The factory farm gas industry—backed by major meat and dairy corporations—continues to thrive not because of market demand or climate benefits, but because of government-sponsored greenwashing. What was once sold as a climate solution is increasingly exposed as a thinly veiled subsidy to prop up industrial animal agriculture. And the latest boost comes courtesy of the so-called Big Beautiful Bill.

As we’ve detailed in our recent report, the promise of manure-based methane capture—often branded as “renewable natural gas” or “biogas”—masks an ugly truth: this model props up the worst practices of factory farming, including massive manure lagoons, extreme confinement, and no access to pasture. Far from reducing harm, factory farm gas locks in the very systems that are driving ecological collapse, antibiotic resistance, and the mistreatment of animals.

Big Beautiful Bill, Big Beautiful Boondoggle

Despite its catastrophic costs to the environment and rural communities, the factory farm gas industry has found a reliable ally in Congress. Buried within a sweeping House budget package—nicknamed the Big Beautiful Bill—was an extension of the Clean Fuel Production Credit (Section 45Z), a fuel-based tax credit that now runs through 2031.

Notably, as Ben Lilliston of the Institute for Agriculture and Trade Policy put it, “Within the House budget bill, Republicans wiped out most policies promoting renewable energy that were included in the nation’s biggest climate policy, known as the Inflation Reduction Act (IRA).” But factory farm gas? That got a golden ticket, courtesy of an extension of the Clean Fuel Production tax credit to 2031. The result is a tax policy that further enriches not just global gas corporations, but also big meat and dairy companies, the most polluting actors in agriculture.

How generous are these giveaways? A recent analysis found that 95% of the revenue from factory farm gas operations comes not from selling gas, but from public subsidies. This is not a business model—it’s a public cash transfer to an industry already responsible for rampant pollution, animal suffering, and rural disenfranchisement. In an interview with Sentient Media about the then-proposed legislation, Farm Forward’s Executive Director, Andrew DeCoriolis, stated that the bill is a “grab bag” for meat and dairy interests. 

There’s a Better Way: Reforming EQIP

Not all federal agricultural spending is misguided. Some policies—when structured correctly—can support farmers who are improving soil health, protecting animal welfare, and building more resilient food systems. That’s the vision behind the EQIP Improvement Act of 2025, introduced last month by Congresswoman Jahana Hayes (CT-05).

EQIP (Environmental Quality Incentives Program) is meant to help farmers adopt conservation practices. But for years, it’s been skewed toward the largest, most industrial operations—including factory farm gas projects that require massive manure lagoons to qualify. The EQIP Improvement Act would rebalance the program: prioritizing small and mid-sized farmers, rewarding truly effective conservation efforts, and giving states more flexibility to meet local needs.

This is exactly the kind of reform we need. Instead of funneling billions to the biggest polluters under the banner of “climate action,” Congress should invest in farmers who are doing the hard work of transition—those building a future of ethical, sustainable food production.

The Bottom Line

The rise of factory farm gas is not an energy revolution. It’s a government-sponsored greenwashing campaign for the meat and dairy industry. As long as Washington continues to give taxpayer dollars to entrench large-scale biodigesters, real reform will remain out of reach.

We need to stop rewarding pollution and start supporting farmers who do it right. The EQIP Improvement Act is a step in that direction—and it deserves your support.