H.R. 2758: Conservation Reserve Enhancement Program Improvement Act of 2025

This bill, known as the Conservation Reserve Enhancement Program Improvement Act of 2025, aims to modify an existing program under the Food Security Act of 1985 regarding conservation practices on agricultural land. The following are the key components of the bill:

1. Changes to Agreement Practices

The bill proposes to allow for more flexibility in the types of agreements that can be made for land conservation. Specifically, it would:

• Introduce possibilities for agreements that allow dryland agricultural uses and grazing alongside conservation practices.
• Require that payments for agreements which permanently retire water rights be based on the rates for irrigated acres as determined by the Secretary of Agriculture.
• Establish payment rates for agreements permitting dryland agricultural uses as the difference between irrigated and dryland acre payment rates.

2. Variable Payment Allocation

The bill would enable landowners or operators to choose how to allocate annual payments across different years of their agreements, providing greater control over financial planning.

3. Adjustment of Existing Agreements

If existing agreements are less favorable than the new payment rate structure proposed by the bill, the Secretary shall modify these agreements to reflect the higher payment rates.

4. Mandating Compliance with New Standards

The legislation proposes that compliance with conservation plans is necessary when implementing best management practices on agricultural land, ensuring that agricultural practices are sustainable.

5. Exemption from Payment Limitations

Additionally, the bill would change how payment limitations apply. Specifically, it would exempt rental payments under the conservation reserve enhancement program from standard payment limitations, potentially increasing financial support for these practices.

6. Expansion of Eligible Land

The definition of eligible land for these programs would be expanded to include agricultural land which maintains a continuous crop or crop rotation, further supporting diverse agricultural practices.

7. Requirement for Agreements

The bill changes the language regarding the establishment of agreements. It would specify that such agreements "shall" be made rather than "may," indicating a stronger push for participation in the program.

Relevant Companies

• DE (Deere & Company): As a major manufacturer of agricultural machinery, Deere may see increased demand for equipment used in dryland and conservation farming practices promoted by this bill.
• ADM (Archer Daniels Midland Company): ADM, involved in agricultural commodities, might be affected by changes in land use policies that encourage new agricultural practices.
• POT (Nutrien Ltd): This company, which provides crop nutrients and agricultural solutions, could experience a shift in demand based on altered agricultural practices resulting from the bill's provisions.