In a time when the changing climate demands that we bend the curve away from large-scale factory farming, the federal government is heavily investing in a scheme that does little to address the root causes of environmental harm and can even strengthen industrial animal farming: Factory Farm Gas (FFG).

FFG, marketed as “renewable natural gas,” has enjoyed millions of dollars of government subsidies and incentive programs in recent years.

However, to double down on FFG is to double down on a strategy that perpetuates the very system it claims to mitigate—massively confined, industrial animal farming.

Our new reports, “Gaslit by Biogas: Big Ag’s Reverse Robin Hood Effect” and “The ‘Biogas’ Plot: Fueling Factory Farms in the Midwest,” detail this phenomenon and were recently cited in a powerful Vox piece.

What Is Factory Farm Gas?

FFG is gas captured from the massive cesspools of waste generated by concentrated animal feeding operations (CAFOs)—-factory farms. These operations are touted by industry as exciting renewable energy sources and as a plausible replacement for fossil fuels. They use devices called anaerobic digesters to capture methane gas from cesspools and process the waste into “biogas.” After further refinement, the gas is used to generate electricity and heat.

We don’t deny the basic fact that anaerobic digesters capture methane, nor do we deny the urgency of reducing methane pollution. The problem is that FFG subsidies promote the entrenchment and expansion of industrial animal agriculture while doing nothing to address one of the most significant methane emissions from animals—enteric fermentation.

Despite its greenwashed veneer, FFG doesn’t meaningfully address the harms of factory farming; instead, it obfuscates the pollution problem while funneling public money to some of the worst offenders in industrial agriculture.

Subsidies for Factory Farm Interests

Federal and state subsidies and incentives for FFG have exploded in recent years. In 2024, we received government data via a Freedom of Information Act (FOIA) request. Analysis revealed that the 2023 federal value funneled to FFG exceeded $150 million, including grants, low-interest loans, and tax incentives under the Inflation Reduction Act (IRA). In 2023, programs like the USDA’s Rural Energy for America Program (REAP), which includes funding for truly necessary programs like on-farm wind and solar, saw an over 2,600 percent year-over-year increase in biogas-related grants after the IRA’s passage.Unsurprisingly, private investment is surging alongside these subsidies. FFG companies are cashing in on tax credits and government-backed loans, projecting tens of millions of dollars in benefits in the coming years.

A System by and for the Biggest Polluters

The nature of FFG collection means that some of the worst CAFO practices—like mass animal confinement and manure cesspools—are necessary to make such operations viable. Accordingly, subsidies for FFG disproportionately benefit the largest and most environmentally destructive factory farms. For example:

• Our analysis of three years of state grants shows that dairy digester projects funded by the state of California were “fed” by an average of ~7,500 cows.
• Similarly, in a national dataset, FFG operations “fed” by pig manure reported operations involving between 14,000 and nearly 80,000 animals.

These subsidies not only support the status quo but may actively encourage the expansion of CAFOs and potentially drive out small, independent pasture-based farmers. This “reverse Robin Hood effect” of FFG means public funds are being diverted to the wealthiest agricultural corporations and interests.

Doubling Down on Subsidizing CAFOs

The federal government is doubling down on public incentives for FFG despite major critiques from legislators. In 2024, for example, a coalition of 15 members of Congress sent a letter to then Secretary of Agriculture Tom Vilsack expressing concern over the USDA’s inclusion of FFG in climate-related programs. Their concerns were clear: Incentivizing FFG risks consolidating the agricultural sector and contradicting climate goals. Secretary Vilsack’s response—which Farm Forward received via FOIA request—failed to meaningfully address these concerns while reaffirming a commitment to using manure digesters. Given his past role as a lobbyist for the dairy industry, Vilsack’s support for these subsidies is hardly surprising.

Advocating For Smaller-Scale Farmers Instead

In recent weeks, many farmers, including smaller-scale farmers, have reported that climate funding has been paused following a presidential executive order. Essential initiatives like on-farm solar, which can help smaller farms be more sustainable and offset electricity costs, are up in the air.

Unlike large agribusinesses that can absorb financial setbacks, these farmers operate on much thinner margins, making the sudden funding halt a potential death knell for pro-climate initiatives. Struggling smaller-scale and local farmers would be left holding the bag for the major financial burdens of previously subsidized climate programs they cannot afford on their own.

The new administration has expressed interest in addressing the lack of healthfulness in the food system via its push to “Make America Healthy Again.” One good way to start would be to ensure that promised payments get to smaller-scale farmers. Why? To support ways of raising animals for food far better for our public health than factory farming’s outsized contributions to pollution, the antibiotic resistance crisis, and pandemic risk.

Conclusion

Climate interventions that entrench and expand industrial animal agriculture won’t cut it. Instead of facilitating well over a billion dollars into factory farm interests, we should:

• Invest in plant-based food systems that reduce reliance on industrial animal farming.
• Push for legislation like the Farm System Reform Act to phase out massive, confined factory farming and support independent farmers transitioning to sustainable practices.

FFG is not the climate solution it claims to be. Perhaps there’s a world where certain iterations of biogas could be a meaningful part of a serious climate strategy—it’s not inconceivable. Our concern is not with the notion of using waste for heat and electricity but with how we see it manifesting: massive subsidies for large-scale agricultural polluters, little oversight, factory farm expansion, and industrial profiteering.

By propping up factory farming, the government is perpetuating a system that threatens public health, rural communities, animal welfare, and the very climate it purports to protect. It’s time to redirect these subsidies toward a more humane and sustainable food system.

For more details, see our recent reports and the Vox article:

Gaslit by Biogas: Big Ag’s Reverse Robin Hood Effect

Biogas’ Plot: Fueling Factory Farms in the Midwest

Big Oil and Big Ag are teaming up to turn cow poop into energy — and profits. The math doesn’t add up