In agricultural and environmental policy, green payments refers to payments made to producers as compensation for environmental benefits that accrue as a result of or in conjunction with their farming activities. These environmental benefits can include protecting wetland as too improve filtration or maintaining soil quality to provide a carbon sink.
The Conservation Security Program, authorized in the 2002 farm bill (P.L. 107-171, Sec. 2001- 2006), generally is viewed as the first green payments program in the United States, paying producers to provide conservation benefits on land from which food and fiber are being produced.[1]
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This article incorporates public domain material from Jasper Womach. Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition (PDF). Congressional Research Service.