The Iowa Soybean Association saying funds from the United States Department of Agriculture's (USDA) 5-year Midwest Climate Smart Commodity grant are on hold.

 The Soil and Water Outcome Fund is a subsidiary of the Iowa Soybean Association and received a $95 million grant from the USDA in 2022. The organization works grant dollars, the private sector businesses and farmers across 12 states to offset carbon emissions through conservation practices, such as cover crops or reduced tillage. 

The organization said despite the five-year contract, grant payments, which reimburse farmers for the practices they implement are on hold. "The longer this hold goes on, the more we worry that there may be a stoppage or a significant delay in getting those funds, and ultimately the funds to the farmers, for the work that they're owed," Soil and Water Outcomes Fund Managing director Adam Kiel said.

Kiel said the second half of this year's payments is in jeopardy which totals to $11 million. He said those funds for their investments in the practices could be especially important for some farmers feeling economic pressures. 

"Commodity prices are tough right now. Breaking even is maybe what farmers are shooting for, but there's a lot I know that aren't at that point," he said. "Any sort of help through other revenue opportunities that they can access, like this program, might be the tipping point for helping them maintain the farm for another year."

The program includes nearly 900,000 conservation practices, with nearly 300,000 acres in Iowa. The Soil and Water Outcome Fund pays farmers $1.20 through private dollars for every $1 contributed by the USDA. On average, farmers receive $33 per acre for their carbon reducing practices. 

Kiel said the organization has reached out representatives in Washington, D.C. but does not have a clear word on how the issue may be resolved moving forward. 

"I would hate for, um, farmers to have spent money on things thinking that they're going to see a benefit. So, that's at risk," he said. "That's what we're trying to at least educate folks about is that farmers are owed money, and we want to make sure that's followed through with."

Kiel said in addition to the $11 million dollars owed to farmers this year, about $86 million is at risk for farmers that could sign up for the program in future years. 

Source - https://www.wqad.com