USDA Raises Regenerative Agriculture Pilot to $1 Billion for 2027
USDA is increasing funding for its regenerative agriculture pilot program to $1 billion for fiscal year 2027, following strong producer interest during the program’s first year. USDA Undersecretary for Farm Production and Conservation Richard Fordyce spoke with Associate Farm Reporter Carli Davenport about the increased investment, what USDA learned during the pilot’s first year, and what producers can expect moving forward. Fordyce also discussed the upcoming 2027 Dairy Margin Coverage enrollment period, which begins October 5.
Strong Producer Interest Drives Regenerative Program Increase
The regenerative pilot program was announced in late 2025, with USDA beginning implementation during 2026. Fordyce said it took some time for producers and USDA staff to fully understand the program, but interest eventually surpassed the available funding. “Once that happened we really had a lot of interest, and ultimately by the time we ended the 2026 fiscal year, the program was oversubscribed,” Fordyce said.
That demand led USDA to increase funding from $700 million in fiscal year 2026 to $1 billion for fiscal year 2027.
Fordyce said the program centers around two primary goals: improving soil health and encouraging whole-farm conservation planning. “Both of those things really resonate with folks, and so we knew we needed to earmark some additional dollars over and above what we did in 2026 for the fiscal year 2027,” Fordyce said.
USDA Learning From the First Year
Fordyce said the first year of the program also provided USDA with an opportunity to learn more about how regenerative practices fit different farming and ranching operations.
He said healthier soils can help improve the resiliency of agricultural operations, particularly during periods of unfavorable weather. “We know that healthier soils grow healthier plants,” Fordyce said. “That could be a row crop, that could be a specialty crop, an orchard, forage, really across the board when it comes to agriculture production.”
Fordyce said improving soil health can also help farms and ranches become more resilient during dry conditions. “If those soils are more resilient, those soils are more healthy, they’re going to carry that crop a little bit longer,” he said.
He added that the potential benefits can extend to the bottom line over time as producers improve soil health and potentially reduce the amount of inputs needed to produce crops or forage. “It will ultimately require less inputs, which means, you know, better returns and looks better on the bottom line if we’re putting less—if we’re spending less money to grow that crop or to grow that forage because we’re improving the soil health,” Fordyce said.
More Local Input Coming in 2027
For 2026, USDA administered the regenerative pilot through the Environmental Quality Incentives Program and the Conservation Stewardship Program.
Fordyce said USDA plans to continue using those programs in 2027 while allowing more input from individual states when determining priority practices. “What we’ve decided to do this time is to have, you know, a little bit more local input,” Fordyce said.
He said recommendations can come from farmers and ranchers through a grassroots process and help states tailor the program to their own agricultural needs. That collaboration could lead to even more successful regenerative practices in the future.