Colorado: Unlock Funding for On-Farm Stewardship Practices Through New Tax Credit - Applications Available in November

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Broomfield, Colo. ~ Broomfield, Colo. - In a move to support and incentivize sustainable land management practices, the Colorado Department of Agriculture (CDA) has announced the launch of the Agricultural Stewardship Tax Credit program. Starting in 2026, farmers and ranchers in Colorado will have the opportunity to receive a refundable state income tax credit for implementing practices that improve soil health, water efficiency, and create diverse ecosystems.

Governor Jared Polis expressed his support for the program, stating that agriculture is a vital part of Colorado's economy and way of life. He believes that this tax credit will not only benefit farmers and ranchers but also contribute to protecting the state's natural resources.

Under this program, agricultural producers can receive a maximum annual tax credit of $300,000 for up to three years based on the number and type of practices implemented and the acreage impacted. The CDA estimates that $3 million will be issued annually in tax credits to eligible producers who implement qualified stewardship practices. These credits can then be applied towards their state income taxes in 2026.

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Evanne Caviness, CDA's Conservation Services Division Director, emphasized the value of these practices beyond just improving farm viability. She stated that they also have positive impacts on soil health, water retention and quality, and biodiversity throughout the state. This further highlights Colorado's commitment to supporting sustainable and resilient agriculture.

There are 17 different practices eligible for a tax credit under this program, including both annual practices like no-till or managed grazing and perennial practices like overseeding or virtual fencing. Producers have the flexibility to choose which practices best suit their operation and increase profits.

Over the past year, CDA has worked closely with agricultural community stakeholders to ensure that the list of eligible practices reflects their needs and preferences. The diverse range of qualified practices takes into consideration Colorado's unique agricultural industry while promoting soil health and sustainability while maintaining economic profitability for producers.

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To provide more information about the program and the application process, CDA will be hosting two informational webinars on October 9th at 10 am and October 16th at 6 pm. Interested individuals can register for these webinars through the Zoom registration link or visit the CDA website for more details.

The Agricultural Stewardship Tax Credit is in line with CDA's strategic direction of Environmental Stewardship and Climate Resilience, as outlined in their Strategic Plan 2024-2027. This direction focuses on addressing environmental challenges, promoting voluntary adoption of regenerative and climate-smart practices, and advancing water resilience.

With this new opportunity, Colorado farmers and ranchers have a chance to not only improve their own operations but also contribute to the overall health and sustainability of the state's agricultural industry. The first round of applications will open on November 10th, and CDA encourages all eligible producers to take advantage of this funding opportunity.

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