Unlocking the Potential of Soil Carbon Amendments Through the USDA EQIP Code 366 Program

October 16, 2025

Soil health is a cornerstone of sustainable agriculture, and the USDA’s Natural Resources Conservation Service is taking steps to support it through Conservation Practice Standard Code 336. This initiative, part of the Environmental Quality Incentives Program (EQIP), offers financial incentives to land managers who apply soil carbon amendments, such as compost, biochar, and blended materials, to improve soil quality and sequester carbon. For compost and biochar producers, this program could be a significant driver of demand for compost and biochar products that meet USDA standards for soil carbon amendments.

Why Soil Carbon Amendments Matter
The USDA’s Code 336 program enhances soil organic matter, increases carbon sequestration and soil carbon stocks, improves soil aggregate stability, and supports healthy soil ecosystems. These benefits contribute to long-term agricultural productivity and align with broader climate resilience goals.

Reimbursement Rates and Financial Incentives
Reimbursement rates vary by state and are higher for historically underserved (HU) land managers. EQIP covers the cost of purchasing, transporting, and applying soil carbon amendments. For example, in Massachusetts, reimbursement for 100% biochar is $211.37 per cubic yard, while HU land managers receive $253.64. Blended compost/biochar options and small-area applications are also eligible, with rates adjusted accordingly.

Here’s a snapshot of some Massachusetts EQIP rates:

Eligible Land Types in USDA EQIP Code 366
The program applies to a wide range of land uses, including:

• Cropland
• Pasture
• Rangeland
• Forest
• Developed land
• Farmsteads
• Associated agricultural lands

Landowners are responsible for planning and implementing the amendment applications, including securing necessary permits. EQIP may also reimburse planning and testing costs, provided the soil at the proposed site is evaluated and found to need amendment.

Standards for Compost and Biochar in USDA EQIP Code 366
To qualify for reimbursement, amendments must meet specific criteria, including:

Compost Requirements

• Must be produced via controlled aerobic decomposition
• Should carry the US Composting Council’s Seal of Testing Assurance (STA) or meet USDA-defined parameters
• Must be free of contaminants like glass, plastic, and metal

Biochar Requirements

• Must be produced through pyrolysis or gasification at temperatures above 350°C
• Should be IBI-certified or meet USDA standards
• Origin and production method must be documented

Conclusions About USDA EQIP Code 366
The USDA’s EQIP Code 336 program offers a valuable opportunity for land managers to enhance soil health while receiving financial support. By encouraging the use of compost and biochar, the program promotes sustainable agriculture and helps build a robust market for carbon-based soil amendments.

For compost and biochar producers, this program could be a significant driver of demand for products and support environmentally beneficial practices across many land uses.

Additional Resources:

• Natural Resources Conservation Service – Soil Carbon Amendment
• Ask the Author – SCS’s Greg McCarron is pleased to support those interested by answering your questions
• Organics Management and Composting