California Governor Gavin Newsom on Friday announced $81 million to fund climate-smart agriculture projects for farmers across 55 counties.
The funding will help California producers save water, improve soil health, cut pollution and prepare for drought, the governor’s office said. Newsom made the announcement at the COP31 climate conference in Antalya, Türkiye.
The money comes from Proposition 4, a $10 billion climate bond that California voters approved in 2024. The bond includes $300 million designated for climate-smart agriculture, dedicating $65 million to improve soil health and $40 million to help farmers save water and energy.
The state is making the investment as the Trump administration canceled a $3.1 billion federal program meant to help farmers cut emissions and improve soil, the governor’s office said. The office also stated that Trump’s Iran war has driven up the cost of diesel and fertilizer.
The California Department of Food and Agriculture will administer the funds through two existing initiatives: the Healthy Soils Program and the State Water Efficiency and Enhancement Program. Regional groups will assist producers in securing the money and submitting project applications.
Since 2014, agricultural initiatives in the state have reduced pollution by 2.6 million metric tons and conserved 1.5 million acre-feet of water, according to the governor’s office. California generated $64.7 billion in agricultural sales in 2025, accounting for 11% of total U.S. agricultural sales.
“These funds help ensure that farmers and ranchers have the tools, technical assistance, and regional support needed to adopt practices that improve water efficiency, increase soil health, and support long-term sustainability,” CDFA Secretary Karen Ross said.
Details about future funding opportunities for producers will be available on the department’s website as agreements begin, the governor’s office said. The awards remain tentative until the department receives approval through the bond accountability process.