Regenerative Agriculture Gains Momentum as New Tax Incentives Drive Farmer Interest

Roger McEowen explains how the White House executive order aims to advance regenerative agriculture through tax incentives rather than direct regulation.

TOPEKA, Kan. (RFD News) — More U.S. farmers are adopting regenerative agriculture practices, according to a new analysis from the American Farm Bureau Federation (AFBF), as producers look to improve soil health while maintaining long-term productivity.

Farm Bureau Associate Economist Cameron Castillo says regenerative agriculture encompasses production systems that reduce environmental impacts, promote responsible land stewardship, maximize agricultural production, and improve the long-term health and economic viability of the soil.

The report found participation in regenerative agriculture programs increased 360% between fiscal years 2014 and 2023, reflecting growing interest among farmers and ranchers in conservation-focused management practices.

Farm Bureau says the increase has been driven by producers seeking ways to build healthier soils, improve water quality, and strengthen the resilience of their operations.

Federal support has also expanded in recent years.

Castillo noted that in December 2025, USDA announced a $700 million regenerative agriculture pilot program, funded through the Working Families Tax Cuts Act. The initiative is designed to help farmers and ranchers adopt conservation practices that improve soil health and enhance water quality.

The report suggests interest in regenerative agriculture continues to grow as producers evaluate practices that can improve both environmental stewardship and the long-term sustainability of their farms.

The topic remains a growing focus in agriculture as producers, policymakers, and researchers continue to examine the economic, environmental, and tax implications of regenerative farming practices.

RFD News’ Farm Legal Expert Roger McEowen, with the Washburn University School of Law, joined us on Thursday’s Market Day Report to discuss what the initiative could mean for farmers and the role of the federal Clean Fuel Production Tax Credit.

In his interview with RFD News, McEowen said the executive order centers on economic incentives tied to the federal clean fuel tax credit, encouraging regenerative agricultural practices through tax policy rather than regulatory mandates.

He explained that participation depends on meeting specific program requirements, with eligibility tied to qualifying production practices and compliance with the standards established under the tax credit.

McEowen noted that predictability remains an important issue for producers, as many farming investments are made over decades. He said uncertainty surrounding program requirements and future policy changes can make long-term planning more difficult for farmers considering participation.

Looking ahead, McEowen encouraged producers to closely monitor program developments and carefully evaluate how the incentives align with their operations before making long-term management or investment decisions.

Regenerative Agriculture—When “Voluntary” Becomes Hard to Ignore - Firm to Farm

Marion is a digital content manager for RFD News and FarmHER + RanchHER. She started working for Rural Media Group in May 2022, bringing a decade of digital experience in broadcast media and some cooking experience to the team.

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