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

Broomfield, Colo. - There is a new opportunity starting in 2026 for Colorado farmers and ranchers to be compensated for their valuable environmental stewardship and sustainable land management. On November 10, the Colorado Department of Agriculture (CDA) will open the first round of applications for the Agricultural Stewardship Tax Credit, a first-of-its-kind program providing a refundable state income tax credit for farmers and ranchers who manage their land in ways that improve soil health, boost water efficiency, and create diverse and beneficial ecosystems.

"Agriculture is an important part of our economy and way of life. Our farmers and ranchers are true stewards of our lands and this tax credit supports their efforts to improve soil health, protect our water resources and more. I hope that farmers and ranchers around the state will take advantage of this funding opportunity," said Governor Jared Polis.

Per the authorizing legislation, ag producers are eligible to 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. CDA expects to issue $3 million annually in tax credits to producers who implement qualified stewardship practices. Producers applying this November will be required to implement practices throughout 2026, and can apply their earned tax credit towards their 2026 state income taxes.

"The value of these practices extends beyond improved farm viability for producers, benefiting the entire state through improved soil health, water retention and quality, and biodiversity," said Evanne Caviness, CDA's Conservation Services Division Director. "The tax credit incentive for Colorado's agricultural producers to invest in stewardship practices is a testament to our state's commitment to supporting sustainable and resilient agriculture."

There are 17 different practices eligible for a tax credit, including both annual practices (like no- or minimized-till or managed grazing) and perennial practices (like overseeding or virtual fencing). Other practices, such as nutrient and irrigation management are also eligible. This gives producers the flexibility to mix and match, making the choices that best fit their operation and help increase profits.

Over the past year, CDA worked with agricultural community stakeholders to ensure the list of eligible practices reflects how farmers and ranchers want to steward their land. The broad range of qualified practices takes into consideration the diversity of Colorado's agricultural industry and aims to enhance the soil health and sustainability of ag operations while ensuring economic profitability for producers.

CDA will hold two informational webinars, featuring the same content, to describe the program, present a walkthrough of the application process, and answer any questions from potential applicants.

• October 9th at 10 am
• October 16th at 6 pm

Register at the Zoom registration link or visit our website to learn more about qualified stewardship practices, use a tax credit calculator to see estimates of how much you could receive, and more.

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

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