What to Watch in 2026: State Legislative Trends in Agriculture, Energy, and Conservation
As states prepare for their 2026 legislative sessions, several policy trends are emerging across agriculture, conservation, and energy—areas that significantly influence organizations working in sustainable land management, rural economies, and environmental resilience. These may not be the most high-profile issues for every state, but they are central to the work of many mission-driven organizations navigating today’s environmental and economic landscape.
Broadly, legislatures are entering the year with tightening fiscal conditions. After several years of strong revenue and substantial federal support, states are now seeing slower growth and preparing for reduced flexibility in their budgets. NCSL’s recent analysis notes that many states are shifting to “cautious spending plans” while adapting to smaller or more targeted federal contributions.
This fiscal recalibration—along with shifting federal responsibilities—will shape debates across agriculture, energy, and natural resources in notable ways.
Agriculture: Economic Stability, Land Access, and Resource Security
Producer groups across the spectrum—including Farm Bureaus, Farmers Union chapters, commodity organizations, and state departments of agriculture—are elevating similar themes as legislatures consider 2026 agendas. These priorities reflect broad concerns shared by both large and small producers, regardless of region or production system.
1. Risk Management and Farm Viability
Agricultural producers continue to face volatile markets, heightened climate risk, and uncertainty around long-term federal support. State governments are increasingly revisiting risk-management tools that complement federal programs, such as:
Grain indemnity funds
State disaster assistance
Input availability and supply-chain reliability
On-farm infrastructure support
Several states have recently modernized indemnity programs in response to market disruptions, a trend likely to continue as producers seek more predictable safeguards against catastrophic losses.
2. Land, Taxes, and Farm Transition
Access to land and the cost of holding it remain major concerns. State legislatures are expected to examine:
Property-tax assessment formulas
Estate-tax exemptions affecting intergenerational farm transfer
Foreign ownership restrictions
Incentives for beginning farmers and land-link programs
These issues matter across producer types—from corporate operations to small family farms—and are consistently identified by both Farm Bureau and Farmers Union members as foundational to long-term agricultural viability.
3. Water, Soil, and Environmental Stewardship
Water availability, drainage management, drought resilience, and nutrient policy continue to drive state-level conversations. Increasing attention to environmental health issues—particularly PFAS contamination—has created additional urgency.
NASDA’s 2025 policy platform underscores this by identifying PFAS and pesticide regulation among the top issues for state agricultural departments nationwide.
States are also evaluating or expanding:
Voluntary conservation programs
Soil-health incentives
Cover-crop and nutrient-management programs
State-level water-quality strategies
These trends point toward a continued focus on resilience, stewardship, and the economic sustainability of working lands.
Energy: Reliability, Governance, and Infrastructure Pressure
Rising electricity demand—driven by data centers, manufacturing expansions, electrification, and AI infrastructure—is placing new pressure on state energy systems. NCSL anticipates that states will face increasing load growth, heightened strain on aging grids, and growing expectations for resilience.
This environment is giving rise to several notable legislative directions.
1. Reforming Public Service Commissions
Utility governance is becoming a central topic as states evaluate whether public service commissions (PSCs) are equipped to manage rapid energy-sector change. Several states are already proposing adjustments to PSC structure, authority, or responsibilities:
New York: Bills aim to expand PSC membership, strengthen conflict-of-interest rules, and clarify the commission’s responsibility to protect ratepayers. Some lawmakers have proposed replacing the PSC entirely.
Florida: Proposed legislation would revise PSC procedures and alter how allowable utility returns are calculated.
Kentucky: Legislative proposals focus on additional oversight and new review standards tied to plant retirements and grid planning.
More states are expected to take up similar governance questions in 2026 as they navigate the intersection of affordability, reliability, and the energy transition.
2. Grid Reliability and Diversified Resource Planning
Stakeholders across the energy ecosystem are urging legislatures to confront infrastructure needs head-on. Emerging trends include:
Expanded transmission and distribution investment
Resilience planning for extreme weather
Revised resource-adequacy requirements
Evaluation of diversified resource portfolios
Exploration of geothermal energy, storage technologies, and other underutilized resources
Affordability remains a driving concern, suggesting that states may pursue regulatory reforms and targeted incentives rather than large-scale new spending.
Conservation & Natural Resources: Funding Models and Environmental Health
States continue to face growing expectations around water security, land stewardship, outdoor access, and environmental health. With many legislatures operating under tight fiscal constraints, new funding models are receiving heightened attention.
1. Conservation Funding Through Sales Taxes and Ballot Initiatives
Several states already dedicate portions of sales tax—or revenue from specific categories—to conservation, and more states are exploring similar approaches.
Examples include:
Minnesota and Missouri: Longstanding conservation sales taxes supporting outdoor heritage, land conservation, and parks.
Texas: A recently approved amendment dedicating revenue above specified thresholds to the Texas Water Fund.
Massachusetts: A developing ballot initiative (“Nature for All”) that would dedicate sales-tax revenue from outdoor recreation equipment to statewide conservation, land protection, and recreational access.
National conservation groups—including those representing sportsmen, land trusts, and outdoor-industry partners—are increasingly promoting these models as reliable, voter-supported funding mechanisms.
2. PFAS, Wildlife Funding, and Water Quality
PFAS contamination is a major area of anticipated legislative activity. NCSL highlights PFAS, food safety, and environmental health as key 2026 priorities affecting both urban and rural communities.
Additional natural-resource topics gaining traction include:
Stable funding for wildlife and fisheries agencies
Watershed-scale water-quality strategies
State-level climate adaptation and disaster mitigation investments
These debates demonstrate an increasing convergence of public health, environmental protection, and rural economic stability.
Implications for Organizations Working in These Areas
Organizations working across agriculture, conservation, and energy can expect 2026 sessions to emphasize practicality, fiscal responsibility, and implementation-focused solutions. Several through-lines are likely to shape successful engagement:
Legislators will prioritize grounded, actionable proposals.
Programs that deliver clear, measurable outcomes with modest administrative demands will have greater traction.Cross-sector collaboration will open more policy doors.
Issues like soil health, water quality, PFAS remediation, energy reliability, and land access cut across traditional policy silos.Implementation capacity will be a differentiating factor.
Many states are willing to explore innovative ideas but have limited staff capacity to operationalize them—making integrator and project-management roles increasingly valuable.
This combination of fiscal conservatism, infrastructure demand, and environmental pressure will shape state policymaking in meaningful ways throughout 2026.