The Canadian federal government has announced details for a $160 million program over three years to help farmers adopt beneficial management practices that store carbon and reduce greenhouse gas emissions.
The U.S. Department of Agriculture said in an update that the $160 million program will reward cover cropping, nitrogen management, and rotational grazing practices. Direct payments to farmers, according to the report, will be provided through delivery partners like producer associations, Indigenous groups, nongovernmental organizations, and provincial Crown corporations.
On Aug. 12, the USDA report said the Canadian federal government launched a call for proposals for the On-Farm Climate Action Fund, a new $160 million three-year program providing direct payments to farmers to adopt beneficial management practices that store carbon and reduce greenhouse gas (GHG) emissions.
Eligible environmental beneficial practices must fall under three target areas:
- Cover cropping, with payment-per-acre to cover costs such as seeds and equipment for crops like clover and alfalfa planted to cover the soil rather than for the purpose of being harvested;
- Nitrogen management, with payments to cover costs related to agronomic services to develop farm-specific nutrient management plans, equipment modifications for fertilizer application in fields, and soil sampling and analysis; and
- Rotational grazing, with payments for costs of agronomic services to develop grazing management plans, interior cross fencing, water system infrastructure, or legume and forage seeds.
Farmers will receive the funds from yet-to-be-selected program delivery partners, which could include producer associations, commodity organizations, Indigenous groups, non-governmental organizations, and provincial Crown corporations.
The new On-Farm Climate Action Fund (initially mentioned in the Federal Budget 2021), together with the previously announced Agricultural Climate Solutions and the Agricultural Clean Technology, are part of Canada’s $3.2 billion umbrella Natural Climate Solutions Fund meant to help Canada achieve its 2030 GHG emission reductions targets and to become a net-zero emissions economy by 2050.
