In 2017, the California Healthy Soils Program (HSP) was launched with the goal of sequestering carbon, reducing greenhouse gas (GHG) emissions, and improving soil health in the state. The HSP consists of an Incentives Program, which provides farmers and ranchers with incentives to adopt soil health practices, and the Demonstration Projects Program, which funds on-farm soil health demonstration projects. The HSP was established by California Senate Bill 859, which became law in 2016.
“Sec. 4 – 569. (a) (1) … The program shall seek to optimize climate benefits while supporting the economic viability of California agriculture by providing incentives, including, but not limited to, loans, grants, research, and technical assistance, and educational materials and outreach, to farmers whose management practices contribute to healthy soils and result in net long-term on-farm greenhouse gas benefits.”
This bill defines healthy soils as follows:
““Healthy Soils” means soils that enhance their continuing capacity to function as a biological system, increase soil organic matter, improve soil structure and water- and nutrient-holding capacity, and result in net long-term greenhouse gas benefits”
The HSP is overseen by the California Department of Food and Agriculture (CDFA). The California Climate & Agriculture Network (CalCAN) provides oversight and evaluation on the HSP. CalCAN is a coalition of sustainable farming organizations that advocate for policy to support farm resilience.
HSP Incentives Program
The Healthy Soils Incentives Program provides financial incentives to farmers and ranchers for implementing conservation management practices that build soil health, sequester carbon, and reduce GHG emissions. These practices include, but are not limited to, cover cropping, mulching, no-till, reduced-till, compost application, and conservation plantings. HSP Incentives Program applicants and grantees have access to free technical assistance from their choice of over 30 CDFA funded providers.
HSP Demonstration Projects
The HSP Demonstration Projects fund on-farm demonstration projects that either showcase or collect data on conservation management practices that build soil health and mitigate GHG emissions. The Demonstration Projects are conducted in a more scientific manner with treatment (T) and control (C) sites. Grants cover two categories of projects, both of which implement conservation management practices over the course of three years. Type A projects are required to conduct analysis on the costs and benefits of the implemented practices and measure and report on resulting GHG emissions, soil organic matter, and crop yields. Type B projects are only required to conduct cost/benefit analysis and report on soil organic matter over the course of the three years.
HSP Pilot Block Grant Program
In 2022, the California Department of Food and Agriculture announced development of a pilot Block Grant Program, where non-farm entities can receive grants to disburse funds to beneficiaries for on-farm projects. Public comments on the program were received in late 2022.
Funding
Funding for the Healthy Soils Program has changed year to year. In 2017, 100% of funding for the HSP was sourced from the Greenhouse Gas Reduction Fund (GGRF). In 2018, the HSP was funded by the GGRF, the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All Act of 2018, and California Climate Investments (CCI). The 2020 HSP was also funded by the GGRF and the CCI, and, in 2021, the Program was funded by allocations from the California State Budget and the GGRF.
Greenhouse Gas Reduction Fund (GGRF)
The Greenhouse Gas Reduction Fund (GGRF) was established in 2012 by AB 1532. The Fund is used to facilitate the means of GHG emissions reductions while maximizing economic, environmental, and public health benefits to the state. SB 535, another key piece of 2012 legislation to the GGRF, requires that 25% of the GGRF funds be used for projects that “provide benefits to disadvantaged communities” and that 10% of the funds go “to projects located within disadvantaged communities.”
The AB 1532 was preceded by AB 32, the California Global Warming Solutions Act of 2006, which required the reduction of GHG emissions to 1990 levels by 2020. Money for the GGRF is generated by the Cap-and-Trade Program allowance auctions and the legislature appropriates money from the GGRF to administering agencies for programs that facilitate the reduction of GHG emissions and further the purpose of AB 32.
California Climate Investments (CCI)
The California Climate Investments (CCI) is supported with fund allocations from the GGRF (proceeds from California’s Cap-and-Trade Program for GHGs). CCI facilitates investment into programs that support the reduction of GHG emissions and further the State’s climate goals over three key areas: Transportation & Sustainable Communities, Clean Energy & Energy Efficiency, and Natural Resources & Waste Diversion. The Cap-and-Trade Program proceeds have allocated $66 million dollars to the Healthy Soils Program as of November 30, 2021.
Image: Visual of how proceeds from the Cap-and-Trade Program cycle through CCI and its investments
Source: California Climate Investments Website
Results
The Healthy Soils Program incentivizes a wide range of soil health and carbon sequestration practices across its two grant programs. As of March 2023, the CDFA has awarded $106.3 million in grant funds to 1,600 projects as part of the HSP. These projects are estimated to have sequestered over 1.1 million metric tons of CO2e and built soil health on over 170,000 acres.
[The] HSP incentivizes a diverse range of practices, with compost application by far the most popular.
– Key Finding #4 from the CalCAN HSP Progress Report (December 2020)
According to a December 2020 Progress Report on the Healthy Soils Program by CalCAN, 72% of funded HSP Incentives projects were implementing compost application (see Figure 1), making it the most popular practice, and outpacing implementation of other soil health practices such as cover cropping (36%), hedgerow planting (16%), and mulching (16%).
The Demonstration Projects program has supported 20-30 projects each year, with 55% of sites incorporating compost into their projects, according to November 2021 figures. And the Incentives Program has yielded about 70% of its funded projects incorporating compost, according to November 2021 figures.
Figure 1: Percentage of Incentives Projects Implementing Each Practice (2017-2020)
Source: California Healthy Soils Program Progress Report (December 2020)
CalCAN features examples of projects and farmers using healthy soils practices on their website and interactive map. Examples of funded projects include:
- JSM Organics received a HSP Demonstration grant of over $248,000 in 2018 to demonstrate and study the impacts of compost and mycorrhizal fungi on GHG emissions, soil organic matter, and crop yield.
- Benito Valley Farms was awarded $75,000 to support compost application and hedgerow planting in order to increase soil organic matter and reduce pesticide use on their Asian vegetable farm.
- Alexandre Family Farm has been awarded two HSP Incentives grants, totaling almost $800,000, to implement composting practices on their organic dairy and pasture-raised chicken farm.
More Information:
- Healthy Soils Program (HSP) Homepage – California Department of Food and Agriculture
- Healthy Soils Program (HSP) Overview – CalCAN
- HSP Fact Sheet – CalCAN
- HSP Progress Report December 2020 – CalCAN
- California Climate Investments Fact Sheet – Berkeley Law
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Original post from May 3, 2022
Updated March 29, 2023