrigation history, if applicable
- Documents related to the organic certification, if applicable.
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Complete The Application Form And Submit It
The next step requires you to complete and submit the application form CPA 1200 with the assistance of the NRCS conservation specialist. You have to submit the application form, the established conservation plan and the required documents listed above.
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Implement The Plan
Based on your eligibility and application you will be notified whether you qualify for EQIP or not. In case you are selected and approved you can choose to sign the contract for the work to be done.
You have to follow the guidelines as well as the time frame for implementing your plan. If the plan gets implemented it will be inspected and you will be paid the rate of compensation for the work.
To learn more details about the application process visit the EQIP site in your state. The EQIP page of every state includes the priority resource concern, application ranking criteria, list of the eligible practices, details about where to submit the application, payment rates, the eligibility criteria and other pertinent information. You can also contact 1-202-720-1845 to contact the NRCS service center in your state.
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How To Win A Chance To Get Funding Through EQIP?
The EQIP program like any other federally funded program is competitive and only one in three participants receives the actual funding. Only competitive applicants who address the existing resource concern set by NRCS on the land can get the funding. The grants are ranked as well as awarded based on the resource concern.
The state conservationist of your state technical committee will determine the priorities of your region every fiscal year. The strongest contestants having a robust idea for their project that is in line with the priority resource concern of their state will receive the funding.
To win a chance to get funding through EQIP you must have an up-to-date on current Farm Service Agency records and complete the EQIP application as early as possible. The program will require you to fill out many forms to learn about your farm income status, the structure and the highly wetland and EQIP status in addition to your conservation program application form.
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What is the EQIP Application Process And Deadline?
There is no particular deadline to apply for the USDA-sponsored EQIP funding and you can apply anytime. Applications for the EQIP program are badged for consideration every year and if you want to become a recipient of the program you need to apply before the batching deadline for that particular year which ranges from November to February based on your state of residence.
It generally takes three to six months after applying for the USDA EQIP program to receive notification of the award. Applications for the NRCS’s EQIP program are accepted on a rolling basis and reviewed on the next ranking date for your particular state. Therefore it is important to begin the application procedure for the program as soon as possible and make sure about the completion of the EQIP program by the next deadline.
Applications will be prioritized by local or state resource concerns and the individual needs of the applicant. The Natural Resource Conservation Service makes decisions about the type of project that deserves to get the funding within three months of every batching deadline.
For instance, if the batching deadline of your state for EQIP is January then you have to apply early in December and must wait for a minimum of four months before hearing any notification about your proposal. NRCS, similar to any other government program, can face potential delays caused as a result of lack of staff, state and federal agency dynamics, global pandemics or emergencies.
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What Are The Environmental Quality Incentives Program Expectations?
Applicants will receive a visit from the USDA NRCS agent or representative in the following scenarios.
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When You Apply For EQIP Funding Initially
The USDA NRCS representative will visit you in person and walk the land when you initially apply for the program. They will know details about where you are planning to place the specific practice or project.
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When You Install The Practice On Your Farm
The representative from USDA’s NRCS will visit you in person to observe as well as verify whether the installation of the practice is complete and is in line with the specifications mentioned in the contract.
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Random Spot Check
Even though this scenario is rare, an NRCS representative will come to check if your proposed project is unfolding and will give you an advanced notice prior to their arrival.
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Examples of The Effects of EQIP Initiative
With the help of EQIP funding, farmers across the nation have been able to protect natural resources in a number of ways during the past 20 years. Through EQIP cost-sharing agreements, NRCS provided more than $13.8 billion in financial and technical support between 2009 and 2018.
As an illustration, in FY 2018 more than 2.6 million acres were planted with the EQIP’s financial and technical assistance. Over 9,000 contracts totaling over 2.6 million hectares of mandated grazing were awarded in the same year.
Here are only a few instances of this program’s local effects:
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Oregon – Supporting Organic Producers
A farm in Kings Valley, Oregon, was able to incorporate soil and water quality projects into its certified organic farm- thanks to the EQIP Organic Initiative.
The projects included planting a hedge as a pollinator habitat, creating a waste management strategy, implementing crop rotations and catch crops for soil health, and building a greened river to reduce erosion, minimize sediment runoff, and improve the habitat for threatened and endangered fish.
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Minnesota- Extension of the vegetative season for growers of vegetables.
A farm in Kings Valley, Oregon, was able to incorporate soil and water quality projects into its certified organic farm thanks to the EQIP Organic Initiative.
The projects included planting a hedge as a pollinator habitat, creating a waste management strategy, implementing crop rotations and catch crops for soil health, and building a greened river to reduce erosion, minimize sediment runoff, and improve the habitat for threatened and endangered fish.
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Missouri- Extending the Growing Season for Vegetable Producers.
A small vegetable farmer north of the Twin Cities received an EQIP contract that funded the construction of a seasonal high tunnel. The high tunnels operate like greenhouses to help producers extend the growing season. NRCS also provided technical and financial assistance to install a native grass field border to keep nutrients and sediments from entering nearby waterways.
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Conclusion
Farmers including technical service providers are aware of the fact that the most significant hindrance to developing sustainable production practices and infrastructure is resource and time scarcity. Fortunately, the NRCS NRCS program provides the right technical support and financial assistance to producers so that they can implement sustainable conservation practices on the farm. The program provides additional support for historically underserved farmers including those beginning, socially disadvantaged, limited resource, veteran farmers and ranchers. Go through the aforementioned eligibility and application procedure to utilize the program. Remember that EQIP is a reimbursement program and will pay for the improvement upfront and help you to get funding to cover the cost.
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Frequently Asked Questions
What is EQIP?
EQIP stands for Environmental Quality Incentive Program and it mainly offers financial cost sharing along with technical assistance to the farmers. It also helps the farmers to implement conservation strategies to enhance their agriculture property.
Am I eligible for EQIP?
To meet the eligibility requirements of EQIP you need to be the owner or operator of a qualifying area that is used for animal husbandry, forestry, or agricultural purposes.
What is the EQIP Organic Project?
The EQIP Organic Project mainly offers help to the organic farmers who are facing various challenges in implementing their conservation strategies to enhance the farm. The project mainly offers financial funding to the farmers so that they can easily implement the required strategies.
