Cultivating Wins for California’s Agricultural Lands and Farmers: American Farmland Trust’s 2025 Policy Report
The first year of the 2025-2026 California State Legislature concluded on Sep. 15, with thousands of bills moving through the legislative process. Despite a historic budget deficit and sweeping political shifts, lawmakers passed several bills that strengthen climate resilience, expand land access, and invest in the future of sustainable agriculture. Additionally, Governor Gavin Newsom’s administration worked to release administrative policies that will support the future of sustainable food systems and land access in California.
American Farmland Trust played a leading role in advancing sustainable agriculture policies across the Golden State by actively participating in numerous coalitions this past legislative session. Through these partnerships, AFT has helped shape legislation and programs that protect agricultural land, promote climate-smart practices, and strengthen the state’s agricultural systems for future generations.
Below, we have outlined the key provisions we followed during the first year of the 2025-2026 legislative session.
Cap-and-Invest Funding
On Sep. 19, Governor Newsom signed into law AB 1207 and SB 840, which reauthorized the Cap-and-Invest program as part of the 2025-2026 budget package. In addition to changing the name of the State’s “Cap-and-Trade” program to “Cap-and-Invest,” these bills extend funding for the Greenhouse Gas Reduction Fund (GGRF) until January 2046. Importantly, these bills ensure continued stable investment from the GGRF into the Department of Conservation’s Sustainable Agriculture Land Conservation (SALC) program.
SB 840 sunsets exist continuous appropriations by the end of this fiscal year (June 2026) and outlines a new spending plan for the GGRF. The new plan outlines investments in the State Responsibility Area prevention fee, establishes the Legislative Counsel Climate Bureau, dedicates $1 billion to High-Speed Rail, an additional $250 million to the California Air Resources Board (CARB), and allows the legislature to use remaining funds at their discretion through the annual Budget Act.
AFT, California Climate & Agriculture Network (CalCAN), and 18 other organizations advocated for the legislature to dedicate 15% of GGRF funds to the State’s Climate-Smart Agricultural programs, including the Healthy Soils Program, Climate Smart Agriculture Technical Assistance Program, and the State Water Efficiency and Enhancement Program, among others. In addition, AFT, CalCAN, California Rangeland Trust, California Farmland Trust, and others, advocated for maintaining SALC funding in the Strategic Growth Council’s (SGC) Affordable Housing and Sustainable Communities (AHSC) Program.
Funding for the SALC Program
The SALC Program is one of the primary ways the State is protecting agricultural land from development, planning a resilient food system, and building the capacity of community-based organizations to secure the state’s agricultural land base.
Under SB 840, $800 million is allocated to AHSC, with at least 10% dedicated to affordable housing. However, the bill does not specify how the remaining 90% will be distributed. Historically, SALC has received 10% of AHSC funding or 2% of overall GGRF expenditure, despite accounting for 15% of the state’s total Greenhouse Gas (GHG) emission reductions. As demand for SALC continues to grow, AFT remains committed to working with partners to ensure the program receives the funding it needs to meet increasing application demands.
Proposition 4 Funding
The budget Governor Newsom signed in June launched the first wave of spending from the $10 billion Proposition 4 Climate Resilience Bond approved by voters in November 2024. Of the $2.7 billion allocated for the fiscal year, several programs directly support farmers, ranchers, and land managers in building climate resilience and protecting working lands.
In September, the legislature passed, and Governor Newsom signed AB 105, a key budget trailer bill that finalized the FY2025-2026 California budget. Included in this budget was Proposition 4 funding.
The Proposition 4 Expenditure Plan authorized $153 million of the total $300 million allocated to Climate Smart Agriculture in the Proposition 4 Bond Package. The following table provides a breakdown of how the numbers were allocated by the Legislative Analyst’s Office (LAO). Some of these numbers have been rounded up.
| Program | FY25-26 Amount | Purpose |
|---|---|---|
| Healthy Soils Program (HSP) | $36 million | Supports soil health practices like composting, cover cropping, and reduced tillage to sequester carbon and improve resilience. |
| State Water Efficiency and Enhancement Program (SWEEP) | $38 million | Funds irrigation upgrades and water-saving technologies to improve drought resilience. |
| CA Farmland Conservancy Program (CFCP) | $7 million | Provides grants for agricultural conservation easements and land improvement projects to permanently protect farmland from development. |
| Certified Mobile Farmers Markets | $10 million | Expands access to fresh, local produce in underserved communities through mobile market infrastructure and outreach. |
| Year-Round Certified Farmers’ Markets | $10 million | Supports infrastructure and operational costs to extend farmers’ market availability year-round. |
| Urban Agriculture Grant Program | $19 million | Funds community-based food production, education, and green space development in urban areas. |
| Regional Equipment Sharing | $200,000 | Establishes shared-use equipment hubs to reduce costs and improve access for small and mid-sized farmers. |
| Tribal Food Sovereignty | $200,000 | Supports tribal-led food systems, including traditional agriculture, seed-saving, and food-access initiatives. |
| Research Farms at postsecondary education institutions | $14 million | Invests in university and college-based research farms to advance climate-smart agriculture and train future farmers. |
Legislation that would increase land access opportunities is vetoed.
AB 524, known as the Farmland Access and Conservation for Thriving Communities Act, was introduced in California’s 2025 legislative session and was authored by Assemblywoman Lori Wilson (D-Suisun City) to expand land access and conservation support for farmers. This bill passed the legislature—but was ultimately vetoed by the governor. This bill was introduced to support the design and implementation of $30 million for farmland access funding authorized as part of the 2024 Proposition 4 Bond. AFT worked alongside the Community Alliance for Family Farmers (CAFF) and the Land Equity Coalition to draft legislative language.
AFT, Yolo Land Trust, and San Benito Agricultural Land Trust submitted a public comment to the Strategic Growth Council’s Agricultural Land Equity Task Force. The comments focused on Goal 2: Protected and thriving agricultural lands. To view these comments in their entirety, click here.
Upholding the Integrity of the State’s Williamson Act – the country’s oldest current use taxation program
AB 1156 proposed to change the State’s Williamson Act Solar-Use Easement Program to allow landowners to remove water-scarce farms and ranchland from the Williamson Act to install large-scale renewable energy projects.
AFT and CA Farm Bureau successfully halted AB 1156 — for now. Assemblywoman Buffy Wicks agreed to place this bill in the inactive file. Although this bill passed both the Assembly and the Senate, it was not sent to Governor Newsom for signature this session. AFT is committed to working with the bill author’s office, CA Farm Bureau, and others to draft amendments that will ensure our working lands remain in agricultural production and farmers have opportunities to place solar development on fallow land without water resources. Both measures are needed for the state to meet its climate goals.
Changes to the California Environmental Quality Act (CEQA)
In 2025, California passed major CEQA reforms — AB 130 and SB 131 — that streamline housing development approvals but raise concerns about farmland and open space protection due to expanded exemptions. Tied to the state budget and signed into law on June 30, 2025, AB 130 and SB 131 introduced new exemptions and fast-tracking provisions aimed at accelerating housing and infrastructure development. While these changes may ease project delays, they also pose new challenges for farmland and ranchland conservation.
Key CEQA Changes include:
Infill Housing Exemptions: Projects up to 20 acres in incorporated cities or urban areas are now exempt from CEQA if they meet local zoning and planning standards.
Streamlined Review for Public Projects: Water system upgrades, wildfire fuel breaks, and advanced manufacturing facilities (e.g., EV plants) may bypass CEQA review.
Budget-Linked Passage: These reforms were embedded in budget trailer bills, making their approval essential to passing the state’s fiscal plan.
While the legislation excludes “natural and protected lands” from exemptions, the definition of what qualifies as “protected” remains narrow, and working lands like farms and ranches may face increased development pressure if they fall within urban boundaries or lack formal conservation status. These changes to CEQA have the potential to allow land that is rezoned to allow construction on prime/statewide important and locally protected lands. AFT is working with partners to fully understand what these changes mean and how we can work on amendments to ensure that comprehensive environmental reviews still take place on valuable agricultural land before it is developed.
Planning for 2026 Legislative Session
AFT is proud of the progress made towards protecting agricultural lands and building healthier communities in 2025. But the work doesn’t stop here. As we look ahead to 2026, we’re already engaging with partners, advocates, and community members to shape our legislative priorities. Your voice matters, and we want to build the future of thoughtful, strategic, and farm-focused policy together.
Please reach out to our Senior California Policy Manager, Chelsea Gazillo, at [email protected] if you would like to discuss becoming involved with our policy work.
