Expanding Agroforestry Project Incentive Payment Program

The Expanding Agroforestry Project Incentive Payment Program is administered by The Nature Conservancy as part of a broader initiative funded through the U.S. Department of Agriculture’s Advancing Markets for Producers program. This initiative reflects a federal investment in conservation-based agricultural practices that improve environmental outcomes while expanding economic opportunities for producers. The project is supported by a 60 million dollar grant, with a significant portion dedicated to direct payments to farmers, and is implemented in collaboration with multiple academic institutions, nonprofit organizations, and regional partners. The Nature Conservancy serves as the lead organization responsible for grant administration, coordination, and oversight of incentive payments. The primary purpose of the program is to accelerate the adoption of agroforestry practices across agricultural lands in the United States. Agroforestry refers to the intentional integration of trees and shrubs into crop and livestock systems to generate environmental, economic, and social benefits. The program specifically supports the establishment of new agroforestry systems through three approved practices: alley cropping, silvopasture, and windbreaks. By reducing financial barriers associated with initial planting and system design, the program aims to increase farm resilience, improve soil health, enhance water quality, and create new revenue streams for producers through diversified agricultural outputs such as timber, fruits, nuts, and livestock products. Funding under this program is delivered through direct incentive payments to participating producers. A total of 39 million dollars is allocated for these payments over the life of the project. Payments are structured in three installments tied to key milestones: an initial enrollment payment representing the majority of the total incentive, a second payment upon verification of implementation, and a final payment following completion of required reporting activities. Funds must be used specifically for activities and materials necessary to establish agroforestry systems in accordance with Natural Resources Conservation Service conservation practice standards. The program does not permit the use of funds for unrelated capital expenses or general agricultural equipment. Eligibility is limited to agricultural producers operating within a defined set of 30 U.S. states and territories, including regions across the Midwest, Northeast, Southeast, and Hawaii. Applicants must either own the land where the project will take place or provide documentation demonstrating landowner support and control for the duration of the contract. Additional requirements include compliance with federal farm service agency documentation, conservation standards, and participation in required monitoring and reporting activities. While a range of producer types may apply, all applicants must demonstrate the ability to implement new agroforestry practices on eligible acreage that meets minimum size requirements. The application process is competitive and requires submission through an online portal during designated application windows. For the current cycle, applications open on June 30, 2026, and close on August 11, 2026. Applicants are strongly encouraged to prepare materials in advance using provided templates, as the system does not allow saving progress. Required components include an application form, an incentive payment estimate, and supporting documentation. Applicants may also schedule a pre-application consultation with technical assistance providers. Applications are reviewed by regional partners and final selections are made by The Nature Conservancy based on criteria such as project feasibility, cost effectiveness, and long term viability. Following submission, applications undergo a review period extending into late September, with applicants notified of their status in October 2026. Selected producers enter into agreements with The Nature Conservancy and receive ongoing technical assistance from regional partners to develop and implement their agroforestry plans. The project operates on a multi-year timeline, with agreements extending up to 18 months or through November 2028, and includes required monitoring, reporting, and verification activities to ensure outcomes align with program goals. This program represents a scalable model intended to expand agroforestry adoption nationwide over time while delivering measurable environmental and economic benefits.

Ensure application is thorough demonstrates feasibility and aligns with NRCS standards and long term viability