Federal program pays landowners $155K/year to stop farming and start grazing cattle.
S. 5277 — RANCH Act · Filed by Mike Rounds (R-SD) · 1 cosponsor · Introduced Aug 6, 2026 · Referred to committee
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What it does
This bill creates a federal program that pays landowners to convert cropland into grassland for cattle grazing. The government will pay 75% of typical crop-rental rates annually, plus 50% of the cost to establish native grasses, with bonus payments for using high-quality seed mixes or for beginning farmers. Up to 20 million acres can be enrolled in 10–15 year contracts, with automatic renewal into a related conservation program unless the owner opts out.
Why we flagged it
The bill's core mechanism is a direct-payment subsidy to landowners for converting cropland to grassland, structured as a conservation program but functioning primarily as income support for ranchers and farmers. The conservation framing is genuine but secondary to the financial transfer.
What the text implies
- The $155,000 annual payment cap per person may be circumvented through legal entities or family structures, creating potential for concentration of benefits among larger operations.
- Automatic enrollment into a related conservation program (section 1231 of the Food Security Act) after contract expiration locks land into long-term conservation use, reducing future agricultural flexibility without explicit renewal consent.
The full analysis lists 5 implications of this text.
Who stands to gain
Landowners and ranchers (direct annual rental and establishment payments); Beginning farmers and ranchers (bonus incentive payments); Native seed suppliers and agricultural contractors (indirect, through cost-share payments)