agribusinessplay.com

Sustainability

When Can Farm Payments Work Together?

Understand the limits on combining EQIP support and carbon credits

agribusinessplay.com
01

The Federal Rule

Under 7 C.F.R. §1466.36, EQIP contracts prohibit actions that defeat the program’s purpose, including double payment for the same environmental benefit on the same land.

Read full article
agribusinessplay.com
02

Carbon Program Terms

Indigo Ag uses an outcomes-based model and requires additionality under CAR standards. Its contracts often restrict stacking when EQIP paid for the same practice on the same acres.

Read full article
agribusinessplay.com
03

When Acres Overlap

If EQIP pays part of the cost of cover crops on 200 acres and a carbon program pays for those same cover crops there, NRCS could view it as duplicate compensation.

Read full article
agribusinessplay.com
04

Map Practices and Acres

Before signing, match each EQIP-funded practice and acreage against the carbon program’s activities. A clear map and record of overlaps can help identify potential conflicts early.

Read full article
agribusinessplay.com
05

Check Both Contracts

Review your EQIP contract and the carbon program’s stacking terms, even if private carbon markets are not named in the EQIP language. Ask your NRCS representative before enrolling.

Read full article
agribusinessplay.com
06

EQIP and CSP

EQIP and CSP are designed to complement each other: EQIP can fund one-time practice implementation, while CSP can pay annually for maintaining practices and making enhancements.

Read full article
agribusinessplay.com
07

Different Benefits Matter

The key distinction is whether payments support separate conservation activities or duplicate the same environmental benefit. Private carbon programs may apply their own stricter additionality rules.

Read full article
agribusinessplay.com
08

Compare the Potential

In the article’s 200-acre Iowa example, EQIP contributes $3,500 annually, average CSP payments $10,000, and Bayer Carbon $2,400, for a stated total of $15,900 per year.

Read full article
agribusinessplay.com
09

Confirm Before Enrolling

Successful stacking requires careful contract review, mapping practices and acres, and confirming program rules with the relevant representatives before you commit to either agreement.

Read full article
agribusinessplay.com
10

Same Crop, Same Acres?

Generally, you cannot stack EQIP cost-share and carbon credits for the same cover crop benefit on identical acres. It may be possible when the payments support distinct benefits.

Read full article
agribusinessplay.com

Keep reading

Read the full guide to stacking rules and examples.

Read full article