EDITOR’S NOTE: On October 9, 2024, NSAC released “Stewarding Success: CSP Under the 2018 Farm Bill”, a comprehensive analysis of the Conservation Stewardship Program (CSP) over the course of the Agriculture Improvement Act of 2018 (2018 Farm Bill). The report offers an in-depth analysis of CSP’s enrollment trends, conservation practices supported, and funding impacts, including the effects of the Inflation Reduction Act (IRA) of 2022. This post is the third in a series of five blog posts highlighting the key findings of the report and offers a detailed look at the engagement of historically disadvantaged populations with CSP during the 2018 Farm Bill cycle.

The Conservation Stewardship Program

The Conservation Stewardship Program (CSP) is a voluntary program run by the US Department of Agriculture (USDA) through its Natural Resources Conservation Service (NRCS). CSP aims to enhance natural resources while maintaining profitable agricultural production. It does this by providing financial and technical assistance to farmers actively managing and expanding conservation activities even while they work their lands for production. The 2018 Farm Bill mandated that 5% of annual CSP funding be set aside for Beginning Farmers and Ranchers (BFR) and an additional 5% for Socially Disadvantaged (SDA) Producers. NSAC’s analysis shows that these set asides are largely successful in improving access to CSP; however, there is room for improvement in many states.

CSP Supports Beginning, Socially Disadvantaged, and Limited Resource Producers

The Conservation Stewardship Program (CSP) plays an important role in supporting beginning, socially disadvantaged, and limited resource producers. These groups often face systemic barriers such as difficulty accessing capital in the form of land and loans and, in some cases, have experienced historical discrimination from the USDA, lenders, and others. Enrolling in CSP offers access to technical and financial resources that promote sustainable farming practices, contributing to the long-term viability of their operations. The 2018 Farm Bill maintained the mandate that NRCS allocate 5% of CSP funding to beginning farmers and ranchers and another 5% to socially disadvantaged producers, to address challenges that these groups face accessing USDA programs.

CSP set asides Are Being Met  

From fiscal year (FY) 2019 to FY2023, the percentage of CSP funds allocated to beginning farmers and ranchers remained between 14% and 18% (see Figure 1), consistently exceeding the mandated 5%. Similarly, socially disadvantaged producers have seen allocations ranging from 5% to 7%, showing steady progress to meet or exceed the mandated set aside. Limited resource producers are the only group that does not have a mandated set aside and have consistently received only 1% of CSP funding.

Figure 1: CSP Meets or Exceeds Mandated Funding to Underserved Groups

While the program is meeting the minimum statutory funding requirements for beginning farmers and ranchers and socially disadvantaged producers, the data suggests that these set asides could be increased. For example, the percentage of CSP funding going to beginning farmers and ranchers falls significantly below the 33% of US farms that had a beginning producer in the 2022 Agricultural Census. Enrollment trends and the growing demand for sustainable farming practices indicate that NRCS should consider expanding these targets in future farm bills to enhance the program’s reach, especially in underserved communities. Recent analysis from the Institute for Agriculture and Trade Policy found that even with a funding boost from the IRA, only 31% of farms that applied to CSP in 2023 received contracts. Farmer demand for CSP far exceeds the funding available, reinforcing the need to ensure historically underserved producers can equitably access this valuable resource. 

Below, enrollment gaps across states are discussed, highlighting how many states have significant room for improving enrollment for beginning farmers and ranchers, as well as socially disadvantaged producers.  A targeted outreach effort at the state level could ensure more equitable resource distribution.

The IRA Increased Equitable Access to CSP

CSP acreage data presents a more nuanced picture of the program’s reach than expenditures alone (see Figure 2). For beginning farmers and ranchers, the enrolled acreage ranged from a high of 10% in FY2019 and FY2020 to a low of 7% in FY2022. These figures suggest that while funding for beginning farmers and ranchers has remained relatively steady, the acreage enrolled by beginning farmers and ranchers has fluctuated. 

However, comparing the CSP enrollment of beginning farmers and ranchers to information from the Agricultural Census reveals there is much room for improvement in enrolling beginning farmers and ranchers in CSP. In the 2022 Agricultural Census, new and beginning farmers managed 22% of US farmland. This means that, even during the peak years where beginning farmers accounted for 10% of CSP acreage, beginning farmers’ representation in CSP is half of what it could be considering how much farmland is managed by beginning farmers and ranchers nationally. This reveals a significant enrollment gap for beginning farmers and ranchers. 

Socially disadvantaged producers’ enrollment by acreage also fluctuated, accounting for a high of 12% of total CSP-funded acres in FY2019 and FY2022 to a low of 8% in FY2020. In the 2022 Agricultural Census, socially disadvantaged producers managed 11% of US farmland. This means that in most years socially disadvantaged producers’ representation in CSP is lower than what it could be considering how much farmland is managed by socially disadvantaged producers nationally.  Strikingly, socially disadvantaged producers enrolled 23% of total IRA-funded acres in FY2023, reflecting an encouraging trend of increased participation driven by climate-focused funding from the IRA. 

Figure 2: CSP Acreage for Historically Underserved Groups Grows with IRA Funding

The sharp rise in socially disadvantaged producer acreage in IRA-funded contracts is particularly noteworthy and signals a shift toward greater inclusion of historically underserved groups in conservation and climate resilience efforts. This trend may result from several years of targeted outreach through NRCS’s Equity in Conservation Outreach Cooperative Agreements. These efforts have empowered trusted third-party organizations to connect socially disadvantaged producers with conservation programs like CSP, ensuring more equitable access to resources. Further investigation is needed to understand what might drive this trend and how it can be sustained.

Limited resource producers, however, continue to experience low enrollment, which fell to less than 1% in FY2023. This highlights the need for stronger support mechanisms and outreach efforts to ensure that limited resource producers can benefit from CSP. The comparatively higher enrollment of socially disadvantaged producers and beginning farmers and ranchers also shows the effectiveness of mandated set asides for those groups in comparison to limited resource producers.

Uneven Progress Across States

Enrollment rates across states reveal significant disparities, particularly for beginning farmers and ranchers (see Figure 3). States like Arkansas, Mississippi, and Hawaii have made substantial progress, with more than 5% of their state’s CSP acres enrolled by beginning farmers and ranchers between FY2019 and FY2023. On the other hand, states such as Connecticut, Massachusetts, Wyoming, and Delaware enrolled fewer than 1% of CSP acres by beginning farmers and ranchers, signaling an urgent need for increased outreach and support in these regions. 

Figure 3: Some States Lag in Enrollment for Beginning Farmers and Ranchers

When we compare the CSP acreage enrolled by beginning farmers and ranchers to the percentage of farms managed by beginning farmers and ranchers in the 2022 Agricultural Census (see Figure 4), it is clear many states have large enrollment gaps. In many states, like Texas, beginning farmers and ranchers manage more than 30% of farms, but account for only 10% of CSP contracts. These state enrollment gaps are substantial and reveal the potential for significant growth through outreach in the immediate term and also by increasing set asides in future farm bills.

Figure 4: The Agricultural Census Reveals Room for Growth in Beginning Farmer Enrollment

Unfortunately, due to a new NRCS data suppression policy, it is difficult to analyze socially disadvantaged producer enrollment across states as data for the majority of states and years is suppressed. While we understand the importance of protecting producer privacy, NSAC is concerned that this new data policy makes it very difficult to examine enrollment trends across important subpopulations such as socially disadvantaged producer farmers and ranchers. NSAC hopes to find a way to ensure transparency and data access while still safeguarding individual privacy. 

Of the states with enough socially disadvantaged producer contracts to avoid data suppression issues, New Mexico led the way by enrolling 22% of its total CSP acres in contracts with socially disadvantaged producers (see Figure 5). Other high-performing states included Oregon, Hawaii, and South Dakota, each exceeding 5% enrollment. However, several states, particularly in the Midwest and Northeast, enrolled less than 2% of their CSP acreage through socially disadvantaged producer contracts, indicating missed opportunities to engage and support underserved farmers. 

Figure 5: Many States Lag in Enrollment of Socially Disadvantaged Producers

Again, the 2022 Agricultural Census reveals that many states have large enrollment gaps for SDA producers (see Figure 6). Several states in the West such as California, New Mexico, and Arizona have very high percentages of farmland managed by socially disadvantaged producers, but CSP acreage for socially disadvantaged producers is substantially lower in comparison. The same is true for some Southeastern states such as Mississippi and Florida. 

The inconsistent ability of individual states to enroll socially disadvantaged producers suggests an improved set aside is needed in the next farm bill to ensure farmers in every state have a fair opportunity to enroll in CSP. As with beginning farmers, NRCS should consider establishing target enrollment percentages based on the estimated population of socially disadvantaged producer producers in each state. 

Figure 6: The Agricultural Census Reveals Room for Growth in Socially Disadvantaged Producer Enrollment

The Next Farm Bill Must Address Enrollment Gaps

Many states have significant enrollment gaps for both beginning and socially disadvantaged farmers. Those states have much larger populations of beginning farmers and ranchers and socially disadvantaged producers than are enrolled in CSP contracts. These enrollment gaps underscore the need for a more robust set aside in future farm bills and targeted outreach and promotion efforts at the state level. 

Establishing state-specific target enrollment percentages based on population estimates could ensure that all states are engaging these underserved groups. This approach would encourage greater participation in CSP and foster more equitable outcomes across regions.

Moreover, the recent NRCS data suppression policy, which limits the availability of data related to socially disadvantaged producer contracts, presents significant challenges to understanding and improving CSP. Transparency is crucial for tracking progress, evaluating CSP enrollment goals, and assessing state-by-state gaps. A balance must be struck between protecting producer privacy and ensuring that enough data is available to analyze whether CSP is truly reaching the farmers and ranchers it aims to serve.

Conclusion

CSP has made significant strides in supporting beginning, socially disadvantaged, and limited resource farmers, but more can be done. The national set asides mandated by the 2018 Farm Bill are generally being met or exceeded, highlighting the success of NRCS and partners in bringing underserved producers into CSP. Indeed, trends suggest that these targets could be increased in future legislation. 

Moreover, targeted outreach at the state level, coupled with more transparent data policies and state-specific enrollment goals, would help ensure that all farmers and ranchers have equitable access to the resources and benefits CSP offers. By addressing these challenges, the next farm bill can help build a more inclusive federal program.

This is the third in a series of five blog posts that analyze the findings of the report in greater detail. Forthcoming posts in the series examine:

• a national overview of CSP
• a detailed examination of the impact of the IRA on CSP,
• the engagement of historically underserved farmers,
• the impact of changing CSP contract renewal policies, and 
• a detailed state-by-state deep dive

The full report can be found here.