Farm conservation efforts will receive a $20 billion bonus from the climate, health and tax bill

The bill has drawn mixed reviews from food and agribusiness groups, with the American Farm Bureau Federation and others opposed to the tax increase that would be used to pay for the package. Some business groups have criticized the provisions, which they say would increase taxes on many farmers and ranchers and make food and other supplies more expensive for restaurants.

The programs, which currently have a long waiting list, help farmers improve the health of their soil by reducing greenhouse gas emissions by using environmentally friendly practices, such as expanding cover crops between harvests to improve soil quality.

Some programs help farmers and ranchers plan and implement new projects, while others create partnerships between farmers and other groups, including nonprofit organizations.

“We’re taking proven programs that make smart investments,” Rep. Abigail Spanberger (D., Va.), who chairs the House Agriculture Committee’s conservation panel, said in an interview before the bill passed. “These vitally important pilot programs are getting significant investment in this bill as part of our efforts to fight climate change.”

GOP lawmakers have opposed funding conservation programs on Capitol Hill through legislation passed along party lines. The programs are typically funded in the farm bill, a multi-year package that sets federal farm policy and funding for nutrition benefits and usually has strong bipartisan support.

Making the farm bill “requires a lot of discussion and a lot of give and take,” Sen. Kevin Cramer (R., ND) said in an interview. He said lawmakers will weigh funding needed to support farmers, conservation and nutrition programs. “You hit that balance—I think it’s really not good for the farm bills going forward, and we’ve got to get that back somehow,” he said.

Supporters say the new funding will help compensate farmers and ranchers for some of the steps they are taking to increase sustainability and reduce emissions from their land and livestock.

“There’s a lot of demand for the programs,” said Paul Bleberg, senior vice president of the National Milk Producers Federation, praising the funding for conservation programs.

The bill directs the Department of Agriculture to prioritize “climate-smart” practices in allocating the new funds, such as efforts to reduce methane emissions from slaughtering cattle and improve their diets. Beef and dairy cattle, along with other farm animals, contribute more than a quarter of the nation’s methane emissions, according to the Environmental Protection Agency. But some GOP aides worry that lawmakers have given the administration too much power over how the money is spent. Some scholars have questioned whether these existing programs are the most effective way to curb agricultural industry emissions.

The package will direct $14 billion to help rural communities transition to clean energy sources; $5 billion for forestry programs, including wildfire prevention; And $4 billion to fight drought, Sen. Kirsten Sinema (D., Ariz.) and other Western state lawmakers pushed late before it passed the Senate.

A law named the Inflation Reduction Act was passed in 2010. Passed both classes A majority vote of the Senate allows it to pass with the Vice President using a special process known as reconciliation

Kamala Harris

casting a separation vote.

Most bills need 60 votes in the Senate, which is currently split 50-50 between the two parties. Republicans unanimously opposed the package in both chambers.

Democrats have argued that the climate crisis requires immediate action, and that the funded conservation programs in the bill are both voluntary and popular.

The Farm Bureau praised the funding for conservation programs but criticized the bill’s tax provisions.

“Farmers and ranchers support voluntary, market-oriented programs that help the environment, making farms economically sustainable,” said Zippy Duvall, the group’s president, in a statement.

A spokeswoman for the group said the late increase could be reduced by $250,000 for a two-year extension of the business loss control policy, which would have a significant impact on farms and ranches.

The National Restaurant Association said the bill’s new 15% lower corporate income tax is expected to hit large, profitable companies. Tax increase for some producers And producers of poultry, meat, frozen food, soft drinks and alcohol, increasing costs for restaurants.

“The passage of this bill will result in higher supply costs for restaurants already struggling to weather the economic storm,” group spokesman Sean Kennedy said in a statement.

Democrats say the tax provisions in the package are aimed at making sure wealthy Americans and big, profitable companies are paying their fair share of taxes.

Write Christina Peterson b kristina.peterson@wsj.com