REGULATORY
New legislation and record climate funding boost sustainable farming, though potential budget cuts raise concerns for adoption.
3 Jul 2025
The US Department of Agriculture is moving to accelerate adoption of regenerative farming practices as lawmakers and regulators seek to modernize conservation standards and channel record federal funding into climate-focused agriculture.
In May, Senators Roger Marshall and Joni Ernst introduced legislation to streamline how the USDA updates its conservation rules, aiming to shorten approval timelines and give farmers clearer guidance. The bill targets practices supported by billions of dollars in federal programmes.
The move follows unprecedented funding under the Inflation Reduction Act, which boosted resources for schemes such as the Environmental Quality Incentives Program and Conservation Stewardship Program. The USDA's Natural Resources Conservation Service has been tasked with translating this investment into measurable outcomes, including healthier soils and more resilient farm systems.
On the ground, adoption is growing. Cover cropping, no-till cultivation and advanced nutrient management are expanding as cost-sharing rises. Digital tools that track compliance and soil health are also supporting uptake. Agricultural technology companies are increasing their offerings in areas such as carbon monitoring and farm-level analytics.
Despite the momentum, questions remain over technical assistance. The Biden administration has proposed steep cuts to Conservation Technical Assistance in its 2026 budget. Congress will decide final levels, but reductions could hit smaller farms hardest. Many depend on NRCS advisers to navigate programme requirements, and limited support could slow progress despite higher funding.
Market signals are also beginning to shift. Food brands and retailers are exploring supply chains tied to regenerative practices, while lenders are considering how conservation compliance might shape financing terms. These developments, though uneven, suggest sustainability is becoming a more prominent factor across the sector.
With new legislation under discussion, significant climate funding in play and early signs of private-sector interest, US agriculture appears set for a period of structural change. The pace of that transition will depend on whether federal investment is matched with sustained technical support and market demand.
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