USDA Seeks Applications For Conservation Innovation Grants

Jan 27, 2015

Agriculture Secretary Tom Vilsack today announced that applications are being accepted for up to $20 million in grants to facilitate the creation of new, innovative markets for carbon credits, providing additional revenue sources for producers to use to address natural resource conservation challenges. These grants are part of the Conservation Innovation Grant (CIG) program, authorized through the 2014 Farm Bill.

"USDA has been a leader in supporting market-based solutions to improve water quality and reduce carbon pollution," Secretary Vilsack said. "With this opportunity, we are supporting the next generation of projects that will help mature these markets and bring them to scale to benefit both producers and the environment."

For 2015, approximately half of the $20 million is available for environmental markets and conservation finance projects that engage agricultural producers. In past years, CIG has helped fund the development of the basic infrastructure of these markets. This year, USDA, through the Natural Resources Conservation Service (NRCS) is seeking applications for projects that will build on these efforts by maturing and scaling markets and accelerating efforts to leverage private capital and investment in private lands conservation. Improved quantification tools, multi-resource crediting, and projects that substantively engage corporate or financial partners are the types of activities NRCS is pursuing.

As an example, USDA, though CIG, helped fund the development of the first interstate water quality trading program in the Ohio River Basin. Administered by the Electric Power Research Institute, in April, the program is holding its first public auction of water quality credits, generated by farmers in the basin. USDA also funded a project led by the Delta Institute that culminated in the generation and sale of nitrous oxide credits on corn fields in the Midwest. This project demonstrated that greenhouse gas emissions can be reduced on cropland while maintaining corn yields.

USDA is also soliciting proposals for projects to stimulate natural resource improvements, including, but not limited to, improvements in water quantity, soil health, and wildlife habitat. Applications from this funding pool may also emphasize expected benefits to historically underserved producers, veterans, and organic producers. Applications in the fields of economics and sociology as they relate to natural resources are also being welcomed.

Under CIG, Environmental Quality Incentives Program funds are used to award competitive grants to non-Federal governmental or nongovernmental organizations, Tribes, or individuals. The 2014 Farm Bill also included language that has led to some changes in this year's CIG funding announcement. One change eliminates the requirement that half the applicant's match be in cash. Another expands eligibility for the 10 percent set-aside provision for historically underserved producers.

Source:usda.gov

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.