The U.S. Department of Agriculture (USDA) is investing $3 million to support the development of wetland mitigation banks for farmers. Through the USDA’s Wetland Mitigation Banking Program (WMBP), wetlands are restored, created or enhanced, generating credits that can be purchased by producers looking to compensate for unavoidable impacts to wetlands at another location.  

WMBP awardees work with NRCS to develop a mitigation banking instrument that provides details for developing, establishing and operating a mitigation banking program. Priority will be given to banks in states with significant numbers of individual wetlands, wetland acres and conservation compliance requests. Based on NRCS data, these states are Georgia, Illinois, Indiana, Iowa, Michigan, Minnesota, Nebraska, Ohio, Pennsylvania, South Dakota and Wisconsin. 

City and county governments, organizations, tribal governments and other entities are eligible to apply. See the notice of funding on Grants.gov for a full list of eligible entity types and application details. Applications are due by September 8, 2026.

More About WMBP 

To participate in most USDA programs, farmers must comply with wetland conservation provisions, meaning they will not plant agricultural commodities on converted wetlands or convert wetlands to enable agricultural production. In situations where avoidance or on-site mitigation is challenging, the Farm Bill allows for off-site mitigation through the purchase of mitigation banking credits. Purchasing credits from a wetland mitigation bank provides a legal mechanism for farmers to maintain their eligibility for USDA program benefits if they convert agricultural wetlands. When a mitigation bank is established, the landowner retains ownership and use of the property, while a conservation easement protects the wetlands from incompatible activities. 

WMBP award recipients can use the funding to support the costs of developing and establishing a mitigation bank, like costs for site identification, development of a mitigation banking instrument, site restoration, land surveys, permitting and title searches, and market research. WMBP funding cannot be used to purchase land or a conservation easement. Awardees can request up to $1 million for a project. Projects may last up to four years. 

NRCS awarded the first WMBP grants in 2016. Since then, NRCS has awarded 39 projects supporting the creation or expansion of wetland mitigation banks in 14 states.  

To learn more about the Wetland Mitigation Banking Program, and how wetland mitigation banks work, visit the WMBP webpage.