Forest Conservation Easement Program (FCEP)
Brand-new forest easement program replaces the Healthy Forests Reserve Program. Two easement types: forest land easements (working forest) and forest reserve easements (habitat). Federal cost share up to 100% for permanent easements.
What FCEP does
The Forest Conservation Easement Program (FCEP) is a brand-new program created by the Farm Bill 2.0. It funds two distinct types of forest easements:
- Forest land easements: protect working forest land from non-forest conversion (similar to ACEP agricultural land easements but for forests)
- Forest reserve easements: protect forest ecosystems and species habitat (similar to the old Healthy Forests Reserve Program easements)
The program is structured around USDA partnerships with eligible entities, state agencies, Indian Tribes, and qualified nonprofit organizations, that hold and enforce the easements.
What replaces what
FCEP replaces the Healthy Forests Reserve Program (HFRP), which is repealed by the Farm Bill 2.0. Existing HFRP contracts remain in effect for their term, but no new HFRP enrollments will be accepted.
In structural terms:
- Forest land easements: new authority, no direct predecessor
- Forest reserve easements: replace HFRP
Cost share structure
The federal cost share is meaningfully more generous than its predecessors:
Forest land easements
- 50% of fair market value (standard)
- 75% of fair market value for socially disadvantaged forest landowners or land of special environmental significance
Forest reserve easements
- 100% of fair market value for permanent easements
- 50–75% of payment rate for non-permanent easements
- 100% cost-share for practices under permanent easements
- 50–75% cost-share for practices under non-permanent easements
Who qualifies
Eligible landowners
- Private forest landowners
- Indian Tribes (with specific definitions of tribal land tenure)
- Socially disadvantaged forest landowners (eligible for higher federal share)
Eligible land
Eligible land is defined as private forest land or land owned by an Indian Tribe that, if enrolled, would protect forest use and species habitat.
Eligible entities (who holds easements)
- State or local government agencies
- Indian Tribes
- Qualified nonprofit organizations (typically land trusts)
Easement types and durations
Forest land easements can be:
- Permanent (or maximum duration under state law)
- 30-year (Indian Tribes only, contracts)
Forest reserve easements can be:
- Permanent (or maximum duration under state law)
- 30-year easements (limited to 10% of program funds)
- 30-year contracts (Indian Tribes only)
Application priorities
Forest land easements give priority to:
- Easements that maintain working forest land
- Land with an existing forest management plan
Forest reserve easements give priority to:
- Land supporting endangered or threatened species (highest priority)
- Land supporting candidate species, state-listed species, special concern species, or species of greatest conservation need (second priority)
Funding
Mandatory CCC funding levels:
- FY2027: $25 million
- FY2028: $50 million
- FY2029: $50 million
- FY2030: $50 million
- FY2031: $65 million
Total over 5 years: $240 million.
This funding comes from the EQIP reduction (see EQIP page).
Why this matters
For private forest landowners, FCEP is one of the single biggest opportunities in the entire Farm Bill 2.0. The combination of:
- Permanent easement payments at 100% of fair market value
- 75–90% federal share for socially disadvantaged landowners
- Working forest preservation focus
- Newly defined and funded program
Makes FCEP attractive for landowners considering selling development rights, transitioning ownership, or protecting habitat.
Practical implications
If you own forest land and have considered an easement:
- Wait for USDA implementation: the program needs regulations before applications open
- Identify potential easement holders: land trusts and state forestry agencies in your area
- Develop or update a forest management plan: required for forest land easements
- Prepare documentation: title, survey, deed restrictions analysis, NEPA-relevant data
Implementation timeline
Realistically:
- Mid-2026: Senate considers, possible amendments
- Late 2026/early 2027: If signed into law, USDA begins regulation development
- Late 2027/2028: First applications likely accepted
- 2028+: Active enrollment