Guide for Forest Landowners Passed House

Forest Landowners Guide to the Farm Bill 2.0

Brand-new Forest Conservation Easement Program (FCEP) replaces HFRP. State and Private Forestry programs reauthorized. NEPA categorical exclusions affect federal forest projects. The biggest forestry farm bill in years.

Why this matters for you

The Farm Bill 2.0 is one of the most consequential farm bills for private forest landowners in years. The combination of:

Brand-new Forest Conservation Easement Program (FCEP)
Significant Title VIII forestry investments
ACEP and EQIP changes affecting forest land
Wildfire mitigation funding

Makes this a critical bill to understand.

The biggest single opportunity: FCEP

The Forest Conservation Easement Program (FCEP) is brand new. It funds two distinct types of forest easements:

Forest Land Easements

Protect working forest land from non-forest conversion. Federal cost share:

50% of fair market value standard
75% for socially disadvantaged forest landowners or special environmental significance
30-year contracts available for Indian Tribes

Forest Reserve Easements

Protect forest ecosystems and species habitat. Federal cost share:

100% of fair market value for permanent easements
50–75% for non-permanent easements (limited to 10% of program funds)
100% cost-share for practices under permanent easements

Funding levels

Year	Mandatory funding
FY2027	$25M
FY2028	$50M
FY2029	$50M
FY2030	$50M
FY2031	$65M

What replaces what

HFRP repealed: functions absorbed into FCEP
Existing HFRP contracts continue under their original terms

Other forestry provisions

Title II, Conservation

ACEP exemption from AGI limits, relevant for forest landowners with diverse income
RCPP includes wildlife connectivity and forest projects

Title VIII, Forestry

NEPA categorical exclusions expanded (mostly affects federal land)
Wildfire mitigation funding
State and Private Forestry reauthorized
Forest Stewardship Program continued
Forest Legacy Program continued

Practical guidance for forest landowners

Step 1: Determine your goals

What do you want from your forest land?

Working forest (timber harvest, future revenue)
Habitat protection
Family heritage (multi-generation ownership)
Permanent legacy (easement-protected)

Step 2: Get a forest management plan

For most federal forestry programs, you’ll need a current forest management plan. State forestry agencies and consulting foresters can help develop one. The Forest Stewardship Program funds plan development.

Step 3: Identify potential easement holders

For FCEP, ACEP, or Forest Legacy easements, you need an “eligible entity” to hold the easement:

State forestry agencies
Land trusts (accredited)
Indian Tribes (for tribal land)

Step 4: Apply through your easement holder

Easement applications go through the holder, not directly to USDA.

Step 5: Be patient

Easement processes are slow. Negotiation, appraisal, title work, NEPA review, and closing can take 12–24 months.

What about wildfire?

If you’re in a wildfire-prone region:

Hazardous fuels reduction funding through state forestry agencies
Joint Chiefs Landscape Restoration Partnership for landscape-scale projects
Community Wildfire Defense grants for community planning
State and Volunteer Fire Assistance for local fire response

What about timber harvest?

The bill doesn’t directly subsidize timber harvest, but related provisions:

NEPA categorical exclusions may speed Forest Service timber sales (affecting market dynamics)
Forest Service forest plan timeline acceleration
ESA consultation streamlining

What about taxes?

Federal tax treatment of forest land is governed primarily by the IRS, not USDA. The farm bill doesn’t change tax treatment, but easements have significant tax implications. Consult a tax advisor familiar with conservation easements.

State-by-state considerations

Significant private forest land states:

Maine: major working forest opportunities for FCEP
New Hampshire / Vermont: northeastern forests
Pennsylvania / West Virginia: Appalachian forests
North Carolina / South Carolina / Georgia: Southern pine
Mississippi / Alabama / Louisiana: Deep South timber
Wisconsin / Michigan / Minnesota: Lake States hardwoods
Washington / Oregon / Idaho / Montana: Pacific Northwest

Implementation timeline

FCEP needs USDA regulations before applications open. Realistic timeline:

Mid-2026: Senate considers bill, possible amendments
Late 2026/early 2027: If signed, USDA begins regulation development
Late 2027/2028: First FCEP applications likely accepted
2028+: Active enrollment

In the meantime: develop your forest management plan, identify potential easement holders, and prepare documentation.

Get notified when this changes

The Senate could amend this. Get an email when there's a material update.