H.R. 3293: Support Water-Efficient Strategies and Technologies Act of 2025

This bill, titled the Support Water-Efficient Strategies and Technologies Act of 2025, proposes amendments to the Food Security Act of 1985 aimed at enhancing support for water-efficient agricultural practices. The main objectives include:

Increased Payments for Water-Saving Practices

The bill allows for increased financial assistance to farmers for adopting practices that conserve water. Specifically:

• The Secretary of Agriculture can raise payment amounts to up to 85% of the costs associated with:
• Planning and design
• Materials and equipment
• Installation and labor
• Management and maintenance
• Training
• Eligible practices include:
• Those that can function in low-water conditions on designated lands
• Conservation efforts that reduce overall water use
• Methods that boost rainwater absorption or transition farming from irrigated to non-irrigated systems

Supplemental Payments for Resource-Conserving Management

The bill introduces additional payment options for farmers who enter into conservation stewardship contracts. Amendments include:

• Contracts covering resource-conserving practices on farm land
• Adjustments to payment structures that consider income lost due to changes in farming practices
• Support for perennial production systems, which involve the use of cropland and managed woodlands for agroforestry and other sustainable practices

Payment Limitations

The bill establishes limits on payments that can be received under the programs it amends. A recipient cannot exceed $200,000 in total payments during any five-year period, covering all contracts, while excluding agreements made with Indian tribes.

Emphasis on Soil Health

The bill emphasizes improving soil health through program management, which includes:

• Outreach initiatives intended to promote the benefits of soil health enhancements and carbon sequestration methods
• Payment options for soil health testing, providing insights into the impacts of conservation activities on soil health

Overall Impact

This legislation aims to incentivize farmers to adapt more water-efficient and sustainable agricultural practices, addressing the challenges posed by drought and water scarcity. It seeks to financially assist farmers in transitioning their methods to conserve water while also enhancing soil health and productivity.

Relevant Companies

• CAT (Caterpillar Inc.): May be impacted through increased demand for equipment that supports water conservation technologies.
• DE (Deere & Company): Could see a rise in sales of tractors and implements designed for water-efficient agricultural practices.
• KLAC (KLA Corporation): Potentially affected if the bill leads to increased investment in agricultural technology that includes soil health monitoring systems.