US HB6969

Establishes a demonstration program providing direct payments to agricultural producers who implement conservation practices in up to 30 eligible watersheds nationwide, with no more than 2 per state (Tribal land watersheds exempt from state limits)

Contracts run 3-5 years, with payments calculated per acre and per animal unit based on adoption costs, income foregone, long-term maintenance, and environmental benefits including carbon sequestration

Limited resource and socially disadvantaged farmers and ranchers receive 15% higher payment rates, with 10% of total funds reserved for these producers

Appropriates $1 million for FY2026 for program setup, then $150 million annually for FY2027-2029 from the Commodity Credit Corporation

Requires annual reports to Congress on enrollment numbers, environmental benefits, greenhouse gas reductions, and barriers to adoption in the animal feeding industry