Farmers have raised concerns about the impact re-wetting bogs may have on nearby land.
€2.2 million is going towards improving the management of on-farm drained peat soils in the midlands.
The funding, allocated by the Department of Agriculture, will be split between two projects.
Wetlands Surveys Ireland will look at developing a proposed farm programme, whereby farmers receive results-based payments based on the quality of their ecological habitats.
While Green Restoration Ireland will engage with farmers who want to transition their land use from current conventional practices to economically viable carbon farming methods.
The Irish Farmers' Association has recently expressed concern about the impact of re-wetting bogs on nearby farmland.
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