California Commits $6.3M to Transform Dairy Emissions — Setting a National Standard for Agricultural Climate Action

California’s agricultural sector is once again at the forefront of climate innovation as the California Department of Food and Agriculture (CDFA) announced a new $6.29 million investment to accelerate methane reduction across dairy and livestock operations statewide. This targeted funding, allocated through the state’s climate investment framework, underscores California’s commitment to cutting potent greenhouse gases while supporting sustainable farm practices and rural economic resilience.

Strategic Funding to Reduce Methane from Manure Management

The newly awarded funds will support seven distinct methane mitigation projects across California’s dairy and livestock industry, addressing one of agriculture’s most significant sources of climate pollution. In total, the CDFA’s Office of Agricultural Resilience and Sustainability (OARS) is investing $6.29 million as part of California Climate Investments, the state’s Cap-and-Invest initiative that channels greenhouse gas reduction dollars into community and environmental benefit programs.

Five of the seven awards — totaling approximately $3.69 million — will go to projects under the Alternative Manure Management Program (AMMP), which helps farms adopt manure handling practices that avoid methane formation in the first place. This includes the implementation of alternative manure treatment techniques such as solid separation, dry scrape systems, and compost-based strategies that reduce the amount of manure stored in anaerobic conditions where methane is rapidly produced.

Harnessing Technology: Digesters to Capture and Repurpose Methane

The remaining $2.60 million in grant funding will support two projects under the Dairy Digester Research and Development Program (DDRDP), which subsidizes the installation and optimization of anaerobic digesters — advanced technologies that capture methane released from stored manure and convert it into renewable energy, such as renewable natural gas (RNG), electricity, or even hydrogen. By capturing methane that would otherwise enter the atmosphere, digesters provide significant climate benefits while creating potential new revenue streams for participating farms.

Measurable Environmental and Community Benefits

Collectively, the seven projects funded in this round are expected to reduce more than 24,300 metric tons of carbon dioxide equivalent (CO₂e) annually, roughly the same impact as removing thousands of conventional passenger vehicles from California roads each year. Beyond climate benefits, the projects will deliver improved nutrient management, reduced odors and other air pollutants, enhanced water quality protection, and expanded compost production capacity — outcomes that strengthen both environmental health and local agricultural economies.

This multi-benefit approach reflects California’s recognition that successful climate solutions in agriculture must deliver environmental, economic, and community outcomes simultaneously, particularly in regions that bear disproportionate burdens from air pollution and limited economic opportunity.

Leadership in Agricultural Climate Policy

California’s continued investment in dairy methane reduction reaffirms its role as a national and global leader in agricultural greenhouse gas mitigation. With the dairy sector traditionally contributing a significant share of the state’s agricultural emissions, these targeted funds support ongoing efforts to achieve the state’s methane reduction goal of 40 percent below 2013 levels by 2030.

State officials emphasize that dairy farmers and livestock producers are critical partners in climate action; these investments are designed to accelerate on-farm adoption of climate-smart practices while maintaining the economic viability of one of California’s signature agricultural industries.

Looking Ahead: Scaling Climate Solutions Across the Sector

The latest funding round adds to decades of incremental progress in California dairy methane reduction efforts. Since the inception of the AMMP and DDRDP programs, hundreds of projects have been supported, cumulatively reducing millions of metric tons of greenhouse gases and advancing renewable energy production on farms statewide.

As climate priorities intensify and global markets increasingly reward sustainable agricultural production, California’s model — combining targeted public finance with private investment and on-farm innovation — offers a blueprint for agricultural sectors nationwide seeking to reduce emissions without compromising productivity or rural economic health.

Select Wishlist