ACEP, Agricultural Conservation Easement Program
Major eligibility unlock: ACEP exempted from $900K AGI limit. Federal cost share rises to 65%, with up to 90% for socially disadvantaged farmers. Buy-protect-sell transactions eliminated.
What ACEP does
The Agricultural Conservation Easement Program (ACEP) provides financial and technical assistance for two types of permanent easements:
- Agricultural Land Easements (ALEs): limit non-agricultural uses on productive farm or grasslands
- Wetland Reserve Easements (WREs): protect, restore, and enhance wetlands
Easements are held by eligible entities (state agencies, Indian Tribes, accredited land trusts) under cooperative agreements with USDA.
What changed in the Farm Bill 2.0
Major changes, ACEP is now significantly more accessible:
1. AGI limit exempted
This is the headline change. Previously, ACEP eligibility was limited to persons and legal entities with average AGI under $900,000 (unless 75%+ came from farming). The Farm Bill 2.0 exempts ACEP from the AGI limit entirely and excludes ACEP income from the AGI calculation.
This unlocks ACEP for many large landowners who were structurally excluded.
2. Federal cost share raised
ALE federal cost share rises from 50% to 65% of fair market value (standard).
For socially disadvantaged farmers or ranchers holding 50%+ ownership: federal cost share rises to 90% of fair market value.
3. New low cost-share option
A new low cost-share option lets eligible entities pursue ALEs without USDA enforcement rights:
- Federal share: 25% of fair market value
- Eligible entity provides at least 50% in cash
- Entity uses its own terms and conditions (subject to USDA approval)
This is designed for operations where USDA enforcement involvement is unwelcome.
4. Buy-protect-sell transactions eliminated
Previously, an organization could buy land, take an ACEP easement, then sell the land to a farmer or rancher within 3 years. The Farm Bill 2.0 eliminates buy-protect-sell as an eligible ACEP structure.
5. Certification process simplified
Land trust certification under ACEP is simpler:
- Threshold lowered from 10 to 5 successful prior ALE projects
- Annual quality review of a sample of certified entities
- Eligibility expanded beyond traditional land trusts and states
6. Wetland Reserve Easements expanded
WREs gain:
- 30-year contracts available to socially disadvantaged farmers (previously Indian Tribes only)
- Repair, maintenance, and enhancement funding for existing WREs (up to 100% cost-share)
- Wetland Reserve Enhancement Partnership (WREP) must use at least 15% of WRE funds
7. Modification rules tightened
ACEP easement modifications now require:
- Support for long-term agricultural viability
- Conservation values preserved
- New de minimis adjustment process for typographical errors and minor changes (no longer counted as modifications)
Who ACEP matters for
- Landowners protecting working farmland from development: ALE easements
- Wetland landowners: WRE easements (especially with new repair funding)
- Socially disadvantaged farmers: 90% federal share, separate ranking
- Large landowners previously blocked by AGI limits: would become eligible if enacted
- Land trusts: easier certification, broader eligibility
What’s NOT in the bill
- No expansion of total ACEP funding
- No changes to easement duration (permanent or maximum under state law)
- No new easement types beyond ALE and WRE (forest easements are now in FCEP, separate program)
How to apply
ACEP applications go through eligible entities, not directly to USDA:
- Identify eligible entities in your area (state ag dept, accredited land trust, Indian Tribe)
- Begin conversation with eligible entity about your land
- Develop ALE plan or WRE plan in cooperation with entity
- Entity submits application to USDA on your behalf
- Negotiation and closing can take 12–24 months