How EQIP Cost-Share Works: A Landowner's Guide

What Is EQIP?

The Environmental Quality Incentives Program (EQIP) is the largest conservation funding program administered by the USDA’s Natural Resources Conservation Service (NRCS). It provides financial and technical assistance to agricultural producers and private landowners to implement conservation practices on their land.

In plain terms, EQIP pays you to improve your property. If you own land in the Southeast — whether it is a working farm, a timber tract, a hunting property, or a rural homestead — EQIP can cover 50% to 75% of the cost of approved conservation work. This includes practices like forestry mulching, timber stand improvement, prescribed fire preparation, invasive species management, and wildlife habitat restoration.

Since its creation in the 1996 Farm Bill, EQIP has invested billions of dollars in conservation on private land. In fiscal year 2023 alone, NRCS obligated over $2.3 billion in EQIP contracts nationwide. The Southeastern states — particularly Florida, Georgia, Alabama, Mississippi, and the Carolinas — receive a substantial share of this funding due to the region’s extensive private forestland and the ecological importance of its fire-maintained ecosystems.

Who Is Eligible for EQIP?

Basic Eligibility Requirements

To qualify for EQIP, you must meet all of the following criteria:

1. Own or control eligible land: This includes cropland, rangeland, pastureland, non-industrial private forestland, and other agricultural land. The land must be within an NRCS service area. Nearly all privately owned rural land in the Southeast qualifies.

2. Be an agricultural producer: NRCS defines this broadly. You do not need to be a full-time farmer. If you produce any agricultural product — including timber, hay, livestock, or even hunting leases — you typically qualify. Landowners who manage property for wildlife or timber are generally considered agricultural producers.

3. Have an Adjusted Gross Income (AGI) below $900,000: This is averaged over the three tax years preceding the year of contract. Most private landowners fall well below this threshold.

4. Be in compliance with Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) provisions: This means you cannot have plowed up wetlands or farmed highly erodible land without an approved conservation plan. For forestland owners, this is rarely an issue.

Who Does NOT Qualify?

• Federal, state, or local government entities
• Public land managers
• Landowners who exceed the AGI threshold
• Landowners who have violated wetland or highly erodible land conservation provisions without a variance

Special Considerations for Forest Landowners

Forest landowners sometimes believe EQIP is only for row crop farmers. This is incorrect. NRCS has a dedicated forestry component within EQIP, and southeastern NRCS offices actively fund forestry practices. In many southeastern states, forestry practices represent a significant portion of total EQIP funding.

If you own 20 acres of overgrown timber or 500 acres of fire-suppressed pine flatwoods, you are exactly the type of landowner EQIP was designed to help.

The EQIP Application Process

Step 1: Visit Your Local NRCS Office

The process begins at your local NRCS Service Center. Every county in the Southeast has an NRCS office (often located within the USDA Service Center alongside the Farm Service Agency). You can find your local office at farmers.gov.

Walk in or call to schedule an appointment. Tell them you are interested in EQIP funding for forestry or land management practices. You will need to provide:

• Proof of land ownership or a lease agreement
• A legal description or map of your property
• Basic information about your operation

Step 2: Establish Farm Tract Numbers

If your property is not already registered with USDA, you will need to establish farm tract numbers through the Farm Service Agency (FSA), which is typically in the same building as NRCS. This is a one-time administrative step that puts your property into the USDA system.

Step 3: Meet with an NRCS Planner

An NRCS conservation planner will be assigned to your application. This planner will:

• Discuss your goals for the property
• Conduct a site visit (or review aerial imagery and soils data)
• Identify which conservation practices are appropriate for your land
• Help you develop a conservation plan

This step is critical. The conservation plan is the document that justifies the practices you are requesting funding for. A well-developed plan that clearly demonstrates resource concerns (erosion, degraded habitat, invasive species, fire exclusion) will rank higher in the competitive process.

Step 4: Select Conservation Practices

Together with your NRCS planner, you will select the specific NRCS conservation practice standards that apply to your situation. Each practice has a specific code number, a detailed standard, and a predetermined payment rate.

The most relevant EQIP practices for southeastern forest landowners include:

For a detailed breakdown of each practice code, see our NRCS practice standards guide.

Step 5: Application Ranking

EQIP is competitive. Not every application is funded. Applications are ranked based on a scoring system that considers:

• Resource concerns addressed: Applications that address multiple resource concerns (soil erosion, water quality, wildlife habitat, forest health) score higher than those addressing only one.
• Cost efficiency: Practices that deliver the most environmental benefit per dollar score higher.
• Priority resource concerns: Each state NRCS office identifies priority resource concerns. In the Southeast, these often include longleaf pine restoration, at-risk species habitat, water quality, and wildfire risk reduction.
• Historically underserved producers: Beginning farmers, socially disadvantaged producers, limited-resource producers, and veteran farmers receive ranking priority.
• Bundled practices: Applications that combine multiple complementary practices (for example, brush management + prescribed burning + upland wildlife habitat management) typically rank higher than single-practice applications.

Step 6: Funding and Contracts

If your application is selected for funding, you will receive a contract offer from NRCS. The contract specifies:

• Which practices will be implemented
• The payment rate for each practice
• The timeline for completion (typically 1–3 years for most forestry practices)
• Any special conditions or requirements

You must sign the contract to accept the funding. Work cannot begin until the contract is executed — any work performed before the contract start date is not eligible for reimbursement.

Step 7: Implementation

Once your contract is active, you implement the approved practices. You can hire a contractor (like TreeShop) to perform the work, or you can do it yourself if you have the equipment and expertise. NRCS will conduct interim and final status reviews to verify that the work meets the practice standard requirements.

Step 8: Payment

After NRCS verifies that the practice was implemented according to the standard, payment is issued. EQIP payments are made directly to the landowner, not to the contractor. You pay the contractor for the full cost of the work and receive the EQIP reimbursement from NRCS.

Payment timing varies, but most landowners receive payment within 30–60 days of practice certification.

EQIP Payment Rates

How Rates Are Determined

EQIP payment rates are set at the state level by each NRCS State Technical Committee. Rates are based on the estimated cost of implementing each practice and are expressed as either:

• Dollars per acre: Most common for forestry practices
• Dollars per linear foot: Used for firebreaks and some fencing practices
• Dollars per unit: Used for specific structures or installations

Southeastern Payment Rate Examples

Payment rates vary by state and by fiscal year. The following are approximate ranges for common forestry practices in the Southeast as of recent program years:

Cost-Share Percentages

Standard EQIP contracts pay up to 50% of the average cost of implementing a practice. However, several categories of producers are eligible for higher payment rates:

• Beginning farmers and ranchers: Up to 75% cost-share (defined as those who have operated a farm for 10 years or less)
• Socially disadvantaged producers: Up to 75% cost-share
• Limited resource producers: Up to 75% cost-share
• Veteran farmers and ranchers: Up to 75% cost-share

Maximum Contract Value

As of recent Farm Bill provisions, the maximum EQIP contract value is $450,000 over the life of the contract for most producers, and higher for some special initiatives. For typical forest management applications, contracts usually range from $5,000 to $100,000.

How to Maximize Your EQIP Funding

Bundle Multiple Practices

An application requesting brush management alone will rank lower than one requesting brush management, prescribed burning, upland wildlife habitat management, and herbaceous weed treatment on the same property. Bundling practices demonstrates a comprehensive approach to conservation and addresses multiple resource concerns.

For example, a landowner with 100 acres of fire-suppressed pine flatwoods might apply for:

1. Brush Management (314): Forestry mulching to remove hardwood mid-story — $400/acre = $40,000
2. Firebreak (394): Construct perimeter firebreaks — $3/LF x 10,000 LF = $30,000
3. Prescribed Burning (338): Conduct two burns over the contract period — $50/acre x 100 acres x 2 = $10,000
4. Upland Wildlife Habitat Management (645): Implement habitat plan — $100/acre = $10,000

Total contract value: $90,000, with EQIP covering $45,000–$67,500 depending on producer category.

Address Priority Resource Concerns

Before applying, ask your NRCS planner which resource concerns are receiving priority funding in your state. In the Southeast, longleaf pine restoration, at-risk species habitat (gopher tortoise, red-cockaded woodpecker), water quality, and wildfire risk reduction are frequently prioritized. If your property has potential for any of these, emphasize them in your conservation plan.

Apply During Every Signup Period

EQIP typically has one or two signup periods per year, with application deadlines (called “batching periods”) announced by each state NRCS office. If your application is not funded in the first round, it can be reconsidered in subsequent rounds. Some landowners are funded on their second or third application.

Work with Experienced Professionals

Having a clear, professional conservation plan significantly improves your ranking. Work with a land manager who understands NRCS practice standards and can help you develop a plan that aligns with NRCS priorities. At TreeShop, we regularly assist landowners with EQIP conservation practices, including helping develop the documentation needed for a competitive application.

Consider Conservation Activity Plans (CAPs)

Conservation Activity Plans are a special EQIP provision that funds the development of detailed management plans for specific resource concerns. A Forest Management Plan (CAP 106) or a Wildlife Habitat Evaluation (CAP 142) can be funded through EQIP and then used to support a subsequent application for implementation funding.

Common EQIP Mistakes to Avoid

Starting Work Before the Contract Is Signed

This is the most common and most costly mistake. Work performed before the EQIP contract start date is not eligible for reimbursement, regardless of how well it meets the practice standard. Do not begin any work until you have a signed contract in hand.

Applying for a Single Practice

Single-practice applications consistently rank lower than multi-practice applications. Even if you only plan to do one thing on your property, discuss with your NRCS planner whether complementary practices could be added to strengthen your application.

Not Visiting the NRCS Office in Person

While some NRCS offices accept phone inquiries, the application process moves fastest when you visit in person. Bring your property maps, proof of ownership, and a clear description of your goals. Face-to-face meetings with your conservation planner build the relationship needed for a successful application.

Ignoring Deadlines

EQIP batching period deadlines are firm. Applications received after the deadline are held for the next ranking period. Monitor your state NRCS website or stay in touch with your local office to know when deadlines are approaching.

Not Maintaining Documentation

Keep detailed records of all work performed, including before-and-after photographs, contractor invoices, equipment logs, and any herbicide application records. NRCS will verify practice implementation before issuing payment, and good documentation makes this process smooth.

EQIP and Tax Implications

EQIP payments are generally considered taxable income. However, the costs of implementing conservation practices are often deductible as farm expenses, which can offset the tax impact. Some landowners may also be eligible for cost-share exclusion under IRS Section 126.

Consult with a tax professional familiar with agricultural taxation to understand how EQIP payments will affect your specific situation.

The EQIP Timeline

Understanding the typical timeline helps set expectations:

From initial visit to first payment, the process typically takes 6 to 18 months. Plan accordingly and do not wait until you are ready to start work to begin the application process.

Frequently Asked Questions

Can I use EQIP funding on property I don’t own?

Yes, if you have a written lease agreement that covers the duration of the EQIP contract. The lease must demonstrate that you have control of the land and the right to implement conservation practices. The landowner must provide written permission.

How often can I apply for EQIP?

You can apply every year. You can also have multiple active contracts on different tracts of land. However, there are maximum payment limitations per contract and per producer that limit total funding.

Does EQIP fund forestry mulching?

Yes. Forestry mulching is an approved implementation method under several NRCS practice standards, including Brush Management (Code 314) and Forest Stand Improvement (Code 666). The practice standard specifies the outcome (brush removal, stand improvement), and forestry mulching is one of the accepted methods for achieving that outcome. See our forestry mulching guide for more details.

What happens if I don’t complete the work on time?

If you cannot complete the practices within the contract timeframe, contact your NRCS office immediately. Contract modifications and extensions are possible in many cases, but they must be requested before the deadline passes. Failing to complete contracted practices without an approved modification can result in repayment requirements.

Is EQIP funding first-come, first-served?

No. EQIP is competitive. Applications are scored and ranked, and funding is awarded to the highest-ranking applications until the available funds are exhausted. This is why application quality and practice bundling matter so much.