Climate Smart Agriculture Program Funding Remains Despite Governor’s Other Sustainable Agriculture Budget Cuts

Posted on Tuesday, January 16th, 2024 by Brian Shobe
Photo Credit: Office of the Governor

Governor Newsom’s recently proposed 2024-25 budget spares Climate Smart Agriculture (CSA) programs from clawbacks from previous years’ funding while allocating no new funding for the CSA programs in 2024. The proposed budget also includes tough cuts for other programs serving small farmers and climate innovation projects. Governor Newsom indicated this year’s budget deficit, coupled with last year’s shortfall, is part of a “normalization” trend following historically large budget surpluses in 2021 and 2022. The 2024 predicted deficit is $37.86 billion. Such a large deficit forces tough decisions to cut future funding and can result in clawbacks of funding allocated in previous budget years. 

Impact on Sustainable Agriculture Programs

Fortunately, the Climate Smart Agriculture programs — which includes the Healthy Soils Program (HSP), State Water Efficiency & Enhancement Program (SWEEP), Alternative Manure Management Program (AMMP) — as well as the organic transition program and Farm to School programs were excluded from clawbacks. However, given the overall budget deficit, these programs will not receive new funding according to the 2024 proposed budget.

Other critical programs serving small farmers and supporting agricultural climate innovation fell victim to clawbacks in addition to having no new funding allocated. Among the affected initiatives were CDFA’s Farm to Community Food Hub Program, California Underserved and Small Producer Program, California Nutrition Incentive Program, Enteric Feed Additives Program, and the Water Efficiency Technical Assistance Program. Furthermore, the planned $475 million investment in the Climate Innovation Program was cut from the proposed budget. This program had proposed investments in emerging agricultural climate solutions such as agrivoltaics, electric farm equipment, advanced soil health measurement and monitoring tools, and other ag tech advancements. 

 

In response to the budget announcement, CalCAN policy director Brian Shobe notes:

“California farmers are no strangers to boom and bust cycles and the challenges they pose. We appreciate the Governor’s commitment to protecting recent years’ historic investments in CDFA’s climate smart agriculture programs and urge him to work with the legislature to advance the multi-year investments outlined in AB 408. This bond measure, which is led by Assemblymember Lori Wilson and backed by over 120 community-based organizations, would invest $3.7 billion to make our state’s food and farming system more resilient, equitable, and secure. Farmers, farmworkers, and communities deserve nothing less in the face of ever-worsening droughts, floods, wildfires, and heat waves.”

 

Long-term Change Requires Stable Funding

While some sustainable agriculture programs remain unscathed from budget cuts – for now – it is evident that the future of these agricultural initiatives and future programs need consistent and robust financial support to continue paving the way for a more climate resilient agriculture system.  As we advocate for ongoing financial support, our focus shifts to solutions that can better support the future of the Climate Smart Agriculture programs and other programs previously mentioned. 

AB 408: Creating a Better California Food System

One avenue for new funding is a proposed bond bill, AB 408, which includes funding for sustainable agriculture, farmworker well-being, healthy and sustainable food access, and regional food infrastructure. In the last legislative season, Assemblymember Lori Wilson (D-Suisun City) introduced the $3.7 billion bond to invest in creating a more equitable and climate resilient food and farming system.  CalCAN is one of the co-sponsors of the bond bill along with 17 other organizations in the Food and Farm Resilience Coalition. At the end of the last legislative session, Governor Newsom raised the possibility of working with the Legislature on a bond, like AB 408, which would provide funding for climate and natural resource spending. CalCAN and the Food and Farm Resilience Coalition stand ready to engage further with the legislature, Assemblymember Wilson, and the Governor’s administration in that dialogue. 

Inflation Reduction Act Offers Some Relief for Farmers 

On a federal level, funds are available to farmers to help support their climate-smart agriculture practices through the Inflation Reduction Act (IRA). The IRA, signed by the Biden-Harris Administration in August of 2022, provides a historical investment of nearly $20 billion in funding over five years to support voluntary conservation programs and climate-smart practices.  Programs including the Environmental Quality Incentives Program (EQIP) and the Conservation Stewardship Program (CSP) have received significant increases in available resources.  To learn more and apply, reach out to your local NRCS office.

Looking Ahead

As we head into this legislative session, community and local engagement will remain a key part of the advocacy needed to support these initiatives. We look forward to working with the administration and legislature to build upon last year’s efforts and further advance California’s agricultural climate solutions. 

 


Notable Clawbacks from CDFA Programs

Climate Innovation Program Planned Investment 

This program intended to support “the early development and scale-up of clean energy and climate change technology innovations and support economy-wide goals such as carbon neutrality by 2045.” Funding to support agricultural climate solutions such as agrivoltaics, electric farm equipment, advanced soil health measurement and monitoring tools, and other ag-tech innovations were planned to be part of this program. The $475 million planned investment for the Climate Innovation Program was cut from the proposed budget.


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