MOLINE, III. — The Soil and Water Outcome Fund, a subsidiary of the Iowa Soybean Association, got a $95 million grant from the USDA in 2022. The organization works with grant money, private sector enterprises, and farmers in 12 states to minimize carbon emissions through conservation methods like cover crops and reduced tillage.
The organization stated that, despite the five-year contract, grant payments to farmers for the techniques they follow are on hold. “The longer this hold lasts, the more we worry that there will be a halt or significant delay in getting those funds, and eventually the funds to the farmers, for the work that they are owed,” Soil and Water Outcomes Fund Managing Director Adam Kiel said.
Kiel said that the second half of this year’s payments, totaling $11 million, are in peril. He said the funding for their investments in the practices could be especially essential for some farmers facing financial difficulties.
“Commodity prices are high right now. Breaking even is something farmers may strive for, but many I know are not there yet,” he said. “Any sort of help through other revenue opportunities that they can access, like this program, might be the tipping point for helping them maintain the farm for another year.”
The initiative comprises approximately 900,000 conservation practices and covers nearly 300,000 acres in Iowa. The Soil and Water Outcome Fund gives farmers $1.20 in private funds for every dollar given by the USDA. Farmers receive an average of $33 per acre for their carbon-reducing methods.
Kiel stated that the organization has contacted representatives in Washington, D.C., but has not received a clear response as to how the matter would be rectified moving forward.
“I’d hate for farmers to have spent money on stuff expecting to get a return. So, that’s at jeopardy,” he explained. “That’s what we’re trying to at least educate folks about is that farmers are owed money, and we want to make sure that’s followed through with.”
Kiel stated that in addition to the $11 million owed to farmers this year, around $86 million is at danger for farmers who may join up for the program in future years.